Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
|
| |
|
June 30, 2003 
(unaudited) |
|
December 31, 2002 |
| |
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
11,055,646 |
$ |
8,844,829 |
| Restricted cash (note 1) |
|
487,500 |
|
937,500 |
| Accounts receivable |
|
304,583 |
|
338,697 |
| Prepaid expenses and deposits |
|
2,578,602 |
|
1,951,086 |
| Prepaid domain name registry fees, current portion |
|
11,954,743
|
|
11,145,187
|
| Total current assets |
|
26,381,074 |
|
23,217,299 |
| |
| Prepaid domain name registry fees, long-term portion |
|
4,559,420 |
|
3,700,340 |
| Property and equipment |
|
1,325,027 |
|
1,581,321 |
| Investments |
|
353,737 |
|
353,737 |
| Total assets |
$ |
32,619,258
|
$ |
28,852,697
|
| |
|
|
| Liabilities and Stockholders' Equity (Deficiency) |
| Current liabilities: |
| Accounts payable |
$ |
1,395,059 |
$ |
1,605,630 |
| Accrued liabilities |
|
2,324,761 |
|
2,288,412 |
| Customer deposits |
|
2,099,366 |
|
1,957,657 |
| Deferred revenue, current portion |
|
19,496,850
|
|
18,431,100
|
| Total current liabilities |
|
25,316,036 |
|
24,282,799 |
| |
|
|
| Deferred revenue, long-term portion |
|
7,124,357 |
|
5,929,917 |
| |
| Stockholders' equity (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 June 30, 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 |
|
(102,615) |
|
(183,297) |
| Deficit |
|
(58,251,336)
|
|
(59,709,538)
|
| Total stockholders' equity (deficiency) |
|
178,865
|
|
(1,360,019)
|
| |
| Total liabilities and stockholders' equity (deficiency) |
$ |
$32,619,258
|
$ |
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 $487,500 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
June 30, |
Six months ended
June 30, |
| |
2003
|
2002
|
2003
|
2002
|
| Net revenues |
$ |
9,167,299 |
$ |
9,480,187 |
$ |
18,164,213 |
$ |
19,406,720 |
| Cost of revenues |
| 5,682,722
|
| 5,636,988
|
| 11,259,365
|
| 12,231,513
|
| Gross profit |
| 3,484,577 |
| 3,843,199 |
| 6,904,848 |
| 7,175,207 |
| Operating expenses: |
| Sales and marketing (*) |
| 956,887 |
| 800,897 |
| 1,869,223 |
| 1,905,753 |
| Technical operations and development |
| 1,018,925 |
| 958,780 |
| 1,850,694 |
| 2,017,709 |
| General and administrative(*) |
| 1,492,577 |
| 1,281,514 |
| 2,662,427 |
| 2,316,346 |
| Depreciation of property and equipment |
| 441,951 |
| 764,576 |
| 876,916 |
| 1,894,674 |
| Amortization of intangible assets |
| - |
| 55,556 |
| - |
| 222,222 |
| Gain on change in fair value of forward contracts |
| (337,358)
|
| (129,893)
|
| (884,228)
|
| (129,893)
|
| Total operating expenses |
| 3,572,982
|
| 3,731,430
|
| 6,375,032
|
| 8,226,811
|
| |
|
| (Loss) income from operations |
| (88,405) |
| 111,769 |
| 529,816 |
| (1,051,604) |
| |
| Other Income (expenses) |
|
| Interest income, net |
| 30,047 |
| 21,019 |
| 56,496 |
| 38,865 |
| Write down of investment in bigchalk.com |
| - |
| (1,013,335) |
| - |
| (1,013,335) |
| Gain on disposal of Liberty Registry Management Services Inc. |
| 636,277 |
| - |
| 871,890 |
| 1,955,443 |
| Loss on disposal of Eklektix Inc. |
| -
|
| -
|
| -
|
| (44,304)
|
| Total other income (expenses) |
| 666,324
|
| (992,316)
|
| 928,386
|
| 936,669
|
| |
|
| Income (loss) before provision for income taxes |
| 577,919 |
| (880,547) |
| 1,458,202 |
| (114,935) |
| Provision for income taxes |
| - |
| - |
| - |
| - |
| |
| |
| |
| |
| |
| Net income (loss) for the period |
$ |
577,919
|
$ |
(880,547)
|
$ |
1,458,202
|
$ |
(114,935)
|
| |
|
| Basic and diluted earnings (loss) per common share |
$ |
0.01
|
$ |
(0.01)
|
$ |
0.02
|
$ |
-
|
| |
|
| Shares used in computing basic earnings (loss) per common share |
| 64,626,429
|
| 64,626,429
|
| 64,626,429
|
| 64,626,429
|
| Shares used in computing diluted earnings (loss) per common share |
| 64,674,737
|
| 64,626,429
|
| 64,652,926
|
| 64,626,429
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | 27,406 |
$ | 27,406 |
$ | 54,511 |
$ | 54,511 |
| General and administrative |
$ | 13,158 |
$ | 13,159 |
$ | 26,171 |
$ | 26,172 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
June 30, |
Six months ended
June 30, |
| |
2003
|
2002
|
2003
|
2002
|
| Cash provided by (used in): |
|
| Operating activities: |
|
| Net income (loss) for the period |
$ |
577,919 |
$ |
(880,547) |
$ |
1,458,202 |
$ |
(114,935) |
| Items not involving cash: |
|
| Depreciation of property and equipment |
| 441,951 |
| 764,576 |
| 876,916 |
| 1,894,674 |
| Amortization of intangible assets |
| - |
| 55,556 |
| - |
| 222,222 |
| Gain on change in the fair value of forward contracts |
| (337,358) |
| (129,893) |
| (884,228) |
| (129,893) |
| Write down of investment in bigchalk.com |
| - |
| 1,013,335 |
| - |
| 1,013,335 |
| Stock-based compensation |
| 40,564 |
| 40,565 |
| 80,682 |
| 80,683 |
| Gain on disposal of Liberty Registry Management Services |
| (636,277) |
| - |
| (871,890) |
| (1,955,443) |
| Loss on write-off of Eklektix Inc. |
| - |
| - |
| - |
| 44,304 |
| Change in non-cash operating working capital: |
|
| Accounts receivable |
| (38,260) |
| 115,049 |
| 34,114 |
| 322,883 |
| Prepaid expenses and deposits |
| 2,262 |
| (91,615) |
| (3,577) |
| (62,965) |
| Prepaid domain name registry fees |
| (709,212) |
| (935,607) |
| (1,668,636) |
| (1,839,971) |
| Accounts payable |
| (9,148) |
| (134,651) |
| (210,571) |
| (179,149) |
| Accrued liabilities |
| 479,410 |
| (396,762) |
| 296,638 |
| (741,268) |
| Customer deposits |
| 143,523 |
| 236,021 |
| 141,709 |
| 309,217 |
| Deferred revenue |
| 844,488
|
| 1,476,004
|
| 2,260,190
|
| 2,974,449
|
| |
| Cash provided by operating activities |
| 799,862
|
| 1,132,031
|
| 1,509,549
|
| 1,838,143
|
| |
| Financing activities: |
|
| Repayments of obligations under capital leases |
| -
|
| (25,795)
|
| -
|
| (45,571)
|
| Cash used in financing activities |
| -
|
| (25,795)
|
| -
|
| (45,571)
|
| |
| Investing activities: |
|
| Additions to property and equipment |
| (152,425) |
| (242,683) |
| (620,622) |
| (448,057) |
| (Increase)/decrease in restricted cash - being margin security against forward exchange contracts |
| 225,000 |
| (1,196,000) |
| 450,000 |
| (1,196,000) |
| Proceeds on disposal of Liberty Registry Management Services Inc., net of cash disposed |
| 636,277 |
| - |
| 871,890 |
| 938,889 |
| Proceeds on disposal of Eklektix Inc., net of cash disposed |
| -
|
| -
|
| -
|
| (30,628)
|
| |
| Cash provided by (used in) investing activities |
| 708,852
|
| (1,438,683)
|
| 701,268
|
| (735,796)
|
| |
| Increase (decrease) in cash and cash equivalents |
| 1,508,714 |
| (332,447) |
| 2,210,817 |
| 1,056,776 |
| Cash and cash equivalents, beginning of period |
| 9,546,932
|
| 6,203,412
|
| 8,844,829
|
| 4,814,189
|
| |
| Cash and cash equivalents, end of period |
$ |
11,055,646
|
$ |
5,870,965
|
$ |
11,055,646
|
$ |
5,870,965
|
| |
| Supplemental cash flow information: |
|
| Interest paid |
$ |
144
|
$ |
7,130
|
$ |
316
|
$ |
11,628
|