Tucows 2015 Annual Report Download - page 197

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Other Intangible Assets:
Intangible assets consist of acquired technology, brand, customer relationships, surname domain names, direct
navigation domain names and network rights. The Company treats 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 tests performed
throughout the year. During 2015, we assessed that certain of the domain names that were originally acquired in the June
2006 acquisition of Mailbank.com Inc. that were up for renewal, should not be renewed. During the year ended December
31, 2015, domain names, with a book value of $206,116, were not renewed and were recorded as an impairment of
indefinite life intangible assets. During the year ended December 31, 2014, domain names, with a book value of $577,145,
were not renewed and were recorded as an impairment of indefinite life intangible assets. No impairment was recorded on
indefinite-life intangible assets during the year ended December 31, 2013.
Intangible assets, comprising technology, brand, customer relationships and network rights related to the
acquisition of Boardtown Corporation in April 2004, the acquisition of the Hosted Messaging Business of Critical
Path, Inc. in January 2006, the acquisition of Mailbank.com Inc. in June 2006, the acquisition of Innerwise, Inc. in July
2007, the acquisition of EPAG Domainservices GmbH in August 2011 and the acquisition of Ting Virginia, LLC in
February 2015, are being amortized on a straight-line basis over periods of two to fifteen years.
Acquired intangible assets consist of the following:
Surname
domain
names
Direct
navigation
domain
names Brand
Customer
relationships
Network
rights Total
Amortization period
indefinite
life
indefinite
life 7 years 4 - 7 years 15 years
Balances, December 31,
2013 $ 12,096,712 $ 1,974,166 $ 224,650 $ 1,107,700 $ - $ 15,403,228
Additions to/(disposals
from) domain
portfolio, net (6,490) (20,388) - - - (26,878)
Impairment of
indefinite life
intangible assets (564,598) (12,547) - - - (577,145)
Amortization expense - - (114,140) (482,480) - (596,620)
Balance December 31,
2014 11,525,624 1,941,231 110,510 625,220 - 14,202,585
Additions to/(disposals
from) domain
portfolio, net (6,815) (17,251) - - - (24,066)
Impairment of
indefinite life
intangible assets (179,454) (26,662) - - - (206,116)
Amortization expense - - (30,840) (193,366) (38,520) (262,726)
Acquisition of Ting
Virginia, LLC (note 3) - - - 68,000 692,000 760,000
Balance December 31,
2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 $ 14,469,677
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