Note

Goodwill and Intangible Assets

	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived assets (in thousands):
Goodwill	$	3,905	$	—	$	3,905	$	8,205	$	—	$	8,205
Tradenames		1,147		—		1,147		1,147		—		1,147
	$	5,052	$	—	$	5,052	$	9,352	$	—	$	9,352

Finite-lived assets (in thousands):
Customer relationships	$	6,895	$	2,380	$	4,515	$	6,895	$	1,395	$	5,500
Non-compete agreement		627		505		122		627		296		331
	$	7,522	$	2,885	$	4,637	$	7,522	$	1,691	$	5,831

	Years Ended December 31,
	2019			2018
Goodwill activity (in thousands):
Beginning balance	$	8,205		$	8,205
Impairment charge		(4,300	)		—
Ending balance	$	3,905		$	8,205

Management completed its annual goodwill impairment assessment as of

April 30, 2019.

Increased cost of services and administrative expenses at HCS have resulted in declining cash flow for the business. Based on the likelihood of these expenses remaining higher than initially forecast, management determined that the carrying value of the HCS goodwill exceeded its fair value by

$2.6

million. A goodwill impairment charge in this amount was recorded during the

second

quarter of

2019.

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

impairment was necessary.

During the

fourth

quarter of

2019,

HCS was notified by a significant customer of its intent to terminate its contract services as of

January 29, 2020.

As a result, confirmation of the loss of the customer represented a triggering event for analysis of impairment of our intangible asset and goodwill balances as of

September 30, 2019.

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

$1.7

million, and this adjustment was recorded during the

third

quarter of

2019.

Amortization expense (in thousands):
2018	$	1,194
2019		1,194
Estimated future amortization expense (in thousands):
2020	$	1,107
2021		985
2022		985
2023		985
Thereafter		575
Total estimated amortization expense	$	4,637