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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets
6.  Goodwill and Intangible Assets

The Company monitors operating results and events and circumstances that may indicate potential impairment of intangible assets.

ASC 350 Indefinite-Lived Asset Testing – Pursuant to Accounting Standards Codification (ASC) 350, “Intangibles - Goodwill and Other,” the Company evaluates goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable.

During the three months ended September 30, 2022, we experienced a deterioration in sales, decline in revenues, delayed pipeline opportunities, and overall downward performance results and forecast results related to the Workforce Solutions business segment, which was determined to be a triggering event that may result in impairment of our long-lived assets. We performed an interim analysis and determined an impairment existed at September 30, 2022 in accordance with ASC 350. As such, we recorded an impairment of the related goodwill assets of $7.0 million. Goodwill impairment was allocated to the Training Services and Technical Staffing business units based on their pro rata share of Workforce Solution’s book value of Goodwill. The annual evaluation of the Company’s Goodwill assets at December 31, 2022, determined no additional impairment existed at that time.

During the three months ended September 30, 2023, we determined that the overall market capitalization deterioration due to the falling share price, decline in revenues, and delayed pipeline opportunities was material enough to be considered a triggering event that could result in impairment of our long-lived assets. We performed an interim analysis and determined an impairment existed for the Workforce Solutions business segment at September 30, 2023 in accordance with ASC 350. As such, we recorded an impairment of the related goodwill of $0.9 million for the three and nine months ended September 30, 2023 to the Training Services and Technical Staffing business units based on their pro rata share of Workforce Solution’s book value of Goodwill. No impairment was identified related to any other asset grouping.

The annual evaluation of the Company’s Goodwill assets at December 31, 2023, determined that the remaining $0.5 million Goodwill balance on Workforce Solutions segment was fully impaired. The $0.5 million charge was recorded as a component of operating expenses during the period.

ASC 360 Long-Lived Asset Testing – ASC 360 requires the Company to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Such events may include, but are not limited to, changes in market conditions, technological obsolescence, adverse changes in customer demand, and significant decreases in revenue or earnings.

Based on the triggering events noted above during the three months ended September 30, 2022 we performed an interim analysis to determine if an impairment existed at September 30, 2022 by its individual asset groupings, which we determined to be at the subsidiary level. We used a discounted cash flow analysis to determine the fair value of our asset group, and we concluded that the carrying value of the definite-lived intangible assets of Technical Staffing, a business unit of the Workforce Solutions segment, exceeded its fair value by $0.5 million, and we recorded a loss on impairment for this amount as of September 30, 2022. No Intangible assets were determined to be impaired as of December 31, 2022.

We performed additional discounted cash flow analysis for the three months ended September 30, 2023 and December 31, 2023 in conjunction with triggering events noted above for those periods. We concluded no impairment was identified related to any other asset groupings. No Intangible assets were determined to be impaired as of December 31, 2023.

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

(in thousands)
  
As of December 31, 2023
  
   
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Impact of
Impairment
    
Net
  
Amortized intangible assets:
                        
Customer relationships
  
$
8,164
    
$
(7,395
)
   $ -  
$
769
  
Trade names
    
1,689
      
(1,283
)
     -      
406
  
Developed technology
    
471
      
(471
)
     -      
-
  
Non-contractual customer relationships
    
433
      
(433
)
     -      
-
  
Noncompete agreement
    
527
      
(523
)
     -      
4
  
Alliance agreement
    
527
      
(527
)
     -      
-
  
Others
    
167
      
(167
)
     -      
-
  
Total
  
$
11,978
    
$
(10,799
)
   $
 -  
$
1,179
  

(in thousands)
  
As of December 31, 2022
  
   
Gross
Carrying
Amount
    
Accumulated
Amortization
    
Impact of
Impairment
    
Net
  
Amortized intangible assets:
                        
Customer relationships
  
$
8,628
    
$
(7,050
)
   $
(464 )  
$
1,114
  
Trade names
    
1,689
      
(1,196
)
     -      
493
  
Developed technology
    
471
      
(471
)
     -      
-
  
Non-contractual customer relationships
    
433
      
(433
)
     -      
-
  
Noncompete agreement
    
527
      
(486
)
     -      
41
  
Alliance agreement
    
527
      
(488
)
     -      
39
  
Others
    
167
      
(167
)
     -      
-
  
Total
  
$
12,442
    
$
(10,291
)
   $
(464 )  
$
1,687
  

Amortization expense related to definite-lived intangible assets totaled $0.5 million and $0.9 million for the years ended December 31, 2023 and 2022, respectively. The $1.2 million of intangible assets at December 31, 2023, have a weighted average remaining life of 9.5 years.

The following table details the estimated amortization expense of the definite-lived intangible assets for the next five years:

(in thousands)
      
Years ended December 31:
      
2024
  
$
332
  
2025
    
255
  
2026
    
204
  
2027
    
169
  
2028
     108  
Thereafter
    
111
  
   
$
1,179
  

Goodwill

(in thousands)

 
  
Goodwill
    
Impairment
    
Net
  
Engineering
  
$
8,278
    
$
(3,370
)
  
$
4,908
  
Workforce Solutions
    
8,431
      
(8,431
)
    
-
  
Net book value at December 31, 2023
  
$
16,709
    
$
(11,801
)
  
$
4,908
  

 
  
Goodwill
    
Impairment
    
Net
  
Engineering
  
$
8,278
    
$
(3,370
)
  
$
4,908
  
Workforce Solutions
    
8,431
      
(7,040
)
    
1,391
  
Net book value at December 31, 2022
  
$
16,709
    
$
(10,410
)
  
$
6,299