Goodwill and Other Intangible Assets, net

12 Months Ended

Dec. 31, 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 IT. 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 three years ended December 31, 2024 is as follows:


	Years Ended December 31,
	2024		2023		2022
	(Amounts in thousands)
IT Staffing Services:
Beginning balance	$	8,427	$	8,427	$	8,427
Goodwill recorded		—		—		—
Impairment		—		—		—

Ending balance	$	8,427	$	8,427	$	8,427


	Years Ended December 31,
	2024		2023			2022
	(Amounts in thousands)
Data and Analytics Services:
Beginning balance	$	18,783	$	24,083		$	24,083
Goodwill recorded		—		—			—
Impairment		—		(5,300	)		—

Ending balance	$	18,783	$	18,783		$	24,083

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 December 31, 2024 and 2023:


	As of December 31, 2024
(Amounts in thousands)	Amortization Period (In Years)		Gross Carrying Value		Accumulative Amortization		Net Carrying Value
IT Staffing Services:
Client relationships		12	$	7,999	$	6,361	$	1,638
Covenant-not-to-compete		5		319		319		—
Trade name		3		249		249		—
Data and Analytics Services:
Client relationships		12		19,641		11,413		8,228
Covenant-not-to-compete		5		1,201		1,135		66
Trade name		5		1,711		1,637		74
Technology		7		1,979		1,677		302

Total Intangible Assets			$	33,099	$	22,791	$	10,308


	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 years ended December 31, 2024, 2023 and 2022 totaled $2.7 million, $2.8 million and $3.0 million, respectively and is included in selling, general and administrative expenses in the Consolidated Statement of Operations.

The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2025 through 2029 is as follows:


	Years Ended December 31,
	2025		2026		2027		2028		2029
	(Amounts in thousands)
Amortization expense	$	2,553	$	2,413	$	2,025	$	1,637	$	1,000