Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. The Company performs impairment tests related to its goodwill on an annual basis or when certain triggering events or circumstances are identified that would more likely than not reduce the estimated fair value of the goodwill below its carrying amount.

As a result of the significant decrease in the Company’s publicly quoted share price and market capitalization during the second quarter of fiscal 2023, the Company has performed a quantitative test of its goodwill as of July 31, 2022. The Company recognized a $5.8 million non-cash goodwill impairment charge for the three and six month periods ended July 31, 2022.

For July 31, 2022, the Company performed this quantitative goodwill impairment test and estimated the fair value of its single reporting unit based on a combination of the income (estimates of future discounted cash flows) and the market approach (market multiples for similar companies) using unobservable inputs (Level 3). The income approach uses a discounted cash flow ("DCF") method that utilizes the present value of cash flows to estimate fair value of the Company's reporting unit. The future cash flows for the reporting unit were projected based upon the Company's estimates of future revenue, operating income and other factors such as working capital and capital expenditures. As part of the DCF analysis, the Company projected revenue and operating profits, and assumed a long-term revenue growth rates in the terminal year. The market approach utilizes multiples of revenues and earnings before interest expense, taxes, depreciation and amortization ("EBITDA") to estimate the fair value of the Company's reporting unit. The market multiples used for the Company's single reporting unit were based on a group of comparable companies’ market multiples applied to the Company’s revenue and EBITDA. There were no impairment charges recorded for the three and six month periods ended July 31, 2021.

The Company’s finite-lived intangible assets were fully amortized as of January 31, 2022.