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Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets
Note 6 - Goodwill and Intangible Assets

During the three months ended March 31, 2020, we determined that the impact of the COVID-19 pandemic on the Company’s operations was an indicator of a triggering event that could result in potential impairment of goodwill. As such we performed a Step 1 goodwill analysis whereby, we compared the fair value of each reporting unit to its respective carrying value. Based upon this analysis, we determined the fair value of goodwill at the reporting unit levels exceeded the carrying value and thus there was no impairment for the period ended March 31, 2020. The Step 1 analysis was updated as of December 31, 2020 for our annual impairment test and did not identify any impairment of goodwill as of such date.

Our goodwill impairment analysis includes the use of a discounted cash flow model that requires management to make assumptions regarding estimates of growth rates used to forecast revenue, operating margin and terminal value as well as determining the appropriate risk-adjusted discount rates and other factors that impact fair value determinations.

Due to the impact of the COVID-19 pandemic, definite-lived intangible assets were reviewed for impairment. The undiscounted cash flows evidenced impairment for the DP Engineering asset group. As such, we used a discounted cash flow model to determine the fair value of the DP Engineering asset group and recorded an impairment charge of $4.3 million for the period ended March 31, 2020.

The Company’s intangible assets impairment analysis includes the use of undiscounted cash flow and discounted cash flow models that requires management to make assumptions regarding estimates of growth rates used to forecast revenue, operating margin and terminal value as well as determining the appropriate risk adjusted discount rates and other factors that impact fair value determinations.

Management concluded that there were no triggering events that occurred during the three months ended March 31, 2021.

The following table shows the gross carrying amount and accumulated amortization of definite-lived intangible assets:

(in thousands)
 
As of March 31, 2021
 
  
Gross Carrying Amount
  
Accumulated Amortization
  
Net
 
Amortized intangible assets:
         
Customer relationships
 
$
8,628
  
$
(5,772
)
 
$
2,856
 
Trade names
  
1,689
   
(1,042
)
  
647
 
Developed technology
  
471
   
(471
)
  
-
 
Non-contractual customer relationships
  
433
   
(433
)
  
-
 
Noncompete agreement
  
527
   
(360
)
  
167
 
Alliance agreement
  
527
   
(304
)
  
223
 
Others
  
167
   
(167
)
  
-
 
Total
 
$
12,442
  
$
(8,549
)
 
$
3,893
 

(in thousands)
 
As of December 31, 2020
 
  
Gross Carrying Amount
  
Accumulated Amortization
  
Impact of Impairment
  
Net
 
Amortized intangible assets:
            
Customer relationships
 
$
11,730
  
$
(5,504
)
 
$
(3,102
)
 
$
3,124
 
Trade names
  
2,467
   
(1,020
)
  
(778
)
  
669
 
Developed technology
  
471
   
(471
)
  
-
   
-
 
Non-contractual customer relationships
  
433
   
(433
)
  
-
   
-
 
Noncompete agreement
  
949
   
(336
)
  
(422
)
  
191
 
Alliance agreement
  
527
   
(277
)
  
-
   
250
 
Others
  
167
   
(167
)
  
-
   
-
 
Total
 
$
16,744
  
$
(8,208
)
 
$
(4,302
)
 
$
4,234
 

Amortization expense related to definite-lived intangible assets totaled $0.3 million and $0.7 million for the three months ended March 31, 2021 and 2020, respectively. The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years and thereafter:
(in thousands)
   
Years ended December 31:
   
2021
 
$
874
 
2022
  
910
 
2023
  
640
 
2024
  
435
 
2025
  
334
 
Thereafter
  
700
 
Total
 
$
3,893