10-Q 1 clar-20240331x10q.htm 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended: March 31, 2024

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                to               

Commission File Number: 001-34767

CLARUS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

    

58-1972600

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

2084 East 3900 South
Salt Lake City, Utah

    

84124

(Address of principal executive offices)

(Zip code)

(801) 278-5552

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol

    

Name of each exchange on which registered

Common Stock, par value $.0001 per share

CLAR

NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes   No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

Accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of April 25, 2024, there were 38,298,162 shares of common stock, par value $0.0001, outstanding.

INDEX

CLARUS CORPORATION

Page

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

3

Condensed Consolidated Balance Sheets – March 31, 2024 and December 31, 2023

3

Condensed Consolidated Statements of Comprehensive Income – Three months ended March 31, 2024 and 2023

4

Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2024 and 2023

5

Condensed Consolidated Statements of Stockholders’ Equity – Three months ended March 31, 2024 and 2023

6

Notes to Condensed Consolidated Financial Statements

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

38

Item 1A.

Risk Factors

39

Item 5.

Other information

39

Item 6.

Exhibits

40

Signature Page

41

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CLARUS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except per share amounts)

March 31, 2024

    

December 31, 2023

Assets

Current assets

Cash

$

47,484

$

11,324

Accounts receivable, less allowance for

credit losses of $1,394 and $1,412

51,954

53,971

Inventories

88,630

91,409

Prepaid and other current assets

7,966

4,865

Income tax receivable

930

892

Assets held for sale

-

137,284

Total current assets

196,964

299,745

Property and equipment, net

16,345

16,587

Other intangible assets, net

37,526

41,466

Indefinite-lived intangible assets

56,897

58,527

Goodwill

38,300

39,320

Deferred income taxes

16,280

22,869

Other long-term assets

14,664

16,824

Total assets

$

376,976

$

495,338

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

12,772

$

20,015

Accrued liabilities

22,441

24,580

Income tax payable

816

805

Current portion of long-term debt

44

119,790

Liabilities held for sale

-

5,744

Total current liabilities

36,073

170,934

Long-term debt, net

37

-

Deferred income taxes

17,324

18,124

Other long-term liabilities

13,167

14,160

Total liabilities

66,601

203,218

Stockholders’ Equity

Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued

-

-

Common stock, $0.0001 par value per share; 100,000 shares authorized; 42,878 and 42,761 issued and 38,236 and 38,149 outstanding, respectively

4

4

Additional paid in capital

692,381

691,198

Accumulated deficit

(329,811)

(350,739)

Treasury stock, at cost

(33,114)

(32,929)

Accumulated other comprehensive loss

(19,085)

(15,414)

Total stockholders’ equity

310,375

292,120

Total liabilities and stockholders’ equity

$

376,976

$

495,338

See accompanying notes to condensed consolidated financial statements.

3

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

March 31, 2024

March 31, 2023

Sales

Domestic sales

$

28,284

$

24,197

International sales

41,027

46,081

Total sales

69,311

70,278

Cost of goods sold

44,460

44,770

Gross profit

24,851

25,508

Operating expenses

Selling, general and administrative

28,215

29,354

Restructuring charges

370

-

Transaction costs

38

37

Contingent consideration benefit

-

(1,565)

Legal costs and regulatory matter expenses

3,002

128

Total operating expenses

31,625

27,954

Operating loss

(6,774)

(2,446)

Other (expense) income

Interest income, net

370

5

Other, net

(909)

76

Total other (expense) income, net

(539)

81

Loss before income tax

(7,313)

(2,365)

Income tax benefit

(851)

(334)

Loss from continuing operations

(6,462)

(2,031)

Discontinued operations, net of tax

28,346

3,629

Net income

21,884

1,598

Other comprehensive loss, net of tax:

Foreign currency translation adjustment

(4,035)

(1,021)

Unrealized gain (loss) on hedging activities

364

(79)

Other comprehensive loss

(3,671)

(1,100)

Comprehensive income

$

18,213

$

498

Loss from continuing operations per share:

Basic

$

(0.17)

$

(0.05)

Diluted

(0.17)

(0.05)

Net income per share:

Basic

$

0.57

$

0.04

Diluted

0.57

0.04

Weighted average shares outstanding:

Basic

38,208

37,137

Diluted

38,208

37,137

See accompanying notes to condensed consolidated financial statements.

4

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Three Months Ended

March 31, 2024

    

March 31, 2023

Cash Flows From Operating Activities:

Net income

$

21,884

$

1,598

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation of property and equipment

1,026

1,791

Amortization of other intangible assets

2,449

3,276

Gain on sale of business

(40,585)

-

Amortization of debt issuance costs

1,209

232

(Gain) loss on disposition of property and equipment

(35)

5

Noncash lease expense

751

690

Contingent consideration benefit

-

(1,565)

Stock-based compensation

1,183

1,334

Deferred income taxes

6,368

(105)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

3,761

(2,797)

Inventories

(2,024)

1,341

Prepaid and other assets

(1,694)

(153)

Accounts payable

(7,414)

90

Accrued liabilities

(3,245)

(2,612)

Income taxes

5

74

Net cash (used in) provided by operating activities

(16,361)

3,199

Cash Flows From Investing Activities:

Proceeds from the sale of business, net of cash

175,674

-

Proceeds from disposition of property and equipment

81

88

Purchase of intangible assets

(250)

-

Purchases of property and equipment

(1,897)

(1,471)

Net cash provided by (used in) investing activities

173,608

(1,383)

Cash Flows From Financing Activities:

Proceeds from revolving credit facilities

31,205

11,731

Repayments on revolving credit facilities

(41,580)

(12,153)

Repayments on term loans and other debt

(109,381)

(1,668)

Proceeds from issuance of other debt

49

-

Purchase of treasury stock

(185)

(118)

Cash dividends paid

(956)

(930)

Net cash used in financing activities

(120,848)

(3,138)

Effect of foreign exchange rates on cash

(239)

(429)

Change in cash

36,160

(1,751)

Cash, beginning of year

11,324

12,061

Cash, end of period

$

47,484

$

10,310

Supplemental Disclosure of Cash Flow Information:

Cash paid for income taxes

$

168

$

350

Cash paid for interest

$

1,943

$

2,586

Supplemental Disclosures of Non-Cash Investing and Financing Activities:

Property and equipment purchased with accounts payable

$

127

$

202

Lease liabilities arising from obtaining right-of-use assets

$

206

$

3,941

See accompanying notes to condensed consolidated financial statements.

5

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands, except per share amounts)

Accumulated

Additional

Other

Total

Common Stock

Paid-In

Accumulated

Treasury Stock

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Shares

    

Amount

    

Loss

    

Equity

Balance, December 31, 2022

41,637

$

4

$

679,339

$

(336,843)

(4,589)

$

(32,707)

$

(17,685)

$

292,108

Net income

-

-

-

1,598

-

-

-

1,598

Other comprehensive loss

-

-

-

-

-

-

(1,100)

(1,100)

Cash dividends ($0.025 per share)

-

-

-

(930)

-

-

-

(930)

Purchase of treasury stock

-

-

-

-

(12)

(118)

-

(118)

Stock-based compensation expense

-

-

1,334

-

-

-

-

1,334

Proceeds from exercise of options

154

-

-

-

-

-

-

-

Balance, March 31, 2023

41,791

$

4

$

680,673

$

(336,175)

(4,601)

$

(32,825)

$

(18,785)

$

292,892

Accumulated

Additional

Other

Total

Common Stock

Paid-In

Accumulated

Treasury Stock

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Shares

    

Amount

    

Loss

    

Equity

Balance, December 31, 2023

42,761

$

4

$

691,198

$

(350,739)

(4,612)

$

(32,929)

$

(15,414)

$

292,120

Net income

-

-

-

21,884

-

-

-

21,884

Other comprehensive loss

-

-

-

-

-

-

(3,671)

(3,671)

Cash dividends ($0.025 per share)

-

-

-

(956)

-

-

-

(956)

Purchase of treasury stock

-

-

-

-

(30)

(185)

-

(185)

Stock-based compensation expense

-

-

1,183

-

-

-

-

1,183

Proceeds from exercise of options

117

-

-

-

-

-

-

-

Balance, March 31, 2024

42,878

$

4

$

692,381

$

(329,811)

(4,642)

$

(33,114)

$

(19,085)

$

310,375

See accompanying notes to condensed consolidated financial statements.

6

Table of Contents

CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(in thousands, except per share amounts)

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements of Clarus Corporation and subsidiaries (which may be referred to as the “Company,” “Clarus,” “we,” “us” or “our”) as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), instructions to the Quarterly Report on Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments, except otherwise disclosed) necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included. The results for the three months ended March 31, 2024 are not necessarily indicative of the results to be obtained for the year ending December 31, 2024. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2024.

Nature of Business

Headquartered in Salt Lake City, Utah, we are a global leading designer, developer, manufacturer and distributor of best-in-class outdoor equipment and lifestyle products focused on the outdoor enthusiast markets. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, and TRED Outdoors® brand names through outdoor specialty and online retailers, our own websites, distributors and original equipment manufacturers.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The more significant estimates relate to the fair value of net assets acquired in business combinations, provision for excess or obsolete inventory, allowance for credit losses, and valuation of contingent consideration liabilities, deferred tax assets, long-lived assets, goodwill and indefinite-lived intangible assets, and other intangible assets. We base our estimates on historical experience, projected future cash flows, and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.

Reclassifications

Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. Specifically, legal costs associated with specific legal matters which were recorded in selling, general, and administrative expenses are now presented in legal costs and regulatory matter expenses in the consolidated statements of comprehensive income. See Note 16 for discussion regarding legal matters.

NOTE 2. ACQUISITIONS

TRED

On September 13, 2023, Clarus entered into a Share Purchase Agreement (the “TRED Purchase Agreement”) to acquire TRED Outdoors Pty Ltd. (“TRED”), which subsequently closed on October 9, 2023. All United States dollar amounts contained herein are based on the exchange rates in effect for Australian dollars ($AUD) and the market value of the Company’s common stock at the time of closing of the acquisition of TRED (the “TRED Acquisition”).

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CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

The Company acquired TRED for an aggregate purchase price of $AUD 10,741 (approximately $6,849), subject to a post-closing adjustment, comprised of $AUD 8,875 (approximately $5,659) cash, 179 shares of the Company’s common stock valued at $1,069, and additional consideration described below. The TRED Purchase Agreement provides for the payment of additional contingent consideration of up to $AUD 1,000 (approximately $638) in cash upon the satisfaction of certain net sales targets (the “TRED Contingent Consideration”). The Company estimated the initial fair value of the TRED Contingent Consideration to be $AUD 189 (approximately $121) and has recorded this liability within accrued liabilities. See Note 11 for discussion regarding the valuation of the TRED Contingent Consideration as of March 31, 2024. The acquisition was accounted for as a business combination.

The Company believes the acquisition of TRED will provide the Company with a greater combined global revenue base, increased gross margins, profitability and free cash flows, and access to increased liquidity to further acquire and grow businesses.

The following table is a reconciliation to the fair value of the purchase consideration and how the purchase consideration is allocated to assets acquired and liabilities assumed which have been estimated at their fair values. The fair value estimates for the purchase price allocation for TRED are based on the Company’s best estimates and assumptions as of the reporting date and are considered preliminary.  The fair value measurements of identifiable assets and liabilities, and the resulting goodwill related to the TRED Acquisition are subject to change and the final purchase price allocations could be different from the amounts presented below. We expect to finalize the valuations as soon as practicable, but not later than one year from the date of the acquisition. The excess of purchase consideration over the assets acquired and liabilities assumed is recorded as goodwill. Goodwill for TRED is included in the Adventure segment. The goodwill consists largely of the growth and profitability expected from the acquisition.

8

Table of Contents

CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

TRED

October 9, 2023

Number of Shares

Estimated Fair Value

Cash paid

-

$

5,659

Issuance of shares of Clarus Corporation

179

1,069

Contingent consideration

-

121

Total purchase consideration

179

$

6,849

Assets acquired and liabilities assumed

Assets

Cash

$

11

Accounts receivable

1,000

Inventories

1,006

Prepaid and other current assets

11

Property and equipment

195

Other intangible assets

3,305

Goodwill

2,832

Total assets

8,360

Liabilities

Accounts payable and accrued liabilities

638

Deferred income taxes

873

Total liabilities

1,511

Net Book Value Acquired

$

6,849

The estimated fair value of inventory was recorded at expected sales price less cost to sell plus a reasonable profit margin for selling efforts.

9

Table of Contents

CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

In connection with the acquisitions, the Company acquired exclusive rights to TRED’s trademarks, customer relationships, product technologies, and tradenames. The amounts assigned to each class of intangible asset, other than goodwill acquired, and the related average useful lives are as follows:

TRED

Average

Gross

Useful Life

Intangibles subject to amortization

Customer relationships

$

1,249

8.0 years

Product technologies

394

6.0 years

Tradenames

1,662

12.0 years

Intangibles not subject to amortization

Trademarks

-

N/A

$

3,305

9.8 years

The full amount of goodwill of $2,832 at TRED is expected to be non-deductible for tax purposes. No pre-existing relationships existed between the Company and TRED or its sellers prior to the acquisition. TRED revenue and operating income are included in the Adventure segment. Total revenue and net income of TRED from the date of acquisition to December 31, 2023 were not material to the Company’s condensed consolidated financial statements.

NOTE 3. DISCONTINUED OPERATIONS

On February 29, 2024, the Company and Everest/Sapphire Acquisition, LLC, its wholly-owned subsidiary, completed the sale to Bullseye Acquisitions, LLC, an affiliate of JDH Capital Company, of all of the equity associated with the Company’s Precision Sport segment, which is comprised of the Company’s subsidiaries Sierra and Barnes Bullets – Mona, LLC (“Barnes”), pursuant to a Purchase and Sale Agreement dated as of December 29, 2023, by and among, Bullseye Acquisitions, LLC, Everest/Sapphire Acquisition, LLC and the Company (the “Precision Sport Purchase Agreement”). The Precision Sport segment is engaged in the business of designing, developing, manufacturing, and marketing bullets and ammunition to the military, law enforcement, and commercial/consumer markets. Under the terms of the Precision Sport Purchase Agreement, the Buyer agreed to pay $175,000 in cash, which is subject to a customary working capital adjustment. The Company received $175,674 in cash under the terms of the Precision Sport Purchase Agreement, which included a preliminary working capital adjustment. As of March 31, 2024, the working capital adjustment had not been finalized. The Company recognized a pre-tax gain on such sale of $40,585. The activities of the Precision Sport segment have been segregated and reported as discontinued operations for all periods presented.

10

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CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

The carrying amounts of the assets and liabilities of the Precision Sport segment were classified as held for sale in our consolidated balance sheets as of December 31, 2023. The asset and liability balances as of December 31, 2023 were classified as current as we anticipated the sale of these assets and liabilities within a one year period.  The carrying amounts were as follows:

December 31, 2023

Accounts receivable, net

$

9,914

Inventories

44,208

Prepaid and other current assets

2,931

Total current assets held for sale

57,053

Property and equipment, net

24,075

Other intangible assets, net

4,926

Indefinite-lived intangible assets

24,500

Goodwill

26,715

Other long-term assets

15

Total assets held for sale

$

137,284

Accounts payable

$

2,441

Accrued liabilities

3,303

Total current liabilities held for sale

5,744

Total liabilities held for sale

$

5,744

Summarized results of discontinued operations for the Precision Sport segment are as follows:

Three Months Ended

March 31, 2024

March 31, 2023

Sales

$

10,585

$

27,106

Cost of goods sold

(6,543)

(16,593)

Selling, general and administrative

(2,062)

(3,337)

Restructuring charges

(3)

-

Transaction costs

(3,440)

(37)

Interest expense, net

(2,455)

(2,751)

Other, net

(38)

9

(Loss) income from operations of discontinued operations

(3,956)

4,397

Gain on sale of discontinued operations

40,585

-

Income from discontinued operations before taxes

36,629

4,397

Income tax expense

8,283

768

Income from discontinued operations, net of tax

$

28,346

$

3,629

In connection with the sale of the Precision Sport segment, all interest expense related to outstanding debt that was required to be repaid with the proceeds received from the sale pursuant to the terms of the Company’s credit facility is allocated to

11

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CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

discontinued operations in our condensed consolidated financial statements for the three months ended March 31, 2024 and 2023.

Summarized cash flow information for the Precision Sport segment discontinued operations are as follows:

Three Months Ended

March 31, 2024

March 31, 2023

Depreciation of property and equipment

-

852

Amortization of intangible assets

-

508

Stock-based compensation

5

48

Purchase of property and equipment

886

739

NOTE 4. INVENTORIES

Inventories, as of March 31, 2024 and December 31, 2023, were as follows:

March 31, 2024

    

December 31, 2023

Finished goods

$

76,286

$

78,887

Work-in-process

479

295

Raw materials and supplies

11,865

12,227

$

88,630

$

91,409

NOTE 5. PROPERTY AND EQUIPMENT

Property and equipment, net, as of March 31, 2024 and December 31, 2023, were as follows:

March 31, 2024

    

December 31, 2023

Land

$

2,850

$

2,850

Building and improvements

6,478

6,476

Furniture and fixtures

6,176

6,195

Computer hardware and software

8,070

8,092

Machinery and equipment

18,157

18,119

Construction in progress

1,779

1,224

43,510

42,956

Less accumulated depreciation

(27,165)

(26,369)

$

16,345

$

16,587

Depreciation expense for continuing operations for the three months ended March 31, 2024 and 2023 was $1,026 and $939, respectively.

12

Table of Contents

CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

NOTE 6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table summarizes the balances in goodwill by segment:

Outdoor

    

Adventure

    

Total

Goodwill

$

29,507

$

91,375

$

120,882

Accumulated goodwill impairments

(29,507)

(52,071)

(81,578)

Balance at December 31, 2023

-

39,320

39,320

Impact of foreign currency exchange rates

-

(1,020)

(1,020)

Balance at March 31, 2024

$

-

$

38,300

$

38,300

Indefinite-Lived Intangible Assets

The following table summarizes the changes in indefinite-lived intangible assets:

Balance at December 31, 2023

$

58,527

Impact of foreign currency exchange rates

(1,630)

Balance at March 31, 2024

$

56,897

Trademarks classified as indefinite-lived intangible assets by brand as of March 31, 2024 and December 31, 2023, were as follows:

March 31, 2024

    

December 31, 2023

Black Diamond

$

19,600

$

19,600

PIEPS

3,012

3,080

Rhino-Rack

24,644

25,767

MAXTRAX

9,641

10,080

$

56,897

$

58,527

Other Intangible Assets, net

The following table summarizes the changes in gross other intangible assets:

Gross balance at December 31, 2023

$

82,103

Disposal

(163)

Impact of foreign currency exchange rates

(2,620)

Gross balance at March 31, 2024

$

79,320

13

Table of Contents

CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

(in thousands, except per share amounts)

Other intangible assets, net of amortization as of March 31, 2024 and December 31, 2023, were as follows:

March 31, 2024

Gross

    

Accumulated Amortization

    

Net

    

Weighted Average Useful Life

Intangibles subject to amortization

Customer relationships

$

59,383

$

(31,475)

$

27,908

13.8 years

Product technologies

17,292

(9,305)

7,987

10.0 years

Tradenames

1,698

(67)

1,631

12.0 years

Core technologies

947

(947)

-

10.0 years

$

79,320

$

(41,794)

$

37,526

12.9 years

December 31, 2023

Gross

    

Accumulated Amortization

    

Net

    

Weighted Average Useful Life

Customer relationships

$

61,215

$

(30,478)

$

30,737

13.8 years

Product technologies

18,003

(9,014)

8,989

10.0 years

Tradenames

1,938

(198)

1,740

11.4 years

Core technologies