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Note 6 - Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2021
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. 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 $116.3 million as of September 30, 2021 and $116.3 million as of December 31, 2020. The Company's goodwill relates 7% ($8.6 million) to its Fiber Internet Services operating segment, nil to its Mobile Services operating segment and 93% ($107.7 million) to its Domain Services operating segment. Goodwill is not amortized, but is subject to an annual impairment test, or more frequently if impairment indicators are present. No impairment was recognized during the three and nine months ended September 30, 2021 and 2020. 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 September 30, 2021 and September 30, 2020, the Company assessed that all 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 two to fifteen years. Net book value of 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, June 30, 2021 |  | $ | 11,156 |  |  | $ | 1,135 |  |  | $ | 5,986 |  |  | $ | 23,273 |  |  | $ | - |  |  | $ | 1,145 |  |  | $ | 42,695 |
Acquisition of customer relationships |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | 6 |
Amortization expense |  |  | - |  |  |  | - |  |  |  | (518 | ) |  |  | (1,749 | ) |  |  | - |  |  |  | (21 | ) |  |  | (2,288 | )
Balances, September 30, 2021 |  | $ | 11,156 |  |  | $ | 1,135 |  |  | $ | 5,468 |  |  | $ | 21,530 |  |  | $ | - |  |  | $ | 1,124 |  |  | $ | 40,413 |
|  | 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, 2020 |  | $ | 11,157 |  |  | $ | 1,135 |  |  | $ | 7,021 |  |  | $ | 26,664 |  |  | $ | 274 |  |  | $ | 1,193 |  |  | $ | 47,444 |
Acquisition of customer relationships |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 221 |  |  |  | - |  |  |  | - |  |  |  | 221 |
Acquisition of network rights |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2 |  |  |  | 2 |
Additions to/(disposals from) domain portfolio, net |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (1,553 | ) |  |  | (5,355 | ) |  |  | (274 | ) |  |  | (71 | ) |  |  | (7,253 | )
Balances, September 30, 2021 |  | $ | 11,156 |  |  | $ | 1,135 |  |  | $ | 5,468 |  |  | $ | 21,530 |  |  | $ | - |  |  | $ | 1,124 |  |  | $ | 40,413 |
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, |
Remainder of 2021 |  | $ | 2,343 |
2022 |  |  | 9,377 |
2023 |  |  | 8,684 |
2024 |  |  | 3,227 |
2025 |  |  | 2,587 |
Thereafter |  |  | 1,904 |
Total |  | $ | 28,122 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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