XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Note 5 - Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Mar. 31, 2024
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 remained consistent at $130.4 million as of March 31, 2024 and December 31, 2023. The Company's goodwill relates 83% ($107.7 million) to the Tucows Domains operating segment and 17% ($22.7 million) to the Ting operating segment. Goodwill is not amortized, but is subject to an annual impairment test, or more frequently if impairment indicators are present. No impairment charge was recognized during the three months ended March 31, 2024 and 2023. 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, 2024 and March 31, 2023, 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. For the three months ended March 31, 2024 the Company acquired customer relationship assets through hosting agreements for $0.1 million. These assets are being amortized over seven 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, December 31, 2023 |  | $ | 11,151 |  |  | $ | 1,128 |  |  | $ | 870 |  |  | $ | 13,303 |  |  | $ | 2,148 |  |  | $ | 884 |  |  | $ | 29,484 |
Acquisition of customer relationships |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 96 |  |  |  | - |  |  |  | - |  |  |  | 96 |
Additions to/(disposals from) domain portfolio, net |  |  | (2 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2 | )
Amortization expense |  |  | - |  |  |  | - |  |  |  | (222 | ) |  |  | (1,277 | ) |  |  | (155 | ) |  |  | (25 | ) |  |  | (1,679 | )
Balances, March 31, 2024 |  | $ | 11,149 |  |  | $ | 1,128 |  |  | $ | 648 |  |  | $ | 12,122 |  |  | $ | 1,993 |  |  | $ | 859 |  |  | $ | 27,899 |
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, |
Remainder of 2024 |  | $ | 5,418 |
2025 |  |  | 4,094 |
2026 |  |  | 2,122 |
2027 |  |  | 1,634 |
2028 |  |  | 1,092 |
Thereafter |  |  | 1,262 |
Total |  | $ | 15,622 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration