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Note 16 - Segment Reporting | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 1 6 . Segment Reporting: (a) We are organized and managed based on two 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 Services - This segment derives revenue from the sale of mobile phones, telephony services high speed Internet access, Internet hosting and consulting services to individuals and small businesses primarily through the Ting website. Revenues are generated in the United States. 2. 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 |  |  | Domain Name Service s |  |  | Consolidated Total s |
Year ended December 31, 201 7 |  |  |  |  |  |  |  |  |  |  |  |
Net Revenue s |  | $ | 88,710,902 |  |  | $ | 240,709,839 |  |  | $ | 329,420,741 |
Cost of revenue s |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue s |  |  | 48,706,531 |  |  |  | 181,893,101 |  |  |  | 230,599,632 |
Network expense s |  |  | 1,861,319 |  |  |  | 7,463,135 |  |  |  | 9,324,454 |
Depreciation of property and equipmen t |  |  | 2,202,052 |  |  |  | 940,346 |  |  |  | 3,142,398 |
Amortization of intangible asset s |  |  | 46,128 |  |  |  | 1,787,500 |  |  |  | 1,833,628 |
Total cost of revenue s |  |  | 52,816,030 |  |  |  | 192,084,082 |  |  |  | 244,900,112 |
Gross Profi t |  |  | 35,894,872 |  |  |  | 48,625,757 |  |  |  | 84,520,629 |
Expenses : |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketin g |  |  |  |  |  |  |  |  |  |  | 29,422,984 |
Technical operations and developmen t |  |  |  |  |  |  |  |  |  |  | 7,257,720 |
General and administrativ e |  |  |  |  |  |  |  |  |  |  | 13,593,901 |
Depreciation of property and equipmen t |  |  |  |  |  |  |  |  |  |  | 585,424 |
Amortization of intangible asset s |  |  |  |  |  |  |  |  |  |  | 6,566,308 |
Impairment of indefinite life intangible asset s |  |  |  |  |  |  |  |  |  |  | 111,251 |
Loss (gain) on currency forward contract s |  |  |  |  |  |  |  |  |  |  | (98,227 | )
Income from operation s |  |  |  |  |  |  |  |  |  |  | 27,081,268 |
Other income (expenses), ne t |  |  |  |  |  |  |  |  |  |  | (3,006,500 | )
Income before provision for income taxe s |  |  |  |  |  |  |  |  |  | $ | 24,074,768 |
|  | Network Access |  |  | Domain Name Service s |  |  | Consolidated Total s |
Year ended December 31, 201 6 |  |  |  |  |  |  |  |  |  |  |  |
Net Revenue s |  | $ | 73,778,951 |  |  | $ | 116,039,981 |  |  | $ | 189,818,932 |
Cost of revenue s |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenue s |  |  | 37,939,683 |  |  |  | 82,247,279 |  |  |  | 120,186,962 |
Network expense s |  |  | 1,398,899 |  |  |  | 3,811,601 |  |  |  | 5,210,500 |
Depreciation of property and equipmen t |  |  | 977,395 |  |  |  | 342,424 |  |  |  | 1,319,819 |
Amortization of intangible asset s |  |  | 48,017 |  |  |  | - |  |  |  | 48,017 |
Total cost of revenue s |  |  | 40,363,994 |  |  |  | 86,401,304 |  |  |  | 126,765,298 |
Gross Profi t |  |  | 33,414,957 |  |  |  | 29,638,677 |  |  |  | 63,053,634 |
Expenses : |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketin g |  |  |  |  |  |  |  |  |  |  | 20,754,752 |
Technical operations and developmen t |  |  |  |  |  |  |  |  |  |  | 4,494,819 |
General and administrativ e |  |  |  |  |  |  |  |  |  |  | 11,404,793 |
Depreciation of property and equipmen t |  |  |  |  |  |  |  |  |  |  | 503,864 |
Amortization of intangible asset s |  |  |  |  |  |  |  |  |  |  | 905,157 |
Impairment of indefinite life intangible asset s |  |  |  |  |  |  |  |  |  |  | 42,673 |
Loss (gain) on currency forward contract s |  |  |  |  |  |  |  |  |  |  | (98,977 | )
Income from operation s |  |  |  |  |  |  |  |  |  |  | 25,046,553 |
Other income (expenses), ne t |  |  |  |  |  |  |  |  |  |  | 66,371 |
Income before provision for income taxe s |  |  |  |  |  |  |  |  |  | $ | 25,112,924 |
|  | Network Access |  |  | Domain Name Services |  |  | Consolidated Totals |
Year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |
Net Revenues |  | $ | 60,974,265 |  |  | $ | 110,712,514 |  |  | $ | 171,686,779 |
Cost of revenues |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues |  |  | 34,133,569 |  |  |  | 78,847,116 |  |  |  | 112,980,685 |
Network expenses |  |  | 698,960 |  |  |  | 4,765,817 |  |  |  | 5,464,777 |
Depreciation of property and equipment |  |  | 447,644 |  |  |  | 697,344 |  |  |  | 1,144,988 |
Amortization of intangible assets |  |  | 38,520 |  |  |  | - |  |  |  | 38,520 |
Total cost of revenues |  |  | 35,318,693 |  |  |  | 84,310,277 |  |  |  | 119,628,970 |
Gross Profit |  |  | 25,655,572 |  |  |  | 26,402,237 |  |  |  | 52,057,809 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  |  |  |  |  |  |  |  |  | 17,394,376 |
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 income (expenses), net |  |  |  |  |  |  |  |  |  |  | (73,153 | )
Income before provision for income taxes |  |  |  |  |  |  |  |  |  | $ | 17,942,957 |
(b) The following is a summary of the Company’s revenue earned from each significant revenue stream:
|  | Year ended December 31, |
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
Network Access Services: |  |  |  |  |  |  |  |  |  |  |  |
Mobile Services |  | $ | 83,885,054 |  |  | $ | 70,127,294 |  |  | $ | 57,685,554 |
Other Services |  |  | 4,825,848 |  |  |  | 3,651,657 |  |  |  | 3,288,711 |
Total Network Access Services |  |  | 88,710,902 |  |  |  | 73,778,951 |  |  |  | 60,974,265 |
Domain Services: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  |  |  |  |  |  |  |  |  |  |  |
Domain Services |  |  | 183,731,385 |  |  |  | 89,009,546 |  |  |  | 84,934,519 |
Value Added Services |  |  | 18,572,774 |  |  |  | 9,169,721 |  |  |  | 9,298,978 |
Total Wholesale |  |  | 202,304,159 |  |  |  | 98,179,267 |  |  |  | 94,233,497 |
Retail |  |  | 31,649,000 |  |  |  | 14,629,949 |  |  |  | 12,637,498 |
Portfolio |  |  | 6,756,680 |  |  |  | 3,230,765 |  |  |  | 3,841,519 |
Total Domain Services |  |  | 240,709,839 |  |  |  | 116,039,981 |  |  |  | 110,712,514 |
|  | $ | 329,420,741 |  |  | $ | 189,818,932 |  |  | $ | 171,686,779 |
During the years ended December 31, 2017, 2016 and 2015, no customer accounted for more than 10% of total revenue. As at December 31, 2017, 2016 and 2015 no customers accounted for more than 10% of accounts receivable. Transactions with the Company ’s equity investees generated revenue of approximately $4.9 million for the year ended December 31, 2017. (c) The following is a summary of the Company’s cost of revenues from each significant revenue stream:
|  | Year ended December 31, |
|  | 201 7 |  |  | 201 6 |  |  | 201 5 |
Network Access Services: |  |  |  |  |  |  |  |  |  |  |  |
Mobile Services |  | $ | 45,335,276 |  |  | $ | 35,914,882 |  |  | $ | 32,615,416 |
Other Services |  |  | 3,371,255 |  |  |  | 2,024,801 |  |  |  | 1,518,153 |
Total Network Access Services |  |  | 48,706,531 |  |  |  | 37,939,683 |  |  |  | 34,133,569 |
Domain Services: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  |  |  |  |  |  |  |  |  |  |  |
Domain Services |  |  | 161,012,532 |  |  |  | 72,947,730 |  |  |  | 70,633,267 |
Value Added Services |  |  | 2,383,627 |  |  |  | 1,918,165 |  |  |  | 2,023,341 |
Total Wholesale |  |  | 163,396,159 |  |  |  | 74,865,895 |  |  |  | 72,656,608 |
Retail |  |  | 17,346,138 |  |  |  | 6,765,237 |  |  |  | 5,494,550 |
Portfolio |  |  | 1,150,804 |  |  |  | 616,147 |  |  |  | 695,958 |
Total Domain Services |  |  | 181,893,101 |  |  |  | 82,247,279 |  |  |  | 78,847,116 |
Network Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Network, other costs |  |  | 9,324,454 |  |  |  | 5,210,500 |  |  |  | 5,464,777 |
Network, depreciation and amortization costs |  |  | 4,976,026 |  |  |  | 1,367,836 |  |  |  | 1,183,508 |
|  |  | 14,300,480 |  |  |  | 6,578,336 |  |  |  | 6,648,285 |
|  | $ | 244,900,112 |  |  | $ | 126,765,298 |  |  | $ | 119,628,970 |
(d) The following is a summary of the Company’s property and equipment by geographic region:
|  | December 31, 201 7 |  |  | December 31, 201 6 |
Canad a |  | $ | 1,176,371 |  |  | $ | 1,010,427 |
United State s |  |  | 23,417,435 |  |  |  | 12,398,961 |
German y |  |  | 26,492 |  |  |  | 41,050 |
|  | $ | 24,620,298 |  |  | $ | 13,450,438 |
(e) The following is a summary of the Company’s amortizable intangible assets by geographic region:
|  | December 31, 201 7 |  |  | December 31, 201 6 |
Canad a |  | $ | 7,748,940 |  |  | $ | 5,850,596 |
United State s |  |  | 37,783,202 |  |  |  | 633,798 |
German y |  |  | 119,770 |  |  |  | 325,090 |
|  | $ | 45,651,912 |  |  | $ | 6,809,484 |
(f) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region:
|  | December 31, 201 7 |  |  | December 31, 201 6 |
Canada |  | $ | - |  |  | $ | 5,708,725 |
|  | $ | - |  |  | $ | 5,708,725 |
(g) Valuation and qualifying accounts:
Allowance for doubtful accounts excluding provision for credit note s |  | Balance at beginning of perio d |  |  | Charged to (recovered) costs and expense s |  |  | Write-offs during perio d |  |  | Balance at end of perio d |
Year ended December 31, 201 7 |  | $ | 164,145 |  |  | $ | 4,264 |  |  | $ | - |  |  | $ | 168,409 |
Year ended December 31, 201 6 |  | $ | 122,095 |  |  | $ | 42,050 |  |  | $ | - |  |  | $ | 164,145 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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