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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

6. Goodwill and other intangible assets

Goodwill

The changes in the carrying value of goodwill were as follows:

Balance at December 31, 2018	$	—
Initial value of PistonHeads acquisition		15,521
Foreign currency translation adjustment		(38	)
Purchase price adjustment ⁽¹⁾		(655	)
Balance at September 30, 2019	$	14,828

(1)

The purchase price adjustment corresponds to an adjustment for the deferred tax liability as the Company continues to refine income tax treatment.

The Company did not have a goodwill balance prior to the closing of the PistonHeads acquisition on January 8, 2019. The Company tests goodwill for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Other Intangible Assets

Intangible assets as of September 30, 2019 consist of the following:

	Weighted Average Remaining Useful Life (years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Brand		10.3	$	3,441	$	233	$	3,208
Customer relationships		2.3		1,027		253		774
Total			$	4,468	$	486	$	3,982

The Company did not have intangible assets prior to the closing of the PistonHeads acquisition on January 8, 2019. The Company recorded amortization expense related to intangible assets of $167 and $486 for the three and nine months ended September 30, 2019, respectively.

The estimated useful life of brand and customer relationships is 11 years and 3 years, respectively. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

Estimated amortization expense of intangible assets for future periods as of September 30, 2019, is as follows:

Year Ending December 31,	Amortization Expense
Remainder of 2019	$	161
2020		642
2021		642
2022		338
2023		310
2024 and thereafter		1,889
Total	$	3,982