GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company recorded goodwill of $687 on August 19, 2022 in connection with the HnB Acquisition and $2,131 on October 29, 2021 in connection with the Karani Acquisition. (See Note 4 for further information on the HnB Acquisition and the Karani Acquisition).

For the years ended December 31, 2022 and 2021, the changes in carrying amount of goodwill were as follows:


	Carrying Value
	2022		2021
Goodwill, January 1	$	4,219	$	2,088
Acquisition	687		2,131
Currency translation	(31)		—
Goodwill, December 31	$	4,875	$	4,219

On October 1, 2022, the Company applied ASC 350, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its Karani, Coit Staffing and HnB reporting unit was less than its carrying value. To estimate the fair value of the Karani, Coit Staffing and HnB 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 Karani, Coit Staffing and HnB. 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, 2022.

Intangible Assets

For the years ended December 31, 2022 and 2021, the Company’s Intangible assets consisted of the following components:


2022	Weighted Average Remaining Amortization Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Non-compete agreements	0.9	$	118	$	(85)	$	33
Trade name	7.1	1,548		(312)		1,236
Customer lists	4.3	3,857		(1,001)		2,856
Developed technology	1.8	640		(249)		391
		$	6,163	$	(1,647)	$	4,516


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

Amortization expense for the years ended December 31, 2022 and 2021 was $1,115 and $452, 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, 2022 or 2021.

Estimated future amortization expense for intangible assets for the remainder of the fiscal year ending December 31, 2022, and for each of the next fiscal years are as follows:


2023	$	1,111
2024	1,076
2025	816
2026	586
2027	505
Thereafter	422
	$	4,516

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


	January 1, 2022 Beginning Balance		Acquisition		Amortization		Translation and Other		December 31, 2022 Ending Balance
Non-compete agreements	$	30	$	40	$	(35)	$	(2)	$	33
Trade name	1,382		50		(194)		(2)		1,236
Customer lists	3,472		60		(673)		(3)		2,856
Developed technology	604		—		(213)		—		391
	$	5,488	$	150	$	(1,115)	$	(7)	$	4,516


	January 1, 2021 Beginning Balance		Acquisition		Amortization		Translation and Other		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