Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2025

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 March 31, 2025, and December 31, 2024 is as follows:


	Three Months Ended		Twelve Months Ended
	March 31, 2025		December 31, 2024
	(in thousands)
IT Staffing Services:
Beginning balance	$	8,427	$	8,427
Goodwill recorded		—		—
Impairment		—		—

Ending Balance	$	8,427	$	8,427


	Three Months Ended		Twelve Months Ended
	March 31, 2025		December 31, 2024
	(in thousands)
Data and Analytics Services:
Beginning balance	$	18,783	$	18,783
Goodwill recorded		—		—
Impairment		—		—

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 March 31, 2025 and December 31, 2024:


	As of March 31, 2025
(Amounts in thousands)	Amortization Period (In Years)		Gross Carrying Value		Accumulative Amortization		Net Carrying Value
IT Staffing Services:
Client relationships		12	$	7,999	$	6,528	$	1,471
Covenant-not-to-compete		5		319		319		—
Trade name		3		249		249		—
Data and Analytics Services:
Client relationships		12		19,641		11,821		7,820
Covenant-not-to-compete		5		1,201		1,157		44
Trade name		5		1,711		1,662		49
Technology		7		1,979		1,705		274

Total Intangible Assets			$	33,099	$	23,441	$	9,658


	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

Amortization expense for the three months ended March 31, 2025, and 2024 totaled $650,000 and $693,000, 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