Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.20.2
Intangible Assets and Goodwill
6 Months Ended
Jun. 30, 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):
 
June 30, 2020
 
Customer Relationships
 
Developed Technology
 
Trademarks / Trade Names
 
Total
Original cost
$
4,750

 
$
7,902

 
$
2,178

 
$
14,830

Accumulated amortization
(3,470
)
 
(7,670
)
 
(1,153
)
 
(12,293
)
Intangibles assets, net
$
1,280

 
$
232

 
$
1,025

 
$
2,537

 
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
)
Intangibles assets, net
$
1,585

 
$
394

 
$
1,096

 
$
3,075

Changes to the carrying amount of net amortizable intangible assets consisted of the following (in thousands):
 
Six Months Ended
 June 30, 2020
Balance, beginning of period
$
3,075

Amortization expense
(467
)
Currency translation
(71
)
Balance, end of period
$
2,537


Amortization expense of intangible assets consisted of the following (in thousands):
 
Three Months Ended
 June 30,
 
Six Months Ended
 June 30,
 
2020
 
2019
 
2020
 
2019
Amortization expense associated with the developed technology included in cost of revenues
$
68

 
$
114

 
$
140

 
$
231

Amortization expense associated with other acquired intangible assets included in operating expenses
163

 
201

 
327

 
419

Total amortization expense
$
231

 
$
315

 
$
467

 
$
650


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 June 30, 2020 reflects the impact of foreign currency exchange rate fluctuations since the acquisition date.
As of June 30, 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.