Company: BWMN
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023232
Chunk: 87

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 promissory note bears a simple interest rate fixed at 6.50%, and is payable in equal quarterly payments of principal and interest beginning July 2024 and ending July 2027. The merger agreement contains a contingent consideration feature which affords the sellers the opportunity to earn additional consideration in the form of the Company's common stock, depending on the average trading price of the Company's common stock for the 90 trading days post-acquisition. For tax purposes, the Surdex transaction is considered a tax-free merger, in which the assets have been recorded at their respective carrying values. As a result, there is no corresponding tax goodwill, and therefore no tax goodwill to be amortized or otherwise deductible.The following summarizes the calculations of the fair values of Surdex assets acquired and liabilities assumed as of the acquisition date (in thousands):(in thousands)SurdexAssets:Accounts receivable, net$4,052 Contract assets3,210 Prepaid and other current assets1,956 Property and equipment, net15,085 Operating lease, right-of-use assets1,030 Goodwill17,685 Other intangible assets12,810 Total assets acquired:$55,828 Liabilities:Accounts payable and accrued liabilities, current portion$3,937 Contract liabilities685 Other non-current obligations10,689 Operating lease obligation, less current portion1,030 Deferred tax liability7,067 Total liabilities assumed:$23,408 Net assets acquired:$32,420 Cash flow reconciling items:Issuance of common stock as partial consideration$(16,536)Cash paid for acquisitions, net of cash acquired$15,884 The amounts in the tables above represent the final purchase allocation for the Surdex acquisition. The purchase price allocation has been completed and the amounts identified above are deemed final.The condensed consolidated financial statements of the Company include the results of operations since the date Surdex was acquired. The following table presents the results of operations of Surdex since the date of acquisition for the three months ended March 31, 2025 (in thousands):

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For the Three Months EndedMarch 31, 2025Gross Contract Revenue1$6,013 Pre-tax Net Income2$308 1 Gross contract revenue includes adjustments as required by ASC 606, Revenue from Contracts with Customers based on opening balance sheet provided by the acquired companies. There is no assurance these adjustments will be consistent in future periods. Opening balance sheet balances are subject to adjustment prior to being finalized.2