INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

8. INTANGIBLE ASSETS AND GOODWILL

In March 2022, the Company reached a non-binding understanding with an unrelated third party that contemplates the sale of IBEX and the real property used in the operation of IBEX. The potential sale is subject to a number of contingencies. Even though the proposed sale may not materialize, the Company is exploring its options with respect to IBEX, which is likely to result in curtailed operation of the business or some other disposition in 2022. For the year ended December 31, 2021, the Company performed an impairment review and concluded that goodwill and intangible assets were impaired. This resulted in the Company writing off the goodwill and intangible assets.

Intangible assets, net, consist of the following (in thousands):

	December 31, 2021		December 31, 2020
Non-compete agreement	$	–	$	410
Customer contracts and relationships		–		534
Trade names and trademarks		–		101
Backlog		–		12
Total intangible assets, gross		–		1,057
Accumulated amortization		–		(515	)
Total intangible assets, net	$	–	$	542

Amortization expense for the years ended December 31, 2021 and December 31, 2020 was approximately $0.2 million for each period.

Changes to goodwill during the year ended December 31, 2021 were as follows:

	Total
Balance – December 31, 2020	$	278
Impairment charge to goodwill		(278	)
Balance – December 31, 2021	$	–