Tucows 2014 Annual Report Download - page 85
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We expect general and administrative expenses for Fiscal 2015, in absolute dollars, to increase when compared
to Fiscal 2014 largely to support the growth of our business.
DEPRECIATION OF PROPERTY AND EQUIPMENT
Property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets.
Year ended December 31,
2014 2013
Depreciation of property and equipment $ 226,432 $ 215,447
Increase over prior period $ 10,985
Increase - percentage 5%
Percentage of net revenues 0%0%
Depreciation costs for Fiscal 2014 remained essentially flat at $0.2 million.
AMORTIZATION OF INTANGIBLE ASSETS
Year ended December 31,
2014 2013
Amortization of intangible assets $ 596,620 $ 876,120
Decrease over prior period $ (279,500)
Decrease - percentage (32)%
Percentage of net revenues 0%1%
Amortization of intangible assets consists of amounts arising in connection with the acquisition of Innerwise,
Inc. in July 2007 and the acquisition of EPAG in August 2011.
The brand and customer relationships acquired in connection with the acquisitions of Innerwise Inc. and EPAG
are being amortized on a straight-line basis over seven years.
Technology acquired in connection with the acquisition of EPAG is amortized on a straight-line basis over two
years.
IMPAIRMENT OF INDEFINITE LIFE INTANGIBLE ASSETS
Year ended December 31,
2014 2013
Impairment of indefinite life intangible assets $ 577,145 $ -
Increase over prior period $ 577,145
As part of our normal renewal process during Fiscal 2014, we assessed that certain domain names acquired in
the June 2006 acquisition of Mailbank.com Inc. should not be renewed and were allowed to expire. Accordingly, these
domain names, with a book value of $0.6 million, have been written off and recorded as impairment of indefinite life
intangible assets during Fiscal 2014. No impairment was recorded on indefinite-life intangible assets during Fiscal 2013.
LOSS (GAIN) ON CURRENCY FORWARD CONTRACTS
Although our functional currency is the U.S. dollar, a major portion of our fixed expenses are incurred in
Canadian dollars. Our goal with regard to foreign currency exposure is, to the extent possible; to achieve operational cost
certainty, manage financial exposure to certain foreign exchange fluctuations and to neutralize some of the impact of
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