Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.20.1
Intangible Assets and Goodwill
 3 Months Ended
Mar. 31, 2020
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):
 
March 31, 2020
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade Names
 
Total
Original cost
$
4,756

 
$
7,912

 
$
2,178

 
$
14,846

Accumulated amortization
(3,347
)
 
(7,612
)
 
(1,117
)
 
(12,076
)
Net identifiable intangible assets
$
1,409

 
$
300

 
$
1,061

 
$
2,770

 
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

Changes to the carrying amount of net amortizable intangible assets consisted of the following (in thousands):
 
Three Months Ended
 March 31, 2020
Balance, beginning of period
$
3,075

Amortization expense
(236
)
Currency translation
(69
)
Balance, end of period
$
2,770


Amortization expense of intangible assets consisted of the following (in thousands):
 
 
Three Months Ended
 March 31,
 
 
2020
 
2019
Amortization expense associated with the developed technology included in cost of revenues
 
$
72

 
$
117

Amortization expense associated with other acquired intangible assets included in operating expenses
 
164

 
218

Total amortization expense
 
$
236

 
$
335


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 $6.7 million at March 31, 2020 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of March 31, 2020, 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. Sustained 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.