Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.10.0.1
Intangible Assets and Goodwill
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
Intangible Assets and Goodwill
Intangible Assets
The Company’s amortizable intangible assets consisted of the following (in thousands):
 
June 30, 2018
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Total
Original cost
$
4,883

 
$
8,145

 
$
2,182

 
$
15,210

Accumulated amortization
(2,465
)
 
(6,669
)
 
(874
)
 
(10,008
)
Net identifiable intangible assets
$
2,418

 
$
1,476

 
$
1,308

 
$
5,202

 
December 31, 2017
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Total
Original cost
$
4,928

 
$
8,225

 
$
2,184

 
$
15,337

Accumulated amortization
(2,194
)
 
(6,043
)
 
(805
)
 
(9,042
)
Net identifiable intangible assets
$
2,734

 
$
2,182

 
$
1,379

 
$
6,295

Changes to the carrying amount of net amortizable intangible assets for the six months ended June 30, 2018 consisted of the following (in thousands):
 
Six Months Ended 
 June 30, 2018
Balance, beginning of period
$
6,295

Amortization expense
(1,047
)
Currency translation
(46
)
Balance, end of period
$
5,202


Amortization expense of intangible assets consisted of the following (in thousands):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
Amortization expense associated with the developed technology included in cost of revenues
$
293

 
$
298

 
$
591

 
$
591

Amortization expense associated with other acquired intangible assets included in operating expenses
227

 
226

 
456

 
449

Total amortization expense
$
520

 
$
524

 
$
1,047

 
$
1,040


Goodwill
On October 3, 2014, the Company completed the acquisition of Kulu Valley, Ltd., subsequently renamed Qumu Ltd., and recognized $8.8 million of goodwill and $6.7 million of intangible assets. The goodwill balance of $7.2 million at June 30, 2018 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of June 30, 2018, the Company’s market capitalization, without a control premium, was greater than its book value and, as a result, the Company concluded there was no goodwill impairment. Declines in the Company’s market capitalization or a downturn in its future financial performance and/or future outlook could require the Company to record goodwill and other impairment charges. While a goodwill impairment charge is a non-cash charge, it would have a negative impact on the Company's results of operations.