Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TUCOWS INC /PA/ | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 11,081,390 | ||
Entity Public Float | $112,300,000 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 909494 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $8,271,377 | $12,418,888 |
Accounts receivable, net of allowance for doubtful accounts of $125,766 as of December 31, 2014 and $91,226 as of December 31, 2013 | 6,789,685 | 5,305,403 |
Inventory | 393,774 | 309,686 |
Prepaid expenses and deposits | 3,697,292 | 4,309,039 |
Prepaid domain name registry and ancillary services fees, current portion | 44,614,858 | 44,209,591 |
Other assets (note 3) | 8,199,000 | |
Deferred tax asset, current portion (note 9) | 2,498,196 | 1,081,526 |
Income taxes recoverable | 997 | 475,889 |
Total current assets | 74,465,179 | 68,110,022 |
Prepaid domain name registry and ancillary services fees, long-term portion | 11,764,765 | 11,838,579 |
Property and equipment (note 4) | 1,609,787 | 1,757,836 |
Deferred tax asset, long-term portion (note 9) | 4,880,423 | 5,370,037 |
Intangible assets (note 5) | 14,202,585 | 15,403,228 |
Goodwill (note 5) | 18,873,127 | 18,873,127 |
Total assets | 125,795,866 | 121,352,829 |
Current liabilities: | ||
Accounts payable | 3,579,920 | 2,361,481 |
Accrued liabilities | 3,941,549 | 3,913,034 |
Customer deposits | 4,461,727 | 4,500,946 |
Derivative instrument liability, current portion (note 7) | 1,115,805 | 491,098 |
Loan payable (note 8) | 6,300,000 | |
Deferred revenue, current portion | 55,495,566 | 54,379,719 |
Accreditation fees payable, current portion | 466,201 | 473,811 |
Income taxes payable (note 9) | 473,480 | 1,024,004 |
Total current liabilities | 69,534,248 | 73,444,093 |
Deferred revenue, long-term portion | 15,610,753 | 15,638,517 |
Accreditation fees payable, long-term portion | 128,243 | 135,522 |
Deferred rent, long-term portion | 92,878 | 75,979 |
Deferred tax liability, long-term portion (note 9) | 4,787,351 | 5,141,500 |
Stockholders' equity (note 10) | ||
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;11,329,732 shares issued and outstanding as of December 31, 2014 and 10,907,063 shares issued and outstanding as of December 31, 2013 | 14,130,059 | 11,859,267 |
Additional paid-in capital | 29,090,058 | 28,632,311 |
Deficit | -6,955,283 | -13,329,379 |
Accumulated other comprehensive income (loss) | -622,441 | -244,981 |
Total stockholders' equity | 35,642,393 | 26,917,218 |
Total liabilities and stockholders' equity | 125,795,866 | 121,352,829 |
Commitments and contingencies (note 15) |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts (in Dollars) | $125,766 | $91,226 |
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 | 11,329,732 | 10,907,063 |
Common stock shares outstanding | 11,329,732 | 10,907,063 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net revenues (note 17) | $147,667,107 | $129,934,904 | $114,726,901 |
Cost of revenues (note 17): | |||
Cost of revenues | 101,861,002 | 92,960,321 | 82,837,395 |
Network expenses | 4,554,635 | 4,835,939 | 4,925,058 |
Depreciation of property and equipment | 699,670 | 627,973 | 611,640 |
Amortization of intangible assets | 83,790 | 143,640 | |
Total cost of revenues | 107,115,307 | 98,508,023 | 88,517,733 |
Gross profit | 40,551,800 | 31,426,881 | 26,209,168 |
Expenses: | |||
Sales and marketing | 15,394,065 | 12,141,036 | 8,701,446 |
Technical operations and development | 4,305,715 | 4,158,603 | 4,302,820 |
General and administrative (note 12) | 8,505,920 | 7,204,895 | 6,610,819 |
Depreciation of property and equipment | 226,432 | 215,447 | 190,420 |
Loss on disposition of property and equipment | 118,944 | ||
Amortization of intangible assets | 596,620 | 876,120 | 876,120 |
Impairment of indefinite life intangible assets | 577,145 | 0 | 0 |
Loss (gain) on currency forward contracts | 1,310,848 | 676,120 | -682,851 |
Total expenses | 30,916,745 | 25,272,221 | 20,117,718 |
Income from operations | 9,635,055 | 6,154,660 | 6,091,450 |
Other income (expense): | |||
Interest expense, net | -206,730 | -354,857 | -192,863 |
Other income, net (note 13) | 529,711 | ||
Total other income (expense) | -206,730 | -354,857 | 336,848 |
Income before provision for income taxes | 9,428,325 | 5,799,803 | 6,428,298 |
Provision for (recovery of) income taxes (note 9) | 3,054,229 | 1,619,339 | 2,004,156 |
Net income | 6,374,096 | 4,180,464 | 4,424,142 |
Other comprehensive income (loss), net of tax | |||
Unrealized income (loss) on hedging activities (note 7) | -1,004,115 | -470,779 | 44,104 |
Net amount reclassified to earnings (note 7) | 626,655 | 181,694 | |
Other comprehensive income (loss), net of tax of $196,623 (2013 : $150,587) | -377,460 | -289,085 | 44,104 |
Comprehensive income for the year | $5,996,636 | $3,891,379 | $4,468,246 |
Basic earnings per common share (note 14) (in Dollars per share) | $0.57 | $0.40 | $0.39 |
Shares used in computing basic earnings per common share (note 14) (in Shares) | 11,220,874 | 10,468,250 | 11,458,216 |
Diluted earnings per common share (note 14) (in Dollars per share) | $0.54 | $0.37 | $0.36 |
Shares used in computing diluted earnings per common share (note 14) (in Shares) | 11,730,398 | 11,281,409 | 12,283,736 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other comprehensive income (loss), tax | $196,623 | $150,587 |
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, 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 | 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 | 890,034 | |||
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 | 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 | ||||
Exercise of stock options | 2,365,825 | -886,900 | 1,478,925 | ||
Exercise of stock options (in Shares) | 502,061 | 502,061 | |||
Repurchase and retirement of shares | -95,033 | -1,086,825 | -1,181,858 | ||
Repurchase and retirement of shares (in Shares) | -79,392 | ||||
Income tax effect related to stock options exercised | 1,888,734 | 1,888,734 | |||
Stock-based compensation | 542,738 | 542,738 | |||
Net income | 6,374,096 | 6,374,096 | |||
Other comprehensive income (loss) | -377,460 | -377,460 | |||
Balances, at Dec. 31, 2014 | $14,130,059 | $29,090,058 | ($6,955,283) | ($622,441) | $35,642,393 |
Balances, (in Shares) at Dec. 31, 2014 | 11,329,732 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating activities: | |||
Net income for the year | $6,374,096 | $4,180,464 | $4,424,142 |
Items not involving cash: | |||
Depreciation of property and equipment | 926,102 | 843,420 | 802,060 |
Loss on disposition of property and equipment | 118,944 | ||
Amortization of deferred financing charges | 2,300 | ||
Amortization of intangible assets | 596,620 | 959,910 | 1,019,760 |
Impairment of indefinite life intangible asset | 577,145 | 0 | 0 |
Deferred income taxes (recovery) | -1,084,470 | -247,371 | 832,736 |
Excess tax benefits from share-based compensation expense | -1,090,171 | ||
Amortization of deferred rent | 16,899 | 21,829 | 27,663 |
Acquisition of domain names | -3,664 | ||
Disposal of domain names | 26,878 | 52,513 | 50,843 |
Gain on disposition of intangible assets | -508,800 | ||
(Gain) loss on change in the fair value of forward contracts | 50,624 | 496,207 | -1,100,161 |
Stock-based compensation | 542,738 | 430,903 | 360,699 |
Change in non-cash operating working capital: | |||
Accounts receivable | -1,484,282 | -892,138 | -533,081 |
Inventory | -84,088 | 277,418 | -381,507 |
Prepaid expenses and deposits | 611,747 | 772,369 | -1,325,100 |
Prepaid domain name registry and ancillary services fees | -331,453 | 1,440,720 | -1,679,703 |
Income taxes recoverable | -75,744 | 1,023,638 | 233,312 |
Accounts payable | 1,152,042 | 529,537 | 931,467 |
Accrued liabilities | 28,515 | 1,390,805 | 547,590 |
Customer deposits | -39,219 | -454,725 | 752,772 |
Deferred revenue | 1,088,083 | -982,115 | 1,824,650 |
Accreditation fees payable | -14,889 | -49,106 | -53,491 |
Net cash provided by operating activities | 8,877,344 | 8,704,107 | 6,343,431 |
Financing activities: | |||
Proceeds received on exercise of stock options | 1,478,924 | 1,492,174 | 418,108 |
Excess tax benefits from share-based compensation expense | 1,888,734 | 1,090,171 | |
Repurchase of common stock | -1,181,857 | -6,537,616 | -9,115,833 |
Proceeds received on loan payable | 5,200,000 | 4,000,000 | |
Repayment of loan payable | -6,300,000 | -2,600,000 | -1,150,000 |
Net cash used in financing activities | -4,114,199 | -1,355,271 | -5,847,725 |
Investing activities: | |||
Additions to property and equipment | -711,656 | -1,345,627 | -997,036 |
Acquisition of other assets | -8,199,000 | ||
Proceeds on disposal of intangible assets | 508,800 | ||
Net cash used in investing activities | -8,910,656 | -1,345,627 | -488,236 |
Increase in cash and cash equivalents | -4,147,511 | 6,003,209 | 7,470 |
Cash and cash equivalents, beginning of year | 12,418,888 | 6,415,679 | 6,408,209 |
Cash and cash equivalents, end of year | 8,271,377 | 12,418,888 | 6,415,679 |
Supplemental cash flow information: | |||
Interest paid | 207,777 | 372,853 | 195,509 |
Income taxes paid, net | 2,172,047 | 793,000 | 1,025,000 |
Supplementary disclosure of non-cash investing and financing activities: | |||
Property and equipment acquired during the period not yet paid for | $66,397 | $96,515 |
Note_1_Organization_of_The_Com
Note 1 - Organization of The Company | 12 Months Ended |
Dec. 31, 2014 | |
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. The Company’s Internet Services are distributed through its global Internet-based distribution network of Internet Service Providers, web hosting companies and other providers of Internet services to end-users. In addition, the Company derives Network Access Services devices revenue from the sale of retail mobile phones and services to individuals and small businesses through the Ting website using a Mobile Virtual Network Operator model. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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 10. 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 assumptions 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. Cash and cash equivalents are stated at cost which approximates fair value. | |||||
(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, the Company would 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 Other Intangible assets | |||||
Goodwill | |||||
Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not amortize goodwill. Impairment testing for goodwill is performed annually in the fourth quarter of each year or more frequently if impairment indicators are present. Impairment testing is performed at the operating segment level. The Company has determined that it has two operating segments, Domain Services and Network Access Services. | |||||
The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not that goodwill has been impaired. If, after this qualitative assessment, the Company determines that it is not more likely than not that goodwill has been impaired, then no further quantitative testing is necessary. In performance of the qualitative test, an evaluation is made of the impact of various factors to the expected future cash flows attributable to its operating segments and to the assumed discount rate which would be used to present value those cash flows. Consideration is given to factors such as, macro-economic and industry and market conditions including the capital markets and the competitive environment amongst others. In the event that the qualitative tests indicate that there may be impairment, quantitative impairment testing is required. | |||||
In performance of the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level 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 for its operating segment. 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. | |||||
Intangibles Assets not subject to amortization | |||||
Intangible assets not subject to amortization consist of surname domain names and direct navigation domain names. While the domain names are renewed annually, through payment of a renewal fee to the applicable registry, the Company has the exclusive right to renew these names at its option. Renewals occur routinely and at a nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, economic or other factors that limit the useful life of these domain names on an aggregate basis and accordingly treat the portfolio of domain names as indefinite life intangible assets. The Company reevaluates the useful life determination for domain names in the portfolio each year to determine whether events and circumstances continue to support an indefinite useful life. | |||||
The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names on an aggregate basis in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of the portfolio of domain names was less than the carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, levels of advertising revenue generated by the names in the portfolio, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. The fair value of the intangibles in the operating segment is determined using an income approach consistent with that utilized for goodwill impairment testing outlined above. Where the fair value of the aggregated portfolio of domain names is less than the aggregated carrying amount of the portfolio, impairment is recognized. | |||||
Intangible Assets subject to amortization | |||||
Intangible assets subject to amortization, consist of technology, brand and customer relationships and are amortized on a straight line basis over their estimated useful lives as follows: | |||||
Technology (years) | 2 – 7 | ||||
Brand (years) | 7 | ||||
Customer relationships (years) | 4 – 7 | ||||
The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization 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 2014 and 2013. | |||||
(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. 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 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 revenue includes revenue derived from cost-per action advertising links the Company displays on third party websites who provide syndicated pay-per-click advertising on OpenSRS Domain Expiry Stream domains and the Company’s Portfolio Domains. In addition, the Company uses third party partners to derive pay-per-click advertising on the Tucow.com website. Advertising revenue is recognized on a monthly basis based on the number of cost-per-action services that were provided in the month. | |||||
Impression based advertising revenue 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. | |||||
(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. | |||||
(l) Derivative Financial Instruments | |||||
During Fiscal 2014 and Fiscal 2013, the Company used derivative financial instruments to manage foreign currency exchange risk. The Company accounts for these instruments in accordance with ASC Topic 815, “Derivatives and Hedging” (ASC 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. ASC 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). The Company 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. The valuation technique used to measure the fair values of the derivative instruments is a discounted cash flow technique, with all significant inputs derived from or corroborated by observable market data, as no quoted market prices exist for the derivative instruments. This discounted cash flow technique uses observable market inputs, such as foreign currency spot and forward rates. | |||||
(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, 2014, 2013 and 2012, 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, 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. | |||||
(r) Fair value measurement | |||||
Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: | |||||
Level 1—Quoted prices in active markets for identical assets or liabilities | |||||
Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities | |||||
Level 3—No observable pricing inputs in the market | |||||
Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. | |||||
The fair value of cash and cash equivalents, 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 derivative financial instruments 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 | |||||
On January 1, 2014, the Company adopted the 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”). The adoption of ASU 2013-11 was made on a prospective basis and did not have a significant impact on our consolidated financial statements. | |||||
Recent Accounting Pronouncements Not Yet Adopted | |||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU 2014-08”), Presentation of Financial Statements and Property, Plant and Equipment: Discontinued Operations and Disclosures of Disposals of components of an Entity. ASU 2014-08, which is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014, changes the criteria for reporting a discontinued operation. Under the new guidance a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. For disposals of individually significant components that do not qualify for discontinued operations presentation, an entity must disclose pre-tax profit or loss of the disposed component. | |||||
The Company will adopt ASU 2014-8 on January 1, 2015. The adoption of the accounting standard update is not expected to have a material impact on the consolidated financial statements. | |||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The effective date of ASU 2014-09 is fiscal years beginning after December 15, 2016, and interim periods within those years, with earlier adoption prohibited. Companies can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company has not yet selected a transition method nor has it determined the effect of ASU 2014-09 to its consolidated financial statements. |
Note_3_Other_Assets
Note 3 - Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Other Assets Disclosure [Text Block] | 3. Other assets: | ||||||||
Other assets are comprised of the following: | |||||||||
Year ended | Year ended | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Amounts in escrow advanced to acquire a controlling ownership interest in Ting Virginia, LLC (see note 16) | $ | 3,125,000 | $ | — | |||||
Amounts advanced to the joint venture with Radix FZC and NameCheap Inc. which was terminated in February 2015 (see note 16) | 5,074,000 | — | |||||||
$ | 8,199,000 | $ | — | ||||||
Note_4_Property_and_equipment
Note 4 - Property and equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment: | ||||||||||||
Property and equipment consist of the following: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Computer equipment | $ | 5,902,905 | $ | 6,937,495 | |||||||||
Computer software | 1,170,866 | 1,175,664 | |||||||||||
Furniture and equipment | 757,118 | 711,346 | |||||||||||
7,830,889 | 8,824,505 | ||||||||||||
Less: | |||||||||||||
Accumulated depreciation | 6,221,102 | 7,066,669 | |||||||||||
$ | 1,609,787 | $ | 1,757,836 | ||||||||||
Depreciation of property and equipment: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation of property and equipment | $ | 926,102 | $ | 843,420 | $ | 802,060 | |||||||
Note_5_Goodwill_and_Other_Inta
Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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, 2014 | $ | 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’s goodwill relates entirely to its Domain Services operating segment. Goodwill is not amortized, but is subject to an annual impairment test. The Company performed an impairment analysis as outlined in note 2(f) and there were no indications of impairment in the 2014 and 2013 impairment tests. | |||||||||||||||||||||||||
Other Intangible Assets: | |||||||||||||||||||||||||
All of the Company’s intangible assets relate to its Domain Services operating segment. Intangible assets consist of acquired technology, brand, customer relationships, surname domain names and direct navigation domain names. The Company treats its intangible assets consisting of surname domain names and direct navigation domain names as indefinite life intangible assets. The Company has the exclusive right to these domain names as long as the annual renewal fees are paid to the applicable registry. Renewals occur routinely and at a nominal cost. The indefinite life intangible assets are not amortized, but are subject to impairment tests performed throughout the year. During 2014, the Company assessed that certain of the domain names that were originally acquired in the June 2006 acquisition of Mailbank.com Inc. that were up for renewal, should not be renewed. During the year ended December 31, 2014, domain names, with a book value of $ 577,145, were not renewed and were recorded as an impairment of indefinite life intangible assets. No impairment was recorded on indefinite-life intangible assets during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
Intangible assets, comprising technology, brand and customer relationships 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. | |||||||||||||||||||||||||
Acquired intangible assets consist of the following: | |||||||||||||||||||||||||
Surname | Direct | Technology | Brand | Customer | |||||||||||||||||||||
domain names | navigation | relationships | |||||||||||||||||||||||
domain names | |||||||||||||||||||||||||
Amortization period | indefinite life | indefinite life | 7-Feb | 7 | 7-Apr | Total | |||||||||||||||||||
years | years | years | |||||||||||||||||||||||
Balances, December 31, 2012 | $ | 12,110,017 | $ | 2,013,374 | $ | 83,790 | $ | 398,290 | $ | 1,810,180 | $ | 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 | 12,096,712 | 1,974,166 | — | 224,650 | 1,107,700 | 15,403,228 | |||||||||||||||||||
Additions to/(disposals from) domain portfolio, net | (6,490 | ) | (20,388 | ) | — | — | — | (26,878 | ) | ||||||||||||||||
Impairment of indefinite life intangible assets | (564,598 | ) | (12,547 | ) | — | — | — | (577,145 | ) | ||||||||||||||||
Amortization expense | — | — | — | (114,140 | ) | (482,480 | ) | (596,620 | ) | ||||||||||||||||
Balances, December 31, 2014 | $ | 11,525,624 | $ | 1,941,231 | $ | — | $ | 110,510 | $ | 625,220 | $ | 14,202,585 | |||||||||||||
The following table shows the estimated amortization expense for each of the next 4 years, assuming no further additions to acquired intangible assets are made: | |||||||||||||||||||||||||
Year ending | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2015 | 205,320 | ||||||||||||||||||||||||
2016 | 205,320 | ||||||||||||||||||||||||
2017 | 205,320 | ||||||||||||||||||||||||
2018 | 119,770 | ||||||||||||||||||||||||
Total | $ | 735,730 | |||||||||||||||||||||||
Note_6_Fair_Value_Measurement
Note 6 - Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | 6. Fair value measurement: | ||||||||||||||||
For financial assets and liabilities recorded in our financial statements at fair value the Company utilizes 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, 2014: | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Fair Value Measurement Using | Liabilities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument liability | $ | — | $ | 1,115,805 | $ | — | $ | 1,115,805 | |||||||||
Total Liabilities | $ | — | $ | 1,115,805 | $ | — | $ | 1,115,805 | |||||||||
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 | Liabilities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument liability | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
Total Liabilities | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
Note_7_Derivative_Instruments_
Note 7 - Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7. Derivative instruments and hedging activities: | ||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||
In October 2012, the Company entered into 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 Canadian domain name registry suppliers 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. 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, 2014 and 2013, is recorded as derivative instrument liabilities. | |||||||||||||||||||||
As of December 31, 2014, the notional amount of forward contracts that the Company held to sell U.S. dollars in exchange for Canadian dollars was $26.2 million, of which $22.3 million met the requirements of ASC Topic 815 and were designated as hedges (December 31, 2013 - $26.5 million of which $20.6 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, 2014, were as follows (amounts presented do not include any income tax effects). | |||||||||||||||||||||
Fair value of derivative instruments in the consolidated balance sheets (see note 6) | |||||||||||||||||||||
Derivatives | Balance Sheet | Year ended | Year ended | ||||||||||||||||||
Location | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Asset | Asset | ||||||||||||||||||||
(Liability) | (Liability) | ||||||||||||||||||||
Foreign currency forward contracts designated as cash flow hedges | Derivative instruments | $ | (946,676 | ) | $ | (372,593 | ) | ||||||||||||||
Foreign currency forward contracts not designated as cash flow hedges | Derivative instruments | $ | (169,129 | ) | $ | (118,505 | ) | ||||||||||||||
Total foreign currency forward contracts | Derivative instruments | $ | (1,115,805 | ) | $ | (491,098 | ) | ||||||||||||||
Movement in AOCI balance for the year ended December 31, 2014 | |||||||||||||||||||||
Gains and losses on cash flow hedges | Tax impact | Total AOCI | |||||||||||||||||||
Opening AOCI balance – December 31, 2013 | $ | (372,593 | ) | $ | 127,612 | $ | (244,981 | ) | |||||||||||||
Other comprehensive income (loss) before reclassifications | (1,527,171 | ) | 523,056 | (1,004,115 | ) | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income | 953,088 | (326,433 | ) | 626,655 | |||||||||||||||||
Other comprehensive income (loss) for the year ended December 31, 2014 | (574,083 | ) | 196,623 | (377,460 | ) | ||||||||||||||||
Ending AOCI balance – December 31, 2014 | $ | (946,676 | ) | $ | 324,235 | $ | (622,441 | ) | |||||||||||||
Movement in AOCI balance for the year ended December 31, 2013 | |||||||||||||||||||||
Gains and losses on cash flow hedges | Tax impact | Total AOCI | |||||||||||||||||||
Opening AOCI balance – December 31, 2012 | $ | 67,079 | $ | (22,975 | ) | $ | 44,104 | ||||||||||||||
Other comprehensive income (loss) before reclassifications | (758,683 | ) | 287,904 | (470,779 | ) | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income | 319,011 | (137,317 | ) | 181,694 | |||||||||||||||||
Other comprehensive income (loss) for the year ended December 31, 2013 | (439,672 | ) | 150,587 | (289,085 | ) | ||||||||||||||||
Ending AOCI balance – December 31, 2013 | $ | (372,593 | ) | $ | 127,612 | $ | (244,981 | ) | |||||||||||||
Movement in AOCI balance for the year ended December 31, 2012 | |||||||||||||||||||||
Gains and losses on cash flow hedges | Tax impact | Total AOCI | |||||||||||||||||||
Opening AOCI balance – December 31, 2011 | $ | — | $ | — | $ | — | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 67,079 | (22,975 | ) | 44,104 | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) for the year ended December 31, 2012 | 67,079 | (22,975 | ) | 44,104 | |||||||||||||||||
Ending AOCI balance – December 31, 2012 | $ | 67,079 | $ | (22,975 | ) | $ | 44,104 | ||||||||||||||
Effects of derivative instruments on income and other comprehensive income (OCI) | |||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gain or (Loss) Recognized in OCI,net of tax, 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,net of tax, (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 | ||||||||||||||||
Hedging Relationship | |||||||||||||||||||||
Operating expenses | $ | (463,160 | ) | ||||||||||||||||||
Foreign currency forward contracts – year ended December 31, 2014 | $ | (377,460 | ) | Cost of revenues | (163,495 | ) | Cost of revenues | (13,535 | ) | ||||||||||||
Operating expenses | (151,551 | ) | |||||||||||||||||||
Foreign currency forward contracts – year ended December 31, 2013 | (289,085 | ) | Cost of revenues | (30,143 | ) | — | — | ||||||||||||||
In addition to the above, for those foreign currency forward contracts not designated as hedges, the Company has recorded a loss of $0.3 million upon settlement and a loss of $50,000 for the change in fair value of outstanding contracts for the year ended December 31, 2014, in the consolidated statement of operations and comprehensive income. The Company has recorded a gain of $0.1 million upon settlement and a loss of $0.5 million for the change in fair value of outstanding contracts for the year ended December 31, 2013, in the consolidated statement of operations and comprehensive income. |
Note_8_Loan_Payable
Note 8 - Loan Payable | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. 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, 2014, the 2012 DLR Loan and the DLRR Loan were fully repaid. Both of these financing arrangements remain available to fund future operations of the Company, with no set expiry date. | |
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, 2014, the Company held contracts in the amount of $26.2 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, 2014, 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, 2014, the Company was in compliance with these covenants. As of, and for the year ended, December 31, 2013, the Company was in compliance with these covenants. |
Note_9_Income_Taxes
Note 9 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | 9. 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 (deferred tax liabilities have been netted against deferred tax assets when there is a right to offset): | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Income for the year before provision for income taxes | $ | 9,428,325 | $ | 5,799,803 | $ | 6,428,298 | |||||||
Computed expected tax expense | $ | 3,205,631 | $ | 1,971,933 | $ | 2,185,621 | |||||||
Increase (reduction) in income tax expense resulting from: | |||||||||||||
State income taxes | 64,056 | 14,500 | 16,071 | ||||||||||
Permanent differences, including foreign exchange | 192,260 | 13,700 | 21,728 | ||||||||||
Investment tax credits recovered | — | (115,455 | ) | (106,941 | ) | ||||||||
Other, including alternative minimum tax and adjustments to opening deferred tax assets | (407,718 | ) | (265,339 | ) | (112,323 | ) | |||||||
Provision for (recovery of) income taxes | $ | 3,054,229 | $ | 1,619,339 | $ | 2,004,156 | |||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2014 and 2013 are presented below: | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 5,294,767 | $ | 5,300,868 | |||||||||
Losses | — | 290,714 | |||||||||||
Foreign tax credit | 3,200,961 | 1,914,090 | |||||||||||
Amortization | (414,345 | ) | 69,169 | ||||||||||
Accruals, including foreign exchange and other | (702,764 | ) | (1,123,278 | ) | |||||||||
Deferred tax assets | $ | 7,378,619 | $ | 6,451,563 | |||||||||
Deferred income tax asset, current portion | $ | 2,498,196 | $ | 1,081,526 | |||||||||
Deferred income tax asset, long-term portion | 4,880,423 | 5,370,037 | |||||||||||
$ | 7,378,619 | $ | 6,451,563 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Limited life intangible assets | $ | (208,620 | ) | $ | (301,500 | ) | |||||||
Indefinite life intangible assets | (4,578,731 | ) | (4,840,000 | ) | |||||||||
Total deferred tax liability, long-term portion | $ | (4,787,351 | ) | $ | (5,141,500 | ) | |||||||
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. | |||||||||||||
The Company had approximately $0.1 million of total gross unrecognized tax benefit as of December 31, 2014 and as of December 31, 2013, 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, 2014 and December 31, 2013. | |||||||||||||
Management 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: | |||||||||||||
Total Gross Unrecognized Tax Benefits | 31-Dec-14 | 31-Dec-13 | |||||||||||
Balance, beginning of year | $ | 117,000 | $ | 382,000 | |||||||||
Decrease in uncertain tax benefits of prior years | — | (265,000 | ) | ||||||||||
Balance, end of year | $ | 117,000 | $ | 117,000 | |||||||||
Note_10_Common_Shares
Note 10 - Common Shares | 12 Months Ended | ||
Dec. 31, 2014 | |||
Stockholders' Equity Note [Abstract] | |||
Stockholders' Equity Note Disclosure [Text Block] | 10. Common shares: | ||
The Company’s authorized common share capital is 250 million shares of common stock without nominal or par value. On December 31, 2014, there were 11,329,732 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 December 8, 2014 the Company announced that it would enter into a modified Dutch Auction Tender offer. Subsequent to December 31, 2014 the auction was successfully concluded (see note 16). | |||
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. | |||
(b) | Normal Course Issuer Bids: | ||
On March 5, 2014, the Company announced a stock buyback program. Under this buyback program, the Company may repurchase up to $20 million of the Company's common stock over the 12-month period that commenced on March 4, 2014. The Company repurchased 6,092 shares under this program during the three months ended March 31, 2014 for a total of $82,286. The Company repurchased 73,300 shares under this program during the three months ended September 30, 2014 for a total of $1.1 million. The Company repurchased 79,392 shares under this program during the year ended December 31, 2014 for a total of $1.2 million. | |||
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. |
Note_11_Stock_Option_Plans
Note 11 - Stock Option Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. 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, 2014, 2013 and 2012 was estimated using the following weighted average assumptions: | ||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Volatility | 56.1 | % | 69.4 | % | 52.1 | % | ||||||||||||||||||||||||||||
Risk-free interest rate | 1.3 | % | 1.1 | % | 0.5 | % | ||||||||||||||||||||||||||||
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 | $ | 7.02 | $ | 4.52 | $ | 2.24 | ||||||||||||||||||||||||||||
Details of stock option transactions are as follows: | ||||||||||||||||||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
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 | 1,407,639 | $ | 3.8 | 2,148,170 | $ | 2.56 | 2,186,511 | $ | 2.28 | |||||||||||||||||||||||||
Granted | 102,475 | 15.78 | 180,375 | 8.36 | 194,750 | 5.44 | ||||||||||||||||||||||||||||
Exercised | (502,061 | ) | 2.95 | (890,034 | ) | 1.8 | (191,585 | ) | 2.2 | |||||||||||||||||||||||||
Forfeited | (28,366 | ) | 6.6 | (29,684 | ) | 4.88 | (40,751 | ) | 3.2 | |||||||||||||||||||||||||
Expired | (3,625 | ) | 3.36 | (1,188 | ) | 1.44 | (755 | ) | 1.76 | |||||||||||||||||||||||||
Outstanding, end of year | 976,062 | $ | 5.41 | 1,407,639 | $ | 3.8 | 2,148,170 | $ | 2.56 | |||||||||||||||||||||||||
Options exercisable, end of year | 725,392 | $ | 4.03 | 1,045,475 | $ | 3.14 | 1,772,723 | $ | 2.28 | |||||||||||||||||||||||||
The stock options expire at various dates through 2021. | ||||||||||||||||||||||||||||||||||
As of December 31, 2014, 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 | |||||||||||||||||||||||||||||||||
$ | 2.4 | - | $ | 2.4 | 113,250 | $ | 2.4 | 0.4 | $ | 1,926,383 | 113,250 | $ | 2.4 | $ | 1,926,383 | |||||||||||||||||||
$ | 2.48 | - | $ | 2.8 | 318,451 | $ | 2.76 | 2.1 | 5,301,971 | 318,451 | $ | 2.76 | 5,301,971 | |||||||||||||||||||||
$ | 2.92 | - | $ | 3.76 | 136,973 | $ | 3.01 | 2.9 | 2,246,604 | 112,866 | $ | 3.03 | 1,849,080 | |||||||||||||||||||||
$ | 4.2 | - | $ | 15.93 | 407,388 | $ | 9.13 | 4.9 | 4,188,903 | 180,825 | $ | 7.91 | 2,078,742 | |||||||||||||||||||||
976,062 | $ | 5.41 | $ | 13,663,861 | 725,392 | $ | 4.03 | $ | 11,156,176 | |||||||||||||||||||||||||
Total unrecognized compensation cost relating to unvested stock options at December 31, 2014, prior to the consideration of expected forfeitures, is approximately $1.0 million and is expected to be recognized over a weighted average period of 2.4 years. | ||||||||||||||||||||||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $0.9 million, $1.1 million and $0.3 million, respectively. Cash received from the exercise of stock options during the years ended December 31, 2014, 2013 and 2012 was $1.5 million, $1.5 million and $0.4 million respectively. | ||||||||||||||||||||||||||||||||||
The Company recorded stock-based compensation amounting to $0.5 million, $0.4 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012 respectively. Stock-based compensation has been included in operating expenses as follows: | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Network expenses | $ | 30,938 | $ | 31,664 | $ | 24,480 | ||||||||||||||||||||||||||||
Sales and marketing | 143,514 | 129,302 | 92,168 | |||||||||||||||||||||||||||||||
Technical operations and development | 85,904 | 78,800 | 59,141 | |||||||||||||||||||||||||||||||
General and administrative | 282,382 | 191,137 | 184,910 | |||||||||||||||||||||||||||||||
$ | 542,738 | $ | 430,903 | $ | 360,699 | |||||||||||||||||||||||||||||
Note_12_Foreign_Exchange_Gain
Note 12 - Foreign Exchange Gain | 12 Months Ended |
Dec. 31, 2014 | |
Foreign Currency [Abstract] | |
Foreign Currency Disclosure [Text Block] | 12. Foreign exchange gain: |
A foreign exchange gain amounting to $0.7 million has been recorded in general and administrative expenses during the year ended December 31, 2014 (“Fiscal 2014”). 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 loss amounting to $8,000 has been recorded in general and administrative expenses during the year ended December 31, 2012 (“Fiscal 2012”). |
Note_13_Other_Income_Net
Note 13 - Other Income, Net | 12 Months Ended |
Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 13. Other income, net: |
In March 2012, the Company received an amount of $0.5 million on the sale of certain intangible assets with no book value. |
Note_14_Earnings_Per_Common_Sh
Note 14 - Earnings Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share [Text Block] | 14. 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, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted earnings per common share: | |||||||||||||
Net income for the year | $ | 6,374,096 | $ | 4,180,464 | $ | 4,424,142 | |||||||
Denominator for basic and diluted earnings per common share: | |||||||||||||
Basic weighted average number of common shares outstanding | 11,220,874 | 10,468,250 | 11,458,216 | ||||||||||
Effect of stock options | 509,524 | 813,159 | 825,520 | ||||||||||
Diluted weighted average number of shares outstanding | 11,730,398 | 11,281,409 | 12,283,736 | ||||||||||
Basic earnings per common share | $ | 0.57 | $ | 0.4 | $ | 0.39 | |||||||
Diluted earnings per common share | $ | 0.54 | $ | 0.37 | $ | 0.36 | |||||||
Options to purchase 95,762 common shares were outstanding during 2014 (2013: 136,812; 2012: 188,797) 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 2014. |
Note_15_Commitments_and_Contin
Note 15 - Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies Disclosure [Text Block] | 15. Commitments and contingencies: | ||||||||||||
(a) The Company has several non-cancelable lease and purchase obligations primarily for general office facilities, service contracts for mobile telephone services and equipment that expire over the next ten years. Future minimum payments under these agreements are as follows: | |||||||||||||
Contractual Obligations for the year ending December 31, | Contractual Lease Obligations | Purchase Obligations (1) | Total Obligations | ||||||||||
2015 | $ | 659,000 | $ | 3,951,000 | $ | 4,610,000 | |||||||
2016 | 608,000 | 8,051,000 | 8,659,000 | ||||||||||
2017 | 642,000 | 12,688,000 | 13,330,000 | ||||||||||
2018 | 642,000 | — | 642,000 | ||||||||||
2019 | 642,000 | — | 642,000 | ||||||||||
Thereafter | 1,731,000 | — | 1,731,000 | ||||||||||
$ | 4,924,000 | $ | 24,690,000 | $ | 29,614,000 | ||||||||
Rental expense under operating lease agreements was $0.9 million, $0.8 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, 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, 2014 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material effect on the Company’s financial position. |
Note_16_Subsequent_Events
Note 16 - Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 16. Subsequent events: |
(a) On January 8, 2015, the Company announced that it successfully concluded a modified “Dutch auction tender offer” that was previously announced on December 8, 2014. Under the terms of the offer, the Company repurchased an aggregate of 193,907 shares of its common stock at a purchase price of $18.50 per share, for a total of $3,587,280, excluding transaction costs of approximately $60,000. The purchase price and all transaction costs were funded from available cash. 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 7, 2015, the Company had 11,135,825 shares issued and outstanding. | |
(b) In January 2015, the Company borrowed $3.5 million under its Amended Credit Facility in order to fund the acquisition of a controlling ownership in Ting Virginia, LLC (see note 16(d)). This borrowing is subject to the terms and conditions described in note 8 to the Consolidated Financial Statements. See item (d) below. | |
(c) On February 11, 2015, the Board of Directors approved a stock buyback program to repurchase up to $20 million of its common stock in the open market and privately negotiated transactions. Purchases will be made exclusively through the facilities of the NASDAQ Capital Market. The stock buyback program commenced on February 16, 2015 and will terminate on or before February 15, 2016. As of March 6, 2015, the Company has spent a total of $2.0 million to repurchase 108,605 shares under this stock buyback program, and therefore, the remaining repurchase authorization is $18.0 million. | |
All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury. | |
(d) On February 24, 2015, Ting Fiber, Inc., one of the Company’s wholly owned subsidiaries, acquired a controlling ownership interest in the newly formed Ting Virginia, LLC and its acquired subsidiaries, Blue Ridge Websoft LLC (doing business as Blue Ridge InternetWorks), Fiber Roads, LLC and Navigator Network Services, LLC (the BRI Group) for a consideration of approximately $3.6 million. Ting Virginia, LLC is an independent Internet service provider in Charlottesville, Virginia, doing business primarily as Blue Ridge InternetWorks. The BRI Group provides high speed internet access, Internet hosting and network consulting services to over 3,000 customers in central Virginia. Tucows will satisfy the purchase price through an advance under its 2012 DLR Loan facility. | |
(e) In February 2015, the Company waived our rights under the proposed joint venture to operate the .online registry and instead entered into a Joint Marketing agreement with our venture partners under which our original capital contributions have been returned and a set of go-forward marketing arrangements have been created instead. These marketing arrangements have resulted in a positive financial contribution for us, which will be recognized once all the terms of the contract have been satisfied, commencing in the three months ending March 31, 2015. |
Note_17_Segment_Reporting
Note 17 - Segment Reporting | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting Disclosure [Text Block] | 17. Segment Reporting: | ||||||||||||
(a) The Company is 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 profit 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, impairment of indefinite life intangible assets, 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, 2014 | Domain | Network Access Services | Consolidated Totals | ||||||||||
Name | |||||||||||||
Services | |||||||||||||
Net Revenues | $ | 111,780,102 | 35,887,005 | 147,667,107 | |||||||||
Cost of Revenues | 85,244,527 | 21,870,780 | 107,115,307 | ||||||||||
Gross Profit | 26,535,575 | 14,016,225 | 40,551,800 | ||||||||||
Expenses: | |||||||||||||
Sales and marketing | 15,394,065 | ||||||||||||
Technical operations and development | 4,305,715 | ||||||||||||
General and administrative | 8,505,920 | ||||||||||||
Depreciation of property and equipment | 226,432 | ||||||||||||
Amortization of intangibles | 596,620 | ||||||||||||
Impairment of indefinite life intangible assets | 577,145 | ||||||||||||
Loss on currency forward contracts | 1,310,848 | ||||||||||||
Income from operations | 9,635,055 | ||||||||||||
Other expenses, net | (206,730 | ) | |||||||||||
Income before provision for income taxes | 9,428,325 | ||||||||||||
Year Ended December 31, 2013 | Domain | Network Access Services | Consolidated Totals | ||||||||||
Name | |||||||||||||
Services | |||||||||||||
Net Revenues | $ | 113,404,667 | 16,530,237 | 129,934,904 | |||||||||
Cost of Revenues | 85,886,930 | 12,621,093 | 98,508,023 | ||||||||||
Gross Profit | 27,517,737 | 3,909,144 | 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 | 84,388,713 | 4,129,020 | 88,517,733 | ||||||||||
Gross Profit | 26,372,504 | (163,336 | ) | 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 | ||||||||||||
(b) The following is a summary of the Company’s revenue earned from each significant revenue stream: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Wholesale | |||||||||||||
Domain Services | $ | 86,640,949 | $ | 87,294,173 | $ | 87,434,450 | |||||||
Value Added Services | 9,654,734 | 10,271,219 | 10,586,460 | ||||||||||
Total Wholesale | 96,295,683 | 97,565,392 | 98,020,910 | ||||||||||
Retail | 10,417,746 | 8,360,035 | 6,775,160 | ||||||||||
Portfolio | 5,066,673 | 7,479,240 | 5,965,147 | ||||||||||
111,780,102 | 113,404,667 | 110,761,217 | |||||||||||
Access | 35,887,005 | 16,530,237 | 3,965,684 | ||||||||||
$ | 147,667,107 | $ | 129,934,904 | $ | 114,726,901 | ||||||||
During the years ended December 31, 2014, 2013 and 2012, no customer accounted for more than 10% of total revenue. As at December 31, 2014, 2013 and 2012, no customers accounted for more than 10% 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Wholesale | |||||||||||||
Domain Services | $ | 72,353,061 | $ | 73,468,824 | $ | 73,168,196 | |||||||
Value Added Services | 2,211,085 | 2,115,167 | 2,032,328 | ||||||||||
Total Wholesale | 74,564,146 | 75,583,991 | 75,200,524 | ||||||||||
Retail | 4,539,439 | 3,521,023 | 2,675,843 | ||||||||||
Portfolio | 886,637 | 1,234,214 | 832,008 | ||||||||||
79,990,222 | 80,339,228 | 78,708,375 | |||||||||||
Access | 21,870,780 | 12,621,093 | 4,129,020 | ||||||||||
101,861,002 | 92,960,321 | 82,837,395 | |||||||||||
Network, other costs | 4,554,635 | 4,835,939 | 4,925,058 | ||||||||||
Network, depreciation and amortization costs | 699,670 | 711,763 | 755,280 | ||||||||||
$ | 107,115,307 | $ | 98,508,023 | $ | 88,517,733 | ||||||||
(d) The following is a summary of the Company’s property and equipment by geographic region: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Canada | $ | 1,131,883 | $ | 1,292,425 | |||||||||
United States | 379,891 | 453,223 | |||||||||||
Germany | 98,013 | 12,188 | |||||||||||
$ | 1,609,787 | $ | 1,757,836 | ||||||||||
(e) The following is a summary of the Company’s amortizable intangible assets by geographic region: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Canada | $ | — | $ | 271,300 | |||||||||
Germany | 735,730 | 1,061,050 | |||||||||||
$ | 735,730 | $ | 1,332,350 | ||||||||||
(f) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Canada | $ | 7,378,619 | $ | 6,451,563 | |||||||||
$ | 7,378,619 | $ | 6,451,563 | ||||||||||
Note_18_Valuation_and_Qualifyi
Note 18 - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 18. 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, excluding provision for credit notes | |||||||||||||||||
2014 | $ | 91,226 | $ | 34,540 | $ | — | $ | 125,766 | |||||||||
2013 | $ | 73,970 | $ | 17,256 | $ | — | $ | 91,226 | |||||||||
2012 | $ | 57,415 | $ | 16,555 | $ | — | $ | 73,970 | |||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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 assumptions 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. Cash and cash equivalents are stated at cost which approximates fair value. | |||||
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, the Company would 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 Other Intangible assets | ||||
Goodwill | |||||
Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not amortize goodwill. Impairment testing for goodwill is performed annually in the fourth quarter of each year or more frequently if impairment indicators are present. Impairment testing is performed at the operating segment level. The Company has determined that it has two operating segments, Domain Services and Network Access Services. | |||||
The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not that goodwill has been impaired. If, after this qualitative assessment, the Company determines that it is not more likely than not that goodwill has been impaired, then no further quantitative testing is necessary. In performance of the qualitative test, an evaluation is made of the impact of various factors to the expected future cash flows attributable to its operating segments and to the assumed discount rate which would be used to present value those cash flows. Consideration is given to factors such as, macro-economic and industry and market conditions including the capital markets and the competitive environment amongst others. In the event that the qualitative tests indicate that there may be impairment, quantitative impairment testing is required. | |||||
In performance of the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level 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 for its operating segment. 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. | |||||
Intangibles Assets not subject to amortization | |||||
Intangible assets not subject to amortization consist of surname domain names and direct navigation domain names. While the domain names are renewed annually, through payment of a renewal fee to the applicable registry, the Company has the exclusive right to renew these names at its option. Renewals occur routinely and at a nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, economic or other factors that limit the useful life of these domain names on an aggregate basis and accordingly treat the portfolio of domain names as indefinite life intangible assets. The Company reevaluates the useful life determination for domain names in the portfolio each year to determine whether events and circumstances continue to support an indefinite useful life. | |||||
The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names on an aggregate basis in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of the portfolio of domain names was less than the carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, levels of advertising revenue generated by the names in the portfolio, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. The fair value of the intangibles in the operating segment is determined using an income approach consistent with that utilized for goodwill impairment testing outlined above. Where the fair value of the aggregated portfolio of domain names is less than the aggregated carrying amount of the portfolio, impairment is recognized. | |||||
Intangible Assets subject to amortization | |||||
Intangible assets subject to amortization, consist of technology, brand and customer relationships and are amortized on a straight line basis over their estimated useful lives as follows: | |||||
Technology (years) | 2 – 7 | ||||
Brand (years) | 7 | ||||
Customer relationships (years) | 4 – 7 | ||||
The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization 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 2014 and 2013. | |||||
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. 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 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 revenue includes revenue derived from cost-per action advertising links the Company displays on third party websites who provide syndicated pay-per-click advertising on OpenSRS Domain Expiry Stream domains and the Company’s Portfolio Domains. In addition, the Company uses third party partners to derive pay-per-click advertising on the Tucow.com website. Advertising revenue is recognized on a monthly basis based on the number of cost-per-action services that were provided in the month. | |||||
Impression based advertising revenue 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. | |||||
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. | |||||
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments | ||||
During Fiscal 2014 and Fiscal 2013, the Company used derivative financial instruments to manage foreign currency exchange risk. The Company accounts for these instruments in accordance with ASC Topic 815, “Derivatives and Hedging” (ASC 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. ASC 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). The Company 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. The valuation technique used to measure the fair values of the derivative instruments is a discounted cash flow technique, with all significant inputs derived from or corroborated by observable market data, as no quoted market prices exist for the derivative instruments. This discounted cash flow technique uses observable market inputs, such as foreign currency spot and forward rates. | |||||
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, 2014, 2013 and 2012, 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, 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. | |||||
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurement | ||||
Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: | |||||
Level 1—Quoted prices in active markets for identical assets or liabilities | |||||
Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities | |||||
Level 3—No observable pricing inputs in the market | |||||
Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. | |||||
The fair value of cash and cash equivalents, 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 derivative financial instruments 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. | |||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Adopted | ||||
On January 1, 2014, the Company adopted the 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”). The adoption of ASU 2013-11 was made on a prospective basis and did not have a significant impact on our consolidated financial statements. | |||||
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recent Accounting Pronouncements Not Yet Adopted | ||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU 2014-08”), Presentation of Financial Statements and Property, Plant and Equipment: Discontinued Operations and Disclosures of Disposals of components of an Entity. ASU 2014-08, which is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014, changes the criteria for reporting a discontinued operation. Under the new guidance a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. For disposals of individually significant components that do not qualify for discontinued operations presentation, an entity must disclose pre-tax profit or loss of the disposed component. | |||||
The Company will adopt ASU 2014-8 on January 1, 2015. The adoption of the accounting standard update is not expected to have a material impact on the consolidated financial statements. | |||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The effective date of ASU 2014-09 is fiscal years beginning after December 15, 2016, and interim periods within those years, with earlier adoption prohibited. Companies can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company has not yet selected a transition method nor has it determined the effect of ASU 2014-09 to its consolidated financial statements. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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_Other_Assets_Tables
Note 3 - Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Other Assets [Table Text Block] | Year ended | Year ended | |||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Amounts in escrow advanced to acquire a controlling ownership interest in Ting Virginia, LLC (see note 16) | $ | 3,125,000 | $ | — | |||||
Amounts advanced to the joint venture with Radix FZC and NameCheap Inc. which was terminated in February 2015 (see note 16) | 5,074,000 | — | |||||||
$ | 8,199,000 | $ | — |
Note_4_Property_and_equipment_
Note 4 - Property and equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment [Table Text Block] | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Computer equipment | $ | 5,902,905 | $ | 6,937,495 | |||||||||
Computer software | 1,170,866 | 1,175,664 | |||||||||||
Furniture and equipment | 757,118 | 711,346 | |||||||||||
7,830,889 | 8,824,505 | ||||||||||||
Less: | |||||||||||||
Accumulated depreciation | 6,221,102 | 7,066,669 | |||||||||||
$ | 1,609,787 | $ | 1,757,836 | ||||||||||
Schedule of Depreciation [Table Text Block] | Year ended | Year ended | Year ended | ||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation of property and equipment | $ | 926,102 | $ | 843,420 | $ | 802,060 |
Note_5_Goodwill_and_Other_Inta1
Note 5 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Boardtown | Hosted | Innerwise | Mailbank.com | EPAG | Total | |||||||||||||||||||
Corporation | Messaging | Inc. | Inc. | Domainservices | |||||||||||||||||||||
Assets of | GmbH | ||||||||||||||||||||||||
Critical Path | |||||||||||||||||||||||||
Balances, December 31, 2014 | $ | 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 | |||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | Surname | Direct | Technology | Brand | Customer | ||||||||||||||||||||
domain names | navigation | relationships | |||||||||||||||||||||||
domain names | |||||||||||||||||||||||||
Amortization period | indefinite life | indefinite life | 7-Feb | 7 | 7-Apr | Total | |||||||||||||||||||
years | years | years | |||||||||||||||||||||||
Balances, December 31, 2012 | $ | 12,110,017 | $ | 2,013,374 | $ | 83,790 | $ | 398,290 | $ | 1,810,180 | $ | 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 | 12,096,712 | 1,974,166 | — | 224,650 | 1,107,700 | 15,403,228 | |||||||||||||||||||
Additions to/(disposals from) domain portfolio, net | (6,490 | ) | (20,388 | ) | — | — | — | (26,878 | ) | ||||||||||||||||
Impairment of indefinite life intangible assets | (564,598 | ) | (12,547 | ) | — | — | — | (577,145 | ) | ||||||||||||||||
Amortization expense | — | — | — | (114,140 | ) | (482,480 | ) | (596,620 | ) | ||||||||||||||||
Balances, December 31, 2014 | $ | 11,525,624 | $ | 1,941,231 | $ | — | $ | 110,510 | $ | 625,220 | $ | 14,202,585 | |||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2015 | 205,320 | ||||||||||||||||||||||||
2016 | 205,320 | ||||||||||||||||||||||||
2017 | 205,320 | ||||||||||||||||||||||||
2018 | 119,770 | ||||||||||||||||||||||||
Total | $ | 735,730 |
Note_6_Fair_Value_Measurement_
Note 6 - Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | 31-Dec-14 | ||||||||||||||||
Fair Value Measurement Using | Liabilities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument liability | $ | — | $ | 1,115,805 | $ | — | $ | 1,115,805 | |||||||||
Total Liabilities | $ | — | $ | 1,115,805 | $ | — | $ | 1,115,805 | |||||||||
31-Dec-13 | |||||||||||||||||
Fair Value Measurement Using | Liabilities at | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||
Derivative instrument liability | $ | — | $ | 491,098 | $ | — | $ | 491,098 | |||||||||
Total Liabilities | $ | — | $ | 491,098 | $ | — | $ | 491,098 |
Note_7_Derivative_Instruments_1
Note 7 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives | Balance Sheet | Year ended | Year ended | |||||||||||||||||
Location | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Asset | Asset | ||||||||||||||||||||
(Liability) | (Liability) | ||||||||||||||||||||
Foreign currency forward contracts designated as cash flow hedges | Derivative instruments | $ | (946,676 | ) | $ | (372,593 | ) | ||||||||||||||
Foreign currency forward contracts not designated as cash flow hedges | Derivative instruments | $ | (169,129 | ) | $ | (118,505 | ) | ||||||||||||||
Total foreign currency forward contracts | Derivative instruments | $ | (1,115,805 | ) | $ | (491,098 | ) | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gains and losses on cash flow hedges | Tax impact | Total AOCI | ||||||||||||||||||
Opening AOCI balance – December 31, 2013 | $ | (372,593 | ) | $ | 127,612 | $ | (244,981 | ) | |||||||||||||
Other comprehensive income (loss) before reclassifications | (1,527,171 | ) | 523,056 | (1,004,115 | ) | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income | 953,088 | (326,433 | ) | 626,655 | |||||||||||||||||
Other comprehensive income (loss) for the year ended December 31, 2014 | (574,083 | ) | 196,623 | (377,460 | ) | ||||||||||||||||
Ending AOCI balance – December 31, 2014 | $ | (946,676 | ) | $ | 324,235 | $ | (622,441 | ) | |||||||||||||
Gains and losses on cash flow hedges | Tax impact | Total AOCI | |||||||||||||||||||
Opening AOCI balance – December 31, 2012 | $ | 67,079 | $ | (22,975 | ) | $ | 44,104 | ||||||||||||||
Other comprehensive income (loss) before reclassifications | (758,683 | ) | 287,904 | (470,779 | ) | ||||||||||||||||
Amount reclassified from accumulated other comprehensive income | 319,011 | (137,317 | ) | 181,694 | |||||||||||||||||
Other comprehensive income (loss) for the year ended December 31, 2013 | (439,672 | ) | 150,587 | (289,085 | ) | ||||||||||||||||
Ending AOCI balance – December 31, 2013 | $ | (372,593 | ) | $ | 127,612 | $ | (244,981 | ) | |||||||||||||
Gains and losses on cash flow hedges | Tax impact | Total AOCI | |||||||||||||||||||
Opening AOCI balance – December 31, 2011 | $ | — | $ | — | $ | — | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 67,079 | (22,975 | ) | 44,104 | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income | — | — | — | ||||||||||||||||||
Other comprehensive income (loss) for the year ended December 31, 2012 | 67,079 | (22,975 | ) | 44,104 | |||||||||||||||||
Ending AOCI balance – December 31, 2012 | $ | 67,079 | $ | (22,975 | ) | $ | 44,104 | ||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivatives in Cash Flow | Amount of Gain or (Loss) Recognized in OCI,net of tax, 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,net of tax, (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 | |||||||||||||||
Hedging Relationship | |||||||||||||||||||||
Operating expenses | $ | (463,160 | ) | ||||||||||||||||||
Foreign currency forward contracts – year ended December 31, 2014 | $ | (377,460 | ) | Cost of revenues | (163,495 | ) | Cost of revenues | (13,535 | ) | ||||||||||||
Operating expenses | (151,551 | ) | |||||||||||||||||||
Foreign currency forward contracts – year ended December 31, 2013 | (289,085 | ) | Cost of revenues | (30,143 | ) | — | — |
Note_9_Income_Taxes_Tables
Note 9 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Income for the year before provision for income taxes | $ | 9,428,325 | $ | 5,799,803 | $ | 6,428,298 | |||||||
Computed expected tax expense | $ | 3,205,631 | $ | 1,971,933 | $ | 2,185,621 | |||||||
Increase (reduction) in income tax expense resulting from: | |||||||||||||
State income taxes | 64,056 | 14,500 | 16,071 | ||||||||||
Permanent differences, including foreign exchange | 192,260 | 13,700 | 21,728 | ||||||||||
Investment tax credits recovered | — | (115,455 | ) | (106,941 | ) | ||||||||
Other, including alternative minimum tax and adjustments to opening deferred tax assets | (407,718 | ) | (265,339 | ) | (112,323 | ) | |||||||
Provision for (recovery of) income taxes | $ | 3,054,229 | $ | 1,619,339 | $ | 2,004,156 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 5,294,767 | $ | 5,300,868 | |||||||||
Losses | — | 290,714 | |||||||||||
Foreign tax credit | 3,200,961 | 1,914,090 | |||||||||||
Amortization | (414,345 | ) | 69,169 | ||||||||||
Accruals, including foreign exchange and other | (702,764 | ) | (1,123,278 | ) | |||||||||
Deferred tax assets | $ | 7,378,619 | $ | 6,451,563 | |||||||||
Deferred income tax asset, current portion | $ | 2,498,196 | $ | 1,081,526 | |||||||||
Deferred income tax asset, long-term portion | 4,880,423 | 5,370,037 | |||||||||||
$ | 7,378,619 | $ | 6,451,563 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Limited life intangible assets | $ | (208,620 | ) | $ | (301,500 | ) | |||||||
Indefinite life intangible assets | (4,578,731 | ) | (4,840,000 | ) | |||||||||
Total deferred tax liability, long-term portion | $ | (4,787,351 | ) | $ | (5,141,500 | ) | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Total Gross Unrecognized Tax Benefits | 31-Dec-14 | 31-Dec-13 | ||||||||||
Balance, beginning of year | $ | 117,000 | $ | 382,000 | |||||||||
Decrease in uncertain tax benefits of prior years | — | (265,000 | ) | ||||||||||
Balance, end of year | $ | 117,000 | $ | 117,000 |
Note_11_Stock_Option_Plans_Tab
Note 11 - Stock Option Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Volatility | 56.1 | % | 69.4 | % | 52.1 | % | ||||||||||||||||||||||||||||
Risk-free interest rate | 1.3 | % | 1.1 | % | 0.5 | % | ||||||||||||||||||||||||||||
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 | $ | 7.02 | $ | 4.52 | $ | 2.24 | ||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Year ended | Year ended | Year ended | |||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
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 | 1,407,639 | $ | 3.8 | 2,148,170 | $ | 2.56 | 2,186,511 | $ | 2.28 | |||||||||||||||||||||||||
Granted | 102,475 | 15.78 | 180,375 | 8.36 | 194,750 | 5.44 | ||||||||||||||||||||||||||||
Exercised | (502,061 | ) | 2.95 | (890,034 | ) | 1.8 | (191,585 | ) | 2.2 | |||||||||||||||||||||||||
Forfeited | (28,366 | ) | 6.6 | (29,684 | ) | 4.88 | (40,751 | ) | 3.2 | |||||||||||||||||||||||||
Expired | (3,625 | ) | 3.36 | (1,188 | ) | 1.44 | (755 | ) | 1.76 | |||||||||||||||||||||||||
Outstanding, end of year | 976,062 | $ | 5.41 | 1,407,639 | $ | 3.8 | 2,148,170 | $ | 2.56 | |||||||||||||||||||||||||
Options exercisable, end of year | 725,392 | $ | 4.03 | 1,045,475 | $ | 3.14 | 1,772,723 | $ | 2.28 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
$ | 2.4 | - | $ | 2.4 | 113,250 | $ | 2.4 | 0.4 | $ | 1,926,383 | 113,250 | $ | 2.4 | $ | 1,926,383 | |||||||||||||||||||
$ | 2.48 | - | $ | 2.8 | 318,451 | $ | 2.76 | 2.1 | 5,301,971 | 318,451 | $ | 2.76 | 5,301,971 | |||||||||||||||||||||
$ | 2.92 | - | $ | 3.76 | 136,973 | $ | 3.01 | 2.9 | 2,246,604 | 112,866 | $ | 3.03 | 1,849,080 | |||||||||||||||||||||
$ | 4.2 | - | $ | 15.93 | 407,388 | $ | 9.13 | 4.9 | 4,188,903 | 180,825 | $ | 7.91 | 2,078,742 | |||||||||||||||||||||
976,062 | $ | 5.41 | $ | 13,663,861 | 725,392 | $ | 4.03 | $ | 11,156,176 | |||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||
Network expenses | $ | 30,938 | $ | 31,664 | $ | 24,480 | ||||||||||||||||||||||||||||
Sales and marketing | 143,514 | 129,302 | 92,168 | |||||||||||||||||||||||||||||||
Technical operations and development | 85,904 | 78,800 | 59,141 | |||||||||||||||||||||||||||||||
General and administrative | 282,382 | 191,137 | 184,910 | |||||||||||||||||||||||||||||||
$ | 542,738 | $ | 430,903 | $ | 360,699 |
Note_14_Earnings_Per_Common_Sh1
Note 14 - Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted earnings per common share: | |||||||||||||
Net income for the year | $ | 6,374,096 | $ | 4,180,464 | $ | 4,424,142 | |||||||
Denominator for basic and diluted earnings per common share: | |||||||||||||
Basic weighted average number of common shares outstanding | 11,220,874 | 10,468,250 | 11,458,216 | ||||||||||
Effect of stock options | 509,524 | 813,159 | 825,520 | ||||||||||
Diluted weighted average number of shares outstanding | 11,730,398 | 11,281,409 | 12,283,736 | ||||||||||
Basic earnings per common share | $ | 0.57 | $ | 0.4 | $ | 0.39 | |||||||
Diluted earnings per common share | $ | 0.54 | $ | 0.37 | $ | 0.36 |
Note_15_Commitments_and_Contin1
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Contractual Obligations for the year ending December 31, | Contractual Lease Obligations | Purchase Obligations (1) | Total Obligations | |||||||||
2015 | $ | 659,000 | $ | 3,951,000 | $ | 4,610,000 | |||||||
2016 | 608,000 | 8,051,000 | 8,659,000 | ||||||||||
2017 | 642,000 | 12,688,000 | 13,330,000 | ||||||||||
2018 | 642,000 | — | 642,000 | ||||||||||
2019 | 642,000 | — | 642,000 | ||||||||||
Thereafter | 1,731,000 | — | 1,731,000 | ||||||||||
$ | 4,924,000 | $ | 24,690,000 | $ | 29,614,000 |
Note_17_Segment_Reporting_Tabl
Note 17 - Segment Reporting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Condensed Income Statement [Table Text Block] | Year Ended December 31, 2014 | Domain | Network Access Services | Consolidated Totals | |||||||||
Name | |||||||||||||
Services | |||||||||||||
Net Revenues | $ | 111,780,102 | 35,887,005 | 147,667,107 | |||||||||
Cost of Revenues | 85,244,527 | 21,870,780 | 107,115,307 | ||||||||||
Gross Profit | 26,535,575 | 14,016,225 | 40,551,800 | ||||||||||
Expenses: | |||||||||||||
Sales and marketing | 15,394,065 | ||||||||||||
Technical operations and development | 4,305,715 | ||||||||||||
General and administrative | 8,505,920 | ||||||||||||
Depreciation of property and equipment | 226,432 | ||||||||||||
Amortization of intangibles | 596,620 | ||||||||||||
Impairment of indefinite life intangible assets | 577,145 | ||||||||||||
Loss on currency forward contracts | 1,310,848 | ||||||||||||
Income from operations | 9,635,055 | ||||||||||||
Other expenses, net | (206,730 | ) | |||||||||||
Income before provision for income taxes | 9,428,325 | ||||||||||||
Year Ended December 31, 2013 | Domain | Network Access Services | Consolidated Totals | ||||||||||
Name | |||||||||||||
Services | |||||||||||||
Net Revenues | $ | 113,404,667 | 16,530,237 | 129,934,904 | |||||||||
Cost of Revenues | 85,886,930 | 12,621,093 | 98,508,023 | ||||||||||
Gross Profit | 27,517,737 | 3,909,144 | 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 | 84,388,713 | 4,129,020 | 88,517,733 | ||||||||||
Gross Profit | 26,372,504 | (163,336 | ) | 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, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Wholesale | |||||||||||||
Domain Services | $ | 86,640,949 | $ | 87,294,173 | $ | 87,434,450 | |||||||
Value Added Services | 9,654,734 | 10,271,219 | 10,586,460 | ||||||||||
Total Wholesale | 96,295,683 | 97,565,392 | 98,020,910 | ||||||||||
Retail | 10,417,746 | 8,360,035 | 6,775,160 | ||||||||||
Portfolio | 5,066,673 | 7,479,240 | 5,965,147 | ||||||||||
111,780,102 | 113,404,667 | 110,761,217 | |||||||||||
Access | 35,887,005 | 16,530,237 | 3,965,684 | ||||||||||
$ | 147,667,107 | $ | 129,934,904 | $ | 114,726,901 | ||||||||
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Wholesale | |||||||||||||
Domain Services | $ | 72,353,061 | $ | 73,468,824 | $ | 73,168,196 | |||||||
Value Added Services | 2,211,085 | 2,115,167 | 2,032,328 | ||||||||||
Total Wholesale | 74,564,146 | 75,583,991 | 75,200,524 | ||||||||||
Retail | 4,539,439 | 3,521,023 | 2,675,843 | ||||||||||
Portfolio | 886,637 | 1,234,214 | 832,008 | ||||||||||
79,990,222 | 80,339,228 | 78,708,375 | |||||||||||
Access | 21,870,780 | 12,621,093 | 4,129,020 | ||||||||||
101,861,002 | 92,960,321 | 82,837,395 | |||||||||||
Network, other costs | 4,554,635 | 4,835,939 | 4,925,058 | ||||||||||
Network, depreciation and amortization costs | 699,670 | 711,763 | 755,280 | ||||||||||
$ | 107,115,307 | $ | 98,508,023 | $ | 88,517,733 | ||||||||
Schedule Of Property, Plant, and Equipment By Geographic Region [TableText Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Canada | $ | 1,131,883 | $ | 1,292,425 | |||||||||
United States | 379,891 | 453,223 | |||||||||||
Germany | 98,013 | 12,188 | |||||||||||
$ | 1,609,787 | $ | 1,757,836 | ||||||||||
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Canada | $ | — | $ | 271,300 | |||||||||
Germany | 735,730 | 1,061,050 | |||||||||||
$ | 735,730 | $ | 1,332,350 | ||||||||||
Schedule of Deferred Tax asset, Net by Geographic Region [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Canada | $ | 7,378,619 | $ | 6,451,563 | |||||||||
$ | 7,378,619 | $ | 6,451,563 |
Note_18_Valuation_and_Qualifyi1
Note 18 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
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, excluding provision for credit notes | |||||||||||||||||
2014 | $ | 91,226 | $ | 34,540 | $ | — | $ | 125,766 | |||||||||
2013 | $ | 73,970 | $ | 17,256 | $ | — | $ | 91,226 | |||||||||
2012 | $ | 57,415 | $ | 16,555 | $ | — | $ | 73,970 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Number of Reportable Segments | 2 |
Number of Operating Segments | 2 |
Technology [Memer] | Minimum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Technology [Memer] | Maximum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Brand [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Customer Relationships [Member] | Minimum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Customer Relationships [Member] | 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, 2014 | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation rate | 1 |
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 | 0.3 |
Furniture and Fixtures [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation rate | 0.2 |
Note_3_Other_Assets_Details_Su
Note 3 - Other Assets (Details) - Summary Other Assets (USD $) | Dec. 31, 2014 |
Note 3 - Other Assets (Details) - Summary Other Assets [Line Items] | |
Other assets | $8,199,000 |
Radix FZC And NameCheap Inc. [Member] | |
Note 3 - Other Assets (Details) - Summary Other Assets [Line Items] | |
Other assets | 5,074,000 |
Ting Virginia, LLC [Member] | |
Note 3 - Other Assets (Details) - Summary Other Assets [Line Items] | |
Other assets | $3,125,000 |
Note_4_Property_and_equipment_1
Note 4 - Property and equipment (Details) - Property and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Computer software | $1,170,866 | $1,175,664 |
Furniture and equipment | 757,118 | 711,346 |
7,830,889 | 8,824,505 | |
Accumulated depreciation | 6,221,102 | 7,066,669 |
1,609,787 | 1,757,836 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment | $5,902,905 | $6,937,495 |
Note_4_Property_and_equipment_2
Note 4 - Property and equipment (Details) - Depreciation of Property and Equipment (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Depreciation of Property and Equipment (Incomplete) [Abstract] | |||
Depreciation of property and equipment | $926,102 | $843,420 | $802,060 |
Note_5_Goodwill_and_Other_Inta2
Note 5 - Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 5 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $577,145 | $0 | $0 |
Domain Name Services [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $577,145 | ||
Minimum [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||
Maximum [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Note_5_Goodwill_and_Other_Inta3
Note 5 - Goodwill and Other Intangible Assets (Details) - Goodwill (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Balances, | $18,873,127 | $18,873,127 |
Domain Services [Member] | Boardtown Corporation [Member] | ||
Goodwill [Line Items] | ||
Balances, | 2,044,847 | 2,044,847 |
Domain Services [Member] | Hosted Messaging Assets of Critical Path [Member] | ||
Goodwill [Line Items] | ||
Balances, | 4,072,297 | 4,072,297 |
Domain Services [Member] | Innerwise Inc. [Member] | ||
Goodwill [Line Items] | ||
Balances, | 5,801,040 | 5,801,040 |
Domain Services [Member] | Mailbank.com Inc. [Member] | ||
Goodwill [Line Items] | ||
Balances, | 6,072,623 | 6,072,623 |
Domain Services [Member] | EPAG Domainservices GmbH [Member] | ||
Goodwill [Line Items] | ||
Balances, | 882,320 | 882,320 |
Domain Services [Member] | ||
Goodwill [Line Items] | ||
Balances, | $18,873,127 | $18,873,127 |
Note_5_Goodwill_and_Other_Inta4
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances, December 31, 2012 | $15,403,228 | $16,415,651 | |
Balance | 14,202,585 | 15,403,228 | 16,415,651 |
Sales of domain names | -26,878 | -52,513 | -50,843 |
Impairment of indefinite life intangible assets | -577,145 | 0 | 0 |
Amortization expense | -596,620 | -959,910 | -1,019,760 |
Surname Domain Names Indefinite Life [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances, December 31, 2012 | 12,096,712 | 12,110,017 | |
Balance | 11,525,624 | 12,096,712 | |
Sales of domain names | -6,490 | -13,305 | |
Impairment of indefinite life intangible assets | -564,598 | ||
Direct Navigation Domain Names Indefinite Life [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances, December 31, 2012 | 1,974,166 | 2,013,374 | |
Balance | 1,941,231 | 1,974,166 | |
Sales of domain names | -20,388 | -39,208 | |
Impairment of indefinite life intangible assets | -12,547 | ||
Technology 2 to 7 years [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances, December 31, 2012 | 83,790 | ||
Amortization expense | -83,790 | ||
Brand 7 Years [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances, December 31, 2012 | 224,650 | 398,290 | |
Balance | 110,510 | 224,650 | |
Amortization expense | -114,140 | -173,640 | |
Customer Relationships 4 to 7 Years [Member] | |||
Note 5 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances, December 31, 2012 | 1,107,700 | 1,810,180 | |
Balance | 625,220 | 1,107,700 | |
Amortization expense | ($482,480) | ($702,480) |
Note_5_Goodwill_and_Other_Inta5
Note 5 - Goodwill and Other Intangible Assets (Details) - Estimated Future Amortization Expense of Intangible Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Estimated Future Amortization Expense of Intangible Assets (Incomplete) [Abstract] | ||
2015 | $205,320 | |
2016 | 205,320 | |
2017 | 205,320 | |
2018 | 119,770 | |
Total | $735,730 | $1,332,350 |
Note_6_Fair_Value_Measurement_1
Note 6 - Fair Value Measurement (Details) - Summary of the Fair Values of the Company's Derivative Instrument Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instrument asset | $1,115,805 | $491,098 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instrument asset | $1,115,805 | $491,098 |
Note_7_Derivative_Instruments_2
Note 7 - Derivative Instruments and Hedging Activities (Details) (Forward Contracts [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 7 - Derivative Instruments and Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | $26,200,000 | $26,500,000 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | -300,000 | 100,000 |
Designated as Hedging Instrument [Member] | ||
Note 7 - Derivative Instruments and Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | 22,300,000 | 20,600,000 |
Not Designated as Hedging Instrument [Member] | ||
Note 7 - Derivative Instruments and Hedging Activities (Details) [Line Items] | ||
Derivative, Loss on Derivative | $50,000 | $500,000 |
Note_7_Derivative_Instruments_3
Note 7 - Derivative Instruments and Hedging Activities (Details) - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Derivative Instruments [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts | ($1,115,805) | ($491,098) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts | -946,676 | -372,593 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts | ($169,129) | ($118,505) |
Note_7_Derivative_Instruments_4
Note 7 - Derivative Instruments and Hedging Activities (Details) - Movement in AOCI Balance (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Movement in AOCI Balance [Abstract] | |||
Opening AOCI balance | ($372,593) | $67,079 | $0 |
Opening AOCI balance | 127,612 | -22,975 | 0 |
Opening AOCI balance | -244,981 | 44,104 | 0 |
Other comprehensive income (loss)before reclassifications | -1,527,171 | -758,683 | 67,079 |
Other comprehensive income (loss)before reclassifications | 523,056 | 287,904 | -22,975 |
Other comprehensive income (loss)before reclassifications | -1,004,115 | -470,779 | 44,104 |
Amount reclassified from accumulated other comprehensive income | 953,088 | 319,011 | |
Amount reclassified from accumulated other comprehensive income | -326,433 | -137,317 | |
Amount reclassified from accumulated other comprehensive income | 626,655 | 181,694 | |
Other comprehensive income (loss) | -574,083 | -439,672 | 67,079 |
Other comprehensive income (loss) | 196,623 | 150,587 | -22,975 |
Other comprehensive income (loss) | -377,460 | -289,085 | 44,104 |
Ending AOCI balance | -946,676 | -372,593 | 67,079 |
Ending AOCI balance | 324,235 | 127,612 | -22,975 |
Ending AOCI balance | ($622,441) | ($244,981) | $44,104 |
Note_7_Derivative_Instruments_5
Note 7 - Derivative Instruments and Hedging Activities (Details) - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income,net of tax, (Effective Portion) | ($463,160) | ($151,551) |
Cost of Revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI,net of tax, on Derivative (Effective Portion) | -377,460 | -289,085 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income,net of tax, (Effective Portion) | -163,495 | -30,143 |
Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness | ($13,535) |
Note_8_Loan_Payable_Details
Note 8 - Loan Payable (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Note 8 - Loan Payable (Details) [Line Items] | |
Line of Credit Facility, Covenant Period | 18 months |
Foreign Exchange Risk [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 3,500,000 |
Derivative Asset, Fair Value, Gross Asset | 26,200,000 |
Operating Demand Loan [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Debt Instrument, Fee Amount | 500 |
Long-term Line of Credit | 0 |
2012 Demand Loan Facilities [Member] | Maximum [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 14,000,000 |
Line of Credit Facility Share Repurchase Limit | 2,000,000 |
2012 Demand Loan Facilities [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 14,000,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% |
DLR Loan [Member] | Base Rate [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
2012 DLRR Loan [Member] | Base Rate [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
2012 DLRR Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
2012 DLRR Loan [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Debt Instrument, Term | 4 years |
Amended Credit Facility [Member] | |
Note 8 - Loan Payable (Details) [Line Items] | |
Maximum Total Funded Debt To EBITDA Ratio | 2 |
Minimum Fixed Charge Coverage | 1.2 |
Line of Credit Facility Maximum Annual Capital Expenditure Ceiling | 3,600,000 |
Note_9_Income_Taxes_Details
Note 9 - Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 9 - Income Taxes (Details) [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ||
Unrecognized Tax Benefits | $117,000 | $117,000 | $382,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | |
Scenario, Forecast [Member] | |||
Note 9 - Income Taxes (Details) [Line Items] | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | $100,000 |
Note_9_Income_Taxes_Details_Pr
Note 9 - 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Provision for Income Taxes Differs From the Amount Computed by Applying the Statutory Federal Income Tax Rate (Incomplete) [Abstract] | |||
Income for the year before provision for income taxes | $9,428,325 | $5,799,803 | $6,428,298 |
Computed expected tax expense | 3,205,631 | 1,971,933 | 2,185,621 |
State income taxes | 64,056 | 14,500 | 16,071 |
Permanent differences, including foreign exchange | 192,260 | 13,700 | 21,728 |
Investment tax credits recovered | -115,455 | -106,941 | |
Other, including alternative minimum tax and adjustments to opening deferred tax assets | -407,718 | -265,339 | -112,323 |
Provision for (recovery of) income taxes | $3,054,229 | $1,619,339 | $2,004,156 |
Note_9_Income_Taxes_Details_Ta
Note 9 - Income Taxes (Details) - Tax Effects of Temporary Differences That Give Rise to Significant Portions of the Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Deferred revenue | $5,294,767 | $5,300,868 |
Losses | 290,714 | |
Foreign tax credit | 3,200,961 | 1,914,090 |
Amortization | -414,345 | 69,169 |
Accruals, including foreign exchange and other | -702,764 | -1,123,278 |
Deferred tax assets | 7,378,619 | 6,451,563 |
Deferred income tax asset, current portion | 2,498,196 | 1,081,526 |
Deferred income tax asset, long-term portion | 4,880,423 | 5,370,037 |
7,378,619 | 6,451,563 | |
Deferred tax liabilities: | ||
Limited life intangible assets | -208,620 | -301,500 |
Indefinite life intangible assets | -4,578,731 | -4,840,000 |
Total deferred tax liability, long-term portion | ($4,787,351) | ($5,141,500) |
Note_9_Income_Taxes_Details_Un
Note 9 - Income Taxes (Details) - Unrecognized Tax Benefits (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Unrecognized Tax Benefits (Incomplete) [Abstract] | ||
Balance, beginning of year | $382,000 | $117,000 |
Decrease in uncertain tax benefits of prior years | -265,000 | |
Balance, end of year | $117,000 | $117,000 |
Note_10_Common_Shares_Details
Note 10 - Common Shares (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 05, 2013 | Mar. 01, 2013 | |
Note 10 - Common Shares (Details) [Line Items] | ||||||||||
Common Stock, Shares Authorized (in Shares) | 250,000,000 | 250,000,000 | ||||||||
Common Stock, Shares, Outstanding (in Shares) | 11,329,732 | 10,907,063 | 10,056,719 | |||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4 | |||||||||
Stock Repurchased and Retired During Period, Value | $1,181,858 | $6,537,616 | $9,115,833 | |||||||
DLR Loan [Member] | ||||||||||
Note 10 - Common Shares (Details) [Line Items] | ||||||||||
Proceeds from Lines of Credit | 5,200,000 | |||||||||
Dutch Auction Tender Offer [Member] | ||||||||||
Note 10 - Common Shares (Details) [Line Items] | ||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | 1,028,531 | |||||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $6 | |||||||||
Stock Repurchased and Retired During Period, Value | 6,171,656 | |||||||||
Stock Repurchased Transaction Costs | 106,000 | |||||||||
Stock Buyback Program [Member] | ||||||||||
Note 10 - Common Shares (Details) [Line Items] | ||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | 79,392 | 73,300 | 35,769 | 6,092 | 35,769 | |||||
Stock Repurchased and Retired During Period, Value | 1,200,000 | 1,100,000 | 259,875 | 82,286 | 259,875 | |||||
Stock Repurchase Program, Authorized Amount | $20,000,000 | $2,500,000 |
Note_11_Stock_Option_Plans_Det
Note 11 - Stock Option Plans (Details) (USD $) | 12 Months Ended | 106 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 1996 | Dec. 31, 2014 | Oct. 08, 2010 | Nov. 22, 2006 | |
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 102,475 | 180,375 | 194,750 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $900,000 | $1,100,000 | $300,000 | ||||
Proceeds from Stock Options Exercised | 1,478,924 | 1,492,174 | 418,108 | ||||
Allocated Share-based Compensation Expense | 542,738 | 430,903 | 360,699 | ||||
Employee Stock Option [Member] | The 1996 Plan [Member] | |||||||
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Employee Stock Option [Member] | The 2006 Plan [Member] | |||||||
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||||||
Employee Stock Option [Member] | |||||||
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $1,000,000 | 1,000,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | ||||||
Non-qualified Stock Options [Member] | The 2006 Plan [Member] | |||||||
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||
The 1996 Plan [Member] | |||||||
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 2,787,500 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | ||||||
The 2006 Plan [Member] | |||||||
Note 11 - Stock Option Plans (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 1,725,000 | 1,250,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | 475,000 |
Note_11_Stock_Option_Plans_Det1
Note 11 - Stock Option Plans (Details) - Fair Value of Stock Options Granted (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value of Stock Options Granted [Abstract] | |||
Volatility | 56.10% | 69.40% | 52.10% |
Risk-free interest rate | 1.30% | 1.10% | 0.50% |
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) | $7.02 | $4.52 | $2.24 |
Note_11_Stock_Option_Plans_Det2
Note 11 - Stock Option Plans (Details) - Stock Option Transactions (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option Transactions [Abstract] | |||
Outstanding, beginning of year | 1,407,639 | 2,148,170 | 2,186,511 |
Outstanding, beginning of year | $3.80 | $2.56 | $2.28 |
Granted | 102,475 | 180,375 | 194,750 |
Granted | $15.78 | $8.36 | $5.44 |
Exercised | -502,061 | -890,034 | -191,585 |
Exercised | $2.95 | $1.80 | $2.20 |
Forfeited | -28,366 | -29,684 | -40,751 |
Forfeited | $6.60 | $4.88 | $3.20 |
Expired | -3,625 | -1,188 | -755 |
Expired | $3.36 | $1.44 | $1.76 |
Outstanding, end of year | 976,062 | 1,407,639 | 2,148,170 |
Outstanding, end of year | $5.41 | $3.80 | $2.56 |
Options exercisable, end of year | 725,392 | 1,045,475 | 1,772,723 |
Options exercisable, end of year | $4.03 | $3.14 | $2.28 |
Note_11_Stock_Option_Plans_Det3
Note 11 - Stock Option Plans (Details) - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number Outstanding (in Shares) | 976,062 | 1,407,639 | 2,148,170 | 2,186,511 |
Weighted average exercise price per share ,options outstanding | $5.41 | $3.80 | $2.56 | $2.28 |
Aggregate intrinsic value, options outstanding (in Dollars) | $13,663,861 | |||
Number exercisable (in Shares) | 725,392 | 1,045,475 | 1,772,723 | |
Weighted average exercise price per share, options exercisable | $4.03 | $3.14 | $2.28 | |
Aggregate intrinsic value, options exercisable (in Dollars) | 11,156,176 | |||
Exercise Price Range 01 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $2.40 | |||
Exercise price - higher | $2.40 | |||
Number Outstanding (in Shares) | 113,250 | |||
Weighted average exercise price per share ,options outstanding | $2.40 | |||
Weighted average remaining contractual life (years), options outstanding | 146 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | 1,926,383 | |||
Number exercisable (in Shares) | 113,250 | |||
Weighted average exercise price per share, options exercisable | $2.40 | |||
Aggregate intrinsic value, options exercisable (in Dollars) | 1,926,383 | |||
Exercise Price Range 02 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $2.48 | |||
Exercise price - higher | $2.80 | |||
Number Outstanding (in Shares) | 318,451 | |||
Weighted average exercise price per share ,options outstanding | $2.76 | |||
Weighted average remaining contractual life (years), options outstanding | 2 years 36 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | 5,301,971 | |||
Number exercisable (in Shares) | 318,451 | |||
Weighted average exercise price per share, options exercisable | $2.76 | |||
Aggregate intrinsic value, options exercisable (in Dollars) | 5,301,971 | |||
Exercise Price Range 03 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $2.92 | |||
Exercise price - higher | $3.76 | |||
Number Outstanding (in Shares) | 136,973 | |||
Weighted average exercise price per share ,options outstanding | $3.01 | |||
Weighted average remaining contractual life (years), options outstanding | 2 years 328 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | 2,246,604 | |||
Number exercisable (in Shares) | 112,866 | |||
Weighted average exercise price per share, options exercisable | $3.03 | |||
Aggregate intrinsic value, options exercisable (in Dollars) | 1,849,080 | |||
Exercise Price Range 04 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $4.20 | |||
Exercise price - higher | $15.93 | |||
Number Outstanding (in Shares) | 407,388 | |||
Weighted average exercise price per share ,options outstanding | $9.13 | |||
Weighted average remaining contractual life (years), options outstanding | 4 years 328 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | 4,188,903 | |||
Number exercisable (in Shares) | 180,825 | |||
Weighted average exercise price per share, options exercisable | $7.91 | |||
Aggregate intrinsic value, options exercisable (in Dollars) | $2,078,742 |
Note_11_Stock_Option_Plans_Det4
Note 11 - Stock Option Plans (Details) - Stock-based Compensation Allocation to Operating Expenses (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $542,738 | $430,903 | $360,699 |
Network Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 30,938 | 31,664 | 24,480 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 143,514 | 129,302 | 92,168 |
Technical Operations and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 85,904 | 78,800 | 59,141 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $282,382 | $191,137 | $184,910 |
Note_12_Foreign_Exchange_Gain_
Note 12 - Foreign Exchange Gain (Details) (General and Administrative Expense [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
General and Administrative Expense [Member] | |||
Note 12 - Foreign Exchange Gain (Details) [Line Items] | |||
Foreign Currency Transaction Gain (Loss), Realized | $700,000 | $300,000 | ($8,000) |
Note_13_Other_Income_Net_Detai
Note 13 - Other Income, Net (Details) (USD $) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2012 | Dec. 31, 2012 | |
Other Income and Expenses [Abstract] | ||
Proceeds from Sale of Intangible Assets | $500,000 | $508,800 |
Note_14_Earnings_Per_Common_Sh2
Note 14 - Earnings Per Common Share (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 95,762 | 136,812 | 188,797 |
Note_14_Earnings_Per_Common_Sh3
Note 14 - Earnings Per Common Share (Details) - Summary of Basic and Diluted Earnings Per Common Share (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Basic and Diluted Earnings Per Common Share [Abstract] | |||
Net income for the year (in Dollars) | $6,374,096 | $4,180,464 | $4,424,142 |
Basic weighted average number of common shares outstanding | 11,220,874 | 10,468,250 | 11,458,216 |
Effect of stock options | 509,524 | 813,159 | 825,520 |
Diluted weighted average number of shares outstanding | 11,730,398 | 11,281,409 | 12,283,736 |
Basic earnings per common share (in Dollars per share) | $0.57 | $0.40 | $0.39 |
Diluted earnings per common share (in Dollars per share) | $0.54 | $0.37 | $0.36 |
Note_15_Commitments_and_Contin2
Note 15 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense, Net | $0.90 | $0.80 | $0.90 |
Note_15_Commitments_and_Contin3
Note 15 - Commitments and Contingencies (Details) - Summary of General Office Facilities and Equipment (USD $) | Dec. 31, 2014 | |
Summary of General Office Facilities and Equipment [Abstract] | ||
2015 | $659,000 | |
2015 | 3,951,000 | [1] |
2015 | 4,610,000 | |
2016 | 608,000 | |
2016 | 8,051,000 | [1] |
2016 | 8,659,000 | |
2017 | 642,000 | |
2017 | 12,688,000 | [1] |
2017 | 13,330,000 | |
2018 | 642,000 | |
2018 | [1] | |
2018 | 642,000 | |
2019 | 642,000 | |
2019 | [1] | |
2019 | 642,000 | |
Thereafter | 1,731,000 | |
Thereafter | [1] | |
Thereafter | 1,731,000 | |
4,924,000 | ||
24,690,000 | [1] | |
$29,614,000 | ||
[1] | Rental expense under operating lease agreements was $0.9 million, $0.8 million and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Note_16_Subsequent_Events_Deta
Note 16 - Subsequent Events (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | Feb. 24, 2015 | Jan. 07, 2015 | Mar. 06, 2015 | Jan. 31, 2013 | Feb. 11, 2015 | |
Note 16 - Subsequent Events (Details) [Line Items] | |||||||||
Stock Repurchased and Retired During Period, Value | $1,181,858 | $6,537,616 | $9,115,833 | ||||||
Common Stock, Shares, Issued (in Shares) | 11,329,732 | 10,907,063 | |||||||
Common Stock, Shares, Outstanding (in Shares) | 11,329,732 | 10,907,063 | 10,056,719 | ||||||
Subsequent Event [Member] | Amended Credit Facility [Member] | |||||||||
Note 16 - Subsequent Events (Details) [Line Items] | |||||||||
Proceeds from Long-term Lines of Credit | 3,500,000 | ||||||||
Subsequent Event [Member] | Ting Virginia, LLC [Member] | Ting Fiber, Inc. [Member] | |||||||||
Note 16 - Subsequent Events (Details) [Line Items] | |||||||||
Business Combination, Consideration Transferred | 3,600,000 | ||||||||
Business Combination, Customers Acquried, Number | 3,000 | ||||||||
Subsequent Event [Member] | Dutch Auction Tender Offer [Member] | |||||||||
Note 16 - Subsequent Events (Details) [Line Items] | |||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | 193,907 | ||||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $18.50 | ||||||||
Stock Repurchased and Retired During Period, Value | 3,587,280 | ||||||||
Stock Repurchased Transaction Costs | 60,000 | ||||||||
Subsequent Event [Member] | |||||||||
Note 16 - Subsequent Events (Details) [Line Items] | |||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | 108,605 | ||||||||
Stock Repurchased and Retired During Period, Value | 2,000,000 | ||||||||
Common Stock, Shares, Issued (in Shares) | 11,135,825 | ||||||||
Common Stock, Shares, Outstanding (in Shares) | 11,135,825 | ||||||||
Stock Repurchase Program, Authorized Amount | 20,000,000 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $18,000,000 |
Note_17_Segment_Reporting_Deta
Note 17 - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note_17_Segment_Reporting_Deta1
Note 17 - Segment Reporting (Details) - Information by Reportable Segments (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Income Statements, Captions [Line Items] | |||
Net Revenues | $147,667,107 | $129,934,904 | $114,726,901 |
Cost of Revenues | 107,115,307 | 98,508,023 | 88,517,733 |
Gross Profit | 40,551,800 | 31,426,881 | 26,209,168 |
Sales and marketing | 15,394,065 | 12,141,036 | 8,701,446 |
Technical operations and development | 4,305,715 | 4,158,603 | 4,302,820 |
General and administrative | 8,505,920 | 7,204,895 | 6,610,819 |
Depreciation of property and equipment | 226,432 | 215,447 | 190,420 |
Loss on disposition of property and equipment | 118,944 | ||
Amortization of intangibles | 596,620 | 876,120 | 876,120 |
Impairment of indefinite life intangible assets | 577,145 | 0 | 0 |
Loss on currency forward contracts | 1,310,848 | 676,120 | -682,851 |
Income from operations | 9,635,055 | 6,154,660 | 6,091,450 |
Other income expenses, net | -206,730 | -354,857 | 336,848 |
Income before provision for income taxes | 9,428,325 | 5,799,803 | 6,428,298 |
Domain Services [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net Revenues | 111,780,102 | 113,404,667 | 110,761,217 |
Cost of Revenues | 85,244,527 | 85,886,930 | 84,388,713 |
Gross Profit | 26,535,575 | 27,517,737 | 26,372,504 |
Network Access Services [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Net Revenues | 35,887,005 | 16,530,237 | 3,965,684 |
Cost of Revenues | 21,870,780 | 12,621,093 | 4,129,020 |
Gross Profit | $14,016,225 | $3,909,144 | ($163,336) |
Note_17_Segment_Reporting_Deta2
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | $147,667,107 | $129,934,904 | $114,726,901 |
Wholesale [Member] | Domain Services [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | 86,640,949 | 87,294,173 | 87,434,450 |
Wholesale [Member] | Value Added Services [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | 9,654,734 | 10,271,219 | 10,586,460 |
Wholesale [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | 96,295,683 | 97,565,392 | 98,020,910 |
Retail [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | 10,417,746 | 8,360,035 | 6,775,160 |
Portfolio [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | 5,066,673 | 7,479,240 | 5,965,147 |
Wholesale, Retail and Portfolio [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | 111,780,102 | 113,404,667 | 110,761,217 |
Network Access Services [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream [Line Items] | |||
Operating revenues | $35,887,005 | $16,530,237 | $3,965,684 |
Note_17_Segment_Reporting_Deta3
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | $107,115,307 | $98,508,023 | $88,517,733 |
Network, other costs | 4,554,635 | 4,835,939 | 4,925,058 |
Network, depreciation and amortization costs | 83,790 | 143,640 | |
Wholesale [Member] | Domain Services [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 72,353,061 | 73,468,824 | 73,168,196 |
Wholesale [Member] | Value Added Services [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 2,211,085 | 2,115,167 | 2,032,328 |
Wholesale [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 74,564,146 | 75,583,991 | 75,200,524 |
Retail [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 4,539,439 | 3,521,023 | 2,675,843 |
Portfolio [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 886,637 | 1,234,214 | 832,008 |
Wholesale, Retail and Portfolio [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 79,990,222 | 80,339,228 | 78,708,375 |
Network Access Services [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 21,870,780 | 12,621,093 | 4,129,020 |
Wholesale, Retail, Portfolio and Access [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Cost of revenues | 101,861,002 | 92,960,321 | 82,837,395 |
Internal Network [Member] | |||
Note 17 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream [Line Items] | |||
Network, other costs | 4,554,635 | 4,835,939 | 4,925,058 |
Network, depreciation and amortization costs | $699,670 | $711,763 | $755,280 |
Note_17_Segment_Reporting_Deta4
Note 17 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 17 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | $1,609,787 | $1,757,836 |
CANADA | ||
Note 17 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | 1,131,883 | 1,292,425 |
UNITED STATES | ||
Note 17 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | 379,891 | 453,223 |
GERMANY | ||
Note 17 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | $98,013 | $12,188 |
Note_17_Segment_Reporting_Deta5
Note 17 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 17 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region [Line Items] | ||
Amortizable intangible assets | $735,730 | $1,332,350 |
CANADA | ||
Note 17 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region [Line Items] | ||
Amortizable intangible assets | 271,300 | |
GERMANY | ||
Note 17 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region [Line Items] | ||
Amortizable intangible assets | $735,730 | $1,061,050 |
Note_17_Segment_Reporting_Deta6
Note 17 - Segment Reporting (Details) - Summary of Company's Deferred Tax Asset, Net of Valuation Allowance (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Company's Deferred Tax Asset, Net of Valuation Allowance [Abstract] | ||
Deferred tax assets | $7,378,619 | $6,451,563 |
Note_18_Valuation_and_Qualifyi2
Note 18 - Valuation and Qualifying Accounts (Details) - Summary of Valuation and Qualifying Accounts (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for doubtful accounts, excluding provision for credit notes | |||
Balance at beginning year | $91,226 | $73,970 | $57,415 |
Charged to (recovered) costs and expenses | 34,540 | 17,256 | 16,555 |
Balance at end of year | $125,766 | $91,226 | $73,970 |