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Goodwill and Other Intangible Assets, net | 9 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets, net |
3. | Goodwill and Other Intangible Assets, net
Goodwill of $8.4 million related to our IT Staffing Services segment resulted from the 2015 acquisition of Hudson Global Resources Management’s U.S. IT staffing business. Goodwill related to our Data and Analytics Services segment includes our 2017 acquisition of the services division of InfoTrellis, which totaled $27.4 million, and our 2020 acquisition of AmberLeaf, which totaled $6.4 million. The Company recorded a $5.3 million goodwill impairment related to the Data and Analytics Services segment in 2023 and a $9.7 million goodwill impairment in 2018. The impairments were primarily attributable to declines in revenue levels and lower future revenue projections. A reconciliation of the beginning and ending amounts of goodwill by operating segment for the periods ended September 30, 2024 and December 31, 2023 is as follows:
|  | Nine Months Ended |  |  | Twelve Months Ended |
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | (in thousands) |
IT Staffing Services: |  |  |  |  |  |  |  |
Beginning balance |  | $ | 8,427 |  |  | $ | 8,427 |
Goodwill recorded |  |  | — |  |  |  | — |
Impairment |  |  | — |  |  |  | — |
Ending Balance |  | $ | 8,427 |  |  | $ | 8,427 |
|  | Nine Months Ended |  |  | Twelve Months Ended |
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | (in thousands) |
Data and Analytics Services: |  |  |  |  |  |  |  |
Beginning balance |  | $ | 18,783 |  |  | $ | 24,083 |
Goodwill recorded |  |  | — |  |  |  | — |
Impairment |  |  | — |  |  |  | (5,300 | )
Ending Balance |  | $ | 18,783 |  |  | $ | 18,783 |
The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of September 30, 2024 and December 31, 2023:
|  | As of September 30, 2024 |
(Amounts in thousands) |  | Amortization Period (In Years) |  |  | Gross Carrying Value |  |  | Accumulative Amortization |  |  | Net Carrying Value |
IT Staffing Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Client relationships |  |  | 12 |  |  | $ | 7,999 |  |  | $ | 6,194 |  |  | $ | 1,805 |
Covenant-not-to-compete |  |  | 5 |  |  |  | 319 |  |  |  | 319 |  |  |  | — |
Trade name |  |  | 3 |  |  |  | 249 |  |  |  | 249 |  |  |  | — |
Data and Analytics Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Client relationships |  |  | 12 |  |  |  | 19,641 |  |  |  | 11,003 |  |  |  | 8,638 |
Covenant-not-to-compete |  |  | 5 |  |  |  | 1,201 |  |  |  | 1,113 |  |  |  | 88 |
Trade name |  |  | 5 |  |  |  | 1,711 |  |  |  | 1,613 |  |  |  | 98 |
Technology |  |  | 7 |  |  |  | 1,979 |  |  |  | 1,650 |  |  |  | 329 |
Total Intangible Assets |  |  |  |  |  | $ | 33,099 |  |  | $ | 22,141 |  |  | $ | 10,958 |
|  | As of December 31, 2023 |
(Amounts in thousands) |  | Amortization Period (In Years) |  |  | Gross Carrying Value |  |  | Accumulative Amortization |  |  | Net Carrying Value |
IT Staffing Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Client relationships |  |  | 12 |  |  | $ | 7,999 |  |  | $ | 5,694 |  |  | $ | 2,305 |
Covenant-not-to-compete |  |  | 5 |  |  |  | 319 |  |  |  | 319 |  |  |  | — |
Trade name |  |  | 3 |  |  |  | 249 |  |  |  | 249 |  |  |  | — |
Data and Analytics Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Client relationships |  |  | 12 |  |  |  | 19,641 |  |  |  | 9,776 |  |  |  | 9,865 |
Covenant-not-to-compete |  |  | 5 |  |  |  | 1,201 |  |  |  | 1,047 |  |  |  | 154 |
Trade name |  |  | 5 |  |  |  | 1,711 |  |  |  | 1,539 |  |  |  | 172 |
Technology |  |  | 7 |  |  |  | 1,979 |  |  |  | 1,474 |  |  |  | 505 |
Total Intangible Assets |  |  |  |  |  | $ | 33,099 |  |  | $ | 20,098 |  |  | $ | 13,001 |
Amortization expense for the three and nine month periods ended September 30, 2024 and 2023 totaled $657,000 and $2.0 million, respectively and is included in selling, general and administrative expenses in the Consolidated Statement of Operations. For the three and nine month periods ended September 30, 2023 amortization expense was $693,000 and $2.1 million, respectively. The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2024 through 2028 is as follows:
|  | Years Ended December 31, |
|  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | 2028 |
|  | (Amounts in thousands) |
Amortization expense |  | $ | 2,693 |  |  | $ | 2,553 |  |  | $ | 2,413 |  |  | $ | 2,025 |  |  | $ | 1,637 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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