ITEM 1.
FINANCIAL STATEMENTS.
The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that can be expected for the year ending December 31, 2019.
As used in this Quarterly Report, the terms "we," "us," "our," "Live Current," and the "Company" mean Live Current Media Inc. and its subsidiaries, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.
LIVE CURRENT MEDIA INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2019
(Expressed in US Dollars)
(Unaudited)
LIVE CURRENT MEDIA INC
.
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
(expressed in US dollars)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash
|
$
|
372,451
|
|
$
|
388,906
|
|
Miscellaneous receivables
|
|
348
|
|
|
-
|
|
Domain proceeds receivable
|
|
-
|
|
|
22,500
|
|
|
|
372,799
|
|
|
411,406
|
|
Non-current assets
|
|
|
|
|
|
|
Intangible assets
|
|
111,951
|
|
|
111,951
|
|
|
$
|
484,750
|
|
$
|
523,357
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
$
|
89,840
|
|
$
|
85,585
|
|
Other payable
|
|
17,543
|
|
|
17,441
|
|
|
|
107,383
|
|
|
103,026
|
|
Stockholders' equity
|
|
|
|
|
|
|
Capital stock
|
|
|
|
|
|
|
Authorized:
|
|
|
|
|
|
|
500,000,000 common shares, par value $0.001 per share
|
|
|
|
|
|
|
Issued and outstanding:
|
|
|
|
|
|
|
34,837,625 common shares
|
|
34,838
|
|
|
34,838
|
|
Additional paid in capital
|
|
18,370,899
|
|
|
18,370,899
|
|
Deficit
|
|
(18,028,370
|
)
|
|
(17,985,406
|
)
|
|
|
377,367
|
|
|
420,331
|
|
|
$
|
484,750
|
|
$
|
523,357
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
LIVE CURRENT MEDIA INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
(expressed in US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the six months ended
|
|
|
|
June 30, 2019
|
|
|
June 30, 2018
|
|
|
June 30, 2019
|
|
|
June 30, 2018
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Bad debt
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
5,435
|
|
Domain content and registration
|
|
3,505
|
|
|
3,105
|
|
|
8,855
|
|
|
8,605
|
|
Gain on domain name sale
|
|
(146,700
|
)
|
|
-
|
|
|
(146,700
|
)
|
|
-
|
|
General and administrative
|
|
28,469
|
|
|
9,523
|
|
|
57,733
|
|
|
16,519
|
|
Management fees
|
|
30,000
|
|
|
30,000
|
|
|
60,000
|
|
|
60,000
|
|
Professional fees
|
|
(7,329
|
)
|
|
15,805
|
|
|
37,823
|
|
|
50,545
|
|
Transfer agent and regulatory
|
|
17,808
|
|
|
18,511
|
|
|
23,579
|
|
|
20,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
74,247
|
|
|
(76,944
|
)
|
|
(41,290
|
)
|
|
(161,587
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(51
|
)
|
|
(51
|
)
|
|
(102
|
)
|
|
(102
|
)
|
Foreign exchange
|
|
(992
|
)
|
|
(3,138
|
)
|
|
(1,572
|
)
|
|
(3,527
|
)
|
|
|
(1,043
|
)
|
|
(3,189
|
)
|
|
(1,674
|
)
|
|
(3,629
|
)
|
Net and comprehensive income (loss) for the period
|
$
|
73,204
|
|
$
|
(80,133
|
)
|
$
|
(42,964
|
)
|
$
|
(165,216
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share
|
|
(0.00
|
)
|
|
(0.00
|
)
|
|
(0.00
|
)
|
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of basic common shares outstanding
|
|
34,837,625
|
|
|
34,837,625
|
|
|
34,837,625
|
|
|
34,837,625
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
LIVE CURRENT MEDIA INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
|
|
(expressed in US dollars)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
Additional
|
|
|
|
|
|
Total
|
|
|
|
Number
|
|
|
|
|
|
Paid In
|
|
|
Accumulated
|
|
|
Stockholders'
|
|
|
|
of Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit
|
|
|
Equity
|
|
Balance, December 31, 2017
|
|
34,837,625
|
|
$
|
34,838
|
|
$
|
18,257,563
|
|
$
|
(17,214,553
|
)
|
$
|
1,077,848
|
|
Stock-based compensation
|
|
-
|
|
|
-
|
|
|
113,336
|
|
|
-
|
|
|
113,336
|
|
Net loss for the year
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(770,853
|
)
|
|
(770,853
|
)
|
Balance, December 31, 2018
|
|
34,837,625
|
|
|
34,838
|
|
|
18,370,899
|
|
|
(17,985,406
|
)
|
|
420,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
|
-
|
|
|
-
|
|
|
(42,964
|
)
|
|
(42,964
|
)
|
Balance, June 30, 2019
|
|
34,837,625
|
|
$
|
34,838
|
|
$
|
18,370,899
|
|
$
|
(18,028,370
|
)
|
$
|
377,367
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
LIVE CURRENT MEDIA INC.
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
(expressed in US dollars
)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
mont
hs ended
|
|
|
|
June 30, 2019
|
|
|
June 30, 2018
|
|
Operating activities
|
|
|
|
|
|
|
Net loss for the period
|
$
|
(42,964
|
)
|
$
|
(165,216
|
)
|
Non-cash items:
|
|
|
|
|
|
|
Accrued interest
|
|
102
|
|
|
102
|
|
Gain on domain name sale
|
|
(146,700
|
)
|
|
-
|
|
Changes in non-cash working capital items:
|
|
|
|
|
|
|
Receivable
|
|
22,152
|
|
|
50,435
|
|
Accounts payable and accrued liabilities
|
|
4,255
|
|
|
(66,126
|
)
|
Cash used in operating activities
|
|
(163,155
|
)
|
|
(180,805
|
)
|
|
|
|
|
|
|
|
Investing activity
|
|
|
|
|
|
|
Proceeds received for sale of domain name
|
|
146,700
|
|
|
-
|
|
Cash from investing activity
|
|
146,700
|
|
|
-
|
|
|
|
|
|
|
|
|
Change in cash
|
|
(16,455
|
)
|
|
(180,805
|
)
|
Cash, beginning of period
|
|
388,906
|
|
|
956,549
|
|
Cash, end of period
|
$
|
372,451
|
|
$
|
775,744
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
Interest paid
|
$
|
-
|
|
$
|
-
|
|
Income taxes paid
|
$
|
-
|
|
$
|
-
|
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
LIVE CURRENT MEDIA INC.
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
June 30, 2019
|
(Unaudited)
|
1.
|
NATURE AND CONTINUANCE OF OPERATIONS
|
Live Current Media Inc. (the "Company" or "Live Current") was incorporated under the laws of the State of Nevada on October 10, 1995. The Company’s wholly owned principal operating subsidiary, Domain Holdings Inc. ("DHI"), was incorporated under the laws of British Columbia on July 4, 1994.
On March 21, 2019, the Company executed a distribution agreement with Cell MedX Corp. (Cell MedX), pursuant to which Cell MedX has granted to the Company an exclusive worldwide license to distribute its e-Balance microcurrent device to households and individual users. To acquire these rights, the Company paid $250,000 to Cell MedX upon signing of the letter of intent between the Company and Cell MedX in September 2018.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As of June 30, 2019, the Company has not achieved profitable operations, has incurred recurring operating losses and further losses are possible. The Company’s ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to further develop its business. To date, the Company has funded operation through the issuance of capital stock and debt. Management plans to continue raising additional funds through equity or debt financing and loans from directors. There is no certainty that further funding will be available as needed. These directors raise substantial doubt about the ability of the Company to continue operating as a going concern. The ability of the Company to continue its operations as a going concern is dependent upon its ability to raise sufficient new capital to fund its operating commitments and ongoing losses and ultimately on generating profitable operations. The financial statements do not include any adjustments to be recorded to assets or liabilities that might be necessary should the Company be unable to continue as a going concern.
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United State ("US GAAP"), and are expressed in United States dollars.
Basis of Presentation
The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited interim financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report in Form 10-K, for the year ended December 31, 2018, as filed with the SEC on April 1, 2019.
LIVE CURRENT MEDIA INC.
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
June 30, 2019
|
3.
|
DOMAIN PROCEEDS RECEIVABLE
|
On October 6, 2017, the Company sold a domain name for $150,000 less a brokerage fee of $15,000. The domain purchase and transfer agreement included terms that allowed the purchaser to make monthly instalment payments of $7,500, net of the brokerage fee, over a period of 18 months. The domain is being held by an independent escrow agent during the period the remaining balance in respect of this sale is outstanding. The purchaser is entitled to control the domain name while being held in escrow but, in the event of a default that is not successfully remedied, all rights to the domain name will be transferred back to the Company and all payments made by the purchaser will be forfeited. As at June 30, 2019, the balance remaining is $Nil and the domain name has been transferred to the purchaser.
The Company’s portfolio of domain names is considered by management to consist of indefinite life intangible assets not subject to amortization.
On May 27, 2019, the Company sold a domain name for $146,700. The proceeds were recognized as a gain as the carrying value was $Nil. The entire proceeds were received and the domain name was transferred to the purchaser.
There were no shares or stock options issued during the six months ended June 30, 2019.
As at June 30, 2019, the Company had 1,900,000 options outstanding with a weighted average exercise price and weighted average life of $0.10 and 1.42 years, respectively.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this Quarterly Report constitute "forward-looking statements." These statements, identified by words such as "plan," "anticipate," "believe," "estimate," "should," "expect" and similar expressions include the Company's expectations and objectives regarding its future financial position, operating results and business strategy. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, general economic conditions particularly related to demand for the Company's products and services, changes in business strategy, competitive factors (including the introduction or enhancement of competitive services), pricing pressures, changes in operating expenses, fluctuation in foreign currency exchange rates, inability to attract or retain consulting, sales and/or development talent, changes in customer requirements, and/or evolving industry standards, as well as those factors discussed in the section titled "Part II, Item 1A. Risk Factors" in this Quarterly Report.
Forward looking statements are based on a number of material factors and assumptions, including the availability and final receipt of required government licenses, that sufficient working capital is available to complete the proposed activities, that contracted parties provide goods and/or services on the agreed time frames. While the Company considers these assumptions may be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in the section titled "Risk Factors" in this Quarterly Report.
The Company intends to discuss in its Quarterly Reports and Annual Reports any events or circumstances that occurred during the period to which such documents relate that are reasonably likely to cause actual events or circumstances to differ materially from those disclosed in this registration statement. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on its business or the extent to which any factor, or combination of such factors, may cause actual results to differ materially from those contained in any forwarding looking statement. You are advised to carefully review the reports and documents that the Company files from time to time with the United States Securities Exchange Commission (the "SEC"), particularly its periodic reports filed with the SEC pursuant to the Securities Exchange Act of 1934 (the "Exchange Act").
OVERVIEW
Live Current Media Inc. (the "Company") was incorporated under the laws of the State of Nevada on October 10, 1995. The Company operates a segment of its business through its wholly owned subsidiary, Domain Holdings Inc., originally formed under the laws of British Columbia, Canada on July 4, 1994 and re-domiciled to Alberta, Canada on April 14, 1999 ("DHI"). The Company is also the majority shareholder of Perfume.com Inc. (95% ownership), formed under the laws of the State of Delaware on March 13, 2008. Perfume.com Inc. is currently dormant and does not carry on an active business. References herein to the Company include DHI and Perfume.com Inc. (collectively, the "Subsidiaries") unless otherwise stated.
RECENT CORPORATE DEVELOPMENTS
On March 21, 2019, the Company executed a Distribution Agreement with Cell MedX Corp. (the "Device Manufacturer", "Cell MedX" or "CMXC"), pursuant to which Cell MedX has granted to the Company an exclusive worldwide license to distribute the eBalance microcurrent device to households and individual users. To acquire these rights, the Company paid to Cell MedX the sum of $250,000.
The eBalance device is a microcurrent therapy device designed to target complications arising from diabetes.
PLAN OF OPERATIONS
The Company's business currently is that of managing the business of DHI and distribution of the eBalance microcurrent device. DHI is in the business of utilizing its exclusive ownership of domain names to develop internet-related business ventures.
eBalance Distribution Business
In the near term, the Company intends to focus a majority of its resources on the development of its eBalance distribution business. The Company anticipates the market launch of the device to begin in the late second half of 2019. The Company's marketing efforts for the eBalance device will initially focus on directly targeting diabetics with a combination of advertising on internet platforms such as Facebook, active participation in social media, a dedicated YouTube channel, attendance at major North American health and wellness expositions and direct marketing to doctors, corporations and assisted living communities. Management believes that it will be successful in this endeavor due to the unique aspects of the eBalance device that differentiate it from the current competition in the wellness medical device sector. Those aspects include clinically proven results, ease of use, accessibility, no known harmful side effects, great customer service, and a limited time guarantee.
The eBalance microcurrent device is based on the Device Manufacturer's proprietary technology (the "eBalance Technology") founded on the science of bioelectric signals, their affect on epigenetic events within the human body, and ability to modify and affect the behavior of cells, tissue, and organs. Based on this technology the Device Manufacturer is developing a radically different and very promising family of devices whose core technology demarcates it from the approaches currently in use and those in the "future advances" pipeline as reflected in current medical literature.
Microcurrent delivery devices used for the treatment of diabetic neuropathy and poor wound healing in diabetics have been in the marketplace for decades. However, the eBalance Technology can be distinguished from those devices, which have a limited utility and are not designed to treat diabetes at its. Not a "me too" device, nor an incremental improvement in an established realm, devices based on the eBalance Technology could, if proven through diligent research and development, open a new category of diabetes care.
The eBalance Technology is intended to expand the traditional healthcare model of managing diabetes, high blood pressure, Parkinson's as well as some other pathological diseases, by enabling patients to manage their symptoms using a biosignal generating device that is simple to use, causes no discomfort, and can easily be incorporated into any lifestyle.
It is expected that the eBalance Technology will form the basis for a product line that will be available to aid in the management of diabetes mellitus (both Type 1 and Type 2), its complications, high blood pressure and some other pathologies, both as a professional clinic-based device and as a home use device.
A research and development plan adopted by the Device Manufacturer includes a series of investigations that are intended to move the product from a prototype stage through a series of refinements and enhancements to achieve the safety and efficacy objectives of the device(s) upon which a set of claims intended for FDA, Health Canada and European Medical CE approval through the rigorous Pre-Market Approval (PMA) process is being constructed. A clinical observational trial finalized during 2017 (the "Clinical Study"), and future planned clinical trials will dictate the final marketing claims for the eBalance products, and will become the foundation for sales & marketing efforts in subsequent phases. The results of the Clinical Study and in-house observations of the effects of the eBalance technology on the human body, suggested that claims should not only focus on overall diabetes management, reductions in average blood sugar (HbA1C) as well as other markers that denote the degree and quality of blood sugar control, but can also encompass pain management, blood pressure control, and alleviation of symptoms associated with Parkinson's disease.
Given the size of the market for diabetes control and management, the current eBalance Technology has significant potential for success based solely on treating complications caused by diabetes. However, in order to capture a larger market share, the Device Manufacturer is looking into developing more specialized treatment options to target other ailments such as gout, hypertension, heart disease, neurological disorders, and depression.
Domain Name and Web Development Business
In addition to the Company's eBalance distribution business, the Company intends to maintain its domain name and website development business. Some of its portfolio of domain names, continue to generate meaningful amounts of Internet traffic, which the Company attributes to, among other things, their generic descriptive nature of a product or services category.
Management believes that it can develop and sustain a business based on the lease, sale and other exploitation of domain names because, in part, of its ownership of a number of generic, intuitive domain names which attract significant numbers of visitors to websites utilizing those names. Moreover, because there are a limited number of potential domain names, the Company believes that the value of these names may be significant and may allow the Company to achieve both strategic relationships with leading participants in key Internet businesses and businesses that desire to expand using the Internet, as well as independent operations. Currently the Company owns two websites, Boxing.com and Number.com, which are operated through a verbal arrangement with an independent web developer.
The Company acquired a number of ".cn" domain names through a lottery-allocation in 2003 which are available to be developed.
Management of the company believe that the Company does not have enough cash on hand to manage its product distribution and web development operations for the next 12 months.
RESULTS OF OPERATIONS
The following selected financial data was derived from the Company's unaudited interim financial statements for the periods ended June 30, 2019 and June 30, 2018. The information set forth below should be read in conjunction with the Company's financial statements and related notes included elsewhere in this Quarterly Report.
Summary of Results
|
For the three month period ended
June 30, 2019
(unaudited)
|
For the three month period ended
June 30, 2018
(unaudited)
|
For the six month period ended
June 30, 2019
(unaudited)
|
For the six month period ended
June 30, 2018
(unaudited)
|
|
|
|
|
|
Loss from operations
|
$74,247
|
$(76,944)
|
$(41,290)
|
$(161,587)
|
|
|
|
|
|
Gain on debt retirement
|
-
|
-
|
-
|
-
|
|
|
|
|
|
Interest expense
|
(51)
|
(51)
|
(102)
|
(102)
|
|
|
|
|
|
Foreign exchange
|
(992)
|
(3,138)
|
(1,572)
|
(3,527)
|
Net and comprehensive income (Loss)
|
$73,204
|
$(80,133)
|
$(42,964)
|
$(165,216)
|
Revenue
The Company did not recognize recurring revenues during the three- and six-month period ending June 30, 2019 or the three- and six- month period ending June 30, 2018. The Company does not anticipate recognizing recurring revenues until late second half of 2019 after it has launched the marketing of eBalance. The Company continues to market its domain names in its portfolio and considers offers received for domain names in its portfolio. The Company believes its portfolio of domain names will continue to maintain its value over time. Although the Company's arrangement with the web developer for Boxing.com and Number.com calls for revenues to be split between the Company and the web developer, advertising revenues for those sites has been minimal. As such, the Company has permitted the web developer to retain the advertising revenue to offset against the developer's costs of operating those sites. The Company does not anticipate earning significant advertising revenue from Boxing.com or Number.com in the near future.
At June 30, 2019, the Company had an accumulated deficit of $18,028,370. The Company is presently in the development stage of their business and cannot provide any assurances that it will be able to generate regular or recurring revenues in the near future
.
Results of Operation
The Company recorded a net profit of $73,204 for the quarter ended June 30, 2019 compared to a net loss of $80,133 for the quarter ended June 30, 2018. The difference is the result of a one time gain of $146,700 resulting from a domain name sale.
During the six months ended June 30, 2019, the Company recorded a net loss of $42,964 compared with a net loss of $165,216 during the six months ending June 30, 2018. The largest portion of the difference between these two time periods is the result of a one time gain from the sale of a domain name.
Liquidity and Capital Resources
At June 30, 2019, the Company had working capital surplus of $265,416, a decrease from the Company's working capital of $308,380 at December 31, 2018. During the six months ended June 30, 2019 the Company had negative operating cash flow. Due to the fact that the Company has incurred recurring losses and anticipates incurring further losses in the future, there is substantial doubt as to the Company's ability to continue as a going concern.
The Company does not believe that it has the necessary cash requirements for the next 12 months without having to raise additional funds.
The Company does not anticipate purchasing any plant or significant equipment in the immediate future
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to shareholders.
CRITICAL ACCOUNTING POLICIES
The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular URL should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of a domain name is less than its carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. When it is determined that the fair value of a domain name is less than its carrying amount, impairment is recognized.
There have been no material changes to the critical accounting policies as previously disclosed on our Annual Report on Form 10-K for the year ended December 31, 2018, which was filed on April 1, 2019
RECENT ACCOUNTING PRONOUNCEMENTS
There are no new accounting pronouncements that materially impact the Company's condensed consolidated financial statements.