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Note 3 - Property and Equipment

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

3. Property and Equipment:

Property and equipment consist of the following (Dollar amounts in thousands of U.S. dollars):

		*December 31,*				*December 31,*
		*2024*				*2023*
Computer equipment		$	53,907			$	53,818
Computer software			1,935				1,926
Capitalized internal use software			50,706				38,379
Furniture and equipment			1,893				1,880
Vehicles and tools			10,638				10,594
Fiber network⁽¹⁾			272,959				215,205
Customer equipment and installations			58,883				48,041
Land			1,109				1,109
Buildings			9,208				9,118
Assets under construction			25,810				75,519
Leasehold improvements			743				727
			487,791				456,316
Less:
Accumulated depreciation			156,742				116,672
		$	331,049			$	339,644

(1) Fiber network is presented net of $1.6 million government grants (2023: nil), with an impact of $0.1 million on accumulated depreciation (2023: nil).

Depreciation of property and equipment (Dollar amounts in thousands of U.S. dollars):

		*Year Ended December 31,*				*Year Ended December 31,*				*Year Ended December 31,*
		*2024*				*2023*				*2022*
Depreciation of property and equipment		$	40,323			$	36,431			$	28,187

Impairment of Property and Equipment

During the year ended December 31, 2024, the Company recognized a total impairment expense of $19.1 million.

In the fourth quarter of 2024, the Board formally approved and the Company implemented the 2024 Capital Efficiency Plan, which included the decision to cease new market expansions in Ting (see note 21 – Restructuring Costs). As part of the 2024 Capital Efficiency plan, management conducted a review of Assets under construction, Computer equipment, Fiber network and Customer and equipment installation to determine if there were specific assets that would no longer contribute to future operations.

This review resulted in the identification of assets within Assets under construction and Computer equipment that are no longer intended for deployment in the Company's fiber network expansion. These assets relate to specific work zones under construction, related capitalized design costs, and materials held for construction (“the impaired construction assets”). Prior to the 2024 Capital Efficiency Plan, the impaired construction assets were planned for future deployment in the operations of the Company's Ting reportable segment.

The impaired construction assets were deemed to be abandoned in accordance with ASC 360-10 and recorded at their salvage value, and the impairment charge was recognized immediately. In total, $33.6 million in assets were impaired, with an estimated salvage value of $15.9 million, resulting in a recorded impairment charge of $17.7 million. This charge is recorded under “Impairment of property and equipment” in the consolidated statements of comprehensive income (loss).

The remaining $1.4 million impairment charges relate to specific network assets that were identified through routine inspections as being damaged and no longer in use and are recorded under “Network, impairment of property and equipment” in the consolidated statements of comprehensive Income (loss).

During the years ended December 31, 2023, and 2022 property and equipment with net book values of $4.8 million, and $0.1 million, respectively, were written off and included in network, impairment of property and equipment in the consolidated statement of comprehensive income (loss). The impairment losses incurred in 2023 related to specific network assets that were identified as being damaged and no longer in use. The full cost of the identified assets was recorded as an impairment loss.