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Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. 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 $109.8 million as of December 31, 2019 and $90.1 million as of December 31, 2018 . The Company's goodwill relates 98% ( $107.7 million) to its Domain Services operating segment and 2% ( $2.1 million) to its Network Access Services operating segment. Goodwill is not amortized, but is subject to an annual impairment test. The Company performed an impairment analysis as outlined in “Note 2 (g) – Significant Accounting Policies” and there were no indications of impairment for Fiscal 2019 and Fiscal 2018 . 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 ap plica ble 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. During Fiscal 2019 , we assessed that certain domain names that were originally acquired in the June 2006 acquisition of Mailbank.com Inc. that were up for renewal, should not be renewed. During the years ended December 31, 2019 and December 31, 2018, domain names with a book value of $ nil , were not renewed and were recorded as an impairment of indefinite life intangible assets. During the year ended December 31, 2017 domain names, with a book value of $0.1 million, were not renewed and were recorded as impairments of indefinite life intangible assets. Intangible assets, comprising brand, technology, customer relationships and network rights are being amortized on a straight-line basis over periods of two to fifteen years. On November 16, 2018, the Company acquired the right from The People’s Operator USA, LLC (“TPO”) to mass migrate TPO MVNO customers based in the United States, for consideration of $0.4 million. These assets have been assigned to Customer Relationships and are being amortized over 3 years. In the third quarter of 2019, the Company acquired the mobile customer base of FreedomPop and Unreal Mobile brands from STS Media Inc., operating on the Sprint network. The migration of these customers occurred over a 60 -day period, ending in September 2019 with subscribers having the option to accept the Ting offering or cancel or port their service elsewhere. The final purchase price was $3.5 million. These assets have been assigned to Customer Relationships and are being amortized over 3 years. Acquired intangible assets consist of the following (Dollar amounts in thousands of U.S. dollars):
|  | Surname domain names |  |  | Direct navigation domain names |  |  | Brand |  |  | Customer relationships |  |  | Technology |  |  | Network rights |  |  | Total |
Amortization period |  | indefinite life |  |  | indefinite life |  |  | 7 years |  |  | 3 - 7 years |  |  | 2 - 7 years |  |  | 15 years |  |  |  |  |
Balances, December 31, 2017 |  | $ | 11,257 |  |  | $ | 1,505 |  |  | $ | 10,793 |  |  | $ | 32,185 |  |  | $ | 2,113 |  |  | $ | 561 |  |  | $ | 58,414 |
Acquisition of customer relationships |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 565 |  |  |  | - |  |  |  | - |  |  |  | 565 |
Additions to/(disposals from) domain portfolio, net |  |  | (81 | ) |  |  | (260 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (341 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (1,789 | ) |  |  | (5,458 | ) |  |  | (1,950 | ) |  |  | (46 | ) |  |  | (9,243 | )
Balances December 31, 2018 |  | $ | 11,176 |  |  | $ | 1,245 |  |  | $ | 9,004 |  |  | $ | 27,292 |  |  | $ | 163 |  |  | $ | 515 |  |  |  | 49,395 |
Ascio Technologies Inc. acquisition |  |  | - |  |  |  | - |  |  |  | 2,090 |  |  |  | 10,610 |  |  |  | 2,440 |  |  |  | - |  |  |  | 15,140 |
FreedomPop acquisition |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,475 |  |  |  | - |  |  |  | - |  |  |  | 3,475 |
Acquisition of customer relationships |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 91 |  |  |  | - |  |  |  | - |  |  |  | 91 |
Additions to/(disposals from) domain portfolio, net |  |  | (12 | ) |  |  | (102 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (114 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (2,003 | ) |  |  | (7,197 | ) |  |  | (1,087 | ) |  |  | (46 | ) |  |  | (10,333 | )
Balances December 31, 2019 |  | $ | 11,164 |  |  | $ | 1,143 |  |  | $ | 9,091 |  |  | $ | 34,271 |  |  | $ | 1,516 |  |  | $ | 469 |  |  | $ | 57,654 |
The following table shows the estimated amortization expense for each of the next 5 years, assuming no further additions to acquired intangible assets are made (Dollar amounts in thousands of U.S. dollars):
|  | Year ending |
|  | December 31, |
2020 |  | $ | 9,416 |
2021 |  |  | 10,455 |
2022 |  |  | 10,455 |
2023 |  |  | 9,386 |
2024 |  |  | 2,796 |
Thereafter |  |  | 2,839 |
Total |  | $ | 45,347 |

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