NOTE 7. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. The fair values of net tangible assets and intangible assets acquired are based upon preliminary valuations and the Company's estimates and assumptions are subject to change within the measurement period (potentially up to one year from the acquisition date). The initial fair value measurement of identifiable intangible assets acquired in 2018 has not been completed as of the date of this filing and all of the excess of purchase price over the fair value of net assets acquired has been recorded as goodwill.

The following table presents the changes in the carrying amount of goodwill:

Intangible Assets

Intangible assets, net consisted of the following:

These definite-lived assets are being amortized over a period of three years. During the three and nine months ended September 30, 2018, the Company recorded amortization expense related to these definite-lived assets of $291 and $905, respectively. During the three and nine months ended September 30, 2017, the Company recorded amortization expense related to these definite-lived assets of $48 and $144, respectively.

The following table presents future amortization of the Company’s definite-lived intangible assets at September 30, 2018: