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Note 18 - Segment Reporting
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

18. Segment Reporting: 


(a)  We are organized and managed based on three operating segments which are differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate and are described as follows:


1.     Network Access - Mobile Services - This segment derives revenue from the sale of mobile phones and telephony services to individuals and small businesses through the Ting website, as well as other network access services, including high speed Internet access, Internet hosting and network consulting services. Revenues are generated in the United States.


2.     Network Access - Other Services - This segment derives revenue from the provisioning of high speed Internet access, Internet hosting and consulting services.


3.     Domain Services – This segment includes wholesale and retail domain name registration services, value added services and portfolio services. The Company primarily earns revenues from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations; the sale of retail Internet domain name registration and email services to individuals and small businesses; and by making its portfolio of domain names available for sale or lease. Domain Services revenues are attributed to the country in which the contract originates, primarily Canada.


The Chief Executive Officer is the chief operating decision maker and regularly reviews the operations and performance by segment. The chief operating decision maker reviews gross profit as a key measure of performance for each segment and to make decisions about the allocation of resources. Sales and marketing expenses, technical operations and development expenses, general and administrative expenses, depreciation of property and equipment, amortization of intangibles assets, impairment of indefinite life intangible assets, loss on currency forward contracts, other income (expense), and provision for income taxes, are organized along functional lines and are not included in the measurement of segment profitability. Total assets and total liabilities are centrally managed and are not reviewed at the segment level by the chief operating decision maker. The Company follows the same accounting policies for the segments as those described in note 2 to these consolidated financial statements.


Information by reportable segments, which is regularly reported to the chief operating decision maker is as follows:


   

Network Access (1)

    

Domain Name

Services

    

Consolidated

Totals

  

Year ended December 31, 2015

  

 

Mobile Services

   

Other Services

                  
                                 

Net Revenues

   $ 58,889,922       3,288,711       110,760,866     $ 172,939,499  
                                 

Cost of revenues

                                

Cost of revenues

     32,615,416       1,627,438       78,847,116       113,089,970  

Network expenses

     495       605,556       4,858,726       5,464,777  

Depreciation of property and equipment

     -       447,646       697,343       1,144,989  

Amortization of intangible assets

     -       38,520       -       38,520  

Total cost of revenues

     32,615,911       2,719,160       84,403,185       119,738,256  

Gross Profit

     26,274,011       569,551       26,357,681       53,201,243  
                                 

Expenses:

                                

Sales and marketing

                             18,537,810  

Technical operations and development

                             4,502,845  

General and administrative

                             10,661,949  

Depreciation of property and equipment

                             259,307  

Amortization of intangible assets

                             224,206  

Impairment of indefinite life intangible assets

                             206,116  

Loss on currency forward contracts

                             792,900  

Income from operations

                             18,016,110  

Other expensees, net

                             (73,153 )

Income before provision for income taxes

                           $ 17,942,957  

(1)

 

Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services.

   

Network Access (1)

    

Domain Name

Services

    

Consolidated

Totals

  

Year ended December 31, 2014

  

 

Mobile Services

    

Other Services

                  
                                 

Net Revenues

   $ 35,887,005       -       111,780,102     $ 147,667,107  
                                 

Cost of revenues

                                

Cost of revenues

     21,870,780       -       79,990,222       101,861,002  

Network expenses

     -       -       4,554,635       4,554,635  

Depreciation of property and equipment

     -       -       699,670       699,670  

Amortization of intangible assets

     -       -       -       -  

Total cost of revenues

     21,870,780       -       85,244,527       107,115,307  

Gross Profit

     14,016,225       -       26,535,575       40,551,800  
                                 

Expenses:

                                

Sales and marketing

                             15,394,065  

Technical operations and development

                             4,305,715  

General and administrative

                             9,459,008  

Depreciation of property and equipment

                             226,432  

Amortization of intangible assets

                             596,620  

Impairment of indefinite life intangible assets

                             577,145  

Loss on currency forward contracts

                             357,760  

Income from operations

                             9,635,055  

Other expensees, net

                             (206,730 )

Income before provision for income taxes

                           $ 9,428,325  

 (1)

  

Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services.

   

Network Access (1)

    

Domain Name Services

    

Consolidated Totals

  

Year ended December 31, 2013

  

Mobile Services

    

Other Services

                  
                                 

Net Revenues

   $ 16,530,237       -       113,404,667     $ 129,934,904  
                                 

Cost of revenues

                                

Cost of revenues

     12,621,093       -       80,339,228       92,960,321  

Network expenses

     -       -       4,835,939       4,835,939  

Depreciation of property and equipment

     -       -       627,973       627,973  

Amortization of intangible assets

     -       -       83,790       83,790  

Total cost of revenues

     12,621,093       -       85,886,930       98,508,023  

Gross Profit

     3,909,144       -       27,517,737       31,426,881  
                                 

Expenses:

                                

Sales and marketing

                             12,141,036  

Technical operations and development

                             4,158,603  

General and administrative

                             7,523,906  

Depreciation of property and equipment

                             215,447  

Amortization of intangible assets

                             876,120  

Impairment of indefinite life intangible assets

                             -  

Loss on currency forward contracts

                             357,109  

Income from operations

                             6,154,660  

Other expensees, net

                             (354,857 )

Income before provision for income taxes

                           $ 5,799,803  

(1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services.

(b)           The following is a summary of the Company’s revenue earned from each significant revenue stream:


   

Year ended December 31,

  
   

2015

    

2014

    

2013

  
                         

Network Access Services:

                        

Mobile Services

     58,889,922       35,887,005       16,530,237  

Other Services

     3,288,711       -       -  

Total Network Access Services

     62,178,633       35,887,005       16,530,237  

 

                        

Domain Services:

                        

Wholesale

                        

Domain Services

   $ 84,982,007     $ 86,640,949     $ 87,294,173  

Value Added Services

     9,297,943       9,654,734       10,271,219  

Total Wholesale

     94,279,950       96,295,683       97,565,392  

 

                        

Retail

     12,341,013       10,417,746       8,360,035  

Portfolio

     4,139,903       5,066,673       7,479,240  

Total Domain Services

     110,760,866       111,780,102       113,404,667  
                         
    $ 172,939,499     $ 147,667,107     $ 129,934,904  

During the years ended December 31, 2015, 2014 and 2013, no customer accounted for more than 10% of total revenue. As at December 31, 2015, 2014 and 2013, no customers accounted for more than 10% of accounts receivable.


(c)           The following is a summary of the Company’s cost of revenues from each significant revenue stream:


   

Year ended December 31,

  
   

2015

    

2014

    

2013

  
                         

Network Access Services:

                        

Mobile Services

     32,615,415       21,870,780       12,621,093  

Other Services

     1,627,439       -       -  

Total Network Access Services

     34,242,854       21,870,780       12,621,093  
                         

Domain Services:

                        

Wholesale

                        

Domain Services

   $ 70,763,964     $ 72,353,061     $ 73,468,824  

Value Added Services

     1,892,867       2,211,085       2,115,167  

Total Wholesale

     72,656,831       74,564,146       75,583,991  
                         

Retail

     5,473,102       4,539,439       3,521,023  

Portfolio

     717,183       886,637       1,234,214  

Total Domain Services

     78,847,116       79,990,222       80,339,228  
                         

Network Expenses:

                        

Network, other costs

     5,464,777       4,554,635       4,835,939  

Network, depreciation and amortization costs

     1,183,509       699,670       711,763  
      6,648,286       5,254,305       5,547,702  
                         
    $ 119,738,256     $ 107,115,307     $ 98,508,023  

(d)           The following is a summary of the Company’s property and equipment by geographic region:


   

Year ended December 31,

  
   

2015

    

2014

  

Canada

   $ 1,225,236     $ 1,131,883  

United States

     5,847,666       379,891  

Germany

     53,774       98,013  
    $ 7,126,676     $ 1,609,787  

(e)           The following is a summary of the Company’s amortizable intangible assets by geographic region:


   

Year ended December 31,

  
   

2015

    

2014

  

United States

   $ 702,594     $ —  

Germany

     530,410       735,730  
    $ 1,233,004     $ 735,730  

(f)           The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region:


   

Year ended December 31,

  
   

2015

    

2014

  

Canada

   $ 7,621,092     $ 7,378,619  
    $ 7,621,092     $ 7,378,619  

(g)           Valuation and qualifying accounts:


   

Balance at

beginning year

    

Charged to

(recovered)

costs and

expenses

    

Write-offs

during year

    

Balance at

end of year

  

Allowance for doubtful accounts, excluding provision for credit notes

                                

2015

   $ 125,766     $ (3,671

)

   $ —     $ 122,095  

2014

   $ 91,226     $ 34,540     $ —     $ 125,766  

2013

   $ 73,970     $ 17,256     $ —     $ 91,226