Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
|
| |
|
March 31, 2003 
(unaudited) |
|
December 31, 2002 |
| |
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
9,546,932 |
$ |
8,844,829 |
| Restricted cash (note 1) |
|
712,500 |
|
937,500 |
| Accounts receivable |
|
266,323 |
|
338,697 |
| Prepaid expenses and deposits |
|
2,243,506 |
|
1,951,086 |
| Prepaid domain name registry fees, current portion |
|
11,597,474
|
|
11,145,187
|
| Total current assets |
|
24,366,735 |
|
23,217,299 |
| |
| Prepaid domain name registry fees, long-term portion |
|
4,207,477 |
|
3,700,340 |
| Property and equipment |
|
1,614,553 |
|
1,581,321 |
| Investments |
|
353,737 |
|
353,737 |
| Total assets |
$ |
30,542,502
|
$ |
28,852,697
|
| |
|
|
| Liabilities and Stockholders' Deficiency |
| Current liabilities: |
| Accounts payable |
$ |
1,404,207 |
$ |
1,605,630 |
| Accrued liabilities |
|
1,845,351 |
|
2,288,412 |
| Customer deposits |
|
1,955,843 |
|
1,957,657 |
| Deferred revenue, current portion |
|
19,111,915
|
|
18,431,100
|
| Total current liabilities |
|
24,317,316 |
|
24,282,799 |
| |
|
|
| Deferred revenue, long-term portion |
|
6,664,804 |
|
5,929,917 |
| |
| 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 as of March 31, 2003 and December 31, 2002 |
|
8,540,687 |
|
8,540,687 |
| Additional Paid-in Capital |
|
49,992,129 |
|
49,992,129 |
| Deferred stock–based compensation |
|
(143,179) |
|
(183,297) |
| Deficit |
|
(58,829,255)
|
|
(59,709,538)
|
| Total stockholders' deficiency |
|
(439,618)
|
|
(1,360,019)
|
| |
| Total liabilities and stockholders' deficiency |
$ |
$30,542,502
|
$ |
28,852,697
|
| |
| 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 $712,500 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 March 31, |
| |
2003
|
2002
|
| |
| Net revenues |
$ |
8,996,914 |
$ |
9,926,533 |
| Cost of revenues |
| 5,576,643
|
| 6,594,525
|
| Gross profit |
| 3,420,271 |
| 3,332,008 |
| |
|
| Operating expenses: |
| Sales and marketing (*) |
| 912,336 |
| 1,104,856 |
| Technical operations and development |
| 831,769 |
| 1,058,929 |
| General and administrative(*) |
| 1,169,850 |
| 1,034,832 |
| Depreciation of property and equipment | | 434,965 |
| 1,130,098 |
| Amortization of intangible assets |
| - |
| 166,666 |
| Gain on change in fair value of forward contracts |
| (546,870)
|
| -
|
| Total operating expenses |
| 2,802,050
|
| 4,495,381
|
| |
|
| Income (loss) from operations |
| 618,221 |
| (1,163,373) |
| |
| Other income (expenses) |
|
| Interest income, net |
| 26,449 |
| 17,846 |
| Gain on disposal of Liberty Registry Management Services Inc. |
| 235,613 |
| 1,955,443 |
| Loss on disposal of Eklektix Inc. |
| - |
| (44,304) |
| Total other income (expenses) |
|
262,062
|
|
1,928,985
|
| |
|
| Income before provision for income taxes |
| 880,283 |
| 765,612 |
| Provision for income taxes |
| - |
| - |
| |
| |
| |
| Net income for the period |
$ |
880,283
|
$ |
(765,612)
|
| |
|
| Basic and diluted earnings per share |
$ |
0.01 |
$ |
0.01 |
| |
|
| Shares used in computing basic and diluted earnings per common share |
|
64,626,429
|
|
64,626,429
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | 27,105 |
$ | 27,105 |
| General and administrative |
$ | 13,013 |
$ | 13,013 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
(unaudited)
|
 |
Three months ended March 31, |
| |
2003
|
2002
|
| |
| Cash provided by (used in): |
|
| Operating activities: |
|
| Net Income for the period |
$ |
880,283 |
$ |
765,612 |
| Items not involving cash: |
| |
| |
| Depreciation of property and equipment |
| 434,965 |
| 1,130,098 |
| Amortization of intangible assets |
| - |
| 166,666 |
| Gain on change in the fair value of forward contracts |
| (546,870) |
| - |
| Stock-based compensation |
| 40,118 |
| 40,118 |
| Gain on disposal of Liberty Registry
Management Services Inc. |
| (235,613) |
| (1,955,443) |
| Loss on write-off of Eklektix Inc. |
| - |
| 44,304 |
| Change in non-cash operating working capital: |
|
| Accounts receivable |
| 72,374 |
| 207,834 |
| Prepaid expenses and deposits |
| (5,839) |
| 28,650 |
| Prepaid domain name registry fees |
| (959,424) |
| (904,364) |
| Accounts payable |
| (201,423) |
| (44,498) |
| Accrued liabilities |
| (182,772) |
| (344,506) |
| Customer deposits |
| (1,814) |
| 73,196 |
| Deferred revenue |
| 1,415,702 |
| 1,498,445 |
| Cash provided by operating activities |
|
709,687
|
|
706,112
|
| Financing activities: |
|
| Repayments of obligations under capital leases |
|
-
|
|
(19,776)
|
| Cash used in financing activities |
|
-
|
|
(19,776)
|
| |
| Investing activities: |
|
| Additions to property and equipment |
| (468,197) |
| (205,374) |
| Decrease in restricted cash- being margin security against forward exchange contracts |
| 225,000 |
| - |
| Proceeds on disposal of Liberty Registry Management Services Inc., net of cash disposed |
| 235,613 |
| 938,889 |
| Proceeds on disposal of Eklektix Inc., net of cash disposed |
|
-
|
|
(30,628)
|
| Cash (used in) provided by investing activities |
|
(7,584)
|
|
702,887
|
| |
| Increase in cash and cash equivalents |
| 702,103 |
| 1,389,223 |
| Cash and cash equivalents, beginning of period |
|
8,844,829
|
|
4,814,189
|
| Cash and cash equivalents, end of period |
$ |
9,546,932
|
$ |
6,203,412
|
| |
|
| Supplemental cash flow information: |
|
| Interest paid |
$ |
172 |
$ |
4,498 |