Goodwill

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

As of September 30, 2021 and December 31, 2020, goodwill was $7,367,000, recorded in connection with the October 1, 2019 acquisition of Oblong Industries. All goodwill as of September 30, 2021 and December 31, 2020 is recorded within the Oblong Industries reporting unit.

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. The Company operates two reporting segments, Oblong (formerly Glowpoint) and Oblong Industries. To determine the fair value of each reporting unit as of September 30, 2021 for the goodwill impairment test, we used a weighted average of the discounted cash flow method and a market-based method. The fair value of the Oblong Industries reporting unit exceeded its carrying amount, therefore no impairment charge on goodwill was recorded.

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 impairment charges on goodwill in the future.