Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars) |
| |
|
September 30,
2003
(unaudited) |
|
December 31,
2002
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
11,824,783 |
$ |
8,844,829 |
| Restricted cash (note 1) |
|
262,612 |
|
937,500 |
| Accounts receivable |
|
412,175 |
|
338,697 |
| Prepaid expenses and deposits |
|
1,855,956 |
|
1,951,086 |
| Prepaid domain name registry fees, current portion |
|
12,478,496
|
|
11,145,187
|
| Total current assets |
|
26,834,022 |
|
23,217,299 |
| |
|
|
|
|
| Prepaid domain name registry fees, long term portion |
|
4,839,643 |
|
3,700,340 |
| Property and equipment |
|
1,195,855 |
|
1,581,321 |
| Investments |
|
353,737 |
|
353,737 |
| |
| Total assets |
$ |
33,223,257
|
$ |
28,852,697
|
| |
|
|
| Liabilities and Stockholders' Equity (Deficiency) |
| Current liabilities: |
| Accounts payable |
$ |
1,304,822 |
|
1,605,630 |
| Accrued liabilities |
|
2,006,955 |
|
2,288,412 |
| Customer deposits |
|
2,034,310 |
|
1,957,657 |
| Deferred revenue, current portion |
|
20,006,309
|
|
18,431,100
|
| Total current liabilities |
|
25,352,396 |
|
24,282,799 |
| |
| Deferred revenue, long term portion |
|
7,471,600 |
|
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 at September 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 |
|
(61,605) |
|
(183,297) |
| Deficit |
|
(58,071,950)
|
|
(59,709,538)
|
| Total stockholders' equity (deficiency) |
|
399,261
|
|
(1,360,019)
|
| |
| Total liabilities and stockholders' equity (deficiency) |
$ |
33,223,257
|
$ |
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 $262,612 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, |
| |
2003
|
2002
|
2003
|
2002
|
| Net revenues |
$ |
9,315,760 |
$ |
8,879,281 |
$ |
27,479,973 |
$ |
28,286,001 |
| Cost of revenues |
| 5,807,808
|
| 5,413,730
|
| 17,067,173
|
| 17,645,243
|
| Gross profit |
| 3,507,952 |
| 3,465,551 |
| 10,412,800 |
| 10,640,758 |
| Operating expenses: |
| Sales and marketing (*) |
| 922,028 |
| 926,098 |
| 2,791,251 |
| 2,831,851 |
| Technical operations and development |
| 1,016,404 |
| 866,061 |
| 2,867,098 |
| 2,883,770 |
| General and administrative(*) |
| 1,266,708 |
| 1,444,629 |
| 3,044,907 |
| 3,631,082 |
| Depreciation of property and equipment |
| 289,424 |
| 378,913 |
| 1,166,340 |
| 2,273,587 |
| Amortization of intangible assets |
| -
|
| -
|
| -
|
| 222,222
|
| Total operating expenses |
| 3,494,564
|
| 3,615,701
|
| 9,869,596
|
| 11,842,512
|
| |
|
| Income (loss) from operations |
| 13,388 |
| (150,150) |
| 543,204 |
| (1,201,754) |
| |
| Other income (expenses) |
|
| Interest income, net |
| 37,888 |
| 21,299 |
| 94,384 |
| 60,164 |
| Write down of investment in bigchalk.com |
| - |
| - |
| - |
| (1,013,335) |
Gain on disposal of Electric Library
subscription assets |
| - |
| 725,237 |
| - |
| 725,237 |
Gain on disposal of Liberty Registry
Management Services Inc. |
| 128,110 |
| - |
| 1,000,000 |
| 1,955,443 |
| Loss on disposal of Eklektix Inc. |
| - |
| - |
| - |
| (44,304) |
| Total other income (expenses) |
|
165,998
|
|
746,536
|
|
1,094,384
|
|
1,683,205
|
| |
|
| Income before provision for income taxes |
| 179,386 |
| 596,386 |
| 1,637,588 |
| 481,451 |
| Provision for income taxes |
| - |
| - |
| - |
| - |
| |
| |
| |
| |
| |
| Net income for the period |
$ |
179,386
|
$ |
596,386
|
$ |
1,637,588
|
$ |
481,451
|
| |
|
| Basic and diluted earnings per share |
$ |
0.00
|
$ |
0.01
|
$ |
0.03
|
$ |
0.01
|
| |
|
| Shares used in computing basic earnings per common share |
|
64,626,429
|
|
64,626,429
|
|
64,626,429
|
|
64,626,429
|
| Shares used in computing diluted earnings per common share |
|
64,726,663
|
|
64,626,429
|
|
64,677,776
|
|
64,626,429
|
| |
| |
| (*) 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 |
$ | 13,303 |
$ | 13,302 |
$ | 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
September 30, |
| |
2003
|
2002
|
2003
|
2002
|
| Cash provided by (used in): |
|
| Operating activities: |
|
Net Income (loss)
for the period |
$ | 179,386 |
$ | 596,386 |
$ | 1,637,588 |
$ | 481,451 |
| Items not involving cash: |
|
Depreciation of property
and equipment |
| 289,424 |
| 378,913 |
| 1,166,340 |
| 2,273,587 |
Amortization of intangible
assets |
| - |
| - |
| - |
| 222,222 |
(Gain) loss on change in fair
value of forward contracts |
| 307,758 |
| 530,381 |
| (576,470) |
| 400,488 |
Write down of investment in
bigchalk.com |
| - |
| - |
| - |
| 1,013,335 |
| Stock-based compensation |
| 41,010 |
| 41,009 |
| 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. |
| (128,110) |
| - |
| (1,000,000) |
| (1,955,443) |
Loss on write-off of
Eklektix Inc. |
| - |
| - |
| - |
| 44,304 |
| Change in non-cash operating working capital: |
|
| Accounts receivable |
| (107,592) |
| (51,270) |
| (73,478) |
| 271,613 |
Prepaid expenses and
deposits |
| 414,888 |
| 296,718 |
| 411,311 |
| 233,754 |
Prepaid domain name
registry fees |
| (803,976) |
| (481,381) |
| (2,472,612) |
| (2,321,352) |
| Accounts payable |
| (90,237) |
| (192,794) |
| (300,808) |
| (371,943) |
| Accrued liabilities |
| (317,806) |
| 387,166 |
| (21,168) |
| (354,102) |
| Customer deposits |
| (65,056) |
| (224,762) |
| 76,653 |
| 84,455 |
| Deferred revenue |
| 856,702 |
| 634,973 |
| 3,116,892 |
| 3,609,422 |
| Cash provided by operating activities |
|
576,391
|
|
1,190,102
|
|
2,085,940
|
|
3,028,246
|
| Financing activities: |
|
Repayments of obligations
under capital leases |
| - |
| (65,588) |
| - |
| (111,160) |
Cash used in financing
activities |
|
-
|
|
(65,588)
|
|
-
|
|
(111,160)
|
| |
| Investing activities: |
|
Additions to property and
equipment |
| (160,252) |
| (160,710) |
| (780,874) |
| (608,767) |
(Increase)/Decrease in
restricted cash - being margin
security against
forward exchange contracts |
| 224,888 |
| 131,250 |
| 674,888 |
| (1,064,750) |
Net proceeds on disposal of
Electric Library
subscription assets |
| - |
| 455,649 |
| - |
| 455,649 |
Proceeds on disposal of
Liberty Registry
Management Services Inc.,
net of cash disposed |
| 128,110 |
| - |
| 1,000,000 |
| 938,889 |
Proceeds on disposal of
Eklektix Inc.,
net of cash disposed |
| - |
| - |
| - |
| (30,628) |
| Cash provided by (used in) investing activities |
|
192,746
|
|
426,189
|
|
894,014
|
|
(309,607)
|
| |
|
| Increase in cash and cash equivalents |
| 769,137 |
| 1,550,703 |
| 2,979,954 |
| 2,607,479 |
| Cash and cash equivalents, beginning of period |
|
11,055,646 |
|
5,870,965 |
|
8,844,829 |
|
4,814,189 |
| Cash and cash equivalents, end of period |
$ |
11,824,783
|
$ |
7,421,668
|
$ |
11,824,783
|
$ |
7,421,668
|
| |
|
| Supplemental cash flow information: |
|
| Interest paid |
$ | 39 |
$ | 12,304 |
$ | 355 |
$ | 23,932 |
| |
|
| Supplemental disclosure of non-cash investing and financing activities: |
|
Promissory note receivable on
disposal of Electric Library
subscription assets |
| - |
| 1,121,480 |
| - |
| 1,121,480 |