Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | TUCOWS INC /PA/ | |
Entity Central Index Key | 909,494 | |
Trading Symbol | tcx | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,424,964 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 5,879,482 | $ 7,723,253 |
Accounts receivable, net of allowance for doubtful accounts of $147,793 as of June 30, 2016 and $122,095 as of December 31, 2015 | 9,982,919 | 7,171,388 |
Inventory | 1,284,692 | 903,775 |
Prepaid expenses and deposits | 6,427,664 | 5,067,790 |
Derivative instrument asset, current portion (note 4) | 73,617 | |
Prepaid domain name registry and ancillary services fees, current portion | 48,350,997 | 44,708,041 |
Income taxes recoverable (note 7) | 1,326,355 | 2,292,915 |
Total current assets | 73,325,726 | 67,867,162 |
Prepaid domain name registry and ancillary services fees, long-term portion | 11,296,936 | 11,040,929 |
Property and equipment | 7,939,984 | 7,126,676 |
Deferred tax asset (note 7) | 6,339,848 | 7,621,092 |
Other assets (note 6) | 133,500 | |
Intangible assets (note 5) | 20,317,568 | 14,469,677 |
Goodwill (note 5) | 21,005,143 | 21,005,143 |
Total assets | 140,358,705 | 129,130,679 |
Current liabilities: | ||
Accounts payable | 3,312,273 | 4,166,135 |
Accrued liabilities | 5,008,112 | 5,855,686 |
Customer deposits | 6,171,458 | 5,136,909 |
Derivative instrument liability, current portion (note 4) | 294,170 | 2,027,086 |
Deferred rent, current portion | 20,854 | 19,463 |
Loan payable (note 6) | 9,062,500 | 3,500,000 |
Deferred revenue, current portion | 61,337,998 | 56,646,390 |
Accreditation fees payable, current portion | 505,175 | 465,300 |
Income taxes payable (note 7) | 667,773 | 444,053 |
Total current liabilities | 86,380,313 | 78,261,022 |
Deferred revenue, long-term portion | 15,362,403 | 14,947,639 |
Accreditation fees payable, long-term portion | 115,761 | 118,480 |
Deferred rent, long-term portion | 116,137 | 100,864 |
Other liabilities (note 12) | 1,202,320 | 1,459,960 |
Deferred tax liability (note 7) | 4,843,153 | 4,876,691 |
Redeemable non-controlling interest (note 8) | 3,061,244 | 3,036,598 |
Stockholders' equity (note 13) | ||
Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock - no par value, 250,000,000 shares authorized;10,422,453 shares issued and outstanding as of June 30, 2016 and 10,685,599 shares issued and outstanding as of December 31, 2015 | 14,295,907 | 14,530,633 |
Additional paid-in capital | 2,234,541 | 8,526,395 |
Retained earnings | 12,866,227 | 4,381,849 |
Accumulated other comprehensive income (loss) | (119,301) | (1,109,452) |
Total stockholders' equity | 29,277,374 | 26,329,425 |
Total liabilities and stockholders' equity | $ 140,358,705 | $ 129,130,679 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 147,793 | $ 122,095 |
Preferred stock, shares authorized (in shares) | 1,250,000 | 1,250,000 |
Preferred stock - shares issued (in shares) | 0 | 0 |
Preferred stock - shares outstanding (in shares) | 0 | 0 |
Preferred stock - no par value (in dollars per share) | $ 0 | $ 0 |
Common stock shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock shares issued (in shares) | 10,422,453 | 10,685,599 |
Common stock shares outstanding (in shares) | 10,422,453 | 10,685,599 |
Common stock - no par value (in dollars per share) | $ 0 | $ 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net revenues (note 10) | $ 47,466,381 | $ 42,889,220 | $ 93,076,794 | $ 83,357,053 |
Cost of revenues (note 10) | ||||
Cost of revenues | 29,849,661 | 28,250,672 | 58,700,134 | 55,072,046 |
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 |
Depreciation of property and equipment | 350,920 | 279,929 | 697,673 | 479,571 |
Amortization of intangible assets | 11,532 | 11,532 | 23,064 | 15,456 |
Total cost of revenues | 31,616,939 | 30,036,971 | 62,058,628 | 58,284,007 |
Gross profit | 15,849,442 | 12,852,249 | 31,018,166 | 25,073,046 |
Expenses: | ||||
Sales and marketing | 5,435,033 | 4,847,963 | 10,720,657 | 8,647,138 |
Technical operations and development | 998,651 | 1,189,276 | 2,175,011 | 2,303,471 |
General and administrative | 2,926,608 | 2,750,466 | 5,331,535 | 5,218,488 |
Depreciation of property and equipment | 76,922 | 62,022 | 150,190 | 121,284 |
Amortization of intangible assets (note 5) | 276,918 | 56,997 | 333,915 | 110,212 |
Impairment of indefinite life intangible asset | 3,894 | 37,805 | 24,879 | 50,298 |
Loss (gain) on currency forward contracts (note 4) | (8,711) | 25,227 | (119,468) | 329,251 |
Total expenses | 9,709,315 | 8,969,756 | 18,616,719 | 16,780,142 |
Income from operations | 6,140,127 | 3,882,493 | 12,401,447 | 8,292,904 |
Other income (expense): | ||||
Interest expense, net | (120,528) | (57,402) | (166,700) | (82,177) |
Other income, net (note 12) | 128,820 | 257,640 | ||
Total other income (expense) | 8,292 | (57,402) | 90,940 | (82,177) |
Income before provision for income taxes | 6,148,419 | 3,825,091 | 12,492,387 | 8,210,727 |
Provision for income taxes (note 7) | 2,077,633 | 1,540,096 | 3,983,363 | 3,091,789 |
Net income before redeemable non-controlling interest | 4,070,786 | 2,284,995 | 8,509,024 | 5,118,938 |
Redeemable non-controlling interest (note 8) | (273,690) | (49,985) | (444,482) | (71,467) |
Net loss attributable to redeemable non-controlling interest | 273,690 | 49,985 | 444,482 | 71,467 |
Net income for the period | 4,070,786 | 2,284,995 | 8,509,024 | 5,118,938 |
Other comprehensive income (loss), net of tax | ||||
Unrealized income (loss) on hedging activities (note 4) | 27,264 | (38,046) | 575,227 | (998,912) |
Net amount reclassified to earnings (note 4) | 79,367 | 371,955 | 414,924 | 788,029 |
Other comprehensive income (loss) net of tax of $60,659 and $184,262 for the three months ended June 30, 2016 and June 30, 2015 and $544,363 and $135,616 for the six months ended June 30, 2016 and June 30, 2015 | 106,631 | 333,909 | 990,151 | (210,883) |
Comprehensive income for the year | $ 4,177,417 | $ 2,618,904 | $ 9,499,175 | $ 4,908,055 |
Basic earnings per common share (note 9) (in dollars per share) | $ 0.39 | $ 0.21 | $ 0.80 | $ 0.46 |
Shares used in computing basic earnings per common share (note 9) (in shares) | 10,541,659 | 11,047,136 | 10,607,843 | 11,094,618 |
Diluted earnings per common share (note 9) (in dollars per share) | $ 0.38 | $ 0.20 | $ 0.79 | $ 0.44 |
Shares used in computing diluted earnings per common share (note 9) (in shares) | 10,733,860 | 11,456,670 | 10,797,458 | 11,518,105 |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other comprehensive income (loss), tax | $ 60,659 | $ 184,262 | $ 544,363 | $ 135,616 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Ting Virginia LLC [Member] | ||||
Investing activities: | ||||
Remaining payment for the acquisition of Ting Virginia, LLC., net of cash of $21,423 (note 8) | $ 50,000 | $ (357,493) | ||
Net income for the period | 4,070,786 | 2,284,995 | 8,509,024 | 5,118,938 |
Depreciation of property and equipment | 427,842 | 341,951 | 847,863 | 600,855 |
Amortization of intangible assets | 288,450 | 68,529 | 356,979 | 125,668 |
Impairment of indefinite life intangible asset | 3,894 | 37,805 | 24,879 | 50,298 |
Deferred income taxes (recovery) | 430,184 | (801,919) | 703,343 | (966,169) |
Amortization of deferred rent | 4,749 | 13,039 | 16,664 | 10,547 |
Disposal of domain names | 12,601 | 11,357 | 20,821 | 17,685 |
Other income | (128,820) | (257,640) | ||
Loss (gain) on change in the fair value of forward contracts | (28,977) | (97,451) | (272,019) | 61,342 |
Stock-based compensation | 190,187 | 124,605 | 390,415 | 249,653 |
Accounts receivable | (1,921,021) | (1,088,453) | (2,811,531) | (1,257,038) |
Inventory | (141,830) | (45,294) | (380,917) | (158,444) |
Prepaid expenses and deposits | (1,106,950) | (592,614) | (1,359,874) | (1,892,392) |
Prepaid domain name registry and ancillary services fees | (3,101,043) | (755,932) | (3,898,963) | (2,218,776) |
Income taxes recoverable | (36,174) | 121,248 | 1,190,280 | 783,016 |
Accounts payable | (1,233,092) | (109,990) | (683,296) | 7,576 |
Accrued liabilities | (396,328) | 1,169,753 | (847,574) | 1,110,533 |
Customer deposits | 1,214,472 | 589,361 | 1,034,549 | 452,918 |
Deferred revenue | 3,597,790 | 983,586 | 5,106,372 | 3,045,096 |
Accreditation fees payable | 26,537 | (18,981) | 37,156 | 32,046 |
Net cash provided by operating activities | 2,173,257 | 2,235,595 | 7,726,531 | 5,173,352 |
Proceeds received on exercise of stock options | 37,209 | 299,472 | 56,767 | 547,455 |
Payment of tax obligations resulting from net exercise of stock options | (203,019) | (239,704) | ||
Excess tax benefits from share-based compensation expense | 384,839 | 676,060 | 446,199 | 1,088,702 |
Repurchase of common stock | (4,999,978) | (489,536) | (7,180,257) | (8,201,681) |
Proceeds received on loan payable | 6,000,000 | 3,500,000 | ||
Repayment of loan payable | (218,750) | (437,500) | ||
Payment of credit facility renegotiation costs | (133,500) | (133,500) | ||
Net cash provided by (used in) financing activities | (5,133,199) | 485,996 | (1,487,995) | (3,065,524) |
Additions to property and equipment | (975,401) | (1,149,020) | (1,831,737) | (1,340,782) |
Gross proceeds from the waiver of rights to .online registry | 6,619,832 | |||
Acquisition of intangible assets (note 5) | (196,024) | (6,250,570) | ||
Net cash provided by (used in) investing activities | (1,171,425) | (1,099,020) | (8,082,307) | 4,921,557 |
Increase in cash and cash equivalents | (4,131,367) | 1,622,571 | (1,843,771) | 7,029,385 |
Cash and cash equivalents, beginning of period | 10,010,849 | 13,678,191 | 7,723,253 | 8,271,377 |
Cash and cash equivalents, end of period | 5,879,482 | 15,300,762 | 5,879,482 | 15,300,762 |
Supplemental cash flow information: | ||||
Interest paid | 120,566 | 57,409 | 166,947 | 96,302 |
Income taxes paid, net | 1,274,739 | 1,380,448 | 1,591,959 | 1,944,470 |
Supplementary disclosure of non-cash investing and financing activities: | ||||
Property and equipment acquired during the period not yet paid for | $ 46,632 | $ 70,577 | $ 46,632 | $ 70,577 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Ting Virginia LLC [Member] | ||||
Net cash | $ 21,423 | $ 21,423 | $ 21,423 | $ 21,423 |
Note 1 - Organization of the Co
Note 1 - Organization of the Company | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization of the Company: Tucows Inc., a Pennsylvania corporation (referred to throughout this report as the “Company”, “Tucows”, “we”, “us” or through similar expressions), together with our consolidated subsidiaries, is a provider of retail mobile phone service and fixed Internet access as well as a global distributor of Internet Services, such as domain name registration, digital certificates and email. The Company’s Internet Services are distributed through its global Internet-based distribution network of Internet service providers, web hosting companies and other companies that provide services to end-users. We were incorporated under the laws of the Commonwealth of Pennsylvania in November 1992 under the name Infonautics, Inc. In August 2001, we completed our acquisition of Tucows Inc., a Delaware corporation, and we changed our name from Infonautics, Inc. to Tucows Inc. Our principal executive office is located in Toronto, Ontario and we have other offices in the Netherlands, Germany and the United States. Our common stock is listed on NASDAQ under the symbol “TCX” and on the Toronto Stock Exchange under the symbol “TC”. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2. Basis of presentation: The accompanying unaudited interim consolidated balance sheets, and the related consolidated statements of operations and comprehensive income and cash flows reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position of Tucows and its subsidiaries as at June 30, 2016 and the results of operations and cash flows for the interim periods ended June 30, 2016 and 2015. The results of operations presented in this Quarterly Report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for future periods. The accompanying unaudited interim consolidated financial statements have been prepared by Tucows in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosure normally included in the Company's annual audited consolidated financial statements and accompanying notes have been condensed or omitted. These interim consolidated financial statements and accompanying notes follow the same accounting policies and methods of application used in the annual financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2015 included in Tucows' 2015 Annual Report on Form 10-K filed with the SEC on March 9, 2016. Prior to the third quarter of 2015, the Company recorded the effective portion of the gain or loss upon settlement of hedged currency forward contracts in “Loss on currency forward contracts” and reclassified the same amount from “General and administrative expense” to the income statement line item for the hedged item. The Company has determined that the reclassification of the effective portion of gain or loss upon settlement amounts are more appropriately reclassified from “Loss on currency forward contracts” to the income statement line item for the hedged item. As a result, a loss of $0.6 million for the three months ended June 30, 2015 has been reclassified to “General and administrative expense” from “Loss on currency forward contracts”, and a loss of $1.2 million for the six months ended June 30, 2015 has been reclassified to “General and administrative expense” from “Loss on currency forward contracts”. As a result of this reclassification, there was no change to previously reported net income, comprehensive income, income from operations, net revenues, gross profit, reported cash flows or the amounts recorded in the consolidated balance sheets. There have been no material changes to our significant accounting policies and estimates during the six months ended June 30, 2016 as compared to the significant accounting policies and estimates described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, except for the adoption of Accounting Standard Update No. 2015-17, Income Taxes (Topic 740). The Company's most significant accounting policies are revenue recognition, property and equipment and derivative financial instruments and are included below: (a) Revenue recognition The Company’s revenues are derived from domain name registration fees on both a wholesale and retail basis, the sale of domain names, the provisioning of other Internet services and advertising and other revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. The Company earns registration fees in connection with each new, renewed and transferred-in registration and from providing provisioning of other Internet services to resellers and registrars on a monthly basis. Service has been provided in connection with registration fees once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards. Domain names are generally purchased for terms of one to ten years. Registration fees charged for domain name registration and provisioning services are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned for annual periods or longer, are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned on a monthly basis are recognized as services are provided. For arrangements with multiple deliverables, the Company allocates revenue to each deliverable if the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The fair value of the selling price for a deliverable is determined using a hierarchy of (1) Company specific objective and reliable evidence, then (2) third-party evidence, then (3) best estimate of selling price. The Company allocates any arrangement fee to each of the elements based on their relative selling prices. Revenue generated from the sale of domain names, earned from transferring the rights to domain names under the Company’s control, are recognized once the rights have been transferred and payment has been received in full. The Company derives revenues from the provisioning of mobile phone and fixed Internet access services primarily through its Ting website. These revenues are recognized once services have been provided. Revenues for wireless services are billed based on the actual amount of monthly services utilized by each customer during their billing cycle on a postpaid basis. The Company’s billing cycle for each customer is computed based on the customer’s activation date. As a result, the Company estimates the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting period. In addition, revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. The Company also generates advertising and other revenue through its online libraries of shareware, freeware and online services presented on its website. Advertising revenue includes revenue derived from cost per action advertising links we display 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 Tucows.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. (b) 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 33 1/3 - 100% Furniture and equipment 20% Vehicles and tools 20% Fiber network (years) 15 Customer equipment and installations (years) 3 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 their eventual disposition is less than their carrying amount, they are 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. Additions to the fiber network are recorded at cost, including all material, labor, vehicle and installation and construction costs and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the fiber network level and not on a specific asset basis. For assets that are retired, the estimated historical cost and related accumulated depreciation is removed. (c) Derivative Financial Instruments During the three and six months ended June 30, 2016 and the year ended December 31, 2015 ("Fiscal 2015"), the Company used derivative financial instruments to manage foreign currency exchange risk. The Company accounts for these instruments in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 815, “Derivatives and Hedging” ("Topic 815"), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Topic 815 also requires that changes in the 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 the 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 is determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company's and the counterparty's 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. The discounted cash flow techniques use observable market inputs, such as foreign currency spot and forward rates. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. Recent accounting pronouncements: Recent Accounting Pronouncements Adopted On January 1, 2016, the Company adopted Accounting Standards Updates ("ASU") No. 2015-16, Business Combinations (Topic 805) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Interest Imputation of Interest Subtopic 835-30 On January 1, 2016, the Company elected to early adopt Accounting Standard Update No. 2015-17, Income Taxes (Topic 740) Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued FASB ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Overall (Subtopic 825-10) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The new standard provides a single principles-based, five-step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contracts and (5) recognize revenue when each performance obligation is satisfied. More specifically, revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. ASU 2014-09 was set to be effective for interim and annual periods beginning after December 15, 2016. On July 9, 2015, the FASB voted to defer the effective date by one year, such that the new standard will be effective for the Company for the interim and annual reporting periods beginning after December 15, 2017 (January 1, 2018 for the Company). In March 2016, FASB issued ASU No. 2016-08 clarifying the implementation guidance on principal versus agent considerations. In April 2016, FASB issued ASU. No 2016-10 providing further guidance on identifying performance obligations and licensing. In May 2016, FASB issued ASU. No 2016-12 providing guidance related revenue recognition and consideration received. Early adoption of these standards is permitted but not before the original effective date. Companies can transition to the standards either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company does not intend to adopt the standards early and is currently in the process of evaluating the impact that the adoption of ASU 2014-09, ASU 2016-08, ASU 2016-10 and ASU 2016-12 will have on its consolidated financial statements and the selected method of transition to the new standard. |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 4. 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 certain of these transactions as cash flow hedges of forecasted transactions under ASC Topic 815. For certain contracts, 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 and 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 June 30, 2016, is recorded as derivative instrument assets and derivative instrument liabilities. As of June 30, 2016, the notional amount of forward contracts that the Company held to sell U.S. dollars in exchange for Canadian dollars was $11.0 million, of which $9.3 million met the requirements of ASC Topic 815 and were designated as hedges (June 30, 2015 - $24.0 million of which $20.4 million were designated as hedges). As of June 30, 2016, we had the following outstanding forward exchange contracts to trade U.S. dollars in exchange for Canadian dollars: Maturity date Notional amount of U.S. dollars Weighted average exchange rate of U.S. dollars Fair value July - September 2016 6,002,500 1.2554 (190,264 ) October - December 2016 4,952,500 1.2885 (30,289 ) $ 10,955,000 1.2703 $ (220,553 ) 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 six months ended June 30, 2016, were as follows (amounts presented do not include any income tax effects). Fair value of derivative instruments in the consolidated balance sheets Derivatives Balance Sheet As of June 30 , 2016 Fair Value Asset (Liability) As of December 31, 2015 Fair Value Asset (Liability) Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ (187,169 ) $ (1,721,683 ) Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ (33,384 ) $ (305,403 ) Total foreign currency forward contracts Derivative instruments $ (220,553 ) $ (2,027,086 ) Movement in Accumulated Other Comprehensive Income ("AOCI") balance for the three months ended June 30, 2016: Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – March 31, 2016 $ (354,459 ) $ 128,527 $ (225,932 ) Other comprehensive income (loss) before reclassifications 42,774 (15,510 ) 27,264 Amount reclassified from accumulated other comprehensive income 124,516 (45,149 ) 79,367 Other comprehensive income (loss) for the three months ended June 30, 2016 167,290 (60,659 ) 106,631 Ending AOCI balance – June 30, 2016 $ (187,169 ) $ 67,868 $ (119,301 ) Movement in Accumulated Other Comprehensive Income ("AOCI") balance for the six months ended June 30, 2016: Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Other comprehensive income (loss) before reclassifications 883,551 (308,324 ) 575,227 Amount reclassified from accumulated other comprehensive income 650,963 (236,039 ) 414,924 Other comprehensive income (loss) for the six months ended June 30, 2016 1,534,514 (544,363 ) 990,151 Ending AOCI balance – June 30, 2016 $ (187,169 ) $ 67,868 $ (119,301 ) Effects of derivative instruments on income and other comprehensive income (OCI) for the three months ended June 30, 2016 and June 30, 2015 are as follows: Derivatives in Cash Flow Hedging Relationship 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, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (88,441 ) Operating expenses $ — Foreign currency forward contracts for the three months ended June 30, 2016 $ 106,631 Cost of revenues (36,075 ) Cost of revenues — Operating expenses $ (418,444 ) Operating expenses $ (8,741 ) Foreign currency forward contracts for the three months ended June 30, 2015 $ 333,909 Cost of revenues (158,768 ) Cost of revenues — Effects of derivative instruments on income and other comprehensive income (OCI) for the six months ended June 30, 2016 and June 30, 2015 are as follows: Derivatives in Cash Flow Hedging Relationship 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, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (460,830 ) Operating expenses $ (47,242 ) Foreign currency forward contracts for the six months ended June 30, 2016 $ 990,151 Cost of revenues (142,891 ) Cost of revenues — Operating expenses $ (886,461 ) Operating expenses $ (31,323 ) Foreign currency forward contracts for the six months ended June 30, 2015 $ (210,883 ) Cost of revenues (336,428 ) Cost of revenues — In addition to the above, for those foreign currency forward contracts not designated as hedges, the Company has recorded a loss of $21,008 upon settlement and a gain of $28,977 for the change in fair value of outstanding contracts for the three months ended June 30, 2016, in the consolidated statement of operations and comprehensive income. The Company has recorded a loss of $0.1 million upon settlement and a gain of $0.1 million for the change in fair value of outstanding contracts for the three months ended June 30, 2015, in the consolidated statement of operations and comprehensive income. The Company has recorded a loss of $0.1 million upon settlement and a gain of $0.3 million for the change in fair value of outstanding contracts for the six months ended June 30, 2016, in the consolidated statement of operations and comprehensive income. The Company has recorded a loss of $0.2 million upon settlement and a loss of $0.1 million for the change in fair value of outstanding contracts for the six months ended June 30, 2015, in the consolidated statement of operations and comprehensive income. |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill and Other Intangible Assets: Goodwill Goodwill represents the excess of the purchase price over the fair value of tangible or identifiable intangible assets acquired and liabilities assumed in our acquisitions. Goodwill consists of the following: June 30, 2016 December 31, 2015 Boardtown Corporation $ 2,044,847 $ 2,044,847 Hosted Messaging Assets of Critical Path 4,072,297 4,072,297 Innerwise Inc. 5,801,040 5,801,040 Mailbank.com Inc. 6,072,623 6,072,623 EPAG Domainservices GmbH 882,320 882,320 Ting Fiber Inc. 1,426,893 1,426,893 Ting Virginia Inc. 705,123 705,123 Total $ 21,005,143 $ 21,005,143 The Company’s goodwill relates 90% to its Domain Services operating segment and 10% to its Network Access Services operating segment. Goodwill is not amortized, but is subject to an annual impairment evaluation. Other Intangible Assets: Intangible assets consist of network rights, brand, customer relationships, surname domain names, non-competition agreements and our portfolio of domain names. As reflected in the table below, these balances are being amortized on a straight-line basis over the life of the intangible assets, except for the surname domain names and direct navigation domain names, which have been determined to have an indefinite life and which are evaluated annually for impairment. A summary of acquired intangible assets for the three months ended June 30, 2016 is as follows: Surname domain names Direct navigation domain names Brand Customer relationships Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 15 years Balances, March 31, 2016 $ 11,319,560 $ 1,887,908 $ 71,960 $ 450,567 $ 641,948 $ 14,371,943 Acquisition of customer relationships - - - 6,250,570 - 6,250,570 Additions to/(disposals from) domain portfolio, net (1,623 ) (10,978 ) - - - (12,601 ) Impairment of indefinite life intangible assets (3,894 ) - - - - (3,894 ) Amortization expense - - (7,710 ) (269,208 ) (11,532 ) (288,450 ) Balance June 30, 2016 $ 11,314,043 $ 1,876,930 $ 64,250 $ 6,431,929 $ 630,416 $ 20,317,568 A summary of acquired intangible assets for the six months ended June 30, 2016 is as follows: Surname domain names Direct navigation domain names Brand Customer relationships Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 15 years Balances, December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 $ 14,469,677 Acquisition of customer relationships - - - 6,250,570 - 6,250,570 Additions to/(disposals from) domain portfolio, net (3,570 ) (17,251 ) - - - (20,821 ) Impairment of indefinite life intangible assets (21,742 ) (3,137 ) - - - (24,879 ) Amortization expense - - (15,420 ) (318,495 ) (23,064 ) (356,979 ) Balance June 30, 2016 $ 11,314,043 $ 1,876,930 $ 64,250 $ 6,431,929 $ 630,416 $ 20,317,568 The following table shows the estimated amortization expense for each of the next 5 years, assuming no further additions to acquired intangible assets are made: Year ending December 31, Remainder of 2016 $ 583,758 2017 1,167,516 2018 1,063,076 2019 939,528 2020 939,528 Thereafter 2,433,189 Total $ 7,126,595 As of June 30, 2016, the accumulated amortization for the definite life intangible assets was $6.3 million. With regard to indefinite life intangible assets, as part of our normal renewal process we assessed that certain domain names that were acquired in the June 2006 acquisition of Mailbank.com Inc. and that were up for renewal should not be renewed. Accordingly, for the three months ended June 30, 2016, domain names, with a book value of $3,894 (three months ended June 30, 2015 - $37,805) were not renewed and were recorded as an impairment of indefinite life intangible assets. For the six months ended June 30, 2016, domain names, with a book value of $24,879 (six months ended June 30, 2015 - $50,298), were not renewed and were recorded as an impairment of indefinite life intangible assets. On April 1, 2016, the Company acquired the international reseller channel from Melbourne IT Limited for consideration of $6.0 million, excluding legal and registry related transaction costs of $0.2 million. The acquired assets were funded through a $6.0 million advance under the 2012 Demand Loan Facilities on March 31, 2016. These assets have been assigned to Other Intangible Assets, Customer Relationships and will be amortized over 7 years. |
Note 6 - Loan Payable
Note 6 - Loan Payable | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. 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 the Company’s 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. During the three months ended June 30, 2016, $6.0 million was drawn down on the 2012 DLR Loan to support the April 1, 2016 acquisition of the international reseller channel of Melbourne IT Limited. At June 30, 2016, the outstanding balance under the 2012 DLR Loan was $6.0 million (December 31, 2015 - $3.5 million). At June 30, 2016, the outstanding balance under the 2012 DLRR Loan was $3.1 million (December 31, 2015 – nil). Credit facility renegotiaion costs of $0.1 million have been reflected in other assets. 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 June 30, 2016, the Company held contracts in the amount of $11.0 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 June 30, 2016, 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 $5 million per year, which limit will be reviewed on an annual basis. As at and for the period ended June 30, 2016, the Company was in compliance with these covenants. |
Note 7 - Income Taxes
Note 7 - Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. Income taxes For the three months ended June 30, 2016, the Company recorded a provision for income taxes of $2.1 million on income before income taxes of $6.1 million, using an estimated effective tax rate for the fiscal year ending December 31, 2016 (“Fiscal 2016”) adjusted for certain minimum state taxes. Comparatively, for the three months ended June 30, 2015, the Company recorded a provision for income taxes of $1.5 million on income before taxes of $3.8 million, using an estimated effective tax rate for the 2015 fiscal year. For the six months ended June 30, 2016, the Company recorded a provision for income taxes of $4.0 million on income before income taxes of $12.5 million, using an estimated effective tax rate for Fiscal 2016 adjusted for certain minimum state taxes. Comparatively, for the six months ended June 30, 2015, the Company recorded a provision for income taxes of $3.0 million on income before taxes of $8.2 million, using an estimated effective tax rate for its fiscal year ending December 31, 2015. In assessing the realizability of deferred tax assets, the Company 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. The Company considers projected future taxable income, uncertainties related to the industry in which we operate, and tax planning strategies in making this assessment. The Company follows the provisions of FASB ASC Topic 740, Income Taxes to account for income tax exposures. The application of this interpretation requires a two-step process that separates recognition of uncertain tax benefits from measurement thereof. The Company had approximately $0.1 million of total gross unrecognized tax benefit as of June 30, 2016 and as of December 31, 2015, 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. The Company recognizes accrued interest and penalties related to income taxes in income tax expense. The Company did not have significant interest and penalties accrued at June 30, 2016 and December 31, 2015, respectively. |
Note 8 - Acquisitions
Note 8 - Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 8. Acquisitions: On February 27, 2015, Ting Fiber, Inc., one of our wholly owned subsidiaries, acquired a 70% ownership interest in the newly formed Ting Virginia, LLC and its subsidiaries, Blue Ridge Websoft, LLC (doing business as Blue Ridge Internet Works), Fiber Roads, LLC and Navigator Network Services, LLC (the “BRI Group”) for consideration of approximately $3.5 million. The Company advanced in escrow $3,125,000 during the year ended December 31, 2014, and paid the remaining purchase price of $357,493 during the year ended December 31, 2015. Ting Virginia, LLC was an independent Internet service provider in Charlottesville, Virginia, doing business primarily as Blue Ridge Internet Works. The BRI Group provides high speed internet access, Internet hosting and network consulting services to over 3,000 customers in central Virginia. The purchase price was primarily satisfied through an advance under our 2012 DLR Loan facility. Ting Fiber Inc. and the selling shareholders (the “Minority Shareholders”) also agreed to certain put and call options with regard to the remaining 30% interest in Ting Virginia, LLC retained by the Minority Shareholders. On the second anniversary of the closing date, Ting Fiber, Inc. may exercise a call option to purchase an additional 20% ownership interest in Ting Virginia, LLC. Contingent upon the exercise of the call option by Ting Fiber, Inc., the Minority Shareholders may exercise a put option within 7 days following the exercise of the call option by Ting Fiber, Inc., to sell their remaining 10% ownership interest in Ting Virginia, LLC. The consideration to be exchanged for the shares acquired or sold under the options shall be $100,000 per percentage point of the additional equity interest acquired. In addition, on the fourth anniversary of the closing date, the Minority Shareholders may exercise a put option under which Ting Fiber, Inc. shall be obligated to purchase the Minority Shareholders’ remaining interest for $120,000 per percentage point of the additional equity interest acquired. The Company has determined that the put options described above are embedded within the non-controlling interest shares that are subject to the put options. The redemption feature requires classification of the Minority Shareholders’ Interest in the Consolidated Balance Sheets outside of equity under the caption “Redeemable non-controlling interest”. The present value of the liability at the acquisition date was $3,000,000 and is being accreted to the estimated liability amount using a discount rate of 5% over a period of four years from the acquisition date. During the three and six months ended June 30, 2016, this amount was increased by $12,348 and $24,646, respectively, ($12,150 for the three and six months ended June 30, 2015) to $3,061,244, to reflect the present value of this Redeemable non-controlling interest as at June 30, 2016. The purchase consideration is comprised as follows: Cash $ 3,135,140 Less refund from working capital adjustment (50,000 ) Repayment of debt 418,775 Redeemable non-controlling interest 3,000,000 $ 6,503,915 The following table represents the finalized purchase price allocation based on the fair values of the assets Current assets (including cash of $21,423) $ 338,577 Current liabilities (529,702 ) Property and equipment, including: Fiber network 3,456,024 Computer equipment 200,000 Furniture and equipment 5,000 Vehicles 92,000 Leasehold improvements 50,000 Intangible assets, including: Network rights 692,000 Customer equipment and installations 68,000 Goodwill 2,132,016 Net assets acquired $ 6,503,915 |
Note 9 - Basic and Diluted Earn
Note 9 - Basic and Diluted Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. Basic and diluted earnings per common share: Basic earnings per common share has been calculated by dividing net income for the period by the weighted average number of common shares outstanding during each period. Diluted earnings per share has been calculated by dividing net income for the period by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. 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 shares equivalents or the proceeds of option exercises. The following table is a summary of the basic and diluted earnings per common share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per common share: Net income for the period $ 4,070,786 $ 2,284,995 $ 8,509,024 $ 5,118,938 Denominator for basic and diluted earnings per scommon share: Basic weighted average number of common shares outstanding 10,541,659 11,047,136 10,607,843 11,094,618 Effect of outstanding stock options 192,201 409,534 189,615 423,487 Diluted weighted average number of shares outstanding 10,733,860 11,456,670 10,797,458 11,518,105 Basic earnings per common share $ 0.39 $ 0.21 $ 0.80 $ 0.46 Diluted earnings per common share $ 0.38 $ 0.20 $ 0.79 $ 0.44 For the three months ended June 30, 2016, outstanding options to purchase 76,800 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares. For the six months ended June 30, 2016, outstanding options to purchase 126,800 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares. During the three and six months ended June 30, 2016, 209,698 and 308,416 common shares were repurchased and cancelled under the terms of our stock repurchase program announced in February 2016. During the three and six months ended June 30, 2015, 25,413 and 239,502 common shares were repurchased and cancelled under the terms of our stock repurchase program announced in February 2015. During the six months ended June 30, 2015, 193,907 common shares were repurchased and cancelled under the terms of a modified Dutch auction tender offer announced in December 2014 and concluded in January 2015. The computation of earnings per share and diluted earnings per share for the three and six months ended June 30, 2016 and 2015 include reductions in the number of shares outstanding due to these repurchases. |
Note 10 - Segment Reporting
Note 10 - Segment Reporting | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. Segment reporting: (a) We are organized and managed based on three operating segments which are differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate and are described as follows: 1. Network Access - Mobile Services - This segment derives revenue from the sale of mobile phones and telephony services to individuals and small businesses through the Ting website. Revenues are generated in the United States. 2. Network Access - Other Services - This segment derives revenue from the provisioning of high speed Internet access, Internet hosting and consulting services. Revenues are generated in the United States. 3. 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. 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, amortization of intangibles assets, 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. Information by reportable segments, which is regularly reported to the chief operating decision maker is as follows: Network Access (1) Domain Name Services Consolidated Totals Three months ended June 30, 2016 Mobile Services Other Services Net Revenues $ 18,026,420 972,123 28,467,838 $ 47,466,381 Cost of revenues Cost of revenues 9,380,533 528,957 19,940,171 29,849,661 Network expenses 35,999 183,799 1,185,028 1,404,826 Depreciation of property and equipment - 211,382 139,538 350,920 Amortization of intangible assets - 11,532 - 11,532 Total cost of revenues 9,416,532 935,670 21,264,737 31,616,939 Gross Profit 8,609,888 36,453 7,203,101 15,849,442 Expenses: Sales and marketing 5,435,033 Technical operations and development 998,651 General and administrative 2,926,608 Depreciation of property and equipment 76,922 Amortization of intangible assets 276,918 Impairment of indefinite life intangible assets 3,894 Loss on currency forward contracts (8,711 ) Income from operations 6,140,127 Other income (expensees), net 8,292 Income before provision for income taxes $ 6,148,419 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. Network Access (1) Domain Name Services Consolidated Totals Three months ended June 30, 2015 Mobile Services Other Services Net Revenues $ 14,351,903 1,066,066 27,471,251 $ 42,889,220 Cost of revenues Cost of revenues 7,996,331 502,306 19,752,035 28,250,672 Network expenses 26,265 199,077 1,269,496 1,494,838 Depreciation of property and equipment - 104,921 175,008 279,929 Amortization of intangible assets - 11,532 - 11,532 Total cost of revenues 8,022,596 817,836 21,196,539 30,036,971 Gross Profit 6,329,307 248,230 6,274,712 12,852,249 Expenses: Sales and marketing 4,847,963 Technical operations and development 1,189,276 General and administrative 2,750,466 Depreciation of property and equipment 62,022 Amortization of intangible assets 56,997 Impairment of indefinite life intangible assets 37,805 Loss on currency forward contracts 25,227 Income from operations 3,882,493 Other income (expensees), net (57,402 ) Income before provision for income taxes $ 3,825,091 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. Network Access (1) Domain Name Services Consolidated Totals Six months ended June 30, 2016 Mobile Services Other Services Net Revenues $ 34,970,490 1,867,185 56,239,119 $ 93,076,794 Cost of revenues Cost of revenues 17,938,968 959,554 39,801,612 58,700,134 Network expenses 73,150 361,172 2,203,435 2,637,757 Depreciation of property and equipment - 397,062 300,611 697,673 Amortization of intangible assets - 23,064 - 23,064 Total cost of revenues 18,012,118 1,740,852 42,305,658 62,058,628 Gross Profit 16,958,372 126,333 13,933,461 31,018,166 Expenses: Sales and marketing 10,720,657 Technical operations and development 2,175,011 General and administrative 5,331,535 Depreciation of property and equipment 150,190 Amortization of intangible assets 333,915 Impairment of indefinite life intangible assets 24,879 Loss on currency forward contracts (119,468 ) Income from operations 12,401,447 Other income (expensees), net 90,940 Income before provision for income taxes $ 12,492,387 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. Network Access (1) Domain Name Services Consolidated Totals Six months ended June 30, 2015 Mobile Services Other Services Net Revenues $ 26,911,135 1,433,848 55,012,070 $ 83,357,053 Cost of revenues Cost of revenues 15,126,180 717,614 39,228,252 55,072,046 Network expenses 38,168 260,590 2,418,176 2,716,934 Depreciation of property and equipment - 133,811 345,760 479,571 Amortization of intangible assets - 15,456 - 15,456 Total cost of revenues 15,164,348 1,127,471 41,992,188 58,284,007 Gross Profit 11,746,787 306,377 13,019,882 25,073,046 Expenses: Sales and marketing 8,647,138 Technical operations and development 2,303,471 General and administrative 5,218,488 Depreciation of property and equipment 121,284 Amortization of intangible assets 110,212 Impairment of indefinite life intangible assets 50,298 Loss on currency forward contracts 329,251 Income from operations 8,292,904 Other income (expensees), net (82,177 ) Income before provision for income taxes $ 8,210,727 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. (b) The following is a summary of the Company’s revenue earned from each significant revenue stream: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Network Access Services: Mobile Services $ 18,026,420 $ 14,351,903 $ 34,970,490 $ 26,911,135 Other Services 972,123 1,066,066 1,867,185 1,433,848 Total Network Access Services 18,998,543 15,417,969 36,837,675 28,344,983 Domain Services: Wholesale Domain Services 21,698,720 21,286,863 42,969,585 42,461,994 Value Added Services 2,309,621 2,355,837 4,612,054 4,597,835 Total Wholesale 24,008,341 23,642,700 47,581,639 47,059,829 Retail 3,556,140 3,009,465 6,970,772 5,885,193 Portfolio 903,357 819,086 1,686,708 2,067,048 Total Domain Services 28,467,838 27,471,251 56,239,119 55,012,070 $ 47,466,381 $ 42,889,220 $ 93,076,794 $ 83,357,053 During the three and six months ended June 30, 2016 and 2015, no customer accounted for more than 10% of total revenue. As at June 30, 2016, no customer accounted for more than 10% of accounts receivable and two customers accounted for 21% accounts receivable as at June 30, 2015. (c) The following is a summary of the Company’s cost of revenues from each significant revenue stream: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Network Access Services: Mobile Services $ 9,380,533 $ 7,996,331 $ 17,938,968 $ 15,126,180 Other Services 528,957 502,306 959,554 717,614 Total Network Access Services 9,909,490 8,498,637 18,898,522 15,843,794 Domain Services: Wholesale Domain Services 17,645,470 17,744,966 35,288,241 35,291,293 Value Added Services 451,604 501,518 930,986 1,037,650 Total Wholesale 18,097,074 18,246,484 36,219,227 36,328,943 Retail 1,639,755 1,322,620 3,218,081 2,543,120 Portfolio 203,342 182,931 364,304 356,189 Total Domain Services 19,940,171 19,752,035 39,801,612 39,228,252 Network Expenses: Network, other costs 1,404,826 1,494,838 2,637,757 2,716,934 Network, depreciation and amortization costs 362,452 291,461 720,737 495,027 1,767,278 1,786,299 3,358,494 3,211,961 $ 31,616,939 $ 30,036,971 $ 62,058,628 $ 58,284,007 (d) The following is a summary of the Company’s property and equipment by geographic region: June 30 , 2016 December 31, 2015 Canada $ 1,017,649 $ 1,225,236 United States 6,809,041 5,847,666 Germany 113,294 53,774 $ 7,939,984 $ 7,126,676 (e) The following is a summary of the Company’s amortizable intangible assets by geographic region: June 30, 2016 December 31, 2015 Canada $ 6,030,650 $ - United States 668,195 702,594 Germany 427,750 530,410 $ 7,126,595 $ 1,233,004 (f) The following is a summary of the Company’s deferred tax asset by geographic region: June 30, 2016 December 31, 2015 Canada $ 6,339,848 $ 7,621,092 $ 6,339,848 $ 7,621,092 (g) Valuation and qualifying accounts: Allowance for doubtful accounts Balance at beginning of period Charged to (recovered) costs and expenses Write-offs during period Balance at end of period Six months ended June 30, 2016 $ 122,095 $ 25,698 $ - $ 147,793 Year ended December 31, 2015 $ 125,766 $ (3,671 ) $ - $ 122,095 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 11. Commitments and contingencies: The Company is involved in various legal claims and lawsuits in connection with its ordinary business operations. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions or claims outstanding or pending as of June 30, 2016 cannot be predicted with certainty, management does not believe that the resolution of these claims, individually or in the aggregate, will have a material adverse effect on the Company's financial position. |
Note 12 - Other Income, Net
Note 12 - Other Income, Net | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 12. Other income, net: In February 2015, we 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. Under the terms of the agreement, the Company has undertaken to provide certain marketing support for .online registry and has agreed to certain volume commitments during the term of the agreement. The Joint Marketing Agreement is for a term of three years and commenced in November 2015. The Company generated a gain of $1.5 million for waiving its rights and entering the Joint Marketing Agreement. The gain is being recognized over the term of three years. An amount of $0.1 million of this gain was recognized during the three months ended June 30, 2016 and $0.3 million of the gain for the six months ended June 30, 2016 (the amount was $0 for the three and six months ended June 30, 2015). |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 13. Stockholders’ Equity: The following unaudited table summarizes stockholders' equity transactions for the three month period ended June 30, 2016: Common stock Additional paid in Retained earnings Accumulated other comprehensive Total stockholders' Number Amount capital (deficit) income (loss) equity Balances, March 31, 2016 10,594,733 $ 14,445,114 $ 6,676,096 $ 8,807,789 $ (225,932 ) $ 29,703,067 Exercise of stock options 51,963 137,176 (97,438 ) - - 39,738 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (14,545 ) - (205,548 ) - - (205,548 ) Repurchase and retirement of shares (note 13) (209,698 ) (286,383 ) (4,713,595 ) - - (4,999,978 ) Income tax effect related to stock options exercised - - 384,839 - - 384,839 Stock-based compensation (note 14) - - 190,187 - - 190,187 Net income - - - 4,070,786 - 4,070,786 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - (12,348 ) - (12,348 ) Other comprehensive income (loss) - - - - 106,631 106,631 Balances, June 30, 2016 10,422,453 $ 14,295,907 $ 2,234,541 $ 12,866,227 $ (119,301 ) $ 29,277,374 The following unaudited table summarizes stockholders' equity transactions for the six month period ended June 30, 2016: Common stock Additional paid in Retained earnings Accumulated other comprehensive Total stockholders' Number Amount capital (deficit) income (loss) equity Balances, December 31, 2015 10,685,599 $ 14,530,633 $ 8,526,395 $ 4,381,849 $ (1,109,452 ) $ 26,329,425 Exercise of stock options 63,537 185,913 (126,617 ) - - 59,296 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (18,267 ) - (242,233 ) - - (242,233 ) Repurchase and retirement of shares (note 13) (308,416 ) (420,639 ) (6,759,618 ) - - (7,180,257 ) Income tax effect related to stock options exercised - - 446,199 - - 446,199 Stock-based compensation (note 14) - - 390,415 - - 390,415 Net income - - - 8,509,024 - 8,509,024 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - (24,646 ) - (24,646 ) Other comprehensive income (loss) - - - - 990,151 990,151 Balances, June 30, 2016 10,422,453 $ 14,295,907 $ 2,234,541 $ 12,866,227 $ (119,301 ) $ 29,277,374 On February 9, 2016, the Company announced that its Board of Directors had approved a stock buyback program to repurchase up to $40 million of its common stock in the open market. Purchases will be made exclusively through the facilities of the NASDAQ Capital Market. The stock buyback program commenced on February 10, 2016 and will terminate on or before February 9, 2017. The Company repurchased 209,698 and 308,416 shares under this program for the three and six months ended June 30, 2016 for a total of $5.0 million and $7.2 million, respectively. On February 11, 2015, the Company announced that its Board of Directors had approved a stock buyback program to repurchase up to $20 million of its common stock in the open market. Purchases were made exclusively through the facilities of the NASDAQ Capital Market. The stock buyback program commenced on February 16, 2015 and was terminated on February 9, 2016. The Company did not repurchase any shares under this program during the six months ended June 30, 2016. The Company repurchased 25,413 and 239,502 shares under this program during the three and six months ended June 30, 2015 for a total of $0.5 million and $4.5 million, respectively. On January 7, 2015, the Company announced that it successfully concluded the Tender Offer that was previously announced on December 8, 2014. Under the terms of the offer, for the six months ended June 30, 2015, 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 $3.6 million, excluding transaction costs of approximately $70,000. All shares purchased in the Tender Offer received the same price and all shares repurchased were immediately retired. |
Note 14 - Share-based Payments
Note 14 - Share-based Payments | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 14. Share-based payments (a) Stock options The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model, consistent with the guidance on stock compensation. 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 our common shares at the date of grant. Details of stock option transactions for the three months ended June 30, 2016 and June 30, 2015 are as follows: Three months ended June 30 , 2016 Three months ended June 30 , 2015 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 550,641 $ 10.48 943,323 $ 6.23 Granted 8,000 23.37 - - Exercised (51,963 ) 3.52 (112,656 ) 2.66 Forfeited (4,088 ) 23.83 (1,716 ) 13.15 Expired - - (1,875 ) 2.40 Outstanding, end of period 502,590 11.30 827,076 6.69 Options exercisable, end of period 298,343 $ 7.08 581,433 $ 4.58 Details of stock option transactions for the six months ended June 30, 2016 and June 30, 2015 are as follows: Six months ended June 30 , 2016 Six months ended June 30 , 2015 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 513,366 $ 9.24 976,062 $ 6.23 Granted 63,000 21.21 45,000 19.41 Exercised (63,537 ) 3.72 (187,653 ) 2.92 Forfeited (9,489 ) 17.23 (4,458 ) 12.46 Expired (750 ) 3.76 (1,875 ) 2.40 Outstanding, end of period 502,590 11.30 827,076 6.69 Options exercisable, end of period 298,343 $ 7.08 581,433 $ 4.58 As of June 30, 2016, the exercise prices, weighted average remaining contractual life and intrinsic values of outstanding options were as follows: Options outstanding Options exercisable Exercise price Number outstanding Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Number exercisable Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value $2.80 - 4.48 90,513 $ 2.97 1.3 $ 1,936,426 90,513 $ 2.97 1.3 $ 1,936,426 $5.52 - 8.92 178,177 6.63 2.9 3,158,294 154,755 6.51 2.8 2,761,971 $10.16 - 14.67 29,375 10.83 4.2 397,394 10,625 12.02 3.9 131,144 $15.51 - 19.95 132,775 17.35 5.1 930,368 42,450 16.67 4.4 326,578 $21.10 - 24.96 71,750 22.36 5.9 154,620 - - - - 502,590 $ 11.30 3.7 $ 6,577,102 298,343 $ 7.08 2.6 $ 5,156,119 Total unrecognized compensation cost relating to unvested stock options at June 30, 2016, prior to the consideration of expected forfeitures, was approximately $1,336,707 and is expected to be recognized over a weighted average period of 2.1 years. The Company recorded stock-based compensation of $190,187 and $390,415 for the three and six months ended June 30, 2016 and 2015 and $124,605 and $249,653 for the three and six months ended June 30, 2015, respectively. The Company has not capitalized any stock-based compensation expense as part of the cost of an asset. |
Note 15 - Fair Value Measuremen
Note 15 - Fair Value Measurement | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 15. Fair value measurement ASC Topic 820, “ Fair Value Measurements and Disclosures” The following table provides a summary of the fair values of the Company's derivative instrument assets and liabilities measured at fair value on a recurring basis at June 30, 2016: June 30, 2016 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset $ - $ 73,617 $ - $ 73,617 Derivative instrument liability $ - $ (294,170 ) $ - $ (294,170 ) The following table provides a summary of the fair values of the Company's derivative instrument assets measured at fair value on a recurring basis as at December 31, 2015: December 31, 2015 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset $ - $ - $ - $ - Derivative instrument liability $ - $ (2,027,086 ) $ - $ (2,027,086 ) The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits, loan payable and accrued liabilities approximate their fair values due to the relatively short periods to maturity of the instruments. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | (a) Revenue recognition The Company’s revenues are derived from domain name registration fees on both a wholesale and retail basis, the sale of domain names, the provisioning of other Internet services and advertising and other revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. The Company earns registration fees in connection with each new, renewed and transferred-in registration and from providing provisioning of other Internet services to resellers and registrars on a monthly basis. Service has been provided in connection with registration fees once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards. Domain names are generally purchased for terms of one to ten years. Registration fees charged for domain name registration and provisioning services are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned for annual periods or longer, are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned on a monthly basis are recognized as services are provided. For arrangements with multiple deliverables, the Company allocates revenue to each deliverable if the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The fair value of the selling price for a deliverable is determined using a hierarchy of (1) Company specific objective and reliable evidence, then (2) third-party evidence, then (3) best estimate of selling price. The Company allocates any arrangement fee to each of the elements based on their relative selling prices. Revenue generated from the sale of domain names, earned from transferring the rights to domain names under the Company’s control, are recognized once the rights have been transferred and payment has been received in full. The Company derives revenues from the provisioning of mobile phone and fixed Internet access services primarily through its Ting website. These revenues are recognized once services have been provided. Revenues for wireless services are billed based on the actual amount of monthly services utilized by each customer during their billing cycle on a postpaid basis. The Company’s billing cycle for each customer is computed based on the customer’s activation date. As a result, the Company estimates the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting period. In addition, revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. The Company also generates advertising and other revenue through its online libraries of shareware, freeware and online services presented on its website. Advertising revenue includes revenue derived from cost per action advertising links we display 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 Tucows.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. |
Property, Plant and Equipment, Policy [Policy Text Block] | (b) 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 33 1/3 - 100% Furniture and equipment 20% Vehicles and tools 20% Fiber network (years) 15 Customer equipment and installations (years) 3 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 their eventual disposition is less than their carrying amount, they are 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. Additions to the fiber network are recorded at cost, including all material, labor, vehicle and installation and construction costs and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the fiber network level and not on a specific asset basis. For assets that are retired, the estimated historical cost and related accumulated depreciation is removed. |
Derivatives, Policy [Policy Text Block] | (c) Derivative Financial Instruments During the three and six months ended June 30, 2016 and the year ended December 31, 2015 ("Fiscal 2015"), the Company used derivative financial instruments to manage foreign currency exchange risk. The Company accounts for these instruments in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 815, “Derivatives and Hedging” ("Topic 815"), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Topic 815 also requires that changes in the 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 the 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 is determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company's and the counterparty's 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. The discounted cash flow techniques use observable market inputs, such as foreign currency spot and forward rates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Adopted On January 1, 2016, the Company adopted Accounting Standards Updates ("ASU") No. 2015-16, Business Combinations (Topic 805) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Interest Imputation of Interest Subtopic 835-30 On January 1, 2016, the Company elected to early adopt Accounting Standard Update No. 2015-17, Income Taxes (Topic 740) Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued FASB ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Overall (Subtopic 825-10) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The new standard provides a single principles-based, five-step model to be applied to all contracts with customers, which steps are to (1) identify the contract(s) with the customer, (2) identify the performance obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contracts and (5) recognize revenue when each performance obligation is satisfied. More specifically, revenue will be recognized when promised goods or services are transferred to the customer in an amount that reflects the consideration expected in exchange for those goods or services. ASU 2014-09 was set to be effective for interim and annual periods beginning after December 15, 2016. On July 9, 2015, the FASB voted to defer the effective date by one year, such that the new standard will be effective for the Company for the interim and annual reporting periods beginning after December 15, 2017 (January 1, 2018 for the Company). In March 2016, FASB issued ASU No. 2016-08 clarifying the implementation guidance on principal versus agent considerations. In April 2016, FASB issued ASU. No 2016-10 providing further guidance on identifying performance obligations and licensing. In May 2016, FASB issued ASU. No 2016-12 providing guidance related revenue recognition and consideration received. Early adoption of these standards is permitted but not before the original effective date. Companies can transition to the standards either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company does not intend to adopt the standards early and is currently in the process of evaluating the impact that the adoption of ASU 2014-09, ASU 2016-08, ASU 2016-10 and ASU 2016-12 will have on its consolidated financial statements and the selected method of transition to the new standard. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Depreciation Rates [Table Text Block] | Asset Rate Computer equipment 30% Computer software 33 1/3 - 100% Furniture and equipment 20% Vehicles and tools 20% Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease |
Note 4 - Derivative Instrumen25
Note 4 - Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Derivative Instruments [Table Text Block] | Maturity date Notional amount of U.S. dollars Weighted average exchange rate of U.S. dollars Fair value July - September 2016 6,002,500 1.2554 (190,264 ) October - December 2016 4,952,500 1.2885 (30,289 ) $ 10,955,000 1.2703 $ (220,553 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives Balance Sheet As of June 30 , 2016 Fair Value Asset (Liability) As of December 31, 2015 Fair Value Asset (Liability) Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ (187,169 ) $ (1,721,683 ) Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ (33,384 ) $ (305,403 ) Total foreign currency forward contracts Derivative instruments $ (220,553 ) $ (2,027,086 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – March 31, 2016 $ (354,459 ) $ 128,527 $ (225,932 ) Other comprehensive income (loss) before reclassifications 42,774 (15,510 ) 27,264 Amount reclassified from accumulated other comprehensive income 124,516 (45,149 ) 79,367 Other comprehensive income (loss) for the three months ended June 30, 2016 167,290 (60,659 ) 106,631 Ending AOCI balance – June 30, 2016 $ (187,169 ) $ 67,868 $ (119,301 ) Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Other comprehensive income (loss) before reclassifications 883,551 (308,324 ) 575,227 Amount reclassified from accumulated other comprehensive income 650,963 (236,039 ) 414,924 Other comprehensive income (loss) for the six months ended June 30, 2016 1,534,514 (544,363 ) 990,151 Ending AOCI balance – June 30, 2016 $ (187,169 ) $ 67,868 $ (119,301 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivatives in Cash Flow Hedging Relationship 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, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (88,441 ) Operating expenses $ — Foreign currency forward contracts for the three months ended June 30, 2016 $ 106,631 Cost of revenues (36,075 ) Cost of revenues — Operating expenses $ (418,444 ) Operating expenses $ (8,741 ) Foreign currency forward contracts for the three months ended June 30, 2015 $ 333,909 Cost of revenues (158,768 ) Cost of revenues — Derivatives in Cash Flow Hedging Relationship 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, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (460,830 ) Operating expenses $ (47,242 ) Foreign currency forward contracts for the six months ended June 30, 2016 $ 990,151 Cost of revenues (142,891 ) Cost of revenues — Operating expenses $ (886,461 ) Operating expenses $ (31,323 ) Foreign currency forward contracts for the six months ended June 30, 2015 $ (210,883 ) Cost of revenues (336,428 ) Cost of revenues — |
Note 5 - Goodwill and Other I26
Note 5 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | June 30, 2016 December 31, 2015 Boardtown Corporation $ 2,044,847 $ 2,044,847 Hosted Messaging Assets of Critical Path 4,072,297 4,072,297 Innerwise Inc. 5,801,040 5,801,040 Mailbank.com Inc. 6,072,623 6,072,623 EPAG Domainservices GmbH 882,320 882,320 Ting Fiber Inc. 1,426,893 1,426,893 Ting Virginia Inc. 705,123 705,123 Total $ 21,005,143 $ 21,005,143 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Surname domain names Direct navigation domain names Brand Customer relationships Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 15 years Balances, March 31, 2016 $ 11,319,560 $ 1,887,908 $ 71,960 $ 450,567 $ 641,948 $ 14,371,943 Acquisition of customer relationships - - - 6,250,570 - 6,250,570 Additions to/(disposals from) domain portfolio, net (1,623 ) (10,978 ) - - - (12,601 ) Impairment of indefinite life intangible assets (3,894 ) - - - - (3,894 ) Amortization expense - - (7,710 ) (269,208 ) (11,532 ) (288,450 ) Balance June 30, 2016 $ 11,314,043 $ 1,876,930 $ 64,250 $ 6,431,929 $ 630,416 $ 20,317,568 Surname domain names Direct navigation domain names Brand Customer relationships Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 15 years Balances, December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 $ 14,469,677 Acquisition of customer relationships - - - 6,250,570 - 6,250,570 Additions to/(disposals from) domain portfolio, net (3,570 ) (17,251 ) - - - (20,821 ) Impairment of indefinite life intangible assets (21,742 ) (3,137 ) - - - (24,879 ) Amortization expense - - (15,420 ) (318,495 ) (23,064 ) (356,979 ) Balance June 30, 2016 $ 11,314,043 $ 1,876,930 $ 64,250 $ 6,431,929 $ 630,416 $ 20,317,568 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Remainder of 2016 $ 583,758 2017 1,167,516 2018 1,063,076 2019 939,528 2020 939,528 Thereafter 2,433,189 Total $ 7,126,595 |
Note 8 - Acquisitions (Tables)
Note 8 - Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Business Acquisition, Purchase Consideration [Table Text Block] | Cash $ 3,135,140 Less refund from working capital adjustment (50,000 ) Repayment of debt 418,775 Redeemable non-controlling interest 3,000,000 $ 6,503,915 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets (including cash of $21,423) $ 338,577 Current liabilities (529,702 ) Property and equipment, including: Fiber network 3,456,024 Computer equipment 200,000 Furniture and equipment 5,000 Vehicles 92,000 Leasehold improvements 50,000 Intangible assets, including: Network rights 692,000 Customer equipment and installations 68,000 Goodwill 2,132,016 Net assets acquired $ 6,503,915 |
Note 9 - Basic and Diluted Ea28
Note 9 - Basic and Diluted Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per common share: Net income for the period $ 4,070,786 $ 2,284,995 $ 8,509,024 $ 5,118,938 Denominator for basic and diluted earnings per scommon share: Basic weighted average number of common shares outstanding 10,541,659 11,047,136 10,607,843 11,094,618 Effect of outstanding stock options 192,201 409,534 189,615 423,487 Diluted weighted average number of shares outstanding 10,733,860 11,456,670 10,797,458 11,518,105 Basic earnings per common share $ 0.39 $ 0.21 $ 0.80 $ 0.46 Diluted earnings per common share $ 0.38 $ 0.20 $ 0.79 $ 0.44 |
Note 10 - Segment Reporting (Ta
Note 10 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Network Access (1) Domain Name Services Consolidated Totals Three months ended June 30, 2016 Mobile Services Other Services Net Revenues $ 18,026,420 972,123 28,467,838 $ 47,466,381 Cost of revenues Cost of revenues 9,380,533 528,957 19,940,171 29,849,661 Network expenses 35,999 183,799 1,185,028 1,404,826 Depreciation of property and equipment - 211,382 139,538 350,920 Amortization of intangible assets - 11,532 - 11,532 Total cost of revenues 9,416,532 935,670 21,264,737 31,616,939 Gross Profit 8,609,888 36,453 7,203,101 15,849,442 Expenses: Sales and marketing 5,435,033 Technical operations and development 998,651 General and administrative 2,926,608 Depreciation of property and equipment 76,922 Amortization of intangible assets 276,918 Impairment of indefinite life intangible assets 3,894 Loss on currency forward contracts (8,711 ) Income from operations 6,140,127 Other income (expensees), net 8,292 Income before provision for income taxes $ 6,148,419 Network Access (1) Domain Name Services Consolidated Totals Three months ended June 30, 2015 Mobile Services Other Services Net Revenues $ 14,351,903 1,066,066 27,471,251 $ 42,889,220 Cost of revenues Cost of revenues 7,996,331 502,306 19,752,035 28,250,672 Network expenses 26,265 199,077 1,269,496 1,494,838 Depreciation of property and equipment - 104,921 175,008 279,929 Amortization of intangible assets - 11,532 - 11,532 Total cost of revenues 8,022,596 817,836 21,196,539 30,036,971 Gross Profit 6,329,307 248,230 6,274,712 12,852,249 Expenses: Sales and marketing 4,847,963 Technical operations and development 1,189,276 General and administrative 2,750,466 Depreciation of property and equipment 62,022 Amortization of intangible assets 56,997 Impairment of indefinite life intangible assets 37,805 Loss on currency forward contracts 25,227 Income from operations 3,882,493 Other income (expensees), net (57,402 ) Income before provision for income taxes $ 3,825,091 Network Access (1) Domain Name Services Consolidated Totals Six months ended June 30, 2016 Mobile Services Other Services Net Revenues $ 34,970,490 1,867,185 56,239,119 $ 93,076,794 Cost of revenues Cost of revenues 17,938,968 959,554 39,801,612 58,700,134 Network expenses 73,150 361,172 2,203,435 2,637,757 Depreciation of property and equipment - 397,062 300,611 697,673 Amortization of intangible assets - 23,064 - 23,064 Total cost of revenues 18,012,118 1,740,852 42,305,658 62,058,628 Gross Profit 16,958,372 126,333 13,933,461 31,018,166 Expenses: Sales and marketing 10,720,657 Technical operations and development 2,175,011 General and administrative 5,331,535 Depreciation of property and equipment 150,190 Amortization of intangible assets 333,915 Impairment of indefinite life intangible assets 24,879 Loss on currency forward contracts (119,468 ) Income from operations 12,401,447 Other income (expensees), net 90,940 Income before provision for income taxes $ 12,492,387 Network Access (1) Domain Name Services Consolidated Totals Six months ended June 30, 2015 Mobile Services Other Services Net Revenues $ 26,911,135 1,433,848 55,012,070 $ 83,357,053 Cost of revenues Cost of revenues 15,126,180 717,614 39,228,252 55,072,046 Network expenses 38,168 260,590 2,418,176 2,716,934 Depreciation of property and equipment - 133,811 345,760 479,571 Amortization of intangible assets - 15,456 - 15,456 Total cost of revenues 15,164,348 1,127,471 41,992,188 58,284,007 Gross Profit 11,746,787 306,377 13,019,882 25,073,046 Expenses: Sales and marketing 8,647,138 Technical operations and development 2,303,471 General and administrative 5,218,488 Depreciation of property and equipment 121,284 Amortization of intangible assets 110,212 Impairment of indefinite life intangible assets 50,298 Loss on currency forward contracts 329,251 Income from operations 8,292,904 Other income (expensees), net (82,177 ) Income before provision for income taxes $ 8,210,727 |
Schedule of Operating Income by Revenue Stream [Table Text Block] | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Network Access Services: Mobile Services $ 18,026,420 $ 14,351,903 $ 34,970,490 $ 26,911,135 Other Services 972,123 1,066,066 1,867,185 1,433,848 Total Network Access Services 18,998,543 15,417,969 36,837,675 28,344,983 Domain Services: Wholesale Domain Services 21,698,720 21,286,863 42,969,585 42,461,994 Value Added Services 2,309,621 2,355,837 4,612,054 4,597,835 Total Wholesale 24,008,341 23,642,700 47,581,639 47,059,829 Retail 3,556,140 3,009,465 6,970,772 5,885,193 Portfolio 903,357 819,086 1,686,708 2,067,048 Total Domain Services 28,467,838 27,471,251 56,239,119 55,012,070 $ 47,466,381 $ 42,889,220 $ 93,076,794 $ 83,357,053 |
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Network Access Services: Mobile Services $ 9,380,533 $ 7,996,331 $ 17,938,968 $ 15,126,180 Other Services 528,957 502,306 959,554 717,614 Total Network Access Services 9,909,490 8,498,637 18,898,522 15,843,794 Domain Services: Wholesale Domain Services 17,645,470 17,744,966 35,288,241 35,291,293 Value Added Services 451,604 501,518 930,986 1,037,650 Total Wholesale 18,097,074 18,246,484 36,219,227 36,328,943 Retail 1,639,755 1,322,620 3,218,081 2,543,120 Portfolio 203,342 182,931 364,304 356,189 Total Domain Services 19,940,171 19,752,035 39,801,612 39,228,252 Network Expenses: Network, other costs 1,404,826 1,494,838 2,637,757 2,716,934 Network, depreciation and amortization costs 362,452 291,461 720,737 495,027 1,767,278 1,786,299 3,358,494 3,211,961 $ 31,616,939 $ 30,036,971 $ 62,058,628 $ 58,284,007 |
Schedule of Property Plant and Equipment by Geographic Region [Table Text Block] | June 30 , 2016 December 31, 2015 Canada $ 1,017,649 $ 1,225,236 United States 6,809,041 5,847,666 Germany 113,294 53,774 $ 7,939,984 $ 7,126,676 |
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | June 30, 2016 December 31, 2015 Canada $ 6,030,650 $ - United States 668,195 702,594 Germany 427,750 530,410 $ 7,126,595 $ 1,233,004 |
Schedule of Deferred Tax Asset Net By Geographic Region [Table Text Block] | June 30, 2016 December 31, 2015 Canada $ 6,339,848 $ 7,621,092 $ 6,339,848 $ 7,621,092 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for doubtful accounts Balance at beginning of period Charged to (recovered) costs and expenses Write-offs during period Balance at end of period Six months ended June 30, 2016 $ 122,095 $ 25,698 $ - $ 147,793 Year ended December 31, 2015 $ 125,766 $ (3,671 ) $ - $ 122,095 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Common stock Additional paid in Retained earnings Accumulated other comprehensive Total stockholders' Number Amount capital (deficit) income (loss) equity Balances, March 31, 2016 10,594,733 $ 14,445,114 $ 6,676,096 $ 8,807,789 $ (225,932 ) $ 29,703,067 Exercise of stock options 51,963 137,176 (97,438 ) - - 39,738 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (14,545 ) - (205,548 ) - - (205,548 ) Repurchase and retirement of shares (note 13) (209,698 ) (286,383 ) (4,713,595 ) - - (4,999,978 ) Income tax effect related to stock options exercised - - 384,839 - - 384,839 Stock-based compensation (note 14) - - 190,187 - - 190,187 Net income - - - 4,070,786 - 4,070,786 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - (12,348 ) - (12,348 ) Other comprehensive income (loss) - - - - 106,631 106,631 Balances, June 30, 2016 10,422,453 $ 14,295,907 $ 2,234,541 $ 12,866,227 $ (119,301 ) $ 29,277,374 Common stock Additional paid in Retained earnings Accumulated other comprehensive Total stockholders' Number Amount capital (deficit) income (loss) equity Balances, December 31, 2015 10,685,599 $ 14,530,633 $ 8,526,395 $ 4,381,849 $ (1,109,452 ) $ 26,329,425 Exercise of stock options 63,537 185,913 (126,617 ) - - 59,296 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (18,267 ) - (242,233 ) - - (242,233 ) Repurchase and retirement of shares (note 13) (308,416 ) (420,639 ) (6,759,618 ) - - (7,180,257 ) Income tax effect related to stock options exercised - - 446,199 - - 446,199 Stock-based compensation (note 14) - - 390,415 - - 390,415 Net income - - - 8,509,024 - 8,509,024 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - (24,646 ) - (24,646 ) Other comprehensive income (loss) - - - - 990,151 990,151 Balances, June 30, 2016 10,422,453 $ 14,295,907 $ 2,234,541 $ 12,866,227 $ (119,301 ) $ 29,277,374 |
Note 14 - Share-based Payments
Note 14 - Share-based Payments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Three months ended June 30 , 2016 Three months ended June 30 , 2015 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 550,641 $ 10.48 943,323 $ 6.23 Granted 8,000 23.37 - - Exercised (51,963 ) 3.52 (112,656 ) 2.66 Forfeited (4,088 ) 23.83 (1,716 ) 13.15 Expired - - (1,875 ) 2.40 Outstanding, end of period 502,590 11.30 827,076 6.69 Options exercisable, end of period 298,343 $ 7.08 581,433 $ 4.58 Six months ended June 30 , 2016 Six months ended June 30 , 2015 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 513,366 $ 9.24 976,062 $ 6.23 Granted 63,000 21.21 45,000 19.41 Exercised (63,537 ) 3.72 (187,653 ) 2.92 Forfeited (9,489 ) 17.23 (4,458 ) 12.46 Expired (750 ) 3.76 (1,875 ) 2.40 Outstanding, end of period 502,590 11.30 827,076 6.69 Options exercisable, end of period 298,343 $ 7.08 581,433 $ 4.58 |
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 outstanding Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Number exercisable Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value $2.80 - 4.48 90,513 $ 2.97 1.3 $ 1,936,426 90,513 $ 2.97 1.3 $ 1,936,426 $5.52 - 8.92 178,177 6.63 2.9 3,158,294 154,755 6.51 2.8 2,761,971 $10.16 - 14.67 29,375 10.83 4.2 397,394 10,625 12.02 3.9 131,144 $15.51 - 19.95 132,775 17.35 5.1 930,368 42,450 16.67 4.4 326,578 $21.10 - 24.96 71,750 22.36 5.9 154,620 - - - - 502,590 $ 11.30 3.7 $ 6,577,102 298,343 $ 7.08 2.6 $ 5,156,119 |
Note 15 - Fair Value Measurem32
Note 15 - Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 30, 2016 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset $ - $ 73,617 $ - $ 73,617 Derivative instrument liability $ - $ (294,170 ) $ - $ (294,170 ) December 31, 2015 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset $ - $ - $ - $ - Derivative instrument liability $ - $ (2,027,086 ) $ - $ (2,027,086 ) |
Note 2 - Basis of Presentatio33
Note 2 - Basis of Presentation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
General and Administrative Expense [Member] | Three Months Ended March 31, 2015 [Member] | Reclassification from Loss (Gain ) to General and Administrative Expense [Member] | ||
Prior Period Reclassification Adjustment | $ 0.6 | $ 1.2 |
Note 2 - Summary of Property, P
Note 2 - Summary of Property, Plant and Equipment Depreciation Rates (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Computer Equipment [Member] | ||
Depreciation rate | 30.00% | |
Computer Software [Member] | Minimum [Member] | ||
Depreciation rate | 33.33% | |
Computer Software [Member] | Maximum [Member] | ||
Depreciation rate | 100.00% | |
Furniture and Fixtures [Member] | ||
Depreciation rate | 20.00% | |
Vehicles and Tools [Member] | ||
Depreciation rate | 20.00% | |
Fiber Network [Member] | ||
Depreciation term | 15 years | |
Customer Equipment and Installations [Member] | ||
Depreciation term | 3 years | |
Depreciation term | ||
Leasehold improvements | Over term of lease |
Note 3 - Recent Accounting Pr35
Note 3 - Recent Accounting Pronouncements (Details Textual) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Reclassification from Current Portion of Deferred Tax Asset to Long Term Portion of Deferred Tax Asset [Member] | December 31, 2015 [Member] | |
Prior Period Reclassification Adjustment | $ 3,243,718 |
Note 4 - Derivative Instrumen36
Note 4 - Derivative Instruments and Hedging Activities (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | $ 9,300,000 | $ 20,400,000 | $ 9,300,000 | $ 20,400,000 |
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 28,977 | 100,000 | ||
Derivative, Gain (Loss) on Derivative, Net | 300,000 | 100,000 | ||
Forward Contracts [Member] | ||||
Derivative, Notional Amount | 11,000,000 | 24,000,000 | 11,000,000 | 24,000,000 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (21,008) | $ (100,000) | ||
Derivative, Gain (Loss) on Derivative, Net | (100,000) | $ (200,000) | ||
Derivative, Notional Amount | $ 10,955,000 | $ 10,955,000 |
Note 4 - Foreign Currency Forwa
Note 4 - Foreign Currency Forward Contracts (Details) | Jun. 30, 2016USD ($) |
Foreign Exchange Forward 1 [Member] | |
Derivative, Notional Amount | $ 6,002,500 |
Weighted average exchange rate of U.S. dollars | 1.2554 |
Fair value | $ (190,264) |
Foreign Exchange Forward 2 [Member] | |
Derivative, Notional Amount | $ 4,952,500 |
Weighted average exchange rate of U.S. dollars | 1.2885 |
Fair value | $ (30,289) |
Derivative, Notional Amount | $ 10,955,000 |
Weighted average exchange rate of U.S. dollars | 1.2703 |
Fair value | $ (220,553) |
Note 4 - Fair Value of Derivati
Note 4 - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Fair value | $ (187,169) | $ (1,721,683) |
Derivative Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair value | (33,384) | (305,403) |
Derivative Instruments [Member] | ||
Fair value | (220,553) | $ (2,027,086) |
Fair value | $ (220,553) |
Note 4 - Movement in AOCI Balan
Note 4 - Movement in AOCI Balance (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
AOCI balance | $ (354,459) | $ (1,721,683) | ||
AOCI balance | 128,527 | 612,231 | ||
AOCI balance | (225,932) | (1,109,452) | ||
Other comprehensive income (loss) before reclassifications | 42,774 | 883,551 | ||
Other comprehensive income (loss) before reclassifications | (15,510) | (308,324) | ||
Other comprehensive income (loss) before reclassifications | 27,264 | $ (38,046) | 575,227 | $ (998,912) |
Amount reclassified from accumulated other comprehensive income | 124,516 | 650,963 | ||
Amount reclassified from accumulated other comprehensive income | (45,149) | (236,039) | ||
Amount reclassified from accumulated other comprehensive income | 79,367 | $ 371,955 | 414,924 | $ 788,029 |
Other comprehensive income (loss) for the three months ended June 30, 2016 | 167,290 | 1,534,514 | ||
Other comprehensive income (loss) for the three months ended June 30, 2016 | (60,659) | (544,363) | ||
Other comprehensive income (loss) for the three months ended June 30, 2016 | 106,631 | 990,151 | ||
AOCI balance | (187,169) | (187,169) | ||
AOCI balance | 67,868 | 67,868 | ||
AOCI balance | $ (119,301) | $ (119,301) |
Note 4 - Effects of Derivative
Note 4 - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Expense [Member] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (88,441) | $ (418,444) | $ (460,830) | $ (886,461) |
Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness), net of tax | (8,741) | (47,242) | (31,323) | |
Cost of Sales [Member] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (36,075) | (158,768) | (142,891) | (336,428) |
Foreign currency forward contracts for the three months ended June 30, 2016 | $ 106,631 | $ 333,909 | $ 990,151 | $ (210,883) |
Note 5 - Goodwill and Other I41
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | Apr. 01, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Domain Services Operating Segment [Member] | ||||||
Goodwill Percentage Related to Operating Segments | 90.00% | 90.00% | ||||
Network Access Services [Member] | ||||||
Goodwill Percentage Related to Operating Segments | 10.00% | 10.00% | ||||
Domain Name Services [Member] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 3,894 | $ 37,805 | $ 24,879 | $ 50,298 | ||
Melbourne IT Limited [Member] | Customer Relationships [Member] | ||||||
Finite-lived Intangible Assets Acquired | $ 6,000,000 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||||
Melbourne IT Limited [Member] | Demand Loan Facility 2012 [Member] | ||||||
Proceeds from Issuance of Debt | $ 6,000,000 | |||||
Melbourne IT Limited [Member] | ||||||
Business Acquisition, Transaction Costs | $ 200,000 | |||||
Customer Relationships [Member] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ||||||
Finite-lived Intangible Assets Acquired | 6,250,570 | 6,250,570 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 6,300,000 | 6,300,000 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3,894 | $ 37,805 | 24,879 | $ 50,298 | ||
Finite-lived Intangible Assets Acquired | $ 6,250,570 | $ 6,250,570 |
Note 5 - Goodwill (Details)
Note 5 - Goodwill (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Boardtown Corporation [Member] | ||
Goodwill | $ 2,044,847 | $ 2,044,847 |
Hosted Messaging Assetsof Critical Path [Member] | ||
Goodwill | 4,072,297 | 4,072,297 |
Innerwise Inc [Member] | ||
Goodwill | 5,801,040 | 5,801,040 |
Mailbank.com Inc. [Member] | ||
Goodwill | 6,072,623 | 6,072,623 |
EPAG Domain Services GMBH [Member] | ||
Goodwill | 882,320 | 882,320 |
Ting Fiber Inc. [Member] | ||
Goodwill | 1,426,893 | 1,426,893 |
Ting Virginia Inc. [Member] | ||
Goodwill | 705,123 | 705,123 |
Goodwill | $ 21,005,143 | $ 21,005,143 |
Note 5 - Acquired Intangible As
Note 5 - Acquired Intangible Assets by Major Class (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Brand [Member] | ||||
Amortization period | 7 years | 7 years | ||
Balances | $ 71,960 | $ 79,670 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (7,710) | (15,420) | ||
Balances | $ 64,250 | $ 64,250 | ||
Customer Relationships [Member] | Minimum [Member] | ||||
Amortization period | 4 years | 4 years | ||
Customer Relationships [Member] | Maximum [Member] | ||||
Amortization period | 7 years | 7 years | ||
Customer Relationships [Member] | ||||
Balances | $ 450,567 | $ 499,854 | ||
Finite-lived Intangible Assets Acquired | 6,250,570 | 6,250,570 | ||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (269,208) | (318,495) | ||
Balances | $ 6,431,929 | $ 6,431,929 | ||
Network Rights [Member] | ||||
Amortization period | 15 years | 15 years | ||
Balances | $ 641,948 | $ 653,480 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (11,532) | (23,064) | ||
Balances | 630,416 | 630,416 | ||
Surname Domain Names [Member] | ||||
Balances | 11,319,560 | 11,339,355 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | (1,623) | (3,570) | ||
Impairment of indefinite life intangible assets | (3,894) | (21,742) | ||
Amortization expense | ||||
Balances | 11,314,043 | 11,314,043 | ||
Direct Navigation Domain Names [Member] | ||||
Balances | 1,887,908 | 1,897,318 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | (10,978) | (17,251) | ||
Impairment of indefinite life intangible assets | (3,137) | |||
Amortization expense | ||||
Balances | $ 1,876,930 | $ 1,876,930 | ||
Amortization period | ||||
Balances | $ 14,371,943 | $ 14,469,677 | ||
Finite-lived Intangible Assets Acquired | 6,250,570 | 6,250,570 | ||
Additions to/(disposals from) domain portfolio, net | (12,601) | $ (11,357) | (20,821) | $ (17,685) |
Impairment of indefinite life intangible assets | (3,894) | (37,805) | (24,879) | (50,298) |
Amortization expense | (288,450) | $ (68,529) | (356,979) | $ (125,668) |
Balances | $ 20,317,568 | $ 20,317,568 |
Note 5 - Estimated Future Amort
Note 5 - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Remainder of 2016 | $ 583,758 | |
2,017 | 1,167,516 | |
2,018 | 1,063,076 | |
2,019 | 939,528 | |
2,020 | 939,528 | |
Thereafter | 2,433,189 | |
Total | $ 7,126,595 | $ 1,233,004 |
Note 6 - Loan Payable (Details
Note 6 - Loan Payable (Details Textual) | 6 Months Ended | |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Two Thousand Twelve Demand Loan Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Two Thousand Twelve Demand Loan Facilities [Member] | Maximum [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 14,000,000 | |
Line of Credit Facility Share Repurchase Limit | 2,000,000 | |
Two Thousand Twelve Demand Loan Facilities [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 14,000,000 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
Debt Instrument, Term | 4 years | |
Proceeds from Lines of Credit | $ 6,000,000 | |
DLR Loan [Member] | Base Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
DLR Loan [Member] | ||
Debt Instrument, Term | 30 days | |
Other Long-term Debt, Current | $ 6,000,000 | $ 3,500,000 |
DLRR Loan [Member] | Other Assets [Member] | ||
Renegotiation Fees Incurred | 100,000 | |
DLRR Loan [Member] | ||
Other Long-term Debt, Current | $ 3,100,000 | 0 |
Amended Credit Facility [Member] | ||
Maximum Total Funded Debt to EBITDA Ratio | 2 | |
Minimum Fixed Charge Coverage | 1.2 | |
Line of Credit Facility, Maximum Annual Capital Expenditure Ceiling | $ 5,000,000 | |
Base Rate [Member] | Operating Demand Loan [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Foreign Exchange Risk [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500,000 | |
Derivative Asset, Fair Value, Gross Asset | 11,000,000 | |
Operating Demand Loan [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |
Debt Instrument, Fee Amount | 500 | |
Long-term Line of Credit | 0 | |
Other Long-term Debt, Current | $ 9,062,500 | $ 3,500,000 |
Line of Credit Facility Covenant Period | 1 year 180 days |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Expense (Benefit) | $ 2,077,633 | $ 1,540,096 | $ 3,983,363 | $ 3,091,789 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 6,148,419 | $ 3,825,091 | 12,492,387 | $ 8,210,727 | |
Unrecognized Tax Benefits | 100,000 | 100,000 | $ 100,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 | $ 0 |
Note 8 - Acquisitions (Details
Note 8 - Acquisitions (Details Textual) - USD ($) | Feb. 27, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
Ting Virginia LLC [Member] | Exercisable on Second Anniversary of Business Combination [Member] | |||||||
Interest Subject to Call Option Exercise | 20.00% | ||||||
Ting Virginia LLC [Member] | Exercisable on Fourth Anniversary of Business Combination [Member] | Exercisable by the Minority Shareholders [Member] | |||||||
Business Combination, Consideration to be Transfered Upon Exercise of Options Per Percentage Point | $ 120,000 | ||||||
Ting Virginia LLC [Member] | Derivatives Embedded in Business Combination Agreement [Member] | |||||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 3,000,000 | ||||||
Business Combination, Contingent Consideration Accrete Discount Rate | 5.00% | ||||||
Business Combination, Contingent Consideration Accrete Discount Rate Term | 4 years | ||||||
Ting Virginia LLC [Member] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | ||||||
Business Combination, Consideration Transferred | $ 3,500,000 | ||||||
Business Combination Consideration Transferred Advanced in Escrow | $ 3,125,000 | ||||||
Payments to Acquire Businesses, Gross | $ 3,135,140 | $ (50,000) | $ 357,493 | $ 357,493 | |||
Business Combination, Customers Acquired, Number | 3,000 | ||||||
Interest Subject to Put and Call Option Exercise | 30.00% | ||||||
Business Combination, Put Option Excercisable, Term | 7 days | ||||||
Business Combination, Interest Subject to Put Option Exercise | 10.00% | ||||||
Business Combination, Consideration to be Transfered Upon Exercise of Options Per Percentage Point | $ 100,000 | ||||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 3,061,244 | 3,061,244 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 12,348 | $ 12,150 | 24,646 | $ 12,150 | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 3,061,244 | $ 3,061,244 | $ 3,036,598 |
Note 8 - Preliminary Purchase C
Note 8 - Preliminary Purchase Consideration (Details) - Ting Virginia LLC [Member] - USD ($) | Feb. 27, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 |
Payments to Acquire Businesses, Gross | $ 3,135,140 | $ (50,000) | $ 357,493 | $ 357,493 | ||
Less refund from working capital adjustment | (50,000) | |||||
Repayment of debt | 418,775 | |||||
Redeemable non-controlling interest | 3,000,000 | |||||
$ 6,503,915 |
Note 8 - Purchase Price Allocat
Note 8 - Purchase Price Allocation (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Feb. 27, 2015 |
Ting Virginia LLC [Member] | Fiber Network [Member] | |||
Property and equipment, including: | |||
Property and equipment | $ 3,456,024 | ||
Ting Virginia LLC [Member] | Computer Equipment [Member] | |||
Property and equipment, including: | |||
Property and equipment | 200,000 | ||
Ting Virginia LLC [Member] | Furniture and Fixtures [Member] | |||
Property and equipment, including: | |||
Property and equipment | 5,000 | ||
Ting Virginia LLC [Member] | Vehicles [Member] | |||
Property and equipment, including: | |||
Property and equipment | 92,000 | ||
Ting Virginia LLC [Member] | Leasehold Improvements [Member] | |||
Property and equipment, including: | |||
Property and equipment | 50,000 | ||
Ting Virginia LLC [Member] | Network Rights [Member] | |||
Intangible assets, including: | |||
Intangible assets | 692,000 | ||
Ting Virginia LLC [Member] | Customer Relationships [Member] | |||
Intangible assets, including: | |||
Intangible assets | 68,000 | ||
Ting Virginia LLC [Member] | |||
Current assets (including cash of $21,423) | 338,577 | ||
Current liabilities | (529,702) | ||
Intangible assets, including: | |||
Goodwill | 2,132,016 | ||
Net assets acquired | $ 6,503,915 | ||
Goodwill | $ 21,005,143 | $ 21,005,143 |
Note 8 - Purchase Price Alloc50
Note 8 - Purchase Price Allocation (Details) (Parentheticals) | Feb. 27, 2015USD ($) |
Ting Virginia LLC [Member] | |
Cash acquired | $ 21,423 |
Note 9 - Basic and Diluted Ea51
Note 9 - Basic and Diluted Earnings Per Common Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | 18 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | |
Stock Repurchase [Member] | ||||
Stock Repurchased and Retired During Period, Shares | 209,698 | 25,413 | 308,416 | 239,502 |
Tender Offer [Member] | ||||
Stock Repurchased and Retired During Period, Shares | 193,907 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 76,800 | 126,800 |
Note 9 - Summary of Basic and D
Note 9 - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator for basic and diluted earnings per common share: | ||||
Net income for the period | $ 4,070,786 | $ 2,284,995 | $ 8,509,024 | $ 5,118,938 |
Basic weighted average number of common shares outstanding (in shares) | 10,541,659 | 11,047,136 | 10,607,843 | 11,094,618 |
Effect of outstanding stock options (in shares) | 192,201 | 409,534 | 189,615 | 423,487 |
Diluted weighted average number of shares outstanding (in shares) | 10,733,860 | 11,456,670 | 10,797,458 | 11,518,105 |
Basic earnings per common share (in dollars per share) | $ 0.39 | $ 0.21 | $ 0.80 | $ 0.46 |
Diluted earnings per common share (in dollars per share) | $ 0.38 | $ 0.20 | $ 0.79 | $ 0.44 |
Note 10 - Segment Reporting (De
Note 10 - Segment Reporting (Details Textual) | 6 Months Ended |
Jun. 30, 2016 | |
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |
Concentration Risk, Percentage | 21.00% |
Number of Operating Segments | 3 |
Note 10 - Information by Report
Note 10 - Information by Reportable Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Network Access Services [Member] | Mobile Services [Member] | |||||
Net Revenues | [1] | $ 18,026,420 | $ 14,351,903 | $ 34,970,490 | $ 26,911,135 |
Cost of revenues | [1] | 9,380,533 | 7,996,331 | 17,938,968 | 15,126,180 |
Network expenses | [1] | 35,999 | 26,265 | 73,150 | 38,168 |
Depreciation of property and equipment | [1] | ||||
Amortization of intangible assets | [1] | ||||
Total cost of revenues | [1] | 9,416,532 | 8,022,596 | 18,012,118 | 15,164,348 |
Gross Profit | [1] | 8,609,888 | 6,329,307 | 16,958,372 | 11,746,787 |
Expenses: | |||||
Sales and marketing | [1] | ||||
Technical operations and development | [1] | ||||
General and administrative | [1] | ||||
Depreciation of property and equipment | [1] | ||||
Amortization of intangible assets | [1] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | [1] | ||||
Loss on currency forward contracts | [1] | ||||
Income from operations | [1] | ||||
Other income (expensees), net | [1] | ||||
Income before provision for income taxes | [1] | ||||
Net Revenues | [1] | 18,026,420 | 14,351,903 | 34,970,490 | 26,911,135 |
Cost of revenues | [1] | 9,380,533 | 7,996,331 | 17,938,968 | 15,126,180 |
Network expenses | [1] | 35,999 | 26,265 | 73,150 | 38,168 |
Depreciation of property and equipment | [1] | ||||
Amortization of intangible assets | [1] | ||||
Total cost of revenues | [1] | 9,416,532 | 8,022,596 | 18,012,118 | 15,164,348 |
Gross Profit | [1] | 8,609,888 | 6,329,307 | 16,958,372 | 11,746,787 |
Network Access Services [Member] | Other Services [Member] | |||||
Net Revenues | [1] | 972,123 | 1,066,066 | 1,867,185 | 1,433,848 |
Cost of revenues | [1] | 528,957 | 502,306 | 959,554 | 717,614 |
Network expenses | [1] | 183,799 | 199,077 | 361,172 | 260,590 |
Depreciation of property and equipment | [1] | 211,382 | 104,921 | 397,062 | 133,811 |
Amortization of intangible assets | [1] | 11,532 | 11,532 | 23,064 | 15,456 |
Total cost of revenues | [1] | 935,670 | 817,836 | 1,740,852 | 1,127,471 |
Gross Profit | [1] | 36,453 | 248,230 | 126,333 | 306,377 |
Expenses: | |||||
Sales and marketing | [1] | ||||
Technical operations and development | [1] | ||||
General and administrative | [1] | ||||
Depreciation of property and equipment | [1] | ||||
Amortization of intangible assets | [1] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | [1] | ||||
Loss on currency forward contracts | [1] | ||||
Income from operations | [1] | ||||
Other income (expensees), net | [1] | ||||
Income before provision for income taxes | [1] | ||||
Net Revenues | [1] | 972,123 | 1,066,066 | 1,867,185 | 1,433,848 |
Cost of revenues | [1] | 528,957 | 502,306 | 959,554 | 717,614 |
Network expenses | [1] | 183,799 | 199,077 | 361,172 | 260,590 |
Depreciation of property and equipment | [1] | 211,382 | 104,921 | 397,062 | 133,811 |
Amortization of intangible assets | [1] | 11,532 | 11,532 | 23,064 | 15,456 |
Total cost of revenues | [1] | 935,670 | 817,836 | 1,740,852 | 1,127,471 |
Gross Profit | [1] | 36,453 | 248,230 | 126,333 | 306,377 |
Network Access Services [Member] | |||||
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 | |
Amortization of intangible assets | 362,452 | 291,461 | 720,737 | 495,027 | |
Total cost of revenues | 9,909,490 | 8,498,637 | 18,898,522 | 15,843,794 | |
Expenses: | |||||
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 | |
Amortization of intangible assets | 362,452 | 291,461 | 720,737 | 495,027 | |
Total cost of revenues | 9,909,490 | 8,498,637 | 18,898,522 | 15,843,794 | |
Domain Name Services [Member] | |||||
Net Revenues | 28,467,838 | 27,471,251 | 56,239,119 | 55,012,070 | |
Cost of revenues | 19,940,171 | 19,752,035 | 39,801,612 | 39,228,252 | |
Network expenses | 1,185,028 | 1,269,496 | 2,203,435 | 2,418,176 | |
Depreciation of property and equipment | 139,538 | 175,008 | 300,611 | 345,760 | |
Amortization of intangible assets | |||||
Total cost of revenues | 21,264,737 | 21,196,539 | 42,305,658 | 41,992,188 | |
Gross Profit | 7,203,101 | 6,274,712 | 13,933,461 | 13,019,882 | |
Expenses: | |||||
Sales and marketing | |||||
Technical operations and development | |||||
General and administrative | |||||
Depreciation of property and equipment | |||||
Amortization of intangible assets | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | |||||
Loss on currency forward contracts | |||||
Income from operations | |||||
Other income (expensees), net | |||||
Income before provision for income taxes | |||||
Net Revenues | 28,467,838 | 27,471,251 | 56,239,119 | 55,012,070 | |
Cost of revenues | 19,940,171 | 19,752,035 | 39,801,612 | 39,228,252 | |
Network expenses | 1,185,028 | 1,269,496 | 2,203,435 | 2,418,176 | |
Depreciation of property and equipment | 139,538 | 175,008 | 300,611 | 345,760 | |
Amortization of intangible assets | |||||
Total cost of revenues | 21,264,737 | 21,196,539 | 42,305,658 | 41,992,188 | |
Gross Profit | 7,203,101 | 6,274,712 | 13,933,461 | 13,019,882 | |
Net Revenues | 47,466,381 | 42,889,220 | 93,076,794 | 83,357,053 | |
Cost of revenues | 29,849,661 | 28,250,672 | 58,700,134 | 55,072,046 | |
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 | |
Depreciation of property and equipment | 350,920 | 279,929 | 697,673 | 479,571 | |
Amortization of intangible assets | 11,532 | 11,532 | 23,064 | 15,456 | |
Total cost of revenues | 31,616,939 | 30,036,971 | 62,058,628 | 58,284,007 | |
Gross Profit | 15,849,442 | 12,852,249 | 31,018,166 | 25,073,046 | |
Sales and marketing | 5,435,033 | 4,847,963 | 10,720,657 | 8,647,138 | |
Technical operations and development | 998,651 | 1,189,276 | 2,175,011 | 2,303,471 | |
General and administrative | 2,926,608 | 2,750,466 | 5,331,535 | 5,218,488 | |
Depreciation of property and equipment | 76,922 | 62,022 | 150,190 | 121,284 | |
Amortization of intangible assets | 276,918 | 56,997 | 333,915 | 110,212 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 3,894 | 37,805 | 24,879 | 50,298 | |
Loss on currency forward contracts | (8,711) | 25,227 | (119,468) | 329,251 | |
Income from operations | 6,140,127 | 3,882,493 | 12,401,447 | 8,292,904 | |
Other income (expensees), net | 8,292 | (57,402) | 90,940 | (82,177) | |
Income before provision for income taxes | 6,148,419 | 3,825,091 | 12,492,387 | 8,210,727 | |
Net Revenues | 47,466,381 | 42,889,220 | 93,076,794 | 83,357,053 | |
Cost of revenues | 29,849,661 | 28,250,672 | 58,700,134 | 55,072,046 | |
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 | |
Depreciation of property and equipment | 350,920 | 279,929 | 697,673 | 479,571 | |
Amortization of intangible assets | 11,532 | 11,532 | 23,064 | 15,456 | |
Total cost of revenues | 31,616,939 | 30,036,971 | 62,058,628 | 58,284,007 | |
Gross Profit | $ 15,849,442 | $ 12,852,249 | $ 31,018,166 | $ 25,073,046 | |
[1] | Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. |
Note 10 - Summary of Revenue Ea
Note 10 - Summary of Revenue Earned from Each Significant Revenue Stream (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Network Access Services [Member] | Mobile Services [Member] | ||||
Operating revenues | $ 18,026,420 | $ 14,351,903 | $ 34,970,490 | $ 26,911,135 |
Network Access Services [Member] | Other Services [Member] | ||||
Operating revenues | 972,123 | 1,066,066 | 1,867,185 | 1,433,848 |
Network Access Services [Member] | ||||
Operating revenues | 18,998,543 | 15,417,969 | 36,837,675 | 28,344,983 |
Domain Name Services [Member] | Wholesale [Member] | Domain Services [Member] | ||||
Operating revenues | 21,698,720 | 21,286,863 | 42,969,585 | 42,461,994 |
Domain Name Services [Member] | Wholesale [Member] | Value Added Services [Member] | ||||
Operating revenues | 2,309,621 | 2,355,837 | 4,612,054 | 4,597,835 |
Domain Name Services [Member] | Wholesale [Member] | ||||
Operating revenues | 24,008,341 | 23,642,700 | 47,581,639 | 47,059,829 |
Domain Name Services [Member] | Retail Services [Member] | ||||
Operating revenues | 3,556,140 | 3,009,465 | 6,970,772 | 5,885,193 |
Domain Name Services [Member] | Portfolio [Member] | ||||
Operating revenues | 903,357 | 819,086 | 1,686,708 | 2,067,048 |
Domain Name Services [Member] | ||||
Operating revenues | 28,467,838 | 27,471,251 | 56,239,119 | 55,012,070 |
Operating revenues | $ 47,466,381 | $ 42,889,220 | $ 93,076,794 | $ 83,357,053 |
Note 10 - Summary of Cost of Re
Note 10 - Summary of Cost of Revenues from Each Significant Revenue Stream (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Network Access Services [Member] | Mobile Services [Member] | ||||
Cost of revenues | $ 9,380,533 | $ 7,996,331 | $ 17,938,968 | $ 15,126,180 |
Network Access Services [Member] | Other Services [Member] | ||||
Cost of revenues | 528,957 | 502,306 | 959,554 | 717,614 |
Network Access Services [Member] | ||||
Total cost of revenues | 9,909,490 | 8,498,637 | 18,898,522 | 15,843,794 |
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 |
Amortization of intangible assets | 362,452 | 291,461 | 720,737 | 495,027 |
Network Expenses | 1,767,278 | 1,786,299 | 3,358,494 | 3,211,961 |
Domain Name Services [Member] | Domain Services [Member] | Wholesale [Member] | ||||
Cost of revenues | 17,645,470 | 17,744,966 | 35,288,241 | 35,291,293 |
Domain Name Services [Member] | Value Added Services [Member] | Wholesale [Member] | ||||
Cost of revenues | 451,604 | 501,518 | 930,986 | 1,037,650 |
Domain Name Services [Member] | Wholesale [Member] | ||||
Cost of revenues | 18,097,074 | 18,246,484 | 36,219,227 | 36,328,943 |
Domain Name Services [Member] | Retail Services [Member] | ||||
Cost of revenues | 1,639,755 | 1,322,620 | 3,218,081 | 2,543,120 |
Domain Name Services [Member] | Portfolio [Member] | ||||
Cost of revenues | 203,342 | 182,931 | 364,304 | 356,189 |
Domain Name Services [Member] | ||||
Cost of revenues | 19,940,171 | 19,752,035 | 39,801,612 | 39,228,252 |
Total cost of revenues | 21,264,737 | 21,196,539 | 42,305,658 | 41,992,188 |
Network expenses | 1,185,028 | 1,269,496 | 2,203,435 | 2,418,176 |
Amortization of intangible assets | ||||
Cost of revenues | 29,849,661 | 28,250,672 | 58,700,134 | 55,072,046 |
Total cost of revenues | 31,616,939 | 30,036,971 | 62,058,628 | 58,284,007 |
Network expenses | 1,404,826 | 1,494,838 | 2,637,757 | 2,716,934 |
Amortization of intangible assets | $ 11,532 | $ 11,532 | $ 23,064 | $ 15,456 |
Note 10 - Summary of Property a
Note 10 - Summary of Property and Equipment by Geographic Region (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
CANADA | ||
Property, plant and equipment | $ 1,017,649 | $ 1,225,236 |
UNITED STATES | ||
Property, plant and equipment | 6,809,041 | 5,847,666 |
GERMANY | ||
Property, plant and equipment | 113,294 | 53,774 |
Property, plant and equipment | $ 7,939,984 | $ 7,126,676 |
Note 10 - Summary of Amortizabl
Note 10 - Summary of Amortizable Intangible Assets by Geographic Region (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
CANADA | ||
Amortizable intangible assets | $ 6,030,650 | |
UNITED STATES | ||
Amortizable intangible assets | 668,195 | 702,594 |
GERMANY | ||
Amortizable intangible assets | 427,750 | 530,410 |
Amortizable intangible assets | $ 7,126,595 | $ 1,233,004 |
Note 10 - Summary of Deferred T
Note 10 - Summary of Deferred Tax Asset, Net of Valuation Allowance (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
CANADA | ||
Deferred tax assets | $ 6,339,848 | $ 7,621,092 |
Deferred tax assets | $ 6,339,848 | $ 7,621,092 |
Note 10 - Summary of Valuation
Note 10 - Summary of Valuation and Qualifying Accounts (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Balance | $ 122,095 | $ 125,766 |
Charged to (recovered) costs and expenses | 25,698 | (3,671) |
Balance | 147,793 | 122,095 |
Charged to (recovered) costs and expenses | $ 25,698 | $ (3,671) |
Note 12 - Other Income, Net (De
Note 12 - Other Income, Net (Details Textual) - Joint Marketing Agreement [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Recognized During the Current Year [Member] | |||||
Other Nonrecurring Gain | $ 100,000 | $ 0 | $ 300,000 | $ 0 | |
Other Nonrecurring Gain | $ 1,500,000 | ||||
Other Non-recurring Gain, Term of Recognition | 3 years |
Note 13 - Stockholders' Equit62
Note 13 - Stockholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Feb. 09, 2016 | Feb. 11, 2015 | |
Stock Buyback Program 2016 [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 40,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 209,698 | 308,416 | ||||
Stock Repurchased and Retired During Period, Value | $ 5,000,000 | $ 7,200,000 | ||||
Stock Buyback Program 2015 [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 20,000,000 | |||||
Stock Repurchased and Retired During Period, Shares | 25,413 | 0 | 239,502 | |||
Stock Repurchased and Retired During Period, Value | $ 500,000 | $ 4,500,000 | ||||
Tender Offer [Member] | ||||||
Stock Repurchased and Retired During Period, Shares | 193,907 | |||||
Stock Repurchased and Retired During Period, Value | $ 3,600,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 18.50 | |||||
Stock Repurchased Transaction Costs | $ 70,000 | |||||
Stock Repurchased and Retired During Period, Value | $ 4,999,978 | $ 7,180,257 |
Note 13 - Stockholders' Equit63
Note 13 - Stockholders' Equity Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Common Stock [Member] | ||||
Balances (in shares) | 10,594,733 | 10,685,599 | ||
Balances | $ 14,445,114 | $ 14,530,633 | ||
Exercise of stock options (in shares) | 51,963 | 63,537 | ||
Exercise of stock options | $ 137,176 | $ 185,913 | ||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | (14,545) | (18,267) | ||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | ||||
Repurchase and retirement of shares (note 13) (in shares) | (209,698) | (308,416) | ||
Repurchase and retirement of shares (note 13) | $ (286,383) | $ (420,639) | ||
Income tax effect related to stock options exercised | ||||
Stock-based compensation (note 14) | ||||
Net income for the period | ||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | ||||
Other comprehensive income (loss) | ||||
Balances (in shares) | 10,422,453 | 10,422,453 | ||
Balances | $ 14,295,907 | $ 14,295,907 | ||
Exercise of stock options (in shares) | 51,963 | 63,537 | ||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | (14,545) | (18,267) | ||
Repurchase and retirement of shares (note 13) (in shares) | (209,698) | (308,416) | ||
Additional Paid-in Capital [Member] | ||||
Balances | $ 6,676,096 | $ 8,526,395 | ||
Exercise of stock options | (97,438) | (126,617) | ||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (205,548) | (242,233) | ||
Repurchase and retirement of shares (note 13) | (4,713,595) | (6,759,618) | ||
Income tax effect related to stock options exercised | 384,839 | 446,199 | ||
Stock-based compensation (note 14) | 190,187 | 390,415 | ||
Net income for the period | ||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | ||||
Other comprehensive income (loss) | ||||
Balances | 2,234,541 | 2,234,541 | ||
Retained Earnings [Member] | ||||
Balances | 8,807,789 | 4,381,849 | ||
Exercise of stock options | ||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | ||||
Repurchase and retirement of shares (note 13) | ||||
Income tax effect related to stock options exercised | ||||
Stock-based compensation (note 14) | ||||
Net income for the period | 4,070,786 | 8,509,024 | ||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | (12,348) | (24,646) | ||
Other comprehensive income (loss) | ||||
Balances | 12,866,227 | 12,866,227 | ||
AOCI Attributable to Parent [Member] | ||||
Balances | (225,932) | (1,109,452) | ||
Exercise of stock options | ||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | ||||
Repurchase and retirement of shares (note 13) | ||||
Income tax effect related to stock options exercised | ||||
Stock-based compensation (note 14) | ||||
Net income for the period | ||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | ||||
Other comprehensive income (loss) | 106,631 | 990,151 | ||
Balances | (119,301) | (119,301) | ||
Balances | $ 29,703,067 | $ 26,329,425 | ||
Exercise of stock options (in shares) | 51,963 | 112,656 | 63,537 | 187,653 |
Exercise of stock options | $ 39,738 | $ 59,296 | ||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (205,548) | (242,233) | ||
Repurchase and retirement of shares (note 13) | (4,999,978) | (7,180,257) | ||
Income tax effect related to stock options exercised | 384,839 | 446,199 | ||
Stock-based compensation (note 14) | 190,187 | 390,415 | ||
Net income for the period | 4,070,786 | $ 2,284,995 | 8,509,024 | $ 5,118,938 |
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | (12,348) | (24,646) | ||
Other comprehensive income (loss) | 106,631 | $ 333,909 | 990,151 | $ (210,883) |
Balances | $ 29,277,374 | $ 29,277,374 | ||
Exercise of stock options (in shares) | 51,963 | 112,656 | 63,537 | 187,653 |
Note 14 - Share-based Payment64
Note 14 - Share-based Payments (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Option [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,336,707 | $ 1,336,707 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 36 days | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | |||
Allocated Share-based Compensation Expense | $ 190,187 | $ 124,605 | $ 390,415 | $ 249,653 |
Note 14 - Stock Option Transact
Note 14 - Stock Option Transactions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Outstanding, Number of shares (in shares) | 550,641 | 943,323 | 513,366 | 976,062 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 10.48 | $ 6.23 | $ 9.24 | $ 6.23 |
Granted, Number of shares (in shares) | 8,000 | 63,000 | 45,000 | |
Granted, Weighted average exercise price per share (in dollars per share) | $ 23.37 | $ 21.21 | $ 19.41 | |
Exercised, Number of shares (in shares) | (51,963) | (112,656) | (63,537) | (187,653) |
Exercised, Weighted average exercise price per share (in dollars per share) | $ 3.52 | $ 2.66 | $ 3.72 | $ 2.92 |
Forfeited, Number of shares (in shares) | (4,088) | (1,716) | (9,489) | (4,458) |
Forfeited, Weighted average exercise price per share (in dollars per share) | $ 23.83 | $ 13.15 | $ 17.23 | $ 12.46 |
Expired, Number of shares (in shares) | (1,875) | (750) | (1,875) | |
Expired, Weighted average exercise price per share (in dollars per share) | $ 2.40 | $ 3.76 | $ 2.40 | |
Outstanding, Number of shares (in shares) | 502,590 | 827,076 | 502,590 | 827,076 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 11.30 | $ 6.69 | $ 11.30 | $ 6.69 |
Options exercisable, Number of shares (in shares) | 298,343 | 581,433 | 298,343 | 581,433 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 7.08 | $ 4.58 | $ 7.08 | $ 4.58 |
Note 14 - Summary of Exercise P
Note 14 - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (Details) | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Exercise Price Range 01 [Member] | |
Exercise price - lower (in dollars per share) | $ 2.80 |
Exercise price - higher (in dollars per share) | $ 4.48 |
Number outstanding (in shares) | shares | 90,513 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 2.97 |
Weighted average remaining contractual life (years), options outstanding | 1 year 109 days |
Aggregate intrinsic value, options outstanding | $ | $ 1,936,426 |
Number exercisable (in shares) | shares | 90,513 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 2.97 |
Weighted average remaining contractual life (years), options exercisable | 1 year 109 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 1,936,426 |
Exercise Price Range 02 [Member] | |
Exercise price - lower (in dollars per share) | $ 5.52 |
Exercise price - higher (in dollars per share) | $ 8.92 |
Number outstanding (in shares) | shares | 178,177 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 6.63 |
Weighted average remaining contractual life (years), options outstanding | 2 years 328 days |
Aggregate intrinsic value, options outstanding | $ | $ 3,158,294 |
Number exercisable (in shares) | shares | 154,755 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 6.51 |
Weighted average remaining contractual life (years), options exercisable | 2 years 292 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 2,761,971 |
Exercise Price Range 03 [Member] | |
Exercise price - lower (in dollars per share) | $ 10.16 |
Exercise price - higher (in dollars per share) | $ 14.67 |
Number outstanding (in shares) | shares | 29,375 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 10.83 |
Weighted average remaining contractual life (years), options outstanding | 4 years 73 days |
Aggregate intrinsic value, options outstanding | $ | $ 397,394 |
Number exercisable (in shares) | shares | 10,625 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 12.02 |
Weighted average remaining contractual life (years), options exercisable | 3 years 328 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 131,144 |
Exercise Price Range 04 [Member] | |
Exercise price - lower (in dollars per share) | $ 15.51 |
Exercise price - higher (in dollars per share) | $ 19.95 |
Number outstanding (in shares) | shares | 132,775 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 17.35 |
Weighted average remaining contractual life (years), options outstanding | 5 years 36 days |
Aggregate intrinsic value, options outstanding | $ | $ 930,368 |
Number exercisable (in shares) | shares | 42,450 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 16.67 |
Weighted average remaining contractual life (years), options exercisable | 4 years 146 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 326,578 |
Exercise Price Range 05 [Member] | |
Exercise price - lower (in dollars per share) | $ 21.10 |
Exercise price - higher (in dollars per share) | $ 24.96 |
Number outstanding (in shares) | shares | 71,750 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 22.36 |
Weighted average remaining contractual life (years), options outstanding | 5 years 328 days |
Aggregate intrinsic value, options outstanding | $ | $ 154,620 |
Number exercisable (in shares) | shares | |
Weighted average exercise price per share, options exercisable (in dollars per share) | |
Weighted average remaining contractual life (years), options exercisable | |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | |
Number outstanding (in shares) | shares | 502,590 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 11.30 |
Weighted average remaining contractual life (years), options outstanding | 3 years 255 days |
Aggregate intrinsic value, options outstanding | $ | $ 6,577,102 |
Number exercisable (in shares) | shares | 298,343 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 7.08 |
Weighted average remaining contractual life (years), options exercisable | 2 years 219 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 5,156,119 |
Note 15 - Summary of the Fair V
Note 15 - Summary of the Fair Values of the Company's Derivative Instrument Liabilities (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative instrument asset | ||
Derivative instrument liability | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivative instrument asset | 73,617 | |
Derivative instrument liability | (294,170) | (2,027,086) |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative instrument asset | ||
Derivative instrument liability | ||
Derivative instrument asset | 73,617 | |
Derivative instrument liability | $ (294,170) | $ (2,027,086) |