Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

v3.19.3.a.u2
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 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):
 
December 31, 2019
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade-Names
 
Total
Original cost
$
4,878

 
$
8,135

 
$
2,182

 
$
15,195

Accumulated amortization
(3,293
)
 
(7,741
)
 
(1,086
)
 
(12,120
)
Net identifiable intangible assets
$
1,585

 
$
394

 
$
1,096

 
$
3,075

 
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


Amortization expense of intangible assets consisted of the following (in thousands):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Amortization expense associated with the developed technology included in cost of revenues
$
455

 
$
1,024

 
$
1,197

Amortization expense associated with other acquired intangible assets included in operating expenses
757

 
904

 
904

Total amortization expense
$
1,212

 
$
1,928

 
$
2,101


The Company estimates that amortization expense associated with intangible assets will be as follows (in thousands):
Year Ending December 31,
 
2020
$
955

2021
741

2022
545

2023
304

2024
141

Thereafter
389

Total
$
3,075


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 December 31, 2019 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of December 31, 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 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.