Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

v3.19.1
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Intangible Assets and Goodwill
Intangible Assets
The Company’s amortizable intangible assets consisted of the following (in thousands):
 
December 31, 2018
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Total
Original cost
$
4,818

 
$
8,023

 
$
2,180

 
$
15,021

Accumulated amortization
(2,721
)
 
(7,110
)
 
(943
)
 
(10,774
)
Net identifiable intangible assets
$
2,097

 
$
913

 
$
1,237

 
$
4,247

 
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


Amortization expense of intangible assets consisted of the following (in thousands):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Amortization expense associated with the developed technology included in cost of revenues
$
1,024

 
$
1,197

 
$
1,251

Amortization expense associated with other acquired intangible assets included in operating expenses
904

 
904

 
891

Total amortization expense
$
1,928

 
$
2,101

 
$
2,142


The Company estimates that amortization expense associated with intangible assets will be as follows (in thousands):
Year Ending December 31,
 
2019
$
1,210

2020
938

2021
732

2022
539

2023
298

Thereafter
530

Total
$
4,247


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 $7.0 million at December 31, 2018 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of December 31, 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.