Smith Micro Software (SMSI) Conducting Goodwill Impairment Test

Smith Micro Software (NASDAQ: SMSI) has initiated and is currently conducting an interim goodwill impairment test as a result of a sustained decrease in its common stock share price and market capitalization that has occurred since February 23, 2024. As a result of such testing to date, the Company concluded on April 4, 2024 that the carrying value of the Company’s single reporting unit exceeded its fair value and that a material non-cash pretax impairment charge related to goodwill will be required under generally accepted accounting principles for the first quarter of 2024. The valuation work associated with the Company’s interim goodwill impairment testing is still being completed and reviewed, and as such the Company is unable to provide a good faith estimate at this time of the amount or a range of amounts of the impairment charge, other than to state that the impairment charge is expected to be material.
The Company will provide an update through an amendment to this 8-K or through the filing of the Form 10-Q once a determination of such an estimate or range of estimates has been made.
The impairment charge is a non-cash charge and the Company does not expect to be required to make any current or future cash expenditures as a result of this impairment. Additionally, the charge is not expected to have an impact on the Company’s compliance with any outstanding agreements.

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