Note 3 - Intangible Assets

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 3. Intangible Assets

	September 30, 2021 (unaudited)						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived assets (in thousands):
Tradenames	$	1,147	$	—	$	1,147	$	1,147	$	—	$	1,147
Total indefinite-lived assets	$	1,147	$	—	$	1,147	$	1,147	$	—	$	1,147
Finite-lived assets (in thousands):
Customer relationships		6,895		4,104		2,791		6,895		3,365		3,530
Non-compete agreement		627		627		—		627		627		—
Total finite-lived assets	$	7,522	$	4,731	$	2,791	$	7,522	$	3,992	$	3,530
Total indefinite-lived and finite-lived assets	$	8,669	$	4,731	$	3,938	$	8,669	$	3,992	$	4,677

Amortization expense (unaudited, in thousands)
Nine Months Ended September 30, 2021	$	739
Estimated future amortization expense (unaudited, in thousands)
2021	$	246
2022		985
2023		985
Thereafter		575
Total estimated amortization expense	$	2,791

As disclosed in Note 1, two CSB customers, one significant, terminated their contract services with HCS during the third quarter of 2021, with notice being provided in June of 2021. As a result, we determined that the loss of these customers resulted in a triggering event for analysis of impairment of our other indefinite and definite lived intangible assets balances as of June 30, 2021. It was determined that the fair value of the HCS intangible assets exceeded the carrying value, so no impairment was necessary.