GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company recorded goodwill of $2,131 on October 29, 2021 in connection with its acquisition of Karani, LLC and goodwill of $2,088 in connection with its acquisition of Coit Staffing, Inc. (see Note 4 for further information).

For the years ended December 31, 2021 and 2020, the changes in carrying amount of goodwill were as follows:


	Carrying Value
	2021		2020
Goodwill, January 1	$	2,088	$	—
Acquisition	2,131		2,088

Goodwill, December 31	$	4,219	$	2,088

On October 1, 2021, the Company applied ASC 350, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its Coit Staffing, Inc. reporting unit was less than its carrying value. To estimate the fair value of the Coit Staffing, Inc. reporting unit, the Company used both an income approach and a market approach. The income approach required management to make significant estimates and judgments regarding future cash flows that were based on a number of factors including actual operating results, forecasted revenue and expenses, discount rate assumptions, and long-term growth rate assumptions. The market approach required the use of multiples based on financial metrics for both acquisitions and peer group companies. The Company did not recognize any impairment of goodwill related to the acquisition of Coit Staffing, Inc. At the conclusion of its assessment, the Company determined the fair value of the reporting unit exceeded its carrying value. As such, the Company determined that no impairment of goodwill had taken place as of December 31, 2021. In addition, the Company did not identify any impairment indicators associated with Karani, LLC in the two months following the acquisition.

Intangible Assets

For the years ended December 31, 2021 and 2020, the Company’s Intangible assets consisted of the following components:


2021	Weighted Average Remaining Amortization Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Non-compete agreements	0.8	$	80	$	(50)	$	30
Trade name	8.2	1,500		(118)		1,382
Customer lists	5.3	3,800		(328)		3,472
Developed technology	2.8	640		(36)		604
		$	6,020	$	(532)	$	5,488


2020	Weighted Average Remaining Amortization Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Non-compete agreements	1.8	$	80	$	(10)	$	70
Trade name	4.8	400		(20)		380
Customer lists	4.8	1,000		(50)		950
		$	1,480	$	(80)	$	1,400

Amortization expense for the years ended December 31, 2021 and 2020 was $452 and $80, respectively. Intangible assets are amortized on a straight-line basis over their estimated useful lives. No impairment in the value of amortizable intangible assets was recognized during the years ended December 31, 2021 or 2020.

Estimated future amortization expense of intangible assets for each of the next five fiscal years are as follows:


2022	$	1,100
2023	1,070
2024	1,034
2025	787
2026	577
Thereafter	920
	$	5,488

The change in the book value of amortizable intangible assets is as follows:


	January 1, 2021 Beginning Balance		Acquisition		Amortization		December 31, 2021 Ending Balance
Non-compete agreements	$	70	$	—	$	(40)	$	30
Trade name	380		1,100		(98)		1,382
Customer lists	950		2,800		(278)		3,472
Developed technology	—		640		(36)		604
	$	1,400	$	4,540	$	(452)	$	5,488


	January 1, 2020 Beginning Balance		Acquisition		Amortization		December 31, 2020 Ending Balance
Non-compete agreements	$	—	$	80	$	(10)	$	70
Trade name	—		400		(20)		380
Customer lists	—		1,000		(50)		950

	$	—	$	1,480	$	(80)	$	1,400