Goodwill and Other Intangible Assets:

Goodwill

Goodwill represents the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed in our acquisitions.

The Company's Goodwill balance is

$90.1

million as of

March 31, 2018 (

December 31, 2017 –

$90.1

million). The Company's goodwill relates

98%

(

$87.9

million) to its Domain Services operating segment and

(

$2.2

million) to its Network Access Services operating segment.

Goodwill is

not

amortized, but is subject to an annual impairment test, or more frequently if impairment indicators are present.

Other Intangible Assets:

Intangible assets consist of acquired brand, technology, customer relationships, surname domain names, direct navigation domain names and network rights. The Company considers its intangible assets consisting of surname domain names and direct navigation domain names as indefinite life intangible assets. The Company has the exclusive right to these domain names as long as the annual renewal fees are paid to the applicable registry. Renewals occur routinely and at a nominal cost. The indefinite life intangible assets are

not

amortized but are subject to impairment assessments performed throughout the year. As part of the normal renewal evaluation process during the periods ended

March 31, 2018

and

March 31, 2017,

the Company assessed that certain domain names that were originally acquired in the

June 2006

acquisition of Mailbank.com Inc. that were up for renewal, should be renewed.

Intangible assets, comprising brand, technology, customer relationships and network rights are being amortized on a straight-line basis over periods of

four

fifteen

years.

A summary of acquired intangible assets for the

three

months ended

March 31, 2018

is as follows:

	Surname domain names			Direct navigation domain names			Brand			Customer relationships			Technology			Network rights			Total
Amortization period	indefinite life			indefinite life			7 years			4 - 7 years			2 years			15 years

Balances December 31, 2017	$	11,209,912		$	1,552,354		$	10,792,790		$	32,185,398		$	2,112,500		$	561,224		$	58,414,178

Acquisition of customer relationships		-			-			-			1,372			-			-			1,372
Additions to/(disposals from) domain portfolio, net		(4,543	)		(32,935	)		-			-			-			-			(37,478	)
Amortization expense		-			-			(450,510	)		(1,381,220	)		(487,500	)		(11,532	)		(2,330,762	)
Balances March 31, 2018	$	11,205,369		$	1,519,419		$	10,342,280		$	30,805,550		$	1,625,000		$	549,692		$	56,047,310

The following table shows the estimated amortization expense in future periods, assuming

further additions to acquired intangible assets are made:

	Year ending December 31,

Remainder of 2018	$	6,910,060
2019		7,334,660
2020		7,172,160
2021		7,172,160
2022		7,172,160
Thereafter		7,561,322

Total	$	43,322,522

As of

March 31, 2018,

the accumulated amortization for the definite life intangible assets was

$17.6

million.