Note 3 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

3. Goodwill and Intangible Assets

ASC

350

requires that goodwill be tested for impairment annually, unless potential interim indicators exist that could result in impairment. Although the Company has only

one

reporting segment, it has historically considered its

three

regions (Alabama, Missouri, and New England) to be reporting units for purposes of goodwill impairment testing. The Company changed its approach to managing its business from

three

semi-autonomous regions to a functional management approach with leadership for functions spanning the whole Company. In

2018,

the Company implemented a single billing and operations support system covering all customers. Additionally, a chief operating officer position was established and filled during

fourth

quarter

2018

to lead all operations. Therefore, the Company measures goodwill for impairment as a single reporting unit beginning in

2019.

The Company performed its annual goodwill impairment testing as of

October 1, 2020.

Beginning in

2011,

FASB allowed companies to

first

assess qualitative factors to determine whether there is more than a

50%

likelihood that the fair value of a reporting unit is less than its carrying value. The following categories of events and conditions were evaluated to determine their impact on goodwill, in light of the coronavirus pandemic, governmental responses to the pandemic and the changes in the Company's revenue and stock price:

● General macroeconomic conditions

● Industry and market conditions

● Changes in cost factors

● Overall financial performance

● Entity- and reporting unit-specific events

● Sustained decrease in share price

After reviewing the company-specific and market factors, the Company confirms that, as of

October 1, 2020,

the Company's goodwill was

not

impaired. The Company determined that

no

events or circumstances from

October 1, 2020,

through

December 31, 2020,

indicated that a further assessment was necessary.

There was

no

change in the carrying amount of goodwill during

2020

or

2019,

with a balance of

$45.0

million as of both

December 31, 2020,

and

2019.

The Company also found

no

impairment in the other intangible assets and the only change in the carrying amounts for the years ended

December 31, 2020,

and

2019,

is due to the amortization for each current year.

Intangible assets are summarized as follows (in thousands):

	December 31, 2019
	Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	$	24,025	$	(23,497	)	$	528
Contract relationships		19,600		(19,600	)		-
Non-competition		107		(107	)		-
Trade name		23		(21	)		2
Total	$	43,755	$	(43,225	)	$	530

	December 31, 2020
	Carrying Value		Accumulated Amortization			Net Book Value
Customer relationships	$	24,025	$	(23,867	)	$	158
Contract relationships		19,600		(19,600	)		-
Non-competition		107		(107	)		-
Trade name		23		(23	)		-
Total	$	43,755	$	(43,597	)	$	158

These intangible assets had a range of

2

to

15

years of useful lives at inception and utilize both the sum-of-the-years' digits and straight-line methods of amortization, as appropriate. The following tables present historical and expected amortization expense of the existing intangible assets as of

December 31, 2020,

for each of the following periods (in thousands):

Aggregate amortization expense for the years ended December 31,
2018	$	408
2019	$	389
2020	$	372
Expected amortization expense for the years ending December 31,
2021	$	158
2022		-
Total	$	158