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Note 3 - Supplemental Balance Sheet Information (in Thousands) | 12 Months Ended
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Dec. 31, 2022
Notes to Financial Statements |
Supplemental Balance Sheet Disclosures [Text Block] | 3. Supplemental Balance Sheet Information
Accounts Receivable Net |  | December 31, |
Accounts receivable, net, consists of the following as of periods presented (in thousands): |  | 2022 |  |  | 2021 |
Trade |  | $ | 53,658 |  |  | $ | 44,424 |
Unbilled |  |  | 10,436 |  |  |  | 8,168 |
Non-trade |  |  | 1,274 |  |  |  | 2,143 |
Accounts receivable, gross |  |  | 65,368 |  |  |  | 54,735 |
Less allowance for doubtful accounts |  |  | (1,654 | ) |  |  | (564 | )
Accounts receivable, net |  | $ | 63,714 |  |  | $ | 54,171 |
Property and Equipment, Net |  | December 31, |
Property and equipment, net consists of the following as of the periods presented (in thousands): |  | 2022 |  |  | 2021 |
Equipment |  | $ | 5,109 |  |  | $ | 4,741 |
Furniture and fixtures |  |  | 2,319 |  |  |  | 2,319 |
Leasehold improvements |  |  | 352 |  |  |  | 351 |
Internal use software |  |  | 17,298 |  |  |  | 15,823 |
Property and equipment, gross |  |  | 25,078 |  |  |  | 23,234 |
Less accumulated depreciation and amortization |  |  | (21,817 | ) |  |  | (20,305 | )
Property and equipment, net |  | $ | 3,261 |  |  | $ | 2,929 |
Depreciation expense (including amortization of internal use software and intangible assets as described below) was $2.0 million and $2.1 million for the years ended December 31, 2022 and 2021, respectively. The Company capitalized $1.5 million and $1.2 million of costs related to internal use software in the years ended December 31, 2022 and 2021, respectively. The Company recognized approximately $1.2 million and $1.2 million of amortization expense related to internal use software for the years ended December 31, 2022 and 2021, respectively.
Goodwill |  | Americas |  |  | Asia-Pacific |  |  | EMEA |  |  |  |
Goodwill (in thousands): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 |  | $ | 3,728 |  |  | $ | – |  |  | $ | 438 |  | $ | 4,166 |
Change in goodwill due to impact of foreign currency |  |  | – |  |  |  | – |  |  |  | – |  |  | – |
Impairment of goodwill |  |  | (2,458 | ) |  |  | – |  |  |  | – |  |  | (2,458 | )
Balance at December 31, 2022 |  | $ | 1,270 |  |  | $ | – |  |  | $ | 438 |  | $ | 1,708 |
Goodwill is generally deductible for tax purposes, except for the portion related to purchase accounting step-up goodwill. As of December 31, 2022 and 2021, accumulated impairment losses of goodwill were $2.5 million and $0, respectively. Goodwill Impairment of Resource Plus of North Florida, Inc. The Company acquired Resource Plus of North Florida, Inc. ("Resource Plus”) in 2018 as a joint venture partnership and owns 51% of the Resource Plus business. At the time of the acquisition, the Company recorded $2.0 million of goodwill and $1.2 million of intangible assets relating to brand and technology. Due to the loss of a significant customer, during the year ended December 31, 2022, Resource Plus did not meet original forecast and reduced forecasts. The Company performed the Step 1 qualitative impairment test using a combination of the discounted cash flow and guideline public company methodologies. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires the Company to make assumptions and estimates regarding its future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future annual net cash flows, income tax considerations, discount rates, growth rates, and other market factors. The Company’s expectations also include certain assumptions that could be negatively impacted if the Company is unable to meet its cost expectations in relation to inflation. If current expectations of future growth rates and margins are not met, if market factors outside of the Company’s control, such as discount rates, income tax rates, foreign currency exchange rates, inflation, or any other factors, change, or if management’s expectations or plans otherwise change, including updates to the Company’s long-term operating plans, then one or more of our reporting units might become impaired in the future. As of December 31, 2022, the Company was required to test the Resource Plus reporting unit for impairment due to continued decline in revenues and profitability. The Company performed the Step 1 qualitative impairment test using a combination of the discounted cash flow and guideline public company methodologies. Key assumptions include management's estimates of forecasted revenue and forecasted cash flows. The impairment test indicated the goodwill of Resource Plus was fully impaired and the Company recorded an impairment loss of $2.0 million during the year ended December 31, 2022. Goodwill Impairment of SPAR TODOPROMO, SAPI, de CV The Company acquired SPAR TODOPROMO, SAPI, de CV ("SPAR Mexico”) in 2011 as a joint venture partnership and currently owns 51% of the SPAR Mexico business. At time of acquisition, the Company recorded $0.5 million of goodwill. During year ended December 31, 2022, SPAR Mexico did not meet original forecasts due to labor law changes in Mexico. The Company performed the Step 1 qualitative impairment test using a combination of the discounted cash flow and guideline public company methodologies. The impairment test indicated that the goodwill of SPAR Mexico was fully impaired and the Company recorded an impairment loss of $0.5 million USD during the year ended December 31, 2022.
Intangible Assets, Net |  | December 31, |
Intangible assets, net consists of the following as of the periods presented: |  | 2022 |  |  | 2021 |
Customer contracts and lists |  | $ | 3,543 |  |  | $ | 3,362 |
Trade names |  |  | 900 |  |  |  | 900 |
Patents |  |  | 870 |  |  |  | 870 |
Non-compete agreements |  |  | 520 |  |  |  | 520 |
Intangible assets, gross |  |  | 5,833 |  |  |  | 5,652 |
Less accumulated amortization |  |  | (3,793 | ) |  |  | (3,357 | )
Intangible assets, net |  | $ | 2,040 |  |  | $ | 2,295 |
The Company is amortizing its intangible assets over lives ranging from 5 to 25 years. Amortization expense for the years ended December 31, 2022 and 2021 was approximately $0.4 and $0.5, respectively. The annual amortization for each of the following years succeeding December 31, 2022 is summarized as follows (in thousands):
Year |  | Amount |
2023 |  | $ | 351 |
2024 |  |  | 290 |
2025 |  |  | 204 |
2026 |  |  | 204 |
2027 |  |  | 108 |
Thereafter |  |  | 883 |
Total |  | $ | 2,040 |
Accrued Expenses and Other Current Liabilities |  | December 31, |
Accrued expenses and other current liabilities consists of the following as of the periods presented: |  | 2022 |  |  | 2021 |
Taxes payable |  | $ | 2,660 |  |  | $ | 2,397 |
Accrued salaries and wages |  |  | 9,327 |  |  |  | 8,082 |
Accrued accounting and legal expenses |  |  | 2,186 |  |  |  | 1,251 |
Accrued third party labor |  |  | 2,411 |  |  |  | 1,927 |
Majority stockholders change of control agreement |  |  | – |  |  |  | 4,478 |
Other |  |  | 3,677 |  |  |  | 3,896 |
Accrued expenses and other current liabilities |  | $ | 20,261 |  |  | $ | 22,031 |

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