Note 3 - Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Text Block] |
3. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The carrying value of goodwill is allocated to reporting units as follows:
We perform a goodwill impairment analysis at least annually (in the fourth quarter of each year) unless indicators of impairment exist in interim periods. The assumptions used in the analysis are based on the Company’s internal budget. The Company projects revenue, operating margins, and cash flows for a period of years and applies a perpetual long-term growth rate using discounted cash flows (DCF) method. These assumptions are reviewed annually as part of management’s budgeting and strategic planning cycles. These estimates may differ from actual results. In arriving at its forecasts, the Company considers past experience, economic trends and inflation, and industry and market trends, including the outbreak of COVID-19. The projections also take into account factors such as the expected impact from new client wins and expansion from existing clients' businesses and efficiency initiatives, and the maturity of the markets in which each business operates.
As of June 30, 2021, based on the qualitative assessment, we concluded there is no impairment of goodwill.
The following table presents the changes in goodwill during the three months ended June 30, 2021 and year ended December 31, 2020:
Intangible Assets
The following table presents our intangible assets:
As of June 30, 2021, based on the qualitative assessment, we concluded there is impairment of the Company's intangible assets.
Expected future amortization of intangible as of June 30, 2021 is as follows:
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