Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | POINTS INTERNATIONAL LTD |
Entity Central Index Key | 0001204413 |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Current Fiscal Year End Date | --12-31 |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 13,241,516 |
Entity Current Reporting Status | Yes |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 69,965 | $ 69,131 |
Cash held in trust and restricted cash | 2,534 | 500 |
Funds receivable from payment processors | 14,302 | 13,512 |
Accounts receivable | 21,864 | 9,318 |
Prepaid taxes | 194 | 383 |
Prepaid expenses and other assets | 2,153 | 3,618 |
Total current assets | 111,012 | 96,462 |
Non-current assets | ||
Property and equipment | 2,371 | 2,351 |
Right-of-use assets | 3,060 | |
Intangible assets | 12,806 | 13,952 |
Goodwill | 7,130 | 7,130 |
Deferred tax assets | 2,105 | 2,645 |
Other assets | 216 | |
Total non-current assets | 27,688 | 26,078 |
Total assets | 138,700 | 122,540 |
Current liabilities | ||
Accounts payable and accrued liabilities | 13,766 | 9,489 |
Income taxes payable | 2,326 | 117 |
Payable to loyalty program partners | 78,270 | 69,749 |
Current portion of lease liabilities | 1,323 | |
Current portion of other liabilities | 797 | 1,680 |
Total current liabilities | 96,482 | 81,035 |
Non-current liabilities | ||
Lease liabilities | 2,209 | |
Other liabilities | 95 | 495 |
Deferred tax liabilities | 722 | |
Total non-current liabilities | 3,026 | 495 |
Total liabilities | 99,508 | 81,530 |
SHAREHOLDERS' EQUITY | ||
Share capital | 45,799 | 53,886 |
Contributed surplus | 4,446 | |
Accumulated other comprehensive income (loss) | 184 | (646) |
Accumulated deficit | (6,791) | (16,676) |
Total shareholders' equity | 39,192 | 41,010 |
Total liabilities and shareholders' equity | $ 138,700 | $ 122,540 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE | ||
Principal | $ 374,484 | $ 351,743 |
Other partner revenue | 26,693 | 24,502 |
Total Revenue | 401,177 | 376,245 |
Direct cost of revenue | 335,722 | 322,341 |
Gross Profit | 65,455 | 53,904 |
OPERATING EXPENSES | ||
Employment costs | 31,860 | 27,890 |
Marketing and communications | 1,608 | 1,460 |
Technology services | 2,577 | 2,210 |
Depreciation and amortization | 4,668 | 3,364 |
Foreign exchange loss (gain) | 401 | (36) |
Other operating expenses | 7,994 | 8,786 |
Total Operating Expenses | 49,108 | 43,674 |
Finance income | (908) | (666) |
Finance costs | 211 | |
INCOME BEFORE INCOME TAXES | 17,044 | 10,896 |
Income tax expense | 5,155 | 3,104 |
NET INCOME | 11,889 | 7,792 |
Items that will subsequently be reclassified to profit or loss: | ||
Unrealized gain (loss) on foreign exchange derivatives designated as cash flow hedges | 556 | (1,394) |
Income tax effect | (147) | 369 |
Reclassification to net income of loss on foreign exchange derivatives designated as cash flow hedges | 550 | 7 |
Income tax effect | (146) | (2) |
Foreign currency translation adjustment | 17 | |
Other comprehensive income (loss) for the period, net of income tax | 830 | (1,020) |
TOTAL COMPREHENSIVE INCOME | $ 12,719 | $ 6,772 |
EARNINGS PER SHARE | ||
Basic earnings per share | $ 0.87 | $ 0.54 |
Diluted earnings per share | $ 0.86 | $ 0.54 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Share Capital [Member] | Contributed Surplus [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] | Total |
Beginning Balance at Dec. 31, 2017 | $ 56,394 | $ 10,647 | $ 374 | $ (24,468) | $ 42,947 |
Beginning Balance (shares) at Dec. 31, 2017 | 14,561,450 | ||||
Statements [Line Items] | |||||
Net income | 7,792 | 7,792 | |||
Other comprehensive income (loss), net of tax | (1,020) | (1,020) | |||
Total comprehensive income | (1,020) | 7,792 | 6,772 | ||
Effect of share option compensation plan | 72 | 72 | |||
Effect of RSU compensation plan | 4,309 | 4,309 | |||
Share issuances - options exercised | $ 1,385 | (1,034) | 351 | ||
Share issuances - options exercised (shares) | 119,521 | ||||
Settlement of RSUs | $ 1,377 | (4,099) | (2,722) | ||
Shares purchased and held in trust | (3,062) | (3,062) | |||
Shares repurchased and cancelled | $ (2,208) | (5,449) | (7,657) | ||
Shares repurchased and cancelled (shares) | (569,107) | ||||
Ending Balance at Dec. 31, 2018 | $ 53,886 | 4,446 | (646) | (16,676) | 41,010 |
Ending Balance (shares) at Dec. 31, 2018 | 14,111,864 | ||||
Statements [Line Items] | |||||
Net income | 11,889 | 11,889 | |||
Other comprehensive income (loss), net of tax | 830 | 830 | |||
Total comprehensive income | 830 | 11,889 | 12,719 | ||
Effect of share option compensation plan | 782 | 782 | |||
Effect of RSU compensation plan | 4,390 | 4,390 | |||
Share issuances - options exercised | $ 28 | (7) | 21 | ||
Share issuances - options exercised (shares) | 2,338 | ||||
Settlement of RSUs | $ 1,504 | (4,626) | (3,122) | ||
Shares purchased and held in trust | (6,350) | (6,350) | |||
Shares repurchased and cancelled | $ (3,269) | $ (4,985) | (2,004) | (10,258) | |
Shares repurchased and cancelled (shares) | (872,686) | ||||
Ending Balance at Dec. 31, 2019 | $ 45,799 | $ 184 | $ (6,791) | $ 39,192 | |
Ending Balance (shares) at Dec. 31, 2019 | 13,241,516 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net income for the period | $ 11,889 | $ 7,792 |
Adjustments for: | ||
Depreciation of property and equipment | 1,211 | 981 |
Amortization of right-of-use assets | 1,164 | |
Amortization of intangible assets | 2,293 | 2,383 |
Unrealized foreign exchange loss (gain) | 394 | (960) |
Equity-settled share-based payment transactions | 5,172 | 4,381 |
Finance costs | 211 | |
Deferred income tax expense | 969 | 279 |
Loss (gain) on derivative contracts designated as cash flow hedges | 1,106 | (1,387) |
Changes in cash held in trust and restricted cash balance | (2,034) | |
Changes in non-cash balances related to operations | 2,200 | 6,552 |
Interest paid | (211) | |
Net cash provided by operating activities | 24,364 | 20,021 |
Cash flows from investing activities | ||
Acquisition of property and equipment | (1,231) | (1,204) |
Additions to intangible assets | (1,147) | (1,070) |
Net cash used in investing activities | (2,378) | (2,274) |
Cash flows from financing activities | ||
Payment of lease liabilities | (1,229) | |
Proceeds from exercise of share options | 21 | 351 |
Shares repurchased and cancelled | (10,258) | (7,657) |
Purchase of share capital held in trust | (6,350) | (3,062) |
Taxes paid on net settlement of RSUs | (3,122) | (2,722) |
Net cash used in financing activities | (20,938) | (13,090) |
Effect of exchange rate fluctuations on cash held | (214) | 960 |
Net increase in cash and cash equivalents | 834 | 5,617 |
Cash and cash equivalents at beginning of the period | 69,131 | 63,514 |
Cash and cash equivalents at end of the period | 69,965 | 69,131 |
Interest Received | 930 | 595 |
Taxes Received | 110 | |
Taxes Paid | $ (1,601) | $ (2,838) |
REPORTING ENTITY
REPORTING ENTITY | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Reporting Entity [Abstract] | |
REPORTING ENTITY [Text Block] | 1. REPORTING ENTITY Points International Ltd. (the "Corporation") is a company domiciled in Canada. The address of the Corporation's registered office is 111 Richmond Street West, Suite 700, Toronto, ON, Canada M5H 2G4. The consolidated financial statements of the Corporation as at and for the year ended December 31, 2019 comprise the Corporation and its wholly-owned subsidiaries: Points International (US) Ltd., Points International (UK) Ltd., Points.com Inc., Points Travel Inc., Points Development (US) Ltd, Points Holdings Ltd. and its wholly-owned subsidiaries, Points International (Singapore) Private Limited and Points International FZ-LLC. The Corporation's shares are publicly traded on the Toronto Stock Exchange ("TSX") as PTS and on the NASDAQ Capital Market ("NASDAQ") as PCOM. The Corporation operates in three reportable segments (see Note 4 below.) Segment Principal Activities Loyalty Currency Retailing Consists primarily of products and services that facilitate the sale or transfer of loyalty currency direct to loyalty program members Platform Partners A portfolio of technology solutions that enables the broad distribution of loyalty currencies across loyalty programs and third party channels. Points Travel White-label travel booking solution for the loyalty industry that allows consumers to earn and redeem their loyalty currency while making hotel bookings and car rentals online The Corporation's operations can be moderately influenced by seasonality. Historically, gross profit is highest in the fourth quarter in each year as certain product offerings and promotional activity in the Loyalty Currency Retailing segment peak during this time. The consolidated financial statements of the Corporation as at and for the year ended December 31, 2019 are available at www.sedar.com www.sec.gov |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Preparation [Abstract] | |
BASIS OF PREPARATION [Text Block] | 2. BASIS OF PREPARATION (a) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The consolidated financial statements were authorized for issue by the Board of Directors on March 4, 2020. (b) Basis of measurement The consolidated financial statements have been prepared on a historical cost basis except for certain assets and liabilities initially recognized in connection with business combinations, and certain financial instruments, which are measured at fair value. (c) Functional and presentation currency These consolidated financial statements are presented in U.S. dollars ("USD"). The functional currency of the Corporation and each of the Corporation's wholly-owned subsidiaries is also USD, except for Points Travel Inc. which uses the Canadian dollar ("CAD") as its functional currency. Items included in the financial statements of each subsidiary are measured using their respective functional currencies and translated for presentation in the consolidated statements as required. All financial information has been rounded to the nearest thousand, except where otherwise indicated. (d) Basis of consolidation Subsidiaries are entities the Corporation controls. Entities over which the Corporation has control are fully consolidated from the date that control commences until the date that control ceases. All intercompany transactions and balances between subsidiaries are eliminated on consolidation. (e) Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Significant changes in these assumptions, including those related to our future business plans and cash flows, could materially change the amounts we record. Actual results may differ from these estimates. On an ongoing basis, the Corporation has applied judgment in the following areas: determining whether revenue and direct costs of revenue should be appropriately presented on a gross or net basis; determining cash generating units ("CGUs") and the allocation of goodwill for the purpose of impairment testing; choosing methods for depreciating and amortizing our property and equipment, right-of-use assets and intangible assets that represent most accurately the consumption of benefits derived from those assets. In making this determination, the Corporation has considered assumptions that are most representative of the economic substance of the intended use of the underlying assets. These same assumptions were used when deciding to designate certain intangible assets as assets with indefinite useful lives as the Corporation believes that there is no limit to the period that these assets are expected to generate net cash inflows; determining which projects qualify for capitalization of direct labour cost to intangible assets; determining lease term and incremental borrowing rate in measuring right-of-use assets and lease liabilities; determining the vesting period of performance options based on achievement of specified non-market performance conditions; determining whether certain hedging relationships and financial instruments qualify for hedge accounting; and interpreting tax rules and regulations. The Corporation also uses significant estimates in the following areas: determining the recoverable amount of financial and non-financial assets when testing for impairment; and determining the fair value of equity-settled share-based payments and derivative instruments. Estimates are based on historical experience adjusted as appropriate for current circumstances and other assumptions that management believes to be reasonable. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The application of the estimates and judgment noted above are discussed in Note 3. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies [abstract] | |
SIGNIFICANT ACCOUNTING POLICIES [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES (a) New standards adopted in 2019 The accounting policies set out below have been applied consistently by the Corporation and its subsidiaries to all years presented in these consolidated financial statements. In addition, the Corporation adopted the following standards issued by the IASB in 2019: IFRS 16, Leases ("IFRS 16") Effective January 1, 2019, the Corporation adopted IFRS 16 which specifies how to recognize, measure, present and disclose leases. The standard introduces a single, on-balance sheet lessee accounting model, requiring lessees to recognize right-of-use assets and lease liabilities representing its obligation to make lease payments, unless the underlying leased asset has a low value or is considered short term. The Corporation adopted IFRS 16 using a modified retrospective approach. Accordingly comparative information presented for 2018 has not been restated. On transition to IFRS 16, the Corporation elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Corporation applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17, Leases Determining whether an Arrangement contains a Lease At transition, for leases classified as operating leases under IAS 17, lease liabilities were measured at the present value of remaining lease payments, discounted at the Corporation's incremental borrowing rate as at January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted for any prepaid or accrued lease payments relating to that lease. The Corporation has elected to use the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17: applied a single discount rate to a portfolio of leases with reasonably similar characteristics; excluded initial direct costs from the measurement of the right-of-use assets at the date of initial application; and relied upon the Corporation's assessment of whether leases are onerous under the requirements of IAS 37, Provisions, contingent liabilities and contingent assets The Corporation has elected not to separate non-lease components and will instead account for the lease and non-lease component as a single lease component. In addition, the Corporation has elected not to recognize right-of-use assets and lease liabilities for some leases of low value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term. The impact on transition to IFRS 16 is summarized below: Jan. 1, 2019 Prepaid expenses and other assets $ (109 ) Right-of-use assets $ 4,102 Current portion of other liabilities $ (120 ) Current portion of lease liabilities $ 1,203 Lease liabilities $ 3,272 Other liabilities $ (362 ) When measuring lease liabilities for leases that were classified as operating leases under IAS 17, the Corporation discounted lease payments using its incremental borrowing rate at January 1, 2019. The weighted average rate applied is 5.30%. Jan. 1, 2019 Operating lease commitment at December 31, 2018 as disclosed in the Corporation's 2018 consolidated financial statements $ 7,401 Discounted using the incremental borrowing rate at January 1, 2019 $ 6,573 Recognition exemption for leases of low-value assets (6 ) Extension options reasonably certain to be exercised 365 Certain costs for which the Corporation is contractually committed under lease contracts but are not accounted for as a lease liability, such as variable lease payments not tied to an index or rate (2,457 ) Lease liabilities recognized at January 1, 2019 $ 4,475 IFRS 16 replaces the straight-line operating lease expense recorded under IAS 17 with a depreciation charge for right-of-use assets and interest expense on lease liabilities, which resulted in a decrease in operating expenses, an increase in depreciation expense and an increase in finance costs. The Corporation has applied judgment to determine the lease term for some lease contracts that include renewal options. The assessment of whether the Corporation is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. The Corporation also make judgements in determining the incremental borrowing rate used in measuring the lease liabilities, reflecting the rate that the Corporation would have to pay for a loan of similar term, with similar security, to obtain an asset of similar value. Other accounting standards adopted in 2019 The following standards or amendments are also effective from January 1, 2019, but they did not have a material impact on the Corporation's consolidated financial statements: IAS 28, Investments in Associates and Joint Ventures; IAS 19, Employee Benefits; and IFRIC 23, Uncertainty over Income Tax Treatments. (b) Revenue recognition The Corporation's revenue is categorized as principal or other partner revenue, and is primarily generated through the sale of loyalty currencies, through services provided to loyalty partners' program members, and through technology and marketing services provided to loyalty partners. Contracts with customers The Corporation records revenue from contracts with customers in accordance with the five steps in IFRS 15, Revenue from Contracts with Customers, as follows: 1. 2. 3. 4. 5. Principal Revenue Principal revenue groups together several streams of revenue that the Corporation realizes in delivering goods or services to various loyalty programs and their customers. The following is a list of revenue streams and the related revenue recognition policy. (i) (ii) (iii) Other Partner Revenue Other partner revenue is primarily transactional revenue for facilitating the sale of loyalty currencies or other goods or services to loyalty program members for which the Corporation takes an agency role. It also includes certain redemption based and earn based transactions facilitated by the Corporation on behalf of loyalty program partners. The Corporation's role as an agent is determined by the contractual arrangement in place with the loyalty program partner and their members. In this instance, the Corporation has determined that it does not obtain control of the loyalty currency or other goods and services prior to transferring them to the customer, due in part to the absence of inventory risk. Other factors considered in making the determination include the fact that the Corporation is not primarily responsible for fulfilling the promise to provide the specified good and generally has limited discretion in establishing the prices for the specified goods. When deciding the most appropriate basis for presenting revenue on either a gross or net basis, both the legal form and substance of the agreements between the Corporation, its partners and their program members are reviewed to determine each party's respective role in the transaction. Where the Corporation's role in a transaction is that of a principal, revenue is recognized on a gross basis, where the gross value of the transaction billed to the customer is recognized as revenue and the costs incurred to purchase the points or miles sold in the transaction are recognized as direct cost of revenue. When the Corporation's role in a transaction is that of an agent, revenue is recognized on a net basis with revenue approximating the margin earned and is recorded in other partner revenue in the consolidated statement of comprehensive income. This determination of whether the Corporation is acting as principal or agent requires the exercise of judgment. In making this assessment, management considers whether the Corporation: acts on behalf of the loyalty partner or the program member in identifying the customer in certain arrangements; controls the good or service being provided, prior to it being transferred to the customer; has primary responsibility for providing the goods and service to the customer; has inventory risk before or after the customer order; and has discretion in establishing prices for the specified goods and services. (c) Foreign currency translation (i) Transactions in currencies other than the Corporation's or its subsidiaries' respective functional currency are recognized at the exchange rates in effect on the transaction date. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not translated. Foreign exchange gains and losses on monetary items are recognized in profit or loss; except for foreign currency derivatives designated as qualifying cash flow hedges, the fair values of which are deferred in accumulated other comprehensive income in shareholders' equity until such time that the hedged transaction affects profit or loss; refer to Notes 3(d)(iv) and 19. (ii) Foreign operations The assets and liabilities of the Corporation's non-USD functional currency subsidiary are translated to USD at exchange rates at the reporting date. The income and expenses of this subsidiary are translated to USD using average exchange rates for the month during which the transactions occurred. Foreign currency differences resulting from translation are recognized in other comprehensive income ("OCI") within the cumulative translation account. (d) Financial instruments All financial assets and financial liabilities are recognized on the Corporation's consolidated statements of financial position when the Corporation becomes a party to the contractual provisions of the instrument. (i) The Corporation's financial instruments as a result of adopting IFRS 9, Financial Instruments, ("IFRS 9") are classified and measured as follows: Asset/Liability Measurement under IFRS 9 Cash and cash equivalents Amortized cost Cash held in trust and restricted cash Amortized cost Funds receivable from payment processors Amortized cost Accounts receivable Amortized cost Accounts payable and accrued liabilities Amortized cost Payable to loyalty program partners Amortized cost Derivatives Measurement Foreign exchange forward contracts Fair value, with changes in fair value for hedges recorded in OCI and ineffective portion recorded in profit or loss. Financial assets held at amortized cost require the asset to be measured using the effective interest method. The amortized cost is reduced by impairment losses. Finance income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Derivatives may be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately in profit or loss. (ii) IFRS 9 requires the expected lifetime credit losses at initial recognition to be considered when assessing impairment of financial assets, which is anticipated to result in earlier recognition of losses. (iii) Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and share options are recognized as a deduction from equity, net of any tax effects. Authorized with no Par Value Unlimited common shares Unlimited preferred shares Issued As at December 31, 2019, all issued shares are fully paid. The holders of common shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share. There were no dividends declared in 2019 (2018 - nil). (iv) Derivative financial instruments, including hedge accounting The Corporation holds derivative financial instruments to hedge its foreign currency risk exposures. These derivatives are designated in accounting hedge relationships and the Corporation applies cash flow hedge accounting. On initial designation of the hedge, the Corporation formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Corporation makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be "highly effective" in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated. For a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net income. Derivatives are recognized initially at fair value; attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Cash flow hedges The Corporation enters into foreign exchange forward contracts to reduce the foreign exchange risk with respect to the Canadian dollar denominated expenses. The changes in fair value of derivatives designated as cash flow hedges are recognized in OCI, except for any ineffective portion, which is recognized immediately in profit or loss. Gains and losses in accumulated other comprehensive income are reclassified to profit or loss in the same period the corresponding hedged items affect profit or loss. The carrying amount of hedging derivatives designated as cash flow hedges that mature within one year is included in prepaid expenses and other assets and/or current portion of other liabilities. If the hedging instrument no longer meets the criteria for hedge accounting, is expired, sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognized in OCI and presented in unrealized gains/losses on cash flow hedges in equity remains there until the forecasted transaction affects profit or loss. If the forecasted transaction is no longer expected to occur, then the balance in OCI is recognized immediately in profit or loss. (e) Cash and cash equivalents Cash equivalents include highly liquid investments (term deposits) with maturities of three months or less at the date of purchase. They are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash equivalents are carried at amortized cost which approximates their fair value because of the short-term nature of the instruments. (f) Cash held in trust and restricted cash Cash held in trust represents funds received from customers, primarily Canadian, not yet remitted to service providers for the Points Travel segment in accordance with certain geographic regulatory requirements. Restricted cash includes cash held as collateral for forward contracts entered into during the normal course of business. (g) Funds receivable from payment processors Funds receivable from payment processors represent amounts collected from customers on behalf of the Corporation and are typically deposited directly to the Corporation's bank account within three business days from the date of sale. (h) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost consists of the purchase price, and any costs directly attributable to bringing the asset to the location and condition for its intended use. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized in profit or loss. (ii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset less its estimated residual value. Depreciation is recognized in profit or loss based on the estimated useful lives of the assets using the following methods and annual rates: Furniture and fixtures Straight-line over 5 years Computer hardware Computer software Leasehold improvements Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. There were no changes in the current year. (i) Right-of-use assets and Lease liabilities At inception of a contract, the Corporation assesses whether a contract is or contains a lease based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The Corporation recognizes right-of-use assets and lease liabilities at the lease commencement date. After the initial adoption date, the right-of-use asset is initially measured at cost, which comprises: The amount of the initial measurement of the lease liability; Any lease payments made at or before the commencement date, less any lease incentives received; Any initial direct costs incurred; and An estimate of costs to dismantle or remove the underlying asset, or restore the asset to the condition required by the terms and conditions of the lease. Subsequent to initial measurement, right-of-use assets are measured at cost less any accumulated depreciation and impairment losses, and adjusted for certain remeasurements of the lease liability. The right-of-use asset are depreciated on a straight-line basis over the term of the lease, or the estimated useful life of the right-of-use assets if the Corporation expects to obtain the ownership of the leased asset at the end of the lease. The lease term includes the non-cancellable period of the lease and optional renewable periods that the Corporation is reasonably certain to extend. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Corporation's incremental borrowing rate. Generally, the Corporation uses its incremental borrowing rate as the discount rate. After initial recognition, the lease liability is measured at amortized cost using the effective interest method. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or if the Corporation changes its assessment of whether it will exercise a purchase option, extension option or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset. The lease liability is also remeasured when the underlying lease contract is amended. When there is a decrease in contract scope, the lease liability and right-of-use asset will decrease relative to this change with the difference recorded in net income prior to the remeasurement of the lease liability. (j) Goodwill & Intangible assets (i) Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of the identifiable tangible and intangible net assets acquired. Goodwill is not amortized. The Corporation tests goodwill for impairment annually, at each year end, to determine whether the carrying value exceeds the recoverable amount, as discussed in Note 3(k). Business combinations Acquisitions of subsidiaries are accounted for using the acquisition method of accounting. Fair value of the consideration paid is calculated as the sum of the fair value at the date of acquisition of: assets acquired; plus equity instruments issued; less liabilities incurred or assumed. Goodwill is measured as the fair value of consideration transferred less the net recognized amount of the identifiable assets acquired and liabilities assumed, all of which are measured at fair value as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. The Corporation uses estimates and judgments to determine the fair value of assets acquired and liabilities assumed at the acquisition date using the best available information, including information from financial markets. The estimates and judgments include key assumptions such as discount rates, attrition rates, and terminal growth rates for performing discounted cash flow analyses. The transaction costs associated with the acquisitions are expensed as incurred. (ii) Internally developed software Certain costs incurred in connection with the development of software to be used internally or for providing services to customers are capitalized once a project has progressed beyond a conceptual, preliminary stage to that of application development. Development costs that are directly attributable to the design and testing of identifiable software products controlled by the Corporation are recognized as intangible assets when the following criteria are met: It is technically feasible to complete the software product so that it will be available for use; Management intends to complete the software product and use or sell it; It can be demonstrated how the software product will generate probable future economic benefits; Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and The expenditure attributable to the software product during its development can be reliably measured. Development costs that qualify for capitalization include both internal and external costs, but are limited to those that are directly related to the specific product. The capitalized development costs are measured at cost less accumulated amortization and accumulated impairment losses. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including costs incurred in the planning stage and operating stage and expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred. Indefinite useful lives Certain intangible assets with indefinite lives, being domain names, patents and trademarks, are not amortized because there is no foreseeable limit to the period that these assets are expected to generate net cash inflows. The Corporation uses judgment to designate these assets as indefinite useful life assets, analyzing relevant factors including the expected usage of the asset, the typical life cycle of the asset and anticipated changes in the market demand for the products and services that the asset helps generate. The Corporation tests indefinite life intangible assets for impairment annually, at each year end. Finite useful lives Intangible assets with finite useful lives are amortized into depreciation and amortization in the consolidated statements of comprehensive income on a straight-line basis over their estimated useful lives as noted in the table below. Useful lives, residual values and the amortization methods are reviewed at least once a year. Amortization periods and methods are outlined below: Customer Relationships Technology (k) Impairment Financial Assets IFRS 9 requires the use of an expected credit loss ("ECL") model for calculating impairment of financial assets. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Non-Financial Assets with Finite Useful Lives In accordance with IAS 36, Impairment of Assets, the Corporation evaluates the carrying value of non-financial assets with finite lives, being property and equipment, right-of-use assets and certain intangible assets, whenever events or changes in circumstances indicate that a potential impairment has occurred. An impairment loss is considered to have occurred if the carrying value of an asset is not recoverable. Goodwill & Indefinite Life Intangible Assets Goodwill and intangible assets that are not amortized are subject to an annual impairment assessment, and the recoverable amount is estimated each year at the same time. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of assessing impairment, assets that do not generate independent cash inflows are grouped at the lowest level for which there are separately identifiable cash inflows, into CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to the CGU or group of CGUs that are expected to benefit from the synergies of the combination. If the recoverable amount of the CGU or group of CGUs to which goodwill and indefinite life intangible assets has been allocated is less than the carrying amount of the CGU or group of CGUs, including goodwill and intangible assets, an impairment loss is recorded in the consolidated statements of comprehensive income. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. The Corporation evaluates impairment losses for potential reversals, other than goodwill impairment, when events or changes in circumstances warrant such consideration. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. (l) Share-based payment transactions The Corporation has two share-based compensation plans for its employees: a share option plan and a share unit plan. The Corporation accounts for the grants under both plans as equity settled share-based compensation arrangements per IFRS 2, Share-based Payment, and accordingly are not re-measured subsequent to the initial grant date. Share option plan The share option plan allows employees to acquire shares of the Corporation through the exercise of share options. Share options have a maximum life of ten years. Under the share option plan, performance options are granted from time to time to certain employees of the Corporation. Vesting of performance options is based on the achievement of specified non-market performance conditions with a life of six years after the date of grant. On grant date, the Corporation estimates the expected vesting date for purpose of estimating option life. Additionally, options other than performance options can be granted under the share option plan, which generally vest over a period of three years and expire at the end of five years from the grant date. For options with graded vesting, each grant in an award is considered a separate grant with a different vesting date, expected life and fair value. The fair value of each grant is recognized in profit or loss as employment costs over its respective expected vesting period with a corresponding increase in contributed surplus. The fair value of each grant is estimated at the date of grant using the Black-Scholes option pricing model incorporating assumptions regarding risk-free interest rates, dividend yield, expected volatility of the Corporation's stock, and a weighted average expected life of the options. Any consideration paid on the exercise of share options is added to share capital along with the related portion previously added to contributed surplus when the compensation costs were charged to profit or loss. Under the plan, share options can only be settled in equity. The share option expense incorporates an expected forfeiture rate, estimated based on expected employee turnover. Annually, the Corporation reassesses the forfeiture rate and the probability of achieving the specified performance metrics for performance options and calculates the cumulative compensation cost of each grant and recognizes an adjustment to the employment cost (recovery) in the current period in the consolidated statement of comprehensive income. (i) Significant judgments, estimates and assumptions Share options are measured at grant date fair value. Estimating fair value requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield. The assumptions and models used for estimating fair value for share options are disclosed in Note 17. Share unit plan On March 7, 2012 the Corporation implemented an employee share unit plan (the "Share Unit Plan") under which employees are periodically granted Restricted Share Units ("RSUs"). Under the share unit plan, the Corporation grants RSUs to its employees and the Board of Directors. The RSUs vest on grant date, over a period of up to three years after the grant date or in full on the third anniversary of the grant date. The fair value of a RSU, determined at the grant date using the volume weighted average trading price per share on the TSX during the immediately preceding five trading days, is recognized over the RSU's vesting period and charged to profit or loss as employment costs with a corresponding increase in contributed surplus. In determining the number of awards that are expected to vest, the Corporation takes into account voluntary termination behaviour as well as trends of actual forfeitures. (m) Payable to loyalty program partners Payable to loyalty program partners includes amounts owing to these partners for loyalty currency purchased by the Corporation as a principal or as an agent collected through ecommerce services for retailing, wholesaling and other loyalty currency services transactions with end users. (n) Deferred revenue Deferred revenue includes proceeds received in advance for technology design and development work and is recognized over the expected life of the partner agreement (see Note 3(b) (iii)). Deferred revenue is comprised of bookings made through the Points Travel platform, which have not yet occurred along with proceeds received by the Corporation for the sale of mileage codes that can be redeemed for multiple loyalty program currencies at a later date. Revenue for bookings through Points Travel is recognized at the completion of the rental while revenue from the sale of these mileage codes is recognized upon redemption. Deferred revenue is included in current portion of other liabilities and other liabilities in the consolidated statements of financial position. (o) Income taxes Income tax expenses comprise current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in OCI. Current taxes are the expected taxes payable or receivable on the taxable income or loss for the period, using tax rates substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previou |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
OPERATING SEGMENTS [Text Block] | 4. OPERATING SEGMENTS The Corporation's reportable segments are Loyalty Currency Retailing, Platform Partners and Points Travel. These operating segments are organized around differences in products and services. The Corporation's measure of segment profit or loss is Contribution, which is defined as gross profit (total revenue less direct cost of revenue) for the relevant operating segment less direct adjusted operating expenses. Direct adjusted operating expenses are expenses which are directly attributable to each operating segment. Assets and liabilities are not provided to the CODM at the operating segment level and are therefore not allocated to the operating segments for reporting purposes. There have been no changes in the Corporation's reportable segments. For the year ended December 31, 2019: Loyalty Currency Retailing Platform Partners Points Travel Total Total revenue $ 391,045 $ 7,577 $ 2,555 $ 401,177 Direct cost of revenue 335,032 665 25 335,722 Gross profit 56,013 6,912 2,530 65,455 Direct adjusted operating expenses 13,830 3,871 6,838 24,539 Contribution $ 42,183 $ 3,041 $ (4,308 ) $ 40,916 Indirect adjusted operating expenses 1 14,328 Finance income (908 ) Finance costs 211 Equity-settled share-based payment expense 5,172 Income tax expense 5,155 Depreciation and amortization 4,668 Foreign exchange loss 401 Net income $ 11,889 For the year ended December 31, 2018(a): Loyalty Currency Retailing Platform Partners Points Travel Total Total revenue $ 366,421 $ 7,979 $ 1,845 $ 376,245 Direct cost of revenue 321,615 615 111 322,341 Gross profit 44,806 7,364 1,734 53,904 Direct adjusted operating expenses 12,941 3,784 5,522 22,247 Contribution $ 31,865 $ 3,580 $ (3,788 ) $ 31,657 Indirect adjusted operating expenses 1 13,718 Finance income (666 ) Equity-settled share-based payment expense 4,381 Income tax expense 3,104 Depreciation and amortization 3,364 Foreign exchange gain (36 ) Net income $ 7,792 (a) The Corporation has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach comparative information is not restated. See Note 3(a). 1 Enterprise-wide disclosures - Geographic information For the year ended December 31 2019 2018 Revenue United States $ 358,993 90% $ 331,625 88% Europe 21,832 5% 25,661 7% Other 20,352 5% 18,959 5% $ 401,177 100% $ 376,245 100% Revenue earned by the Corporation is generated from sales to loyalty program partners directly or from sales directly to members of loyalty programs with which the Corporation partners. Revenues by geographic region are shown above and are based on the country of residence of each of the Corporation's loyalty partners. As at December 31, 2019, substantially all of the Corporation's assets were in Canada. Transaction price allocated to the remaining performance obligations The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers. Total Year 1 Year 2 Year 3 Year 4 Year 5+ Hosting and other $ 633 $ 259 $ 259 $ 115 $ - $ - The Corporation has elected to apply the practical expedient to not disclose information about remaining performance obligations that have original expected durations of one year or less. Dependence on loyalty program partners For the year ended December 31, 2019, there were three (2018 - three) loyalty program partners for which sales to their members individually represented more than 10% of |
CASH HELD IN TRUST AND RESTRICT
CASH HELD IN TRUST AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Restricted Cash And Cash Equivalents [Abstract] | |
CASH HELD IN TRUST AND RESTRICTED CASH [Text Block] | 5. CASH HELD IN TRUST AND RESTRICTED CASH Cash held in trust and restricted cash are comprised of: 2019 2018 Cash held in trust $ 2,534 $ - Restricted cash - 500 Cash held in trust and restricted cash $ 2,534 $ 500 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
ACCOUNTS RECEIVABLE [Text Block] | 6. ACCOUNTS RECEIVABLE The Corporation's accounts receivable are comprised mainly of tax rebate receivables, amounts owing to the Corporation by loyalty program partners for transactions carried out on the Points.com website and amounts owing to the Corporation by companies that perform loyalty program transactions where the Corporation is a partner in facilitating such transactions. The amount is presented net of an allowance for doubtful accounts. Accounts receivable are comprised of: 2019 2018 Accounts receivable before allowance for doubtful accounts $ 22,052 $ 9,472 Allowance for doubtful accounts (188 ) (154 ) Accounts receivable $ 21,864 $ 9,318 The Corporation's exposure to credit and currency risks related to accounts receivable is disclosed in Note 19. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expenses And Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS [Text Block] | 7. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets are comprised of: 2019 2018 Prepaid expenses $ 1,735 $ 1,464 Foreign exchange forward contracts designated as cash flow hedges 229 - Loyalty reward currency inventory 189 2,154 Prepaid expenses and current portion of other assets $ 2,153 $ 3,618 Non-current portion of loyalty reward currency inventory $ 216 $ - Other assets $ 216 $ - |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY AND EQUIPMENT [Text Block] | 8. PROPERTY AND EQUIPMENT Computer Hardware Computer Software Furniture & Fixtures Leasehold Improvements Total Cost Balance at January 1, 2018 $ 3,135 $ 2,209 $ 1,078 $ 1,214 $ 7,636 Additions 664 433 26 81 1,204 Balance at December 31, 2018 $ 3,799 $ 2,642 $ 1,104 $ 1,295 $ 8,840 Additions 705 409 103 14 1,231 Balance at December 31, 2019 $ 4,504 $ 3,051 $ 1,207 $ 1,309 $ 10,071 Computer Hardware Computer Software Furniture & Fixtures Leasehold Improvements Total Depreciation and impairment losses Balance at January 1, 2018 $ 2,547 $ 1,967 $ 743 $ 251 $ 5,508 Depreciation for the year 369 263 110 239 981 Balance at December 31, 2018 $ 2,916 $ 2,230 $ 853 $ 490 $ 6,489 Depreciation for the year 537 326 108 240 1,211 Balance at December 31, 2019 $ 3,453 $ 2,556 $ 961 $ 730 $ 7,700 Carrying amounts At December 31, 2018 $ 883 $ 412 $ 251 $ 805 $ 2,351 At December 31, 2019 $ 1,051 $ 495 $ 246 $ 579 $ 2,371 |
RIGHT OF USE ASSETS
RIGHT OF USE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
RIGHT OF USE ASSETS [Text Block] | 9. RIGHT OF USE ASSETS Office Office Equipment Total Cost Balance at January 1, 2019 $ 4,102 $ - $ 4,102 Additions 36 86 122 Balance at December 31, 2019 $ 4,138 $ 86 $ 4,224 Office Office Equipment Total Depreciation and impairment losses Balance at January 1, 2019 $ - $ - $ - Depreciation for the year 1,151 13 1,164 Balance at December 31, 2019 $ 1,151 $ 13 $ 1,164 Carrying amounts At December 31, 2019 $ 2,987 $ 73 $ 3,060 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS [Text Block] | 10. INTANGIBLE ASSETS Customer Relationships Domain Names (1) Technology ( 2 ) Other (1) Total Cost Balance at January 1, 2018 $ 8,500 $ 4,300 $ 19,947 $ 205 $ 32,952 Additions - - 1,070 - 1,070 Balance at December 31, 2018 $ 8,500 $ 4,300 $ 21,017 $ 205 $ 34,022 Additions - - 1,147 - 1,147 Balance at December 31, 2019 $ 8,500 $ 4,300 $ 22,164 $ 205 $ 35,169 Amortization and impairment losses Balance at January 1, 2018 $ 2,621 $ - $ 15,066 $ - $ 17,687 Amortization for the year 850 - 1,533 - 2,383 Balance at December 31, 2018 $ 3,471 $ - $ 16,599 $ - $ 20,070 Amortization for the year 850 - 1,443 - 2,293 Balance at December 31, 2019 $ 4,321 $ - $ 18,042 $ - $ 22,363 Carrying amounts At December 31, 2018 $ 5,029 $ 4,300 $ 4,418 $ 205 $ 13,952 At December 31, 2019 $ 4,179 $ 4,300 $ 4,122 $ 205 $ 12,806 (1) (2) During the year ended December 31, 2019, an amount of $3,879 was recognized as research and development expenses in employment costs in the consolidated statement of comprehensive income (2018 - $3,768). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Changes in goodwill [abstract] | |
GOODWILL [Text Block] | 11. GOODWILL Cost Balance at January 1, 2018 $ 7,130 Additions - Impairments - Balance at December 31, 2018 $ 7,130 Additions - Impairments - Balance at December 31, 2019 $ 7,130 Impairment testing for cash-generating units containing goodwill as at December 31, 2019 The Corporation tests CGUs or groups of CGUs with indefinite life intangible assets and/or allocated goodwill for impairment as at December 31 of each calendar year. For the purposes of the 2019 annual impairment test, management has determined that the Corporation has three CGUs, being Loyalty Currency Retailing, Platform Partners and Points Travel. The goodwill value has been allocated to the CGUs that are expected to benefit from the synergies of the business combinations in which goodwill arose. When assessing whether or not there is impairment, the Corporation determines the recoverable amount of a CGU based on the value in use, the model which Management believes to result in a higher recoverable amount. Value in use is estimated by discounting estimated future cash flows to their present value. Management estimates the discounted future cash flows and a terminal value. The future cash flows are based on estimates of expected future operating results of the CGUs after considering economic conditions and a general outlook for the CGU's industry. Discount rates consider market rates of return, debt to equity ratios and certain risk premiums, among other things. The terminal value is the value attributed to the CGU's operations beyond the projected time period of the cash flows using a perpetuity rate based on expected economic conditions and a general outlook for the industry. Management has made certain assumptions for the discount and terminal growth rates to reflect variations in expected future cash flows. These assumptions may differ or change quickly depending on economic conditions or other events. It is therefore possible that future changes in assumptions may negatively affect future valuations of CGUs, which could result in impairment losses. The table below provides an overview of the methods and assumptions that Management has used to determine recoverable amounts for the CGUs with indefinite life intangible assets and goodwill. (In thousands of dollars, except years and percentages) Carrying value of goodwill Carrying value of indefinite-life intangible assets Recoverable amount method Period used (years) Terminal growth rate % Pre-tax discount rate % Loyalty Currency Retailing $ 5,681 $ 4,505 Value in Use 5 2.0% 19.4% Points Travel $ 1,449 - Value in Use 5 2.0% 26.0% The annual testing was completed in 2019 and 2018, and was concluded that there was no impairment. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Income Taxes [Abstract] | |
INCOME TAXES [Text Block] | 12. INCOME TAXES 2019 2018 Current tax expense Current year $ 3,999 $ 2,640 Prior years 187 185 Total current tax expense $ 4,186 $ 2,825 Deferred tax expense Current year movement in recognized temporary differences and losses 841 279 Prior years 128 Total deferred tax expense $ 969 $ 279 Total income tax expense $ 5,155 $ 3,104 Reconciliation of effective tax rate The total provision for income taxes differs from that amount which would be computed by applying the Canadian statutory income tax rate to income before income taxes. The reasons for these differences are as follows: 2019 2018 Income tax expense at statutory rate of 26.5% (2018 - 26.5%) $ 4,517 $ 2,887 Increase in taxes resulting from: Non-deductible items 292 124 Other differences 346 93 Income tax expense $ 5,155 $ 3,104 Recognized deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: 2019 Deferred Tax Assets Deferred Tax Liabilities Forward exchange contracts $ - $ (60 ) Property and equipment and Intangible assets 2,175 (2,181 ) Accrued liabilities 938 - Investment tax credits - (27 ) Restricted Share Units 504 - Tax losses 34 - 3,651 (2,268 ) Reclassification (1,546 ) 1,546 $ 2,105 $ (722 ) 2018 Deferred Tax Assets Deferred Tax Liabilities Forward exchange contracts $ 233 $ - Property and equipment and Intangible assets 1,521 (545 ) Accrued liabilities 237 - Investment tax credits - (59 ) Restricted Share Units 1,043 - Tax losses 215 - 3,249 (604 ) Reclassification (604 ) 604 $ 2,645 $ - The Corporation has capital losses of $10,456 (2018 - $10,456) which can be carried forward indefinitely and are not included as part of the recognized deferred tax assets. The Corporation has non-capital loss carry-forwards for income tax purposes in the amount of approximately $125 (2018 - $813). The losses may be used to reduce future years' taxable income and expire approximately as follows: Total 2037 $ 41 2038 5 Total $ 46 Non-capital losses of $79 can be carried forward indefinitely. Management has concluded the deferred tax asset meets the relevant recognition criteria under IFRS. Management's conclusion is supported by management's forecasts and the future reversal of existing taxable temporary differences which are expected to produce sufficient taxable income to realize the deferred tax assets. Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following items: 2019 2018 Capital losses $ 1,385 $ 1,385 The capital losses of $10,456 (2018 – $10,456) can be carried forward indefinitely. Temporary differences associated with Points International Ltd. investments The temporary difference associated with the investments in the Corporation's subsidiaries is $2,384 (2018 - $369). A deferred tax liability associated with these investments has not been recognized as the Corporation controls the timing of the reversal and it is probable that the temporary difference will not reverse in the foreseeable future. As at December 31, 2019 and 2018, no deferred tax liability was recognized for taxes that would be payable on the unremitted earnings of certain subsidiaries of Points International Ltd. as the Corporation has determined that the undistributed profits of its subsidiaries will not be distributed in the foreseeable future. |
LEASE LIABILITIES
LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
LEASE LIABILITIES [Text Block] | 13. LEASE LIABILITIES Reconciliation of movements of lease liabilities to cash flows arising from financing activites: 2019 Balance at January 1, 2019 $ 4,475 New leases 122 Interest expense 211 Interest paid (211 ) Payment of lease liabilities (1,229 ) Effect of changes in foreign exchange rates 164 Balance at December 31, 2019 $ 3,532 During 2019, the expense related to variable lease payments not included in the measurement of lease obligations was $845. The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be made as at December 31, 2019: December 31, 2019 Year 1 $ 1,472 Year 2 1,182 Year 3 1,112 Year 4 18 Year 5+ 9 Total undiscounted lease payments $ 3,793 Carrying value of lease liabilities $ 3,532 |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Liabilities [Abstract] | |
OTHER LIABILITIES [Text Block] | 14. OTHER LIABILITIES 2019 2018 Foreign exchange forward contracts designated as cash flow hedges $ 1 $ 878 Current portion of lease inducements - 120 Current portion of deferred revenue 796 682 Current portion of other liabilities $ 797 $ 1,680 Non-current portion of lease inducements - 362 Non-current portion of deferred revenue 95 133 Other liabilities $ 95 $ 495 Deferred Revenue The following table presents changes in the deferred revenue balances: Balance at December 31, 2018 $ 815 Amounts invoiced and revenue deferred 5,401 Recognition of deferred revenue (5,325 ) Balance at December 31, 2019 $ 891 |
CAPITAL AND OTHER COMPONENTS OF
CAPITAL AND OTHER COMPONENTS OF EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Capital And Other Components Of Equity [Abstract] | |
CAPITAL AND OTHER COMPONENTS OF EQUITY [Text Block] | 15. CAPITAL AND OTHER COMPONENTS OF EQUITY Accumulated other comprehensive income Accumulated other comprehensive income is comprised of the unrealized gains/losses on cash flow hedges and the cumulative translation adjustment for the translation of subsidiary accounts where non-USD functional currency balances are translated to the functional currency of the parent. The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet settled. Normal Course Issuer Bid ("NCIB") On March 8, 2017, the Board of Directors of the Corporation approved a plan to repurchase the Corporation's common shares. On August 9, 2017 the TSX accepted the Corporation’s notice of intention to make a NCIB to repurchase up to 743,468 of its common shares (the "2017 Repurchase"), representing 5% of its 14,869,374 common shares issued and outstanding as of July 31, 2017. The Corporation has entered into an automatic share purchase plan with a broker in order to facilitate the 2017 Repurchase. By June 30, 2018, a total of 743,468 shares were repurchased and cancelled under this NCIB. On August 14, 2018, the NCIB program was renewed with a total of 710,893 shares to be repurchased under this 2018 plan (the "2018 Repurchase"), representing 5% of its 14,217,860 shares issued and outstanding as of July 31, 2018. The Corporation entered into an automatic share purchase plan with a broker in order to facilitate the 2018 Repurchase. On August 14, 2019, the NCIB program was renewed with a total of 679,034 shares to be repurchased under this 2019 plan (the "2019 Repurchase"), representing 5% of its 13,580,692 shares issued and outstanding as of July 31, 2019. The Corporation entered into an automatic share purchase plan with a broker in order to facilitate the 2019 Repurchase. The primary purpose of the 2018 and 2019 Repurchases is for cancellation. Under the automatic share purchase plan, the Corporation may repurchase shares at times when the Corporation would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Repurchases will be made from time to time at the brokers' discretion, based upon parameters prescribed by the Corporation's written agreement. Repurchases may be effected through the facilities of the TSX, the NASDAQ or other alternative trading systems in the United States and Canada. The actual number of common shares purchased and the timing of such purchases will be determined by the broker considering market conditions, stock prices, the Corporation's cash position and other factors. During the year ended December 31, 2019, the Corporation repurchased and cancelled 872,686 common shares (2018 - 569,107) at an aggregate purchase price of $10,258 (2018 - $7,657), resulting in a reduction of share capital and contributed surplus of $3,269 and $4,985 respectively (2018 - $2,208 and $5,449), in addition to an increase in accumulated deficit of $2,004 (2018 - nil). |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE [Text Block] | 16. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: 2019 2018 Net income available to common shareholders for basic and diluted earnings per share $ 11,889 $ 7,792 Weighted average number of common shares outstanding - basic 13,665,593 14,321,186 Effect of dilutive securities 146,473 90,817 Weighted average number of common shares outstanding - diluted 13,812,066 14,412,003 Earnings per share - reported Basic $ 0.87 $ 0.54 Diluted $ 0.86 $ 0.54 a) Diluted earnings per share represents the net income per share if instruments convertible into common shares had been converted at the beginning of the period, or at the time of issuance, if later. In determining diluted earnings per share, the weighted average number of common shares outstanding is increased by the number of shares that would have been issued if all share options with an issue price below the average share price for the period had been exercised at the beginning of the period, or at the time of issuance, if later. The weighted average number of common shares outstanding is also decreased by the number of common shares that could have been repurchased on the open market at the average share price for the period by using the proceeds from the exercise of share options. Share options with a strike price above the average share price for the period are not adjusted because including them would be anti-dilutive. As at December 31, 2019, 158,000 options (2018 - 101,014) were excluded from the diluted weighted average number of common shares outstanding calculation as their effect would have been anti-dilutive. The average market value of the Corporation's shares for purposes of calculating the dilutive effect of share options was based on quoted market prices for the period during which the options were outstanding. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Share Based Payments [Abstract] | |
SHARE-BASED PAYMENTS [Text Block] | 17. SHARE-BASED PAYMENTS Share option plan Under the share option plan, employees are periodically granted share options to purchase common shares at prices not less than the market price of the common shares on the day prior to the date of grant. During the year ended 2019, the Corporation granted 288,000 performance options to certain employees to acquire shares of the Corporation (2018 - 930,000). The Corporation did not grant any share options other than performance-based options during 2018 and 2019. The share option plan authorized the number of options for grant to be determined based on 10% of the larger of the outstanding shares as at March 2, 2016 or any time thereafter. The options available for grant as at December 31, 2019 are shown in the table below: December 31, 2019 Shares outstanding as at March 2, 2016 15,298,602 Percentage of shares outstanding 10% Number of options authorized 1,529,860 Less: options issued & outstanding (1,321,288 ) Options available for grant 208,572 The fair value of each option grant is estimated at the date of grant using the Black-Scholes option pricing model. Expected volatility is determined by the amount the Corporation's daily share price fluctuated over the expected life of the options. The fair value of options granted in 2019 and 2018 were calculated using the following assumptions. 2019 2018 Dividend yield NIL NIL Risk free rate 1.39% - 1.67% 2.06% - 2.09% Expected volatility 40.79% - 44.75% 40.59% - 44.51% Expected life of options in years 2.46 - 6.00 3.10 - 6.00 Weighted average fair value of options granted (CAD) $4.37 - $8.95 $4.24 - $6.16 A summary of the status of the Corporation's share option plan as of December 31, 2019 and 2018, and changes during the years ended on those dates is presented below. 2019 2018 Number of Options Weighted Average Exercise Price (in CAD$) Number of Options Weighted Average Exercise Price (in CAD$) Beginning of year 1,229,040 $15.00 615,843 $16.00 Granted 288,000 $16.76 930,000 $13.93 Exercised (2,338) $12.34 (308,711) $13.51 Expired and forfeited (193,414) $22.69 (8,092) $25.56 End of year 1,321,288 $14.26 1,229,040 $15.00 Exercisable at end of year 195,688 $12.00 299,040 $18.32 For the year ended December 31, 2019: Options outstanding Options exercisable Range of Exercise Prices (in CAD$) Number of options Weighted average remaining contractual life (years) Weighted average exercise price (in CAD$) Number of options Weighted average exercise price (in CAD$) $5.00 to $9.99 22,280 1.19 $ 9.89 22,280 $ 9.89 $10.00 to $14.99 1,011,008 4.15 $ 13.65 173,408 $ 12.27 $15.00 to $19.99 288,000 5.58 $ 16.76 - - 1,321,288 195,688 For the year ended December 31, 2018: Options outstanding Options exercisable Range of Exercise Prices (in CAD$) Number of options Weighted average remaining contractual life (years) Weighted average exercise price (in CAD$) Number of options Weighted average exercise price (in CAD$) $5.00 to $9.99 22,280 2.19 $ 9.89 22,280 $ 9.89 $10.00 to $14.99 1,105,746 5.21 $ 13.67 175,746 $ 12.27 $15.00 to $19.99 1,169 0.75 $ 19.82 1,169 $ 19.82 $20.00 and over 99,845 0.21 $ 30.84 99,845 $ 30.84 1,229,040 299,040 Share unit plan During 2019, 392,898 RSUs were granted (2018 - 442,353). As at December 31, 2019, 496,942 RSUs were outstanding (2018 - 657,727 RSUs). Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2019 657,727 $ 11.50 Granted 392,898 $ 17.01 Vested (497,284) $ 12.42 Forfeited (56,399) $ 14.14 Balance at December 31, 2019 496,942 $ 14.63 Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2018 711,936 $ 10.16 Granted 442,353 $ 13.83 Vested (457,408) $ 11.67 Forfeited (39,154) $ 11.62 Balance at December 31, 2018 657,727 $ 11.50 Under the Share Unit Plan, share units can be settled in cash or shares at the Corporation's discretion. The Corporation intends to settle all share units in equity at the end of the vesting period. To fulfill this obligation, the Corporation has appointed a trustee to administer the program and purchase shares from the open market through a share purchase trust on a periodic basis. During the year ended December 31, 2019, 540,000 share units (2018 - 272,067) were purchased by the trust at a cost of $6,350 (2018 -$3,062). The Corporation paid certain withholding taxes in cash rather than reselling shares held in trust into the market. During the year ended December 31, 2019, 497,284 RSUs (2018 - 457,408) vested, for which the Corporation settled 252,394 RSUs (2018 - 266,610) through the issuance of shares held in trust and paid $3,122 (2018 - $2,722) of withholding taxes. As at December 31, 2019, 487,314 of the Corporation's common shares were held in trust for this purpose (2018 - 199,708). During the year ended 2019, the Corporation recognized employment costs of $5,172 (2018- $4,381) related to all its share-based payment awards. |
OPERATING EXPENSES
OPERATING EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Operating Expenses [Abstract] | |
OPERATING EXPENSES [Text Block] | 18. OPERATING EXPENSES 2019 2018 Office expenses $ 1,286 $ 2,409 Travel and entertainment 2,345 2,118 Professional fees 3,105 2,988 Insurance, bank fees and governance 1,258 1,271 Operating expenses $ 7,994 $ 8,786 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS [Text Block] | 19. FINANCIAL INSTRUMENTS The Corporation has exposure to the following risks from its use of financial instruments: credit risk liquidity risk market risk This note presents information about the Corporation's exposure to each of the above risks, the Corporation's objectives, policies and processes for measuring and managing risk, and the Corporation's management of capital. Further quantitative disclosures are included throughout these consolidated financial statements. Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the Corporation's risk management framework. The Corporation's risk management policies are established to identify and analyze the risks faced by the Corporation, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Corporation's activities. The Corporation, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Corporation's Audit Committee oversees how management monitors compliance with the Corporation's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Corporation. Credit risk Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Corporation's receivables from customers. The Corporation's cash and cash equivalents and short-term investments also subject the Corporation to credit risk. The Corporation has term deposits, consistent with its practice of protecting its capital rather than maximizing investment yield. The Corporation manages credit risk by investing in cash equivalents and term deposits from financial institutions rated at A or R1 or above. The Corporation, in the normal course of business, is exposed to credit risk from its customers and the accounts receivable are subject to normal industry risks. The Corporation usually provides various loyalty currency services to loyalty program operators which normally results in an amount payable to the loyalty program operator in excess of the amount held in accounts receivable. The Corporation also manages and analyzes its accounts receivable on an ongoing basis and hence the Corporation's exposure to bad debts has not been significant. The aging of accounts receivable is as follows: December 31, 2019 December 31, 2018 Current $ 8,411 $ 7,992 Past due 31-60 days 1,051 475 Past due 61-90 days 352 108 Past due 91-120 days 41 228 Past due over 120 days (1) 12,197 669 Trade accounts receivable 22,052 9,472 Less allowance for doubtful accounts (188) (154) $ 21,864 $ 9,318 (1) Amount includes receivables for prior year tax rebate, which was received from the tax authorities subsequent to year end. Refer to Note 24. The following table provides the change in allowance for doubtful accounts for trade accounts receivable: 2019 2018 Balance, beginning of year $ 154 $ 91 Provision for doubtful accounts 69 105 Bad debts written off, net of recoveries (35 ) (42 ) Balance, end of year $ 188 $ 154 The provision for doubtful accounts has been included in operating expenses in the consolidated statements of comprehensive income, and is net of any recoveries of amounts that were provided for in a prior period. The carrying amount of the Corporation's current financial assets represent its maximum exposure to credit risk. Liquidity risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Corporation actively maintains access to adequate funding sources to ensure it has sufficient available funds to meet current and foreseeable financial requirements at a reasonable cost. The following table summarizes the carrying amount and the contractual maturities of both the interest and principal portion of significant financial liabilities as at December 31, 2019 and 2018: Contractual Cash Flow Maturities As at December 31, 2019 Carrying Amount Total Within 1 year 1 year to 3 years 3 years and beyond Accounts payable and accrued liabilities $ 13,766 $ 13,766 $ 13,766 Foreign exchange forward contracts designated as cash flow hedges 1 1 1 $ - $ - Income taxes payable 2,326 2,326 2,326 - - Payable to loyalty program partners 78,270 78,270 78,270 - - $ 94,363 $ 94,363 $ 94,363 $ - $ - Contractual Cash Flow Maturities As at December 31, 2018 Carrying Amount Total Within 1 year 1 year to 3 years 3 years and beyond Accounts payable and accrued liabilities $ 9,489 $ 9,489 $ 9,489 Foreign exchange forward contracts designated as cash flow hedges 878 878 878 $ - $ - Income taxes payable 117 117 117 - - Payable to loyalty program partners 69,749 69,749 69,749 - - $ 80,233 $ 80,233 $ 80,233 $ - $ - Management believes that cash on hand, future cash flows generated from operations and availability of current and future funding will be adequate to repay these financial liabilities when they become due. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Corporation's cash flows or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. Currency risk The Corporation has customers and suppliers that transact in currencies other than the USD which gives rise to a risk that earnings and cash flows may be adversely affected by fluctuations in foreign currency exchange rates. The Corporation is primarily exposed to the Canadian dollar, the EURO and the British Pound. The Corporation has entered into foreign exchange forward contracts to reduce the foreign exchange risk with respect to Canadian dollar denominated disbursements. Revenues earned from the Corporation's partners based in Canada are contracted in and paid in Canadian dollars. The Corporation uses these funds to fund the Canadian operating expenses thereby reducing its exposure to foreign currency fluctuations. As at December 31, 2019, forward contracts with a notional value of $19,860 (December 31, 2018 - $15,110), and in a net asset position of $228 (2018 - $878 in net liability position), with settlement dates extending to December 2020, have been designated as cash flow hedges for hedge accounting treatment under IFRS 9, Financial Instruments The change in fair value of derivatives designated as cash flow hedges is recognized in OCI, except for any ineffective portion, which is recognized immediately in the foreign exchange gain or loss. As at December 31, 2019 and 2018, all hedges were considered effective. Realized gains and losses in accumulated other comprehensive income are reclassified to profit or loss in the same period as the corresponding hedged items are recognized in income. In 2019, total realized losses of $550 were reclassified to employment costs for Canadian dollar currency hedges (2018 - $7 total realized losses). The carrying amount of hedging derivatives designated in cash flow hedges that mature within one year is included in prepaid expenses and other assets and/or current portion of other liabilities. The Corporation holds balances in foreign currencies that give rise to exposure to foreign exchange risk. In general and strictly relating to the foreign exchange ("FX") gain or loss of translating certain non-USD balance sheet accounts, a strengthening US dollar will lead to an FX loss on assets and a gain on liabilities and vice versa. Sensitivity to a +/- 10% movement in all currencies held by the Corporation versus the USD would affect the Corporation's net income by $41 (2018 - $632) excluding the effect of hedging. Significant balances denominated in foreign currencies that are considered financial instruments are as follows: As at December 31, 2019 CAD GBP EUR JPY FX Rates used to translate to USD 0.76750 1.31710 1.12170 0.009213 Balances below in source currency (in thousands) Financial assets Cash and cash equivalents 3,814 4,256 2,826 183,018 Cash held in trust and restricted cash 3,302 - - - Funds receivable from payment processors 422 862 867 26,241 Accounts receivable 1,653 3,129 859 62,993 9,191 8,247 4,552 272,252 Financial liabilities Accounts payable and accrued liabilities 5,239 3,221 102 8,773 Payable to loyalty program partners 4,456 6,111 5,345 89,531 9,695 9,332 5,447 98,304 As at December 31, 2018 CAD GBP EUR JPY FX Rates used to translate to USD 0.73361 1.27356 1.14449 0.00909 Balances below in source currency (in thousands) Financial assets Cash and cash equivalents 3,667 8,430 5,660 97,455 Funds receivable from payment processors 221 740 1,556 30,043 Accounts receivable 691 2,597 774 68,795 4,579 11,767 7,990 196,293 Financial liabilities Accounts payable and accrued liabilities 1,370 2,547 774 18,515 Payable to loyalty program partners 1,380 8,237 5,382 71,868 2,750 10,784 6,156 90,383 Interest rate risk The Corporation does not believe that the results of operations or cash flows would be affected to any significant degree by a sudden change in market interest rates, relative to interest rates on the investments, owing to the short-term nature of the investments. Determination of fair value For financial assets and liabilities that are valued at other than fair value on the consolidated statement of financial position (funds receivable from payment processors, accounts receivable, accounts payable and accrued liabilities and payable to loyalty program partners), fair value approximates the carrying value at December 31, 2019 and 2018 due to their short-term maturities. A number of the Corporation's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. (i) Derivatives The fair value of forward exchange contracts is based on valuations received from the derivative counterparty, which management evaluates for reasonability. Fair values reflect the credit risk of the instrument and include adjustments to take into account the credit risk of the Corporation and the derivative counterparty when appropriate. Fair value hierarchy The Corporation has determined the estimated fair values of its financial instruments based on appropriate valuation methodologies, as disclosed below. However, considerable judgment is required to develop certain of these estimates. Accordingly, these estimated values are not necessarily indicative of the amounts the Corporation could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of each class of financial instruments are discussed below. The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Quoted market prices for an identical asset or liability represent a Level 1 valuation. When quoted market prices are not available, the Corporation maximizes the use of observable inputs within valuation models. When all significant inputs are observable, the valuation is classified as Level 2. Valuations that require the use of significant unobservable inputs are considered Level 3. The carrying value of financial assets and financial liabilities measured at fair value in the consolidated statement of financial position as at December 31, 2019 and 2018 are as follows: 2019 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ 229 $ 229 Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (1 ) (1 ) $ 228 $ 228 2018 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ - $ - Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (878 ) (878 ) $ (878 ) $ (878 ) (i) There were no material financial instruments categorized in Level 1 or Level 3 as at December 31, 2019 and December 31, 2018 and there were no transfers of fair value measurement between Levels 2 and 3 of the fair value hierarchy in the respective periods. |
GUARANTEES AND COMMITMENTS
GUARANTEES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Detail Information About Guarantees And Commitments [Abstract] | |
GUARANTEES AND COMMITMENTS [Text Block] | 20. GUARANTEES AND COMMITMENTS Total Year 1 ( 2 ) Year 2 Year 3 Year 4 Year 5+ Direct cost of revenue (1) $ 649,283 $ 176,595 $ 162,504 $ 130,679 $ 130,116 $ 49,389 (1) (2) |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION [Text Block] | 21. SUPPLEMENTAL CASH FLOW INFORMATION Changes in non-cash balances related to operations are as follows: 2019 2018 Decrease (Increase) in funds receivable from payment processors $ (790 ) $ 1,717 Increase in accounts receivable (12,546 ) (1,577 ) Decrease in prepaid taxes 189 74 Decrease (Increase) in prepaid expenses and other assets (1) 1,356 (1,655 ) Decrease (Increase) in other assets (216 ) 2,661 Increase in accounts payable and accrued liabilities 4,277 1,491 Increase (Decrease) in income taxes payable 2,209 (578 ) Increase (Decrease) in other liabilities (1) (800 ) 237 Increase in payable to loyalty program partners 8,521 4,182 $ 2,200 $ 6,552 (1) |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES [Text Block] | 22. RELATED PARTIES Transactions with key management personnel Compensation In addition to their salaries, the Corporation also provides non-cash benefits to directors and executive officers. Directors and executive officers participate in the Corporation's share-based compensation plans (see Note 17). Key management personnel compensation comprised the following: In thousands of Canadian dollars 2019 2018 Short-term employee salaries and benefits $ 2,260 $ 2,382 Share-based payments 4,119 3,232 Total compensation $ 6,379 $ 5,614 |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | |
CREDIT FACILITIES [Text Block] | 23. CREDIT FACILITIES On December 10, 2019, the Corporation entered into a $50.0 million senior secured revolving credit facility with the Royal Bank of Canada and the Bank of Nova Scotia. With the approval of the lenders, the credit facility can be expanded to a total of $65.0 million. The new credit facility is available for general corporate purposes, including the financing of working capital, capital expenditures, and acquisitions. The credit facility has a three-year maturity with no fixed repayment dates prior to the end of the three-year term ending December 2022. Borrowings under the credit facility are secured by a first charge over substantially all of the Corporation's assets. Depending on the type of advance, interest rates under the credit facility are based on Canada prime rate, US base rate, Banker Acceptance (BA), London Interbank Offered Rate (LIBOR) or Euro Interbank Offered Rate (EURIBOR) plus an additional 0.75% to 2.00%. The Corporation did not have any borrowings under the credit facility as at or during the year ended December 31, 2019. The credit facility contains customary representations and warranties, events of default, and certain financial and non-financial covenants the Corporation is required to comply with. As at December 31, 2019, the Corporation was in compliance with all applicable covenants. On May 31, 2019, the Corporation's previous credit facilities with Royal Bank of Canada expired. The following were the two facilities available to the Corporation prior to the expiration: Revolving operating facility of $8,500 at an interest rate range of 0.35% to 0.75% per annum over the bank base rate. Term loan facility of $5,000 to be utilized solely for the purposes of financing the cash consideration relating to acquisitions made by the Corporation, at an interest rate range of 0.40% to 0.80% per annum over the bank base rate. The Corporation had no borrowing under these previous credit facilities in 2019. Capital management The Corporation's financial strategy is designed and formulated to maintain a flexible capital structure to allow the Corporation the ability to respond to changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust its capital structure, the Corporation could issue new shares, repurchase shares, approve regular or special dividends or issue debt. The Corporation's senior management is responsible for managing capital through regular reviews of financial information to ensure sufficient resources are available to meet operating requirements and investments to support its long term growth strategy. The Board of directors is responsible for overseeing this process. The Corporation's financing and refinancing decisions are made on a specific transaction basis and depend on such things as the Corporation's needs, and market and economic conditions at the time of the transaction. The Corporation may invest in longer or shorter term investments depending on eventual liquidity requirements. The Corporation does not have any externally imposed capital compliance requirements other than those required to maintain its credit facility. There were no changes in the Corporation's approach to capital management during the year. |
PRIOR YEAR TAX REBATE
PRIOR YEAR TAX REBATE | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Prior Year Tax Rebate [Abstract] | |
PRIOR YEAR TAX REBATE [Text Block] | 24. PRIOR YEAR TAX REBATE During the second quarter of 2019, the Corporation filed for a tax rebate of $6,027, net of fees, related to prior years and was accepted by the tax authorities. The amount was included as a reduction of direct cost of revenue in the consolidated statements of comprehensive income. The related receivable and associated fees payable are recorded in accounts receivable and accounts payable and accrued liabilities in the consolidated statements of financial position, respectively. Subsequent to year end, the Corporation received the tax rebate from the tax authorities. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies [abstract] | |
New standards adopted in 2019 [Policy Text Block] | (a) New standards adopted in 2019 The accounting policies set out below have been applied consistently by the Corporation and its subsidiaries to all years presented in these consolidated financial statements. In addition, the Corporation adopted the following standards issued by the IASB in 2019: IFRS 16, Leases ("IFRS 16") Effective January 1, 2019, the Corporation adopted IFRS 16 which specifies how to recognize, measure, present and disclose leases. The standard introduces a single, on-balance sheet lessee accounting model, requiring lessees to recognize right-of-use assets and lease liabilities representing its obligation to make lease payments, unless the underlying leased asset has a low value or is considered short term. The Corporation adopted IFRS 16 using a modified retrospective approach. Accordingly comparative information presented for 2018 has not been restated. On transition to IFRS 16, the Corporation elected to apply the practical expedient to grandfather the assessment of which transactions are leases. The Corporation applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17, Leases Determining whether an Arrangement contains a Lease At transition, for leases classified as operating leases under IAS 17, lease liabilities were measured at the present value of remaining lease payments, discounted at the Corporation's incremental borrowing rate as at January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted for any prepaid or accrued lease payments relating to that lease. The Corporation has elected to use the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17: applied a single discount rate to a portfolio of leases with reasonably similar characteristics; excluded initial direct costs from the measurement of the right-of-use assets at the date of initial application; and relied upon the Corporation's assessment of whether leases are onerous under the requirements of IAS 37, Provisions, contingent liabilities and contingent assets The Corporation has elected not to separate non-lease components and will instead account for the lease and non-lease component as a single lease component. In addition, the Corporation has elected not to recognize right-of-use assets and lease liabilities for some leases of low value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term. The impact on transition to IFRS 16 is summarized below: Jan. 1, 2019 Prepaid expenses and other assets $ (109 ) Right-of-use assets $ 4,102 Current portion of other liabilities $ (120 ) Current portion of lease liabilities $ 1,203 Lease liabilities $ 3,272 Other liabilities $ (362 ) When measuring lease liabilities for leases that were classified as operating leases under IAS 17, the Corporation discounted lease payments using its incremental borrowing rate at January 1, 2019. The weighted average rate applied is 5.30%. Jan. 1, 2019 Operating lease commitment at December 31, 2018 as disclosed in the Corporation's 2018 consolidated financial statements $ 7,401 Discounted using the incremental borrowing rate at January 1, 2019 $ 6,573 Recognition exemption for leases of low-value assets (6 ) Extension options reasonably certain to be exercised 365 Certain costs for which the Corporation is contractually committed under lease contracts but are not accounted for as a lease liability, such as variable lease payments not tied to an index or rate (2,457 ) Lease liabilities recognized at January 1, 2019 $ 4,475 IFRS 16 replaces the straight-line operating lease expense recorded under IAS 17 with a depreciation charge for right-of-use assets and interest expense on lease liabilities, which resulted in a decrease in operating expenses, an increase in depreciation expense and an increase in finance costs. The Corporation has applied judgment to determine the lease term for some lease contracts that include renewal options. The assessment of whether the Corporation is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. The Corporation also make judgements in determining the incremental borrowing rate used in measuring the lease liabilities, reflecting the rate that the Corporation would have to pay for a loan of similar term, with similar security, to obtain an asset of similar value. Other accounting standards adopted in 2019 The following standards or amendments are also effective from January 1, 2019, but they did not have a material impact on the Corporation's consolidated financial statements: IAS 28, Investments in Associates and Joint Ventures; IAS 19, Employee Benefits; and IFRIC 23, Uncertainty over Income Tax Treatments. |
Revenue recognition [Policy Text Block] | (b) Revenue recognition The Corporation's revenue is categorized as principal or other partner revenue, and is primarily generated through the sale of loyalty currencies, through services provided to loyalty partners' program members, and through technology and marketing services provided to loyalty partners. Contracts with customers The Corporation records revenue from contracts with customers in accordance with the five steps in IFRS 15, Revenue from Contracts with Customers, as follows: 1. 2. 3. 4. 5. Principal Revenue Principal revenue groups together several streams of revenue that the Corporation realizes in delivering goods or services to various loyalty programs and their customers. The following is a list of revenue streams and the related revenue recognition policy. (i) (ii) (iii) Other Partner Revenue Other partner revenue is primarily transactional revenue for facilitating the sale of loyalty currencies or other goods or services to loyalty program members for which the Corporation takes an agency role. It also includes certain redemption based and earn based transactions facilitated by the Corporation on behalf of loyalty program partners. The Corporation's role as an agent is determined by the contractual arrangement in place with the loyalty program partner and their members. In this instance, the Corporation has determined that it does not obtain control of the loyalty currency or other goods and services prior to transferring them to the customer, due in part to the absence of inventory risk. Other factors considered in making the determination include the fact that the Corporation is not primarily responsible for fulfilling the promise to provide the specified good and generally has limited discretion in establishing the prices for the specified goods. When deciding the most appropriate basis for presenting revenue on either a gross or net basis, both the legal form and substance of the agreements between the Corporation, its partners and their program members are reviewed to determine each party's respective role in the transaction. Where the Corporation's role in a transaction is that of a principal, revenue is recognized on a gross basis, where the gross value of the transaction billed to the customer is recognized as revenue and the costs incurred to purchase the points or miles sold in the transaction are recognized as direct cost of revenue. When the Corporation's role in a transaction is that of an agent, revenue is recognized on a net basis with revenue approximating the margin earned and is recorded in other partner revenue in the consolidated statement of comprehensive income. This determination of whether the Corporation is acting as principal or agent requires the exercise of judgment. In making this assessment, management considers whether the Corporation: acts on behalf of the loyalty partner or the program member in identifying the customer in certain arrangements; controls the good or service being provided, prior to it being transferred to the customer; has primary responsibility for providing the goods and service to the customer; has inventory risk before or after the customer order; and has discretion in establishing prices for the specified goods and services. |
Foreign currency translation [Policy Text Block] | (c) Foreign currency translation (i) Transactions in currencies other than the Corporation's or its subsidiaries' respective functional currency are recognized at the exchange rates in effect on the transaction date. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated to the functional currency at the exchange rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not translated. Foreign exchange gains and losses on monetary items are recognized in profit or loss; except for foreign currency derivatives designated as qualifying cash flow hedges, the fair values of which are deferred in accumulated other comprehensive income in shareholders' equity until such time that the hedged transaction affects profit or loss; refer to Notes 3(d)(iv) and 19. (ii) Foreign operations The assets and liabilities of the Corporation's non-USD functional currency subsidiary are translated to USD at exchange rates at the reporting date. The income and expenses of this subsidiary are translated to USD using average exchange rates for the month during which the transactions occurred. Foreign currency differences resulting from translation are recognized in other comprehensive income ("OCI") within the cumulative translation account. |
Financial instruments [Policy Text Block] | (d) Financial instruments All financial assets and financial liabilities are recognized on the Corporation's consolidated statements of financial position when the Corporation becomes a party to the contractual provisions of the instrument. (i) The Corporation's financial instruments as a result of adopting IFRS 9, Financial Instruments, ("IFRS 9") are classified and measured as follows: Asset/Liability Measurement under IFRS 9 Cash and cash equivalents Amortized cost Cash held in trust and restricted cash Amortized cost Funds receivable from payment processors Amortized cost Accounts receivable Amortized cost Accounts payable and accrued liabilities Amortized cost Payable to loyalty program partners Amortized cost Derivatives Measurement Foreign exchange forward contracts Fair value, with changes in fair value for hedges recorded in OCI and ineffective portion recorded in profit or loss. Financial assets held at amortized cost require the asset to be measured using the effective interest method. The amortized cost is reduced by impairment losses. Finance income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Derivatives may be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately in profit or loss. (ii) IFRS 9 requires the expected lifetime credit losses at initial recognition to be considered when assessing impairment of financial assets, which is anticipated to result in earlier recognition of losses. (iii) Share capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of common shares and share options are recognized as a deduction from equity, net of any tax effects. Authorized with no Par Value Unlimited common shares Unlimited preferred shares Issued As at December 31, 2019, all issued shares are fully paid. The holders of common shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share. There were no dividends declared in 2019 (2018 - nil). (iv) Derivative financial instruments, including hedge accounting The Corporation holds derivative financial instruments to hedge its foreign currency risk exposures. These derivatives are designated in accounting hedge relationships and the Corporation applies cash flow hedge accounting. On initial designation of the hedge, the Corporation formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Corporation makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be "highly effective" in offsetting the changes in the fair value or cash flows of the respective hedged items during the period for which the hedge is designated. For a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported net income. Derivatives are recognized initially at fair value; attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Cash flow hedges The Corporation enters into foreign exchange forward contracts to reduce the foreign exchange risk with respect to the Canadian dollar denominated expenses. The changes in fair value of derivatives designated as cash flow hedges are recognized in OCI, except for any ineffective portion, which is recognized immediately in profit or loss. Gains and losses in accumulated other comprehensive income are reclassified to profit or loss in the same period the corresponding hedged items affect profit or loss. The carrying amount of hedging derivatives designated as cash flow hedges that mature within one year is included in prepaid expenses and other assets and/or current portion of other liabilities. If the hedging instrument no longer meets the criteria for hedge accounting, is expired, sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognized in OCI and presented in unrealized gains/losses on cash flow hedges in equity remains there until the forecasted transaction affects profit or loss. If the forecasted transaction is no longer expected to occur, then the balance in OCI is recognized immediately in profit or loss. |
Cash and cash equivalents [Policy Text Block] | (e) Cash and cash equivalents Cash equivalents include highly liquid investments (term deposits) with maturities of three months or less at the date of purchase. They are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash equivalents are carried at amortized cost which approximates their fair value because of the short-term nature of the instruments. |
Cash held in trust and restricted cash [Policy Text Block] | (f) Cash held in trust and restricted cash Cash held in trust represents funds received from customers, primarily Canadian, not yet remitted to service providers for the Points Travel segment in accordance with certain geographic regulatory requirements. Restricted cash includes cash held as collateral for forward contracts entered into during the normal course of business. |
Funds receivable from payment processors [Policy Text Block] | (g) Funds receivable from payment processors Funds receivable from payment processors represent amounts collected from customers on behalf of the Corporation and are typically deposited directly to the Corporation's bank account within three business days from the date of sale. |
Property and equipment [Policy Text Block] | (h) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost consists of the purchase price, and any costs directly attributable to bringing the asset to the location and condition for its intended use. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized in profit or loss. (ii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset less its estimated residual value. Depreciation is recognized in profit or loss based on the estimated useful lives of the assets using the following methods and annual rates: Furniture and fixtures Straight-line over 5 years Computer hardware Computer software Leasehold improvements Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. There were no changes in the current year. |
Right-of-use assets and Lease liabilities [Policy Text Block] | (i) Right-of-use assets and Lease liabilities At inception of a contract, the Corporation assesses whether a contract is or contains a lease based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The Corporation recognizes right-of-use assets and lease liabilities at the lease commencement date. After the initial adoption date, the right-of-use asset is initially measured at cost, which comprises: The amount of the initial measurement of the lease liability; Any lease payments made at or before the commencement date, less any lease incentives received; Any initial direct costs incurred; and An estimate of costs to dismantle or remove the underlying asset, or restore the asset to the condition required by the terms and conditions of the lease. Subsequent to initial measurement, right-of-use assets are measured at cost less any accumulated depreciation and impairment losses, and adjusted for certain remeasurements of the lease liability. The right-of-use asset are depreciated on a straight-line basis over the term of the lease, or the estimated useful life of the right-of-use assets if the Corporation expects to obtain the ownership of the leased asset at the end of the lease. The lease term includes the non-cancellable period of the lease and optional renewable periods that the Corporation is reasonably certain to extend. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Corporation's incremental borrowing rate. Generally, the Corporation uses its incremental borrowing rate as the discount rate. After initial recognition, the lease liability is measured at amortized cost using the effective interest method. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or if the Corporation changes its assessment of whether it will exercise a purchase option, extension option or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset. The lease liability is also remeasured when the underlying lease contract is amended. When there is a decrease in contract scope, the lease liability and right-of-use asset will decrease relative to this change with the difference recorded in net income prior to the remeasurement of the lease liability. |
Goodwill & Intangible assets [Policy Text Block] | (j) Goodwill & Intangible assets (i) Goodwill Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value of the identifiable tangible and intangible net assets acquired. Goodwill is not amortized. The Corporation tests goodwill for impairment annually, at each year end, to determine whether the carrying value exceeds the recoverable amount, as discussed in Note 3(k). Business combinations Acquisitions of subsidiaries are accounted for using the acquisition method of accounting. Fair value of the consideration paid is calculated as the sum of the fair value at the date of acquisition of: assets acquired; plus equity instruments issued; less liabilities incurred or assumed. Goodwill is measured as the fair value of consideration transferred less the net recognized amount of the identifiable assets acquired and liabilities assumed, all of which are measured at fair value as of the acquisition date. When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. The Corporation uses estimates and judgments to determine the fair value of assets acquired and liabilities assumed at the acquisition date using the best available information, including information from financial markets. The estimates and judgments include key assumptions such as discount rates, attrition rates, and terminal growth rates for performing discounted cash flow analyses. The transaction costs associated with the acquisitions are expensed as incurred. (ii) Internally developed software Certain costs incurred in connection with the development of software to be used internally or for providing services to customers are capitalized once a project has progressed beyond a conceptual, preliminary stage to that of application development. Development costs that are directly attributable to the design and testing of identifiable software products controlled by the Corporation are recognized as intangible assets when the following criteria are met: It is technically feasible to complete the software product so that it will be available for use; Management intends to complete the software product and use or sell it; It can be demonstrated how the software product will generate probable future economic benefits; Adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and The expenditure attributable to the software product during its development can be reliably measured. Development costs that qualify for capitalization include both internal and external costs, but are limited to those that are directly related to the specific product. The capitalized development costs are measured at cost less accumulated amortization and accumulated impairment losses. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including costs incurred in the planning stage and operating stage and expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred. Indefinite useful lives Certain intangible assets with indefinite lives, being domain names, patents and trademarks, are not amortized because there is no foreseeable limit to the period that these assets are expected to generate net cash inflows. The Corporation uses judgment to designate these assets as indefinite useful life assets, analyzing relevant factors including the expected usage of the asset, the typical life cycle of the asset and anticipated changes in the market demand for the products and services that the asset helps generate. The Corporation tests indefinite life intangible assets for impairment annually, at each year end. Finite useful lives Intangible assets with finite useful lives are amortized into depreciation and amortization in the consolidated statements of comprehensive income on a straight-line basis over their estimated useful lives as noted in the table below. Useful lives, residual values and the amortization methods are reviewed at least once a year. Amortization periods and methods are outlined below: Customer Relationships Technology |
Impairment [Policy Text Block] | (k) Impairment Financial Assets IFRS 9 requires the use of an expected credit loss ("ECL") model for calculating impairment of financial assets. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Non-Financial Assets with Finite Useful Lives In accordance with IAS 36, Impairment of Assets, the Corporation evaluates the carrying value of non-financial assets with finite lives, being property and equipment, right-of-use assets and certain intangible assets, whenever events or changes in circumstances indicate that a potential impairment has occurred. An impairment loss is considered to have occurred if the carrying value of an asset is not recoverable. Goodwill & Indefinite Life Intangible Assets Goodwill and intangible assets that are not amortized are subject to an annual impairment assessment, and the recoverable amount is estimated each year at the same time. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of assessing impairment, assets that do not generate independent cash inflows are grouped at the lowest level for which there are separately identifiable cash inflows, into CGUs. CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to the CGU or group of CGUs that are expected to benefit from the synergies of the combination. If the recoverable amount of the CGU or group of CGUs to which goodwill and indefinite life intangible assets has been allocated is less than the carrying amount of the CGU or group of CGUs, including goodwill and intangible assets, an impairment loss is recorded in the consolidated statements of comprehensive income. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. The Corporation evaluates impairment losses for potential reversals, other than goodwill impairment, when events or changes in circumstances warrant such consideration. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. |
Share-based payment transactions [Policy Text Block] | (l) Share-based payment transactions The Corporation has two share-based compensation plans: a share option plan and a share unit plan. The Corporation accounts for the grants under both plans as equity settled share-based compensation arrangements per IFRS 2, Share-based Payment, and accordingly are not re-measured subsequent to the initial grant date. Share option plan The share option plan allows employees to acquire shares of the Corporation through the exercise of share options. Share options have a maximum life of ten years. Under the share option plan, performance options are granted from time to time to certain employees of the Corporation. Vesting of performance options is based on the achievement of specified non-market performance conditions with a life of six years after the date of grant. On grant date, the Corporation estimates the expected vesting date for purpose of estimating the option life. Additionally, options other than performance options can be granted under the share option plan, which generally vest over a period of three years and expire at the end of five years from the grant date. For options with graded vesting, each grant in an award is considered a separate grant with a different vesting date, expected life and fair value. The fair value of each grant is recognized in profit or loss as employment costs over its respective expected vesting period with a corresponding increase in contributed surplus. The fair value of each grant is estimated at the date of grant using the Black-Scholes option pricing model incorporating assumptions regarding risk-free interest rates, dividend yield, expected volatility of the Corporation's stock, and a weighted average expected life of the options. Any consideration paid on the exercise of share options is added to share capital along with the related portion previously added to contributed surplus when the compensation costs were charged to profit or loss. Under the plan, share options can only be settled in equity. The share option expense incorporates an expected forfeiture rate, estimated based on expected employee turnover. Annually, the Corporation reassesses the forfeiture rate and the probability of achieving the specified performance metrics for performance options and calculates the cumulative compensation cost of each grant and recognizes an adjustment to the employment cost (recovery) in the current period in the consolidated statement of comprehensive income. (i) Significant judgments, estimates and assumptions Share options are measured at grant date fair value. Estimating fair value requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield. The assumptions and models used for estimating fair value for share options transactions are disclosed in Note 17. Share unit plan In determining the number of awards that are expected to vest, the Corporation takes into account voluntary termination behaviour as well as trends of actual forfeitures. |
Payable to loyalty program partners [Policy Text Block] | (m) Payable to loyalty program partners Payable to loyalty program partners includes amounts owing to these partners for loyalty currency purchased by the Corporation as a principal or as an agent collected through ecommerce services for retailing, wholesaling and other loyalty currency services transactions with end users. |
Deferred revenue [Policy Text Block] | (n) Deferred revenue Deferred revenue includes proceeds received in advance for technology design and development work and is recognized over the expected life of the partner agreement (see Note 3(b) (iii)). Deferred revenue is comprised of bookings made through the Points Travel platform, which have not yet occurred along with proceeds received by the Corporation for the sale of mileage codes that can be redeemed for multiple loyalty program currencies at a later date. Revenue for bookings through Points Travel is recognized at the completion of the rental while revenue from the sale of these mileage codes is recognized upon redemption. Deferred revenue is included in current portion of other liabilities and other liabilities in the consolidated statements of financial position. |
Income taxes [Policy Text Block] | (o) Income taxes Income tax expenses comprise current and deferred taxes. Current taxes and deferred taxes are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in OCI. Current taxes are the expected taxes payable or receivable on the taxable income or loss for the period, using tax rates substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previous years. Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for: temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and taxable temporary differences arising on the initial recognition of goodwill. Deferred tax assets and liabilities are measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been substantively enacted by the reporting date. In determining the amount of current and deferred tax, the Corporation takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Corporation believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. When new information becomes available that causes the Corporation to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Earnings per share (EPS) [Policy Text Block] | (p) Earnings per share ("EPS") The Corporation presents basic and diluted earnings per share data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the Corporation by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by dividing the profit or loss attributable to common shareholders by the weighted average number of common shares outstanding adjusted for the effects of all dilutive potential common shares. |
Segment reporting [Policy Text Block] | (q) Segment reporting The Corporation determines its reportable segments based on, among other things, how the Corporation's chief operating decision maker ("CODM"), the Chief Executive Officer, regularly reviews the Corporation's operations and performance. The CODM reviews gross profit, which is defined as total revenue less direct cost of revenue, and segment profit (loss) represented by Contribution, which is defined as gross profit for the relevant operating segment less direct adjusted operating expenses as the key measure of profitability for the purpose of assessing performance for each operating segment and to make decisions about the allocation of resources. Direct adjusted operating expenses are expenses which are directly attributable to each operating segment and the Corporation accounts for transactions between reportable segments in the same way that it accounts for transactions with external parties and eliminates them on consolidation. The Corporation makes significant judgments in determining its operating segments. These are components that engage in business activities from which they may earn revenue and incur expenses, for which operating results are regularly reviewed by the Corporation's CODM to make decisions about resources to be allocated and to assess component performance, and for which discrete financial information is available. |
New standards and interpretations not yet adopted [Policy Text Block] | (r) New standards and amendments not yet adopted The IASB has issued amendments to the following standards: IAS 1, Presentation of Financial Statements; and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. These amendments have not yet been adopted by the Corporation. Although the Corporation is currently assessing the impacts of these amendments it does not expect them to have a material impact on the Corporation's consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies [abstract] | |
Disclosure detailed information about impact on transition to IFRS sixteen [Table Text Block] | Jan. 1, 2019 Prepaid expenses and other assets $ (109 ) Right-of-use assets $ 4,102 Current portion of other liabilities $ (120 ) Current portion of lease liabilities $ 1,203 Lease liabilities $ 3,272 Other liabilities $ (362 ) |
Disclosure detailed information about lease liabilities operating leases [Table Text Block] | Jan. 1, 2019 Operating lease commitment at December 31, 2018 as disclosed in the Corporation's 2018 consolidated financial statements $ 7,401 Discounted using the incremental borrowing rate at January 1, 2019 $ 6,573 Recognition exemption for leases of low-value assets (6 ) Extension options reasonably certain to be exercised 365 Certain costs for which the Corporation is contractually committed under lease contracts but are not accounted for as a lease liability, such as variable lease payments not tied to an index or rate (2,457 ) Lease liabilities recognized at January 1, 2019 $ 4,475 |
Disclosure of detailed information about estimated useful life or depreciation rate [Table Text Block] | Furniture and fixtures Straight-line over 5 years Computer hardware Straight-line over 3 years Computer software Straight-line over 3 years Leasehold improvements Straight-line over shorter of useful life or the lease term |
Disclosure of detailed information about finite useful lives of intangible assets [Table Text Block] | Customer Relationships Technology |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |
Disclosure of detailed information about revenue and expenses by reportable segments [Table Text Block] | For the year ended December 31, 2019: Loyalty Currency Retailing Platform Partners Points Travel Total Total revenue $ 391,045 $ 7,577 $ 2,555 $ 401,177 Direct cost of revenue 335,032 665 25 335,722 Gross profit 56,013 6,912 2,530 65,455 Direct adjusted operating expenses 13,830 3,871 6,838 24,539 Contribution $ 42,183 $ 3,041 $ (4,308 ) $ 40,916 Indirect adjusted operating expenses 1 14,328 Finance income (908 ) Finance costs 211 Equity-settled share-based payment expense 5,172 Income tax expense 5,155 Depreciation and amortization 4,668 Foreign exchange loss 401 Net income $ 11,889 For the year ended December 31, 2018(a): Loyalty Currency Retailing Platform Partners Points Travel Total Total revenue $ 366,421 $ 7,979 $ 1,845 $ 376,245 Direct cost of revenue 321,615 615 111 322,341 Gross profit 44,806 7,364 1,734 53,904 Direct adjusted operating expenses 12,941 3,784 5,522 22,247 Contribution $ 31,865 $ 3,580 $ (3,788 ) $ 31,657 Indirect adjusted operating expenses 1 13,718 Finance income (666 ) Equity-settled share-based payment expense 4,381 Income tax expense 3,104 Depreciation and amortization 3,364 Foreign exchange gain (36 ) Net income $ 7,792 (a) The Corporation has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach comparative information is not restated. See Note 3(a). 1 |
Disclosure of detailed information about revenues geographic information [Table Text Block] | For the year ended December 31 2019 2018 Revenue United States $ 358,993 90% $ 331,625 88% Europe 21,832 5% 25,661 7% Other 20,352 5% 18,959 5% $ 401,177 100% $ 376,245 100% |
Disclosure of detailed information about contracted revenues to the remaining performance obligations [Table Text Block] | Total Year 1 Year 2 Year 3 Year 4 Year 5+ Hosting and other $ 633 $ 259 $ 259 $ 115 $ - $ - |
CASH HELD IN TRUST AND RESTRI_2
CASH HELD IN TRUST AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Restricted Cash And Cash Equivalents [Abstract] | |
Disclosure of cash held in trust and restricted cash are comprised [Table Text Block] | 2019 2018 Cash held in trust $ 2,534 $ - Restricted cash - 500 Cash held in trust and restricted cash $ 2,534 $ 500 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Disclosure of detailed information about trade and other receivables [Table Text Block] | 2019 2018 Accounts receivable before allowance for doubtful accounts $ 22,052 $ 9,472 Allowance for doubtful accounts (188 ) (154 ) Accounts receivable $ 21,864 $ 9,318 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid Expenses And Other Assets [Abstract] | |
Disclosure of prepayments and other assets [Table Text Block] | 2019 2018 Prepaid expenses $ 1,735 $ 1,464 Foreign exchange forward contracts designated as cash flow hedges 229 - Loyalty reward currency inventory 189 2,154 Prepaid expenses and current portion of other assets $ 2,153 $ 3,618 Non-current portion of loyalty reward currency inventory $ 216 $ - Other assets $ 216 $ - |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [Table Text Block] | Computer Hardware Computer Software Furniture & Fixtures Leasehold Improvements Total Cost Balance at January 1, 2018 $ 3,135 $ 2,209 $ 1,078 $ 1,214 $ 7,636 Additions 664 433 26 81 1,204 Balance at December 31, 2018 $ 3,799 $ 2,642 $ 1,104 $ 1,295 $ 8,840 Additions 705 409 103 14 1,231 Balance at December 31, 2019 $ 4,504 $ 3,051 $ 1,207 $ 1,309 $ 10,071 Computer Hardware Computer Software Furniture & Fixtures Leasehold Improvements Total Depreciation and impairment losses Balance at January 1, 2018 $ 2,547 $ 1,967 $ 743 $ 251 $ 5,508 Depreciation for the year 369 263 110 239 981 Balance at December 31, 2018 $ 2,916 $ 2,230 $ 853 $ 490 $ 6,489 Depreciation for the year 537 326 108 240 1,211 Balance at December 31, 2019 $ 3,453 $ 2,556 $ 961 $ 730 $ 7,700 Carrying amounts At December 31, 2018 $ 883 $ 412 $ 251 $ 805 $ 2,351 At December 31, 2019 $ 1,051 $ 495 $ 246 $ 579 $ 2,371 |
RIGHT OF USE ASSETS (Tables)
RIGHT OF USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Disclosure of quantitative information about right-of-use assets [Table Text Block] | Office Office Equipment Total Cost Balance at January 1, 2019 $ 4,102 $ - $ 4,102 Additions 36 86 122 Balance at December 31, 2019 $ 4,138 $ 86 $ 4,224 Office Office Equipment Total Depreciation and impairment losses Balance at January 1, 2019 $ - $ - $ - Depreciation for the year 1,151 13 1,164 Balance at December 31, 2019 $ 1,151 $ 13 $ 1,164 Carrying amounts At December 31, 2019 $ 2,987 $ 73 $ 3,060 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of detailed information about intangible assets [Table Text Block] | Customer Relationships Domain Names (1) Technology ( 2 ) Other (1) Total Cost Balance at January 1, 2018 $ 8,500 $ 4,300 $ 19,947 $ 205 $ 32,952 Additions - - 1,070 - 1,070 Balance at December 31, 2018 $ 8,500 $ 4,300 $ 21,017 $ 205 $ 34,022 Additions - - 1,147 - 1,147 Balance at December 31, 2019 $ 8,500 $ 4,300 $ 22,164 $ 205 $ 35,169 Amortization and impairment losses Balance at January 1, 2018 $ 2,621 $ - $ 15,066 $ - $ 17,687 Amortization for the year 850 - 1,533 - 2,383 Balance at December 31, 2018 $ 3,471 $ - $ 16,599 $ - $ 20,070 Amortization for the year 850 - 1,443 - 2,293 Balance at December 31, 2019 $ 4,321 $ - $ 18,042 $ - $ 22,363 Carrying amounts At December 31, 2018 $ 5,029 $ 4,300 $ 4,418 $ 205 $ 13,952 At December 31, 2019 $ 4,179 $ 4,300 $ 4,122 $ 205 $ 12,806 (1) (2) |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in goodwill [abstract] | |
Disclosure of detailed information about goodwill [Table Text Block] | Cost Balance at January 1, 2018 $ 7,130 Additions - Impairments - Balance at December 31, 2018 $ 7,130 Additions - Impairments - Balance at December 31, 2019 $ 7,130 |
Disclosure of detailed information about recoverable amounts for cash-generating units with indefinite life intangible assets and goodwill [Table Text Block] | (In thousands of dollars, except years and percentages) Carrying value of goodwill Carrying value of indefinite-life intangible assets Recoverable amount method Period used (years) Terminal growth rate % Pre-tax discount rate % Loyalty Currency Retailing $ 5,681 $ 4,505 Value in Use 5 2.0% 19.4% Points Travel $ 1,449 - Value in Use 5 2.0% 26.0% |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Income Taxes [Abstract] | |
Disclosure of detailed information about tax expense [Table Text Block] | 2019 2018 Current tax expense Current year $ 3,999 $ 2,640 Prior years 187 185 Total current tax expense $ 4,186 $ 2,825 Deferred tax expense Current year movement in recognized temporary differences and losses 841 279 Prior years 128 Total deferred tax expense $ 969 $ 279 Total income tax expense $ 5,155 $ 3,104 |
Disclosure of detailed information about effective income tax expense recovery [Table Text Block] | 2019 2018 Income tax expense at statutory rate of 26.5% (2018 - 26.5%) $ 4,517 $ 2,887 Increase in taxes resulting from: Non-deductible items 292 124 Other differences 346 93 Income tax expense $ 5,155 $ 3,104 |
Disclosure of deferred taxes [Table Text Block] | 2019 Deferred Tax Assets Deferred Tax Liabilities Forward exchange contracts $ - $ (60 ) Property and equipment and Intangible assets 2,175 (2,181 ) Accrued liabilities 938 - Investment tax credits - (27 ) Restricted Share Units 504 - Tax losses 34 - 3,651 (2,268 ) Reclassification (1,546 ) 1,546 $ 2,105 $ (722 ) 2018 Deferred Tax Assets Deferred Tax Liabilities Forward exchange contracts $ 233 $ - Property and equipment and Intangible assets 1,521 (545 ) Accrued liabilities 237 - Investment tax credits - (59 ) Restricted Share Units 1,043 - Tax losses 215 - 3,249 (604 ) Reclassification (604 ) 604 $ 2,645 $ - |
Disclosure of temporary difference, unused tax losses and unused tax credits [Table Text Block] | Total 2037 $ 41 2038 5 Total $ 46 |
Disclosure of information about unrecognized deferred tax assets [Table Text Block] | 2019 2018 Capital losses $ 1,385 $ 1,385 |
LEASE LIABILITIES (Tables)
LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
Disclosure of detail information about reconciliation movements of lease liabilities [Table Text Block] | 2019 Balance at January 1, 2019 $ 4,475 New leases 122 Interest expense 211 Interest paid (211 ) Payment of lease liabilities (1,229 ) Effect of changes in foreign exchange rates 164 Balance at December 31, 2019 $ 3,532 |
Disclosure of maturity analysis of lease payments [Table text block] | December 31, 2019 Year 1 $ 1,472 Year 2 1,182 Year 3 1,112 Year 4 18 Year 5+ 9 Total undiscounted lease payments $ 3,793 Carrying value of lease liabilities $ 3,532 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Liabilities [Abstract] | |
Disclosure of information about other liabilities [Table Text Block] | 2019 2018 Foreign exchange forward contracts designated as cash flow hedges $ 1 $ 878 Current portion of lease inducements - 120 Current portion of deferred revenue 796 682 Current portion of other liabilities $ 797 $ 1,680 Non-current portion of lease inducements - 362 Non-current portion of deferred revenue 95 133 Other liabilities $ 95 $ 495 |
Disclosure of deferred revenue [Table Text Block] | Balance at December 31, 2018 $ 815 Amounts invoiced and revenue deferred 5,401 Recognition of deferred revenue (5,325 ) Balance at December 31, 2019 $ 891 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Disclosure of earnings per share [Table Text Block] | 2019 2018 Net income available to common shareholders for basic and diluted earnings per share $ 11,889 $ 7,792 Weighted average number of common shares outstanding - basic 13,665,593 14,321,186 Effect of dilutive securities 146,473 90,817 Weighted average number of common shares outstanding - diluted 13,812,066 14,412,003 Earnings per share - reported Basic $ 0.87 $ 0.54 Diluted $ 0.86 $ 0.54 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Share Based Payments [Abstract] | |
Disclosure of detailed information about stock options available for grant [Table Text Block] | December 31, 2019 Shares outstanding as at March 2, 2016 15,298,602 Percentage of shares outstanding 10% Number of options authorized 1,529,860 Less: options issued & outstanding (1,321,288 ) Options available for grant 208,572 |
Disclosure of detailed information about options, valuation assumptions [Table Text Block] | 2019 2018 Dividend yield NIL NIL Risk free rate 1.39% - 1.67% 2.06% - 2.09% Expected volatility 40.79% - 44.75% 40.59% - 44.51% Expected life of options in years 2.46 - 6.00 3.10 - 6.00 Weighted average fair value of options granted (CAD) $4.37 - $8.95 $4.24 - $6.16 |
Disclosure of number and weighted average exercise prices of share options [Table Text Block] | 2019 2018 Number of Options Weighted Average Exercise Price (in CAD$) Number of Options Weighted Average Exercise Price (in CAD$) Beginning of year 1,229,040 $15.00 615,843 $16.00 Granted 288,000 $16.76 930,000 $13.93 Exercised (2,338) $12.34 (308,711) $13.51 Expired and forfeited (193,414) $22.69 (8,092) $25.56 End of year 1,321,288 $14.26 1,229,040 $15.00 Exercisable at end of year 195,688 $12.00 299,040 $18.32 |
Disclosure of range of exercise prices of outstanding share options [Table Text Block] | For the year ended December 31, 2019: Options outstanding Options exercisable Range of Exercise Prices (in CAD$) Number of options Weighted average remaining contractual life (years) Weighted average exercise price (in CAD$) Number of options Weighted average exercise price (in CAD$) $5.00 to $9.99 22,280 1.19 $ 9.89 22,280 $ 9.89 $10.00 to $14.99 1,011,008 4.15 $ 13.65 173,408 $ 12.27 $15.00 to $19.99 288,000 5.58 $ 16.76 - - 1,321,288 195,688 For the year ended December 31, 2018: Options outstanding Options exercisable Range of Exercise Prices (in CAD$) Number of options Weighted average remaining contractual life (years) Weighted average exercise price (in CAD$) Number of options Weighted average exercise price (in CAD$) $5.00 to $9.99 22,280 2.19 $ 9.89 22,280 $ 9.89 $10.00 to $14.99 1,105,746 5.21 $ 13.67 175,746 $ 12.27 $15.00 to $19.99 1,169 0.75 $ 19.82 1,169 $ 19.82 $20.00 and over 99,845 0.21 $ 30.84 99,845 $ 30.84 1,229,040 299,040 |
Disclosure of restricted share units and performance share units [Table Text Block] | Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2019 657,727 $ 11.50 Granted 392,898 $ 17.01 Vested (497,284) $ 12.42 Forfeited (56,399) $ 14.14 Balance at December 31, 2019 496,942 $ 14.63 Number of RSUs Weighted Average Fair Value (in CAD$) Balance at January 1, 2018 711,936 $ 10.16 Granted 442,353 $ 13.83 Vested (457,408) $ 11.67 Forfeited (39,154) $ 11.62 Balance at December 31, 2018 657,727 $ 11.50 |
OPERATING EXPENSES (Tables)
OPERATING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Operating Expenses [Abstract] | |
Disclosure of expenses [Table Text Block] | 2019 2018 Office expenses $ 1,286 $ 2,409 Travel and entertainment 2,345 2,118 Professional fees 3,105 2,988 Insurance, bank fees and governance 1,258 1,271 Operating expenses $ 7,994 $ 8,786 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about aging of accounts receivable [Table Text Block] | December 31, 2019 December 31, 2018 Current $ 8,411 $ 7,992 Past due 31-60 days 1,051 475 Past due 61-90 days 352 108 Past due 91-120 days 41 228 Past due over 120 days (1) 12,197 669 Trade accounts receivable 22,052 9,472 Less allowance for doubtful accounts (188) (154) $ 21,864 $ 9,318 |
Disclosure of detailed information about allowance for doubtful accounts for trade accounts receivable [Table Text Block] | 2019 2018 Balance, beginning of year $ 154 $ 91 Provision for doubtful accounts 69 105 Bad debts written off, net of recoveries (35 ) (42 ) Balance, end of year $ 188 $ 154 |
Disclosure of detailed information about contractual cash flow maturities [Table Text Block] | Contractual Cash Flow Maturities As at December 31, 2019 Carrying Amount Total Within 1 year 1 year to 3 years 3 years and beyond Accounts payable and accrued liabilities $ 13,766 $ 13,766 $ 13,766 Foreign exchange forward contracts designated as cash flow hedges 1 1 1 $ - $ - Income taxes payable 2,326 2,326 2,326 - - Payable to loyalty program partners 78,270 78,270 78,270 - - $ 94,363 $ 94,363 $ 94,363 $ - $ - Contractual Cash Flow Maturities As at December 31, 2018 Carrying Amount Total Within 1 year 1 year to 3 years 3 years and beyond Accounts payable and accrued liabilities $ 9,489 $ 9,489 $ 9,489 Foreign exchange forward contracts designated as cash flow hedges 878 878 878 $ - $ - Income taxes payable 117 117 117 - - Payable to loyalty program partners 69,749 69,749 69,749 - - $ 80,233 $ 80,233 $ 80,233 $ - $ - |
Disclosure of detailed information about foreign currency risk [Table Text Block] | As at December 31, 2019 CAD GBP EUR JPY FX Rates used to translate to USD 0.76750 1.31710 1.12170 0.009213 Balances below in source currency (in thousands) Financial assets Cash and cash equivalents 3,814 4,256 2,826 183,018 Cash held in trust and restricted cash 3,302 - - - Funds receivable from payment processors 422 862 867 26,241 Accounts receivable 1,653 3,129 859 62,993 9,191 8,247 4,552 272,252 Financial liabilities Accounts payable and accrued liabilities 5,239 3,221 102 8,773 Payable to loyalty program partners 4,456 6,111 5,345 89,531 9,695 9,332 5,447 98,304 As at December 31, 2018 CAD GBP EUR JPY FX Rates used to translate to USD 0.73361 1.27356 1.14449 0.00909 Balances below in source currency (in thousands) Financial assets Cash and cash equivalents 3,667 8,430 5,660 97,455 Funds receivable from payment processors 221 740 1,556 30,043 Accounts receivable 691 2,597 774 68,795 4,579 11,767 7,990 196,293 Financial liabilities Accounts payable and accrued liabilities 1,370 2,547 774 18,515 Payable to loyalty program partners 1,380 8,237 5,382 71,868 2,750 10,784 6,156 90,383 |
Disclosure of fair value measurement [Table Text Block] | 2019 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ 229 $ 229 Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (1 ) (1 ) $ 228 $ 228 2018 Carrying Value Level 2 Assets: Foreign exchange forward contracts designated as cash flow hedges (i) $ - $ - Liabilities: Foreign exchange forward contracts designated as cash flow hedges (i) (878 ) (878 ) $ (878 ) $ (878 ) (i) |
GUARANTEES AND COMMITMENTS (Tab
GUARANTEES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Detail Information About Guarantees And Commitments [Abstract] | |
Disclosure of guarantees and commitments [Table Text Block] | Total Year 1 ( 2 ) Year 2 Year 3 Year 4 Year 5+ Direct cost of revenue (1) $ 649,283 $ 176,595 $ 162,504 $ 130,679 $ 130,116 $ 49,389 (1) (2) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | |
Disclosure of detailed information about non-cash balances related to operations [Table Text Block] | 2019 2018 Decrease (Increase) in funds receivable from payment processors $ (790 ) $ 1,717 Increase in accounts receivable (12,546 ) (1,577 ) Decrease in prepaid taxes 189 74 Decrease (Increase) in prepaid expenses and other assets (1) 1,356 (1,655 ) Decrease (Increase) in other assets (216 ) 2,661 Increase in accounts payable and accrued liabilities 4,277 1,491 Increase (Decrease) in income taxes payable 2,209 (578 ) Increase (Decrease) in other liabilities (1) (800 ) 237 Increase in payable to loyalty program partners 8,521 4,182 $ 2,200 $ 6,552 (1) |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of information about key management personnel [Table Text Block] | In thousands of Canadian dollars 2019 2018 Short-term employee salaries and benefits $ 2,260 $ 2,382 Share-based payments 4,119 3,232 Total compensation $ 6,379 $ 5,614 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |
Vesting period of stock options | 3 years or based on achievement of specified non-market performance |
Maximum contractual life of stock options | 10 years |
Vesting period of restricted share units (RSUs) | on grant date, over a period of up to three years after the grant date, or in full on the third anniversary of the grant date. |
IFRS 16 [Member] | |
Significant Accounting Policies [Line Items] | |
Weighted average rate | 5.30% |
IFRS 16 [Member] | Bottom of range [Member] | Office premises [Member] | |
Significant Accounting Policies [Line Items] | |
Leases Terms | 2 years |
IFRS 16 [Member] | Top of range [Member] | Office premises [Member] | |
Significant Accounting Policies [Line Items] | |
Leases Terms | 4 years |
OPERATING SEGMENTS (Narrative)
OPERATING SEGMENTS (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [Line items] | ||
Percentage of entity's revenue | 100.00% | 100.00% |
Information about major customers | Loyalty program partners for which sales to their members individually represented more than 10% of the Corporation's total revenue. | |
Three partners [Member] | ||
Disclosure of operating segments [Line items] | ||
Percentage of entity's revenue | 69.00% | 70.00% |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [abstract] | ||
Research and development expense | $ 3,879 | $ 3,768 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Income Tax [Line Items] | ||
Temporary difference | $ 2,384 | $ 369 |
Capital losses, which can be carried forward indefinitely [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 10,456 | 10,456 |
Non-capital loss carry-forwards for income tax purposes [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 125 | $ 813 |
Non capital losses, which can be carried forward indefinitely [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | $ 79 |
LEASE LIABILITIES (Narrative) (
LEASE LIABILITIES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease liabilities [abstract] | |
Expense related to variable lease payments not included in measurement of lease obligations | $ 845 |
CAPITAL AND OTHER COMPONENTS _2
CAPITAL AND OTHER COMPONENTS OF EQUITY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 14, 2019 | Jul. 31, 2019 | Aug. 14, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Aug. 09, 2017 | Jul. 31, 2017 | Mar. 02, 2016 | |
Disclosure Of Capital And Other Components Of Equity [Line Items] | |||||||||||
Number of shares eligible to be repurchased under Normal Course Issuer Bid | 679,034 | 710,893 | 743,468 | ||||||||
Common shares issued | 13,580,692 | 14,217,860 | 14,869,374 | ||||||||
Common shares outstanding | 13,580,692 | 14,217,860 | 14,869,374 | 15,298,602 | |||||||
Repurchase amount, percentage | 5.00% | 5.00% | 5.00% | ||||||||
Number of shares repurchased and cancelled under 2017 Normal Course Issuer Bid | 743,468 | ||||||||||
Repurchase of shares | 872,686 | 569,107 | |||||||||
Shares repurchased | $ 10,258 | $ 7,657 | |||||||||
Share Capital [Member] | |||||||||||
Disclosure Of Capital And Other Components Of Equity [Line Items] | |||||||||||
Common shares outstanding | 13,241,516 | 14,111,864 | 14,561,450 | ||||||||
Shares repurchased | $ 3,269 | $ 2,208 | |||||||||
Contributed Surplus [Member] | |||||||||||
Disclosure Of Capital And Other Components Of Equity [Line Items] | |||||||||||
Shares repurchased | 4,985 | 5,449 | |||||||||
Accumulated deficit [Member] | |||||||||||
Disclosure Of Capital And Other Components Of Equity [Line Items] | |||||||||||
Shares repurchased | $ 2,004 | $ 0 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
EARNINGS PER SHARE | ||
Anti-dilutive shares excluded from diluted weighted average number of shares | 158,000 | 101,014 |
SHARE-BASED PAYMENTS (Narrative
SHARE-BASED PAYMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Shareshares | Dec. 31, 2018USD ($)Shareshares | Mar. 02, 2016 | |
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options granted in a share-based payment arrangement | 288,000 | 930,000 | |
Percentage of shares outstanding to determine number of options authorized to grant | 10.00% | ||
Share units purchased and held in trust | 540,000 | 272,067 | |
Share units purchased and held in trust, amount | $ | $ 6,350 | $ 3,062 | |
Payments of withholding taxes in cash | $ | $ (3,122) | $ (2,722) | |
Shares held in trust | shares | 487,314 | 199,708 | |
Compensation cost | $ | $ 5,172 | $ 4,381 | |
Executive [Member] | |||
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options granted in a share-based payment arrangement | 288,000 | 930,000 | |
Restricted share unit [Member] | |||
Disclosure Of Share Based Payments [Line Items] | |||
Number of units granted during the year | 392,898 | 442,353 | |
Number of share units outstanding | 496,942 | 657,727 | |
Number of units vested during the year | 497,284 | 457,408 | |
Number of units settled through issuance of shares held in trust | shares | 252,394 | 266,610 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Notional value of forward contracts | $ 19,860 | $ 15,110 |
Net asset (liability) | $ 228 | (878) |
Sensitivity analysis variance, percentage | 10.00% | |
Effect of variance on net income | $ 41 | 632 |
CAD [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Realized foreign exchange gain (loss) reclassified to employment costs | $ (550) | $ (7) |
CREDIT FACILITIES (Narrative) (
CREDIT FACILITIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 10, 2019 | May 30, 2019 |
Facility 1 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Secured revolving credit facility | $ 50,000 | |
Expanded revolving credit facility | $ 65,000 | |
Credit facility maturity (in years) | Three-year maturity | |
Facility 1 [Member] | Bottom of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate over bank base rate | 0.75% | |
Facility 1 [Member] | Top of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate over bank base rate | 2.00% | |
Facility 2 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 8,500 | |
Facility 2 [Member] | Bottom of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate over bank base rate | 0.35% | |
Facility 2 [Member] | Top of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate over bank base rate | 0.75% | |
Facility 3 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 5,000 | |
Facility 3 [Member] | Bottom of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate over bank base rate | 0.40% | |
Facility 3 [Member] | Top of range [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate over bank base rate | 0.80% |
PRIOR YEAR TAX REBATE (Narrativ
PRIOR YEAR TAX REBATE (Narrative) (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Disclosure Of Prior Year Tax Rebate [Abstract] | |
Amount of tax rebate related to prior years, net of fees | $ 6,027 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of detailed information about impact on transition to IFRS 16 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Line Items] | ||
Prepaid expenses and other assets | $ 2,153 | $ 3,618 |
Right-of-use assets | 3,060 | |
Current portion of other liabilities | 797 | 1,680 |
Current portion of lease liabilities | 1,323 | |
Lease liabilities | 2,209 | |
Other liabilities | $ 95 | 495 |
IFRS 16 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Prepaid expenses and other assets | (109) | |
Right-of-use assets | 4,102 | |
Current portion of other liabilities | (120) | |
Current portion of lease liabilities | 1,203 | |
Lease liabilities | 3,272 | |
Other liabilities | $ (362) |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of detailed information about operating lease (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Line Items] | ||
Lease liabilities recognized | $ 3,532 | |
IFRS 16 [Member] | ||
Significant Accounting Policies [Line Items] | ||
Operating lease commitment at December 31, 2018 as disclosed in the Corporation's 2018 consolidated financial statements | $ 7,401 | |
Discounted using the incremental borrowing rate at January 1, 2019 | 6,573 | |
Recognition exemption for leases of low-value assets | (6) | |
Extension options reasonably certain to be exercised | 365 | |
Certain costs for which the Corporation is contractually committed under lease contracts but are not accounted for as a lease liability, such as variable lease payments not tied to an index or rate | (2,457) | |
Lease liabilities recognized | $ 4,475 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of detailed information about estimated useful life or depreciation rate (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Furniture and fixtures [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | Straight-line over 5 years |
Computer hardware [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | Straight-line over 3 years |
Computer software [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | Straight-line over 3 years |
Leasehold improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | Straight-line over shorter of useful life or the lease term |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Disclosure of detailed information about finite useful lives of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Customer relationships [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | Straight-line over 10 years |
Technology [Member] | |
Significant Accounting Policies [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill | Straight-line over 3 to 5 years |
OPERATING SEGMENTS - Disclosure
OPERATING SEGMENTS - Disclosure of detailed information about revenue and expenses by reportable segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [Line items] | ||
Total revenue | $ 401,177 | $ 376,245 |
Direct cost of revenue | 335,722 | 322,341 |
Gross profit | 65,455 | 53,904 |
Direct adjusted operating expenses | 24,539 | 22,247 |
Contribution | 40,916 | 31,657 |
Indirect adjusted operating expenses | 14,328 | 13,718 |
Finance income | (908) | (666) |
Finance costs | 211 | |
Equity-settled share-based payment expense | 5,172 | 4,381 |
Income tax expense | 5,155 | 3,104 |
Depreciation and amortization | 4,668 | 3,364 |
Foreign exchange loss (gain) | 401 | (36) |
Net income | 11,889 | 7,792 |
Loyalty Currency Retailing [Member] | ||
Disclosure of operating segments [Line items] | ||
Total revenue | 391,045 | 366,421 |
Direct cost of revenue | 335,032 | 321,615 |
Gross profit | 56,013 | 44,806 |
Direct adjusted operating expenses | 13,830 | 12,941 |
Contribution | 42,183 | 31,865 |
Platform Partners [Member] | ||
Disclosure of operating segments [Line items] | ||
Total revenue | 7,577 | 7,979 |
Direct cost of revenue | 665 | 615 |
Gross profit | 6,912 | 7,364 |
Direct adjusted operating expenses | 3,871 | 3,784 |
Contribution | 3,041 | 3,580 |
Points Travel [Member] | ||
Disclosure of operating segments [Line items] | ||
Total revenue | 2,555 | 1,845 |
Direct cost of revenue | 25 | 111 |
Gross profit | 2,530 | 1,734 |
Direct adjusted operating expenses | 6,838 | 5,522 |
Contribution | $ (4,308) | $ (3,788) |
OPERATING SEGMENTS -Disclosure
OPERATING SEGMENTS -Disclosure of detailed information about revenues, geographic information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [Line items] | ||
Revenue | $ 401,177 | $ 376,245 |
Percentage of entity's revenue | 100.00% | 100.00% |
United States | ||
Disclosure of operating segments [Line items] | ||
Revenue | $ 358,993 | $ 331,625 |
Percentage of entity's revenue | 90.00% | 88.00% |
Europe | ||
Disclosure of operating segments [Line items] | ||
Revenue | $ 21,832 | $ 25,661 |
Percentage of entity's revenue | 5.00% | 7.00% |
Other | ||
Disclosure of operating segments [Line items] | ||
Revenue | $ 20,352 | $ 18,959 |
Percentage of entity's revenue | 5.00% | 5.00% |
OPERATING SEGMENTS -Disclosur_2
OPERATING SEGMENTS -Disclosure of detailed information about contracted revenues allocated to the remaining performance obligations (Details) - Hosting And Other [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of operating segments [Line items] | |
Transaction price | $ 633 |
Year 1 [Member] | |
Disclosure of operating segments [Line items] | |
Transaction price | 259 |
Year 2 [Member] | |
Disclosure of operating segments [Line items] | |
Transaction price | 259 |
Year 3 [Member] | |
Disclosure of operating segments [Line items] | |
Transaction price | 115 |
Year 4 [Member] | |
Disclosure of operating segments [Line items] | |
Transaction price | 0 |
Year 5+ [Member] | |
Disclosure of operating segments [Line items] | |
Transaction price | $ 0 |
CASH HELD IN TRUST AND RESTRI_3
CASH HELD IN TRUST AND RESTRICTED CASH - Disclosure of cash held in trust and restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Restricted Cash And Cash Equivalents [Abstract] | ||
Cash held in trust | $ 2,534 | $ 0 |
Restricted cash | 0 | 500 |
Cash held in trust and restricted cash | $ 2,534 | $ 500 |
ACCOUNTS RECEIVABLE - Disclosur
ACCOUNTS RECEIVABLE - Disclosure of detailed information about trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other receivables [abstract] | |||
Accounts receivable before allowance for doubtful accounts | $ 22,052 | $ 9,472 | |
Allowance for doubtful accounts | (188) | (154) | $ (91) |
Accounts receivable | $ 21,864 | $ 9,318 |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS - Disclosure of prepayments and other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses And Other Assets [Abstract] | ||
Prepaid expenses | $ 1,735 | $ 1,464 |
Foreign exchange forward contracts designated as cash flow hedges | 229 | 0 |
Loyalty reward currency inventory | 189 | 2,154 |
Prepaid expenses and current portion of other assets | 2,153 | 3,618 |
Non-current portion of loyalty reward currency inventory | 216 | 0 |
Other assets | $ 216 | $ 0 |
PROPERTY AND EQUIPMENT - Disclo
PROPERTY AND EQUIPMENT - Disclosure of detailed information about property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | $ 2,351 | |
Balance, end of year | 2,371 | $ 2,351 |
Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 8,840 | 7,636 |
Additions | 1,231 | 1,204 |
Balance, end of year | 10,071 | 8,840 |
Depreciation and impairment losses [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 6,489 | 5,508 |
Depreciation for the year | 1,211 | 981 |
Balance, end of year | 7,700 | 6,489 |
Computer hardware [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 883 | |
Balance, end of year | 1,051 | 883 |
Computer hardware [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 3,799 | 3,135 |
Additions | 705 | 664 |
Balance, end of year | 4,504 | 3,799 |
Computer hardware [Member] | Depreciation and impairment losses [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 2,916 | 2,547 |
Depreciation for the year | 537 | 369 |
Balance, end of year | 3,453 | 2,916 |
Computer software [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 412 | |
Balance, end of year | 495 | 412 |
Computer software [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 2,642 | 2,209 |
Additions | 409 | 433 |
Balance, end of year | 3,051 | 2,642 |
Computer software [Member] | Depreciation and impairment losses [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 2,230 | 1,967 |
Depreciation for the year | 326 | 263 |
Balance, end of year | 2,556 | 2,230 |
Furniture and fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 251 | |
Balance, end of year | 246 | 251 |
Furniture and fixtures [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 1,104 | 1,078 |
Additions | 103 | 26 |
Balance, end of year | 1,207 | 1,104 |
Furniture and fixtures [Member] | Depreciation and impairment losses [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 853 | 743 |
Depreciation for the year | 108 | 110 |
Balance, end of year | 961 | 853 |
Leasehold improvements [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 805 | |
Balance, end of year | 579 | 805 |
Leasehold improvements [Member] | Cost [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 1,295 | 1,214 |
Additions | 14 | 81 |
Balance, end of year | 1,309 | 1,295 |
Leasehold improvements [Member] | Depreciation and impairment losses [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance, beginning of year | 490 | 251 |
Depreciation for the year | 240 | 239 |
Balance, end of year | $ 730 | $ 490 |
RIGHT OF USE ASSETS - Disclosur
RIGHT OF USE ASSETS - Disclosure of quantitative information about right-of-use assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, end of year | $ 3,060 |
Cost [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of year | 4,102 |
Additions | 122 |
Balance, end of year | 4,224 |
Depreciation and impairment losses [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of year | 0 |
Depreciation for the year | 1,164 |
Balance, end of year | 1,164 |
Office [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, end of year | 2,987 |
Office [member] | Cost [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of year | 4,102 |
Additions | 36 |
Balance, end of year | 4,138 |
Office [member] | Depreciation and impairment losses [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of year | 0 |
Depreciation for the year | 1,151 |
Balance, end of year | 1,151 |
Office Equipment [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, end of year | 73 |
Office Equipment [member] | Cost [Member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of year | 0 |
Additions | 86 |
Balance, end of year | 86 |
Office Equipment [member] | Depreciation and impairment losses [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance, beginning of year | 0 |
Depreciation for the year | 13 |
Balance, end of year | $ 13 |
INTANGIBLE ASSETS - Disclosure
INTANGIBLE ASSETS - Disclosure of detailed information about intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | $ 13,952 | |
Amortization for the year | 2,293 | $ 2,383 |
Balance, end of year | 12,806 | 13,952 |
Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 34,022 | 32,952 |
Additions | 1,147 | 1,070 |
Balance, end of year | 35,169 | 34,022 |
Amortization and impairment losses [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 20,070 | 17,687 |
Amortization for the year | 2,293 | 2,383 |
Balance, end of year | 22,363 | 20,070 |
Customer relationships [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 5,029 | |
Balance, end of year | 4,179 | 5,029 |
Customer relationships [Member] | Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 8,500 | 8,500 |
Additions | 0 | 0 |
Balance, end of year | 8,500 | 8,500 |
Customer relationships [Member] | Amortization and impairment losses [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 3,471 | 2,621 |
Amortization for the year | 850 | 850 |
Balance, end of year | 4,321 | 3,471 |
Domain names [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 4,300 | |
Balance, end of year | 4,300 | 4,300 |
Domain names [Member] | Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 4,300 | 4,300 |
Additions | 0 | 0 |
Balance, end of year | 4,300 | 4,300 |
Domain names [Member] | Amortization and impairment losses [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 0 | 0 |
Amortization for the year | 0 | 0 |
Balance, end of year | 0 | 0 |
Technology [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 4,418 | |
Balance, end of year | 4,122 | 4,418 |
Technology [Member] | Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 21,017 | 19,947 |
Additions | 1,147 | 1,070 |
Balance, end of year | 22,164 | 21,017 |
Technology [Member] | Amortization and impairment losses [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 16,599 | 15,066 |
Amortization for the year | 1,443 | 1,533 |
Balance, end of year | 18,042 | 16,599 |
Other [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 205 | |
Balance, end of year | 205 | 205 |
Other [Member] | Cost [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 205 | 205 |
Additions | 0 | 0 |
Balance, end of year | 205 | 205 |
Other [Member] | Amortization and impairment losses [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Balance, beginning of year | 0 | 0 |
Amortization for the year | 0 | 0 |
Balance, end of year | $ 0 | $ 0 |
GOODWILL - Disclosure of detail
GOODWILL - Disclosure of detailed information about goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in goodwill [abstract] | ||
Balance, beginning of year | $ 7,130 | $ 7,130 |
Additions | 0 | 0 |
Impairments | 0 | 0 |
Balance, end of year | $ 7,130 | $ 7,130 |
GOODWILL - Disclosure of deta_2
GOODWILL - Disclosure of detailed information about recoverable amounts for cash-generating units with indefinite life intangible assets and goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Carrying value of goodwill | $ 7,130 | $ 7,130 | $ 7,130 |
Loyalty Currency Retailing [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Carrying value of goodwill | 5,681 | ||
Carrying value of indefinite-life intangible assets | $ 4,505 | ||
Recoverable amount method | Value in Use | ||
Period used (years) | 5 | ||
Terminal growth rate | 2.0% | ||
Pre-tax discount rate | 19.40% | ||
Points Travel [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Carrying value of goodwill | $ 1,449 | ||
Carrying value of indefinite-life intangible assets | $ 0 | ||
Recoverable amount method | Value in Use | ||
Period used (years) | 5 | ||
Terminal growth rate | 2.0% | ||
Pre-tax discount rate | 26.00% |
INCOME TAXES - Disclosure of de
INCOME TAXES - Disclosure of detailed information about tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense | ||
Current year | $ 3,999 | $ 2,640 |
Prior years | 187 | 185 |
Total current tax expense | 4,186 | 2,825 |
Deferred tax expense | ||
Current year movement in recognized temporary differences and losses | 841 | 279 |
Prior years | 128 | |
Total deferred tax expense | 969 | 279 |
Total income tax expense | $ 5,155 | $ 3,104 |
INCOME TAXES - Disclosure of _2
INCOME TAXES - Disclosure of detailed information about effective income tax expense recovery (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Income Taxes [Abstract] | ||
Income tax expense at statutory rate | $ 4,517 | $ 2,887 |
Statutory tax rate | 26.50% | 26.50% |
Increase in taxes resulting from: | ||
Non-deductible items | $ 292 | $ 124 |
Other differences | 346 | 93 |
Total income tax expense | $ 5,155 | $ 3,104 |
INCOME TAXES - Disclosure of _3
INCOME TAXES - Disclosure of deferred taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | $ 3,651 | $ 3,249 |
Reclassification of deferred tax assets | (1,546) | (604) |
Deferred tax assets | 2,105 | 2,645 |
Deferred tax liabilities | (2,268) | (604) |
Reclassification of deferred tax liabilities | 1,546 | 604 |
Deferred Tax Liabilities | (722) | |
Forward exchange contracts [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 0 | 233 |
Deferred tax liabilities | (60) | 0 |
Property and equipment and Intangible assets [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 2,175 | 1,521 |
Deferred tax liabilities | (2,181) | (545) |
Accrued liabilities [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 938 | 237 |
Deferred tax liabilities | 0 | 0 |
Investment tax credits [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 0 | 0 |
Deferred tax liabilities | (27) | (59) |
Restricted Share Units [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 504 | 1,043 |
Deferred tax liabilities | 0 | 0 |
Tax losses [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Deferred tax assets | 34 | 215 |
Deferred tax liabilities | $ 0 | $ 0 |
INCOME TAXES - Disclosure of te
INCOME TAXES - Disclosure of temporary difference, unused tax losses and unused tax credits (Details) - Non-capital loss carry-forward [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure Of Income Tax [Line Items] | |
Non-capital losses | $ 46 |
2037 [Member] | |
Disclosure Of Income Tax [Line Items] | |
Non-capital losses | 41 |
2038 [Member] | |
Disclosure Of Income Tax [Line Items] | |
Non-capital losses | $ 5 |
INCOME TAXES - Disclosure of _4
INCOME TAXES - Disclosure of detailed information about unrecognized deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Capital losses [Member] | ||
Disclosure Of Income Tax [Line Items] | ||
Capital losses | $ 1,385 | $ 1,385 |
LEASE LIABILITIES - Disclosure
LEASE LIABILITIES - Disclosure of detail information about reconciliation movements of lease liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease liabilities [abstract] | |
Lease liabilities recognized at January 1, 2019 | $ 4,475 |
New leases | 122 |
Interest expense | 211 |
Interest paid | (211) |
Payment of lease liabilities | (1,229) |
Effect of changes in foreign exchange rates | 164 |
Balance at December 31, 2019 | $ 3,532 |
LEASE LIABILITIES - Disclosur_2
LEASE LIABILITIES - Disclosure of maturity analysis of lease payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | $ 3,793 |
Carrying value of lease liabilities | 3,532 |
Year 1 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 1,472 |
Year 2 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 1,182 |
Year 3 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 1,112 |
Year 4 [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | 18 |
Year 5+ [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Total undiscounted lease payments | $ 9 |
OTHER LIABILITIES - Disclosure
OTHER LIABILITIES - Disclosure of detailed information about other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Other Liabilities [Abstract] | ||
Foreign exchange forward contracts designated as cash flow hedges | $ 1 | $ 878 |
Current portion of lease inducements | 0 | 120 |
Current portion of deferred revenue | 796 | 682 |
Current portion of other liabilities | 797 | 1,680 |
Non-current portion of lease inducements | 0 | 362 |
Non-current portion of deferred revenue | 95 | 133 |
Other liabilities | $ 95 | $ 495 |
OTHER LIABILITIES - Disclosur_2
OTHER LIABILITIES - Disclosure of detailed information about changes in deferred revenue balances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure Of Other Liabilities [Line Items] | |
Balance at December 31, 2018 | $ 815 |
Amounts invoiced and revenue deferred | 5,401 |
Recognition of deferred revenue | (5,325) |
Balance at December 31, 2019 | $ 891 |
EARNINGS PER SHARE - Earnings p
EARNINGS PER SHARE - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
EARNINGS PER SHARE | ||
Net income available to common shareholders for basic and diluted earnings per share | $ 11,889 | $ 7,792 |
Weighted average number of common shares outstanding - basic | 13,665,593 | 14,321,186 |
Effect of dilutive securities | 146,473 | 90,817 |
Weighted average number of common shares outstanding - diluted | 13,812,066 | 14,412,003 |
Earnings per share - reported | ||
Basic | $ 0.87 | $ 0.54 |
Diluted | $ 0.86 | $ 0.54 |
SHARE-BASED PAYMENTS - Disclosu
SHARE-BASED PAYMENTS - Disclosure of detailed information about stock options available for grant (Details) | Dec. 31, 2019Share | Jul. 31, 2019shares | Dec. 31, 2018Share | Jul. 31, 2018shares | Dec. 31, 2017Share | Jul. 31, 2017shares | Mar. 02, 2016shares |
Disclosure Of Share Based Payments [Abstract] | |||||||
Shares outstanding | shares | 13,580,692 | 14,217,860 | 14,869,374 | 15,298,602 | |||
Percentage of shares outstanding | 10.00% | ||||||
Net options authorized | shares | 1,529,860 | ||||||
Less: options issued & outstanding | Share | (1,321,288) | (1,229,040) | (615,843) | ||||
Options available for grant | Share | 208,572 |
SHARE-BASED PAYMENTS - Disclo_2
SHARE-BASED PAYMENTS - Disclosure of detailed information about options, valuation assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019CAD ($)Year | Dec. 31, 2018CAD ($)Year | |
Disclosure Of Share Based Payments [Line Items] | ||
Dividend yield | ||
Bottom of range [Member] | ||
Disclosure Of Share Based Payments [Line Items] | ||
Risk free rate | 1.39% | 2.06% |
Expected volatility | 40.79% | 40.59% |
Expected life of options in years | Year | 2.46 | 3.10 |
Weighted average fair value of options granted | $ | $ 4.37 | $ 4.24 |
Top of range [Member] | ||
Disclosure Of Share Based Payments [Line Items] | ||
Risk free rate | 1.67% | 2.09% |
Expected volatility | 44.75% | 44.51% |
Expected life of options in years | Year | 6 | 6 |
Weighted average fair value of options granted | $ | $ 8.95 | $ 6.16 |
SHARE-BASED PAYMENTS - Disclo_3
SHARE-BASED PAYMENTS - Disclosure of number and weighted average exercise prices of share options (Details) | 12 Months Ended | |
Dec. 31, 2019CAD ($)Share | Dec. 31, 2018CAD ($)Share | |
Disclosure Of Share Based Payments [Abstract] | ||
Number of share options outstanding in share-based payment arrangement at beginning of period | Share | 1,229,040 | 615,843 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $ | $ 15 | $ 16 |
Number of share options granted in share-based payment arrangement | Share | 288,000 | 930,000 |
Weighted average exercise price of share options granted in share-based payment arrangement | $ | $ 16.76 | $ 13.93 |
Number of share options exercised in share-based payment arrangement | Share | (2,338) | (308,711) |
Weighted average exercise price of share options exercised in share-based payment arrangement | $ | $ 12.34 | $ 13.51 |
Number of share options expired and forfeited in share-based payment arrangement | Share | (193,414) | (8,092) |
Weighted average exercise price of share options expired and forfeited in share-based payment arrangement | $ | $ 22.69 | $ 25.56 |
Number of share options outstanding in share-based payment arrangement at end of period | Share | 1,321,288 | 1,229,040 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $ | $ 14.26 | $ 15 |
Number of share options exercisable in share-based payment arrangement | Share | 195,688 | 299,040 |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 12 | $ 18.32 |
SHARE-BASED PAYMENTS - Disclo_4
SHARE-BASED PAYMENTS - Disclosure of range of exercise prices of outstanding share options (Details) | Dec. 31, 2019CAD ($)ShareYear | Dec. 31, 2018CAD ($)ShareYear | Dec. 31, 2017CAD ($)Share |
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 1,321,288 | 1,229,040 | 615,843 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ | $ 14.26 | $ 15 | $ 16 |
Number of share options exercisable in share-based payment arrangement | Share | 195,688 | 299,040 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 12 | $ 18.32 | |
$5.00 to $9.99 [Member] | |||
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 22,280 | 22,280 | |
Weighted average remaining contractual life of outstanding share options | Year | 1.19 | 2.19 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ | $ 9.89 | $ 9.89 | |
Number of share options exercisable in share-based payment arrangement | Share | 22,280 | 22,280 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 9.89 | $ 9.89 | |
$10.00 to $14.99 [Member] | |||
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 1,011,008 | 1,105,746 | |
Weighted average remaining contractual life of outstanding share options | Year | 4.15 | 5.21 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ | $ 13.65 | $ 13.67 | |
Number of share options exercisable in share-based payment arrangement | Share | 173,408 | 175,746 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 12.27 | $ 12.27 | |
$15.00 to $19.99 [Member] | |||
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 288,000 | 1,169 | |
Weighted average remaining contractual life of outstanding share options | Year | 5.58 | 0.75 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ | $ 16.76 | $ 19.82 | |
Number of share options exercisable in share-based payment arrangement | Share | 0 | 1,169 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 0 | $ 19.82 | |
$20.00 and over [Member] | |||
Disclosure Of Share Based Payments [Line Items] | |||
Number of share options outstanding in share-based payment arrangement | Share | 99,845 | ||
Weighted average remaining contractual life of outstanding share options | Year | 0.21 | ||
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ | $ 30.84 | ||
Number of share options exercisable in share-based payment arrangement | Share | 99,845 | ||
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ | $ 30.84 |
SHARE-BASED PAYMENTS - Disclo_5
SHARE-BASED PAYMENTS - Disclosure of restricted share units and performance share units (Details) - Restricted share unit [Member] | 12 Months Ended | |
Dec. 31, 2019CAD ($)Share | Dec. 31, 2018CAD ($)Share | |
Statements [Line Items] | ||
Number of share units, beginning of year | Share | 657,727 | 711,936 |
Weighted average exercise price of share units, beginning of year | $ | $ 11.50 | $ 10.16 |
Number of units granted during the year | Share | 392,898 | 442,353 |
Weighted average exercise price share units granted | $ | $ 17.01 | $ 13.83 |
Number of units vested during the year | Share | (497,284) | (457,408) |
Weighted average exercise price of share units vested | $ | $ 12.42 | $ 11.67 |
Number of units forfeited during the year | Share | (56,399) | (39,154) |
Weighted average exercise price of share units forfeited | $ | $ 14.14 | $ 11.62 |
Number of share units, end of year | Share | 496,942 | 657,727 |
Weighted average exercise price of share units, end of year | $ | $ 14.63 | $ 11.50 |
OPERATING EXPENSES - Disclosure
OPERATING EXPENSES - Disclosure of expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Operating Expenses [Abstract] | ||
Office expenses | $ 1,286 | $ 2,409 |
Travel | 2,345 | 2,118 |
Professional fees | 3,105 | 2,988 |
Insurance, bank fees and governance | 1,258 | 1,271 |
Operating expenses | $ 7,994 | $ 8,786 |
FINANCIAL INSTRUMENTS - Disclos
FINANCIAL INSTRUMENTS - Disclosure of detailed information about aging of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts receivable | $ 22,052 | $ 9,472 | |
Allowance for doubtful accounts | (188) | (154) | $ (91) |
Accounts receivable | 21,864 | 9,318 | |
Current [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts receivable | 8,411 | 7,992 | |
Past due 31-60 days [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts receivable | 1,051 | 475 | |
Past due 61-90 days [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts receivable | 352 | 108 | |
Past due 91-120 days [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts receivable | 41 | 228 | |
Past due over 120 days [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts receivable | $ 12,197 | $ 669 |
FINANCIAL INSTRUMENTS - Discl_2
FINANCIAL INSTRUMENTS - Disclosure of detailed information about allowance for doubtful accounts for trade accounts receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Allowance for doubtful accounts, beginning of year | $ 154 | $ 91 |
Provision for doubtful accounts | 69 | 105 |
Bad debts written off, net of recoveries | (35) | (42) |
Allowance for doubtful accounts, end of year | $ 188 | $ 154 |
FINANCIAL INSTRUMENTS - Discl_3
FINANCIAL INSTRUMENTS - Disclosure of detailed information about contractual cash flow maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Accounts payable and accrued liabilities | $ 13,766 | $ 9,489 |
Foreign exchange forward contracts designated as cash flow hedges | 1 | 878 |
Income taxes payable | 2,326 | 117 |
Payable to loyalty program partners | 78,270 | 69,749 |
Financial liabilities | 94,363 | 80,233 |
Within 1 year [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounts payable and accrued liabilities | 13,766 | 9,489 |
Foreign exchange forward contracts designated as cash flow hedges | 1 | 878 |
Income taxes payable | 2,326 | 117 |
Payable to loyalty program partners | 78,270 | 69,749 |
Financial liabilities | 94,363 | 80,233 |
1 year to 3 years [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | 0 |
Foreign exchange forward contracts designated as cash flow hedges | 0 | 0 |
Income taxes payable | 0 | 0 |
Payable to loyalty program partners | 0 | 0 |
Financial liabilities | 0 | 0 |
3 years and beyond [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | 0 |
Foreign exchange forward contracts designated as cash flow hedges | 0 | 0 |
Income taxes payable | 0 | 0 |
Payable to loyalty program partners | 0 | 0 |
Financial liabilities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Discl_4
FINANCIAL INSTRUMENTS - Disclosure of detailed information about foreign currency risk (Details) € in Thousands, ¥ in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($)Rates | Dec. 31, 2018USD ($)Rates | Dec. 31, 2019CAD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2019JPY (¥) | Dec. 31, 2018CAD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018EUR (€) | Dec. 31, 2018JPY (¥) | Dec. 31, 2017USD ($) | |
Financial assets | |||||||||||
Cash and cash equivalents | $ 69,965 | $ 69,131 | $ 63,514 | ||||||||
Cash held in trust and restricted cash | 2,534 | 500 | |||||||||
Funds receivable from payment processors | 14,302 | 13,512 | |||||||||
Accounts receivable | 21,864 | 9,318 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | 13,766 | 9,489 | |||||||||
Payable to loyalty program partners | 78,270 | 69,749 | |||||||||
Financial liabilities | $ 94,363 | $ 80,233 | |||||||||
CAD [Member] | |||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||
FX Rates used to translate to USD | Rates | 0.76750 | 0.73361 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | $ 3,814 | $ 3,667 | |||||||||
Cash held in trust and restricted cash | 3,302 | ||||||||||
Funds receivable from payment processors | 422 | 221 | |||||||||
Accounts receivable | 1,653 | 691 | |||||||||
Financial assets | 9,191 | 4,579 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | 5,239 | 1,370 | |||||||||
Payable to loyalty program partners | 4,456 | 1,380 | |||||||||
Financial liabilities | $ 9,695 | $ 2,750 | |||||||||
GBP [Member] | |||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||
FX Rates used to translate to USD | Rates | 1.31710 | 1.27356 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | £ | £ 4,256 | £ 8,430 | |||||||||
Cash held in trust and restricted cash | £ | 0 | ||||||||||
Funds receivable from payment processors | £ | 862 | 740 | |||||||||
Accounts receivable | £ | 3,129 | 2,597 | |||||||||
Financial assets | £ | 8,247 | 11,767 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | £ | 3,221 | 2,547 | |||||||||
Payable to loyalty program partners | £ | 6,111 | 8,237 | |||||||||
Financial liabilities | £ | £ 9,332 | £ 10,784 | |||||||||
EUR [Member] | |||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||
FX Rates used to translate to USD | Rates | 1.12170 | 1.14449 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | € | € 2,826 | € 5,660 | |||||||||
Cash held in trust and restricted cash | € | 0 | ||||||||||
Funds receivable from payment processors | € | 867 | 1,556 | |||||||||
Accounts receivable | € | 859 | 774 | |||||||||
Financial assets | € | 4,552 | 7,990 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | € | 102 | 774 | |||||||||
Payable to loyalty program partners | € | 5,345 | 5,382 | |||||||||
Financial liabilities | € | € 5,447 | € 6,156 | |||||||||
JPY [Member] | |||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||
FX Rates used to translate to USD | Rates | 0.009213 | 0.00909 | |||||||||
Financial assets | |||||||||||
Cash and cash equivalents | ¥ | ¥ 183,018 | ¥ 97,455 | |||||||||
Cash held in trust and restricted cash | ¥ | 0 | ||||||||||
Funds receivable from payment processors | ¥ | 26,241 | 30,043 | |||||||||
Accounts receivable | ¥ | 62,993 | 68,795 | |||||||||
Financial assets | ¥ | 272,252 | 196,293 | |||||||||
Financial liabilities | |||||||||||
Accounts payable and accrued liabilities | ¥ | 8,773 | 18,515 | |||||||||
Payable to loyalty program partners | ¥ | 89,531 | 71,868 | |||||||||
Financial liabilities | ¥ | ¥ 98,304 | ¥ 90,383 |
FINANCIAL INSTRUMENTS - Discl_5
FINANCIAL INSTRUMENTS - Disclosure of fair value measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange forward contracts designated as cash flow hedges | $ 229 | $ 0 |
Financial assets and liabilities | 228 | (878) |
Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets and liabilities | 228 | (878) |
Financial assets [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange forward contracts designated as cash flow hedges | 229 | 0 |
Financial assets [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange forward contracts designated as cash flow hedges | 229 | 0 |
Financial liabilities [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange forward contracts designated as cash flow hedges | (1) | (878) |
Financial liabilities [Member] | Level 2 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Foreign exchange forward contracts designated as cash flow hedges | $ (1) | $ (878) |
GUARANTEES AND COMMITMENTS - Di
GUARANTEES AND COMMITMENTS - Disclosure of commitments and contingent liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure of direct cost of revenue [Line items] | |
Direct cost of revenue | $ 649,283 |
Year 1 [Member] | |
Disclosure of direct cost of revenue [Line items] | |
Direct cost of revenue | 176,595 |
Year 2 [Member] | |
Disclosure of direct cost of revenue [Line items] | |
Direct cost of revenue | 162,504 |
Year 3 [Member] | |
Disclosure of direct cost of revenue [Line items] | |
Direct cost of revenue | 130,679 |
Year 4 [Member] | |
Disclosure of direct cost of revenue [Line items] | |
Direct cost of revenue | 130,116 |
Year 5+ [Member] | |
Disclosure of direct cost of revenue [Line items] | |
Direct cost of revenue | $ 49,389 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Disclosure of detailed information about non-cash balances related to operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Supplemental Cash Flow Information [Abstract] | ||
Decrease (Increase) in funds receivable from payment processors | $ (790) | $ 1,717 |
Increase in accounts receivable | (12,546) | (1,577) |
Decrease in prepaid taxes | 189 | 74 |
Decrease (Increase) in prepaid expenses and other assets | 1,356 | (1,655) |
Decrease (Increase) in other assets | (216) | 2,661 |
Increase in accounts payable and accrued liabilities | 4,277 | 1,491 |
Increase (Decrease) in income taxes payable | 2,209 | (578) |
Increase (Decrease) in other liabilities | (800) | 237 |
Increase in payable to loyalty program partners | 8,521 | 4,182 |
Total non-cash balances related to operations | $ 2,200 | $ 6,552 |
RELATED PARTIES - Disclosure of
RELATED PARTIES - Disclosure of information about key management personnel (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | ||
Short-term employee salaries and benefits | $ 2,260 | $ 2,382 |
Share-based payments | 4,119 | 3,232 |
Total compensation | $ 6,379 | $ 5,614 |