Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of purchase consideration in a business combination over the fair value of tangible and intangible assets acquired net of the liabilities assumed.

The following table reflects the carrying value of goodwill (in thousands):

	Carrying Value
Balance as of December 31, 2019	$	74,116
Adjustments (1)		(1,058	)
Balance as of June 30, 2020	$	73,058

(1) The adjustments arise from the resolution of contingencies associated with the dataxu acquisition.

Intangible Assets

The following table is the summary of Company’s intangible assets (in thousands):

	As of June 30, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	62,367	$	(8,148	)	$	54,219	5.9
Customer relationships		13,400		(2,233	)		11,167	4.0
Tradename		400		(400	)		-	0.5
Patents		4,076		(170	)		3,906	14.0
Intangible assets	$	80,243	$	(10,951	)	$	69,292
	As of December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	62,367	$	(2,860	)	$	59,507	5.9
Customer relationships		13,400		(558	)		12,842	4.0
Tradename		400		(133	)		267	0.5
Patents		4,076		(24	)		4,052	14.0
Intangible assets	$	80,243	$	(3,575	)	$	76,668

The Company recorded expenses of $3.6 million and $0.1 million for amortization of intangible assets during the three months ended June 30, 2020 and 2019, respectively. The Company recorded expenses of $7.4 million and $0.3 million for amortization of intangible assets during the six months ended June 30, 2020 and 2019, respectively. In three and six months ended June 30, 2020 and 2019, the Company recorded amortization of developed technology in cost of revenue, platform, cost of revenue, player, research and development, and general and administrative expenses in the consolidated statement of operations and recorded amortization of customer relationships and tradename in sales and marketing expenses in the consolidated statement of operations.

The estimated future amortization expense for intangible asset for the next five years and thereafter is as follows (in thousands):

Year Ending December 31,
2020 (remaining 6 months)	$	7,111
2021		14,036
2022		13,666
2023		13,108
2024		10,316
Thereafter		11,055
Total	$	69,292