. 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:

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.

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

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,

customer accounted for more than

10%

of total revenue. As at

December

31,

2017,

2016

and

2015

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