10. 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. 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. Revenues are generated in the United States.

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 (gain) 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.

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

	Network Access (1)					Domain Name Services		Consolidated Totals

Three months ended September 30, 2016	Mobile Services		Other Services

Net Revenues	$	18,374,906		878,157			29,811,264	$	49,064,327

Cost of revenues
Cost of revenues		9,087,274		501,909			21,257,485		30,846,668
Network expenses		291,581		215,547			780,492		1,287,620
Depreciation of property and equipment		-		258,042			20,704		278,746
Amortization of intangible assets		-		13,421			-		13,421
Total cost of revenues		9,378,855		988,919			22,058,681		32,426,455
Gross Profit		8,996,051		(110,762	)		7,752,583		16,637,872

Expenses:
Sales and marketing									5,479,445
Technical operations and development									1,270,107
General and administrative									2,166,217
Depreciation of property and equipment									178,687
Amortization of intangible assets									279,126
Impairment of indefinite life intangible assets									2,866
Loss on currency forward contracts									22,475
Income from operations									7,238,949
Other income (expenses), net									(5,021	)
Income before provision for income taxes								$	7,233,928

(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
Three months ended September 30, 2015	Mobile Services		Other Services

Net Revenues	$	15,359,066		916,358		27,992,221	$	44,267,645

Cost of revenues
Cost of revenues		8,776,286		373,586		19,568,741		28,718,613
Network expenses		27,889		177,266		1,216,124		1,421,279
Depreciation of property and equipment		-		147,250		176,916		324,166
Amortization of intangible assets		-		11,532		-		11,532
Total cost of revenues		8,804,175		709,634		20,961,781		30,475,590
Gross Profit		6,554,891		206,724		7,030,440		13,792,055

Expenses:
Sales and marketing								4,517,666
Technical operations and development								1,101,581
General and administrative								2,607,917
Depreciation of property and equipment								63,790
Amortization of intangible assets								56,997
Impairment of indefinite life intangible assets								18,550
Loss on currency forward contracts								352,738
Income from operations								5,072,816
Other income (expensees), net								(78,959	)
Income before provision for income taxes							$	4,993,857

(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
Nine months ended September 30, 2016	Mobile Services		Other Services

Net Revenues	$	52,287,808		2,732,628		85,993,893	$	141,014,329

Cost of revenues
Cost of revenues		27,026,242		1,360,153		61,059,098		89,445,493
Network expenses		364,731		576,720		2,983,926		3,925,377
Depreciation of property and equipment		-		655,104		321,315		976,419
Amortization of intangible assets		-		36,485		-		36,485
Total cost of revenues		27,390,973		2,628,462		64,364,339		94,383,774
Gross Profit		24,896,835		104,166		21,629,554		46,630,555

Expenses:
Sales and marketing								15,174,619
Technical operations and development								3,445,118
General and administrative								7,497,752
Depreciation of property and equipment								328,877
Amortization of intangible assets								613,041
Impairment of indefinite life intangible assets								27,745
Loss on currency forward contracts								(96,993	)
Income from operations								19,640,396
Other income (expensees), net								85,919
Income before provision for income taxes							$	19,726,315

(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
Nine months ended September 30, 2015	Mobile Services		Other Services

Net Revenues	$	41,636,125		2,350,207		82,998,789	$	126,985,121

Cost of revenues
Cost of revenues		23,902,466		1,068,013		58,796,993		83,767,472
Network expenses		66,057		437,856		3,634,300		4,138,213
Depreciation of property and equipment		-		281,061		522,676		803,737
Amortization of intangible assets		-		26,988		-		26,988
Total cost of revenues		23,968,523		1,813,918		62,953,969		88,736,410
Gross Profit		17,667,602		536,289		20,044,820		38,248,711

Expenses:
Sales and marketing								12,548,415
Technical operations and development								3,405,052
General and administrative								7,826,405
Depreciation of property and equipment								185,074
Amortization of intangible assets								167,209
Impairment of indefinite life intangible assets								68,848
Loss on currency forward contracts								681,988
Income from operations								13,365,720
Other income (expensees), net								(161,136	)
Income before provision for income taxes							$	13,204,584

(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:

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015

Network Access Services:
Mobile Services	$	18,374,906	$	15,359,066	$	52,287,808	$	41,636,125
Other Services		878,157		916,358		2,732,628		2,350,207
Total Network Access Services		19,253,063		16,275,424		55,020,436		43,986,332

Domain Services:
Wholesale
Domain Services		22,955,731		21,124,406		65,879,375		63,582,585
Value Added Services		2,226,977		2,399,638		6,834,086		6,995,528
Total Wholesale		25,182,708		23,524,044		72,713,461		70,578,113

Retail		3,721,032		3,220,335		10,747,456		9,278,472
Portfolio		907,524		1,247,842		2,532,976		3,142,204
Total Domain Services		29,811,264		27,992,221		85,993,893		82,998,789

	$	49,064,327	$	44,267,645	$	141,014,329	$	126,985,121

During the three and nine months ended September 30, 2016 and 2015, no customer accounted for more than 10% of total revenue. As at September 30, 2016 and 2015, no customer accounted for more than 10% of accounts receivable.

	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016		2015

Network Access Services:
Mobile Services	$	9,087,274	$	8,776,286	$	27,026,242	$	23,902,466
Other Services		501,909		373,586		1,360,153		1,068,013
Total Network Access Services		9,589,183		9,149,872		28,386,395		24,970,479

Domain Services:
Wholesale
Domain Services		18,934,555		17,482,420		54,215,215		52,773,403
Value Added Services		463,369		487,428		1,401,821		1,525,181
Total Wholesale		19,397,924		17,969,848		55,617,036		54,298,584

Retail		1,727,867		1,430,418		4,968,659		3,984,320
Portfolio		131,694		168,475		473,403		514,089
Total Domain Services		21,257,485		19,568,741		61,059,098		58,796,993

Network Expenses:
Network, other costs		1,287,620		1,421,279		3,925,377		4,138,213
Network, depreciation and amortization costs		292,167		335,698		1,012,904		830,725
		1,579,787		1,756,977		4,938,281		4,968,938

	$	32,426,455	$	30,475,590	$	94,383,774	$	88,736,410

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

	September 30, 2016		December 31, 2015

Canada	$	974,619	$	1,225,236
United States		8,592,697		5,847,666
Germany		49,831		53,774
	$	9,617,147	$	7,126,676

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

	September 30, 2016		December 31, 2015

Canada	$	5,881,032	$	-
United States		650,997		702,594
Germany		376,420		530,410
	$	6,908,449	$	1,233,004

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

	September 30, 2016		December 31, 2015

Canada	$	5,355,575	$	7,621,092
	$	5,355,575	$	7,621,092

(g) Valuation and qualifying accounts:

Allowance for doubtful accounts exclusding provision for credit notes	Balance at beginning of period		Charged to (recovered) costs and expenses			Write-offs during period		Balance at end of period

Nine months ended September 30, 2016	$	122,095	$	26,076		$	-	$	148,171
Year ended December 31, 2015	$	125,766	$	(3,671	)	$	-	$	122,095