Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars) |
| |
|
September 30, 2002
(unaudited) |
|
December 31, 2001
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
7,421,668 |
$ |
4,814,189 |
| Restricted cash (note 1) |
|
839,750 |
|
- |
| Accounts receivable |
|
374,035 |
|
817,990 |
Promissory note, secured and bearing
interest at the rate of 6% per annum
due on October 31, 2002 |
|
1,121,480 |
|
- |
| Prepaid expenses and deposits |
|
1,637,059 |
|
2,041,927 |
| Prepaid domain name registry fees, current portion |
|
11,146,638
|
|
10,034,413
|
| Total current assets |
|
22,540,630 |
|
17,708,519 |
| |
|
|
|
|
| Restricted cash (note 1) |
|
225,000 |
|
- |
| Prepaid domain name registry fees, long term portion |
|
3,531,857 |
|
2,599,962 |
| Property and equipment |
|
1,747,828 |
|
3,691,390 |
| Investments |
|
353,737 |
|
1,367,072 |
| Intangible assets |
|
- |
|
222,222 |
| |
| Total assets |
$ |
28,399,052
|
$ |
25,589,165
|
| |
|
|
| Liabilities and Stockholders' Deficiency |
| Current liabilities: |
| Accounts payable |
$ |
1,249,357 |
|
1,958,744 |
| Accrued liabilities |
|
2,554,406 |
|
2,242,858 |
| Customer deposits |
|
2,021,196 |
|
1,951,336 |
| Obligations under capital lease, current portion |
|
- |
|
58,772 |
| Deferred revenue, current portion |
|
18,494,147 |
|
18,444,280 |
Deferred gain on disposition of Electric
Library subscription assets |
|
1,121,480
|
|
-
|
| Total current liabilities |
|
25,440,586 |
|
24,655,990 |
| Deferred revenue, long term portion |
|
5,744,877 |
|
4,270,341 |
| Obligations under capital lease, net of current portion |
|
- |
| 52,387 |
| Stockholders' deficiency: |
|
|
|
|
Preferred stock - no par value, 1,250,000 shares
authorized; none issued and outstanding |
|
- |
|
- |
Common stock - no par value, 250,000,000 shares
authorized; 64,626,429 shares issued and
outstanding at September 30, 2002 and
December 31, 2001 |
|
8,540,687 |
|
8,540,687 |
| Additional Paid-in Capital |
|
49,992,129 |
|
49,992,129 |
| Deferred stock–based compensation |
|
(224,309) |
|
(346,000) |
| Deficit |
|
(61,094,918)
|
|
(61,576,369)
|
| Total stockholders' deficiency |
|
(2,786,411)
|
|
(3,389,553)
|
| |
| Total liabilities and stockholders' deficiency |
$ |
$28,399,052
|
$ |
25,589,165
|
| |
| Note 1: |
|
The Company has entered into a series of forward exchange contracts, whereby an amount of
U.S.$375,000 is converted into Canadian dollars on a semi-monthly basis from June 2002 until the end of
December 2003. As margin security against these Contracts, the Company placed $1,196,000 into
secured term deposits, which mature on a monthly basis in line with the Contracts. The outstanding margin
security in the amount of $1,064,750 is reflected as restricted cash on the balance sheet.
|
Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
September 30, |
Nine months ended
September 30, |
| |
2002
|
2001
|
2002
|
2001
|
| Net revenues |
$ |
8,879,281 |
$ |
8,200,917 |
$ |
28,286,001 |
$ |
21,779,959 |
| Cost of revenues |
| 5,413,730
|
| 5,929,612
|
| 17,645,243
|
| 14,500,083
|
| Gross profit |
| 3,465,551 |
| 2,271,305 |
| 10,640,758 |
| 7,279,876 |
| Operating expenses: |
| Sales and marketing (*) |
| 926,098 |
| 1,522,296 |
| 2,831,851 |
| 5,292,725 |
| Technical operations and development |
| 866,061 |
| 1,411,193 |
| 2,883,770 |
| 4,054,074 |
|
General and administrative(*) |
| 914,248 |
| 912,277 |
| 3,230,594 |
| 2,850,088 |
| Depreciation of property and equipment |
| 378,913 |
| 631,024 |
| 2,273,587 |
| 2,462,042 |
| Amortization of intangible assets |
| - |
| 1,325,700 |
| 222,222 |
| 3,189,146 |
(Gain) loss on change in fair value
of forward contracts |
| 530,381
|
| -
|
| 400,488
|
| -
|
| Total operating expenses |
| 3,615,701
|
| 5,802,490
|
| 11,842,512
|
| 17,848,075
|
| |
|
| Loss from operations |
| (150,150) |
| (3,531,185) |
| (1,201,754) |
| (10,568,199) |
| |
| Other income (expenses) |
|
| Interest income (expense), net |
| 21,299 |
| (156,428) |
| 60,164 |
| (157,184) |
Gain on disposal of Electric Library
subscription assets |
| 725,237 |
| - |
| 725,237 |
| - |
Gain on disposal of Liberty Registry
Management Services Inc. |
| - |
| - |
| 1,955,443 |
| - |
| Loss on disposal of Eklektix Inc. |
| - |
| - |
| (44,304) |
| - |
| Write down of investment in bigchalk.com |
| - |
| - |
| (1,013,335) |
| - |
| Total other income (expenses) |
|
746,536
|
|
(156,428)
|
|
1,683,205
|
|
(157,184)
|
| |
|
| Income (loss) before provision for income taxes |
| 596,386 |
| (3,687,613) |
| 481,451 |
| (10,725,383) |
| Provision for income taxes |
| - |
| - |
| - |
| - |
| |
| |
| |
| |
| |
| Net income (loss) for the period |
$ |
596,386
|
$ |
(3,687,613)
|
$ |
481,451
|
$ |
(10,725,383)
|
| |
|
| Basic and diluted earnings (loss) per share |
$ |
0.01
|
$ |
(0.07)
|
$ |
0.01
|
$ |
(0.20)
|
| |
|
| Shares used in computing basic and diluted earnings (loss) per common share |
|
64,626,429
|
|
56,574,253
|
|
64,626,429
|
|
53,297,131
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | 27,707 |
$ | 27,707 |
$ | 82,218 |
$ | 82,218 |
| General and administrative |
$ | 13,302 |
$ | 13,303 |
$ | 39,474 |
$ | 39,474 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
September 30, |
Nine months ended
September30, |
| |
2002
|
2001
|
2002
|
2001
|
| Cash provided by (used in): |
|
| Operating activities: |
|
Net Income (loss)
for the period |
$ |
596,386 |
$ |
(3,687,613) |
$ |
481,451 |
$ |
(10,725,383) |
| Items not involving cash: |
|
Depreciation of property
and equipment |
| 378,913 |
| 631,024 |
| 2,273,587 |
| 2,462,042 |
Amortization of intangible
assets |
| - |
| 1,325,700 |
| 222,222 |
| 3,189,146 |
(Gain) loss on change in fair
value of forward contracts |
| 530,381 |
| - |
| 400,488 |
| - |
Write down of investment in
bigchalk.com |
| - |
| - |
| 1,013,335 |
| - |
| Stock-based compensation |
| 41,009 |
| 41,010 |
| 121,692 |
| 121,692 |
Gain on disposal of Electric
Library subscription assets |
| (725,237) |
| - |
| (725,237) |
| - |
Gain on disposal of Liberty
Registry Management
Services
Inc. |
| - |
| - |
| (1,955,443) |
| - |
Loss on write-off of
Eklektix Inc. |
| - |
| - |
| 44,304 |
| - |
| Change in non-cash operating working capital: |
|
| Accounts receivable |
| (51,270) |
| (930,753) |
| 271,613 |
| (724,661) |
Prepaid expenses and
deposits |
| 296,718 |
| 258,292 |
| 233,754 |
| (456,489) |
Prepaid domain name
registry fees |
| (481,381) |
| 491,973 |
| (2,321,352) |
| (2,717,198) |
| Accounts payable |
| (192,794) |
| (501,500) |
| (371,943) |
| (1,235,813) |
| Accrued liabilities |
| 387,166 |
| (1,868,244) |
| (354,102) |
| (1,183,757) |
| Customer deposits |
| (224,762) |
| 362,955 |
| 84,455 |
| 380,962 |
| Deferred revenue |
| 634,973 |
| 1,784,512 |
| 3,609,422 |
| 4,464,134 |
Cash provided by (used in)
operating activities |
|
1,190,102
|
|
(2,092,644)
|
|
3,028,246
|
|
(6,425,325)
|
| Financing activities: |
|
Proceeds on issuance of
promissory notes |
| - |
| 2,500,000 |
| - |
| 2,500,000 |
| Repayment of promissory note |
| - |
| (2,500,000) |
| - |
| (2,500,000) |
| Proceeds on rights issue |
| - |
| - |
| - |
| 2,999,973 |
| Loans payable |
| - |
| (3,800,000) |
| - |
| - |
Proceeds recieved on exercise
of stock options |
| - |
| - |
| - |
| 24,396 |
Repayments of obligations
under capital leases |
| (65,588) |
| (5,821) |
| (111,160) |
| (5,821) |
Cash provided by (used in)
financing activities |
|
(65,588)
|
|
(3,805,821)
|
|
(111,160)
|
|
3,018,548
|
| |
| Investing activities: |
|
Additions to property and
equipment |
| (160,710) |
| (337,310) |
| (608,767) |
| (2,308,524) |
Decrease (Increase) in
restricted cash
- being margin
security against
forward exchange contracts
(note 1) |
| 131,250 |
| - |
| (1,064,750) |
| - |
Net proceeds on disposal of
Electric Library
subscription assets |
| 455,649 |
| - |
| 455,649 |
| - |
| Investment in Afilias Limited |
| - |
| (158,031) |
| - |
| (253,737) |
Proceeds on disposal of
Liberty Registry
Management Services Inc.,
net of cash disposed |
| - |
| - |
| 938,889 |
| - |
Proceeds on disposal of
Eklektix Inc.,
net of cash disposed |
| - |
| - |
| (30,628) |
| - |
Aquisition of Infonautics Inc.,
net of cash acquired |
| - |
| 8,833,431 |
| - |
| 8,833,431 |
| Deferred acquisition costs |
| - |
| 313,098 |
| - |
| - |
Cash provided by (used in)
investing activities |
|
426,189
|
|
8,651,188
|
|
(309,607)
|
|
6,271,170
|
| |
|
| Increase in cash and cash equivalents |
| 1,550,703 |
| 2,752,723 |
| 2,607,479 |
| 2,864,393 |
| Cash and cash equivalents, beginning of period |
|
5,870,965 |
|
2,281,865 |
|
4,814,189 |
|
2,170,195 |
| Cash and cash equivalents, end of period |
$ |
7,421,668
|
$ |
5,034,588
|
$ |
7,421,668
|
$ |
5,034,588
|
| |
|
| Supplemental cash flow information: |
|
| Interest paid |
$ |
12,304 |
$ |
143,736 |
$ |
23,932 |
$ |
181,400 |
| |
|
| Supplemental disclosure of non-cash investing and financing activities: |
|
Common stock issued on the
acquisition of Infonautics, Inc. |
$ |
- |
$ |
8,489,000 |
$ |
- |
$ |
8,489,000 |
Value assigned to Infonautics,
Inc. outstanding option on
acquisition of Infonautics, Inc. |
|
- |
|
44,000 |
|
- |
|
44,000 |
Promissory note receivable on
disposal of Electric Library
subscription assets
|
|
1,121,480 |
|
- |
|
1,121,480 |
|
- |