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Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2015
Goodwill and Other Intangible Assets [Abstract]  
Goodwill and Other Intangible Assets

(5)  Goodwill and Other Intangible Assets

In connection with the acquisition of BlueKite, LTD (the “BlueKite Acquisition”) on January 10, 2014 (the “Closing Date”), the Company recorded $9.0 million of goodwill and $5.7 million of developed technology. There were no changes in the carrying amount of goodwill during the three and nine months ended September 30, 2015.  Developed technology is classified as an intangible asset and is being amortized on a straight-line basis over an estimated useful life of seven years.

As of September 30, 2015 and December 31, 2014, the gross accumulated amortization of the developed technology asset was $1.4 million and $0.8 million, respectively. 

Amortization expense related to the acquired intangible asset for both the three-month periods ended September 30, 2015 and 2014 was $0.2 million, and for both the nine-month periods ended September 30, 2015 and 2014 was $0.6 million, and was included in technology and development expense in the consolidated statements of operations.

In accordance with the terms of the BlueKite Acquisition agreement, the Company issued payments to the selling stockholders in the amount of $1.5 million in July 2015. The $1.5 million was a component of the $14.9 million BlueKite Acquisition purchase price, which was held back for 18 months following the Closing Date to satisfy any unresolved claims that may have arisen during the holdback period. In October 2015, the remaining 50% of the contingent common stock equity under the BlueKite Acquisition agreement was issued to selling stockholders pursuant the terms of the BlueKite Acquisition agreement and the Merger Agreement.