Tucows 2015 Annual Report Download - page 106

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GENERAL AND ADMINISTRATIVE
General and administrative expenses consist primarily of compensation and related costs for managerial and
administrative personnel, fees for professional services, public listing expenses, rent, foreign exchange and other general
corporate expenses.
Year ended December 31,
2014 2013
General and administrative $ 9,459,008 $ 7,523,906
Increase over prior period $ 1,935,102
Increase - percentage 26%
Percentage of net revenues 6% 6%
General and administrative expenses for Fiscal 2014 increased by $1.9 million, or 26%, to $9.5 million as
compared to Fiscal 2013. This increase was primarily the result of $1.0 million in increased credit card processing fees and
bad debts, largely related to the growth of Ting and $0.6 million in increased professional fees as compared to Fiscal 2013.
The professional fee increase included additional SOX compliance work that we have undertaken for the first time as well
as pre-acquisition due diligence and other costs of $0.1 million that related to a potential acquisition that was abandoned
once we determined that its completion was not probable, as well as increased losses in foreign exchange contracts of $0.2
million when compared to Fiscal 2013.
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
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