Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

As of December 31, 2021 and 2020, goodwill was $7,367,000. This goodwill was recorded in connection with the October 1, 2019 acquisition of Oblong Industries.

We test goodwill for impairment on an annual basis on September 30th 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, as described above. 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 market-based methods.

For the Managed Services 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 a component of “Impairment Charges” on our consolidated Statements of Operations, and reduced goodwill for this reporting unit to zero.

For the Collaboration Products reporting unit, the fair value of this reporting unit exceeded its carrying amount on our annual testing dates and as of December 31, 2021, therefore no impairment charges were required during the years ended

December 31, 2021 and 2020. During the three months ended December 31, 2021, we considered the decline in our stock price to be a triggering event for an interim goodwill impairment test as of December 31, 2021. In the event we experience further 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.

The activity in goodwill during the years ended December 31, 2021 and 2020 is shown in the following table ($ in thousands):


Goodwill	Managed Services		Collaboration Products		Total
Balance January 1, 2020	$	541	$	7,367	$	7,908

Impairment	(541)		—		(541)
Balance December 31, 2020	—		7,367		7,367


Balance December 31, 2021	$	—	$	7,367	$	7,367