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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets
7.  Goodwill and Intangible Assets


During the three months ended March 31, 2020, we recognized an impairment charge of $4.3 million of certain intangible assets as a result of the valuation analysis performed. The need for the valuation analysis was triggered by the macroeconomic impact of the COVID-19 pandemic on our operations. This analysis did not indicate impairment of goodwill.



Our Step 1 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.



We monitor operating results and events and circumstances that may indicate potential impairment of intangible assets. We perform an annual intangible assets impairment analysis at the year end, which 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. The current assessment has no indication of impairment.



Management determined no additional triggering impact occurred during the year ended December 31, 2021.

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

(in thousands)
  
As of December 31, 2021
  
   
Gross Carrying Amount
    
Accumulated Amortization
    
Net
  
Amortized intangible assets:
                  
Customer relationships
  
$
8,628
    
$
(6,432
)
  
$
2,196
  
Trade names
    
1,689
      
(1,108
)
    
581
  
Developed technology
    
471
      
(471
)
    
-
  
Non-contractual customer relationships
    
433
      
(433
)
    
-
  
Noncompete agreement
    
527
      
(429
)
    
98
  
Alliance agreement
    
527
      
(382
)
    
145
  
Others
    
167
      
(167
)
    
-
  
Total
  
$
12,442
    
$
(9,422
)
  
$
3,020
  

(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 1.2 million and $1.9 million for the years ended December 31, 2021 and 2020, respectively. The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years:

(in thousands)
      
Years ended December 31:
      
2022
  
$
910
  
2023
    
640
  
2024
    
435
  
2025
    
334
  
2026
    266  
Thereafter
    
435
  
   
$
3,020
  

Goodwill

There were no changes in goodwill during 2019 to 2020 and 2020 to 2021:

(in thousands)

 
  
Goodwill
    
Impairment
    
Net
  
Performance Improvement Solutions
  
$
8,278
    
$
(3,370
)
  
$
4,908
  
Workforce Solutions
    
8,431
      
-
      
8,431
  
Net book value at December 31, 2021
  
$
16,709
    
$
(3,370
)
  
$
13,339