Goodwill was recorded in connection with the September 2011 acquisition of MPC Data, Ltd. (renamed BSQUARE EMEA, Ltd. in 2015), a United Kingdom based provider of software engineering services.

For 2018, we performed our annual goodwill assessment in the fourth quarter of 2018. We chose to forego performing the qualitative assessment and proceeded directly to performing the quantitative impairment test by comparing the fair value of our Professional Engineering Service (PES) reporting unit (renamed to Edge to Cloud in Q3 2019) with its carrying value, including goodwill, recording an impairment charge for the excess. When performing the assessment, we determined the fair value of our PES reporting unit based on our forecast of future revenue and expense cash flow streams. Based on the uncertainty of future sales for new PES services and the results of this assessment, we determined that the carrying value of goodwill was impaired. As a result, an impairment charge of $3.7 million was recorded.

For 2019, there was no carrying amount of goodwill recorded on the balance sheet.


	Cost		Impairment Loss			Net Carrying Value
Reconciliation of Goodwill carrying amount:
Balance as of December 31, 2019	$	-	$	-		$	-
Balance as of December 31, 2018	$	3,738	$	(3,738	)	$	-

Intangible assets relate to customer relationships that we acquired from TestQuest, Inc. in November 2008 and from the acquisition of BSQUARE EMEA, Ltd. in September 2011 and were as follows (in thousands):

	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Value
Customer relationships:
Balance as of December 31, 2019	$	1,275	$	(1,106	)	$	169
Balance as of December 31, 2018	$	1,275	$	(1,008	)	$	267

Amortization expense was $98,000 for both 2019 and 2018. Amortization expense in future periods is expected to be as follows (in thousands):

2020	$	98
2021		71
Total	$	169