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Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2023
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. Goodwill consists of the following (Dollar amounts in thousands of U.S. dollars):
|  | Ting |  |  | Wavelo |  |  | Tucows Domains |  |  | Total |
Balances, December 31, 2022 |  | $ | 22,724 |  |  | $ | - |  |  | $ | 107,686 |  |  | $ | 130,410 |
Balances, December 31, 2023 |  | $ | 22,724 |  |  | $ | - |  |  | $ | 107,686 |  |  | $ | 130,410 |
The Company's Goodwill balance is $130.4 million as of December 31, 2023 and $130.4 million as of December 31, 2022. The Company's goodwill relates 83% ($107.7 million) to its Tucows Domains operating segment and 17% ($22.7 million) to its Ting 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(h) – Significant Accounting Policies” and there were no indications of impairment for Fiscal 2023 and Fiscal 2022. 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. During Fiscal 2023, we assessed whether the specific domain names acquired through the acquisition of Mailbank.com Inc. in June 2006, which were due for renewal should not be renewed. Upon review, the Company decided to renew these domain names. During the years ended December 31, 2023, December 31, 2022, and December 31, 2021, no impairment of indefinite life intangible assets was recorded. Finite-life 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. Throughout 2023, the Company purchased $0.5 million in customer relationship assets through hosting agreements whereby customer assets and domain names were obtained. These customer assets are being amortized over seven years. Acquired intangible assets consist of the following (Dollar amounts in thousands of U.S. dollars):
|  | December 31, 2023 |  |  | December 31, 2022 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Total Net Book Value |  |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Total Net Book Value |
Brand |  | $ | 15,764 |  |  | $ | 14,894 |  |  | $ | 870 |  |  | $ | 15,764 |  |  | $ | 12,824 |  |  | $ | 2,940 |
Customer relationships |  |  | 65,892 |  |  |  | 52,589 |  |  |  | 13,303 |  |  |  | 65,463 |  |  |  | 44,650 |  |  |  | 20,813 |
Technology |  |  | 10,157 |  |  |  | 8,009 |  |  |  | 2,148 |  |  |  | 10,157 |  |  |  | 7,387 |  |  |  | 2,770 |
Network Rights |  |  | 1,515 |  |  |  | 631 |  |  |  | 884 |  |  |  | 1,515 |  |  |  | 532 |  |  |  | 983 |
Surname domain names |  |  | 11,151 |  |  |  | - |  |  |  | 11,151 |  |  |  | 11,155 |  |  |  | - |  |  |  | 11,155 |
Direct navigation domain names |  |  | 1,128 |  |  |  | - |  |  |  | 1,128 |  |  |  | 1,129 |  |  |  | - |  |  |  | 1,129 |
|  | $ | 105,607 |  |  | $ | 76,123 |  |  | $ | 29,484 |  |  | $ | 105,183 |  |  | $ | 65,393 |  |  | $ | 39,790 |
|  | 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, 2021 |  | $ | 11,156 |  |  | $ | 1,135 |  |  | $ | 5,010 |  |  | $ | 28,634 |  |  | $ | 3,392 |  |  | $ | 1,082 |  |  | $ | 50,409 |
Acquisition of customer relationship |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 782 |  |  |  | - |  |  |  | - |  |  |  | 782 |
Additions to/(disposals from) domain portfolio, net |  |  | (1 | ) |  |  | (6 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (7 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (2,070 | ) |  |  | (8,603 | ) |  |  | (622 | ) |  |  | (99 | ) |  |  | (11,394 | )
Balances December 31, 2022 |  | $ | 11,155 |  |  | $ | 1,129 |  |  | $ | 2,940 |  |  | $ | 20,813 |  |  | $ | 2,770 |  |  | $ | 983 |  |  | $ | 39,790 |
Acquisition of customer relationship |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 528 |  |  |  | - |  |  |  | - |  |  |  | 528 |
Additions to/(disposals from) domain portfolio, net |  |  | (4 | ) |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (5 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (2,070 | ) |  |  | (8,038 | ) |  |  | (622 | ) |  |  | (99 | ) |  |  | (10,829 | )
Balances December 31, 2023 |  | $ | 11,151 |  |  | $ | 1,128 |  |  | $ | 870 |  |  | $ | 13,303 |  |  | $ | 2,148 |  |  | $ | 884 |  |  | $ | 29,484 |
The following table shows the estimated amortization expense for each of the next 5 years and thereafter, assuming no further additions to acquired intangible assets are made (Dollar amounts in thousands of U.S. dollars):
|  | Year ending |
|  | December 31, |
2024 |  | $ | 5,582 |
2025 |  |  | 4,550 |
2026 |  |  | 2,703 |
2027 |  |  | 2,159 |
2028 |  |  | 2,159 |
Thereafter |  |  | 52 |
Total |  | $ | 17,205 |

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