Mesa Laboratories Inc. filed SEC Form 8-K: Material Impairments, Financial Statements and Exhibits

false 0000724004 0000724004 2024-04-01 2024-04-01

 

 

Washington, D.C. 20549   

 

 

 

 

 

Date of Report (Date of earliest event reported): April 1, 2024

 

MESA LABORATORIES, INC.
(Exact name of registrant as specified in its charter)

 

 

 

 

Registrant’s telephone number, including area code: 303-987-8000

 

Not Applicable
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

Securities registered under Section 12(b) of the Act:

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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.  ☐

 

 

 

 

On April 1, 2024, Mesa Laboratories, Inc. (“Mesa”, the “Company”, “we”, “us” or “our”) concluded that a material charge for non-cash impairment losses related to goodwill and intangible assets is required for the year ended March 31, 2024. As a result, we are disclosing the following information relating to the preliminary unaudited estimate of impairment losses resulting from our annual impairment testing.

 

We expect to record non-cash impairment losses related to our Clinical Genomics and Biopharmaceutical Development divisions of approximately $271 million during the fourth quarter of our fiscal year 2024. The conclusion was made in connection with Mesa’s impairment testing of goodwill and other intangible assets conducted in the fourth quarter in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 360, “Property, Plant and Equipment” and Topic 350, “Intangibles-Goodwill and Other” and in connection with the preparation of the financial statements to be included in Mesa’s annual report on Form 10-K for the fiscal year ended March 31, 2024.

 

These non-cash accounting charges are not expected to impact our cash flows from current or future operations.

 

We currently expect that our unaudited results for the fourth quarter of 2024 will include non-cash impairment losses of approximately $123 million related to goodwill, of which approximately $98 million relates to the Clinical Genomics division and approximately $25 million relates to the Biopharmaceutical Development division. In addition, we expect to record non-cash impairment losses to other intangible assets of approximately $148 million, of which $114 million relates to our Clinical Genomics division and $34 million relates to our Biopharmaceutical Development division. Identified impairment losses will be recorded in operating expenses in our Consolidated Statement of Operations. 

 

The non-cash impairment of goodwill and other intangible assets for the Clinical Genomics division was substantially driven by:

 

 

The non-cash impairment of goodwill and other intangible assets for the Biopharmaceutical Development division was substantially driven by:

 

 

These amounts reflect our best estimate of impairment losses at this time; however, we continue to evaluate the amount of the impairment losses and are executing and testing certain processes required by our internal controls associated with the impairment assessments. Until we file our Form 10-K, we can make no assurances these estimates will not change. 

 

This filing contains a number of forward-looking statements. Words such as “continue,” “estimate,” “expect,” “forecast,” “plan,” “will,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our beliefs and expectations relating to non-cash impairment losses and future related events. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control. Important factors that may affect our business and operations or that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, changes in current expectations of future growth rates and margins, changes in management’s expectations or plans (including those as a result of our new operating plan), acquisitions and foreign currency translation adjustments, various market factors and the possibility that the ongoing reviews and testing of the our internal controls may result in impairments, asset valuations or other amounts that differ from our current estimates. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this filing, except as required by applicable law or regulation.

 

 

Exhibit No.          Description

 

104                       Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.