Tucows Inc.
Consolidated Balance Sheets
(Dollar amounts in U.S. dollars)
|
| |
|
December 31,
2005  |
|
December 31,
2004 |
| |
|
Assets
|
| Current assets: |
| Cash and cash equivalents |
$ |
17,348,088 |
$ |
13,914,988 |
| Short-term investments |
|
1,771,569 |
|
- |
| Restricted cash (note 1) |
|
60,000 |
|
460,398 |
| Interest receivable |
|
39,574 |
|
- |
| Accounts receivable |
|
1,439,329 |
|
1,111,082 |
| Prepaid expenses and deposits |
|
1,999,820 |
|
2,156,702 |
| Prepaid domain name registry and ancillary services fees, current portion |
|
18,175,988 |
|
15,601,786 |
| Deferred tax asset, current portion |
|
1,000,000
|
|
1,000,000
|
| Total current assets |
|
41,834,368 |
|
34,244,956 |
| |
| Prepaid domain name registry and ancillary services fees, long-term portion |
|
7,701,939 |
|
6,471,916 |
| Deferred acquisition costs |
|
46,034 |
|
- |
| Property and equipment |
|
1,542,671 |
|
1,017,237 |
| Deferred tax asset, long-term portion |
|
2,000,000 |
|
2,000,000 |
| Intangible assets |
|
1,006,080 |
|
1,242,240 |
| Goodwill |
|
1,951,067 |
|
964,467 |
| Investments |
|
353,737 |
|
353,737 |
| Cash held in escrow |
|
621,412 |
|
1,009,650 |
| Total assets |
$ |
57,057,308
|
$ |
47,304,203
|
| |
|
|
| Liabilities and Stockholders' Equity |
| Current liabilities: |
| Accounts payable |
$ |
1,655,195 |
$ |
1,483,543 |
| Accrued liabilities |
|
1,417,035 |
|
2,688,738 |
| Customer deposits |
|
2,276,637 |
|
2,247,262 |
| Deferred revenue, current portion |
|
26,790,166 |
|
23,648,381 |
| Accreditation fees payable, current portion |
|
651,811
|
|
144,483
|
| Total current liabilities |
|
32,790,844 |
|
30,212,407 |
| |
|
|
| Deferred revenue, long-term portion |
|
11,079,537 |
|
9,602,599 |
| Accreditation fees payable, long-term portion |
|
94,785 |
|
31,816 |
| |
| Stockholders' equity: |
|
|
|
|
| Preferred stock - no par value, 1,250,000,000 shares authorized; none issued and outstanding |
|
- |
|
- |
| Common stock - no par value, 250,000,000 shares authorized; 71,840,267 shares issued and outstanding at December 31, 2005 and 66,817,250 shares issued and outstanding at December 31, 2004 |
|
12,403,422 |
|
9,541,277 |
| Additional Paid-in Capital |
|
50,061,866 |
|
50,061,866 |
| Deficit |
|
(49,373,146)
|
|
(52,145,762)
|
| Total stockholders' equity |
|
13,092,142
|
|
7,457,381
|
| Total liabilities and stockholders' equity |
$ |
57,057,308
|
$ |
47,304,203
|
| |
Note 1:
The restricted cash represents margin security against a series of forward exchange contracts. |
Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
|
| |
Three months ended
December 31, |
Year ended
December 31, |
| |
2005
|
2004
|
2005
|
2004
|
| Net revenues |
$ |
12,658,399 |
$ |
11,521,955 |
$ |
48,517,039 |
$ |
44,717,155 |
| Cost of revenues |
| 8,160,474
|
| 6,907,776
|
| 30,645,004
|
| 27,566,066
|
| Gross profit |
| 4,497,925
|
| 4,614,179
|
| 17,872,035
|
| 17,151,089
|
| Operating expenses: |
| Sales and marketing (*) |
| 1,185,865 |
| 1,351,649 |
| 4,855,050 |
| 5,067,841 |
| Technical operations and development |
| 1,479,959 |
| 1,289,486 |
| 5,627,426 |
| 4,549,368 |
| General and administrative(*) |
| 987,877 |
| 811,985 |
| 4,346,224 |
| 4,107,981 |
| Depreciation of property and equipment |
| 219,527 |
| 301,259 |
| 951,692 |
| 1,118,734 |
| Amortization of intangible assets |
| 59,040 |
| 59,040 |
| 236,160 |
| 157,760 |
| Total operating expenses |
|
3,932,268
|
|
3,813,419
|
|
16,016,552
|
|
15,001,684
|
| Income from operations |
| 565,657 |
| 800,760 |
| 1,855,483 |
| 2,149,405 |
| Other Income: |
|
| Interest income, net |
| 165,565 |
| 64,216 |
| 462,424 |
| 200,501 |
| Other income |
| 302,734 |
| - |
| 302,734 |
| - |
| Total other income |
|
468,299
|
|
64,216
|
|
765,158
|
|
200,501
|
| Income before provision for income taxes |
| 1,033,956 |
| 864,976 |
| 2,620,641 |
| 2,349,906 |
| Provision for (recovery of) income taxes |
| -
|
| (3,000,000)
|
| (151,975)
|
| (3,150,432)
|
| Net income for the year |
$ |
1,033,956
|
$ |
3,864,976
|
$ |
2,772,616
|
$ |
5,500,338
|
| |
|
| Basic and diluted income per share |
$ |
0.01
|
$ |
0.06
|
$ |
0.04
|
$ |
0.08
|
| |
|
| Shares used in computing basic earnings per common share |
| 71,898,247
|
| 66,817,250
|
| 69,077,329
|
| 66,079,104
|
| |
| Shares used in computing diluted income per common share |
| 74,810,799
|
| 68,893,918
|
| 72,481,204
|
| 68,051,579
|
| |
| |
| (*) Stock-based compensation has been included in operating expenses as follows: |
| Sales and marketing |
$ | - |
$ | - |
$ | - |
$ | 16,835 |
| Technical operations and development |
$ | - |
$ | 69,737 |
$ | - |
$ | 69,737 |
| General and administrative |
$ | - |
$ | - |
$ | - |
$ | 3,759 |
Tucows Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in U.S. dollars)
|
| |
Three months ended
December 31, |
Year ended
December 31, |
| |
2005
|
2004
|
2005
|
2004
|
| Cash provided by (used in): |
|
| Operating activities: |
|
| Net income for the year |
$ |
1,033,956 |
$ |
3,864,976 |
$ |
2,772,616 |
$ |
5,500,338 |
| Items not involving cash: |
|
| Depreciation of property and equipment |
| 219,527 |
| 301,259 |
| 951,692 |
| 1,118,734 |
| Amortization of intangible assets |
| 59,040 |
| 59,040 |
| 236,160 |
| 157,760 |
| Unrealized change in the fair value of forward contracts |
| 212,668 |
| 100,032 |
| 30,119 |
| (88,743) |
| Stock-based compensation |
| - |
| 69,737 |
| - |
| 69,737 |
| Amortization of stock-based compensation |
| - |
| - |
| - |
| 20,593 |
| Deferred taxes |
| - |
| (3,000,000) |
| - |
| (3,000,000) |
| Change in non-cash operating working capital: |
|
| Interest receivable |
| 76,165 |
| - |
| (39,574) |
|
- |
| Accounts receivable |
| (76,442) |
| (89,847) |
| (328,247) |
|
(546,762) |
| Prepaid expenses and deposits |
| (524,722) |
| (180,526) |
| 126,763 |
| (1,333) |
| Prepaid domain name registry fees |
| (430,973) |
|
(806,264) |
| (3,804,225) |
| (3,732,942) |
| Accounts payable |
| (60,214) |
| 139,182 |
| 171,652 |
| (148,751) |
| Accrued liabilities |
| (326,808) |
| (42,295) |
| (1,271,703) |
| 403,404 |
| Customer deposits |
| 106,747 |
| 241,361 |
| 29,375 |
| 77,772 |
| Deferred revenue |
| 550,242 |
| 745,203 |
| 4,618,723 |
| 4,661,788 |
| Accreditation fees payable |
| 302,241
|
| 176,299
|
| 570,297
|
| 176,299
|
| Cash provided by operating activities |
| 1,141,427
|
| 1,578,157
|
| 4,063,648
|
| 4,667,894
|
| |
| Financing activities: |
|
| Proceeds received on exercise of stock options |
| 49,254 |
| - |
| 300,870 |
| 726,050 |
| Net proceeds received on isuance of common stock, net of issue costs |
| -
|
| -
|
| 1,574,675
|
| -
|
| Cash provided by financing activities |
| 49,254
|
| -
|
| 1,875,545
|
| 726,050
|
| |
| Investing activities: |
|
| Additions to property and equipment |
| (349,445) |
| (538,220) |
| (1,477,126) |
| (1,034,709) |
| Investment in short-term investments |
| 5,999,884 |
| - |
| (1,771,569) |
| - |
| Decrease (increase) in restricted cash - being margin security against forward exchange contracts |
| 240,000 |
| (247,898) |
| 400,398 |
| (327,898) |
| Deferred acquisition costs |
| (46,034) |
| - |
| (46,034) |
| - |
| Acquisition of Boardtown Corporation, net of cash acquired |
| - |
| - |
| - |
| (2,019,510) |
| Increase in cash held in escrow |
| (2,330)
|
| (9,650)
|
| 388,238
|
| (1,009,650)
|
| Cash provided by (used in) investing activities |
| 5,842,075
|
| (795,768)
|
| (2,506,093)
|
| (4,391,767)
|
| |
| Increase in cash and cash equivalents |
| 7,032,756 |
| 782,389 |
| 3,433,100 |
| 1,002,177 |
| Cash and cash equivalents, beginning of year |
| 10,315,332
|
| 13,132,599
|
| 13,914,988
|
| 12,912,811
|
| Cash and cash equivalents, end of year |
$ |
17,348,088
|
$ |
13,914,988
|
$ |
17,348,088
|
$ |
13,914,988
|
| |
| Supplemental cash flow information: |
|
| Interest paid |
$ |
- |
$ |
- |
$ |
300 |
$ |
166 |
| |
| Supplemental disclosure of non-cash investing and financing activities: |
|
| Common stock issued on the acquisition of Boardtown Corporation |
$ |
- |
$ |
- |
$ |
986,600 |
$ |
274,540 |