Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 17, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TUCOWS INC /PA/ | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 11,185,384 | ' |
Entity Public Float | ' | ' | $64,500,000 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000909494 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $12,418,888 | $6,415,679 |
Accounts receivable, net of allowance for doubtful accounts of $91,226 as of December 31, 2013 and $73,970 as of December 31, 2012 | 5,305,403 | 4,413,265 |
Inventory | 309,686 | 587,104 |
Prepaid expenses and deposits | 4,309,039 | 5,081,408 |
Derivative instrument asset, current portion (note 4) | ' | 412,944 |
Prepaid domain name registry and ancillary services fees, current portion | 44,209,591 | 45,170,167 |
Deferred tax asset, current portion (note 10) | 1,081,526 | ' |
Income taxes recoverable | 475,889 | 1,730,631 |
Total current assets | 68,110,022 | 63,811,198 |
Derivative instrument asset, long-term portion (note 4) | ' | 31,838 |
Prepaid domain name registry and ancillary services fees, long-term portion | 11,838,579 | 12,318,723 |
Property and equipment (note 5) | 1,757,836 | 1,352,144 |
Deferred tax asset, long-term portion (note 10) | 5,370,037 | 5,970,462 |
Intangible assets (note 6) | 15,403,228 | 16,415,651 |
Goodwill (note 3) | 18,873,127 | 18,873,127 |
Total assets | 121,352,829 | 118,773,143 |
Current liabilities: | ' | ' |
Accounts payable | 2,361,481 | 1,928,459 |
Accrued liabilities | 3,913,034 | 2,522,229 |
Customer deposits | 4,500,946 | 4,955,671 |
Derivative instrument liability, current portion (note 4) | 491,098 | ' |
Loan payable (note 7) | 6,300,000 | 3,700,000 |
Deferred revenue, current portion | 54,379,719 | 54,997,887 |
Accreditation fees payable, current portion | 473,811 | 512,847 |
Deferred tax liability, current portion (note 10) | ' | 914,429 |
Income taxes payable (note10) | 1,024,004 | 1,255,108 |
Total current liabilities | 73,444,093 | 70,786,630 |
Deferred revenue, long-term portion | 15,638,517 | 16,002,464 |
Accreditation fees payable, long-term portion | 135,522 | 145,592 |
Deferred rent, long-term portion | 75,979 | 54,150 |
Deferred tax liability, long-term portion (note 10) | 5,141,500 | 5,234,100 |
Stockholders' equity (note 8) | ' | ' |
Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock - no par value, 250,000,000 shares authorized;10,907,063 shares issued and outstanding as of December 31, 2013 and 11,080,540 shares issued and outstanding as of December 31, 2012 | 11,859,267 | 10,084,417 |
Additional paid-in capital | 28,632,311 | 33,931,529 |
Deficit | -13,329,379 | -17,509,843 |
Accumulated other comprehensive income (loss) | -244,981 | 44,104 |
Total stockholders' equity | 26,917,218 | 26,550,207 |
Total liabilities and stockholders' equity | 121,352,829 | 118,773,143 |
Commitments and contingencies (note 13) | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts (in Dollars) | $91,226 | $73,970 |
Preferred stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred stock - shares issued | 0 | 0 |
Preferred stock - shares outstanding | 0 | 0 |
Preferred stock - no par value (in Dollars per share) | $0 | $0 |
Common stock shares authorized | 250,000,000 | 250,000,000 |
Common stock shares issued | 10,907,063 | 11,080,540 |
Common stock shares outstanding | 10,907,063 | 11,080,540 |
Common stock - no par value (in Dollars per share) | $0 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net revenues (note 16) | $129,934,904 | $114,726,901 | $97,064,967 |
Cost of revenues (note 16): | ' | ' | ' |
Cost of revenues | 92,960,321 | 82,837,395 | 68,088,387 |
Network expenses (*) | 4,835,939 | 4,925,058 | 4,837,650 |
Depreciation of property and equipment | 627,973 | 611,640 | 750,455 |
Amortization of intangible assets | 83,790 | 143,640 | 85,590 |
Total cost of revenues | 98,508,023 | 88,517,733 | 73,762,082 |
Gross profit | 31,426,881 | 26,209,168 | 23,302,885 |
Expenses: | ' | ' | ' |
Sales and marketing (*) | 12,141,036 | 8,701,446 | 7,442,681 |
Technical operations and development (*) | 4,158,603 | 4,302,820 | 4,868,228 |
General and administrative (*) | 7,204,895 | 6,610,819 | 6,096,596 |
Depreciation of property and equipment | 215,447 | 190,420 | 187,005 |
Loss on disposition of property and equipment | ' | 118,944 | 42,165 |
Amortization of intangible assets | 876,120 | 876,120 | 1,004,950 |
Loss (gain) on currency forward contracts (note 2(k)) | 676,120 | -682,851 | 535,223 |
Total expenses | 25,272,221 | 20,117,718 | 20,176,848 |
Income from operations | 6,154,660 | 6,091,450 | 3,126,037 |
Other income (expense): | ' | ' | ' |
Interest expense, net | -354,857 | -192,863 | -50,404 |
Other income, net (note 11) | ' | 529,711 | 374,977 |
Total other income (expense) | -354,857 | 336,848 | 324,573 |
Income before provision for income taxes | 5,799,803 | 6,428,298 | 3,450,610 |
Provision for (recovery of) income taxes (note 10) | 1,619,339 | 2,004,156 | -2,719,621 |
Net income | 4,180,464 | 4,424,142 | 6,170,231 |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Unrealized income (loss) on hedging activities | -260,624 | 44,104 | ' |
Net amount reclassified to earnings | -28,461 | ' | ' |
Other comprehensive income (loss), net of tax of $150,587 (2012 : $22,975) | -289,085 | 44,104 | ' |
Comprehensive income for the year | 3,891,379 | 4,468,246 | 6,170,231 |
Basic earnings per common share (note 12) (in Dollars per share) | $0.40 | $0.39 | $0.46 |
Shares used in computing basic earnings per common share (note 12) (in Shares) | 10,468,250 | 11,458,216 | 13,363,669 |
Diluted earnings per common share (note 12) (in Dollars per share) | $0.37 | $0.36 | $0.44 |
Shares used in computing diluted earnings per common share (note 12) (in Shares) | 11,281,409 | 12,283,736 | 13,937,359 |
Network expenses | 31,664 | 24,480 | 22,972 |
Sales and marketing | 129,302 | 92,168 | 91,244 |
Technical operations and development | 78,800 | 59,141 | 51,984 |
General and administrative | $191,137 | $184,910 | $144,756 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Other comprehensive income, net of tax | $150,587 | $22,975 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders’ Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balances, at Dec. 31, 2010 | $11,324,866 | $40,700,587 | ($28,104,216) | ' | $23,921,237 |
Balances, (in Shares) at Dec. 31, 2010 | 13,362,949 | ' | ' | ' | ' |
Exercise of stock options | 38,846 | -7,500 | ' | ' | 31,346 |
Exercise of stock options (in Shares) | 18,427 | ' | ' | ' | 18,427 |
Repurchase and retirement of shares | -4,753 | -13,689 | ' | ' | -18,442 |
Repurchase and retirement of shares (in Shares) | -5,942 | ' | ' | ' | ' |
Cancellation of restricted stock (in Shares) | -238 | ' | ' | ' | ' |
Other proceeds | ' | 3,659 | ' | ' | 3,659 |
Stock-based compensation | ' | 310,956 | ' | ' | 310,956 |
Net income for the year | ' | ' | 6,170,231 | ' | 6,170,231 |
Balances, at Dec. 31, 2011 | 11,358,959 | 40,994,013 | -21,933,985 | ' | 30,418,987 |
Balances, (in Shares) at Dec. 31, 2011 | 13,375,196 | ' | ' | ' | ' |
Exercise of stock options | 713,746 | -295,638 | ' | ' | 418,108 |
Exercise of stock options (in Shares) | 191,585 | ' | ' | ' | 191,585 |
Repurchase and retirement of shares | -1,988,288 | -7,127,545 | ' | ' | -9,115,833 |
Repurchase and retirement of shares (in Shares) | -2,485,360 | ' | ' | ' | ' |
Cancellation of restricted stock (in Shares) | -81 | ' | ' | ' | ' |
Stock-based compensation | ' | 360,699 | ' | ' | 360,699 |
Net income for the year | ' | ' | 4,424,142 | ' | 4,424,142 |
Other comprehensive income (loss) | ' | ' | ' | 44,104 | 44,104 |
Balances, at Dec. 31, 2012 | 10,084,417 | 33,931,529 | -17,509,843 | 44,104 | 26,550,207 |
Balances, (in Shares) at Dec. 31, 2012 | 11,081,340 | ' | ' | ' | ' |
Exercise of stock options | 2,626,352 | -1,134,178 | ' | ' | 1,492,174 |
Exercise of stock options (in Shares) | 890,034 | ' | ' | ' | 890,033 |
Repurchase and retirement of shares | -851,502 | -5,686,114 | ' | ' | -6,537,616 |
Repurchase and retirement of shares (in Shares) | -1,064,299 | ' | ' | ' | ' |
Cancellation of restricted stock (in Shares) | -12 | ' | ' | ' | ' |
Income tax effect related to stock options exercised | ' | 1,090,171 | ' | ' | 1,090,171 |
Stock-based compensation | ' | 430,903 | ' | ' | 430,903 |
Net income for the year | ' | ' | 4,180,464 | ' | 4,180,464 |
Other comprehensive income (loss) | ' | ' | ' | -289,085 | -289,085 |
Balances, at Dec. 31, 2013 | $11,859,267 | $28,632,311 | ($13,329,379) | ($244,981) | $26,917,218 |
Balances, (in Shares) at Dec. 31, 2013 | 10,907,063 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net income for the year | $4,180,464 | $4,424,142 | $6,170,231 |
Items not involving cash: | ' | ' | ' |
Depreciation of property and equipment | 843,420 | 802,060 | 937,460 |
Loss on disposition of property and equipment | ' | 118,944 | 42,165 |
Amortization of deferred financing charges | ' | 2,300 | 13,300 |
Amortization of intangible assets | 876,120 | 876,120 | 1,004,950 |
Deferred income taxes (recovery) | -247,371 | 832,736 | -3,046,669 |
Excess tax benefits from share-based compensation expense | -1,090,171 | ' | ' |
Amortization of deferred rent | 21,829 | 27,663 | 26,487 |
Acquisition of domain names | ' | -3,664 | ' |
Disposal of domain names | 52,513 | 50,843 | 34,071 |
Gain on disposition of intangible assets | ' | -508,800 | ' |
(Gain) loss on change in the fair value of forward contracts | 496,207 | -1,100,161 | 1,533,443 |
Stock-based compensation | 430,903 | 360,699 | 310,956 |
Change in non-cash operating working capital: | ' | ' | ' |
Accounts receivable | -892,138 | -533,081 | -270,594 |
Inventory | 277,418 | -381,507 | -205,597 |
Prepaid expenses and deposits | 772,369 | -1,325,100 | -923,909 |
Prepaid domain name registry and ancillary services fees | 1,440,720 | -1,679,703 | -4,855,039 |
Income taxes recoverable | 1,023,638 | 233,312 | -261,215 |
Accounts payable | 529,537 | 931,467 | -611,532 |
Accrued liabilities | 1,390,805 | 547,590 | 515,931 |
Customer deposits | -454,725 | 752,772 | 209,984 |
Deferred revenue | -982,115 | 1,824,650 | 5,179,716 |
Accreditation fees payable | -49,106 | -53,491 | -4,460 |
Net cash provided by operating activities | 8,704,107 | 6,343,431 | 5,885,269 |
Financing activities: | ' | ' | ' |
Proceeds received on exercise of stock options | 1,492,174 | 418,108 | 31,346 |
Excess tax benefits from share-based compensation expense | 1,090,171 | ' | ' |
Repurchase of common stock | -6,537,616 | -9,115,833 | -18,442 |
Proceeds received on short swing sale | ' | ' | 3,659 |
Proceeds received on loan payable | 5,200,000 | 4,000,000 | 2,530,000 |
Repayment of loan payable | -2,600,000 | -1,150,000 | -2,985,883 |
Net cash used in financing activities | -1,355,271 | -5,847,725 | -439,320 |
Investing activities: | ' | ' | ' |
Additions to property and equipment | -1,345,627 | -997,036 | -851,008 |
Acquisition of EPAG Domainservices GMBH, net of cash acquired | ' | ' | -2,392,461 |
Proceeds on disposal of intangible assets | ' | 508,800 | ' |
Net cash used in investing activities | -1,345,627 | -488,236 | -3,243,469 |
Increase in cash and cash equivalents | 6,003,209 | 7,470 | 2,202,480 |
Cash and cash equivalents, beginning of year | 6,415,679 | 6,408,209 | 4,205,729 |
Cash and cash equivalents, end of year | 12,418,888 | 6,415,679 | 6,408,209 |
Supplemental cash flow information: | ' | ' | ' |
Interest paid | 372,853 | 195,509 | 53,166 |
Income taxes paid, net | 793,000 | 1,025,000 | 550,000 |
Supplementary disclosure of non-cash investing and financing activities: | ' | ' | ' |
Property and equipment acquired during the period not yet paid for | ' | 96,515 | 257,967 |
Other Intangible Assets [Member] | ' | ' | ' |
Items not involving cash: | ' | ' | ' |
Amortization of intangible assets | $959,910 | $1,019,760 | $1,090,540 |
Note_1_Organization_of_the_Com
Note 1 - Organization of the Company: | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. Organization of the Company: | |
Tucows Inc. (the “Company”) is a global distributor of Internet services, including domain name registration, security and identity products through digital certificates, email and mobile telephony services through its global Internet-based distribution network of Internet Service Providers, web hosting companies and other providers of Internet services to end-users. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Significant Accounting Policies [Text Block] | ' | ||||
2. Significant accounting policies: | |||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise noted. Certain of the prior year comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year. In December 2013, our Board of Directors authorized a one-for-four share consolidation of our common stock, in the form of a reverse stock split, as further described in note 8. All share information related to shares outstanding and earnings per share have been retroactively adjusted to reflect this share consolidation. | |||||
(a) Basis of presentation | |||||
These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. | |||||
Investments over which the Company is unable to exercise significant influence, are recorded at cost and written down only when there is evidence that a decline in value that is other than temporary has occurred. | |||||
(b) Use of estimates | |||||
The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for or carrying values of revenues, bad debts, goodwill and intangible assets which require estimates of future cash flows and discount rates, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. | |||||
(c) Cash and cash equivalents | |||||
All highly liquid investments, with an original term to maturity of three months or less are classified as cash and cash equivalents. | |||||
(d) Inventory | |||||
Inventory primarily consists of mobile devices and other accessories, and is stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device or accessory shipped. | |||||
The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may be required to write down the value of inventory. | |||||
(e) Property and equipment | |||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: | |||||
Asset | Rate | ||||
Computer equipment | 30 | % | |||
Computer software | 100 | % | |||
Furniture and equipment | 20 | % | |||
Leasehold improvements | Over term of lease | ||||
The Company reviews the carrying values of its property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated undiscounted future cash flows expected to result from the use of the group of assets and its eventual disposition is less than its carrying amount, it is considered to be impaired. The amount of the impairment loss recognized is measured as the amount by which the carrying value of the asset exceeds the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the assets. | |||||
(f) Goodwill and Intangible assets | |||||
Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. Finite life intangible assets, related to the acquisition of EPAG Domainservices GMBH (“EPAG”) in August 2011, are being amortized on a straight-line basis over periods of two to seven years, and consist of technology, brand and customer relationships. Finite life intangible assets, related to the acquisition of Innerwise, Inc. in July 2007, are being amortized on a straight-line basis over periods of five to seven years, and consist of brand and customer relationships. Indefinite life intangible assets, acquired in the acquisition of Mailbank.com Inc. in June 2006, consist of surname domain names and direct navigation domain names. | |||||
The Company does not amortize goodwill and indefinite life intangibles, but tests for impairment annually or more frequently if circumstances indicate potential impairment, through a comparison of fair value to its carrying amount. The Company reviews goodwill at least annually for possible impairment in the fourth quarter of each year. | |||||
Goodwill is tested for impairment as part of a two-step process. The first step uses a market approach that is based on the publicly traded common shares of the Company to estimate fair value. If the carrying value is less than the fair value, no impairment exists and the second step need not be performed. If the carrying value is greater than the fair value then the second step will be performed. In the second step, the impairment is computed by comparing the implied fair value of the Company’s goodwill with the carrying amount of that goodwill. | |||||
For the second step the Company uses a discounted cash flow or income approach in which future expected cash flows are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. | |||||
Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. At December 31, 2013, the Company had goodwill of $18.9 million. The Company completed its latest annual impairment test and fair value analysis for goodwill, and there were no impairments present and no impairment charge was recorded during the years ended December 31, 2013, 2012 and 2011. | |||||
The Company has other finite life intangible assets consisting of patented and non-patented technologies. These intangible assets are amortized over their expected economic lives. The lives are determined based upon the expected use of the asset, the stability of the industry, expected changes in and replacement value of distribution networks and other factors deemed appropriate. | |||||
The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its definite- lived intangible assets may warrant revision or that the remaining balance of such assets may not be recoverable. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. There was no impairment recorded on definite-life intangible assets and other long-lived assets during 2013 and 2012. | |||||
(g) Revenue recognition | |||||
The Company’s revenues are derived from domain name registration fees on both a wholesale and retail basis, the sale of domain names, the provisioning of other Internet services and advertising and other revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. | |||||
The Company earns registration fees in connection with each new, renewed and transferred-in registration and from providing provisioning of other Internet services to resellers and registrars on a monthly basis. Service has been provided in connection with registration fees once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards. | |||||
Domain names are generally purchased for terms of one to ten years. Registration fees charged for domain name registration and provisioning services are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned for annual periods or longer, are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned on a monthly basis are recognized as services are provided. | |||||
For arrangements with multiple deliverables, the Company allocates revenue to each deliverable if the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The fair value of the selling price for a deliverable is determined using a hierarchy of (1) Company specific objective and reliable evidence, then (2) third-party evidence, then (3) best estimate of selling price. The Company allocates any arrangement fee to each of the elements based on their relative selling prices. | |||||
Revenue generated from the sale of domain names, earned from transferring the rights to domain names under the Company’s control, are recognized once the rights have been transferred and payment has been received in full. | |||||
The Company derives revenues from the provisioning of mobile phone services through its Ting website. These revenues are recognized once services have been provided. Revenues for wireless services are billed based on the actual amount of monthly services utilized by each customer during their billing cycle on a postpaid basis. The Company’s billing cycle for each customer is computed based on the customer’s activation date. As a result, the Company estimates the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting period. In addition, revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. | |||||
The Company also generates advertising and other revenue through its online libraries of shareware, freeware and online services presented on its website. Advertising and other revenues are recognized ratably over the period in which it is presented. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impressions are achieved. | |||||
In those cases where payment is not received at the time of sale, additional conditions for recognition of revenue are that the collection of the related accounts receivable is reasonably assured and the Company has no further performance obligations. The Company records costs that reflect expected refunds, rebates and credit card charge-backs as a reduction of revenues at the time of the sale based on historical experiences and current expectations. | |||||
The Company establishes provisions for possible uncollectible accounts receivable and other contingent liabilities which may arise in the normal course of business. Historically, credit losses have been within the Company’s expectations and the provisions the Company has established have been appropriate. However, the Company has, on occasion, experienced issues which have led to accounts receivable not being fully collected. Should these issues occur more frequently, additional provisions may be required. | |||||
(h) Deferred revenue | |||||
Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other Internet services, on both a wholesale and retail basis, net of external commissions. Revenue received in advance of the provision of services from our software libraries advertising is deferred and recognized in the month that the services are provided. | |||||
(i) Accreditation fees payable | |||||
In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. | |||||
(j) Prepaid domain name registry fees | |||||
Prepaid domain name registry and other Internet services fees represent amounts paid to registries, and country code domain name operators for updating and maintaining the registries, as well as to suppliers of other Internet services. Domain name registry and other Internet services fees are recognized on a straight-line basis over the life of the contracted registration term. | |||||
(k) Translation of foreign currency transactions | |||||
The Company’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the average rate for the year. A foreign exchange gain amounting to $0.3 million has been recorded in general and administrative expenses during the year ended December 31, 2013 (“Fiscal 2013”). A foreign exchange gain amounting to $8,000 has been recorded in general and administrative expenses during the year ended December 31, 2012 (“Fiscal 2012”). A foreign exchange loss amounting to $0.1 million has been recorded in general and administrative expenses during the year ended December 31, 2011 (“Fiscal 2011”). | |||||
(l) Derivative Financial Instruments | |||||
During Fiscal 2103 and Fiscal 2012, we used derivative financial instruments to manage foreign currency exchange risk. We account for these instruments in accordance with ASC Topic 815, “Derivatives and Hedging” (Topic 815), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Topic 815 also requires that changes in our derivative financial instruments’ fair values be recognized in earnings, unless specific hedge accounting and documentation criteria are met (i.e. the instruments are accounted for as hedges). We recorded the effective portions of the gain or loss on derivative financial instruments that were designated as cash flow hedges in accumulated other comprehensive income in our accompanying Consolidated Balance Sheets. Any ineffective or excluded portion of a designated cash flow hedge, if applicable, is recognized in net income. | |||||
For certain contracts, the Company has not complied with the documentation standards required for its forward foreign exchange contracts to be accounted for as hedges and has, therefore, accounted for such forward foreign exchange contracts at their fair values with the changes in fair value recorded in net income. | |||||
The fair value of the forward exchange contracts are determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company and the counterparty credit risk. | |||||
(m) Product development costs | |||||
Product development costs are expensed as incurred. The Company accounts for the costs of computer software developed or obtained for internal use as follows: costs that are incurred in the preliminary stage of software development are expensed as incurred. Costs incurred during the application and development stage are capitalized and generally include external direct costs of materials and services consumed in the development and payroll and payroll- related costs for employees who are directly associated with the development project. Costs incurred in the post implementation and operation stage are expensed as incurred. During the years ended December 31, 2013, 2012 and 2011, the Company did not capitalize any amounts of such costs relating to the development of internal use software. The capitalized costs of computer software developed for internal use are amortized on a straight-line basis over one year from the date the software is put into use. | |||||
(n) Income taxes | |||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not “more likely than not” that some portion of or all of a deferred tax asset will be realized. | |||||
The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The liability for unrecognized tax benefits is classified as non-current unless the liability is expected to be settled in cash within 12 months of the reporting date. | |||||
The Company is entitled to earn investment tax credits (“ITCs”), which are credits related to specific qualifying expenditures as prescribed by Canadian Income Tax legislation. These ITCs relate primarily to research and development expenses. The ITCs are recognized as a reduction in income tax expense once the Company has reasonable assurance that the amounts will be realized. | |||||
(o) Stock-based compensation | |||||
Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As stock-based compensation expense recognized in net income for 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. | |||||
(p) Earnings per common share | |||||
Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. | |||||
(q) Concentration of credit risk | |||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable and forward foreign exchange contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three months or less from the date of purchase. With respect to accounts receivable, the Company performs periodic credit evaluations of the financial condition of its customers and typically does not require collateral from them. The counterparty to any forward foreign exchange contracts is a major commercial bank which management believes does not represent a significant credit risk. Management assesses the need for allowances for potential credit losses by considering the credit risk of specific customers, historical trends and other information. No customer accounted for more than 10% of revenue in 2013, 2012 or 2011. No customers accounted for 10% of accounts receivable at December 31, 2013, no customer accounted for 10% of accounts receivable at December 31, 2012, and one customer accounted for 16% of accounts receivable at December 31, 2011. All of these accounts receivable have subsequently been collected. | |||||
(r) Fair values of financial assets and financial liabilities | |||||
The fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 measurements) approximate their carrying values due to the relatively short periods to maturity of the instruments. | |||||
The fair value of the forward exchange contracts are determined using an estimated credit-adjusted mark-to-market valuation (a level 2 measurement) which takes into consideration the Company and the counterparty credit risk. | |||||
(s) Segment reporting | |||||
The Company operates in two business segments, Domain Services and Network Access Services. | |||||
The Company’s revenues are attributed to the country in which the contract originates, primarily Canada. Revenues from domain names issued from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. | |||||
The Company’s assets are located in Canada, the United States, Germany and the Netherlands. All of the Company’s goodwill and intangible assets are allocated to the Domain Services business segment. | |||||
Recent Accounting Pronouncements Adopted | |||||
Testing Indefinite-Lived Intangible Assets for Impairment | |||||
On January 1, 2013, the Company adopted Accounting Standards Update No. 2012-02, Intangibles —Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”) which allows entities to use a qualitative approach to test indefinite-lived intangible assets for impairment. ASU 2012-02 allows an entity to first perform a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that this is the case, it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. The adoption of ASU 2012-02 did not materially impact the carrying value of our recorded indefinite-lived intangible assets. The Company performed its annual indefinite-lived intangible asset impairment test on December 31, 2013 using the market approach as described in Note 2(f). | |||||
Reclassification Out of Accumulated Other Comprehensive Income | |||||
The Company adopted Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” (“ASU 2013-02”), effective January 1, 2013. ASU 2013-02 was applied prospectively, which requires expanded disclosures for amounts reclassified out of accumulated other comprehensive income by component. The guidance requires the presentation of amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, a cross-reference to other disclosures that provide additional detail about those amounts is required. The adoption of ASU 2013-02 did not materially impact the Company’s consolidated financial statements. | |||||
Recent Accounting Pronouncements Not Yet Adopted | |||||
On July 18, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11, which is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. We are currently evaluating the impact of our pending adoption of ASU 2013-11 on our Consolidated Financial Statements. |
Note_3_Business_Acquisitions
Note 3 - Business Acquisitions | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||||||||||
3. Business acquisitions: | |||||||||||||||||||||||||
a. Goodwill: | |||||||||||||||||||||||||
Goodwill represents the excess of purchase price over the fair value of tangible or identifiable intangible assets acquired and liabilities assumed in our acquisitions. Intangible assets consist of acquired technology, brand, customer relationships, non-competition agreements, surname domain names and direct navigation domain names. Intangible assets, comprising technology, brand, customer relationships and non-competition arrangements related to the acquisition of Boardtown Corporation in April 2004, the acquisition of the Hosted Messaging Business of Critical Path, Inc. in January 2006, the acquisition of Mailbank.com Inc. in June 2006, the acquisition of Innerwise, Inc. in July 2007 and the acquisition of EPAG Domainservices GmbH in August 2011, are being amortized on a straight-line basis over periods of two to seven years. | |||||||||||||||||||||||||
The Company has other finite life intangible assets consisting of patented and non-patented technologies. These intangible assets are amortized over their expected economic lives. The lives are determined based upon the expected use of the asset, the estimated average life of the replacement parts of the reporting unit’s products, the stability of the industry, expected changes in and replacement value of distribution networks and other factors deemed appropriate. | |||||||||||||||||||||||||
Goodwill consists of the following: | |||||||||||||||||||||||||
Boardtown | Hosted | Innerwise | Mailbank.com | EPAG | Total | ||||||||||||||||||||
Corporation | Messaging | Inc. | Inc. | Domainservices | |||||||||||||||||||||
Assets of | GmbH | ||||||||||||||||||||||||
Critical Path | |||||||||||||||||||||||||
Balances, December 31, 2011 | $ | 2,044,847 | $ | 4,072,297 | $ | 5,801,040 | $ | 6,072,623 | $ | 882,320 | $ | 18,873,127 | |||||||||||||
Balances, December 31, 2012 | $ | 2,044,847 | $ | 4,072,297 | $ | 5,801,040 | $ | 6,072,623 | $ | 882,320 | $ | 18,873,127 | |||||||||||||
Balances, December 31, 2013 | $ | 2,044,847 | $ | 4,072,297 | $ | 5,801,040 | $ | 6,072,623 | $ | 882,320 | $ | 18,873,127 | |||||||||||||
The Company accounts for goodwill in accordance with FASB’s authoritative guidance, which requires that goodwill and certain intangible assets are not amortized, but are subject to an annual impairment test. The Company completes its goodwill and certain intangible assets impairment test on an annual basis, during the fourth quarter of its fiscal year, or more frequently, if changes in facts and circumstances indicate that impairment in the value of goodwill and certain intangible assets recorded on its balance sheet may exist. The Company determined the estimated fair value for its reporting unit using the market approach that is based on the publicly traded common shares of the Company to estimate fair value. The carrying value was greater than the fair value, therefore no impairment exists and the second step was not performed. | |||||||||||||||||||||||||
With regards to property, equipment and definite life intangible assets, the Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its definite-life intangible assets may warrant revision or that the remaining balance of such assets may not be recoverable. The Company measures recoverability of assets to be held and used by comparing the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. Recoverability measurement and estimation of undiscounted cash flows is done at the lowest possible levels for which there are identifiable cash flows. If such assets fail the recoverability test, the impairment to be recognized is measured as the amount by which the carrying amount of assets exceeds the fair value of the assets. Assets to be disposed of are recorded at the lower of the carrying amount or fair value less costs to sell. Management must exercise judgment in determining whether an event has occurred that may impair the value of the long-lived assets. Factors that could indicate that impairment may exist include significant underperformance relative to a plan or long-term projections, significant changes in business strategy, significant negative industry or economic trends or a significant decline in our stock price or in the value of our reporting units for a sustained period of time. There was no impairment recorded on definite-life intangible assets and property and equipment during 2013 and 2012. As of December 31, 2013, the Company had $15.4 million in intangible assets. |
Note_4_Derivative_Instrument_A
Note 4 - Derivative Instrument Assets/Liabilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||||||
4. Derivative instruments and hedging activities: | |||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||
In October 2012, the Company entered in to a hedging program with a Canadian chartered bank to limit the potential foreign exchange fluctuations incurred on its future cash flows related to a portion of payroll, rent and payments to a Canadian domain name registry supplier that are denominated in Canadian dollars and are expected to be paid by its Canadian operating subsidiary. As part of its risk management strategy, the Company uses derivative instruments to hedge a portion of the foreign exchange risk associated with these costs. The Company does not use these forward contracts for trading or speculative purposes. These forward contracts typically mature between one and eighteen months. | |||||||||||||||||||||
The Company has designated these transactions as cash flow hedges of forecasted transactions under ASC Topic 815 “Derivatives and Hedging” (ASC Topic 815). As the critical terms of the hedging instrument, and of the entire hedged forecasted transaction, are the same, in accordance with ASC Topic 815, the Company has been able to conclude that changes in fair value or cash flows attributable to the risk of being hedged are expected to completely offset at inception and on an ongoing basis. Accordingly, unrealized gains or losses on the effective portion of these contracts have been included within other comprehensive income. The fair value of the contracts, as of December 31, 2013 and 2012, is recorded as derivative instrument assets and liabilities. | |||||||||||||||||||||
As of December 31, 2013, the notional amount of forward contracts that the Company held to sell U.S. dollars in exchange for Canadian dollars was $26.5 million, of which $20.6 million met the requirements of ASC Topic 815 and were designated as hedges (December 31, 2012 - $29.3 million of which $15.1 million were designated as hedges). | |||||||||||||||||||||
Fair value of derivative instruments and effect of derivative instruments on financial performance | |||||||||||||||||||||
The effect of these derivative instruments on our consolidated financial statements as of, and for the year ended December 31, 2013, were as follows (amounts presented do not include any income tax effects). | |||||||||||||||||||||
Fair value of derivative instruments in the consolidated balance sheets (see note 14) | |||||||||||||||||||||
Derivatives | Balance Sheet | Year ended | Year ended | ||||||||||||||||||
Location | December 31, | December 31, | |||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Asset | Asset | ||||||||||||||||||||
(Liability) | (Liability) | ||||||||||||||||||||
Foreign currency forward contracts designated as cash flow hedges | Derivative instruments | $ | (118,505 | ) | $ | 377,703 | |||||||||||||||
Foreign currency forward contracts not designated as cash flow hedges | Derivative instruments | $ | (372,593 | ) | $ | 67,079 | |||||||||||||||
Total foreign currency forward contracts | Derivative instruments | $ | (491,098 | ) | $ | 444,782 | |||||||||||||||
Effects of derivative instruments on income and other comprehensive income (OCI) | |||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||
Hedging Relationship | |||||||||||||||||||||
Operating expenses | (318,605 | ) | |||||||||||||||||||
Foreign currency forward contracts – year ended December 31, 2013 | $ | (289,085 | ) | Cost of revenues | (406 | ) | — | — | |||||||||||||
Foreign currency forward contracts – year ended December 31, 2012 | $ | 44,104 | — | — | — | — | |||||||||||||||
Note_5_Property_and_Equipment
Note 5 - Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||||
5. Property and equipment: | |||||||||||||
Property and equipment consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Computer equipment | $ | 6,937,495 | $ | 6,529,764 | |||||||||
Computer software | 1,175,664 | 1,157,609 | |||||||||||
Furniture and equipment | 711,346 | 542,213 | |||||||||||
8,824,505 | 8,229,586 | ||||||||||||
Less: | |||||||||||||
Accumulated depreciation | 7,066,669 | 6,877,442 | |||||||||||
$ | 1,757,836 | $ | 1,352,144 | ||||||||||
Depreciation of property and equipment: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation of property and equipment | $ | 843,420 | $ | 802,060 | $ | 937,460 | |||||||
Note_6_Intangible_Assets
Note 6 - Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||
6. Intangible assets: | |||||||||||||||||||||||||
Intangible assets consist of acquired technology, brand, customer relationships, non-competition agreements, surname domain names and direct navigation domain names. These balances are being amortized, where applicable, on a straight-line basis over the term of the intangible assets, as reflected in the table below. | |||||||||||||||||||||||||
Acquired intangible assets consist of the following: | |||||||||||||||||||||||||
Technology | Brand | Customer | Surname | Direct | |||||||||||||||||||||
relationships | domain names | navigation | |||||||||||||||||||||||
domain names | |||||||||||||||||||||||||
Amortization period | 7-Feb | 7 | 7-Apr | indefinite life | indefinite life | Total | |||||||||||||||||||
years | years | years | |||||||||||||||||||||||
Balances, December 31, 2011 | $ | 227,430 | $ | 571,930 | $ | 2,512,660 | $ | 12,120,077 | $ | 2,050,493 | $ | 17,482,590 | |||||||||||||
Additions to/(disposals from) domain portfolio, net | — | — | — | (10,060 | ) | (37,119 | ) | (47,179 | ) | ||||||||||||||||
Amortization expense | (143,640 | ) | (173,640 | ) | (702,480 | ) | — | — | (1,019,760 | ) | |||||||||||||||
Balances, December 31, 2012 | 83,790 | 398,290 | 1,810,180 | 12,110,017 | 2,013,374 | 16,415,651 | |||||||||||||||||||
Additions to/(disposals from) domain portfolio, net | — | — | — | (13,305 | ) | (39,208 | ) | (52,513 | ) | ||||||||||||||||
Amortization expense | (83,790 | ) | (173,640 | ) | (702,480 | ) | — | — | (959,910 | ) | |||||||||||||||
Balances, December 31, 2013 | $ | — | $ | 224,650 | $ | 1,107,700 | $ | 12,096,712 | $ | 1,974,166 | $ | 15,403,228 | |||||||||||||
The following table shows the estimated amortization expense for each of the next 5 years, assuming no further additions to acquired intangible assets are made: | |||||||||||||||||||||||||
Year ending | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | $ | 596,620 | |||||||||||||||||||||||
2015 | 205,320 | ||||||||||||||||||||||||
2016 | 205,320 | ||||||||||||||||||||||||
2017 | 205,320 | ||||||||||||||||||||||||
2018 | 119,770 | ||||||||||||||||||||||||
Total | $ | 1,332,350 | |||||||||||||||||||||||
Indefinite life intangible assets represent domain names acquired from third parties and surname and direct navigation domain names related to the acquisition of Mailbank.com Inc. in June 2006. These assets are not being amortized and are being tested for impairment annually and whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company uses a discounted cash flow or income approach to estimate the fair value of its indefinite life intangible assets. In the discounted cash flow approach, expected cash flows are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. At December 31, 2013, the Company had indefinite life assets of $14.1 million. The Company completed its latest annual impairment test and fair value analysis for indefinite life intangible assets, and there were no impairments present and no impairment charge was recorded during the years ended December 31, 2013, 2012 and 2011. |
Note_7_Loan_Payable
Note 7 - Loan Payable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Debt Disclosure [Text Block] | ' | ||||
7. Loan payable: | |||||
The Company has credit agreements (collectively the “Amended Credit Facility”) with the Bank of Montreal (the “Bank” or “BMO”) that were amended on November 19, 2012, and which provide it with access to two revolving demand loan facilities (the “2012 Demand Loan Facilities”), a treasury risk management facility and an operating demand loan. | |||||
Two Revolving Demand Loan Facilities. | |||||
The 2012 Demand Loan Facilities are governed by the terms of the Offer Letter, dated as of November 19, 2012, by and between the Company and the Bank and filed with the SEC on November 21, 2012. | |||||
Under the terms of the Amended Credit Facility, our prior demand loan facilities have been amended to provide an aggregate of $14 million in funds available through the 2012 Demand Loan Facilities, which consist of a demand loan revolving facility (the “2012 DLR Loan”) and a demand loan revolving reducing facility (the “2012 DLRR Loan”). The 2012 DLR Loan accrues interest at the Bank’s U.S. Base Rate plus 1.25%. The Company may elect to pay interest on the 2012 DLRR Loan either at the Bank’s U.S. Base Rate plus 1.25% or LIBOR plus 2.50%. Aggregate advances under the 2012 Demand Loan Facilities may not exceed $14 million and no more than $2 million of such advances may be used to finance repurchases of Company common stock. The 2012 Demand Loan Facilities are subject to an undrawn aggregate standby fee of 0.20% following the first draw, which such fee is payable quarterly in arrears. | |||||
Repayment of advances under the 2012 DLR Loan consist of interest only payments made monthly in arrears and prepayment is permitted without penalty. The outstanding balance under the 2012 DLR Loan as of December 31st of each year is to be fully repaid within 30 days of December 31st through an equivalent advance made under the 2012 DLRR Loan. Advances under the 2012 DLRR Loan will be made annually and solely for such purpose. Each advance under the 2012 DLRR Loan is to be repaid in equal monthly principal payments plus interest, over a period of four years from the date of such advance. At December 31, 2013, the outstanding balance under the 2012 DLR Loan was $5.2 million. At December 31, 2013, the outstanding balance under the 2012 DLRR Loan was $1.1 million. | |||||
On January 7, 2013, the Company successfully concluded a modified “Dutch auction tender offer”, which was funded from available cash and an advance under the 2012 DLR Loan in the amount of $5.2 million. Under the terms of the offer, the Company repurchased an aggregate of 4,114,121 shares of its common stock at a purchase price of $1.50 per share, for a total of $6,171,656, excluding transaction costs of approximately $106,000. At December 31, 2013, the outstanding balance under the 2012 DLR Loan was $5.2 million. | |||||
Treasury Risk Management Facility | |||||
The Amended Credit Facility also provides for a $3.5 million settlement risk line to assist the Company with hedging Canadian dollar exposure through foreign exchange forward contracts and/or currency options. Under the terms of the Amended Credit Facility, the Company may enter into such agreements at market rates with terms not to exceed 18 months. As of December 31, 2013, the Company held contracts in the amount of $26.5 million to trade U.S. dollars in exchange for Canadian dollars. | |||||
Operating Demand Loan | |||||
The Amended Credit Facility also provides the Company with a $1.0 million operating demand loan facility to assist in meeting its operational needs (the “Operating Demand Loan”). The Operating Demand Loan accrues interest at the Bank’s U.S. Base Rate plus 1.25%. Interest is payable monthly in arrears with any borrowing under the Operating Demand Loan fluctuating widely with periodic clean-up, at a minimum on an annual basis. The Company has also agreed to pay to the Bank a monthly monitoring fee of US$500 with respect to this loan. The Operating Demand Loan is payable on demand at any time, at the sole discretion of the Bank, with or without cause, and the Bank may terminate the Operating Demand Loan at any time. As of December 31, 2013, the Company had no amounts outstanding under its Operating Demand Loan. | |||||
General Terms | |||||
The Company’s Amended Credit Facility contains customary representations and warranties, affirmative and negative covenants, and events of default. The Company’s obligations under the Amended Credit Facility are guaranteed and secured by a security interest in substantially all of its assets. The Amended Credit Facility also requires that the Company comply with certain customary non-financial covenants and restrictions. In addition, the Company has agreed to comply with the following financial covenants at all times, which are to be calculated on a rolling four quarter basis: (i) Maximum Total Funded Debt to EBITDA of 2.00:1; and (ii) Minimum Fixed Charge Coverage of 1.20:1. Further, its Maximum Annual Capital Expenditures cannot exceed $3.6 million per year, which limit will be reviewed on an annual basis. As of, and for the year ended, December 31, 2013, the Company was in compliance with these covenants. | |||||
Scheduled principal loan repayments are as follows: | |||||
2014 | 2,300,000 | ||||
2015 | 1,400,000 | ||||
2016 | 1,300,000 | ||||
2017 | 1,300,000 | ||||
Note_8_Common_Shares
Note 8 - Common Shares | 12 Months Ended | ||
Dec. 31, 2013 | |||
Disclosure Text Block Supplement [Abstract] | ' | ||
Treasury Stock [Text Block] | ' | ||
8. Common shares: | |||
The Company’s authorized common share capital is 250 million shares of common stock without nominal or par value. On December 31, 2013, there were 10,907,063 shares of common stock outstanding. | |||
(a) | Share consolidation | ||
On December 30, 2013, the Company ceased trading on the NYSE Amex Exchange and began trading on the NASDAQ Exchange under the symbol “TCX”. In December 2013, our Board of Directors authorized a one-for-four share consolidation of our common stock, in the form of a reverse stock split. This consolidation was effective at the opening of trading on December 31, 2013. As a result of the share consolidation, every four shares of our common stock outstanding were automatically combined into one share of our common stock. Each shareholder continues to hold the same percentage of our outstanding common shares. The shares were rounded up to the next whole share for those holders who would have otherwise received fractional shares. The share consolidation was intended to make our common stock available to a broader range of investors and reposition the company’s trading metrics. All share information related to shares outstanding and earnings per share have been retroactively adjusted to reflect this stock consolidation. | |||
Repurchase of common shares: | |||
(a) Modified Dutch Tender Offers: | |||
On January 7, 2013, the Company announced that it successfully concluded a modified “Dutch auction tender offer” that was previously announced on November 21, 2012. Under the terms of the offer, the Company repurchased an aggregate of 1,028,531 shares of its common stock at a purchase price of $6.00 per share, for a total of $6,171,656, excluding transaction costs of approximately $106,000. The purchase price and all transaction costs were funded from available cash and an additional advance under our Amended Credit Facility from the Bank in the amount of $5.2 million. All shares purchased in the tender offer received the same price and all shares repurchased were immediately retired. As a result of the completion of the tender offer, as of January 31, 2013, the Company had 10,056,719 shares issued and outstanding. | |||
On January 23, 2012, the Company announced that it successfully concluded a modified “Dutch auction tender offer” that was previously announced on December 15, 2011. Under the terms of the offer, the Company repurchased an aggregate of 1,892,559 shares of its common stock at a purchase price of $3.08 per share, for a total of $5,829,082, excluding transaction costs of approximately $64,000. The purchase price and all transaction costs were funded from available cash and an additional advance under its Amended Credit Facility from the Bank in the amount of $4.0 million. All shares purchased in the tender offer received the same price and all shares repurchased were immediately cancelled. As a result of the completion of the tender offer, as of January 23, 2012, the Company had 11,511,764 shares issued and outstanding. | |||
(b) Normal Course Issuer Bids: | |||
On March 1, 2013, the Company announced a stock buyback program. Under this buyback program, the Company may repurchase up to $2.5 million of the Company's common stock over the 12-month period that commenced on March 1, 2013. The Company repurchased 35,769 shares under this program during the three and six month periods ended June 30, 2013 for a total of $259,875 | |||
On March 16, 2012, the Company announced that it was reinstating its previously announced stock buyback program, which initially commenced on November 11, 2011 and which was temporarily suspended when the Company undertook its Dutch auction tender offer. Under this buyback program, the Company may repurchase up to 960,000 shares of the Company's common stock over the 12-month period that commenced on November 15, 2011. The Company repurchased 592,801 shares under this program during the year ended December 31, 2012. |
Note_9_Stock_Option_Plans
Note 9 - Stock Option Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Shareholders' Equity and Share-based Payments [Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
9. Stock option plans: | ||||||||||||||||||||||||||||||||||||||||
The Company’s 1996 Stock Option Plan (the “1996 Plan”) was established for the benefit of the employees, officers, directors and certain consultants of the Company. The maximum number of common shares which may be set aside for issuance under the 1996 Plan was 2,787,500 shares, provided that the Board of Directors of the Company has the right, from time to time, to increase such number subject to the approval of the shareholders of the Company when required by law or regulatory authority. Generally, options issued under the 1996 Plan vest over a four-year period. The 1996 Plan expired on February 25, 2006; no options were issued from this plan after that date. | ||||||||||||||||||||||||||||||||||||||||
On November 22, 2006, the shareholders of the Company approved the Company’s 2006 Equity Compensation Plan (the “2006 Plan”), which was amended and restated effective July 29, 2010 and which serves as a successor to the 1996 Plan. The 2006 Plan has been established for the benefit of the employees, officers, directors and certain consultants of the Company. The maximum number of common shares which have been set aside for issuance under the 2006 Plan is 1.25 million shares. On October 8, 2010, the 2006 Plan was amended to increase the number of shares which have been set aside for issuance by an additional 0.475 million shares to 1.725 million shares. Generally, options issued under the 2006 Plan vest over a four-year period and have a term not exceeding seven years, except for automatic formula grants of non-qualified stock options, which are immediately exercisable and have a five year term. | ||||||||||||||||||||||||||||||||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company’s common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Tucows Inc. common shares at the date of grant. | ||||||||||||||||||||||||||||||||||||||||
The fair value of stock options granted during the years ended December 31, 2013, 2012 and 2011 was estimated using the following weighted average assumptions: | ||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Volatility | 69.4 | % | 52.1 | % | 73.7 | % | ||||||||||||||||||||||||||||||||||
Risk-free interest rate | 1.1 | % | 0.5 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||
Expected life (in years) | 4 | 4 | 4 | |||||||||||||||||||||||||||||||||||||
Dividend yield | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||||
The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant | $ | 4.52 | $ | 2.24 | $ | 1.52 | ||||||||||||||||||||||||||||||||||
Details of stock option transactions are as follows: | ||||||||||||||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||
Number | Weighted average | Number of | Weighted average | Number | Weighted average | |||||||||||||||||||||||||||||||||||
of shares | exercise price | shares | exercise price | of shares | exercise price | |||||||||||||||||||||||||||||||||||
per share | per share | per share | ||||||||||||||||||||||||||||||||||||||
Outstanding, beginning of year | 2,148,170 | $ | 2.56, | 2,186,511 | $ | 2.28 | 2,068,063 | $ | 2.24 | |||||||||||||||||||||||||||||||
Granted | 180,375 | 8.36 | 194,750 | 5.44 | 176,500 | 2.96 | ||||||||||||||||||||||||||||||||||
Exercised | (890,033 | ) | 1.8 | (191,585 | ) | 2.2 | (18,427 | ) | 1.72 | |||||||||||||||||||||||||||||||
Forfeited | (29,684 | ) | 4.88 | (40,751 | ) | 3.2 | (24,625 | ) | 2.76 | |||||||||||||||||||||||||||||||
Expired | (1,189 | ) | 1.44 | (755 | ) | 1.76 | (15,000 | ) | 3.2 | |||||||||||||||||||||||||||||||
Outstanding, end of year | 1,407,639 | $ | 3.8 | 2,148,170 | $ | 2.56 | 2,186,511 | $ | 2.28 | |||||||||||||||||||||||||||||||
Options exercisable, end of year | 1,045,475 | $ | 3.14 | 1,772,723 | $ | 2.28 | 1,760,604 | $ | 2.16 | |||||||||||||||||||||||||||||||
The stock options expire at various dates through 2020. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013, the exercise prices, weighted average remaining contractual life of outstanding options and intrinsic values were as follows: | ||||||||||||||||||||||||||||||||||||||||
Options outstanding | Options exercisable | |||||||||||||||||||||||||||||||||||||||
Exercise price | Number | Weighted average | Weighted average | Aggregate | Number | Weighted average | Aggregate | |||||||||||||||||||||||||||||||||
outstanding | exercise price | remaining | intrinsic | exercisable | exercise | intrinsic | ||||||||||||||||||||||||||||||||||
per share | contractual | value | price | value | ||||||||||||||||||||||||||||||||||||
life (years) | per share | |||||||||||||||||||||||||||||||||||||||
$ | 1.52 | - | $ | 2.4 | 335,029 | $ | 2.32 | 0.9 | $ | 3,911,669 | 335,029 | $ | 2.32 | $ | 3,911,669 | |||||||||||||||||||||||||
$ | 2.48 | - | $ | 2.8 | 379,135 | $ | 2.75 | 3 | 4,264,512 | 302,472 | $ | 2.74 | 3,405,886 | |||||||||||||||||||||||||||
$ | 2.92 | - | $ | 3.76 | 339,041 | $ | 3.21 | 2 | 3,658,099 | 288,867 | $ | 3.26 | 3,102,171 | |||||||||||||||||||||||||||
$ | 4.2 | - | $ | 10.16 | 354,434 | $ | 6.86 | 5.5 | 2,530,230 | 119,107 | $ | 6.13 | 937,590 | |||||||||||||||||||||||||||
1,407,639 | $ | 3.8 | $ | 14,364,510 | 1,045,475 | $ | 3.14 | $ | 11,357,316 | |||||||||||||||||||||||||||||||
Total unrecognized compensation cost relating to unvested stock options at December 31, 2013, prior to the consideration of expected forfeitures, is approximately $0.9 million and is expected to be recognized over a weighted average period of 2.9 years. | ||||||||||||||||||||||||||||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $1.1 million, $296,000 and $25,000, respectively. Cash received from the exercise of stock options during the years ended December 31, 2013, 2012 and 2011 was $1.5 million, $0.4 million and $31,346 respectively. | ||||||||||||||||||||||||||||||||||||||||
The Company recorded stock-based compensation amounting to $0.4 million, $0.4 million and $0.3 million for the years ended December 31, 2013, 2012 and 2010 respectively. |
Note_10_Income_Taxes
Note 10 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
10. Income taxes: | |||||||||||||
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 34% to income before provision for income taxes as a result of the following: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income for the year before provision for income taxes | $ | 5,799,803 | $ | 6,428,298 | $ | 3,450,610 | |||||||
Computed expected tax expense | $ | 1,971,933 | $ | 2,185,621 | $ | 1,173,207 | |||||||
Increase (reduction) in income tax expense resulting from: | |||||||||||||
State income taxes | 14,500 | 16,071 | 8,627 | ||||||||||
Permanent differences, including foreign exchange | 13,700 | 21,728 | 13,700 | ||||||||||
Investment tax credits recovered | (115,455 | ) | (106,941 | ) | (41,833 | ) | |||||||
Other, including alternative minimum tax and adjustments to opening deferred tax assets | (265,339 | ) | (112,323 | ) | (218,252 | ) | |||||||
Change in beginning of the year balance of the valuation allowance allocated to income tax expense | — | — | (3,655,070 | ) | |||||||||
Provision for (recovery of) income taxes | $ | 1,619,339 | $ | 2,004,156 | $ | (2,719,621 | ) | ||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2013 and 2012 are presented below: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 5,300,868 | $ | 5,429,220 | |||||||||
Losses | 290,714 | — | |||||||||||
Foreign tax credit | 1,914,090 | — | |||||||||||
Amortization | 69,169 | 541,242 | |||||||||||
Accruals, including foreign exchange and other | (1,123,278 | ) | — | ||||||||||
Total gross deferred tax assets | 6,451,563 | 5,970,462 | |||||||||||
Less valuation allowance | — | — | |||||||||||
Net deferred tax assets | $ | 6,451,563 | $ | 5,970,462 | |||||||||
Deferred income tax asset, current portion | 1,081,526 | — | |||||||||||
Deferred income tax asset, long-term portion | 5,370,037 | 5,970,462 | |||||||||||
$ | 6,451,563 | $ | 5,970,462 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Accruals, including foreign exchange and other | $ | — | $ | (914,429 | ) | ||||||||
Limited life intangible assets | (301,500 | ) | (394,100 | ) | |||||||||
Indefinite life intangible assets | (4,840,000 | ) | (4,840,000 | ) | |||||||||
Total deferred tax liabilities | (5,141,500 | ) | (6,148,529 | ) | |||||||||
Less deferred tax liability, current portion | — | (914,429 | ) | ||||||||||
Deferred tax liability, long-term portion | $ | (5,141,500 | ) | $ | (5,234,100 | ) | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. Management considers projected future taxable income, uncertainties related to the industry in which the Company operates, and tax planning strategies in making this assessment. During the fourth quarter of 2011 management released its remaining valuation allowance of $3.6 million. | |||||||||||||
The Company had approximately $0.1 million of total gross unrecognized tax benefit as of December 31, 2013 and $0.4 million of total gross unrecognized tax benefit as of December 31, 2012, which if recognized would favorably affect its income tax rate in future periods. The unrecognized tax benefit relates primarily to prior year Pennsylvania state franchise taxes and other insignificant U.S. state taxes. | |||||||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The Company did not have any significant interest and penalties accrued as of December 31, 2012 and December 31, 2013. | |||||||||||||
Tucows believes that it is reasonably possible that $0.1 million of the unrecognized tax benefit will decrease in the next twelve months as it is anticipated that the foreign tax authorities will finalize their review of prior years’ taxes owing in Pennsylvania within that period. | |||||||||||||
The following is a reconciliation of Tucows’ change in uncertain tax position under ASC 740, “Income Taxes”: | |||||||||||||
Total Gross | |||||||||||||
Unrecognized | |||||||||||||
Tax Benefits | |||||||||||||
Balance as at December 31, 2012 | $ | 382,000 | |||||||||||
Decrease in uncertain tax benefits of prior years | (265,000 | ) | |||||||||||
Balance as at December 31, 2013 | $ | 117,000 | |||||||||||
Note_11_Other_Income_Net
Note 11 - Other Income, Net | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Other Nonoperating Income and Expense [Text Block] | ' |
11. Other income, net: | |
In 2002, various patents which were acquired by us in the merger with Infonautics in 2001 were assigned to an unrelated third party. In connection with the assignment of these patents, we retained the right to a share of any cash flow received by the unrelated third party relating to the commercialization of these patents. As a result of this assignment, during the year ended December 31, 2011 we received an amount of $0.4 million. No amount was received during the years ended December 31, 2013 and 2012. | |
In March 2012, we received an amount of $0.5 million on the sale of certain intangible assets with no book value. |
Note_12_Earnings_Per_Common_Sh
Note 12 - Earnings Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
12. Earnings per common share: | |||||||||||||
The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator for basic and diluted earnings per common share: | |||||||||||||
Net income for the year | $ | 4,180,464 | $ | 4,424,142 | $ | 6,170,231 | |||||||
Denominator for basic and diluted earnings per common share: | |||||||||||||
Basic weighted average number of common shares outstanding | 10,468,250 | 11,458,216 | 13,363,669 | ||||||||||
Effect of stock options | 813,159 | 825,520 | 573,690 | ||||||||||
Diluted weighted average number of shares outstanding | 11,281,409 | 12,283,736 | 13,937,359 | ||||||||||
Basic earnings per common share | $ | 0.4 | $ | 0.39 | $ | 0.46 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.36 | $ | 0.44 | |||||||
Options to purchase 136,812 common shares were outstanding during 2013 (2012: 188,797; 2011: 787,188) but were not included in the computation of diluted income per common share because the options’ exercise price was greater than the average market price of the common shares. The options which expire in years 2018 to 2020 were still outstanding at the end of 2013. |
Note_13_Commitments_and_Contin
Note 13 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
13. Commitments and contingencies: | |||||
(a) The Company has several non-cancelable lease and purchase obligations primarily for general office facilities and equipment that expire over the next ten years. Future minimum payments under these agreements are as follows: | |||||
2014 | $ | 1,897,000 | |||
2015 | 1,518,000 | ||||
2016 | 991,000 | ||||
2017 | 919,000 | ||||
2018 | 494,000 | ||||
Thereafter | 987,000 | ||||
Rental expense under operating lease agreements was $0.8 million, $0.9 million and $0.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
(b) In the normal course of its operations, the Company becomes involved in various legal claims and lawsuits. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions outstanding or pending as of December 31, 2013 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Company’s financial position. |
Note_14_Fair_Value_Measurement
Note 14 - Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements, Valuation Techniques [Abstract] | ' | ||||||||||||||||
Fair Value Measurements, Valuation Techniques | ' | ||||||||||||||||
14. Fair value measurement: | |||||||||||||||||
For financial assets and liabilities recorded in our financial statements at fair value we utilize a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
The following table provides a summary of the fair values of the Company’s derivative instruments measured at fair value on a recurring basis as at December 31, 2013: | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument liability | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
Total Liabilities | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
The following table provides a summary of the fair values of the Company’s derivative instruments measured at fair value on a recurring basis as at December 31, 2012: | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument asset | $ | — | $ | 444,782 | $ | — | $ | 444,782 | |||||||||
Total Assets | $ | — | $ | 444,782 | $ | — | $ | 444,782 | |||||||||
Note_15_Subsequent_Events
Note 15 - Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
15. Subsequent event: | |
On March 4, 2014, the Company announced that its Board of Directors has approved a stock buyback program to repurchase from time to time up to $20 million of its common stock in the open market. Purchases will be made exclusively through the facilities of the NASDAQ Capital Market. The stock buyback program will commence immediately and will terminate on March 3, 2015. | |
All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury. |
Note_16_Segment_Reporting
Note 16 - Segment Reporting | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
16. Segment Reporting: | |||||||||||||||||
(a) We are organized and managed based on two segments, which are differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate. The two segments are Domain Services and Network Access Services and are described as follows: | |||||||||||||||||
1 | Domain Services – This segment includes wholesale and retail domain name registration services, value added services and portfolio services. The Company primarily earns revenues from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations; the sale of retail Internet domain name registration and email services to individuals and small businesses; and by making its portfolio of domain names available for sale or lease. Domain Services revenues are attributed to the country in which the contract originates, primarily Canada. | ||||||||||||||||
2 | Network Access Services - This segment derives revenue from the sale of retail mobile phones and services to individuals and small businesses through the Ting website. Revenues are generated in the United States. | ||||||||||||||||
The Chief Executive Officer is the chief operating decision maker and regularly reviews the operations and performance by segment. The chief operating decision maker reviews gross margin as a key measure of performance for each segment and to make decisions about the allocation of resources. Sales and marketing expenses, technical operations and development expenses, general and administrative expenses, depreciation of property and equipment, loss on disposition of property and equipment, amortization of intangibles, loss (gain) on currency forward contracts, other income (expense), and provision for income taxes, are organized along functional lines and are not included in the measurement of segment profitability. Total assets and total liabilities are centrally managed and are not reviewed at the segment level by the chief operating decision maker. The Company follows the same accounting policies for the segments as those described in note 2 to these consolidated financial statements. | |||||||||||||||||
Information by reportable segments, which is regularly reported to the chief operating decision maker is as follows: | |||||||||||||||||
Year Ended December 31, 2013 | Domain | Network Access Services | Consolidated Totals | ||||||||||||||
Name | |||||||||||||||||
Services | |||||||||||||||||
Net Revenues | $ | 113,404,668 | 16,530,236 | 129,934,904 | |||||||||||||
Cost of Revenues | 85,886,930 | 12,621,093 | 98,508,023 | ||||||||||||||
Gross Profit | 27,517,738 | 3,909,143 | 31,426,881 | ||||||||||||||
Expenses: | |||||||||||||||||
Sales and marketing | 12,141,036 | ||||||||||||||||
Technical operations and development | 4,158,603 | ||||||||||||||||
General and administrative | 7,204,895 | ||||||||||||||||
Depreciation of property and equipment | 215,447 | ||||||||||||||||
Amortization of intangibles | 876,120 | ||||||||||||||||
Loss on currency forward contracts | 676,120 | ||||||||||||||||
Income from operations | 6,154,660 | ||||||||||||||||
Other expenses, net | (354,857 | ) | |||||||||||||||
Income before provision for income taxes | 5,799,803 | ||||||||||||||||
Year Ended December 31, 2012 | Domain | Network Access Services | Consolidated Totals | ||||||||||||||
Name | |||||||||||||||||
Services | |||||||||||||||||
Net Revenues | $ | 110,761,217 | 3,965,684 | $ | 114,726,901 | ||||||||||||
Cost of Revenues | 84,388,714 | 4,129,019 | 88,517,733 | ||||||||||||||
Gross Profit | 26,372,503 | (163,335 | ) | 26,209,168 | |||||||||||||
Expenses: | |||||||||||||||||
Sales and marketing | 8,701,446 | ||||||||||||||||
Technical operations and development | 4,302,820 | ||||||||||||||||
General and administrative | 6,610,819 | ||||||||||||||||
Depreciation of property and equipment | 190,420 | ||||||||||||||||
Loss on disposition of property and equipment | 118,944 | ||||||||||||||||
Amortization of intangibles | 876,120 | ||||||||||||||||
Gain on currency forward contracts | (682,851 | ) | |||||||||||||||
Income from operations | 6,091,450 | ||||||||||||||||
Other income, net | 336,848 | ||||||||||||||||
Income before provision for income taxes | $ | 6,428,298 | |||||||||||||||
The net revenues and cost of revenues for Network Access Services for fiscal 2011 are not material as TING was newly formed in fiscal 2011. | |||||||||||||||||
(b) The following is a summary of the Company’s revenue earned from each significant revenue stream: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Wholesale | |||||||||||||||||
Domain Services | $ | 87,294,173 | $ | 87,434,450 | $ | 76,201,058 | |||||||||||
Value Added Services | 10,271,219 | 10,586,460 | 9,268,460 | ||||||||||||||
Total Wholesale | 97,565,392 | 98,020,910 | 85,469,518 | ||||||||||||||
Retail | 24,890,272 | 10,740,844 | 5,263,118 | ||||||||||||||
Portfolio | 7,479,240 | 5,965,147 | 6,332,331 | ||||||||||||||
$ | 129,934,904 | $ | 114,726,901 | $ | 97,064,967 | ||||||||||||
During the years ended December 31, 2013, 2012 and 2011, no customer accounted for more than 10% of total revenue. As at December 31, 2013 and 2012, no customers accounted for more than 10% of accounts receivable, as at December 31, 2011, one customer accounted for 16% of accounts receivable. | |||||||||||||||||
(c) The following is a summary of the Company’s cost of revenues from each significant revenue stream: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Wholesale | |||||||||||||||||
Domain Services | $ | 73,468,824 | $ | 73,168,196 | $ | 63,491,433 | |||||||||||
Value Added Services | 2,115,167 | 2,032,328 | 1,969,374 | ||||||||||||||
Total Wholesale | 75,583,991 | 75,200,524 | 65,460,807 | ||||||||||||||
Retail | 16,142,116 | 6,804,863 | 1,881,063 | ||||||||||||||
Portfolio | 1,234,214 | 832,008 | 746,517 | ||||||||||||||
Network, other costs | 4,835,939 | 4,925,058 | 4,837,650 | ||||||||||||||
Network, depreciation and amortization costs | 711,763 | 755,280 | 836,045 | ||||||||||||||
$ | 98,508,023 | $ | 88,517,733 | $ | 73,762,082 | ||||||||||||
(d) The following is a summary of the Company’s property and equipment by geographic region: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Canada | $ | 1,292,425 | $ | 1,026,570 | |||||||||||||
United States | 453,223 | 306,679 | |||||||||||||||
Germany | 12,188 | 18,895 | |||||||||||||||
$ | 1,757,836 | $ | 1,352,144 | ||||||||||||||
(e) The following is a summary of the Company’s amortizable intangible assets by geographic region: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Canada | $ | 271,300 | $ | 1,062,100 | |||||||||||||
Germany | 1,061,050 | 1,230,160 | |||||||||||||||
$ | 1,332,350 | $ | 2,292,260 | ||||||||||||||
(f) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Canada | $ | 6,451,563 | $ | 5,970,462 | |||||||||||||
$ | 6,451,563 | $ | 5,970,462 | ||||||||||||||
(g) Valuation and qualifying accounts: | |||||||||||||||||
Balance at | Charged to | Write-offs | Balance at | ||||||||||||||
beginning year | (recovered) | during year | end of year | ||||||||||||||
costs and | |||||||||||||||||
expenses | |||||||||||||||||
Allowance for doubtful accounts, including provision for credit notes | |||||||||||||||||
2013 | $ | 78,970 | $ | 17,256 | $ | — | $ | 96,226 | |||||||||
2012 | $ | 62,415 | $ | 16,555 | $ | — | $ | 78,970 | |||||||||
2011 | $ | 65,000 | $ | (2,585 | ) | $ | — | $ | 62,415 | ||||||||
Valuation allowance for deferred tax asset: | |||||||||||||||||
2013 | $ | — | $ | — | $ | — | $ | — | |||||||||
2012 | $ | — | $ | — | $ | — | $ | — | |||||||||
2011 | $ | 3,655,070 | $ | (3,655,070 | ) | $ | — | $ | — | ||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ||||
Basis of presentation | |||||
These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. | |||||
Investments over which the Company is unable to exercise significant influence, are recorded at cost and written down only when there is evidence that a decline in value that is other than temporary has occurred. | |||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||
Use of estimates | |||||
The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for or carrying values of revenues, bad debts, goodwill and intangible assets which require estimates of future cash flows and discount rates, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. | |||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||
Cash and cash equivalents | |||||
All highly liquid investments, with an original term to maturity of three months or less are classified as cash and cash equivalents. | |||||
Inventory, Policy [Policy Text Block] | ' | ||||
Inventory | |||||
Inventory primarily consists of mobile devices and other accessories, and is stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device or accessory shipped. | |||||
The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may be required to write down the value of inventory. | |||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||
Property and equipment | |||||
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: | |||||
Asset | Rate | ||||
Computer equipment | 30 | % | |||
Computer software | 100 | % | |||
Furniture and equipment | 20 | % | |||
Leasehold improvements | Over term of lease | ||||
The Company reviews the carrying values of its property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated undiscounted future cash flows expected to result from the use of the group of assets and its eventual disposition is less than its carrying amount, it is considered to be impaired. The amount of the impairment loss recognized is measured as the amount by which the carrying value of the asset exceeds the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the assets. | |||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||
Goodwill and Intangible assets | |||||
Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. Finite life intangible assets, related to the acquisition of EPAG Domainservices GMBH (“EPAG”) in August 2011, are being amortized on a straight-line basis over periods of two to seven years, and consist of technology, brand and customer relationships. Finite life intangible assets, related to the acquisition of Innerwise, Inc. in July 2007, are being amortized on a straight-line basis over periods of five to seven years, and consist of brand and customer relationships. Indefinite life intangible assets, acquired in the acquisition of Mailbank.com Inc. in June 2006, consist of surname domain names and direct navigation domain names. | |||||
The Company does not amortize goodwill and indefinite life intangibles, but tests for impairment annually or more frequently if circumstances indicate potential impairment, through a comparison of fair value to its carrying amount. The Company reviews goodwill at least annually for possible impairment in the fourth quarter of each year. | |||||
Goodwill is tested for impairment as part of a two-step process. The first step uses a market approach that is based on the publicly traded common shares of the Company to estimate fair value. If the carrying value is less than the fair value, no impairment exists and the second step need not be performed. If the carrying value is greater than the fair value then the second step will be performed. In the second step, the impairment is computed by comparing the implied fair value of the Company’s goodwill with the carrying amount of that goodwill. | |||||
For the second step the Company uses a discounted cash flow or income approach in which future expected cash flows are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. | |||||
Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. At December 31, 2013, the Company had goodwill of $18.9 million. The Company completed its latest annual impairment test and fair value analysis for goodwill, and there were no impairments present and no impairment charge was recorded during the years ended December 31, 2013, 2012 and 2011. | |||||
The Company has other finite life intangible assets consisting of patented and non-patented technologies. These intangible assets are amortized over their expected economic lives. The lives are determined based upon the expected use of the asset, the stability of the industry, expected changes in and replacement value of distribution networks and other factors deemed appropriate. | |||||
The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its definite- lived intangible assets may warrant revision or that the remaining balance of such assets may not be recoverable. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. There was no impairment recorded on definite-life intangible assets and other long-lived assets during 2013 and 2012. | |||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||
Revenue recognition | |||||
The Company’s revenues are derived from domain name registration fees on both a wholesale and retail basis, the sale of domain names, the provisioning of other Internet services and advertising and other revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. | |||||
The Company earns registration fees in connection with each new, renewed and transferred-in registration and from providing provisioning of other Internet services to resellers and registrars on a monthly basis. Service has been provided in connection with registration fees once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards. | |||||
Domain names are generally purchased for terms of one to ten years. Registration fees charged for domain name registration and provisioning services are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned for annual periods or longer, are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned on a monthly basis are recognized as services are provided. | |||||
For arrangements with multiple deliverables, the Company allocates revenue to each deliverable if the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The fair value of the selling price for a deliverable is determined using a hierarchy of (1) Company specific objective and reliable evidence, then (2) third-party evidence, then (3) best estimate of selling price. The Company allocates any arrangement fee to each of the elements based on their relative selling prices. | |||||
Revenue generated from the sale of domain names, earned from transferring the rights to domain names under the Company’s control, are recognized once the rights have been transferred and payment has been received in full. | |||||
The Company derives revenues from the provisioning of mobile phone services through its Ting website. These revenues are recognized once services have been provided. Revenues for wireless services are billed based on the actual amount of monthly services utilized by each customer during their billing cycle on a postpaid basis. The Company’s billing cycle for each customer is computed based on the customer’s activation date. As a result, the Company estimates the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting period. In addition, revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. | |||||
The Company also generates advertising and other revenue through its online libraries of shareware, freeware and online services presented on its website. Advertising and other revenues are recognized ratably over the period in which it is presented. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impressions are achieved. | |||||
In those cases where payment is not received at the time of sale, additional conditions for recognition of revenue are that the collection of the related accounts receivable is reasonably assured and the Company has no further performance obligations. The Company records costs that reflect expected refunds, rebates and credit card charge-backs as a reduction of revenues at the time of the sale based on historical experiences and current expectations. | |||||
The Company establishes provisions for possible uncollectible accounts receivable and other contingent liabilities which may arise in the normal course of business. Historically, credit losses have been within the Company’s expectations and the provisions the Company has established have been appropriate. However, the Company has, on occasion, experienced issues which have led to accounts receivable not being fully collected. Should these issues occur more frequently, additional provisions may be required. | |||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | ' | ||||
Deferred revenue | |||||
Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other Internet services, on both a wholesale and retail basis, net of external commissions. Revenue received in advance of the provision of services from our software libraries advertising is deferred and recognized in the month that the services are provided. | |||||
Accreditation Fees Payable [Policy Text Block] | ' | ||||
Accreditation fees payable | |||||
In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. | |||||
Prepaid Domain Name Registry Fees [Policy Text Block] | ' | ||||
Prepaid domain name registry fees | |||||
Prepaid domain name registry and other Internet services fees represent amounts paid to registries, and country code domain name operators for updating and maintaining the registries, as well as to suppliers of other Internet services. Domain name registry and other Internet services fees are recognized on a straight-line basis over the life of the contracted registration term. | |||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||||
Translation of foreign currency transactions | |||||
The Company’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the average rate for the year. A foreign exchange gain amounting to $0.3 million has been recorded in general and administrative expenses during the year ended December 31, 2013 (“Fiscal 2013”). A foreign exchange gain amounting to $8,000 has been recorded in general and administrative expenses during the year ended December 31, 2012 (“Fiscal 2012”). A foreign exchange loss amounting to $0.1 million has been recorded in general and administrative expenses during the year ended December 31, 2011 (“Fiscal 2011”). | |||||
Derivatives, Policy [Policy Text Block] | ' | ||||
Derivative Financial Instruments | |||||
During Fiscal 2103 and Fiscal 2012, we used derivative financial instruments to manage foreign currency exchange risk. We account for these instruments in accordance with ASC Topic 815, “Derivatives and Hedging” (Topic 815), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Topic 815 also requires that changes in our derivative financial instruments’ fair values be recognized in earnings, unless specific hedge accounting and documentation criteria are met (i.e. the instruments are accounted for as hedges). We recorded the effective portions of the gain or loss on derivative financial instruments that were designated as cash flow hedges in accumulated other comprehensive income in our accompanying Consolidated Balance Sheets. Any ineffective or excluded portion of a designated cash flow hedge, if applicable, is recognized in net income. | |||||
For certain contracts, the Company has not complied with the documentation standards required for its forward foreign exchange contracts to be accounted for as hedges and has, therefore, accounted for such forward foreign exchange contracts at their fair values with the changes in fair value recorded in net income. | |||||
The fair value of the forward exchange contracts are determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company and the counterparty credit risk. | |||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | ||||
Product development costs | |||||
Product development costs are expensed as incurred. The Company accounts for the costs of computer software developed or obtained for internal use as follows: costs that are incurred in the preliminary stage of software development are expensed as incurred. Costs incurred during the application and development stage are capitalized and generally include external direct costs of materials and services consumed in the development and payroll and payroll- related costs for employees who are directly associated with the development project. Costs incurred in the post implementation and operation stage are expensed as incurred. During the years ended December 31, 2013, 2012 and 2011, the Company did not capitalize any amounts of such costs relating to the development of internal use software. The capitalized costs of computer software developed for internal use are amortized on a straight-line basis over one year from the date the software is put into use. | |||||
Income Tax, Policy [Policy Text Block] | ' | ||||
Income taxes | |||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not “more likely than not” that some portion of or all of a deferred tax asset will be realized. | |||||
The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The liability for unrecognized tax benefits is classified as non-current unless the liability is expected to be settled in cash within 12 months of the reporting date. | |||||
The Company is entitled to earn investment tax credits (“ITCs”), which are credits related to specific qualifying expenditures as prescribed by Canadian Income Tax legislation. These ITCs relate primarily to research and development expenses. The ITCs are recognized as a reduction in income tax expense once the Company has reasonable assurance that the amounts will be realized. | |||||
Compensation Related Costs, Policy [Policy Text Block] | ' | ||||
Stock-based compensation | |||||
Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As stock-based compensation expense recognized in net income for 2013 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. | |||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||
Earnings per common share | |||||
Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. | |||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||
Concentration of credit risk | |||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable and forward foreign exchange contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three months or less from the date of purchase. With respect to accounts receivable, the Company performs periodic credit evaluations of the financial condition of its customers and typically does not require collateral from them. The counterparty to any forward foreign exchange contracts is a major commercial bank which management believes does not represent a significant credit risk. Management assesses the need for allowances for potential credit losses by considering the credit risk of specific customers, historical trends and other information. No customer accounted for more than 10% of revenue in 2013, 2012 or 2011. No customers accounted for 10% of accounts receivable at December 31, 2013, no customer accounted for 10% of accounts receivable at December 31, 2012, and one customer accounted for 16% of accounts receivable at December 31, 2011. All of these accounts receivable have subsequently been collected. | |||||
Fair Value Measurement, Policy [Policy Text Block] | ' | ||||
Fair values of financial assets and financial liabilities | |||||
The fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 measurements) approximate their carrying values due to the relatively short periods to maturity of the instruments. | |||||
The fair value of the forward exchange contracts are determined using an estimated credit-adjusted mark-to-market valuation (a level 2 measurement) which takes into consideration the Company and the counterparty credit risk. | |||||
Segment Reporting, Policy [Policy Text Block] | ' | ||||
Segment reporting | |||||
The Company operates in two business segments, Domain Services and Network Access Services. | |||||
The Company’s revenues are attributed to the country in which the contract originates, primarily Canada. Revenues from domain names issued from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. | |||||
The Company’s assets are located in Canada, the United States, Germany and the Netherlands. All of the Company’s goodwill and intangible assets are allocated to the Domain Services business segment. | |||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | ' | ||||
Recent Accounting Pronouncements Adopted | |||||
Testing Indefinite-Lived Intangible Assets for Impairment | |||||
On January 1, 2013, the Company adopted Accounting Standards Update No. 2012-02, Intangibles —Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (“ASU 2012-02”) which allows entities to use a qualitative approach to test indefinite-lived intangible assets for impairment. ASU 2012-02 allows an entity to first perform a qualitative assessment to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that this is the case, it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. The adoption of ASU 2012-02 did not materially impact the carrying value of our recorded indefinite-lived intangible assets. The Company performed its annual indefinite-lived intangible asset impairment test on December 31, 2013 using the market approach as described in Note 2(f). | |||||
Reclassification Out of Accumulated Other Comprehensive Income | |||||
The Company adopted Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): “Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income.” (“ASU 2013-02”), effective January 1, 2013. ASU 2013-02 was applied prospectively, which requires expanded disclosures for amounts reclassified out of accumulated other comprehensive income by component. The guidance requires the presentation of amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, a cross-reference to other disclosures that provide additional detail about those amounts is required. The adoption of ASU 2013-02 did not materially impact the Company’s consolidated financial statements. | |||||
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' | ||||
Recent Accounting Pronouncements Not Yet Adopted | |||||
On July 18, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11, which is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. We are currently evaluating the impact of our pending adoption of ASU 2013-11 on our Consolidated Financial Statements. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Schedule of Depreciation Rates [Table Text Block] | ' | ||||
Asset | Rate | ||||
Computer equipment | 30 | % | |||
Computer software | 100 | % | |||
Furniture and equipment | 20 | % | |||
Leasehold improvements | Over term of lease |
Note_3_Business_Acquisitions_T
Note 3 - Business Acquisitions (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||
Boardtown | Hosted | Innerwise | Mailbank.com | EPAG | Total | ||||||||||||||||||||
Corporation | Messaging | Inc. | Inc. | Domainservices | |||||||||||||||||||||
Assets of | GmbH | ||||||||||||||||||||||||
Critical Path | |||||||||||||||||||||||||
Balances, December 31, 2011 | $ | 2,044,847 | $ | 4,072,297 | $ | 5,801,040 | $ | 6,072,623 | $ | 882,320 | $ | 18,873,127 | |||||||||||||
Balances, December 31, 2012 | $ | 2,044,847 | $ | 4,072,297 | $ | 5,801,040 | $ | 6,072,623 | $ | 882,320 | $ | 18,873,127 | |||||||||||||
Balances, December 31, 2013 | $ | 2,044,847 | $ | 4,072,297 | $ | 5,801,040 | $ | 6,072,623 | $ | 882,320 | $ | 18,873,127 |
Note_4_Derivative_Instrument_A1
Note 4 - Derivative Instrument Assets/Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | ||||||||||||||||||||
Derivatives | Balance Sheet | Year ended | Year ended | ||||||||||||||||||
Location | December 31, | December 31, | |||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Asset | Asset | ||||||||||||||||||||
(Liability) | (Liability) | ||||||||||||||||||||
Foreign currency forward contracts designated as cash flow hedges | Derivative instruments | $ | (118,505 | ) | $ | 377,703 | |||||||||||||||
Foreign currency forward contracts not designated as cash flow hedges | Derivative instruments | $ | (372,593 | ) | $ | 67,079 | |||||||||||||||
Total foreign currency forward contracts | Derivative instruments | $ | (491,098 | ) | $ | 444,782 | |||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | ||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||
Hedging Relationship | |||||||||||||||||||||
Operating expenses | (318,605 | ) | |||||||||||||||||||
Foreign currency forward contracts – year ended December 31, 2013 | $ | (289,085 | ) | Cost of revenues | (406 | ) | — | — | |||||||||||||
Foreign currency forward contracts – year ended December 31, 2012 | $ | 44,104 | — | — | — | — |
Note_5_Property_and_Equipment_
Note 5 - Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Computer equipment | $ | 6,937,495 | $ | 6,529,764 | |||||||||
Computer software | 1,175,664 | 1,157,609 | |||||||||||
Furniture and equipment | 711,346 | 542,213 | |||||||||||
8,824,505 | 8,229,586 | ||||||||||||
Less: | |||||||||||||
Accumulated depreciation | 7,066,669 | 6,877,442 | |||||||||||
$ | 1,757,836 | $ | 1,352,144 | ||||||||||
Schedule of Depreciation [Table Text Block] | ' | ||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation of property and equipment | $ | 843,420 | $ | 802,060 | $ | 937,460 |
Note_6_Intangible_Assets_Table
Note 6 - Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Acquired Intangible Assets By Major Class [Table Text Block] | ' | ||||||||||||||||||||||||
Technology | Brand | Customer | Surname | Direct | |||||||||||||||||||||
relationships | domain names | navigation | |||||||||||||||||||||||
domain names | |||||||||||||||||||||||||
Amortization period | 7-Feb | 7 | 7-Apr | indefinite life | indefinite life | Total | |||||||||||||||||||
years | years | years | |||||||||||||||||||||||
Balances, December 31, 2011 | $ | 227,430 | $ | 571,930 | $ | 2,512,660 | $ | 12,120,077 | $ | 2,050,493 | $ | 17,482,590 | |||||||||||||
Additions to/(disposals from) domain portfolio, net | — | — | — | (10,060 | ) | (37,119 | ) | (47,179 | ) | ||||||||||||||||
Amortization expense | (143,640 | ) | (173,640 | ) | (702,480 | ) | — | — | (1,019,760 | ) | |||||||||||||||
Balances, December 31, 2012 | 83,790 | 398,290 | 1,810,180 | 12,110,017 | 2,013,374 | 16,415,651 | |||||||||||||||||||
Additions to/(disposals from) domain portfolio, net | — | — | — | (13,305 | ) | (39,208 | ) | (52,513 | ) | ||||||||||||||||
Amortization expense | (83,790 | ) | (173,640 | ) | (702,480 | ) | — | — | (959,910 | ) | |||||||||||||||
Balances, December 31, 2013 | $ | — | $ | 224,650 | $ | 1,107,700 | $ | 12,096,712 | $ | 1,974,166 | $ | 15,403,228 | |||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||||||
Year ending | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | $ | 596,620 | |||||||||||||||||||||||
2015 | 205,320 | ||||||||||||||||||||||||
2016 | 205,320 | ||||||||||||||||||||||||
2017 | 205,320 | ||||||||||||||||||||||||
2018 | 119,770 | ||||||||||||||||||||||||
Total | $ | 1,332,350 |
Note_7_Loan_Payable_Tables
Note 7 - Loan Payable (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||
2014 | 2,300,000 | ||||
2015 | 1,400,000 | ||||
2016 | 1,300,000 | ||||
2017 | 1,300,000 |
Note_9_Stock_Option_Plans_Tabl
Note 9 - Stock Option Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Volatility | 69.4 | % | 52.1 | % | 73.7 | % | ||||||||||||||||||||||||||||||||||
Risk-free interest rate | 1.1 | % | 0.5 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||
Expected life (in years) | 4 | 4 | 4 | |||||||||||||||||||||||||||||||||||||
Dividend yield | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||||
The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant | $ | 4.52 | $ | 2.24 | $ | 1.52 | ||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | ||||||||||||||||||||||||||||||||||||||
Number | Weighted average | Number of | Weighted average | Number | Weighted average | |||||||||||||||||||||||||||||||||||
of shares | exercise price | shares | exercise price | of shares | exercise price | |||||||||||||||||||||||||||||||||||
per share | per share | per share | ||||||||||||||||||||||||||||||||||||||
Outstanding, beginning of year | 2,148,170 | $ | 2.56, | 2,186,511 | $ | 2.28 | 2,068,063 | $ | 2.24 | |||||||||||||||||||||||||||||||
Granted | 180,375 | 8.36 | 194,750 | 5.44 | 176,500 | 2.96 | ||||||||||||||||||||||||||||||||||
Exercised | (890,033 | ) | 1.8 | (191,585 | ) | 2.2 | (18,427 | ) | 1.72 | |||||||||||||||||||||||||||||||
Forfeited | (29,684 | ) | 4.88 | (40,751 | ) | 3.2 | (24,625 | ) | 2.76 | |||||||||||||||||||||||||||||||
Expired | (1,189 | ) | 1.44 | (755 | ) | 1.76 | (15,000 | ) | 3.2 | |||||||||||||||||||||||||||||||
Outstanding, end of year | 1,407,639 | $ | 3.8 | 2,148,170 | $ | 2.56 | 2,186,511 | $ | 2.28 | |||||||||||||||||||||||||||||||
Options exercisable, end of year | 1,045,475 | $ | 3.14 | 1,772,723 | $ | 2.28 | 1,760,604 | $ | 2.16 | |||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
Options outstanding | Options exercisable | |||||||||||||||||||||||||||||||||||||||
Exercise price | Number | Weighted average | Weighted average | Aggregate | Number | Weighted average | Aggregate | |||||||||||||||||||||||||||||||||
outstanding | exercise price | remaining | intrinsic | exercisable | exercise | intrinsic | ||||||||||||||||||||||||||||||||||
per share | contractual | value | price | value | ||||||||||||||||||||||||||||||||||||
life (years) | per share | |||||||||||||||||||||||||||||||||||||||
$ | 1.52 | - | $ | 2.4 | 335,029 | $ | 2.32 | 0.9 | $ | 3,911,669 | 335,029 | $ | 2.32 | $ | 3,911,669 | |||||||||||||||||||||||||
$ | 2.48 | - | $ | 2.8 | 379,135 | $ | 2.75 | 3 | 4,264,512 | 302,472 | $ | 2.74 | 3,405,886 | |||||||||||||||||||||||||||
$ | 2.92 | - | $ | 3.76 | 339,041 | $ | 3.21 | 2 | 3,658,099 | 288,867 | $ | 3.26 | 3,102,171 | |||||||||||||||||||||||||||
$ | 4.2 | - | $ | 10.16 | 354,434 | $ | 6.86 | 5.5 | 2,530,230 | 119,107 | $ | 6.13 | 937,590 | |||||||||||||||||||||||||||
1,407,639 | $ | 3.8 | $ | 14,364,510 | 1,045,475 | $ | 3.14 | $ | 11,357,316 |
Note_10_Income_Taxes_Tables
Note 10 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Income for the year before provision for income taxes | $ | 5,799,803 | $ | 6,428,298 | $ | 3,450,610 | |||||||
Computed expected tax expense | $ | 1,971,933 | $ | 2,185,621 | $ | 1,173,207 | |||||||
Increase (reduction) in income tax expense resulting from: | |||||||||||||
State income taxes | 14,500 | 16,071 | 8,627 | ||||||||||
Permanent differences, including foreign exchange | 13,700 | 21,728 | 13,700 | ||||||||||
Investment tax credits recovered | (115,455 | ) | (106,941 | ) | (41,833 | ) | |||||||
Other, including alternative minimum tax and adjustments to opening deferred tax assets | (265,339 | ) | (112,323 | ) | (218,252 | ) | |||||||
Change in beginning of the year balance of the valuation allowance allocated to income tax expense | — | — | (3,655,070 | ) | |||||||||
Provision for (recovery of) income taxes | $ | 1,619,339 | $ | 2,004,156 | $ | (2,719,621 | ) | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 5,300,868 | $ | 5,429,220 | |||||||||
Losses | 290,714 | — | |||||||||||
Foreign tax credit | 1,914,090 | — | |||||||||||
Amortization | 69,169 | 541,242 | |||||||||||
Accruals, including foreign exchange and other | (1,123,278 | ) | — | ||||||||||
Total gross deferred tax assets | 6,451,563 | 5,970,462 | |||||||||||
Less valuation allowance | — | — | |||||||||||
Net deferred tax assets | $ | 6,451,563 | $ | 5,970,462 | |||||||||
Deferred income tax asset, current portion | 1,081,526 | — | |||||||||||
Deferred income tax asset, long-term portion | 5,370,037 | 5,970,462 | |||||||||||
$ | 6,451,563 | $ | 5,970,462 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Accruals, including foreign exchange and other | $ | — | $ | (914,429 | ) | ||||||||
Limited life intangible assets | (301,500 | ) | (394,100 | ) | |||||||||
Indefinite life intangible assets | (4,840,000 | ) | (4,840,000 | ) | |||||||||
Total deferred tax liabilities | (5,141,500 | ) | (6,148,529 | ) | |||||||||
Less deferred tax liability, current portion | — | (914,429 | ) | ||||||||||
Deferred tax liability, long-term portion | $ | (5,141,500 | ) | $ | (5,234,100 | ) | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | ||||||||||||
Total Gross | |||||||||||||
Unrecognized | |||||||||||||
Tax Benefits | |||||||||||||
Balance as at December 31, 2012 | $ | 382,000 | |||||||||||
Decrease in uncertain tax benefits of prior years | (265,000 | ) | |||||||||||
Balance as at December 31, 2013 | $ | 117,000 |
Note_12_Earnings_Per_Common_Sh1
Note 12 - Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator for basic and diluted earnings per common share: | |||||||||||||
Net income for the year | $ | 4,180,464 | $ | 4,424,142 | $ | 6,170,231 | |||||||
Denominator for basic and diluted earnings per common share: | |||||||||||||
Basic weighted average number of common shares outstanding | 10,468,250 | 11,458,216 | 13,363,669 | ||||||||||
Effect of stock options | 813,159 | 825,520 | 573,690 | ||||||||||
Diluted weighted average number of shares outstanding | 11,281,409 | 12,283,736 | 13,937,359 | ||||||||||
Basic earnings per common share | $ | 0.4 | $ | 0.39 | $ | 0.46 | |||||||
Diluted earnings per common share | $ | 0.37 | $ | 0.36 | $ | 0.44 |
Note_13_Commitments_and_Contin1
Note 13 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
2014 | $ | 1,897,000 | |||
2015 | 1,518,000 | ||||
2016 | 991,000 | ||||
2017 | 919,000 | ||||
2018 | 494,000 | ||||
Thereafter | 987,000 |
Note_14_Fair_Value_Measurement1
Note 14 - Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements, Valuation Techniques [Abstract] | ' | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | ||||||||||||||||
31-Dec-13 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument liability | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
Total Liabilities | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
31-Dec-12 | |||||||||||||||||
Fair Value Measurement Using | Assets at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument asset | $ | — | $ | 444,782 | $ | — | $ | 444,782 | |||||||||
Total Assets | $ | — | $ | 444,782 | $ | — | $ | 444,782 |
Note_16_Segment_Reporting_Tabl
Note 16 - Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||||||
Year Ended December 31, 2013 | Domain | Network Access Services | Consolidated Totals | ||||||||||||||
Name | |||||||||||||||||
Services | |||||||||||||||||
Net Revenues | $ | 113,404,668 | 16,530,236 | 129,934,904 | |||||||||||||
Cost of Revenues | 85,886,930 | 12,621,093 | 98,508,023 | ||||||||||||||
Gross Profit | 27,517,738 | 3,909,143 | 31,426,881 | ||||||||||||||
Expenses: | |||||||||||||||||
Sales and marketing | 12,141,036 | ||||||||||||||||
Technical operations and development | 4,158,603 | ||||||||||||||||
General and administrative | 7,204,895 | ||||||||||||||||
Depreciation of property and equipment | 215,447 | ||||||||||||||||
Amortization of intangibles | 876,120 | ||||||||||||||||
Loss on currency forward contracts | 676,120 | ||||||||||||||||
Income from operations | 6,154,660 | ||||||||||||||||
Other expenses, net | (354,857 | ) | |||||||||||||||
Income before provision for income taxes | 5,799,803 | ||||||||||||||||
Year Ended December 31, 2012 | Domain | Network Access Services | Consolidated Totals | ||||||||||||||
Name | |||||||||||||||||
Services | |||||||||||||||||
Net Revenues | $ | 110,761,217 | 3,965,684 | $ | 114,726,901 | ||||||||||||
Cost of Revenues | 84,388,714 | 4,129,019 | 88,517,733 | ||||||||||||||
Gross Profit | 26,372,503 | (163,335 | ) | 26,209,168 | |||||||||||||
Expenses: | |||||||||||||||||
Sales and marketing | 8,701,446 | ||||||||||||||||
Technical operations and development | 4,302,820 | ||||||||||||||||
General and administrative | 6,610,819 | ||||||||||||||||
Depreciation of property and equipment | 190,420 | ||||||||||||||||
Loss on disposition of property and equipment | 118,944 | ||||||||||||||||
Amortization of intangibles | 876,120 | ||||||||||||||||
Gain on currency forward contracts | (682,851 | ) | |||||||||||||||
Income from operations | 6,091,450 | ||||||||||||||||
Other income, net | 336,848 | ||||||||||||||||
Income before provision for income taxes | $ | 6,428,298 | |||||||||||||||
Schedule of Operating Income, by Revenue Stream [Table Text Block] | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Wholesale | |||||||||||||||||
Domain Services | $ | 87,294,173 | $ | 87,434,450 | $ | 76,201,058 | |||||||||||
Value Added Services | 10,271,219 | 10,586,460 | 9,268,460 | ||||||||||||||
Total Wholesale | 97,565,392 | 98,020,910 | 85,469,518 | ||||||||||||||
Retail | 24,890,272 | 10,740,844 | 5,263,118 | ||||||||||||||
Portfolio | 7,479,240 | 5,965,147 | 6,332,331 | ||||||||||||||
$ | 129,934,904 | $ | 114,726,901 | $ | 97,064,967 | ||||||||||||
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Wholesale | |||||||||||||||||
Domain Services | $ | 73,468,824 | $ | 73,168,196 | $ | 63,491,433 | |||||||||||
Value Added Services | 2,115,167 | 2,032,328 | 1,969,374 | ||||||||||||||
Total Wholesale | 75,583,991 | 75,200,524 | 65,460,807 | ||||||||||||||
Retail | 16,142,116 | 6,804,863 | 1,881,063 | ||||||||||||||
Portfolio | 1,234,214 | 832,008 | 746,517 | ||||||||||||||
Network, other costs | 4,835,939 | 4,925,058 | 4,837,650 | ||||||||||||||
Network, depreciation and amortization costs | 711,763 | 755,280 | 836,045 | ||||||||||||||
$ | 98,508,023 | $ | 88,517,733 | $ | 73,762,082 | ||||||||||||
Schedule Of Property, Plant, and Equipment By Geographic Region [TableText Block] | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Canada | $ | 1,292,425 | $ | 1,026,570 | |||||||||||||
United States | 453,223 | 306,679 | |||||||||||||||
Germany | 12,188 | 18,895 | |||||||||||||||
$ | 1,757,836 | $ | 1,352,144 | ||||||||||||||
Schedule Of Indefinite Lived Intangible Assets By Geographic Region [TableText Block] | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Canada | $ | 271,300 | $ | 1,062,100 | |||||||||||||
Germany | 1,061,050 | 1,230,160 | |||||||||||||||
$ | 1,332,350 | $ | 2,292,260 | ||||||||||||||
Schedule of Deferred Tax Asset, Net by Geographic Region [Table Text Block] | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Canada | $ | 6,451,563 | $ | 5,970,462 | |||||||||||||
$ | 6,451,563 | $ | 5,970,462 | ||||||||||||||
Summary of Valuation Allowance [Table Text Block] | ' | ||||||||||||||||
Balance at | Charged to | Write-offs | Balance at | ||||||||||||||
beginning year | (recovered) | during year | end of year | ||||||||||||||
costs and | |||||||||||||||||
expenses | |||||||||||||||||
Allowance for doubtful accounts, including provision for credit notes | |||||||||||||||||
2013 | $ | 78,970 | $ | 17,256 | $ | — | $ | 96,226 | |||||||||
2012 | $ | 62,415 | $ | 16,555 | $ | — | $ | 78,970 | |||||||||
2011 | $ | 65,000 | $ | (2,585 | ) | $ | — | $ | 62,415 | ||||||||
Valuation allowance for deferred tax asset: | |||||||||||||||||
2013 | $ | — | $ | — | $ | — | $ | — | |||||||||
2012 | $ | — | $ | — | $ | — | $ | — | |||||||||
2011 | $ | 3,655,070 | $ | (3,655,070 | ) | $ | — | $ | — |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Goodwill (in Dollars) | $18,873,127 | $18,873,127 | ' |
Foreign Currency Transaction Gain (Loss), before Tax (in Dollars) | $300,000 | $8,000 | $100,000 |
Income Tax Uncertainty Percentage | 50.00% | ' | ' |
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Number Of Customers | 0 | 0 | 0 |
Concentration Risk, Percentage | 10.00% | ' | ' |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Number Of Customers | 0 | 0 | 1 |
Concentration Risk, Percentage | 10.00% | ' | ' |
Domain Services [Member] | Minimum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year | ' | ' |
Domain Services [Member] | Maximum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' | ' |
Accounts Receivable [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | ' | 16.00% |
Minimum [Member] | EPAG Domain Services GMBH [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '2 years | ' | ' |
Minimum [Member] | Innerwise Acquisition [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '2 years | ' | ' |
Maximum [Member] | EPAG Domain Services GMBH [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years | ' | ' |
Maximum [Member] | Innerwise Acquisition [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years | ' | ' |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates: | 12 Months Ended |
Dec. 31, 2012 | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates: [Line Items] | ' |
Leasehold improvements | 'Over term of lease |
Computer Equipment [Member] | ' |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates: [Line Items] | ' |
Depreciation rate | 30.00% |
Computer Software, Intangible Asset [Member] | ' |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates: [Line Items] | ' |
Depreciation rate | 100.00% |
Furniture and Fixtures [Member] | ' |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates: [Line Items] | ' |
Depreciation rate | 20.00% |
Note_3_Business_Acquisitions_D
Note 3 - Business Acquisitions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 3 - Business Acquisitions (Details) [Line Items] | ' | ' |
Asset Impairment Charges | $0 | $0 |
Intangible Assets, Net (Excluding Goodwill) | $15,403,228 | $16,415,651 |
Minimum [Member] | ' | ' |
Note 3 - Business Acquisitions (Details) [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '2 years | ' |
Maximum [Member] | ' | ' |
Note 3 - Business Acquisitions (Details) [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years | ' |
Note_3_Business_Acquisitions_D1
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following [Line Items] | ' | ' | ' |
Balances, | $18,873,127 | $18,873,127 | $18,873,127 |
Boardtown Corporation [Member] | ' | ' | ' |
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following [Line Items] | ' | ' | ' |
Balances, | 2,044,847 | 2,044,847 | 2,044,847 |
Hosted Messaging Assets of Critical Path [Member] | ' | ' | ' |
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following [Line Items] | ' | ' | ' |
Balances, | 4,072,297 | 4,072,297 | 4,072,297 |
Innerwise Inc. [Member] | ' | ' | ' |
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following [Line Items] | ' | ' | ' |
Balances, | 5,801,040 | 5,801,040 | 5,801,040 |
Mailbank.com Inc. [Member] | ' | ' | ' |
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following [Line Items] | ' | ' | ' |
Balances, | 6,072,623 | 6,072,623 | 6,072,623 |
EPAG Domainservices GmbH [Member] | ' | ' | ' |
Note 3 - Business Acquisitions (Details) - Goodwill Consists of the Following [Line Items] | ' | ' | ' |
Balances, | $882,320 | $882,320 | $882,320 |
Note_4_Derivative_Instrument_A2
Note 4 - Derivative Instrument Assets/Liabilities (Details) (Forward Contracts [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Note 4 - Derivative Instrument Assets/Liabilities (Details) [Line Items] | ' | ' |
Derivative Asset, Notional Amount | $26.50 | $29.30 |
Designated as Hedging Instrument [Member] | ' | ' |
Note 4 - Derivative Instrument Assets/Liabilities (Details) [Line Items] | ' | ' |
Derivative Asset, Notional Amount | $20.60 | $15.10 |
Note_4_Derivative_Instrument_A3
Note 4 - Derivative Instrument Assets/Liabilities (Details) - Summary of the Company's Forward Exchange Contracts to Trade U.S. Dollars in Exchange for Canadian Dollars (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Foreign currency forward contracts not designated as cash flow hedges | ($372,593) | $67,079 |
Total foreign currency forward contracts | -491,098 | 444,782 |
Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Foreign currency forward contracts designated as cash flow hedges | ($118,505) | $377,703 |
Note_4_Derivative_Instrument_A4
Note 4 - Derivative Instrument Assets/Liabilities (Details) - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Operating Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $44,104 | ($289,085) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | ' | ($406) |
Note_5_Property_and_Equipment_1
Note 5 - Property and Equipment (Details) - Property and Equipment Consist of the Following (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Computer software | $1,175,664 | $1,157,609 |
Furniture and equipment | 711,346 | 542,213 |
8,824,505 | 8,229,586 | |
Less: | ' | ' |
Accumulated depreciation | 7,066,669 | 6,877,442 |
1,757,836 | 1,352,144 | |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Computer equipment | $6,937,495 | $6,529,764 |
Note_5_Property_and_Equipment_2
Note 5 - Property and Equipment (Details) - Depreciation of Property and Equipment (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Depreciation of Property and Equipment [Abstract] | ' | ' | ' |
Depreciation of property and equipment | $843,420 | $802,060 | $937,460 |
Note_6_Intangible_Assets_Detai
Note 6 - Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $14,100,000 | ' | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $0 | $0 | $0 |
Note_6_Intangible_Assets_Detai1
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | $1,332,350 | ' | ' |
Additions to/(disposals from) domain portfolio, net | -52,513 | -50,843 | -34,071 |
Technology 2 to 7 years [Member] | ' | ' | ' |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | ' | 83,790 | 227,430 |
Amortization expense | -83,790 | -143,640 | ' |
Brand 7 Years [Member] | ' | ' | ' |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | 224,650 | 398,290 | 571,930 |
Amortization expense | -173,640 | -173,640 | ' |
Customer Relationships 4 to 7 Years [Member] | ' | ' | ' |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | 1,107,700 | 1,810,180 | 2,512,660 |
Amortization expense | -702,480 | -702,480 | ' |
Surname Domain Names Indefinite Life [Member] | ' | ' | ' |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | 12,096,712 | 12,110,017 | 12,120,077 |
Additions to/(disposals from) domain portfolio, net | -13,305 | -10,060 | ' |
Direct Navigation Domain Names Indefinite Life [Member] | ' | ' | ' |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | 1,974,166 | 2,013,374 | 2,050,493 |
Additions to/(disposals from) domain portfolio, net | -39,208 | -37,119 | ' |
Total [Member] | ' | ' | ' |
Note 6 - Intangible Assets (Details) - Acquired Intangible Assets Consist of the Following [Line Items] | ' | ' | ' |
Balances, | 15,403,228 | 16,415,651 | 17,482,590 |
Additions to/(disposals from) domain portfolio, net | -52,513 | -47,179 | ' |
Amortization expense | ($959,910) | ($1,019,760) | ' |
Note_6_Intangible_Assets_Detai2
Note 6 - Intangible Assets (Details) - Estimated Amortization Expense for Each of the Next 5 Years, Assuming No Further Additions to Acquired Intangible Assets Are Made (USD $) | Dec. 31, 2013 |
Estimated Amortization Expense for Each of the Next 5 Years, Assuming No Further Additions to Acquired Intangible Assets Are Made [Abstract] | ' |
2014 | $596,620 |
2015 | 205,320 |
2016 | 205,320 |
2017 | 205,320 |
2018 | 119,770 |
Total | $1,332,350 |
Note_7_Loan_Payable_Details
Note 7 - Loan Payable (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Jan. 07, 2013 | Jan. 23, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 07, 2013 | Dec. 31, 2012 | |
Foreign Exchange Risk [Member] | Operating Demand Loan [Member] | Aggregate Advances [Member] | 2012 DLR Loan [Member] | 2012 DLR Loan [Member] | 2012 DLPR Loan [Member] | 2012 DLPR Loan [Member] | DLR Loan [Member] | DLR Loan [Member] | 2011 DLR [Member] | Maximum [Member] | ||||
2012 DLR Loan [Member] | 2012 DLR Loan [Member] | |||||||||||||
Note 7 - Loan Payable (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | $3,500,000 | $1,000,000 | ' | $14,000,000 | ' | ' | ' | ' | ' | $5,200,000 | $14,000,000 |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | 1.25% | 2.50% | 1.25% | ' | 1.25% | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | 5,200,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | ' | ' | ' |
Line of Credit Facility Maturity | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | 0 | ' | ' | 5,200,000 | ' | 1,100,000 | ' | 5,200,000 | ' | ' |
Stock Repurchased During Period, Shares (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,114,121 | ' |
Share Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.50 | ' |
Stock Repurchased During Period, Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,171,656 | ' |
Payments of Stock Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106,000 | ' |
Line of Credit Facility, Covenant Period | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | ' | ' | ' | 26,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Monitoring Fee | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Total Funded Debt to EBITDA | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Fixed Charge Coverage | ' | ' | 1.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility Maximum Annual Capital Expenditure Ceiling | ' | ' | $3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_7_Loan_Payable_Details_Sc
Note 7 - Loan Payable (Details) - Scheduled Principal Loan Repayments (USD $) | Dec. 31, 2013 |
Scheduled Principal Loan Repayments [Abstract] | ' |
2014 | $2,300,000 |
2015 | 1,400,000 |
2016 | 1,300,000 |
2017 | $1,300,000 |
Note_8_Common_Shares_Details
Note 8 - Common Shares (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 07, 2013 | Mar. 31, 2013 | Mar. 16, 2012 | Jan. 23, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | ' | ' | ' | ' | 250,000,000 | 250,000,000 | 250,000,000 | ' |
Common Stock, Shares, Outstanding | 10,056,719 | ' | ' | 11,511,764 | ' | 11,080,540 | 10,907,063 | 11,080,540 | ' |
Stockholders' Equity Note, Stock Split, Conversion Ratio | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Stock Repurchased and Retired During Period, Shares | 1,028,531 | 35,769 | ' | 1,892,559 | ' | 592,801 | ' | ' | ' |
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $6 | ' | ' | $3.08 | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Value (in Dollars) | $6,171,656 | ' | ' | $5,829,082 | $259,875 | ' | ($6,537,616) | ($9,115,833) | ($18,442) |
Stock Repurchased And Retired During Period Transaction Cost (in Dollars) | 106,000 | ' | ' | 64,000 | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit (in Dollars) | $5,200,000 | ' | ' | $4,000,000 | ' | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | 2,500,000 | 960,000 | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Period in Force | ' | '12 months | '12 months | ' | ' | ' | ' | ' | ' |
Note_9_Stock_Option_Plans_Deta
Note 9 - Stock Option Plans (Details) (USD $) | 12 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 08, 2010 | Oct. 08, 2010 | Jul. 29, 2010 | Dec. 31, 1996 | Nov. 22, 2006 | |
Employee Stock Option [Member] | Non-Qualified Stock Options [Member] | 2006 Equity Compensation Plan [Member] | 2006 Equity Compensation Plan [Member] | 2006 Equity Compensation Plan [Member] | ||||
2006 Equity Compensation Plan [Member] | 2006 Equity Compensation Plan [Member] | |||||||
Note 9 - Stock Option Plans (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | 1,725,000 | 2,787,500 | 1,250,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '4 years | ' | ' | '4 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | ' | ' | ' | ' | ' | 475,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '4 years | '4 years | '4 years | '7 years | '5 years | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $900,000 | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 328 days | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 1,100,000 | 296,000 | 25,000 | ' | ' | ' | ' | ' |
Proceeds from Stock Options Exercised | 1,492,174 | 418,108 | 31,346 | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $400,000 | $400,000 | $300,000 | ' | ' | ' | ' | ' |
Note_9_Stock_Option_Plans_Deta1
Note 9 - Stock Option Plans (Details) - Fair Value of Stock Options Granted (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value of Stock Options Granted [Abstract] | ' | ' | ' |
Volatility | 69.40% | 52.10% | 73.70% |
Risk-free interest rate | 1.10% | 0.50% | 0.80% |
Expected life (in years) | '4 years | '4 years | '4 years |
The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant (in Dollars per share) | $4.52 | $2.24 | $1.52 |
Note_9_Stock_Option_Plans_Deta2
Note 9 - Stock Option Plans (Details) - Stock Option Transactions (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option Transactions [Abstract] | ' | ' | ' |
Outstanding, beginning of year | 2,148,170 | 2,186,511 | 2,068,063 |
Outstanding, beginning of year | $2.56 | $2.28 | $2.24 |
Granted | 180,375 | 194,750 | 176,500 |
Granted | $8.36 | $5.44 | $2.96 |
Exercised | -890,033 | -191,585 | -18,427 |
Exercised | $1.80 | $2.20 | $1.72 |
Forfeited | -29,684 | -40,751 | -24,625 |
Forfeited | $4.88 | $3.20 | $2.76 |
Expired | -1,189 | -755 | -15,000 |
Expired | $1.44 | $1.76 | $3.20 |
Outstanding, end of year | 1,407,639 | 2,148,170 | 2,186,511 |
Outstanding, end of year | $3.80 | $2.56 | $2.28 |
Options exercisable, end of year | 1,045,475 | 1,772,723 | 1,760,604 |
Options exercisable, end of year | $3.14 | $2.28 | $2.16 |
Note_9_Stock_Option_Plans_Deta3
Note 9 - Stock Option Plans (Details) - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Exercise Price $1.52 - $2.40 [Member] | Exercise Price $2.48 - $2.80 [Member] | Exercise Price $2.92 - $3.76 [Member] | Exercise Price $4.20 - $10.16 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding - Exercise price - lower | ' | ' | ' | ' | $1.52 | $2.48 | $2.92 | $4.20 |
Options outstanding - Exercise price - upper | ' | ' | ' | ' | $2.40 | $2.80 | $3.76 | $10.16 |
Options outstanding - Number outstanding (in Shares) | 1,407,639 | 2,148,170 | 2,186,511 | 2,068,063 | 335,029 | 379,135 | 339,041 | 354,434 |
Options outstanding - Weighted average exercise price per share | $3.80 | ' | ' | ' | $2.32 | $2.75 | $3.21 | $6.86 |
Options outstanding - Weighted average remaining contractual life (years) | ' | ' | ' | ' | '328 days | '3 years | '2 years | '5 years 6 months |
Options outstanding - Aggregate intrinsic value (in Dollars) | $14,364,510 | ' | ' | ' | $3,911,669 | $4,264,512 | $3,658,099 | $2,530,230 |
Options exercisable - Number exercisable (in Shares) | 1,045,475 | 1,772,723 | 1,760,604 | ' | 335,029 | 302,472 | 288,867 | 119,107 |
Options exercisable - Weighted average exercise price per share | $3.14 | $2.28 | $2.16 | ' | $2.32 | $2.74 | $3.26 | $6.13 |
Options exercisable - Aggregate intrinsic value (in Dollars) | $11,357,316 | ' | ' | ' | $3,911,669 | $3,405,886 | $3,102,171 | $937,590 |
Note_10_Income_Taxes_Details
Note 10 - Income Taxes (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | |
Scenario, Forecast [Member] | Fourth Quarter [Member] | |||
Note 10 - Income Taxes (Details) [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | ' | ' | ' | $3,600,000 |
Unrecognized Tax Benefits | 117,000 | 382,000 | ' | ' |
Unrecognized Tax Benefits, Period Increase (Decrease) | ' | ' | $100,000 | ' |
Note_10_Income_Taxes_Details_P
Note 10 - Income Taxes (Details) - Provision for Income Taxes Differs From the Amount Computed By Applying the Statutory Federal Income Tax Rate (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Provision for Income Taxes Differs From the Amount Computed By Applying the Statutory Federal Income Tax Rate [Abstract] | ' | ' | ' |
Income for the year before provision for income taxes | $5,799,803 | $6,428,298 | $3,450,610 |
Computed expected tax expense | 1,971,933 | 2,185,621 | 1,173,207 |
State income taxes | 14,500 | 16,071 | 8,627 |
Permanent differences, including foreign exchange | 13,700 | 21,728 | 13,700 |
Investment tax credits recovered | -115,455 | -106,941 | -41,833 |
Other, including alternative minimum tax and adjustments to opening deferred tax assets | -265,339 | -112,323 | -218,252 |
Change in beginning of the year balance of the valuation allowance allocated to income tax expense | ' | ' | -3,655,070 |
Provision for (recovery of) income taxes | $1,619,339 | $2,004,156 | ($2,719,621) |
Note_10_Income_Taxes_Details_T
Note 10 - Income Taxes (Details) - Tax Effects of Temporary Differences That Give Rise to Significant Portions of the Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Deferred revenue | $5,300,868 | $5,429,220 |
Losses | 290,714 | ' |
Foreign tax credit | 1,914,090 | ' |
Amortization | 69,169 | 541,242 |
Accruals, including foreign exchange and other | -1,123,278 | ' |
Deferred tax assets | 6,451,563 | 5,970,462 |
Deferred income tax asset, current portion | 1,081,526 | ' |
Deferred income tax asset, long-term portion | 5,370,037 | 5,970,462 |
Deferred tax liabilities: | ' | ' |
Accruals, including foreign exchange and other | ' | -914,429 |
Limited life intangible assets | -301,500 | -394,100 |
Indefinite life intangible assets | -4,840,000 | -4,840,000 |
Total deferred tax liabilities | -5,141,500 | -6,148,529 |
Less deferred tax liability, current portion | ' | -914,429 |
Deferred tax liability, long-term portion | ($5,141,500) | ($5,234,100) |
Note_10_Income_Taxes_Details_R
Note 10 - Income Taxes (Details) - Reconciliation of Tucowsb Change in Uncertain Tax Position Under ASC 740 (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Reconciliation of Tucowsb Change in Uncertain Tax Position Under ASC 740 [Abstract] | ' |
Balance as at December 31 | $382,000 |
Decrease in uncertain tax benefits of prior years | -265,000 |
Balance as at December 31 | $117,000 |
Note_11_Other_Income_Net_Detai
Note 11 - Other Income, Net (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Other Nonoperating Income | ' | $0 | $0 | $400,000 |
Proceeds from Sale of Intangible Assets | $500,000 | ' | $508,800 | ' |
Note_12_Earnings_Per_Common_Sh2
Note 12 - Earnings Per Common Share (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 136,812 | 188,797 | 787,188 |
Note_12_Earnings_Per_Common_Sh3
Note 12 - Earnings Per Common Share (Details) - Numerators and Denominators of the Basic and Diluted Earnings Per Share (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Numerator for basic and diluted earnings per common share: | ' | ' | ' |
Net income for the year | $4,180,464 | $4,424,142 | $6,170,231 |
Denominator for basic and diluted earnings per common share: | ' | ' | ' |
Basic weighted average number of common shares outstanding | 10,468,250 | 11,458,216 | 13,363,669 |
Effect of stock options | $813,159 | $825,520 | $573,690 |
Diluted weighted average number of shares outstanding | 11,281,409 | 12,283,736 | 13,937,359 |
Basic earnings per common share | $0.40 | $0.39 | $0.46 |
Diluted earnings per common share | $0.37 | $0.36 | $0.44 |
Note_13_Commitments_and_Contin2
Note 13 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense, Net | $0.80 | $0.90 | $0.90 |
Note_13_Commitments_and_Contin3
Note 13 - Commitments and Contingencies (Details) - Summary of General Office Facilities and Equipment (USD $) | Dec. 31, 2013 |
Summary of General Office Facilities and Equipment [Abstract] | ' |
2014 | $1,897,000 |
2015 | 1,518,000 |
2016 | 991,000 |
2017 | 919,000 |
2018 | 494,000 |
Thereafter | $987,000 |
Note_14_Fair_Value_Measurement2
Note 14 - Fair Value Measurement (Details) - Summary of the Fair Values of the Companybs Derivative Instruments (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities at Fair Value | $491,098 | ' |
Assets at Fair Value | ' | 444,782 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities at Fair Value | 491,098 | ' |
Assets at Fair Value | ' | $444,782 |
Note_15_Subsequent_Events_Deta
Note 15 - Subsequent Events (Details) (Subsequent Event [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 03, 2015 |
Subsequent Event [Member] | ' |
Note 15 - Subsequent Events (Details) [Line Items] | ' |
Stock Repurchase Program, Authorized Amount | $20 |
Note_16_Segment_Reporting_Deta
Note 16 - Segment Reporting (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 16 - Segment Reporting (Details) [Line Items] | ' | ' | ' |
Number of Reportable Segments | 2 | ' | ' |
One Customer [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Note 16 - Segment Reporting (Details) [Line Items] | ' | ' | ' |
Number Of Customers | 1 | ' | ' |
Concentration Risk, Percentage | 16.00% | ' | ' |
Customer Concentration Risk [Member] | Sales [Member] | ' | ' | ' |
Note 16 - Segment Reporting (Details) [Line Items] | ' | ' | ' |
Number Of Customers | 0 | 0 | 0 |
Concentration Risk, Percentage | 10.00% | ' | ' |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Note 16 - Segment Reporting (Details) [Line Items] | ' | ' | ' |
Number Of Customers | 0 | 0 | 1 |
Concentration Risk, Percentage | 10.00% | ' | ' |
Accounts Receivable [Member] | ' | ' | ' |
Note 16 - Segment Reporting (Details) [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 10.00% | ' | 16.00% |
Note_16_Segment_Reporting_Deta1
Note 16 - Segment Reporting (Details) - Information by Reportable Segments (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net Revenues | $129,934,904 | $114,726,901 | ' |
Cost of Revenues | 98,508,023 | 88,517,733 | 73,762,082 |
Gross Profit | 31,426,881 | 26,209,168 | 23,302,885 |
Sales and marketing | 12,141,036 | 8,701,446 | 7,442,681 |
Technical operations and development | 4,158,603 | 4,302,820 | 4,868,228 |
General and administrative | 7,204,895 | 6,610,819 | 6,096,596 |
Depreciation of property and equipment | 215,447 | 190,420 | 187,005 |
Loss on disposition of property and equipment | ' | 118,944 | ' |
Amortization of intangibles | 876,120 | 876,120 | 1,004,950 |
Loss gain on currency forward contracts | 676,120 | -682,851 | 535,223 |
Income from operations | 6,154,660 | 6,091,450 | 3,126,037 |
Other | -354,857 | 336,848 | ' |
Income before provision for income taxes | 5,799,803 | 6,428,298 | 3,450,610 |
Domain Name Services [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net Revenues | 113,404,668 | 110,761,217 | ' |
Cost of Revenues | 85,886,930 | 84,388,714 | ' |
Gross Profit | 27,517,738 | 26,372,503 | ' |
Network Access Services [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net Revenues | 16,530,236 | 3,965,684 | ' |
Cost of Revenues | 12,621,093 | 4,129,019 | ' |
Gross Profit | $3,909,143 | ($163,335) | ' |
Note_16_Segment_Reporting_Deta2
Note 16 - Segment Reporting (Details) - Summary of the Companybs Revenue Earned from Each Significant Revenue Stream (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Wholesale | ' | ' | ' |
Revenues by revenues stream | $129,934,904 | $114,726,901 | $97,064,967 |
Domain Services [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Revenues by revenues stream | 87,294,173 | 87,434,450 | 76,201,058 |
Value Added Services [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Revenues by revenues stream | 10,271,219 | 10,586,460 | 9,268,460 |
Total Wholesale [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Revenues by revenues stream | 97,565,392 | 98,020,910 | 85,469,518 |
Retail Services [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Revenues by revenues stream | 24,890,272 | 10,740,844 | 5,263,118 |
Portfolio [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Revenues by revenues stream | $7,479,240 | $5,965,147 | $6,332,331 |
Note_16_Segment_Reporting_Deta3
Note 16 - Segment Reporting (Details) - Summary of the Companybs Cost of Revenues from Each Significant Revenue Stream (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | $98,508,023 | $88,517,733 | $73,762,082 |
Domain Services [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | 73,468,824 | 73,168,196 | 63,491,433 |
Value Added Services [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | 2,115,167 | 2,032,328 | 1,969,374 |
Total Wholesale [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | 75,583,991 | 75,200,524 | 65,460,807 |
Retail Services [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | 16,142,116 | 6,804,863 | 1,881,063 |
Portfolio [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | 1,234,214 | 832,008 | 746,517 |
Network, Other Costs [Member] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | 4,835,939 | 4,925,058 | 4,837,650 |
Network, Depreciation and Amortization Costs [Membevr] | ' | ' | ' |
Wholesale | ' | ' | ' |
Cost of services from each revenue stream | $711,763 | $755,280 | $836,045 |
Note_16_Segment_Reporting_Deta4
Note 16 - Segment Reporting (Details) - Summary of the Companybs Property and Equipment By Geographic Region (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Property and Equipment By Geographic Region [Line Items] | ' | ' |
Property and equipment by geographic region: | $1,757,836 | $1,352,144 |
Canada [Member] | ' | ' |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Property and Equipment By Geographic Region [Line Items] | ' | ' |
Property and equipment by geographic region: | 1,292,425 | 1,026,570 |
United States [Member] | ' | ' |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Property and Equipment By Geographic Region [Line Items] | ' | ' |
Property and equipment by geographic region: | 453,223 | 306,679 |
Germany [Member] | ' | ' |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Property and Equipment By Geographic Region [Line Items] | ' | ' |
Property and equipment by geographic region: | $12,188 | $18,895 |
Note_16_Segment_Reporting_Deta5
Note 16 - Segment Reporting (Details) - Summary of the Companybs Amortizable Intangible Assets By Geographic Region (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Amortizable Intangible Assets By Geographic Region [Line Items] | ' | ' |
Amortizable intangible assets by geographic region: | $1,332,350 | $2,292,260 |
Canada [Member] | ' | ' |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Amortizable Intangible Assets By Geographic Region [Line Items] | ' | ' |
Amortizable intangible assets by geographic region: | 271,300 | 1,062,100 |
Germany [Member] | ' | ' |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Amortizable Intangible Assets By Geographic Region [Line Items] | ' | ' |
Amortizable intangible assets by geographic region: | $1,061,050 | $1,230,160 |
Note_16_Segment_Reporting_Deta6
Note 16 - Segment Reporting (Details) - Summary of the Companybs Deferred Tax Asset, Net of Valuation Allowance, By Geographic Region (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Deferred Tax Asset, Net of Valuation Allowance, By Geographic Region [Line Items] | ' | ' |
Deferred tax asset, net of valuation allowance, by geographic region: | $6,451,563 | $5,970,462 |
Canada [Member] | ' | ' |
Note 16 - Segment Reporting (Details) - Summary of the Companybs Deferred Tax Asset, Net of Valuation Allowance, By Geographic Region [Line Items] | ' | ' |
Deferred tax asset, net of valuation allowance, by geographic region: | $6,451,563 | $5,970,462 |
Note_16_Segment_Reporting_Deta7
Note 16 - Segment Reporting (Details) - Summary of Valuation and Qualifying Accounts (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Balance at beginning year | $78,970 | $62,415 | $65,000 |
Charged to (recovered) costs and expenses | 17,256 | 16,555 | -2,585 |
Balance at end of year | 96,226 | 78,970 | 62,415 |
Valuation Allowance of Deferred Tax Assets [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Balance at beginning year | ' | ' | 3,655,070 |
Charged to (recovered) costs and expenses | ' | ' | ($3,655,070) |