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GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure

4. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill is held by the Company’s Enterprise Solutions and Business Solutions segments. Goodwill and intangible assets with indefinite lives are subject to an annual impairment test as of November 30 and tested more frequently if events or circumstances occur that would indicate a potential decline in fair value.

In 2024 and 2023, the Company performed a qualitative “step 0” analysis. Accounting Standards Codification 350—Intangible – Goodwill and Other states that an entity may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. This analysis allows the Company to consider qualitative factors that might impact the carrying amount of its goodwill to determine whether a more detailed quantitative analysis would be necessary. Factors considered when performing the impairment assessment included the Company’s performance relative to historical and projected future operating results, macroeconomic conditions, industry and market trends, cost factors that may have a negative impact on earnings and cash flows, changes in the Company’s stock price and market capitalization, and other relevant entity-specific events.

Based on the above qualitative analysis, the Company determined goodwill was not impaired as of December 31, 2024 and 2023.

The carrying amount of goodwill for the periods presented is detailed below (in thousands):


Balance at December 31, 2024	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Goodwill, gross	$	66,236	$	8,539	$	7,634	$	82,409
Accumulated impairment losses		─		(1,173)		(7,634)		(8,807)
Net balance	$	66,236	$	7,366	$	—	$	73,602

Balance at December 31, 2023	Enterprise Solutions		Business Solutions		Public Sector Solutions		Total
Goodwill, gross	$	66,236	$	8,539	$	7,634	$	82,409
Accumulated impairment losses		─		(1,173)		(7,634)		(8,807)
Net balance	$	66,236	$	7,366	$	—	$	73,602

Intangible Assets

At December 31, 2024 and 2023, the Company’s intangible assets included a domain name for $450, which has an indefinite life and is not subject to amortization. In addition, in 2016 the Company acquired customer relationships from its Softmart and GlobalServe acquisitions, which are amortized on a straight-line basis over their estimated useful lives of 10 years. The Company’s remaining intangible assets are amortized in proportion to the estimates of the future cash

flows underlying the valuation of the assets. Intangible assets and related accumulated amortization are detailed below (in thousands):


		December 31, 2024						December 31, 2023
	Estimated	Gross		Accumulated		Net		Gross		Accumulated		Net
	Useful Lives	Amount		Amortization		Amount		Amount		Amortization		Amount
Customer list	8	$	3,400	$	3,400	$	—	$	3,400	$	3,400	$	—
Tradename	5		1,190		1,190		—		1,190		1,190		—
Customer relationships	10		12,200		10,441		1,759		12,200		9,222		2,978
Total intangible assets		$	16,790	$	15,031	$	1,759	$	16,790	$	13,812	$	2,978

In 2024, 2023, and 2022, the Company recorded amortization expense of $1,219, $1,220, and $1,220, respectively. The estimated amortization expense relating to intangible assets in each of the five succeeding years and thereafter is as follows (in thousands):


For the Years Ended December 31,
2025	$	1,220
2026		539
2027		—
2028		—
2029 and thereafter		—
	$	1,759