Note 3 - Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

3. Supplemental Balance Sheet Information

	December 31,
Accounts receivable, net, consists of the following:	2023			2022
(in thousands)
Trade	$	51,567		$	53,658
Unbilled		6,537			10,436
Non-trade		3,133			1,274
Gross Accounts Receivable		61,237			65,368
Less allowance for credit losses		(1,461	)		(1,654	)
Accounts Receivable, net	$	59,776		$	63,714

	December 31,
Activity in allowance for credit losses	2023			2022
(in thousands)
Beginning balance in allowance for credit losses	$	1,654		$	564
Current provision for expected credit losses		261			1,269
Allowances associated with businesses sold		(281	)		-
Write-offs charged against the allowance		(126	)		(179	)
Recoveries of amounts previously written off		(47	)		-
Ending balance in allowance for credit losses	$	1,461		$	1,654

	December 31,
Property and equipment consist of the following:	2023			2022
(in thousands)
Equipment	$	5,062		$	5,109
Furniture and fixtures		2,330			2,319
Leasehold improvements		366			352
Capitalized software development costs		18,336			17,298
		26,094			25,078
Less accumulated depreciation and amortization		(23,223	)		(21,817	)
Property and equipment, net	$	2,871		$	3,261

Depreciation expense (including amortization of internal use software and intangible assets as described below) was $2.0 million and $2.0 million for the years ended  December 31, 2023 and 2022, respectively. The Company capitalized $1.0 million and $1.5 million of costs related to internal use software in the years ended December 31, 2023 and 2022, respectively. The Company recognized approximately $1.1 million and $1.2 million of amortization expense related to internal use software for the years ended December 31, 2023 and 2022, respectively.

	Americas			Asia-Pacific		EMEA		Total
Goodwill
(in thousands)
Balance at January 1, 2022
Aggregate goodwill acquired	$	3,728		$	-	$	438	$	4,166
Accumulated impairment losses	$	(2,458	)	$	-	$	-	$	(2,458	)
Balance at December 31, 2022	$	1,270		$	-	$	438	$	1,708
Change in goodwill due to impact of foreign currency	$	7		$	-			$	7
Sale of business		(333	)		–		–		(333	)
Balance at December 31, 2023	$	944		$	-	$	438	$	1,382

Goodwill is generally deductible for tax purposes, except for the portion related to purchase accounting step-up goodwill. For the years ended December 31, 2023 and 2022, impairment losses of goodwill were $0 million and $2.5 million, respectively.

Goodwill Impairment of Resource Plus of North Florida, Inc.

The Company acquired Resource Plus of North Florida, Inc. ("Resource Plus”) in 2018 as a joint venture partnership and owns 51% of the Resource Plus business. At the time of the acquisition, the Company recorded $2.0 million of goodwill.  Due to the loss of a significant customer, during the year ended December 31, 2022, Resource Plus did not meet original forecast and reduced forecasts. The Company tested recorded goodwill for impairment using a combination of discounted cash flow and guideline public company methodologies.

Key assumptions include management's estimates of forecasted revenue and forecasted cash flows. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires the Company to make assumptions and estimates regarding its future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax considerations, discount rates, growth rates, and other market factors. The Company’s expectations also include certain assumptions that could be negatively impacted if the Company is unable to meet its cost expectations in relation to inflation. If current expectations of future growth rates and margins are not met, if market factors outside of the Company’s control, such as discount rates, income tax rates, foreign currency exchange rates, inflation, or any other factors, change, or if management’s expectations or plans otherwise change, including updates to the Company’s long-term operating plans, then one or more of our reporting units might become impaired in the future.

The impairment test indicated the goodwill of Resource Plus was fully impaired and the Company recorded an impairment loss of $2.0 million during the year ended December 31, 2022.

Goodwill Impairment ofSPAR TODOPROMO, SAPI, de CV

The Company acquired SPAR TODOPROMO, SAPI, de CV ("SPAR Mexico”) in 2011 as a joint venture partnership and currently owns 51% of the SPAR Mexico business. At time of acquisition, the Company recorded $0.5 million of goodwill. During year ended December 31, 2022, SPAR Mexico did not meet original forecasts due to labor law changes in Mexico. The Company tested recorded goodwill for impairment using a combination of discounted cash flow and guideline public company methodologies. The impairment test indicated that the goodwill of SPAR Mexico was fully impaired and the Company recorded an impairment loss of $0.5 million during the year ended December 31, 2022.

Intangible Assets

	December 31,
Intangible assets consist of the following:	2023			2022
(in thousands)
Customer contracts and lists	$	3,011		$	3,543
Trade names		900			900
Patents		870			870
Non-compete		-			520
		4,781			5,833
Less accumulated amortization		(3,601	)		(3,793	)
Intangible assets, net	$	1,180		$	2,040

The decline in gross intangible assets of $1.1 million is due to the sale of NMS and Australia.  Please see note 10. Related Party Transactions for more information.

The Company is amortizing its intangible assets over lives ranging from 5 to 25 years. Amortization expense for the years ended  December 31, 2023 and 2022 was approximately $0.4 and $0.4, respectively.

The annual amortization for each of the following years succeeding December 31, 2023 is summarized as follows (in thousands):

(in thousands)
Year	Amount
2024	$	172
2025		188
2026		188
2027		91
2028		36
Thereafter		504
Total	$	1,180

	December 31,
Accrued expenses and other current liabilities:	2023		2022
(in thousands)
Taxes payable	$	1,598	$	2,660
Accrued salaries and wages		9,206		9,327
Accrued accounting and legal expenses		1,018		2,186
Accrued third party labor		1,477		2,411
Other		1,975		3,677
Accrued expenses and other current liabilities	$	15,274	$	20,261