NEXTECH SOLUTIONS, INC.
ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2024
TABLE OF CONTENTS

LETTER TO SHAREHOLDERS
MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FORWARD-LOOKING STATEMENTS


LETTER TO SHAREHOLDERS
Dear Valued Shareholders,
Fiscal year 2024 represented a pivotal period for NexTech Solutions as we navigated complex macroeconomic headwinds while continuing to execute our long-term strategic vision. Despite persistent inflationary pressures and supply chain disruptions in H1 2024, we successfully achieved a 12.3% year-over-year revenue growth, surpassing our guidance range of 8-10% projected at the beginning of the fiscal year.
Our SaaS division delivered exceptional performance with 29.7% growth in ARR, while maintaining a best-in-class net dollar retention rate of 118%. The strategic acquisition of CloudSecure in Q2 2024 has significantly enhanced our cybersecurity offerings, contributing $28.4M in revenue since acquisition. Our hardware segment faced continued challenges with a modest 3.2% revenue increase, though our transition toward higher-margin enterprise solutions has begun yielding positive results as evidenced by the 140bps improvement in gross margin.
The Board of Directors has approved a quarterly dividend of $0.28 per share, representing a 12% increase from the previous quarter. Additionally, we have authorized a new share repurchase program of up to $500 million to be executed over the next 24 months, underscoring our confidence in NexTech's future prospects and our commitment to delivering shareholder value.
As we look ahead to FY2025, we remain cautiously optimistic as we anticipate stabilization in the broader economic landscape. Our robust product pipeline, including the upcoming release of NexTech AI Suite 3.0 in Q2 2025, positions us favorably to capitalize on emerging opportunities in the enterprise AI market. We are reaffirming our long-term target of reaching $5 billion in annual revenue by FY2027, representing a 21% CAGR from our current baseline.
On behalf of the entire NexTech team, I want to express my sincere gratitude for your continued support and confidence in our mission to transform businesses through innovative technology solutions.
Sincerely,

Alexandra Chen

President and Chief Executive Officer

NexTech Solutions, Inc.

MANAGEMENT DISCUSSION AND ANALYSIS
Executive Summary
NexTech Solutions, Inc. ("NexTech," the "Company," "we," "us," or "our") is a leading provider of enterprise software, cloud services, and integrated hardware solutions. This Management Discussion and Analysis (MD&A) presents our financial condition and results of operations for the fiscal year ended December 31, 2024, as compared to the fiscal year ended December 31, 2023.
FY2024 was characterized by strategic expansion of our product portfolio through organic development and targeted acquisitions, notably the $420 million acquisition of CloudSecure, Inc. in April 2024. Despite macroeconomic uncertainties, we achieved consolidated revenue of $2.84 billion, representing a 12.3% increase from $2.53 billion in FY2023. Non-GAAP operating income reached $723 million, or 25.4% of total revenue, compared to $628 million, or 24.8% of total revenue in FY2023.
Our strategic focus remains on accelerating the transition toward a subscription-based business model, expanding our enterprise solutions segment, and leveraging AI technologies across our product suite to enhance customer value proposition. These initiatives have yielded tangible results, with subscription-based revenue now accounting for 68% of total revenue, up from 61% in FY2023.
Industry Trends and Business Environment
The enterprise software and technology sector continued to evolve rapidly in 2024, driven by:

Accelerated digital transformation initiatives across industries
Growing emphasis on cybersecurity and data privacy
Increased adoption of AI and machine learning technologies

These trends present significant growth opportunities for NexTech, particularly in the areas of:


Enterprise AI Integration: Businesses increasingly seek AI-powered solutions to enhance operational efficiency and decision-making processes. Our NexTech AI Suite continues to gain traction, with customer adoption increasing 78% year-over-year.


Cybersecurity Solutions: Amid escalating cyber threats and regulatory requirements, demand for robust cybersecurity solutions remains strong. The acquisition of CloudSecure has substantially enhanced our capabilities in this high-growth segment.


Cloud Migration: Organizations continue to prioritize cloud migration to improve scalability and reduce infrastructure costs. Our Cloud Services division experienced 24.6% growth in FY2024, outpacing the overall market growth of approximately 18%.


Supply Chain Resilience: Following persistent disruptions in recent years, enterprises are investing in technologies to enhance supply chain visibility and resilience. Our SupplyIQ platform has experienced accelerated adoption, with new customer acquisitions increasing by 42% year-over-year.


Results of Operations
Revenue
Total revenue for FY2024 was $2.84 billion, representing a 12.3% increase from $2.53 billion in FY2023. The following table presents our revenue by segment:



Segment
FY2024 Revenue (in millions)
FY2023 Revenue (in millions)
YoY Growth




Software & Services
$1,930
$1,648
17.1%


Hardware Solutions
$910
$882
3.2%


Total
$2,840
$2,530
12.3%



Our Software & Services segment, which includes our SaaS offerings, cloud services, cybersecurity solutions, and professional services, generated $1.93 billion in revenue, representing a 17.1% increase from FY2023. This growth was primarily driven by:

A 29.7% increase in Annual Recurring Revenue (ARR) from our SaaS offerings
$28.4 million in revenue contribution from the CloudSecure acquisition
24.6% growth in our Cloud Services division
Expansion of our professional services practice, which grew 12.3% year-over-year

Our Hardware Solutions segment, which includes enterprise servers, networking equipment, and integrated systems, generated $910 million in revenue, representing a modest 3.2% increase from FY2023. While this segment faced headwinds from supply chain constraints and component shortages, particularly in H1 2024, our strategic pivot toward higher-margin enterprise solutions has begun yielding positive results.
Geographic Revenue Distribution



Region
FY2024 Revenue (in millions)
FY2023 Revenue (in millions)
YoY Growth




North America
$1,647
$1,493
10.3%


Europe, Middle East, and Africa
$738
$670
10.1%


Asia-Pacific
$339
$279
21.5%


Latin America
$116
$88
31.8%


Total
$2,840
$2,530
12.3%



Our Asia-Pacific and Latin America regions demonstrated particularly strong performance, growing 21.5% and 31.8% respectively, reflecting our successful execution of market expansion initiatives in these high-growth regions.
Operating Expenses
Total operating expenses for FY2024 were $1.52 billion, or 53.5% of total revenue, compared to $1.36 billion, or 53.8% of total revenue in FY2023. The following table presents our operating expenses by category:



Category
FY2024 (in millions)
% of Revenue
FY2023 (in millions)
% of Revenue




Cost of Revenue
$892
31.4%
$809
32.0%


Research and Development
$326
11.5%
$278
11.0%


Sales and Marketing
$587
20.7%
$531
21.0%


General and Administrative
$215
7.6%
$196
7.7%


Total
$2,020
71.1%
$1,814
71.7%



Despite inflationary pressures on labor costs and expenses associated with the CloudSecure acquisition, we effectively managed our operating expenses, reducing them as a percentage of revenue by 60 basis points compared to FY2023. This improvement reflects our ongoing commitment to operational efficiency and disciplined expense management.
Research and Development expenses increased to $326 million, or 11.5% of total revenue, compared to $278 million, or 11.0% of total revenue in FY2023. This increase reflects our strategic investments in AI technologies, cybersecurity capabilities, and next-generation cloud infrastructure.
Operating Income and Margin
GAAP operating income for FY2024 was $623 million, or 21.9% of total revenue, compared to $542 million, or 21.4% of total revenue in FY2023. Non-GAAP operating income, which excludes stock-based compensation expenses, amortization of acquired intangible assets, and acquisition-related expenses, was $723 million, or 25.4% of total revenue, compared to $628 million, or 24.8% of total revenue in FY2023.
The following table reconciles our GAAP to Non-GAAP operating income:



Item
FY2024 (in millions)
FY2023 (in millions)




GAAP Operating Income
$623
$542


Stock-based Compensation
$58
$49


Amortization of Acquired Intangible Assets
$27
$21


Acquisition-related Expenses
$15
$16


Non-GAAP Operating Income
$723
$628



The 60 basis point improvement in our Non-GAAP operating margin reflects our successful execution of margin enhancement initiatives, particularly the shift toward higher-margin subscription-based offerings and the realization of synergies from the CloudSecure acquisition.
Net Income and Earnings Per Share
GAAP net income for FY2024 was $486 million, or $4.82 per diluted share, compared to $418 million, or $4.15 per diluted share in FY2023. Non-GAAP net income, which excludes the items noted above as well as the tax effects of these adjustments, was $562 million, or $5.57 per diluted share, compared to $485 million, or $4.81 per diluted share in FY2023.
Business Segment Analysis
Software & Services Segment
Our Software & Services segment, which includes our SaaS offerings, cloud services, cybersecurity solutions, and professional services, generated $1.93 billion in revenue, representing a 17.1% increase from FY2023. Segment operating income was $598 million, or 31.0% of segment revenue, compared to $491 million, or 29.8% of segment revenue in FY2023.
Key metrics for our Software & Services segment include:

Annual Recurring Revenue (ARR): $1.72 billion, up 29.7% year-over-year
Net Dollar Retention Rate: 118%, compared to 116% in FY2023
Subscription Gross Margin: 78.4%, compared to 77.6% in FY2023
Average Contract Value: $287,000, up 14.8% year-over-year

The performance of our Software & Services segment was driven by strong customer adoption of our NexTech AI Suite, continued momentum in our Cloud Services division, and the successful integration of CloudSecure's cybersecurity offerings into our product portfolio.
Hardware Solutions Segment
Our Hardware Solutions segment, which includes enterprise servers, networking equipment, and integrated systems, generated $910 million in revenue, representing a 3.2% increase from FY2023. Segment operating income was $182 million, or 20.0% of segment revenue, compared to $165 million, or 18.7% of segment revenue in FY2023.
Key metrics for our Hardware Solutions segment include:

Gross Margin: 34.2%, compared to 32.8% in FY2023
Enterprise Solutions Revenue Mix: 68%, compared to 62% in FY2023
Average Deal Size: $428,000, up 7.0% year-over-year

While our Hardware Solutions segment faced headwinds from supply chain constraints and component shortages, particularly in H1 2024, our strategic pivot toward higher-margin enterprise solutions has begun yielding positive results, as evidenced by the 140 basis point improvement in gross margin.
Financial Condition, Liquidity, and Capital Resources
Balance Sheet
As of December 31, 2024, our cash, cash equivalents, and short-term investments totaled $1.68 billion, compared to $1.92 billion as of December 31, 2023. The decrease primarily reflects the $420 million acquisition of CloudSecure, partially offset by strong operating cash flow generation.
Total assets were $5.72 billion as of December 31, 2024, compared to $5.18 billion as of December 31, 2023. The increase primarily reflects the acquisition of CloudSecure and the capitalization of incremental operating lease right-of-use assets following the expansion of our R&D facilities in Austin, TX and Bangalore, India.
Total liabilities were $2.86 billion as of December 31, 2024, compared to $2.53 billion as of December 31, 2023. The increase primarily reflects the assumption of CloudSecure's liabilities and the issuance of $300 million in senior unsecured notes to partially fund the acquisition.
Shareholders' equity was $2.86 billion as of December 31, 2024, compared to $2.65 billion as of December 31, 2023, reflecting our strong net income generation, partially offset by share repurchases and dividend payments.
Cash Flow
Operating cash flow for FY2024 was $742 million, compared to $685 million in FY2023, representing an 8.3% increase. This improvement reflects our strong operating performance and effective working capital management.
Free cash flow, defined as operating cash flow less capital expenditures, was $638 million for FY2024, compared to $576 million in FY2023, representing a 10.8% increase. Capital expenditures for FY2024 were $104 million, or 3.7% of total revenue, compared to $109 million, or 4.3% of total revenue in FY2023.
Capital Allocation
We remain committed to a balanced capital allocation strategy that prioritizes:

Organic Growth Investments: We continue to invest in R&D to drive innovation and maintain our technological leadership.
Strategic Acquisitions: We seek opportunities to expand our product portfolio and addressable market through targeted acquisitions.
Shareholder Returns: We are committed to returning capital to shareholders through dividends and share repurchases.

During FY2024, we returned $398 million to shareholders, including $112 million in dividends and $286 million in share repurchases. The Board of Directors has approved a 12% increase in our quarterly dividend to $0.28 per share and authorized a new share repurchase program of up to $500 million to be executed over the next 24 months.
Risk Factors
While we remain optimistic about our long-term prospects, our business is subject to various risks and uncertainties, including:

Macroeconomic Conditions: Persistent inflation, restrictive monetary policy, or economic slowdown could adversely impact enterprise technology spending.
Competitive Pressures: The enterprise software and technology markets remain highly competitive, with rapid innovation and evolving customer preferences.
Cybersecurity Threats: As a provider of technology solutions and custodian of sensitive customer data, we face an evolving landscape of cybersecurity threats.
Supply Chain Disruptions: While improving, global supply chains remain susceptible to disruptions that could impact our hardware business.
Regulatory Environment: Evolving data privacy regulations, antitrust scrutiny, and international trade policies could impact our operations and growth strategies.

We have implemented comprehensive risk management frameworks and continue to invest in enhancing our operational resilience to mitigate these risks.
Outlook and Forward-Looking Statements
Looking ahead to FY2025, we are providing the following guidance:

Revenue: $3.15 billion to $3.25 billion, representing 10.9% to 14.4% growth
Non-GAAP Operating Margin: 25.5% to 26.0%
Non-GAAP Earnings Per Share: $6.10 to $6.30
Free Cash Flow: $680 million to $720 million

This guidance reflects our confidence in the continued execution of our strategic initiatives, including the expansion of our AI capabilities, acceleration of our subscription transition, and realization of synergies from the CloudSecure acquisition.
Our long-term financial targets remain unchanged:

Revenue CAGR: 12% to 15% through FY2027
Non-GAAP Operating Margin: 27% to 29% by FY2027
Free Cash Flow Conversion: 85% to 90% of Non-GAAP Net Income

These statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from our forecasts due to various factors, including those discussed in the Risk Factors section.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)



ASSETS
December 31, 2024
December 31, 2023




Current assets:




Cash and cash equivalents
$892,741
$1,237,629


Short-term investments
$783,526
$678,392


Accounts receivable, net
$589,327
$512,489


Inventories
$127,346
$138,621


Prepaid expenses and other current assets
$98,253
$82,417


Total current assets
$2,491,193
$2,649,548







Non-current assets:




Property and equipment, net
$312,874
$287,536


Operating lease right-of-use assets
$198,426
$167,329


Goodwill
$1,823,517
$1,453,821


Intangible assets, net
$742,935
$528,762


Deferred tax assets
$67,583
$54,268


Other non-current assets
$83,472
$38,736


Total non-current assets
$3,228,807
$2,530,452







TOTAL ASSETS
$5,720,000
$5,180,000






LIABILITIES AND SHAREHOLDERS' EQUITY
December 31, 2024
December 31, 2023




Current liabilities:




Accounts payable
$178,935
$164,872


Accrued expenses and other current liabilities
$342,617
$291,835


Deferred revenue, current
$647,283
$541,726


Operating lease liabilities, current
$42,178
$38,426


Total current liabilities
$1,211,013
$1,036,859







Non-current liabilities:




Long-term debt
$892,500
$592,500


Deferred revenue, non-current
$217,842
$193,517


Operating lease liabilities, non-current
$172,648
$149,687


Deferred tax liabilities
$186,934
$142,716


Other non-current liabilities
$179,063
$415,721


Total non-current liabilities
$1,648,987
$1,494,141







TOTAL LIABILITIES
$2,860,000
$2,531,000







Commitments and contingencies









Shareholders' equity:




Common stock, $0.001 par value
$103
$104


Additional paid-in capital
$1,178,897
$1,239,896


Retained earnings
$1,728,000
$1,442,000


Accumulated other comprehensive loss
$(47,000)
$(33,000)


Total shareholders' equity
$2,860,000
$2,649,000







TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$5,720,000
$5,180,000



CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)




Year Ended December 31, 2024
Year Ended December 31, 2023




Revenue:




Software & Services
$1,930,000
$1,648,000


Hardware Solutions
$910,000
$882,000


Total revenue
$2,840,000
$2,530,000







Cost of revenue:




Software & Services
$416,000
$368,000


Hardware Solutions
$476,000
$441,000


Total cost of revenue
$892,000
$809,000







Gross profit
$1,948,000
$1,721,000







Operating expenses:




Research and development
$326,000
$278,000


Sales and marketing
$587,000
$531,000


General and administrative
$215,000
$196,000


Amortization of acquired intangible assets
$27,000
$21,000


Acquisition-related expenses
$15,000
$16,000


Restructuring charges
$18,000
$22,000


Total operating expenses
$1,188,000
$1,064,000







Income from operations
$760,000
$657,000







Other income (expense):




Interest income
$48,000
$52,000


Interest expense
$(37,000)
$(28,000)


Other, net
$(10,000)
$(7,000)


Total other income, net
$1,000
$17,000







Income before income taxes
$761,000
$674,000


Provision for income taxes
$175,000
$156,000


Net income
$586,000
$518,000







Net income per share:




Basic
$5.65
$4.93


Diluted
$5.57
$4.87







Weighted-average shares used in computing net income per share:




Basic
103,732
105,126


Diluted
105,143
106,389



CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)




Year Ended December 31, 2024
Year Ended December 31, 2023




CASH FLOWS FROM OPERATING ACTIVITIES:




Net income
$586,000
$518,000


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization
$143,000
$127,000


Stock-based compensation
$58,000
$49,000


Deferred income taxes
$(8,000)
$(12,000)


Provision for doubtful accounts
$5,000
$4,000


Other non-cash items
$12,000
$9,000


Changes in operating assets and liabilities:




Accounts receivable
$(37,000)
$(48,000)


Inventories
$17,000
$(23,000)


Prepaid expenses and other assets
$(15,000)
$(7,000)


Accounts payable
$(5,000)
$12,000


Accrued expenses and other liabilities
$38,000
$27,000


Deferred revenue
$83,000
$69,000


Net cash provided by operating activities
$877,000
$725,000







CASH FLOWS FROM INVESTING ACTIVITIES:




Purchases of property and equipment
$(92,000)
$(87,000)


Capitalized software development costs
$(12,000)
$(22,000)


Purchases of short-term investments
$(583,000)
$(478,000)


Maturities and sales of short-term investments
$478,000
$412,000


Business combinations, net of cash acquired
$(420,000)
$(138,000)


Other investing activities
$(5,000)
$(3,000)


Net cash used in investing activities
$(634,000)
$(316,000)







CASH FLOWS FROM FINANCING ACTIVITIES:




Proceeds from issuance of long-term debt
$300,000
$-


Repayments of long-term debt
$(100,000)
$(75,000)


Payments of debt issuance costs
$(3,000)
$-


Repurchases of common stock
$(278,000)
$(192,000)


Dividends paid
$(112,000)
$(97,000)


Proceeds from issuance of common stock under employee stock plans
$48,000
$42,000


Taxes paid related to net share settlement of equity awards
$(39,000)
$(31,000)


Net cash used in financing activities
$(184,000)
$(353,000)







Effect of exchange rate changes on cash and cash equivalents
$(4,000)
$(2,000)


Net increase (decrease) in cash and cash equivalents
$55,000
$54,000







Cash and cash equivalents at beginning of period
$838,000
$784,000


Cash and cash equivalents at end of period
$893,000
$838,000







SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:




Cash paid for interest
$35,000
$27,000


Cash paid for income taxes, net of refunds
$183,000
$168,000







SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:




Accrued property and equipment purchases
$8,000
$6,000


Right-of-use assets obtained in exchange for operating lease liabilities
$42,000
$37,000




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Description of Business and Summary of Significant Accounting Policies
Organization and Nature of Operations
NexTech Solutions, Inc. ("NexTech," the "Company," "we," "us," or "our") is a leading provider of enterprise software, cloud services, and integrated hardware solutions. The Company was incorporated in Delaware in 2004 and is headquartered in San Francisco, California.
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements include the accounts of NexTech Solutions, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. 
Significant items subject to such estimates and assumptions include, but are not limited to:

Determination of the fair value of assets acquired and liabilities assumed in business combinations
Goodwill and intangible asset impairment assessment
Fair value of stock-based awards
Fair value of financial instruments
Realizability of deferred tax assets
Recognition and measurement of loss contingencies
Capitalization of software development costs

Actual results could differ materially from those estimates.
Cash, Cash Equivalents, and Investments
Cash and cash equivalents include cash on hand, demand deposits with banks, and highly liquid investments with original maturities of three months or less at the date of purchase. Short-term investments primarily consist of corporate debt securities, U.S. government agency securities, U.S. treasury securities, commercial paper, and certificates of deposit with original maturities greater than three months but less than one year at the date of purchase.
The Company classifies its investments as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. Available-for-sale investments are carried at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in shareholders' equity. Realized gains and losses are determined using the specific identification method and are included in "Other, net" in the consolidated statements of operations.
Fair Value Measurements
The Company categorizes assets and liabilities recorded at fair value on the consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows:

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.
Level 3 - Inputs are unobservable inputs based on the Company's assumptions.

Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance is based on management's assessment of the collectability of specific customer accounts and the aging of the accounts receivable. If circumstances change, such as higher than expected defaults or an unexpected material adverse change in a major customer's ability to meet its financial obligations, the Company's estimate of the recoverability of the amounts due could be reduced by a material amount.
Inventories
Inventories consist primarily of finished goods and component parts and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The Company regularly reviews inventory quantities on hand and records a provision for excess and obsolete inventories based primarily on its estimated forecast of product demand and production requirements.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets:

Computer equipment and software: 3 to 5 years
Furniture and fixtures: 5 to 7 years
Buildings: 30 years

Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset.
Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not amortized but is tested for impairment annually on October 1 or more frequently if events or changes in circumstances indicate that it might be impaired. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is not required. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the qualitative assessment option, the quantitative goodwill impairment test is performed.
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FORWARD-LOOKING STATEMENTS
This section would typically contain additional forward-looking statements and disclaimers beyond those mentioned earlier in the document.