Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.19.2
Intangible Assets and Goodwill
6 Months Ended
Jun. 30, 2019
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, 2019
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Total
Original cost
$
4,811

 
$
8,013

 
$
2,180

 
$
15,004

Accumulated amortization
(2,986
)
 
(7,406
)
 
(1,013
)
 
(11,405
)
Net identifiable intangible assets
$
1,825

 
$
607

 
$
1,167

 
$
3,599

 
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

Changes to the carrying amount of net amortizable intangible assets consisted of the following (in thousands):
 
Six Months Ended
 June 30, 2019
Balance, beginning of period
$
4,247

Amortization expense
(650
)
Currency translation
2

Balance, end of period
$
3,599


Amortization expense of intangible assets consisted of the following (in thousands):
 
Three Months Ended
 June 30,
 
Six Months Ended
 June 30,
 
2019
 
2018
 
2019
 
2018
Amortization expense associated with the developed technology included in cost of revenues
$
114

 
$
293

 
$
231

 
$
591

Amortization expense associated with other acquired intangible assets included in operating expenses
201

 
227

 
419

 
456

Total amortization expense
$
315

 
$
520

 
$
650

 
$
1,047


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 $6.9 million at June 30, 2019 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of June 30, 2019, 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 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.