Note 17 - Other Income

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Other Income and Other Expense Disclosure [Text Block]

17. Other income:

On August 1, 2020, the Company entered into an Asset Purchase Agreement (the “DISH Purchase Agreement”), by and between the Company and DISH Wireless L.L.C.(“DISH”). Under the DISH Purchase Agreement and in accordance with the terms and conditions set forth therein, the Company sold to DISH its mobile customer accounts that are marketed and sold under the Ting brand (other than certain customer accounts associated with one network operator) (“Transferred Assets”) and derecognized intangible assets and capitalized contract costs associated with the Transferred Assets in the amount of $3.5 million. For a period of 10 years following the execution of the DISH Purchase Agreement, DISH will pay a monthly fee to the Company generally equal to an amount of net revenue received by DISH in connection with the transferred customer accounts minus certain fees and expenses, as further set forth in the DISH Purchase Agreement. The gain is presented net of the original cost base of the Transferred Assets. The Company earned $5.6 million and $15.8 million under the DISH Purchase Agreement during the three and nine months ended September 30, 2021, respectively. The Company earned $4.6 million under the DISH Purchase Agreement during the three and nine months ended September 30, 2020.

(Dollar amounts in thousands of U.S. dollars)	Three Months Ended September 30,					Nine Months Ended September 30,
	2021		2020			2021		2020
Write-down of Ting Mobile intangible assets			$	(2,581	)			$	(2,581	)
Write-down of Ting Mobile contract costs				(932	)				(932	)
Income earned on sale of Transferred Assets	$	5,564	$	4,603		$	15,767	$	4,603
Gain on sale of Ting Customer Assets	$	5,564	$	1,090		$	15,767	$	1,090