NOTE

GOODWILL AND INTANGIBLE ASSETS, NET

(a)

Goodwill:

Changes in goodwill are as follows:

	September 30 , 2019 (unaudited)		December 31, 2018

Balance as of January 1,	$	46,612	$	46,612
Acquisition		4,458		—
Balance as of September 30,	$	51,070	$	46,612

(b)

Intangible assets:

			Nine months ended September 30, 2019 (unaudited)						Year ended December 31, 2018
	Weighted average amortization p eriod (years)		Gross carrying amount		Accumulated amortization		Net		Gross carrying amount		Accumulated amortization		Net

Intangible assets –amortizable:

Intangible assets related to the acquisition of RivieraWaves
Customer relationships		4.5	$	272	$	272	$	—	$	272	$	272	$	—
Customer backlog		1.5		93		93		—		93		93		—
Core technologies		5.1		5,796		5,586		210		5,796		4,955		841

I ntangible assets related to the acquisition of Hillcrest Lab s busines s
Customer relationships		4.4		3,518		176		3,342		—		—		—
Customer backlog		0.5		72		29		43		—		—		—
Core technologies		7.5		2,475		67		2,408		—		—		—

I ntangible assets related to a technology investment in Immervision
Core technologies		6.4		10,000		274		9,726		—		—		—

I ntangible assets related to an investment in NB-IoT technologies
NB-IoT technologies (*)		7.0		2,200		576		1,624		2,200		341		1,859

Total intangible assets			$	24,426	$	7,073	$	17,353	$	8,361	$	5,661	$	2,700

(*) During the

first

quarter of

2018,

the Company entered into an agreement to acquire certain NB-IoT technologies in the amount of

$2,800,

of which technologies valued at

$600

has

not

been received. Of the

$2,200,

$610

has

not

resulted in cash outflows as of

September

30,

2019.

The Company recorded the amortization cost of the NB-IoT technologies in “cost of revenues” on the Company’s interim condensed consolidated statements of income (loss).

Future estimated annual amortization charges are as follows:

2019	$	1,021
2020		3,080
2021		3,075
2022		3,075
2023		2,399
2024 and thereafter		4,703
	$	17,353