XML 39 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
Note 16 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

16. Commitments and contingencies:


(a)           The Company has several non-cancelable lease and purchase obligations primarily for general office facilities, service contracts for mobile telephone services and equipment that expire over the next ten years. Future minimum payments under these agreements are as follows:


Contractual Obligations for the year ending December 31,

  

Contractual Lease Obligations

    

Purchase Obligations

   

Total Obligations

  
                         

2016

   $ 973,000     $ 9,279,000     $ 10,252,000  

2017

     989,000       12,713,000       13,702,000  

2018

     1,020,000       443,000       1,463,000  

2019

     1,003,000       —       1,003,000  

2020

     991,000       —       991,000  

Thereafter

     1,188,000       —       1,188,000  
    $ 6,164,000     $ 22,435,000     $ 28,599,000  

Rental expense under operating lease agreements was $1.0 million, $0.9 million and $0.8 million for the years ended December 31, 2015 2014 and 2013, respectively.


(b)           On February 9, 2015 Ting Fiber, Inc.(“TING”) entered into a lease and network operation agreement with the City of Westminster, Maryland (the ”City”) relating to the deployment of a new fiber network throughout the Westminster area (“WFN”).


Under the agreement, the City will finance, construct, and maintain the WFN which will be leased to TING for a period of ten years. The network will be constructed in phases, the scope and timing of which shall be determined by the City, in cooperation with TING.


Under the terms of the agreement, TING may be required to advance funds to the City in the event of a quarterly shortfall between the City’s revenue from leasing the network to TING and the City’s debt service requirements relating to financing of the network. TING is responsible for shortfalls between $50,000 and $150,000 per quarter. As at December 31, 2015 financing for the construction of the WFN has not yet been arranged and an estimate cannot be made of the maximum potential amount of future payments under the agreement.


(c)           In the normal course of its operations, the Company becomes involved in various legal claims and lawsuits. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions outstanding or pending as of December 31, 2015 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Company’s financial position.