Due to the sustained decrease in Enviva Inc. stock price since November 9, 2023, the Company performed an interim goodwill impairment test, which indicated that the carrying value of its sole reporting unit was above its fair value. Consistent with the Company?s historical approach for impairment tests, the Company estimated the fair value of its sole reporting unit using the market approach using its market capitalization of its common stock and an estimated control premium. Based on this approach, on December 4, 2023, management presented to the Company?s Board of Directors its determination that the carrying value of the Company?s sole reporting unit exceeded its fair value and the Board of Directors concluded that a material charge for impairment to goodwill will be required for the fourth quarter of 2023.

As a result, the Company expects to record a material non-cash pretax impairment charge related to goodwill of $103.9 million in the fourth quarter of 2023.