Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.10.0.1
Intangible Assets and Goodwill
9 Months Ended
Sep. 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):
 
September 30, 2018
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Total
Original cost
$
4,860

 
$
8,100

 
$
2,181

 
$
15,141

Accumulated amortization
(2,598
)
 
(6,974
)
 
(908
)
 
(10,480
)
Net identifiable intangible assets
$
2,262

 
$
1,126

 
$
1,273

 
$
4,661

 
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 nine months ended September 30, 2018 consisted of the following (in thousands):
 
Nine Months Ended 
 September 30, 2018
Balance, beginning of period
$
6,295

Amortization expense
(1,559
)
Currency translation
(75
)
Balance, end of period
$
4,661


Amortization expense of intangible assets consisted of the following (in thousands):
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2018
 
2017
 
2018
 
2017
Amortization expense associated with the developed technology included in cost of revenues
$
288

 
$
302

 
$
879

 
$
893

Amortization expense associated with other acquired intangible assets included in operating expenses
224

 
226

 
680

 
675

Total amortization expense
$
512

 
$
528

 
$
1,559

 
$
1,568


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 $7.1 million at September 30, 2018 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of September 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.