NOTE

GOODWILL AND INTANGIBLE ASSETS, NET

(a)

Goodwill:

Changes in goodwill are as follows:

	Year ended December 3 1,
	2018		2019
Balance as of January 1,	$	46,612	$	46,612
Acquisition		—		4,458
Balance as of December 31,	$	46,612	$	51,070

(b)

Intangible assets:

		Year ended December 31, 2018						Year ended December 31, 2019
	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		4,955		841		5,796		5,796		—

I ntangible assets related to the acquisition of Hillcrest Lab s busines s
Customer relationships	4.4		—		—		—		3,518		395		3,123
Customer backlog	0.5		—		—		—		72		65		7
Core technologies	7.5		—		—		—		2,475		150		2,325

Intangible assets related to a technology investment in Immervision
Core technologies	6.4		—		—		—		7,063		472		6,591

Intangible assets related to an investment in NB-IoT technologies
NB-IoT technologies (*)	7.0		2,200		341		1,859		1,961		583		1,378

Total intangible assets		$	8,361	$	5,661	$	2,700	$	21,250	$	7,826	$	13,424

(*) 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,

$210

has

not

resulted in cash outflows as of

December

31,

2019.

In addition, the Company participated in programs sponsored by the Hong Kong government for the support of the above investment, and as a result, the Company received during

2019

an amount of

$239

related to the NB-IoT technologies, which was reduced from the gross carrying amount of intangible assets. The Company recorded the amortization cost of the NB-IoT technologies in “cost of revenues” on the Company’s consolidated statements of income (loss).

Future estimated annual amortization charges are as follows:

2020	$	2,588
2021		2,582
2022		2,581
2023		1,906
2024		1,852
2025 and thereafter		1,915
	$	13,424

The Company recorded amortization expense in the amount of

$1,242

and

$2,165

for the years ended

December 31, 2018

and

2019,

respectively.