Note 7 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note

7.

Goodwill and Intangible Assets

	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived assets (in thousands)
Goodwill	$	8,205	$	-	$	8,205	$	8,205	$	-	$	8,205
Tradenames		1,147		-		1,147		1,147		-		1,147
	$	9,352	$	-	$	9,352	$	9,352	$	-	$	9,352
Finite-lived assets (in thousands)
Customer relationships	$	6,895	$	1,395	$	5,500	$	6,895	$	410	$	6,485
Non-compete agreement		627		296		331		627		87		540
	$	7,522	$	1,691	$	5,831	$	7,522	$	497	$	7,025

	Years Ended December 31,
	2018		2017
Goodwill activity (in thousands):
Beginning balance	$	8,205	$	-
Goodwill recorded in connection with the HCS Acquisition		-		12,705
Impairment charge		-		(4,500	)
Ending balance	$	8,205	$	8,205

As part of the goodwill impairment analysis completed annually on

April

30th

of each year, Management concluded

no

impairment was necessary for

2018

as a result of this review.  In addition, Management has determined

no

impairment of indefinite and definite lived intangible assets existed as of

December 31, 2018.

During the

fourth

quarter of

2017,

HCS was notified that a customer was significantly reducing the level of staff outsourced to HCS. The last pay period in

2017

was the final service period for these employees. This customer represented more than

20%

of the Company's service fee income during

2017.

Accordingly, management completed a goodwill impairment assessment as of

December 31, 2017,

determined that the carrying value of the HCS goodwill exceeded the fair value by

$4.5

million and recorded a goodwill impairment charge for the year ended

December 31, 2017.

Management assessed the other indefinite and definite lived intangible assets and determined

no

impairment existed as of

December 31, 2017.

Amortization expense (in thousands)
2018	$	1,194
Estimated future amortization expense (in thousands)
2019	$	1,194
2020		1,107
2021		985
2022		985
Thereafter		1,560
Total estimated amortization expense	$	5,831