Note

- Impairment of long-lived assets

The Company's assessment of long-lived assets, and other identifiable intangibles is based upon factors that market participants would use in accordance with the accounting guidance for the fair value measurement of assets. At

October 31, 2020

, the Company performed a qualitative analysis assessment to determine if it was more likely than

not

that the fair values of the Company's long-lived assets exceeded their carrying values. The Company assessed

three

asset groups as part of this analysis: United States, Canada and Middle East. The qualitative assessment indicated that it was more likely than

not

that the fair values of the Company's long-lived assets exceeded their carrying values for the United States and Middle East asset groups. However, triggering events were identified related to the Company's Canada asset group, indicating potential impairment of the asset group's long-lived assets. Therefore, the Company performed a quantitative assessment to determine any potential impairment. After completion of this additional assessment, it was determined that there was

impairment of the Company's long-lived assets for the

three

and

nine

months ended

October 31, 2020

and

2019

. The Company will continue testing for potential impairment at least annually or as otherwise required by applicable accounting standards.

Goodwill.

The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual of the purchase price recorded as goodwill. All identifiable goodwill

as of

October 31, 2020

and

January 31, 2020

was attributable to the purchase of Perma-Pipe Canada, Ltd., which occurred in

2016.

		January 31, 2020				Foreign exchange change effect				October 31, 2020
Goodwill		$	2,254			$	(17	)		$	2,237

The Company performs an impairment assessment of goodwill annually as of

January 31,

or more frequently if triggering events occur, based on the estimated fair value of the related reporting unit or intangible asset. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. At

October 31, 2020

, the Company elected to perform a Step

qualitative analysis assessment to determine if it was more likely than

not

that the fair value of the Company's goodwill exceeded its carrying value. The qualitative assessment identified triggering events that indicated potential impairment of the Company's goodwill. Therefore, the Company proceeded to complete the Step

analysis to determine any potential impairment. The Step

analysis involved a quantitative fair valuation of the reporting unit associated with the Company's goodwill, including a market approach, transaction approach and discounted cash flow analysis. After completion of the Step

analysis, it was determined that the fair value of the reporting unit exceeded its carrying value, resulting in

impairment for the

three

and

nine

months ended

October 31, 2020

and

2019

, however there can be

assurance that a future impairment charge will

not

be required.