Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
|
| |
|
June 30,
2005 |
|
December 31,
2004 |
| |
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
8,037,839 |
$ |
13,914,988 |
| Short-term investments |
|
7,771,453 |
|
- |
| Restricted cash (note 1) |
|
- |
|
460,398 |
| Accounts receivable |
|
1,271,059 |
|
1,111,082 |
| Prepaid expenses and deposits |
|
1,638,271 |
|
2,156,702 |
| Prepaid domain name registry and ancillary services fees, current portion |
|
17,674,869 |
|
15,601,786 |
| Deferred tax asset, current portion |
|
1,000,000
|
|
1,000,000
|
| Total current assets |
|
37,393,491 |
|
34,244,956 |
| |
| Prepaid domain name registry and ancillary services fees, long-term portion |
|
7,236,442 |
|
6,471,916 |
| Deferred charges |
|
449,350 |
|
- |
| Property and equipment |
|
1,324,571 |
|
1,017,237 |
| Deferred tax asset, long-term portion |
|
2,000,000 |
|
2,000,000 |
| Intangible assets |
|
1,124,160 |
|
1,242,240 |
| Goodwill |
|
1,665,829 |
|
964,467 |
| Investment |
|
353,737 |
|
353,737 |
| Cash held in escrow |
|
616,762 |
|
1,009,650 |
| Total assets |
$ |
52,164,342
|
$ |
47,304,203
|
| |
|
|
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
$ |
1,422,830 |
$ |
1,483,543 |
| Accrued liabilities |
|
2,013,399 |
|
2,688,738 |
| Customer deposits |
|
2,138,393 |
|
2,247,262 |
| Deferred revenue, current portion |
|
26,104,725 |
|
23,648,381 |
| Accreditation fees payable, current portion |
|
589,056
|
|
144,483
|
| Total current liabilities |
|
32,268,403 |
|
30,212,407 |
| |
| Deferred revenue, long term portion |
|
10,540,720 |
|
9,602,599 |
| Accreditation fees payable, long term portion |
|
59,595 |
|
31,816 |
| |
| Stockholders' equity: |
|
|
|
|
| Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding |
|
- |
|
- |
| Common stock - no par value, 250,000,000 shares authorized; 68,092,665 shares issued and outstanding at June 30, 2005 and 66,817,250 shares issued and outstanding at December 31, 2004 |
|
10,429,078 |
|
9,541,277 |
| Additional Paid-in Capital |
|
50,061,866 |
|
50,061,866 |
| Deficit |
|
(51,195,320)
|
|
(52,145,762)
|
| Total stockholders' equity |
|
9,295,624
|
|
7,457,381
|
| |
| Total liabilities and stockholders' equity |
$ |
52,164,342
|
$ |
47,304,203
|
Note 1:
Of the restricted cash, $310,000 represents margin security against a series of forward exchange contracts, and $150,398 represents security against 2 letters of credit. |
Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
June 30, |
Six months ended
June 30, |
| |
2005
|
2004
|
2005
|
2004
|
| Net revenues |
$ |
12,002,138 |
$ |
10,638,965 |
$ |
23,803,844 |
$ |
20,813,874 |
| Cost of revenues |
| 7,586,612
|
| 6,558,400
|
| 14,807,817
|
| 13,003,815
|
| Gross profit |
| 4,415,526 |
| 4,080,565 |
| 8,996,027 |
| 7,810,059 |
| Operating expenses: |
| Sales and marketing (*) |
| 1,166,057 |
| 1,124,726 |
| 2,518,511 |
| 2,345,260 |
| Technical operations and development |
| 1,356,058 |
| 1,140,870 |
| 2,678,843 |
| 2,152,292 |
| General and administrative(*) |
| 1,146,725 |
| 834,503 |
| 2,537,487 |
| 1,907,575 |
| Depreciation of property and equipment |
| 276,870 |
| 317,331 |
| 518,743 |
| 630,317 |
| Amortization of intangible assets |
| 59,040 |
| 39,680 |
| 118,080 |
| 39,680 |
| Total operating expenses |
|
4,004,750
|
|
3,457,110
|
|
8,371,664
|
|
7,075,124
|
| |
|
| Income from operations |
| 410,776 |
| 623,455 |
| 624,363 |
| 734,935 |
| |
| Other income |
|
| Interest income, net |
| 96,856 |
| 42,103 |
| 174,104 |
| 79,736 |
| Total other income |
|
96,856
|
|
42,103
|
|
174,104
|
|
79,736
|
| |
|
| Income before provision for income taxes |
| 507,632 |
| 665,558 |
| 798,467 |
| 814,671 |
| Provision for (recovery of) income taxes |
| - |
| - |
| (151,975) |
| - |
| |
| |
| |
| |
| |
| Net income for the period |
$ |
507,632
|
$ |
665,558
|
$ |
950,442
|
$ |
814,671
|
| |
|
| Basic and diluted earnings per common share |
$ |
0.01
|
$ |
0.01
|
$ |
0.01
|
$ |
0.01
|
| |
|
| Shares used in computing basic earnings per common share |
| 67,863,978
|
| 65,991,867
|
| 67,376,440
|
| 65,341,377
|
| Shares used in computing diluted earnings per common share |
| 71,664,882
|
| 68,744,679
|
| 71,763,526
|
| 67,917,001
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | - |
$ | - |
$ | - |
$ | 16,834 |
| General and administrative |
$ | - |
$ | - |
$ | - |
$ | 3,759 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
(unaudited)
|
| |
Three months ended
June 30, |
Six months ended
June 30, |
| |
2005
|
2004
|
2005
|
2004
|
| Cash provided by (used in): |
|
| Operating activities: |
|
| Net income for the period |
$ |
507,632 |
$ |
665,558 |
$ |
950,442 |
$ |
814,671 |
| Items not involving cash: |
|
| Depreciation of property and equipment |
| 276,870 |
| 317,331 |
| 518,743 |
| 630,317 |
| Amortization of intangible assets |
| 59,040 |
| 39,680 |
| 118,080 |
| 39,680 |
| Unrealized change in the fair value of forward contracts |
| - |
| (110,148) |
| 107,628 |
| (91,263) |
| Stock-based compensation |
| - |
| - |
| - |
| 20,593 |
| Change in non-cash operating working capital: |
|
| Accounts receivable |
| (8,380) |
| (11,616) |
| (159,977) |
| (74,284) |
| Prepaid expenses and deposits |
| 83,467 |
| 75,495 |
| 410,803 |
| 110,615 |
| |
| Prepaid domain name registry and ancillary services fees |
| (835,394) |
| (1,259,188) |
| (2,837,609) |
| (3,296,200) |
| Accounts payable |
| (103,675) |
| 26,192 |
| (60,713) |
| (349,257) |
| Accrued liabilities |
| 335,452 |
| 32,939 |
| (675,339) |
| (222,482) |
| Customer deposits |
| (30,742) |
| 50,481 |
| (108,869) |
| 3,600 |
| Deferred revenue |
| 888,976 |
| 1,569,497 |
| 3,394,465 |
| 4,376,960 |
| Accreditation fees payable |
| 301,495
|
| -
|
| 472,352
|
| -
|
| Cash provided by operating activities |
| 1,474,741
|
| 1,396,221
|
| 2,130,006
|
| 1,962,950
|
| |
| Financing activities: |
|
| Proceeds received on exercise of stock options |
| 5,416 |
| 491,407 |
| 186,439 |
| 644,469 |
| Deferred charges |
| (449,350)
|
| -
|
| (449,350)
|
| -
|
| Cash (used in) provided by financing activities |
| (443,934)
|
| 491,407
|
| (262,911)
|
| 644,469
|
| |
| Investing activities: |
|
| Additions to property and equipment |
| (625,169) |
| (245,106) |
| (826,077) |
| (353,250) |
| Investment in short-term investments |
| (7,771,453) |
| - |
| (7,771,453) |
| - |
| (Decrease) increase in restricted cash - being margin security against forward exchange contracts |
| - |
| (361,250) |
| 460,398 |
| (228,750) |
| Acquisition of Boardtown Corporation, net of cash acquired |
| - |
| (2,019,510) |
| - |
| (2,019,510) |
| Decrease (increase) in cash held in escrow |
| 396,604
|
| (1,000,000)
|
| 392,888
|
| (1,000,000)
|
| Cash used in investing activities |
| (8,000,018)
|
| (3,625,866)
|
| (7,744,244)
|
| (3,601,510)
|
| |
| Decrease in cash and cash equivalents |
| (6,969,211) |
| (1,738,238) |
| (5,877,149) |
| (994,091) |
| Cash and cash equivalents, beginning of period |
| 15,007,050
|
| 13,656,958
|
| 13,914,988
|
| 12,912,811
|
| Cash and cash equivalents, end of period |
$ |
8,037,839
|
$ |
11,918,720
|
$ |
8,037,839
|
$ |
11,918,720
|
| |
| Supplemental cash flow information: |
|
| Interest paid |
$ |
- |
$ |
53 |
$ |
300 |
$ |
53 |
| |
| Supplemental disclosure of non-cash investing and financing activities: |
|
| Common stock issued on the acquisition of Boardtown Corporation |
$ |
701,363 |
$ |
274,540 |
$ |
701,363 |
$ |
274,540 |