Revenue from Contract with Customer [Text Block] | 11. Significant accounting policy The Company’s revenues are derived from (a) the provisioning of mobile and fiber Internet services; and from (b) domain name registration contracts, other domain related value-added services, domain sale contracts, and other advertising revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. All products are generally sold without the right of return or refund. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third Nature of goods and services The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, see Note 14 (a) Network Access Services The Company generates Network Access Services revenues primarily through the provisioning of mobile services, Ting Mobile. Other sources of revenue include the provisioning of fixed high-speed Internet access, Ting Internet, as well as billing solutions to Internet Service Providers (“ISPs”). Ting Mobile wireless usage contracts grant customers access to standard talk, text and data mobile services. Ting Mobile contracts are billed based on the actual amount of monthly services utilized by each customer during their billing cycle and charged to customers on a postpaid basis. Voice minutes, text messages and megabytes of data are each billed separately based on a tiered pricing program. The Company recognizes revenue for Ting Mobile usage based on the actual amount of monthly services utilized by each customer. Ting Internet contracts provide customers Internet access at their home or business through the installation and use of our fiber optic network. Ting Internet contracts are generally prepaid and grant customers with unlimited bandwidth based on a fixed price per month basis. Because consideration is collected before the service period, revenue is initially deferred and recognized as the Company performs its obligation to provide Internet access. Though the Company does not Both Ting Mobile and Ting Internet access services are primarily contracted through the Ting website, for one no not Our Roam Mobility brands also offers standard talk, text and data mobile services. Roam customers prepay for their usage through the Roam Mobility website. When prepayments are received the amount is deferred, and subsequently recognized as the Company satisfies its obligation to provide mobile services. In addition, revenues associated with the sale of SIM cards are recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. In those cases, where payment is not not (b) Domain Services Domain registration contracts, which can be purchased for terms of one ten Domain related value-added services like digital certifications, WHOIS privacy, website hosting and hosted email provide our resellers and retail registrant customers with tools and additional functionality to be used in conjunction with domain registrations. All domain related value-added services are considered distinct performance obligations which transfer the promised service to the customer over the contracted term. Fees charged to customers for domain related value-added services are collected at the inception of the contract, and revenue is recognized on a straight-line basis over the contracted term, consistent with the satisfaction of the performance obligations. The Company is an ICANN accredited registrar. Thus, the Company is the primary obligor with our reseller and retail registrant customers and is responsible for the fulfillment of our registrar services to those parties. As a result, the Company reports revenue in the amount of the fees we receive directly from our reseller and retail registrant customers. Our reseller customers maintain the primary obligor relationship with their retail customers, establish pricing and retain credit risk to those customers. Accordingly, the Company does not The Company also sells the rights to the Company’s portfolio domains or names acquired through the Company’s domain expiry stream. Revenue generated from sale of domain name contracts, containing a distinct performance obligation to transfer the domain name rights under the Company’s control, is generally recognized once the rights have been transferred and payment has been received in full. Advertising revenue is derived through domain parking monetization, whereby the Company contracts with third no Disaggregation of Revenue The following is a summary of the Company’s revenue earned from each significant revenue stream (Dollar amounts in thousands of U.S. dollars): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Network Access Services: Mobile Services $ 17,567 $ 20,986 $ 37,715 $ 41,795 Other Services 4,414 2,644 8,722 5,087 Total Network Access Services 21,981 23,630 46,437 46,882 Domain Services: Wholesale Domain Services 46,206 46,485 92,169 89,076 Value Added Services 5,034 4,775 9,741 8,959 Total Wholesale 51,240 51,260 101,910 98,035 Retail 8,567 8,783 17,017 17,425 Portfolio 334 444 743 728 Total Domain Services 60,141 60,487 119,670 116,188 $ 82,122 $ 84,117 $ 166,107 $ 163,070 During the three six June 30, 2020 three six June 30, 2019 no 10% no 10% The following is a summary of the Company’s cost of revenue from each significant revenue stream (Dollar amounts in thousands of U.S. dollars): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Network Access Services: Mobile Services $ 8,660 $ 10,806 $ 18,517 $ 21,549 Other Services 1,665 956 3,381 2,025 Total Network Access Services 10,325 11,762 21,898 23,574 Domain Services: Wholesale Domain Services 36,354 37,817 72,823 72,656 Value Added Services 762 738 1,547 1,531 Total Wholesale 37,116 38,555 74,370 74,187 Retail 4,219 4,409 8,453 8,768 Portfolio 130 147 257 276 Total Domain Services 41,465 43,111 83,080 83,231 Network Expenses: Network, other costs 2,485 2,385 4,901 4,780 Network, depreciation and amortization costs 3,356 2,352 6,587 4,327 Network, impairment 1,525 - 1,525 - Total Network Expenses 7,366 4,737 13,013 9,107 $ 59,156 $ 59,610 $ 117,991 $ 115,912 Contract Balances The following table provides information about contract liabilities (deferred revenue) from contracts with customers. The Company accounts for contract assets and liabilities on a contract-by-contract basis, with each contract presented as either a net contract asset or a net contract liability accordingly. Given that Company’s long-term contracts with customers are billed in advance of service, the Company’s contract liabilities relate to amounts recorded as deferred revenues. The Company does not not Deferred revenue primarily relates to the portion of the transaction price received in advance related to the unexpired term of domain name registrations and other domain related value-added services, on both a wholesale and retail basis, net of external commissions. Significant changes in deferred revenue for the six June 30, 2020 June 30, 2020 Balance, beginning of period $ 149,303 Deferred revenue 120,647 Recognized revenue (114,650 ) Balance, end of period $ 155,300 Remaining Performance Obligations: For mobile and internet access services, where the performance obligation is part of contracts that have an original expected duration of one one not Although domain registration contracts are deferred over the lives of the individual contracts, which can range from one ten twelve Deferred revenue related to Exact hosting contracts is also deferred over the lives of the individual contracts, which are expected to be fully recognized within the next twelve June 30, 2020. |