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

☐ 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.

Table of Contents

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

Table of Contents

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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

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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		947		(947)		-		10.0 years
	$	82,103	$	(40,637)	$	41,466		12.9 years

Amortization expense for continuing operations for the three months ended March 31, 2024 and 2023, was $2,449 and $2,768, respectively. Future amortization expense for other intangible assets as of March 31, 2024 is as follows:


Years Ending December 31,	Amortization Expense
2024 (excluding the three months ended March 31, 2024)	$	7,156
2025		8,038
2026		6,276
2027		4,568
2028		3,360
2029		2,522
Thereafter		5,606
	$	37,526

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CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED