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Tucows Inc. |
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Consolidated Balance Sheets |
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(Dollar amounts in U.S. dollars) |
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December 31, 2003 |
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December 31, 2002 |
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| Assets |
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| Current
assets: |
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| Cash
and cash equivalents |
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$ |
12,912,811 |
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$ |
8,844,829 |
| Restricted
cash (note 1) |
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132,500 |
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937,500 |
| Accounts
receivable |
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486,289 |
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338,697 |
| Prepaid
expenses and deposits |
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2,061,948 |
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1,951,086 |
| Prepaid
domain name registry fees, current portion |
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13,204,566 |
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11,145,187 |
| Total
current assets |
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28,798,114 |
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23,217,299 |
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| Prepaid
domain name registry fees, long-term portion |
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5,136,194 |
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3,700,340 |
| Property
and equipment |
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1,048,400 |
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1,581,321 |
| Investments |
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353,737 |
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353,737 |
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| Total
assets |
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$ |
35,336,445 |
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$ |
28,852,697 |
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| Liabilities
and Stockholders' Equity (Deficiency) |
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| Current
liabilities: |
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| Accounts
payable |
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$ |
1,632,294 |
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$ |
1,605,630 |
| Accrued
liabilities |
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2,088,235 |
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2,288,412 |
| Customer
deposits |
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2,160,601 |
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1,957,657 |
| Deferred
revenue, current portion |
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20,715,191 |
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18,431,100 |
| Total
current liabilities |
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26,596,321 |
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24,282,799 |
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| Deferred
revenue, long-term portion |
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7,874,001 |
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5,929,917 |
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| Stockholders'
equity (deficiency): |
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| Preferred
stock - no par value, 1,250,000 shares authorized; none issued and
outstanding |
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- |
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- |
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| Common
stock - no par value, 250,000,000
shares authorized; 64,626,429 shares issued and outstanding at December 31,
2003 and December 31, 2002 |
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8,540,687 |
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8,540,687 |
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| Additional
paid-in capital |
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49,992,129 |
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49,992,129 |
| Deferred
stock-based compensation |
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(20,593) |
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(183,297) |
| Deficit |
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(57,646,100) |
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(59,709,538) |
| Total
stockholders' equity (deficiency) |
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866,123 |
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(1,360,019) |
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| Total
liabilities and stockholders' equity (deficiency) |
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$ |
35,336,445 |
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$ |
28,852,697 |
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| Note
1: |
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In November
2003, the Company entered into a series of forward exchange contracts,
whereby amounts of
U.S.$400,000 or U.S.$650,000 are converted
into Canadian dollars on a semi-monthly basis from January 2004 until
the end of March 2004. As margin security against these contracts,
the Company placed $132,500 into secured
term deposits, which mature on a
monthly basis in line with the contracts.
In June 2002, the Company entered into a series of forward exchange contracts, whereby an
amount
of U.S.$375,000 was 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 matured on a
monthly basis in line with the contracts.
The outstanding
margin security in the amount of $132,500 (2002: $937,500) is reflected as
restricted cash
on the balance sheet. |
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Tucows Inc. |
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Consolidated Statements of Operations |
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(Dollar amounts in U.S. dollars) |
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Three months ended |
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Year ended |
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December 31, |
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December 31, |
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2003 |
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2002 |
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2003 |
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2002 |
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| Net
revenues |
$ |
9,714,774 |
$ |
8,760,374 |
$ |
37,194,747 |
$ |
37,046,375 |
| Cost
of revenues |
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5,923,054 |
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5,462,628 |
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22,990,227 |
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23,107,871 |
| Gross
profit |
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3,791,720 |
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3,297,746 |
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14,204,520 |
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13,938,504 |
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| Operating
expenses: |
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| Sales
and marketing (*) |
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1,058,830 |
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939,062 |
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3,850,081 |
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3,770,913 |
| Technical
operations and development |
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1,067,963 |
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842,196 |
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3,935,061 |
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3,725,966 |
| General
and administrative (*) |
|
953,166 |
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892,232 |
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3,998,073 |
|
4,523,314 |
| Depreciation
of property and equipment |
|
323,230 |
|
402,249 |
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1,489,570 |
|
2,675,836 |
| Amortization
of intangible assets |
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- |
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- |
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- |
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222,222 |
| Total
operating expenses |
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3,403,189 |
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3,075,739 |
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13,272,785 |
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14,918,251 |
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| Income
(loss) from operations |
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388,531 |
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222,007 |
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931,735 |
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(979,747) |
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| Other
income: |
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| Interest
income, net |
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37,319 |
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41,893 |
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131,703 |
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102,057 |
| Gain
on disposal of Electric Library subscription assets |
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- |
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1,121,480 |
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- |
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1,846,717 |
| Gain
on disposal of Liberty Registry Management Services Inc. |
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- |
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- |
|
1,000,000 |
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1,955,443 |
| Loss
on disposal of Eklektix Inc. |
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- |
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- |
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- |
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(44,304) |
| Write-down
of investment in bigchalk.com |
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- |
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- |
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- |
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(1,013,335) |
| Total
other income |
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37,319 |
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1,163,373 |
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1,131,703 |
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2,846,578 |
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| Income
before provision for income taxes |
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425,850 |
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1,385,380 |
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2,063,438 |
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1,866,831 |
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| Provision
for income taxes |
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- |
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- |
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- |
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- |
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| Net
income for the period |
$ |
425,850 |
$ |
1,385,380 |
$ |
2,063,438 |
$ |
1,866,831 |
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| Basic
and diluted earnings per share |
$ |
0.01 |
$ |
0.02 |
$ |
0.03 |
$ |
0.03 |
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| Shares
used in computing basic earnings per common share |
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64,626,429 |
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64,626,429 |
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64,626,429 |
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64,626,429 |
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| Shares
used in computing diluted earnings per common share |
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70,858,586 |
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64,626,429 |
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64,737,429 |
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64,626,429 |
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| (*)
Stock-based compensation has been included in operating expenses as follows: |
| Sales
and marketing |
$ |
27,708 |
$ |
27,708 |
$ |
109,926 |
$ |
109,926 |
| General
and administrative |
$ |
13,304 |
$ |
13,303 |
$ |
52,778 |
$ |
52,777 |
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Tucows Inc. |
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Consolidated Statements of Cash Flows |
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(Dollar amounts in U.S. dollars) |
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Three months ended |
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Year ended |
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December 31, |
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December 31, |
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2003 |
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2002 |
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2003 |
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2002 |
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| Cash
Provided by (used in): |
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| Operating
activities: |
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| Net
income for the period |
$ |
425,850 |
$ |
1,385,380 |
$ |
2,063,438 |
$ |
1,866,831 |
| Items
not involving cash: |
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| Depreciation
of property and equipment |
|
323,230 |
|
402,249 |
|
1,489,570 |
|
2,675,836 |
| Amortization
of intangible assets |
|
- |
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- |
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- |
|
222,222 |
| (Gain)
loss on change in the fair value of forward contracts |
|
297,296 |
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(140,199) |
|
(279,174) |
|
260,289 |
| Gain
on disposal of Liberty RMS |
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- |
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- |
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(1,000,000) |
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- |
| Write-down
of investment in bigchalk.com |
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- |
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- |
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- |
|
1,013,335 |
| Stock-based
compensation |
|
41,012 |
|
41,011 |
|
162,704 |
|
162,703 |
| Gain
on disposal of Electric Library subscription assets |
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- |
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(1,121,480) |
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- |
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(1,846,717) |
| Gain on
disposal of Liberty Registry Management Services |
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- |
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- |
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- |
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(1,955,443) |
| Loss
on write-off of Eklektix Inc. |
|
- |
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- |
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- |
|
44,304 |
| Change
in non-cash operating working capital: |
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- |
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- |
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- |
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- |
| Accounts
receivable |
|
(74,114) |
|
35,338 |
|
(147,592) |
|
306,951 |
| Prepaid
expenses and deposits |
|
(503,288) |
|
(314,026) |
|
(91,977) |
|
(80,272) |
| Prepaid
domain name registry fees |
|
(1,022,621) |
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(167,032) |
|
(3,495,233) |
|
(2,488,384) |
| Accounts
payable |
|
327,472 |
|
356,274 |
|
26,664 |
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(15,669) |
| Accrued
liabilities |
|
81,280 |
|
(125,796) |
|
60,112 |
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(479,898) |
| Customer
deposits |
|
126,291 |
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(63,540) |
|
202,944 |
|
20,915 |
| Deferred
revenue |
|
1,111,283 |
|
121,993 |
|
4,228,175 |
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3,731,415 |
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| Cash
provided by operating activities |
|
1,133,691 |
|
410,172 |
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3,219,631 |
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3,438,418 |
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| Financing
activities: |
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| Repayment
of obligations under capital leases |
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- |
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- |
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- |
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(111,160) |
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| Cash
used in financing activities |
|
- |
|
- |
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- |
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(111,160) |
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| Investing
activities: |
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| Additions
to property and equipment |
|
(175,775) |
|
(235,741) |
|
(956,649) |
|
(844,508) |
| (Increase)
decrease in restricted cash - being margin security against forward exchange
contracts |
|
130,112 |
|
127,250 |
|
805,000 |
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(937,500) |
| Net
proceeds on disposal of Electric Library subscription assets |
|
- |
|
1,121,480 |
|
- |
|
1,577,129 |
| Proceeds
on disposal of Liberty Registry Management Services Inc. , net of cash
disposed |
|
- |
|
- |
|
1,000,000 |
|
938,889 |
| Proceeds
on disposal of Eklektix Inc., net of cash disposed |
|
- |
|
- |
|
- |
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(30,628) |
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| Cash
provided by investing activities |
|
(45,663) |
|
1,012,989 |
|
848,351 |
|
703,382 |
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| Increase
in cash and cash equivalents |
|
1,088,028 |
|
1,423,161 |
|
4,067,982 |
|
4,030,640 |
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| Cash
and cash equivalents, beginning of period |
|
11,824,783 |
|
7,421,668 |
|
8,844,829 |
|
4,814,189 |
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| Cash
and cash equivalents, end of period |
$ |
12,912,811 |
$ |
8,844,829 |
$ |
12,912,811 |
$ |
8,844,829 |
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