XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.23.3

Note 7 - Intangible Assets, Including Goodwill | 9 Months Ended
--- | ---
Sep. 30, 2023
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7: INTANGIBLE ASSETS, INCLUDING GOODWILL Intangible Assets Intangible assets consisted of the following at September 30, 2023 and December 31, 2022:
|  | September 30, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
|  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Carrying |  |  | Accumulated |
|  | Amount |  |  | Amortization |  |  | Amount |  |  | Amortization |
Technology platform |  | $ | 9,765 |  |  | $ | 4,929 |  |  | $ | 9,765 |  |  | $ | 4,354 |
Purchased and developed software |  |  | 5,635 |  |  |  | 3,948 |  |  |  | 4,682 |  |  |  | 3,375 |
In-Process internally developed software platform |  |  | 5,618 |  |  |  | - |  |  |  | 4,074 |  |  |  | - |
Customer relationships |  |  | 15,000 |  |  |  | 3,820 |  |  |  | 15,000 |  |  |  | 2,849 |
Trademarks and trade names |  |  | 1,600 |  |  |  | 952 |  |  |  | 1,600 |  |  |  | 808 |
Non-compete |  |  | 30 |  |  |  | 24 |  |  |  | 30 |  |  |  | 13 |
|  |  | 37,648 |  |  |  | 13,673 |  |  |  | 35,151 |  |  |  | 11,399 |
Accumulated amortization |  |  | 13,673 |  |  |  |  |  |  |  | 11,399 |  |  |  |  |
Net book value of amortizable intangible assets |  | $ | 23,975 |  |  |  |  |  |  | $ | 23,752 |  |  |  |  |
For the three months ended September 30, 2023 and 2022, amortization of intangible assets charged to operations was $766 and $848, respectively. For the nine months ended September 30, 2023 and 2022 amortization of intangible assets charged to operations was $2,274 and $1,959, respectively. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is subject to an impairment review at a reporting unit level, on an annual basis at September 30th each fiscal year, when an event occurs, or circumstances change that would indicate potential impairment. The Company has only one reporting unit, and therefore the entire goodwill is allocated to that reporting unit. The Company assessed the carrying value of goodwill at the reporting unit level based on an estimate of the fair value of its reporting unit. Fair value of the reporting unit was estimated using both (1) a market approach, leveraging recent industry merger and acquisition activity as well as comparable public company information, and (2) a discounted cash flow analyses consisting of various assumptions, including expectations of future cash flows based on projections or forecasts derived from analysis of business prospects and economic or market trends that may occur, specifically, the Company gave significant consideration to actual historic financial results, including revenue growth rates in the current and preceding three years, further informed by known backlog and customer acquisitions. Based on the Company’s assessment, we determined that the fair value of our reporting unit exceeds its carrying value, and accordingly, the goodwill associated with the reporting unit is not considered to be impaired at September 30, 2023. The Company recognizes that any changes in our actual fourth quarter 2023 or projected 2024 results could potentially have a material impact on our assessment of goodwill impairment. The Company will continue to monitor the actual performance of its operations against expectations and assess indicators of possible impairment. The valuation of goodwill and intangible assets is subject to a high degree of judgment, uncertainty and complexity. Should any indicators of impairment occur in subsequent periods, the Company will be required to perform an analysis in order to determine whether goodwill is impaired. While our overall business performance has been consistent with our expectations, both before and after the acquisition of Reflect, we believe a significant portion of the decline in our market price relates primarily to both macroeconomic and recent capital transaction factors including: (1) market wide recessionary fears, (2) a lack of comprehension by the markets of the contingent consideration issued in the Merger with Reflect, and (3) the Company’s recent execution of a public offering of 3,000,000 shares of our common stock at a discount to then-market prices, resulting in significant short-term negative volume and price pressure on our common stock unrelated to the Company fundamentals. We do not believe these factors are consistent with or reflective of the underlying value of the business, and there were no other indicators of potential impairment as of September 30, 2023. However, should our market price remain at this level for an extended period of time, there could be potential future impairment. Based on the relatively recent decline in our share price and market capitalization, along with improving Company fundamentals and a share price and market capitalization that was substantially higher prior to the Company’s public offering, we believe our implied fair value continues to exceed our total carrying value.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration