1 8 . Segment Reporting: (a) We are organized and managed based on two operating segments which are differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate and are described as follows: 1. Network Access Services - This segment derives revenue from the sale of mobile phones, telephony services, high speed Internet access, billing solutions to individuals and small businesses primarily through the Ting website. Revenues are generated in the United States. 2. Domain Services  This segment includes wholesale and retail domain name registration services, value added services and portfolio services. The Company primarily earns revenues from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations; the sale of retail Internet domain name registration and email services to individuals and small businesses; and by making its portfolio of domain names available for sale or lease. Domain Services revenues are attributed to the country in which the contract originates, primarily Canada and the United States. The Chief Executive Officer (the CEO) is the chief operating decision maker and regularly reviews the operations and performance by segment. The CEO reviews gross profit as (i) a key measure of performance for each segment and (ii) to make decisions about the allocation of resources. Sales and marketing expenses, technical operations and development expenses, general and administrative expenses, depreciation of property and equipment, amortization of intangibles assets, impairment of indefinite life intangible assets, gain on currency forward contracts and other expense net are organized along functional lines and are not included in the measurement of segment profitability. Total assets and total liabilities are centrally managed and are not reviewed at the segment level by the CEO. The Company follows the same accounting policies for the segments as those described in Note 2  Significant Accounting Policies, and Note 10  Revenue. Information by reportable segments (with the exception of disaggregated revenue, which is discussed in Note 10 - Revenue), which is regularly reported to the chief operating decision maker is as follows (Dollar amounts in thousands of US dollars): Network Access Services Domain Services Consolidated Totals Year ended December 31, 2018 Net Revenues $ 97,324 $ 248,689 $ 346,013 Cost of revenues Cost of revenues 50,055 182,048 232,103 Network expenses 2,029 7,817 9,846 Depreciation of property and equipment 4,063 1,235 5,298 Amortization of intangible assets 46 1,950 1,996 Total cost of revenues 56,193 193,050 249,243 Gross Profit 41,131 55,639 96,770 Expenses: Sales and marketing 33,063 Technical operations and development 8,748 General and administrative 17,710 Depreciation of property and equipment 424 Amortization of intangible assets 7,247 Impairment of indefinite life intangible assets - Loss (gain) on currency forward contracts 254 Income from operations 29,324 Other income (expenses), net (3,169 ) Income before provision for income taxes $ 26,155 Network Access Services Domain Services Consolidated Totals Year ended December 31, 2017 Net Revenues $ 89,452 $ 239,969 $ 329,421 Cost of revenues Cost of revenues 48,640 181,960 230,600 Network expenses 1,861 7,463 9,324 Depreciation of property and equipment 2,201 941 3,142 Amortization of intangible assets 46 1,788 1,834 Total cost of revenues 52,748 192,152 244,900 Gross Profit 36,704 47,817 84,521 Expenses: Sales and marketing 29,423 Technical operations and development 7,258 General and administrative 13,594 Depreciation of property and equipment 585 Amortization of intangible assets 6,566 Impairment of indefinite life intangible assets 111 Loss (gain) on currency forward contracts (98 ) Income from operations 27,082 Other income (expenses), net (3,007 ) Income before provision for income taxes $ 24,075 Network Access Services Domain Services Consolidated Totals Year ended December 31, 2016 Net Revenues $ 74,306 $ 115,513 $ 189,819 Cost of revenues Cost of revenues 37,825 82,362 120,187 Network expenses 1,399 3,811 5,210 Depreciation of property and equipment 977 343 1,320 Amortization of intangible assets 48 - 48 Total cost of revenues 40,249 86,516 126,765 Gross Profit 34,057 28,997 63,054 Expenses: Sales and marketing 20,755 Technical operations and development 4,495 General and administrative 11,405 Depreciation of property and equipment 504 Amortization of intangible assets 905 Impairment of indefinite life intangible assets 42 Loss (gain) on currency forward contracts (99 ) Income from operations 25,047 Other income (expenses), net 66 Income before provision for income taxes $ 25,113 (b) The following is a summary of the Companys cost of revenues from each significant revenue stream (Dollar amounts in thousands of US dollars): Year ended December 31, 2018 2017 2016 Network Access Services: Mobile Services $ 46,061 $ 45,335 $ 35,915 Other Services 3,994 3,305 1,910 Total Network Access Services 50,055 48,640 37,825 Domain Services: Wholesale Domain Services 160,216 161,013 72,948 Value Added Services 3,154 2,450 2,032 Total Wholesale 163,370 163,463 74,980 Retail 17,725 17,346 6,766 Portfolio 953 1,151 616 Total Domain Services 182,048 181,960 82,362 Network Expenses: Network, other costs 9,846 9,324 5,210 Network, depreciation and amortization costs 7,294 4,976 1,368 17,140 14,300 6,578 $ 249,243 $ 244,900 $ 126,765 (c) The following is a summary of the Companys property and equipment by geographic region (Dollar amounts in thousands of US dollars): December 31, 2018 December 31, 2017 Canada $ 1,393 $ 1,176 United States 46,631 23,417 Germany 41 27 $ 48,065 $ 24,620 (d) The following is a summary of the Companys amortizable intangible assets by geographic region (Dollar amounts in thousands of US dollars): December 31, 2018 December 31, 2017 Canada $ 6,553 $ 7,749 United States 30,421 37,783 Germany - 120 $ 36,974 $ 45,652 (e) The following is a summary of the Companys deferred tax asset, net of valuation allowance, by geographic region (Dollar amounts in thousands of US dollars): December 31, 2018 December 31, 2017 Canada $ - $ - $ - $ - (f) Valuation and qualifying accounts (Dollar amounts in thousands of US dollars): Allowance for doubtful accounts excluding provision for credit notes Balance at beginning of period Charged to costs and expenses Write-offs during period Balance at end of period Year ended December 31, 2018 $ 168 $ (36 ) $ - $ 132 Year ended December 31, 2017 $ 164 $ 4 $ - $ 168