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Note 5 - Property and Equipment

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

5. Property and Equipment

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

		September 30,				December 31,
		2025				2024
Computer equipment		$	47,785			$	53,907
Computer software			1,935				1,935
Capitalized internal use software			58,499				50,706
Furniture and equipment			1,893				1,893
Vehicles and tools			8,866				10,638
Fiber network			270,102				272,959
Customer equipment and installations			61,914				58,883
Land			1,109				1,109
Buildings			9,314				9,208
Assets under construction			10,917				25,810
Leasehold improvements			748				743
			473,083				487,791
Less:
Accumulated depreciation			185,123				156,742
		$	287,960			$	331,049

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

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Depreciation of property and equipment

10,405

9,526

31,404

29,686

Impairment of Property and Equipment

During the three and nine months ended September 30, 2025, the Company recognized a total impairment expense of $10.9 million and $11.5 million, respectively.

In the third quarter of 2025, management completed a review of remaining construction assets following the implementation of the 2024 Capital Efficiency Plan (as discussed and defined in Note 20 - “Restructuring Costs”). As part of this review, certain assets were determined to no longer be usable or recoverable in ongoing operations or future network builds. Management concluded that these assets met the definition of ‘assets disposed of by abandonment’ under ASC 360-10.

As part of this assessment, management re-evaluated the estimated salvage values of the abandoned construction assets based on current market conditions and expected recoveries. This reassessment resulted in a reduction in estimated recoverable amounts, and a corresponding write-down was recorded to reflect the updated estimates as of September 30, 2025.

In total, $14.9 million of abandoned computer equipment and assets under construction were impaired, with an estimated salvage value of $4.9 million, resulting in a recorded impairment charge of $10.0 million for the three months and nine months ended September 30, 2025. This charge is recorded within “Impairment of property and equipment” in the Condensed Consolidated Statement of Operations and Comprehensive Loss. Additionally an impairment loss of $0.7 million was recognized related to ROU assets which is discussed under the Note 13 - “Leases”.

There were $0.8 million of impairment charges related to specific network assets that were identified through routine inspections as being damaged and no longer in use and are recorded under “Network, other costs” in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Asset Dispositions

During the third quarter of 2025, the Company sold property and equipment and intangibles for total consideration of $8.5 million, comprising cash proceeds and a $0.4 million indemnification holdback. The net book value of the assets at the time of the sales was $4.4 million, resulting in a gain of $4.0 million, which is included in "Gain on disposition of property and equipment" in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

During the nine months ended September 30, 2025, the Company sold property and equipment and intangibles for gross proceeds of $20.8 million, comprising cash proceeds and a $1.0 million indemnification holdback. The net book value of the assets at the time of the sales was $15.0 million, resulting in a gain of $5.8 million, which is included in "Gain on disposition of property and equipment" in the Condensed Consolidated Statements of Operations and Comprehensive Loss.