Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6 - Intangible Assets

The following table presents the components of net intangible assets (in thousands):


	As of June 30, 2020										As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Glowpoint
Customer Relationships	$	4,335	$	(4,335)	$	—	$	4,335	$	(4,335)	$	—
Affiliate network	994		(700)		294		994		(666)		328
Trademarks	548		(533)		15		548		(504)		44
Subtotal	$	5,877	$	(5,568)	$	309	$	5,877	$	(5,505)	$	372

Oblong Industries
Developed technology	10,060		(1,513)		8,547		10,060		(504)		9,556
Trade names	2,410		(181)		2,229		2,410		(60)		2,350
Distributor relationships	310		(47)		263		310		(16)		294
Subtotal	$	12,780	$	(1,741)	$	11,039	$	12,780	$	(580)	$	12,200
Total	$	18,657	$	(7,309)	$	11,348	$	18,657	$	(6,085)	$	12,572

At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three months ended March 31, 2020, we considered the novel Coronavirus (COVID-19) pandemic and resulting declines in certain of the Company’s revenue to be a triggering event for an interim impairment test of intangible assets for both reporting units. During the three months ended June 30, 2020, we did not determine a triggering event to be examined. The fair value of each reporting unit’s intangible assets exceeded the respective carrying amounts during both periods, therefore no impairment charges were required for the three and six months ended June 30, 2020. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets, which range from five years to twelve years in accordance with ASC Topic 350.

The weighted average lives for the components of intangible assets are as follows:


Glowpoint
Affiliate network			12 years
Trademarks			8 years

Oblong Industries
Developed technology			5 years
Trade names			10 years
Distributor relationships			5 years

Related amortization expense was $613,000 and $1,224,000 for the three and six months ended June 30, 2020, respectively. Related amortization expense was $32,000 and 64,000 for the three and six months ended June 30, 2019, respectively. The increase is the result of the October 1, 2019 acquisition of Oblong Industries.

Amortization expense for each of the next five succeeding years will be as follows (in thousands):


Remainder of 2020	$	1,209
2021	2,354
2022	2,351
2023	2,344
2024	1,827
Thereafter	1,263
Total	$	11,348