Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

As of December 31, 2020 and 2019, goodwill was $7,367,000 and $7,908,000, respectively. As of December 31, 2020, goodwill was comprised of $7,367,000 recorded in connection with the October 1, 2019 acquisition of Oblong Industries.

We test goodwill for impairment on an annual basis on September 30 of each year, or more frequently if events occur or circumstances change indicating that the fair value of the goodwill may be below its carrying amount. Following the Acquisition of Oblong Industries, the Company operated two reporting units, Oblong (formerly Glowpoint) and Oblong Industries. During the year ended December 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 goodwill impairment test for both reporting units as of March 31, 2020. To determine the fair value of each reporting unit for the goodwill impairment tests, we used a weighted average of the discounted cash flow method and a market-based method (comparing the Company’s equity and analyzing multiples of revenue for comparable companies). For the Oblong Industries reporting unit, the fair value of the reporting unit exceeded its carrying amount, as of both testing dates, therefore no impairment charge was required for the year ended December 31, 2020. For the Oblong (formerly Glowpoint) reporting unit, we recorded an impairment charge on goodwill of $541,000 at March 31, 2020, as the carrying amount of the reporting unit exceeded its fair value on the test date. This charge is recognized as “Impairment Charges” on our consolidated Statements of Operations, and reduced goodwill for the Oblong. reporting unit to zero.

The activity in goodwill during the years ended December 31, 2020 and 2019 is shown in the following table ($ in thousands):

Goodwill	Oblong		Oblong Industries		Total
Balance January 1, 2019	$	2,795	$	—	$	2,795
Acquisition	—		7,367		7,367
Impairment	(2,254)		—		(2,254)
Balance December 31, 2019	541		7,367		7,908
Impairment	(541)		—		(541)
Balance December 31, 2020	$	—	$	7,367	$	7,367

In the event we experience future declines in our revenue, cash flows and/or stock price, this may give rise to a triggering event that may require the Company to record additional impairment charges on goodwill in the future.