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Note 9 - Assets and Liabilities Held-for-Sale
6 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
9. Assets and liabilities held-for-sale:
 

Accounting Policy:

 

When the Company initiates the sale of long-lived assets, it assesses whether the assets meet the criteria to be considered assets held-for-sale. The review is based on whether the following criteria are met:

 

- Management and the Company's board of directors have committed to a plan to sell the asset;

 

- The subject assets are available for immediate sale in their present condition;

 

- The Company is actively locating buyers as well as other initiatives required to complete the sale;

 

- The sale is probable and the transfer is expected to qualify for recognition as a complete sale in one year;

 

- The long-lived asset is being actively marketed for sale at a price that is reasonable in relation to fair value; and

 

- Actions necessary to complete the plan indicate it is unlikely significant changes will be made to the plan or the plan will be withdrawn.

 

Description of asset groups held-for-sale:

 

If all the criteria are met, a long-lived asset or liabilities held for sale is measured at the lower of its carrying amount or fair value less cost to sell, and the Company will cease recording depreciation. Any adjustment to the carrying amount is recorded as an impairment loss. 

 
In June 2020, the Company committed to a plan to sell the Ting Mobile customer base and the Company's mobile inventory. Accordingly, any capitalized costs associated with the Ting Mobile customer base have been presented as a disposal group held for sale at June 30, 2020. The sale of Tucows' mobile customer base was completed on August 1, 2020 pursuant to an asset sale transaction with Dish Wireless L.L.C. (“DISH”). See Note 19 - Subsequent Events for more information on the details on the transaction with DISH. 

 

As at June 30, 2020 the disposal group comprised assets of $9.0 million and liabilities of $0.8 million comprised of the following assets and liabilities:

 

  

June 30, 2020

 
     
Device credits $99 
Accounts receivable  4,554 
Mobile inventory  861 

Capitalized contract costs (net)

  932 

Customer relationship intangible assets (net)

  2,581 

Assets held for sale

 $9,027 
     
     
Accounts payable $594 
Accrued liabilities  157 

Liabilities held for sale

 $751 

No impairment loss was recorded in the consolidated statements of operations and comprehensive income as a result of classifying the aforementioned assets as held for sale during the three and six months ended June 30, 2020.