7. Goodwill and Intangible Assets

Goodwill

The following table summarizes the carrying amount of goodwill resulting from the acquisition of 3VR (in thousands):

	Premises		Credentials		Identity		All Other		Total
Balance at December 31, 2017	$	—	$	—	$	—	$	—	$	—
Acquisition of business		5,781		—		—		—		5,781
Balance at September 30, 2018	$	5,781	$	—	$	—	$	—	$	5,781

In accordance with ASC 350, the Company tests goodwill with indefinite lives annually for impairment and assesses whether there are any indicators of impairment on an interim basis. The Company performs interim goodwill impairment reviews between its annual reviews if certain events and circumstances have occurred, including a deterioration in general economic conditions, an increased competitive environment, a change in management, key personnel, strategy or customers, negative or declining cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. The Company believes the methodology that it uses to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides it with a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether its goodwill is impaired are outside of its control and it is reasonably likely that assumptions and estimates will change in future periods. These changes in assumptions and estimates could result in future impairments. During the quarter ended September 30, 2018, the Company noted no indicators of goodwill impairment and concluded no further testing necessary.

Intangible Assets

The following table summarizes the gross carrying amount and accumulated amortization for intangible assets resulting from acquisitions (in thousands):

				Developed			Customer
	Trademarks			Technology			Relationships			Total
Amortization period (in years)	5			10 – 12			4 – 12

Gross carrying amount at December 31, 2017	$	—		$	4,600		$	10,639		$	15,239
Accumulated amortization		—			(3,257	)		(7,617	)		(10,874	)

Intangible assets, net at December 31, 2017	$	—		$	1,343		$	3,022		$	4,365

Gross carrying amount at September 30, 2018	$	400		$	7,600		$	13,539		$	21,539
Accumulated amortization		(50	)		(3,779	)		(8,555	)		(12,384	)

Intangible assets, net at September 30, 2018	$	350		$	3,821		$	4,984		$	9,155

Each period, the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. If a revision to the remaining period of amortization is warranted, amortization is prospectively adjusted over the remaining useful life of the intangible asset. Intangible assets subject to amortization are amortized over their useful lives as shown in the table above. The Company evaluates its amortizable intangible assets for impairment at the end of each reporting period. The Company did not identify any impairment indicators during the three or nine months ended September 30, 2018.

The following table illustrates the amortization expense included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017, respectively (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Cost of revenue	$	186	$	112	$	522	$	336
Selling and marketing		345		252		988		756
Total	$	531	$	364	$	1,510	$	1,092

The estimated annual future amortization expense for purchased intangible assets with definite lives as of September 30, 2018 is as follows (in thousands):

2018 (remaining three months)	$	532
2019		2,125
2020		2,125
2021		670
2022		670
Thereafter		3,033
Total	$	9,155