Alpine 4 Holdings Inc (ALPP)

[BuckeyeStocks]

A lot of mention of the non-cash impairment charges in the Kent Wilson & Chris Meinerz talking points:
Kent Wilson, Alpine 4 CEO, had this to say: “Our 2023 Q3 performance reflects both challenges and our steadfast commitment to innovation and quality. Despite a 7% decrease in revenue in the third quarter of 2023, our 2023 year-to-date revenues remained consistent, demonstrating resilience. Our focus on R&D in 2023, with significant investments of $3.1 million, continues to drive product development and quality improvements. While we faced non-cash impairment charges of $33 million in 2023, our gross margin held steady at 21%. Further, as we proceed with our divestment plan for non-performing subsidiaries, we expect our margins to increase in Q3 and Q4 2024. Finally, the filing of this quarterly report is the first step toward getting the Company back on track and current, and we expect subsequent filings to follow relatively quickly.”

Chris Meinerz, CFO of Alpine 4, had this to say, "During the third quarter of 2023, the Company considered the sustained decrease in the Company’s publicly quoted share price and market capitalization; adverse impacts from macroeconomic conditions such as inflationary pressures and capital markets accessibility, the war in Ukraine and the war in the Middle East; and unfavorable short-term changes in the investment and operating plans of our primary customers; and as a result of these events concluded that a triggering event occurred which required the Company to perform an interim quantitative impairment test as of September 30, 2023. This assessment involved comparing the estimated fair value of each of its reporting units to the reporting unit’s carrying value, inclusive of the goodwill balance allocated to the reporting unit. Based upon the results of the impairment test, the Company concluded that the carrying value of certain reporting units exceeded their estimated fair value, resulting in a goodwill and long-lived intangible assets impairment charge. This impairment charge will not impact the Company’s cash flow.”