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Note 6 - Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of purchase price over the fair value of tangible or identifiable intangible assets acquired and liabilities assumed in our acquisitions. Goodwill consists of the following:
|  | December 31, 2015 |  |  | December 31, 2014 |
Boardtown Corporation |  | $ | 2,044,847 |  |  | $ | 2,044,847 |
Hosted Messaging Assets of Critical Path |  |  | 4,072,297 |  |  |  | 4,072,297 |
Innerwise Inc. |  |  | 5,801,040 |  |  |  | 5,801,040 |
Mailbank.com Inc. |  |  | 6,072,623 |  |  |  | 6,072,623 |
EPAG Domainservices GmbH |  |  | 882,320 |  |  |  | 882,320 |
Ting Fiber, Inc. (note 3) |  |  | 1,426,893 |  |  |  | — |
Ting Virginia, LLC (note 3) |  |  | 705,123 |  |  |  | — |
Total |  | $ | 21,005,143 |  |  | $ | 18,873,127 |
Goodwill is not amortized, but is subject to an annual impairment test. The Company performed an impairment analysis as outlined in note 2(g) and there were no indications of impairment in the 2015 and 2014 impairment tests. Other Intangible Assets: Intangible assets consist of acquired technology, brand, customer relationships, surname domain names, direct navigation domain names and network rights. The Company treats its intangible assets consisting of surname domain names and direct navigation domain names as indefinite life intangible assets. The Company has the exclusive right to these domain names as long as the annual renewal fees are paid to the applicable registry. Renewals occur routinely and at a nominal cost. The indefinite life intangible assets are not amortized, but are subject to impairment tests performed throughout the year. During 2015, we assessed that certain of the domain names that were originally acquired in the June 2006 acquisition of Mailbank.com Inc. that were up for renewal, should not be renewed. During the year ended December 31, 2015, domain names, with a book value of $206,116, were not renewed and were recorded as an impairment of indefinite life intangible assets. During the year ended December 31, 2014, domain names, with a book value of $577,145, were not renewed and were recorded as an impairment of indefinite life intangible assets. No impairment was recorded on indefinite-life intangible assets during the year ended December 31, 2013. Intangible assets, comprising technology, brand, customer relationships and network rights related to the acquisition of Boardtown Corporation in April 2004, the acquisition of the Hosted Messaging Business of Critical Path, Inc. in January 2006, the acquisition of Mailbank.com Inc. in June 2006, the acquisition of Innerwise, Inc. in July 2007, the acquisition of EPAG Domainservices GmbH in August 2011 and the acquisition of Ting Virginia, LLC in February 2015, are being amortized on a straight-line basis over periods of two to fifteen years. Acquired intangible assets consist of the following:
|  | Surname domain names |  |  | Direct navigation domain names |  |  | Brand |  |  | Customer relationships |  |  | Network rights |  |  | Total |
Amortization period |  | indefinite life |  |  | indefinite life |  |  | 7 years |  |  | 4 - 7 years |  |  | 15 years |  |  |  |  |
Balances, December 31, 2013 |  | $ | 12,096,712 |  |  | $ | 1,974,166 |  |  | $ | 224,650 |  |  | $ | 1,107,700 |  |  | $ | - |  |  | $ | 15,403,228 |
Additions to/(disposals from) domain portfolio, net |  |  | (6,490 | ) |  |  | (20,388 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (26,878 | )
Impairment of indefinite life intangible assets |  |  | (564,598 | ) |  |  | (12,547 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (577,145 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (114,140 | ) |  |  | (482,480 | ) |  |  | - |  |  |  | (596,620 | )
Balance December 31, 2014 |  |  | 11,525,624 |  |  |  | 1,941,231 |  |  |  | 110,510 |  |  |  | 625,220 |  |  |  | - |  |  |  | 14,202,585 |
Additions to/(disposals from) domain portfolio, net |  |  | (6,815 | ) |  |  | (17,251 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (24,066 | )
Impairment of indefinite life intangible assets |  |  | (179,454 | ) |  |  | (26,662 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (206,116 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (30,840 | ) |  |  | (193,366 | ) |  |  | (38,520 | ) |  |  | (262,726 | )
Acquisition of Ting Virginia, LLC (note 3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 68,000 |  |  |  | 692,000 |  |  |  | 760,000 |
Balance December 31, 2015 |  | $ | 11,339,355 |  |  | $ | 1,897,318 |  |  | $ | 79,670 |  |  | $ | 499,854 |  |  | $ | 653,480 |  |  | $ | 14,469,677 |
The following table shows the estimated amortization expense for each of the next 5 years, assuming no further additions to acquired intangible assets are made:
|  | Year ending December 31, |
2016 |  | $ | 274,116 |
2017 |  |  | 274,116 |
2018 |  |  | 169,676 |
2019 |  |  | 46,128 |
2020 |  |  | 46,128 |
Thereafter |  |  | 422,840 |
Total |  | $ | 1,233,004 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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