GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 9 – GOODWILL AND INTANGIBLE ASSETS

Impairment of Goodwill – During the year ended December 31, 2023 the Company experienced significant decline in our stock price and sustained losses from operations. Therefore, we completed a quantitative goodwill impairment analysis as of December 31, 2023. The results of the analysis during the fourth quarter indicated an impairment loss for goodwill related to acquisitions prior to 2021, and we recorded a non-cash impairment of $14.7 million. Accumulated impairment of goodwill for the years ended December 31, 2023 and 2022 was $14.7 million and $0, respectively.

Identifiable intangible assets are stated at cost, net of accumulated amortization. The assets are being amortized on the straight-line method over the estimated useful lives ranging from 3 to 11 years. Amortization expense for the years ended December 31, 2023 and 2022 was $1.6 million and $1.8 million, respectively

Goodwill assets consisted of the following as of December 31:

In thousands	2023			2022
Goodwill balance, beginning of year	$	16,542		$	16,453
Impairment loss		(14,686	)		-
Effective foreign exchange rates		(68	)		89
Goodwill balance, end of year	$	1,788		$	16,542

Intangible assets consisted of the following as of December 31:

In thousands	2023			2022
Trade names		6,227			6,284
Customer relationships		15,591			15,729
Other intangibles		2,173			2,216
Accumulated amortization		(18,333	)		(16,761	)
Intangibles, net	$	5,658		$	7,468

The future amortization expense on the trade names, customer relationships, and other intangibles are as follows:

In thousands
Years ending December 31,
2024	$	942
2025		776
2026		776
2027		776
2028		659
Thereafter		1,729
Total	$	5,658

Goodwill is not amortized but is evaluated for impairment annually or when indicators of a potential impairment are present. The impairment testing of goodwill is performed separately from our impairment testing of intangibles. The annual evaluation for impairment of goodwill and intangibles is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. None of the goodwill is deductible for income tax purposes.

Purchased intangible assets with finite useful lives are amortized over their respective estimated useful lives (using an accelerated method for customer relationships and trade names) to their estimated residual values, if any. The Company’s finite-lived intangible assets consist of customer relationships, contractor and resume databases, trade names, and internal use software and are being amortized over periods ranging from two to nine years. Purchased intangible assets are reviewed annually to determine if facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, recoverability is assessed by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the rate of amortization is accelerated, and the remaining carrying value is amortized over the new shorter useful life. No impairments were identified or changes to estimated useful lives have been recorded as of December 31, 2023 and 2022.