OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2020

Disclosure of operating segments [abstract]

OPERATING SEGMENTS [Text Block]

5. OPERATING SEGMENTS

The Corporation's reportable segments are Loyalty Currency Retailing, Platform Partners and Points Travel. These operating segments are organized around differences in products and services.

The Corporation's measure of segment profit or loss is Contribution, which is defined as gross profit (total revenue less direct cost of revenue) for the relevant operating segment less direct adjusted operating expenses. Direct adjusted operating expenses are expenses which are directly attributable to each operating segment.  Assets and liabilities are not provided to the CODM at the operating segment level and are therefore not allocated to the operating segments for reporting purposes.  There have been no changes in the Corporation's reportable segments in 2020 and 2019.

For the year ended December 31, 2020:		Loyalty Currency Retailing		Platform Partners		Points Travel			Total
Total revenue	$	211,200	$	5,030	$	1,157		$	217,387
Direct cost of revenue		181,603		731		50			182,384
Gross profit		29,597		4,299		1,107			35,003
Direct adjusted operating expenses		11,243		2,377		4,527			18,147
Contribution	$	18,354	$	1,922	$	(3,420	)	$	16,856
Indirect adjusted operating expenses1									14,094
Finance and other income									(379	)
Finance costs									843
Equity-settled share-based payment expense									3,129
Impairment charges									1,798
Income tax recovery									(1,460	)
Depreciation and amortization									4,859
Foreign exchange gain									(671	)
Net loss								$	(5,357	)

¹ Indirect adjusted operating expenses comprise costs that are shared among the Loyalty Currency Retailing, Platform Partners and Points Travel operating segments, including costs associated with various corporate functions, such as Finance, Human Resources, Legal and certain expenses associated with information technology infrastructure.

For the year ended December 31, 2019:		Loyalty Currency Retailing		Platform Partners		Points Travel			Total
Total revenue	$	391,045	$	7,577	$	2,555		$	401,177
Direct cost of revenue		335,032		665		25			335,722
Gross profit		56,013		6,912		2,530			65,455
Direct adjusted operating expenses		13,830		3,871		6,838			24,539
Contribution	$	42,183	$	3,041	$	(4,308	)	$	40,916
Indirect adjusted operating expenses1									14,328
Finance and other income									(908	)
Finance costs									211
Equity-settled share-based payment expense									5,172
Income tax expense									5,155
Depreciation and amortization									4,668
Foreign exchange loss									401
Net Income								$	11,889

¹ Indirect adjusted operating expenses comprise costs that are shared among the Loyalty Currency Retailing, Platform Partners and Points Travel operating segments, including costs associated with various corporate functions, such as Finance, Human Resources, Legal and certain expenses associated with information technology infrastructure.

Enterprise-wide disclosures - Geographic information

For the year ended December 31		2020			2019
Revenue
United States	$	188,531	87%	$	358,993	90%
Europe		19,074	9%		21,832	5%
Other		9,782	4%		20,352	5%
	$	217,387	100%	$	401,177	100%

Revenue earned by the Corporation is generated from sales to loyalty program partners directly or from sales directly to members of loyalty programs with which the Corporation partners. Revenues by geographic region are shown above and are based on the country of residence of each of the Corporation's loyalty partners. As at December 31, 2020, substantially all of the Corporation's assets were in Canada.

Transaction price allocated to the remaining performance obligations

The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers.

		Total		Year 1		Year 2		Year 3		Year 4		Year 5+
Hosting and other	$	1,025	$	558	$	362	$	105	$	—	$	—

The Corporation has elected to apply the practical expedient to not disclose information about remaining performance obligations that have original expected durations of one year or less.

Dependence on loyalty program partners

For the year ended December 31, 2020, there were three (2019 - three) loyalty program partners for which sales to their members individually represented more than 10% of the Corporation's total revenue. In aggregate, sales to the members of these partners represented 64% (2019 - 69%) of the Corporation's total revenue.