Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2019

NOTE 4 — GOODWILL AND INTANGIBLE ASSETS, NET

On April 12, 2018, the Company acquired Car360, Inc. ("Car360"), a provider of app-based photo capture technology, for approximately $16.7 million, net of cash acquired of approximately $0.4 million. The purchase price was comprised of approximately $6.7 million cash, net of cash acquired, and approximately 0.5 million Class A Units of Carvana Group, with a fair value of approximately $10.0 million.

The purchase price was allocated to net tangible assets of approximately $0.2 million and intangible assets of approximately $9.9 million based on their fair values on the acquisition date and a related deferred tax liability of

approximately $2.5 million. The deferred tax liability will amortize over 3 years to 7 years, and approximately $0.0 million and $0.4 million was amortized during the three and six months ended June 30, 2019, respectively, and $0.0 million was amortized during the three and six months ended June 30, 2018. The excess of the purchase price over the amounts allocated to assets acquired, liabilities assumed and the deferred tax liability was approximately $9.4 million, which has been recorded as goodwill. The historical results of operations for Car360 were not significant to the Company's consolidated results of operations for the periods presented.

The following table summarizes intangible assets and goodwill related to the Car360 acquisition as of June 30, 2019 and December 31, 2018 (in thousands):


	Useful Life	June 30, 2019		December 31, 2018
Intangible assets:
Developed technology	7 years	$	8,642	$	8,642
Customer relationships	3 years	523		523
Non-compete agreements	5 years	774		774
Intangible assets, acquired cost		9,939		9,939
Less: accumulated amortization		(1,843)		(1,070)
Intangible assets, net		$	8,096	$	8,869

Goodwill	N/A	$	9,353	$	9,353

Amortization expense was approximately $0.4 million and $0.8 million during the three and six months ended June 30, 2019, respectively, and approximately $0.3 million during both the three and six months ended June 30, 2018. As of June 30, 2019, the remaining weighted-average amortization period for definite-lived intangible assets was approximately 5.4 years. The anticipated annual amortization expense to be recognized in future years as of June 30, 2019 is as follows (in thousands):


	Expected Future Amortization
Remainder of 2019	$	800
2020	1,600
2021	1,442
2022	1,389
2023	1,279

Thereafter	1,586
Total	$	8,096