Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 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 | No | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 10,489,639 | ||
Entity Public Float | $ 213.9 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 15,105,075 | $ 7,723,253 |
Accounts receivable, net of allowance for doubtful accounts of $164,145 as of December 31, 2016 and $122,095 as of December 31, 2015 | 10,925,622 | 7,171,388 |
Inventory | 1,210,789 | 903,775 |
Prepaid expenses and deposits | 6,250,555 | 5,067,790 |
Derivative instrument asset, current portion (note 7) | 172,888 | |
Prepaid domain name registry and ancillary services fees, current portion | 49,396,737 | 44,708,041 |
Income taxes recoverable (note 9) | 220,451 | 2,292,915 |
Total current assets | 83,282,117 | 67,867,162 |
Prepaid domain name registry and ancillary services fees, long-term portion | 10,993,156 | 11,040,929 |
Property and equipment (note 4) | 13,450,438 | 7,126,676 |
Deferred tax asset (note 9) | 5,708,725 | 7,621,092 |
Intangible assets (note 5) | 19,973,793 | 14,469,677 |
Total goodwill | 21,005,143 | 21,005,143 |
Total assets | 154,413,372 | 129,130,679 |
Current liabilities: | ||
Accounts payable | 4,786,645 | 4,166,135 |
Accrued liabilities | 7,098,905 | 5,855,686 |
Customer deposits | 5,418,622 | 5,136,909 |
Derivative instrument liability, current portion (note 7) | 2,027,086 | |
Deferred rent, current portion | 20,854 | 19,463 |
Loan payable (note 8) | 2,233,110 | 3,500,000 |
Deferred revenue, current portion | 62,795,079 | 56,646,390 |
Accreditation fees payable, current portion | 528,027 | 465,300 |
Income taxes payable (note 9) | 1,548,121 | 444,053 |
Total current liabilities | 84,429,363 | 78,261,022 |
Deferred revenue, long-term portion | 15,053,977 | 14,947,639 |
Accreditation fees payable, long-term portion | 115,084 | 118,480 |
Deferred rent, long-term portion | 124,202 | 100,864 |
Loan payable, long-term portion | 8,015,698 | |
Deferred gain (note 13) | 944,680 | 1,459,960 |
Deferred tax liability (note 9) | 4,827,192 | 4,876,691 |
Redeemable non-controlling interest (note 3) | 3,086,090 | 3,036,598 |
Stockholders' equity (note 10) | ||
Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock - no par value, 250,000,000 shares authorized;10,461,574 shares issued and outstanding as of December 31, 2016 and 10,685,599 shares issued and outstanding as of December 31, 2015 | 14,460,500 | 14,530,633 |
Additional paid-in capital | 2,857,921 | 8,526,395 |
Retained earnings | 20,399,511 | 4,381,849 |
Accumulated other comprehensive income (loss) | 99,154 | (1,109,452) |
Total stockholders' equity | 37,817,086 | 26,329,425 |
Total liabilities and stockholders' equity | 154,413,372 | 129,130,679 |
Commitments and contingencies (note 15) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 164,145 | $ 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) | 10,461,574 | 10,685,599 |
Common stock shares outstanding (in shares) | 10,461,574 | 10,685,599 |
Common stock - no par value (in dollars per share) | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenues (note 17) | $ 189,818,932 | $ 171,686,779 | $ 146,508,710 |
Cost of revenues (note 17) | |||
Cost of revenues | 120,186,962 | 112,980,685 | 101,861,002 |
Network expenses | 5,210,500 | 5,464,777 | 4,554,635 |
Depreciation of property and equipment (note 4) | 1,319,819 | 1,144,988 | 699,670 |
Amortization of intangible assets (note 5) | 48,017 | 38,520 | |
Total cost of revenues | 126,765,298 | 119,628,970 | 107,115,307 |
Gross profit | 63,053,634 | 52,057,809 | 39,393,403 |
Expenses: | |||
Sales and marketing | 20,754,752 | 17,394,376 | 14,235,668 |
Technical operations and development | 4,494,819 | 4,502,845 | 4,305,715 |
General and administrative | 11,404,793 | 10,661,949 | 9,459,008 |
Depreciation of property and equipment (note 4) | 503,864 | 259,307 | 226,432 |
Amortization of intangible assets (note 5) | 905,157 | 224,206 | 596,620 |
Impairment of indefinite life intangible asset | 42,673 | 206,116 | 577,145 |
Loss (gain) on currency forward contracts (note 7) | (98,977) | 792,900 | 357,760 |
Total expenses | 38,007,081 | 34,041,699 | 29,758,348 |
Income from operations | 25,046,553 | 18,016,110 | 9,635,055 |
Other income (expense): | |||
Interest expense, net | (449,838) | (159,025) | (206,730) |
Other income, net (note 13) | 516,209 | 85,872 | |
Total other income (expense) | 66,371 | (73,153) | (206,730) |
Income before provision for income taxes | 25,112,924 | 17,942,957 | 9,428,325 |
Provision for income taxes (note 9) | 9,045,770 | 6,569,227 | 3,054,229 |
Net income before redeemable non-controlling interest | 16,067,154 | 11,373,730 | 6,374,096 |
Redeemable non-controlling interest (note 3) | (871,493) | (284,509) | |
Net loss attributable to redeemable non-controlling interest | 871,493 | 284,509 | |
Net income for the period | 16,067,154 | 11,373,730 | 6,374,096 |
Other comprehensive income (loss), net of tax | |||
Unrealized income (loss) on hedging activities (note 7) | 567,816 | (2,031,465) | (1,004,115) |
Net amount reclassified to earnings (note 7) | 640,790 | 1,544,454 | 626,655 |
Other comprehensive income (loss) net of tax of $668,637 for the year ended December 31, 2016, $287,996 for the year ended December 31, 2015 and $196,623 for the year ended December 31, 2014 | 1,208,606 | (487,011) | (377,460) |
Comprehensive income for the period | $ 17,275,760 | $ 10,886,719 | $ 5,996,636 |
Basic earnings per common share (note 14) (in dollars per share) | $ 1.53 | $ 1.04 | $ 0.57 |
Shares used in computing basic earnings per common share (note 14) (in shares) | 10,524,856 | 10,968,500 | 11,220,874 |
Diluted earnings per common share (note 14) (in dollars per share) | $ 1.50 | $ 1 | $ 0.54 |
Shares used in computing diluted earnings per common share (note 14) (in shares) | 10,713,595 | 11,360,084 | 11,730,398 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other comprehensive income (loss), tax | $ 668,637 | $ 287,996 | $ 196,623 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) | 10,907,063 | ||||
Balances (in shares) at Dec. 31, 2013 | 10,907,063 | ||||
Balances at Dec. 31, 2013 | $ 11,859,267 | $ 28,632,311 | $ (13,329,379) | $ (244,981) | $ 26,917,218 |
Exercise of stock options (in shares) | 502,061 | 502,061 | |||
Exercise of stock options | $ 2,365,825 | (886,901) | $ 1,478,924 | ||
Repurchase and retirement of shares (note 10) (in shares) | (79,392) | (79,392) | |||
Repurchase and retirement of shares (note 10) | $ (95,033) | (1,086,824) | $ (1,181,857) | ||
Income tax effect related to stock options exercised | 1,888,734 | 1,888,734 | |||
Stock-based compensation (note 11) | 542,738 | 542,738 | |||
Net income for the period | 6,374,096 | 6,374,096 | |||
Other comprehensive income (loss) | (377,460) | (377,460) | |||
Balances (in shares) at Dec. 31, 2014 | 11,329,732 | ||||
Balances at Dec. 31, 2014 | $ 14,130,059 | 29,090,058 | (6,955,283) | (622,441) | $ 35,642,393 |
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | |||||
Balances (in shares) | 10,907,063 | ||||
Balances (in shares) | 11,329,732 | ||||
Exercise of stock options (in shares) | 517,998 | 517,998 | |||
Exercise of stock options | $ 1,784,112 | (980,976) | $ 803,136 | ||
Repurchase and retirement of shares (note 10) (in shares) | (1,062,456) | (1,062,456) | |||
Repurchase and retirement of shares (note 10) | $ (1,383,538) | (22,232,748) | $ (23,616,286) | ||
Income tax effect related to stock options exercised | 3,431,017 | 3,431,017 | |||
Stock-based compensation (note 11) | 526,025 | 526,025 | |||
Net income for the period | 11,373,730 | 11,373,730 | |||
Other comprehensive income (loss) | (487,011) | (487,011) | |||
Balances (in shares) at Dec. 31, 2015 | 10,685,599 | ||||
Balances at Dec. 31, 2015 | $ 14,530,633 | 8,526,395 | 4,381,849 | (1,109,452) | $ 26,329,425 |
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | (99,675) | (99,675) | |||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (1,306,981) | $ (1,306,981) | |||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. (note 3) | (36,598) | $ (36,598) | |||
Balances (in shares) | 11,329,732 | ||||
Balances (in shares) | 10,685,599 | ||||
Exercise of stock options (in shares) | 109,963 | 109,963 | |||
Exercise of stock options | $ 350,506 | (204,116) | $ 146,390 | ||
Repurchase and retirement of shares (note 10) (in shares) | (308,416) | (308,416) | |||
Repurchase and retirement of shares (note 10) | $ (420,639) | (6,759,618) | $ (7,180,257) | ||
Income tax effect related to stock options exercised | 859,111 | 859,111 | |||
Stock-based compensation (note 11) | 799,434 | 799,434 | |||
Net income for the period | 16,067,154 | 16,067,154 | |||
Other comprehensive income (loss) | 1,208,606 | 1,208,606 | |||
Balances (in shares) at Dec. 31, 2016 | 10,461,574 | ||||
Balances at Dec. 31, 2016 | $ 14,460,500 | 2,857,921 | 20,399,511 | $ 99,154 | $ 37,817,086 |
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | (25,572) | (25,572) | |||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | $ (363,285) | $ (363,285) | |||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. (note 3) | $ (49,492) | $ (49,492) | |||
Balances (in shares) | 10,685,599 | ||||
Balances (in shares) | 10,461,574 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income for the period | $ 16,067,154 | $ 11,373,730 | $ 6,374,096 |
Items not involving cash: | |||
Depreciation of property and equipment | 1,823,683 | 1,404,296 | 926,102 |
Amortization of debt discount and issuance costs | 31,166 | ||
Amortization of intangible assets | 953,174 | 262,726 | 596,620 |
Impairment of indefinite life intangible asset | 42,673 | 206,116 | 577,145 |
Deferred income taxes | 1,194,232 | 134,861 | (1,084,470) |
Amortization of deferred rent | 24,729 | 27,449 | 16,899 |
Disposal of domain names | 29,691 | 24,066 | 26,878 |
Other income | (515,280) | (85,872) | |
Loss (gain) on change in the fair value of forward contracts | (322,732) | 136,276 | 50,624 |
Stock-based compensation | 799,434 | 526,025 | 542,738 |
Change in non-cash operating working capital: | |||
Accounts receivable | (3,754,234) | (220,188) | (1,484,282) |
Inventory | (307,014) | (442,806) | (84,088) |
Prepaid expenses and deposits | (1,182,765) | (1,282,054) | 611,747 |
Prepaid domain name registry and ancillary services fees | (4,640,923) | 630,653 | (331,453) |
Income taxes recoverable | 3,176,532 | (2,321,345) | (75,744) |
Accounts payable | 390,887 | 249,931 | 1,152,042 |
Accrued liabilities | 1,243,219 | 1,691,356 | 28,515 |
Customer deposits | 281,713 | 675,182 | (39,219) |
Deferred revenue | 6,255,027 | 366,273 | 1,088,083 |
Accreditation fees payable | 59,331 | (10,664) | (14,889) |
Net cash provided by operating activities | 21,649,697 | 13,346,011 | 8,877,344 |
Financing activities: | |||
Proceeds received on exercise of stock options | 146,390 | 803,136 | 1,478,924 |
Payment of tax obligations resulting from net exercise of stock options | (363,285) | (1,306,981) | |
Excess tax benefits from share-based compensation expense | 859,111 | 3,431,017 | 1,888,734 |
Repurchase of common stock | (7,180,257) | (23,616,286) | (1,181,857) |
Proceeds received on loan payable | 16,989,583 | 3,500,000 | |
Repayment of loan payable | (9,758,276) | (6,300,000) | |
Payment of loan payable costs | (513,665) | ||
Net cash provided by (used in) financing activities | 179,601 | (17,189,114) | (4,114,199) |
Investing activities: | |||
Additions to property and equipment | (7,917,822) | (2,967,360) | (711,656) |
Proceeds on waiver of rights to .online registry | 6,619,831 | ||
Acquisition of other assets | (8,199,000) | ||
Acquisition of intangible assets (note 5) | (6,529,654) | ||
Net cash provided by (used in) investing activities | (14,447,476) | 3,294,979 | (8,910,656) |
Increase in cash and cash equivalents | 7,381,822 | (548,124) | (4,147,511) |
Cash and cash equivalents, beginning of period | 7,723,253 | 8,271,377 | 12,418,888 |
Cash and cash equivalents, end of period | 15,105,075 | 7,723,253 | 8,271,377 |
Supplemental cash flow information: | |||
Interest paid | 420,298 | 173,197 | 207,777 |
Income taxes paid, net | 3,766,664 | 3,132,105 | 2,172,047 |
Supplementary disclosure of non-cash investing and financing activities: | |||
Property and equipment acquired during the period not yet paid for | 446,821 | 217,198 | 66,397 |
Ting Virginia LLC [Member] | |||
Investing activities: | |||
Remaining payment for the acquisition of Ting Virginia, LLC., net of cash of $21,423 (note 3) | $ (357,492) |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Ting Virginia LLC [Member] | |
Net cash | $ 21,423 |
Note 1 - Organization of the Co
Note 1 - Organization of the Company | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Tucows Inc. (the “Company”) provides simple useful services that help people unlock the power of the Internet. The Company provides US consumers and small businesses with mobile phone services nationally and high-speed fixed Internet access in selected towns. The Company is also a global distributor of Internet services, including domain name registration, digital certificates, and email. It provides these services primarily through a global Internet-based distribution network of Internet Service Providers, web hosting companies and other providers of Internet services to end-users. |
Note 2 -Significant Accounting
Note 2 -Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise noted. (a) Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. The Company has reclassified certain prior period income statement amounts and related notes to conform to the financial statement presentation adopted in the current year. As a result of these reclassifications, there were no changes to previously reported Income from operations, Net income, Earnings per share, or on previously reported Consolidated Balance Sheets or Consolidated Statements of Cash Flows. During Fiscal 2016, Prior to Fiscal 2016, $1.3 $1.2 December 31, 2015 2015") December 31, 2014 2014"), 108, 1.N, (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for carrying values of revenues, bad debts, goodwill and intangible assets which require estimates of future cash flows and discount rates, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. (c) Cash and cash equivalents All highly liquid investments, with an original term to maturity of three (d) Inventory Inventory primarily consi sts of mobile devices and related accessories, and Internet optical network terminals and are stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device, accessory shipped or optical network terminals. The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: Rate Asset 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 Assets under construction N/A 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 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. (f) Derivative Financial Instruments The Company uses 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, 815"), 815 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. (g) Goodwill and Other Intangible assets Goodwill Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not amortize goodwill. Impairment testing for goodwill is performed annually in the fourth year or more frequently if impairment indicators are present. Impairment testing is performed at the operating segment level. The Company has determined that it has two The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not that goodwill has been impaired. If, after this qualitative assessment, the Company determines that it is not more likely than not that goodwill has been impaired, then no further quantitative testing is necessary. In performance of the qualitative test, an evaluation is made of the impact of various factors to the expected future cash flows attributable to its operating segments and to the assumed discount rate which would be used to present value those cash flows. Consideration is given to factors such as, macro-economic and industry and market conditions including the capital markets and the competitive environment amongst others. In the event that the qualitative tests indicate that there may In performance of the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company ’s expected long-term operating and cash flow performance for its operating segment. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. Intangibles Assets not subject to amortization Intangible assets not subject to amortization consist of surname domain names and direct navigation domain names. While the domain names are renewed annually, through payment of a renewal fee to the applicable registry, the Company has the exclusive right to renew these names at its option. Renewals occur routinely and at a nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, economic or other factors that limit the useful life of these domain names on an aggregate basis and accordingly treat the portfolio of domain names as indefinite life intangible assets. The Company reevaluates the useful life determination for domain names in the portfolio each year to determine whether events and circumstances continue to support an indefinite useful life. The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names on an aggregate basis in the fourth Intangible Assets subject to amortization Intangible assets subject to amortization, consist of brand and customer relationships and are amortized on a straight-line basis over their estimated useful lives as follows: (in years) Brand 7 Customer relationships 4 - 7 Network rights 15 The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization may may (h) 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 revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. (i) Domain Services 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 ten 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) (2) third (3) 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 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 ’s Portfolio Domains. In addition, the Company uses third 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. (ii) Network Access Services 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. Revenues for fixed Internet access services are billed on a fixed monthly basis based on the service plan selected. 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 and Internet hardware to subscribers are 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. 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 ’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 (i) Deferred revenue Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other domain related Internet services, on both a wholesale and retail basis, net of external commissions. (j) Accreditation fees payable In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. (k) Prepaid domain name registry fees Prepaid domain name registry and other Internet services fees represent amounts paid to registries, and country code domain name operators for updating and maintaining the registries, as well as to suppliers of other Internet services. Domain name registry and other Internet services fees are recognized on a straight-line basis over the life of the contracted registration term. (l) Translation of foreign currency transactions The Company ’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the average rate for the year. (m) Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not “more likely than not” that some portion of or all of a deferred tax asset will be realized. The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% 12 months of the reporting date. The Company is entitled to earn investment tax credits (“ITCs”), which are credits related to specific qualifying expenditures as prescribed by Canadian Income Tax legislation. These ITCs relate primarily to research and development expenses. The ITCs are recognized as a reduction in income tax expense once the Company has reasonable assurance that the amounts will be realized. The Company has not made any ITC claims for the years ended December 31, 201 6 2015. (n) Stock-based compensation Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest, reduced for estimated forfeitures. (o) Earnings per common share Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. (p) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable and forward foreign exchange contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three (q) Fair value measurement Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three Level 1 —Quoted prices in active markets for identical assets or liabilities Level 2 —Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 —No observable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may The fair value of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 The fair value of the derivative financial instruments are determined using an estimated credit-adjusted mark-to-market valuation (a level 2 (r) Segment reporting The Company operates in two operating segments, Domain Services and Network Access Services. The Company ’s Domain Services revenues are attributed to the country in which the contract originates, primarily Canada. Revenues from domain names issued from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. The Company’s Network Access Services which consist primarily of mobile telephony services, as well as the provisioning of high speed Internet access, Internet hosting and consulting services, which are generated through its business operations in the United States. The Company ’s assets are located in Canada, the United States and Germany. (s) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted On January 1, 2016, No. 2015 16, Business Combinations (Topic 805) 2015 05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , 2014 15 , Presentation of Financial Statements – Going Concern (Subtopic 205 40), 2015 03 2015 15, Interest Imputation of Interest Subtopic 835 30 On January 1, 2016, 2015 17, Income Taxes (Topic 740) December 31, 2015 $3,243,718 Recent Accounting Pronouncements Not Yet Adopted In March 2016, 2016 09, Compensation – Stock Compensation 718) 2016 09”). 2016 9 December 15, 2016 (January 1, 2017 2016 05 2016 09 In March 2016, 2016 05, Derivatives and Hedging 815) 2016 05”). 2016 05 815 December 15, 2016 (January 1, 2017 2016 05 2016 05 In May 2014, FASB issued ASU No. 2014 09, 606) 2014 09"), five (1) (2) (3) (4) (5) 2014 09 December 15, 2016. July 9, 2015, one December 15, 2017 (January 1, 2018 March 2016, 2016 08 April 2016, 2016 10 May 2016, 2016 12 In January 2016, 2016 01, Financial Instruments – Overall (Subtopic 825 10) 2016 01 December 15, 2017 (January 1, 2018 2016 1 In August 2016, FASB issued ASU No. 2016 15, Statement of Cash Flows (Topic 230): 2016 15), eight December 15, 2017, 2016 15 In January 2017, 2017 01, Business Combinations (Topic 805): 2017 01"), first second December 15, 2017. 2017 01 . In February 2016, 2016 02, Leases (Topic 842) 2016 02 December 15, 2018 (January 1, 2019 first 2019 2016 02 In June 2016, 2016 13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments 2016 13”), 2016 13 December 15, 2019 December 15, 2018. 2016 13 January 1, 2020. 2016 13 In January 2017, FASB”) issued Accounting Standards Update (“ASU”) No. 2017 04, Intangibles – Goodwill and Other (Topic 350): 2017 01”), two second one December 15, 2020 (January 1, 2021 2017 04 . |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. On February 27, 2015, one 70% Internet Works), Fiber Roads, LLC and Navigator Network Services, LLC (the "BRI Group") for consideration of approximately $3.5 $3,125,000 December 31, 2014, $357,492 December 31, 2015. 2012 8) . Ting Fiber, Inc. and the selling shareholders (the “ Minority Shareholders”) also agreed to certain put and call options with regard to the remaining 30% second may 20% may 7 10% $100,000 20% February 1, 2017, 10% 16(c)) . In addition, on the fourth may ’ remaining interest for $120,000 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 1.6% 2016, $49,492 $3,086,090, December 31, 2016 $36,598 2015. 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 purchase price allocation based on the estimated 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 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4 . Property and equipment: Property and equipment consist of the following: December 31, 201 6 December 31, 201 5 Computer equipment $ 8,122,420 $ 6,865,906 Computer software 1,277,972 1,171,806 Furniture and equipment 1,168,691 1,094,455 Vehicles and tools 830,543 275,424 Fiber network 7,095,971 4,633,942 Customer equipment and installations 3,889,581 242,370 Leasehold improvements 110,453 55,719 22,495,631 14,339,622 Less: Accumulated depreciation 9,045,193 7,212,946 $ 13,450,438 $ 7,126,676 Depreciation of property and equipment: Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Depreciation of property and equipment $ 1,823,683 $ 1,404,296 $ 926,102 During t he year ended December 31, 2016 no December 31, 2015, $0.4 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5 . Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of purchase price over the fair value of tangible or identifiable intangible assets acquired and liabiliti es assumed in our acquisitions. The Company' s Goodwill balance is $21.0 December 31, 2016, December 31, 2015. 90% ($18.9 10% ($2.1 Goodwill is not amortized, but is subject to an annual impairment test. The Company performed an impairment analysis as outlined in note 2(g) in the 2016 2015 Other Intangible Assets: Intangible assets consist of acquired brand, customer relationships, surname domain names, direct navigation domain names and network rights. The Company considers its intangible assets consisting of surname domain names and direct navigation domain names as indefinite life intangible assets. The Company has the exclusive right to these domain names as long as the annual renewal fees are paid to the applicable registry. Renewals occur routinely and at a nominal cost. The indefinite life intangible assets are not amortized, but are subject to impairment tests performed throughout the year. During 2016, June 2006 December 31, 2016, $42,673, December 31, 2015 $206,116, Intangible assets, comprising brand, customer relationships and network rights are being amortized on a s traight-line basis over periods of four fifteen On April 1, 2016, $6.0 $0. 2 $6.0 2012 7 In Fiscal 2016, four $0.3 7 Acquired intangible assets consist of the following: 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, 2014 $ 11,525,624 $ 1,941,231 $ 110,510 $ 625,220 $ - $ 14,202,585 Acquisition of Ting Virginia, LLC (note 3) - - - 68,000 692,000 760,000 Additions to/(disposals from) domain portfolio, net (6,815 ) (17,251 ) - - - (24,066 ) Impairment of indefinite life intangible assets (179,454 ) (26,662 ) - - - (206,116 ) Amortization expense - - (30,840 ) (193,366 ) (38,520 ) (262,726 ) Balances, December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 14,469,677 - - - - - - Acquisition of customer relationships - - - 6,529,654 - 6,529,654 Additions to/(disposals from) domain portfolio, net (6,166 ) (23,525 ) - - - (29,691 ) Impairment of indefinite life intangible assets (37,968 ) (4,705 ) - - - (42,673 ) Amortization expense - - (74,460 ) (830,697 ) (48,017 ) (953,174 ) Balances, December 31, 2016 $ 11,295,221 $ 1,869,088 $ 5,210 $ 6,198,811 $ 605,463 $ 19,973,793 The following table shows the estimated amortization expense for each of the next 5 Year ending December 31, 201 7 $ 1,181,294 201 8 1,128,114 201 9 978,936 20 20 978,936 202 1 978,936 Thereafter 1,563,268 Total $ 6,809,484 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6 . Fair value measurement: For financial assets and liabilities recorded in our financial statements at fair value we utilize a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three 1 2 3 The following table provides a summary of the fair values of the Company ’s derivative instruments measured at fair value on a recurring basis as at December 31, 2016: December 31, 201 6 Fair Value Measurement Using Asset s at Level 1 Level 2 Level 3 Fair Value Derivative instrument asset $ — $ 172,888 $ — $ 172,888 Total Assets $ — $ 172,888 $ — $ 172,888 The following table provides a summary of the fair values of the Company ’s derivative instruments measured at fair value on a recurring basis as at December 31, 2015: December 31, 201 5 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 2,027,086 $ — $ 2,027,086 Total Liabilities $ — $ 2,027,086 $ — $ 2,027,086 |
Note 7 - Derivative Instruments
Note 7 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7 . Derivative instruments and hedging activities: Foreign currency forward contracts In October 2012, one eighteen The Company has designated certain of these transactions as cash flow hedges of forecasted transactions under ASC Topic 815. 815, December 31, 2016 2015, . As of December 31, 2016, $26.6 $24.0 815 (December 31, 2015 $24.0 $20.3 Fair value of derivative instruments and effect of derivative instruments on financial performance The effect of these derivative instruments on our consolidated financial statements as of, and for the year ended December 31, 2016, Fair value of derivative instruments in the consolidated balance sheets (see note 6 ) Derivatives Balance Sheet Location December 31, 201 6 Assets at Fair Value December 31, 201 5 Liabilities at Fair Value Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ 155,560 $ (1,721,683 ) Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ 17,328 $ (305,403 ) Total foreign currency forward contracts Derivative instruments $ 172,888 $ (2,027,086 ) Movement in AOCI balance for the year ended Dec ember 31, 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 871,925 (304,109 ) 567,816 Amount reclassified from accumulated other comprehensive income 1,005,318 (364,528 ) 640,790 Other comprehensive income (loss) for the year ended December 31, 2016 1,877,243 (668,637 ) 1,208,606 Ending AOCI balance – December 31, 2016 $ 155,560 $ (56,406 ) $ 99,154 Movement in AOCI balance for the year ended December 31, 201 5 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) Other comprehensive income (loss) before reclassifications (3,171,740 ) 1,140,275 (2,031,465 ) Amount reclassified from accumulated other comprehensive income 2,396,733 (852,279 ) 1,544,454 Other comprehensive income (loss) for the year ended December 31, 2015 (775,007 ) 287,996 (487,011 ) Ending AOCI balance – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Movement in AOCI balance for the year ended December 31, 201 4 Gains and losses on cash flow hedge s Tax impac t Total AOC I Opening AOCI balance – December 31, 2013 $ (372,593 ) $ 127,612 $ (244,981 ) Other comprehensive income (loss) before reclassification s (1,527,171 ) 523,056 (1,004,115 ) Amount reclassified from accumulated other comprehensive incom e 953,088 (326,433 ) 626,655 Other comprehensive income (loss) for the year ended December 31, 2014 (574,083 ) 196,623 (377,460 ) Ending AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) Effects of derivative instruments on income and other comprehensive income (OCI) 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 Operating expenses $ (736,616 ) Foreign currency forward contracts – year ended December 31, 2016 $ 1,208,606 Cost of revenues $ (221,460 ) Operating expenses $ (47,242 ) Operating expenses $ (1,870,818 ) Foreign currency forward contracts – year ended December 31, 2015 $ (487,011 ) Cost of revenues $ (525,916 ) Operating expenses $ (294,113 ) Operating expense s $ (704,42 7 ) Foreign currency forward contracts – year ended December 31, 2014 $ (377,46 0 ) Cost of revenue s $ (248,66 2 ) Operating expenses $ (20,53 5 ) In addition to the above, for those foreign currency forward contracts not designated as hedges, the Company has recorded a loss of $0.2 million upon settlement and a gain of $0.3 December 31, 2016, $0.5 $0.1 December 31, 2015, $0.3 $50,000 December 31, 2014, . |
Note 8 - Loan Payable
Note 8 - Loan Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8 . Loan payable: On August 18, 2016, “2016 “2016 2012 2016 The obligations of the Company under the 2016 are secured by a first The 2016 five 2016 $75 $15 ● a $5 ● a $15 ● a $40 Borrowings under the 2016 accrue interest and standby fees at variable rates based on borrowing elections by the Company and the Company’s Total Funded Debt to EBITDA as described below. The purpose of Facility A is for general working capital and general corporate requirements, while Facility B and Facility C support share repurchases, acquisitions and capital expenditures associated with the Company’s Fiber to the Home program (“FTTH”). The repayment terms for Facility A require monthly interest payments with any final principal payment becoming due upon maturity of the 2016 December 31st first first four five seven 2016 2.0:1 December 31 50% At December 31, 2016, no (December 31, 2015 – nil $6.0 (December 31, 2015 nil $4.7 (December 31, 2015 nil In addition, under the terms of the 2016 60 $15 Borrowings under the 2016 ’s Total Funded Debt to EBITDA ratio and the availment type as follows: If Total Funded Debt to EBITDA is less than 1.00, ● Canadian dollar borrowings based on Bankers ’ Acceptance (“CDN$ Bankers’ Acceptance Borrowings”) or U.S. dollar borrowings based on LIBOR (“US$ LIBOR Borrowings”) will be at 2.00% ● Canadian dollar borrowings based on Prime Rate (“CDN$ Prime Rate Borrowings”), U.S. dollar borrowings based on Prime Rate (“US$ Prime Rate Borrowings”) or U.S. dollar borrowings based on Base Rate (“US$ Base Rate Borrowings”) will be at 0.75% ● Standby fees will be at 0.40%. If Total Funded Debt to EBITDA is greater than or equal to 1.00 2.00, ● CDN$ Bankers ’ Acceptance Borrowings or US$ LIBOR Borrowings will be at 2.25% ● CDN$ Prime Rate Borrowings, US$ Prime Rate Borrowings or US$ Base Rate Borrowings will be at 1.00% ● Standby fees will be at 0.45%. If Total Funded Debt to EBITDA is greater than or equal to 2.00, ● CDN$ Bankers ’ Acceptance Borrowings or US$ LIBOR Borrowings will be at 2.75% ● CDN$ Prime Rate Borrowings, US$ Prime Rate Borrowings or US$ Base Rate Borrowings will be at 1.50% ● Standby fees will be at 0.55%. Prior to the Company entering into the 2016 November 19, 2012, two “2012 2016 2012 2012 2016 In connection with establishing the 2016 he Company incurred $0.5 five December 31, 2016, $31,166 December 31, 2015 $0). December 31, 2016 December 31, 2015 2012 Demand Loan Facilities $ - $ 3,500,000 2016 Credit Facility B 6,000,000 - 2016 Credit Facility C 4,731,306 - Less: unamortized debt discount and issuance costs (482,498 ) - Total loan payable 10,248,808 3,500,000 Less: loan payable, current portion 2,233,110 3,500,000 Loan payable, long-term portion $ 8,015,698 $ - The following table summarizes our scheduled principal repayments December 31, 2016: Principal repayments as of December 31, 2017 $ 2,233,110 2018 2,233,110 2019 2,233,110 2020 2,046,261 2021 1,485,714 Thereafter 500,000 $ 10,731,305 Treasury Risk Management Facility The Amended Credit Facility also provides for a $3.5 may 18 December 31, 2016, $26.6 General Terms The 2016 2016 four 2.25:1 March 31, 2017 2.00:1 1.20:1. $22 $20 $40 1.5 twelve December 31, 2016, On January 20, 2017, 16(b). |
Note 9 - Income Taxes
Note 9 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9 . Income taxes: The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 34% Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Income for the year before provision for income taxes $ 25,112,924 $ 17,942,957 $ 9,428,325 Computed expected tax expense $ 8,538,245 $ 6,100,605 $ 3,205,631 Increase (reduction) in income tax expense resulting from: State income taxes 530,803 265,489 64,056 Permanent differences, including foreign exchange 290,327 278,959 192,260 Other, including alternative minimum tax and adjustments to opening deferred tax assets (313,605 ) (75,826 ) (407,718 ) Provision for income taxes $ 9,045,770 $ 6,569,227 $ 3,054,229 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2016, 2015 December 31, 201 6 December 31, 201 5 Deferred tax assets: Deferred revenue $ 5,482,080 $ 5,454,284 Foreign tax credit 1,275,937 1,529,075 Amortization (2,184,944 ) (883,466 ) Accruals, including foreign exchange and other 1,135,652 1,521,199 Deferred tax assets $ 5,708,725 $ 7,621,092 Deferred tax liabilities: Limited life intangible assets $ (120,232 ) $ (169,731 Indefinite life intangible assets (4,706,960 ) (4,706,960 ) Total deferred tax liability, long-term portion $ (4,827,192 ) $ (4,876,691 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. Management considers projected future taxable income, uncertainties related to the industry in which the Company operates, and tax planning strategies in making this assessment. The Company had approximately $0.1 benefit as of December 31, 2016, December 31, 2015, The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The Company did not accrued as of December 31, 2016, December 31, 2015. Management believes that it is reasonably possible that $0.1 million of the unrecognized tax benefit will decrease in the next twelve The following is a reconciliation of Tucows ’ change in uncertain tax position: Total Gross Unrecognized Tax Benefits December 31, 201 6 December 31, 201 5 Balance, beginning of year $ 117,000 $ 117,000 Change in uncertain tax benefits — — Balance, end of year $ 117,000 $ 117,000 |
Note 10 - Common Shares
Note 10 - Common Shares | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 1 0 . Common shares: The Company ’s authorized common share capital is 250 December 31, 2016, 10,461,574 Repurchase of common shares: (a) Normal Course Issuer Bids: On February 9, 2016, $40 February 10, 2016 February 9, 2017. 308,416 December 31, 2016 $7.2 On February 11, 2015, may $20 million of the Company's common stock over the 12 February 11, 2015. 231,047 three December 31, 2015 $5.4 868,549 December 31, 2015 $20.0 (b) Modified Dutch Tender Offers: On January 7, 2015, a modified “Dutch auction tender December 2014. 193,907 $18.50 $3.6 $0.1 tender tender January 7, 2015, 11,135,825 Our current equity-based compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option holder can be paid for by having the option holder tender The following table summarizes our share repurchase activity for the periods covered below: Year Ended December 31, 201 6 201 5 201 4 Common stock repurchased on the open market or through tender offer Number of shares 308,416 1,062,456 79,392 Aggregate market value of shares (in thousands) $ 7,180 $ 23,616 $ 1,182 Average price per share $ 23.28 $ 22.23 $ 14.89 Common stock received in connection with share-based compensation Number of shares 25,572 99,675 — Aggregate market value of shares (in thousands) $ 634 $ 2,335 $ — Average price per share $ 24.80 $ 23.42 $ — |
Note 11 - Stock Option Plans
Note 11 - Stock Option Plans | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 1 1 . Stock option plans: The Company ’s 1996 “1996 may 1996 2,787,500 1996 four 1996 February 25, 2006; On November 22, 2006, 2006 “2006 July 29, 2010 1996 2006 2006 1.25 October 8, 2010, 2006 0.475 1.725 September 2015, 2006 0.75 2.475 2006 four seven one five September 2015 2006 Our current equity-based compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option holder can be paid for by having the option holder tender The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company ’s common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Tucows Inc. common shares at the date of grant. The fair value of stock options granted during t he years ended December 31, 2016, 2015 2014 Year ended December 31, 201 6 201 5 201 4 Volatility 66.1 % 44.1 % 56.1 % Risk-free interest rate 1.3 % 1.3 % 1.3 % Expected life (in years) 4.3 4.0 4.0 Dividend yield - % - % - % The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant $ 11.18 $ 7.40 $ 7.02 Details of stock option transactions are as follows: Year ended December 31, Year ended December 31, Year ended December 31, 2016 2015 2014 Number of shares Weighted average exercise price per share 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 $ 5.41 1,407,639 $ 3.80 Granted 81,750 22.66 67,500 21.26 102,475 15.78 Exercised (109,963 ) 3.79 (517,998 ) 3.53 (502,061 ) 2.95 Forfeited (9,902 ) 16.80 (10,323 ) 13.30 (28,366 ) 6.60 Expired (750 ) 3.76 (1,875 ) 2.40 (3,625 ) 3.36 Outstanding, end of period 474,501 12.67 513,366 9.24 976,062 5.41 Options exercisable, end of period 332,192 $ 10.08 321,155 $ 6.49 725,392 $ 4.03 As of December 31, 2016, 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 51,771 $ 2.95 1.2 $ 1,671,976 51,771 $ 2.95 1.2 $ 1,671,976 $ 5.52 - $ 8.92 171,705 6.64 2.4 4,912,868 157,723 6.47 2.3 4,539,689 $ 10.16 - $14.67 29,375 10.83 3.7 717,287 19,998 11.15 3.6 482,018 $ 15.51 - $19.95 131,150 17.37 4.6 2,344,893 72,700 17.18 4.3 1,314,039 $ 21.10 - $24.96 71,750 22.36 5.4 924,728 30,000 23.51 4.5 352,125 $ 24.97 - $27.53 18,750 27.53 4.7 144,750 - - - - 474,501 $ 12.67 3.5 $ 10,716,502 332,192 $ 10.08 2.9 $ 8,359,847 Total unrecognized compensation cost relating to unvested st ock options at December 31, 2016, $1.2 1.9 The total intrinsic value of options exercised during t he years ended December 31, 2016, 2015 2014 $2.4 $9.6 $5.5 December 31, 2016, 2015 2014 $0.1 $0.8 $1.5 The Company recorded stock-based compensation amounting to $0.8 $0.5 $0.5 December 31, 2016, 2015 2014 Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Network expenses $ 21,704 $ 28,915 $ 30,938 Sales and marketing 236,063 188,035 143,514 Technical operations and development 98,059 111,239 85,904 General and administrative 443,608 197,836 282,382 $ 799,434 $ 526,025 $ 542,738 |
Note 12 - Foreign Exchange
Note 12 - Foreign Exchange | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Foreign Currency Disclosure [Text Block] | 1 2 . Foreign exchange: A foreign exchange loss amounting to $0.1 December 31, 2016. $0.3 December 31, 2015. $0.3 December 31, 2014. |
Note 13 - Other Income, Net
Note 13 - Other Income, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 1 3 . Other income, net: In February 2015, three November 2015. $1.5 f three $0.5 December 31, 2016 $0.1 December 31, 2015. |
Note 14 - Earnings Per Common S
Note 14 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 1 4 . Earnings per common share: The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation: Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Numerator for basic and diluted earnings per common share: Net income for the year $ 16,067,154 $ 11,373,730 $ 6,374,096 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,524,856 10,968,500 11,220,874 Effect of stock options 188,739 391,584 509,524 Diluted weighted average number of shares outstanding 10,713,595 11,360,084 11,730,398 Basic earnings per common share $ 1.53 $ 1.04 $ 0.57 Diluted earnings per common share $ 1.50 $ 1.00 $ 0.54 Options to purchase 76,750 2016 (2015: 75,050; 2014: 95,762) |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 1 5 . Commitments and contingencies: (a) The Company has several non-cancelable lease and purchase obligations primarily for general office facilities, service contracts for mobile telephone services and equipment that expire over the next ten Contractual Obligations for the year ending December 31, Contractual Lease Obligations Purchase Obligations Total Obligations 201 7 $ 1,113,000 $ 18,051,000 $ 19,164,000 201 8 1,059,000 19,471,000 20,530,000 201 9 1,022,000 83,000 1,105,000 20 20 964,000 18,000 982,000 202 1 303,000 8,000 311,000 Thereafter 1,138,000 43,000 1,181,000 $ 5,599,000 $ 37,674,000 $ 43,273,000 Rental expense under operating lease agreements was $1.2 $1.0 $0.9 December 31, 2016, 2015 2014, (b) On February 9, 2015 Under the agreement, the City will finance, construct, and maintain the WFN which will be leased to TING for a period of ten Under the terms of the agreement, TING may ’s revenue from leasing the network to TING and the City’s debt service requirements relating to financing of the network. TING is responsible for shortfalls between $50,000 $150,000 2016, $21 five 30 December 31, 2016, $1.7 million and City’s revenues from TING exceed the City’s debt service requirements. The Company does not believe it will be responsible for any shortfall in Fiscal 2017. (c) In the normal course of its operations, the Company becomes involved in various legal claims and lawsuits. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions outstanding or pending as of December 31, 2016 |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 6 . Subsequent events: (a) On January 20, 2017, nto a Stock Purchase Agreement with its indirect wholly owned subsidiary, Tucows (Emerald), LLC, Rightside Group, Ltd., and Rightside Operating Co., pursuant to which Tucows (Emerald), LLC purchased from Rightside Operating Co. all of the issued and outstanding capital stock of eNom Incorporated, a domain name registrar business, or eNom. The purchase price was $83.5 $6.8 $76.7 16(b)). may The following table shows the preliminary allocation of the purchase price for eNom, Incorporated to the acquired identifiable assets, liabilities assumed and goodwill: Total purchase price $ 76,680,000 Accounts receivable, net 6,000,000 Other current assets 3,580,000 Deferred registration costs 80,000,000 Property and equipment, net 4,500,000 Intangible assets, net 44,300,000 Total identifiable assets 138,380,000 Accounts payable and accrued liabilities (9,700,000 ) Customer deposits (6,700,000 ) Deferred revenue (88,066,000 ) Total liabilities assumed (104,466,000 ) Total net assets (liabilities) assumed 33,914,000 Total goodwill $ 42,766,000 (b) On January 20, 2017, $40 $35 $85 $84.5 $140 the Company has agreed to comply with the following financial covenants at all times, which are to be calculated on a rolling four 3.00:1 September 30, 2017, 2.50:1 September 30, 2018 2.25:1 1.20:1. $32.8 $20 $40 1.5 twelve The amended credit agreement also provides for an additional interest rate tier if the Company exceeds a 2.25x five second 2017. (c) On February 1, 2017, option to purchase an additional 20% $2.0 10% (d) On March 1, 2017, the Company announced that its Board of Directors has approved a stock buyback program to repurchase up to $40 March 1, 2017 February 28, 2018. |
Note 17 - Segment Reporting
Note 17 - Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 7 . Segment Reporting: (a) We are organized and managed based on two 1. Network Access Services - This segment derives revenue from the sale of mobile phones, telephony services high speed Internet access, Internet hosting and consulting services to individuals and small businesses primarily through the Ting website. Revenues are generated in the United States. 2 . 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 on currency forward contracts, other income (expense), and provision for income taxes, are organized along functional lines and are not included in the measurement of segment profitability. Total assets and total liabilities are centrally managed and are not reviewed at the segment level by the chief operating decision maker. The Company follows the same accounting policies for the segments as those described in note 2 Information by reportable segments, which is regularly reported to the chief operating decision maker is as follows: Network Access Services Domain Name Services Consolidated Totals Years ended December 31, 2016 Net Revenues $ 73,778,951 $ 116,039,981 $ 189,818,932 Cost of revenues Cost of revenues 37,939,683 82,247,279 120,186,962 Network expenses 1,398,899 3,811,601 5,210,500 Depreciation of property and equipment 977,395 342,424 1,319,819 Amortization of intangible assets 48,017 - 48,017 Total cost of revenues 40,363,994 86,401,304 126,765,298 Gross Profit 33,414,957 29,638,677 63,053,634 Expenses: Sales and marketing 20,754,752 Technical operations and development 4,494,819 General and administrative 11,404,793 Depreciation of property and equipment 503,864 Amortization of intangible assets 905,157 Impairment of indefinite life intangible assets 42,673 Loss on currency forward contracts (98,977 ) Income from operations 25,046,553 Other income (expenses), net 66,371 Income before provision for income taxes $ 25,112,924 Network Access Domain Name Services Consolidated Totals Year ended December 31, 2015 Net Revenues $ 60,974,265 $ 110,712,514 $ 171,686,779 Cost of revenues Cost of revenues 34,133,569 78,847,116 112,980,685 Network expenses 698,960 4,765,817 5,464,777 Depreciation of property and equipment 447,644 697,344 1,144,988 Amortization of intangible assets 38,520 - 38,520 Total cost of revenues 35,318,693 84,310,277 119,628,970 Gross Profit 25,655,572 26,402,237 52,057,809 Expenses: Sales and marketing 17,394,376 Technical operations and development 4,502,845 General and administrative 10,661,949 Depreciation of property and equipment 259,307 Amortization of intangible assets 224,206 Impairment of indefinite life intangible assets 206,116 Loss on currency forward contracts 792,900 Income from operations 18,016,110 Other income (expenses), net (73,153 ) Income before provision for income taxes $ 17,942,957 Network Access Domain Name Services Consolidated Totals Year ended December 31, 2014 Net Revenues $ 34,783,563 $ 111,725,147 $ 146,508,710 Cost of revenues Cost of revenues 21,870,780 79,990,222 101,861,002 Network expenses - 4,554,635 4,554,635 Depreciation of property and equipment - 699,670 699,670 Amortization of intangible assets - - - Total cost of revenues 21,870,780 85,244,527 107,115,307 Gross Profit 12,912,783 26,480,620 39,393,403 Expenses: Sales and marketing 14,235,668 Technical operations and development 4,305,715 General and administrative 9,459,008 Depreciation of property and equipment 226,432 Amortization of intangible assets 596,620 Impairment of indefinite life intangible assets 577,145 Loss on currency forward contracts 357,760 Income from operations 9,635,055 Other income (expenses), net (206,730 ) Income before provision for income taxes $ 9,428,325 (b) The following is a summary of the Company’s revenue earned from each significant revenue stream: Year ended December 31, 2016 2015 2014 Network Access Services: Mobile Services $ 70,127,294 $ 57,685,554 $ 34,783,563 Other Services 3,651,657 3,288,711 - Total Network Access Services 73,778,951 60,974,265 34,783,563 Domain Services: Wholesale Domain Services 89,009,546 84,934,519 86,585,994 Value Added Services 9,169,721 9,298,978 9,654,734 Total Wholesale 98,179,267 94,233,497 96,240,728 Retail 14,629,949 12,637,498 10,417,746 Portfolio 3,230,765 3,841,519 5,066,673 Total Domain Services 116,039,981 110,712,514 111,725,147 $ 189,818,932 $ 171,686,779 $ 146,508,710 During t he years ended December 31, 2016, 2015 2014, 10% December 31, 2016, 2015 2014 10% (c) The following is a summary of the Company’s cost of revenues from each significant revenue stream: Year ended December 31, 2016 2015 2014 Network Access Services: Mobile Services $ 35,914,882 $ 32,615,416 $ 21,870,780 Other Services 2,024,801 1,518,153 - Total Network Access Services 37,939,683 34,133,569 21,870,780 Domain Services: Wholesale Domain Services 72,947,730 70,633,267 72,353,061 Value Added Services 1,918,165 2,023,341 2,211,085 Total Wholesale 74,865,895 72,656,608 74,564,146 Retail 6,765,237 5,494,550 4,539,439 Portfolio 616,147 695,958 886,637 Total Domain Services 82,247,279 78,847,116 79,990,222 Network Expenses: Network, other costs 5,210,500 5,464,777 4,554,635 Network, depreciation and amortization costs 1,367,836 1,183,508 699,670 6,578,336 6,648,285 5,254,305 $ 126,765,298 $ 119,628,970 $ 107,115,307 (d) The following is a summary of the Company’s property and equipment by geographic region: December 31, 2016 December 31, 2015 Canada $ 1,010,427 $ 1,225,236 United States 12,398,961 5,847,666 Germany 41,050 53,774 $ 13,450,438 $ 7,126,676 (e) The following is a summary of the Company’s amortizable intangible assets by geographic region: December 31, 2016 December 31, 2015 Canada $ 5,850,596 $ - United States 633,798 702,594 Germany 325,090 530,410 $ 6,809,484 $ 1,233,004 (f) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region: December 31, 2016 December 31, 2015 Canada $ 5,708,725 $ 7,621,092 $ 5,708,725 $ 7,621,092 (g) Valuation and qualifying accounts: Allowance for doubtful accounts exclusding provision for credit notes Balance at beginning of period Charged to (recovered) costs and expenses Write-offs during period Balance at end of period Year ended December 31, 2016 $ 122,095 $ 42,050 $ - $ 164,145 Year ended December 31, 2015 $ 125,766 $ (3,671 ) $ - $ 122,095 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. The Company has reclassified certain prior period income statement amounts and related notes to conform to the financial statement presentation adopted in the current year. As a result of these reclassifications, there were no changes to previously reported Income from operations, Net income, Earnings per share, or on previously reported Consolidated Balance Sheets or Consolidated Statements of Cash Flows. During Fiscal 2016, Prior to Fiscal 2016, $1.3 $1.2 December 31, 2015 2015") December 31, 2014 2014"), 108, 1.N, |
Use of Estimates, Policy [Policy Text Block] | (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for carrying values of revenues, bad debts, goodwill and intangible assets which require estimates of future cash flows and discount rates, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (c) Cash and cash equivalents All highly liquid investments, with an original term to maturity of three |
Inventory, Policy [Policy Text Block] | (d) Inventory Inventory primarily consi sts of mobile devices and related accessories, and Internet optical network terminals and are stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device, accessory shipped or optical network terminals. The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may |
Property, Plant and Equipment, Policy [Policy Text Block] | (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: Rate Asset 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 Assets under construction N/A 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 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] | (f) Derivative Financial Instruments The Company uses 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, 815"), 815 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. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | (g) Goodwill and Other Intangible assets Goodwill Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not amortize goodwill. Impairment testing for goodwill is performed annually in the fourth year or more frequently if impairment indicators are present. Impairment testing is performed at the operating segment level. The Company has determined that it has two The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not that goodwill has been impaired. If, after this qualitative assessment, the Company determines that it is not more likely than not that goodwill has been impaired, then no further quantitative testing is necessary. In performance of the qualitative test, an evaluation is made of the impact of various factors to the expected future cash flows attributable to its operating segments and to the assumed discount rate which would be used to present value those cash flows. Consideration is given to factors such as, macro-economic and industry and market conditions including the capital markets and the competitive environment amongst others. In the event that the qualitative tests indicate that there may In performance of the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company ’s expected long-term operating and cash flow performance for its operating segment. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. Intangibles Assets not subject to amortization Intangible assets not subject to amortization consist of surname domain names and direct navigation domain names. While the domain names are renewed annually, through payment of a renewal fee to the applicable registry, the Company has the exclusive right to renew these names at its option. Renewals occur routinely and at a nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, economic or other factors that limit the useful life of these domain names on an aggregate basis and accordingly treat the portfolio of domain names as indefinite life intangible assets. The Company reevaluates the useful life determination for domain names in the portfolio each year to determine whether events and circumstances continue to support an indefinite useful life. The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names on an aggregate basis in the fourth Intangible Assets subject to amortization Intangible assets subject to amortization, consist of brand and customer relationships and are amortized on a straight-line basis over their estimated useful lives as follows: (in years) Brand 7 Customer relationships 4 - 7 Network rights 15 The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization may may |
Revenue Recognition, Policy [Policy Text Block] | (h) 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 revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. (i) Domain Services 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 ten 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) (2) third (3) 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 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 ’s Portfolio Domains. In addition, the Company uses third 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. (ii) Network Access Services 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. Revenues for fixed Internet access services are billed on a fixed monthly basis based on the service plan selected. 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 and Internet hardware to subscribers are 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. 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 ’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 |
Revenue Recognition, Deferred Revenue [Policy Text Block] | (i) Deferred revenue Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other domain related Internet services, on both a wholesale and retail basis, net of external commissions. |
Accreditation Fees Payable [Policy Text Block] | (j) Accreditation fees payable In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. |
Prepaid Domain Name Registry Fees [Policy Text Block] | (k) Prepaid domain name registry fees Prepaid domain name registry and other Internet services fees represent amounts paid to registries, and country code domain name operators for updating and maintaining the registries, as well as to suppliers of other Internet services. Domain name registry and other Internet services fees are recognized on a straight-line basis over the life of the contracted registration term. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (l) Translation of foreign currency transactions The Company ’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the average rate for the year. |
Income Tax, Policy [Policy Text Block] | (m) Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not “more likely than not” that some portion of or all of a deferred tax asset will be realized. The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% 12 months of the reporting date. The Company is entitled to earn investment tax credits (“ITCs”), which are credits related to specific qualifying expenditures as prescribed by Canadian Income Tax legislation. These ITCs relate primarily to research and development expenses. The ITCs are recognized as a reduction in income tax expense once the Company has reasonable assurance that the amounts will be realized. The Company has not made any ITC claims for the years ended December 31, 201 6 2015. |
Compensation Related Costs, Policy [Policy Text Block] | (n) Stock-based compensation Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest, reduced for estimated forfeitures. |
Earnings Per Share, Policy [Policy Text Block] | (o) Earnings per common share Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (p) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable and forward foreign exchange contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three |
Fair Value Measurement, Policy [Policy Text Block] | (q) Fair value measurement Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three Level 1 —Quoted prices in active markets for identical assets or liabilities Level 2 —Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 —No observable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may The fair value of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 The fair value of the derivative financial instruments are determined using an estimated credit-adjusted mark-to-market valuation (a level 2 |
Segment Reporting, Policy [Policy Text Block] | (r) Segment reporting The Company operates in two operating segments, Domain Services and Network Access Services. The Company ’s Domain Services revenues are attributed to the country in which the contract originates, primarily Canada. Revenues from domain names issued from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. The Company’s Network Access Services which consist primarily of mobile telephony services, as well as the provisioning of high speed Internet access, Internet hosting and consulting services, which are generated through its business operations in the United States. The Company ’s assets are located in Canada, the United States and Germany. |
New Accounting Pronouncements, Policy [Policy Text Block] | (s) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted On January 1, 2016, No. 2015 16, Business Combinations (Topic 805) 2015 05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , 2014 15 , Presentation of Financial Statements – Going Concern (Subtopic 205 40), 2015 03 2015 15, Interest Imputation of Interest Subtopic 835 30 On January 1, 2016, 2015 17, Income Taxes (Topic 740) December 31, 2015 $3,243,718 Recent Accounting Pronouncements Not Yet Adopted In March 2016, 2016 09, Compensation – Stock Compensation 718) 2016 09”). 2016 9 December 15, 2016 (January 1, 2017 2016 05 2016 09 In March 2016, 2016 05, Derivatives and Hedging 815) 2016 05”). 2016 05 815 December 15, 2016 (January 1, 2017 2016 05 2016 05 In May 2014, FASB issued ASU No. 2014 09, 606) 2014 09"), five (1) (2) (3) (4) (5) 2014 09 December 15, 2016. July 9, 2015, one December 15, 2017 (January 1, 2018 March 2016, 2016 08 April 2016, 2016 10 May 2016, 2016 12 In January 2016, 2016 01, Financial Instruments – Overall (Subtopic 825 10) 2016 01 December 15, 2017 (January 1, 2018 2016 1 In August 2016, FASB issued ASU No. 2016 15, Statement of Cash Flows (Topic 230): 2016 15), eight December 15, 2017, 2016 15 In January 2017, 2017 01, Business Combinations (Topic 805): 2017 01"), first second December 15, 2017. 2017 01 . In February 2016, 2016 02, Leases (Topic 842) 2016 02 December 15, 2018 (January 1, 2019 first 2019 2016 02 In June 2016, 2016 13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments 2016 13”), 2016 13 December 15, 2019 December 15, 2018. 2016 13 January 1, 2020. 2016 13 In January 2017, FASB”) issued Accounting Standards Update (“ASU”) No. 2017 04, Intangibles – Goodwill and Other (Topic 350): 2017 01”), two second one December 15, 2020 (January 1, 2021 2017 04 . |
Note 2 -Significant Accountin27
Note 2 -Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Depreciation Rates [Table Text Block] | Rate Asset 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 Assets under construction N/A |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | (in years) Brand 7 Customer relationships 4 - 7 Network rights 15 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) - Ting Virginia LLC [Member] | 12 Months Ended |
Dec. 31, 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 4 - Property and Equipme29
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 201 6 December 31, 201 5 Computer equipment $ 8,122,420 $ 6,865,906 Computer software 1,277,972 1,171,806 Furniture and equipment 1,168,691 1,094,455 Vehicles and tools 830,543 275,424 Fiber network 7,095,971 4,633,942 Customer equipment and installations 3,889,581 242,370 Leasehold improvements 110,453 55,719 22,495,631 14,339,622 Less: Accumulated depreciation 9,045,193 7,212,946 $ 13,450,438 $ 7,126,676 |
Schedule of Depreciation [Table Text Block] | Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Depreciation of property and equipment $ 1,823,683 $ 1,404,296 $ 926,102 |
Note 5 - Goodwill and Other I30
Note 5 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
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, December 31, 2014 $ 11,525,624 $ 1,941,231 $ 110,510 $ 625,220 $ - $ 14,202,585 Acquisition of Ting Virginia, LLC (note 3) - - - 68,000 692,000 760,000 Additions to/(disposals from) domain portfolio, net (6,815 ) (17,251 ) - - - (24,066 ) Impairment of indefinite life intangible assets (179,454 ) (26,662 ) - - - (206,116 ) Amortization expense - - (30,840 ) (193,366 ) (38,520 ) (262,726 ) Balances, December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 14,469,677 - - - - - - Acquisition of customer relationships - - - 6,529,654 - 6,529,654 Additions to/(disposals from) domain portfolio, net (6,166 ) (23,525 ) - - - (29,691 ) Impairment of indefinite life intangible assets (37,968 ) (4,705 ) - - - (42,673 ) Amortization expense - - (74,460 ) (830,697 ) (48,017 ) (953,174 ) Balances, December 31, 2016 $ 11,295,221 $ 1,869,088 $ 5,210 $ 6,198,811 $ 605,463 $ 19,973,793 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 201 7 $ 1,181,294 201 8 1,128,114 201 9 978,936 20 20 978,936 202 1 978,936 Thereafter 1,563,268 Total $ 6,809,484 |
Note 6 - Fair Value Measureme31
Note 6 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 201 6 Fair Value Measurement Using Asset s at Level 1 Level 2 Level 3 Fair Value Derivative instrument asset $ — $ 172,888 $ — $ 172,888 Total Assets $ — $ 172,888 $ — $ 172,888 December 31, 201 5 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 2,027,086 $ — $ 2,027,086 Total Liabilities $ — $ 2,027,086 $ — $ 2,027,086 |
Note 7 - Derivative Instrumen32
Note 7 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives Balance Sheet Location December 31, 201 6 Assets at Fair Value December 31, 201 5 Liabilities at Fair Value Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ 155,560 $ (1,721,683 ) Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ 17,328 $ (305,403 ) Total foreign currency forward contracts Derivative instruments $ 172,888 $ (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 – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Other comprehensive income (loss) before reclassifications 871,925 (304,109 ) 567,816 Amount reclassified from accumulated other comprehensive income 1,005,318 (364,528 ) 640,790 Other comprehensive income (loss) for the year ended December 31, 2016 1,877,243 (668,637 ) 1,208,606 Ending AOCI balance – December 31, 2016 $ 155,560 $ (56,406 ) $ 99,154 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) Other comprehensive income (loss) before reclassifications (3,171,740 ) 1,140,275 (2,031,465 ) Amount reclassified from accumulated other comprehensive income 2,396,733 (852,279 ) 1,544,454 Other comprehensive income (loss) for the year ended December 31, 2015 (775,007 ) 287,996 (487,011 ) Ending AOCI balance – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Gains and losses on cash flow hedge s Tax impac t Total AOC I Opening AOCI balance – December 31, 2013 $ (372,593 ) $ 127,612 $ (244,981 ) Other comprehensive income (loss) before reclassification s (1,527,171 ) 523,056 (1,004,115 ) Amount reclassified from accumulated other comprehensive incom e 953,088 (326,433 ) 626,655 Other comprehensive income (loss) for the year ended December 31, 2014 (574,083 ) 196,623 (377,460 ) Ending AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) |
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 Operating expenses $ (736,616 ) Foreign currency forward contracts – year ended December 31, 2016 $ 1,208,606 Cost of revenues $ (221,460 ) Operating expenses $ (47,242 ) Operating expenses $ (1,870,818 ) Foreign currency forward contracts – year ended December 31, 2015 $ (487,011 ) Cost of revenues $ (525,916 ) Operating expenses $ (294,113 ) Operating expense s $ (704,42 7 ) Foreign currency forward contracts – year ended December 31, 2014 $ (377,46 0 ) Cost of revenue s $ (248,66 2 ) Operating expenses $ (20,53 5 ) |
Note 8 - Loan Payable (Tables)
Note 8 - Loan Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 31, 2016 December 31, 2015 2012 Demand Loan Facilities $ - $ 3,500,000 2016 Credit Facility B 6,000,000 - 2016 Credit Facility C 4,731,306 - Less: unamortized debt discount and issuance costs (482,498 ) - Total loan payable 10,248,808 3,500,000 Less: loan payable, current portion 2,233,110 3,500,000 Loan payable, long-term portion $ 8,015,698 $ - |
Schedule of Maturities of Long-term Debt [Table Text Block] | Principal repayments as of December 31, 2017 $ 2,233,110 2018 2,233,110 2019 2,233,110 2020 2,046,261 2021 1,485,714 Thereafter 500,000 $ 10,731,305 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Income for the year before provision for income taxes $ 25,112,924 $ 17,942,957 $ 9,428,325 Computed expected tax expense $ 8,538,245 $ 6,100,605 $ 3,205,631 Increase (reduction) in income tax expense resulting from: State income taxes 530,803 265,489 64,056 Permanent differences, including foreign exchange 290,327 278,959 192,260 Other, including alternative minimum tax and adjustments to opening deferred tax assets (313,605 ) (75,826 ) (407,718 ) Provision for income taxes $ 9,045,770 $ 6,569,227 $ 3,054,229 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 201 6 December 31, 201 5 Deferred tax assets: Deferred revenue $ 5,482,080 $ 5,454,284 Foreign tax credit 1,275,937 1,529,075 Amortization (2,184,944 ) (883,466 ) Accruals, including foreign exchange and other 1,135,652 1,521,199 Deferred tax assets $ 5,708,725 $ 7,621,092 Deferred tax liabilities: Limited life intangible assets $ (120,232 ) $ (169,731 Indefinite life intangible assets (4,706,960 ) (4,706,960 ) Total deferred tax liability, long-term portion $ (4,827,192 ) $ (4,876,691 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Total Gross Unrecognized Tax Benefits December 31, 201 6 December 31, 201 5 Balance, beginning of year $ 117,000 $ 117,000 Change in uncertain tax benefits — — Balance, end of year $ 117,000 $ 117,000 |
Note 10 - Common Shares (Tables
Note 10 - Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Share Repurchases [Table Text Block] | Year Ended December 31, 201 6 201 5 201 4 Common stock repurchased on the open market or through tender offer Number of shares 308,416 1,062,456 79,392 Aggregate market value of shares (in thousands) $ 7,180 $ 23,616 $ 1,182 Average price per share $ 23.28 $ 22.23 $ 14.89 Common stock received in connection with share-based compensation Number of shares 25,572 99,675 — Aggregate market value of shares (in thousands) $ 634 $ 2,335 $ — Average price per share $ 24.80 $ 23.42 $ — |
Note 11 - Stock Option Plans (T
Note 11 - Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 201 6 201 5 201 4 Volatility 66.1 % 44.1 % 56.1 % Risk-free interest rate 1.3 % 1.3 % 1.3 % Expected life (in years) 4.3 4.0 4.0 Dividend yield - % - % - % The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant $ 11.18 $ 7.40 $ 7.02 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Year ended December 31, Year ended December 31, Year ended December 31, 2016 2015 2014 Number of shares Weighted average exercise price per share 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 $ 5.41 1,407,639 $ 3.80 Granted 81,750 22.66 67,500 21.26 102,475 15.78 Exercised (109,963 ) 3.79 (517,998 ) 3.53 (502,061 ) 2.95 Forfeited (9,902 ) 16.80 (10,323 ) 13.30 (28,366 ) 6.60 Expired (750 ) 3.76 (1,875 ) 2.40 (3,625 ) 3.36 Outstanding, end of period 474,501 12.67 513,366 9.24 976,062 5.41 Options exercisable, end of period 332,192 $ 10.08 321,155 $ 6.49 725,392 $ 4.03 |
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 51,771 $ 2.95 1.2 $ 1,671,976 51,771 $ 2.95 1.2 $ 1,671,976 $ 5.52 - $ 8.92 171,705 6.64 2.4 4,912,868 157,723 6.47 2.3 4,539,689 $ 10.16 - $14.67 29,375 10.83 3.7 717,287 19,998 11.15 3.6 482,018 $ 15.51 - $19.95 131,150 17.37 4.6 2,344,893 72,700 17.18 4.3 1,314,039 $ 21.10 - $24.96 71,750 22.36 5.4 924,728 30,000 23.51 4.5 352,125 $ 24.97 - $27.53 18,750 27.53 4.7 144,750 - - - - 474,501 $ 12.67 3.5 $ 10,716,502 332,192 $ 10.08 2.9 $ 8,359,847 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Network expenses $ 21,704 $ 28,915 $ 30,938 Sales and marketing 236,063 188,035 143,514 Technical operations and development 98,059 111,239 85,904 General and administrative 443,608 197,836 282,382 $ 799,434 $ 526,025 $ 542,738 |
Note 14 - Earnings Per Common37
Note 14 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31, 201 6 Year ended December 31, 201 5 Year ended December 31, 201 4 Numerator for basic and diluted earnings per common share: Net income for the year $ 16,067,154 $ 11,373,730 $ 6,374,096 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,524,856 10,968,500 11,220,874 Effect of stock options 188,739 391,584 509,524 Diluted weighted average number of shares outstanding 10,713,595 11,360,084 11,730,398 Basic earnings per common share $ 1.53 $ 1.04 $ 0.57 Diluted earnings per common share $ 1.50 $ 1.00 $ 0.54 |
Note 15 - Commitments and Con38
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Contractual Obligations for the year ending December 31, Contractual Lease Obligations Purchase Obligations Total Obligations 201 7 $ 1,113,000 $ 18,051,000 $ 19,164,000 201 8 1,059,000 19,471,000 20,530,000 201 9 1,022,000 83,000 1,105,000 20 20 964,000 18,000 982,000 202 1 303,000 8,000 311,000 Thereafter 1,138,000 43,000 1,181,000 $ 5,599,000 $ 37,674,000 $ 43,273,000 |
Note 16 - Subsequent Events (Ta
Note 16 - Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
eNom Incorporated [Member] | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Total purchase price $ 76,680,000 Accounts receivable, net 6,000,000 Other current assets 3,580,000 Deferred registration costs 80,000,000 Property and equipment, net 4,500,000 Intangible assets, net 44,300,000 Total identifiable assets 138,380,000 Accounts payable and accrued liabilities (9,700,000 ) Customer deposits (6,700,000 ) Deferred revenue (88,066,000 ) Total liabilities assumed (104,466,000 ) Total net assets (liabilities) assumed 33,914,000 Total goodwill $ 42,766,000 |
Note 17 - Segment Reporting (Ta
Note 17 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Network Access Services Domain Name Services Consolidated Totals Years ended December 31, 2016 Net Revenues $ 73,778,951 $ 116,039,981 $ 189,818,932 Cost of revenues Cost of revenues 37,939,683 82,247,279 120,186,962 Network expenses 1,398,899 3,811,601 5,210,500 Depreciation of property and equipment 977,395 342,424 1,319,819 Amortization of intangible assets 48,017 - 48,017 Total cost of revenues 40,363,994 86,401,304 126,765,298 Gross Profit 33,414,957 29,638,677 63,053,634 Expenses: Sales and marketing 20,754,752 Technical operations and development 4,494,819 General and administrative 11,404,793 Depreciation of property and equipment 503,864 Amortization of intangible assets 905,157 Impairment of indefinite life intangible assets 42,673 Loss on currency forward contracts (98,977 ) Income from operations 25,046,553 Other income (expenses), net 66,371 Income before provision for income taxes $ 25,112,924 Network Access Domain Name Services Consolidated Totals Year ended December 31, 2015 Net Revenues $ 60,974,265 $ 110,712,514 $ 171,686,779 Cost of revenues Cost of revenues 34,133,569 78,847,116 112,980,685 Network expenses 698,960 4,765,817 5,464,777 Depreciation of property and equipment 447,644 697,344 1,144,988 Amortization of intangible assets 38,520 - 38,520 Total cost of revenues 35,318,693 84,310,277 119,628,970 Gross Profit 25,655,572 26,402,237 52,057,809 Expenses: Sales and marketing 17,394,376 Technical operations and development 4,502,845 General and administrative 10,661,949 Depreciation of property and equipment 259,307 Amortization of intangible assets 224,206 Impairment of indefinite life intangible assets 206,116 Loss on currency forward contracts 792,900 Income from operations 18,016,110 Other income (expenses), net (73,153 ) Income before provision for income taxes $ 17,942,957 Network Access Domain Name Services Consolidated Totals Year ended December 31, 2014 Net Revenues $ 34,783,563 $ 111,725,147 $ 146,508,710 Cost of revenues Cost of revenues 21,870,780 79,990,222 101,861,002 Network expenses - 4,554,635 4,554,635 Depreciation of property and equipment - 699,670 699,670 Amortization of intangible assets - - - Total cost of revenues 21,870,780 85,244,527 107,115,307 Gross Profit 12,912,783 26,480,620 39,393,403 Expenses: Sales and marketing 14,235,668 Technical operations and development 4,305,715 General and administrative 9,459,008 Depreciation of property and equipment 226,432 Amortization of intangible assets 596,620 Impairment of indefinite life intangible assets 577,145 Loss on currency forward contracts 357,760 Income from operations 9,635,055 Other income (expenses), net (206,730 ) Income before provision for income taxes $ 9,428,325 |
Schedule of Operating Income by Revenue Stream [Table Text Block] | Year ended December 31, 2016 2015 2014 Network Access Services: Mobile Services $ 70,127,294 $ 57,685,554 $ 34,783,563 Other Services 3,651,657 3,288,711 - Total Network Access Services 73,778,951 60,974,265 34,783,563 Domain Services: Wholesale Domain Services 89,009,546 84,934,519 86,585,994 Value Added Services 9,169,721 9,298,978 9,654,734 Total Wholesale 98,179,267 94,233,497 96,240,728 Retail 14,629,949 12,637,498 10,417,746 Portfolio 3,230,765 3,841,519 5,066,673 Total Domain Services 116,039,981 110,712,514 111,725,147 $ 189,818,932 $ 171,686,779 $ 146,508,710 Year ended December 31, 2016 2015 2014 Network Access Services: Mobile Services $ 35,914,882 $ 32,615,416 $ 21,870,780 Other Services 2,024,801 1,518,153 - Total Network Access Services 37,939,683 34,133,569 21,870,780 Domain Services: Wholesale Domain Services 72,947,730 70,633,267 72,353,061 Value Added Services 1,918,165 2,023,341 2,211,085 Total Wholesale 74,865,895 72,656,608 74,564,146 Retail 6,765,237 5,494,550 4,539,439 Portfolio 616,147 695,958 886,637 Total Domain Services 82,247,279 78,847,116 79,990,222 Network Expenses: Network, other costs 5,210,500 5,464,777 4,554,635 Network, depreciation and amortization costs 1,367,836 1,183,508 699,670 6,578,336 6,648,285 5,254,305 $ 126,765,298 $ 119,628,970 $ 107,115,307 |
Schedule of Property Plant and Equipment by Geographic Region [Table Text Block] | December 31, 2016 December 31, 2015 Canada $ 1,010,427 $ 1,225,236 United States 12,398,961 5,847,666 Germany 41,050 53,774 $ 13,450,438 $ 7,126,676 |
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | December 31, 2016 December 31, 2015 Canada $ 5,850,596 $ - United States 633,798 702,594 Germany 325,090 530,410 $ 6,809,484 $ 1,233,004 |
Schedule of Deferred Tax Asset Net By Geographic Region [Table Text Block] | December 31, 2016 December 31, 2015 Canada $ 5,708,725 $ 7,621,092 $ 5,708,725 $ 7,621,092 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for doubtful accounts exclusding provision for credit notes Balance at beginning of period Charged to (recovered) costs and expenses Write-offs during period Balance at end of period Year ended December 31, 2016 $ 122,095 $ 42,050 $ - $ 164,145 Year ended December 31, 2015 $ 125,766 $ (3,671 ) $ - $ 122,095 |
Note 2 -Significant Accountin41
Note 2 -Significant Accounting Policies (Details Textual) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Number of Operating Segments | 2 |
December 31, 2015 [Member] | Reclassification from Current Portion of Deferred Tax Asset to Long Term Portion of Deferred Tax Asset [Member] | |
Prior Period Reclassification Adjustment | $ 3,243,718 |
Decrease in Net Revenues and Sales and Marketing Expense [Member] | The Year Ended December 31, 2015 [Member] | |
Prior Period Reclassification Adjustment | 1,300,000 |
Decrease in Net Revenues and Sales and Marketing Expense [Member] | The Year Ended December 31, 2014 [Member] | |
Prior Period Reclassification Adjustment | $ 1,200,000 |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies - Summary of Property, Plant and Equipment Depreciation Rates (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Leasehold improvements | Over term of lease |
Assets under construction | N/A |
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 (Year) | 15 years |
Customer Equipment and Installations [Member] | |
Depreciation term (Year) | 3 years |
Note 2 - Significant Accounti43
Note 2 - Significant Accounting Policies - Intangible Asset Useful Life (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Brand [Member] | |
Depreciation term (Year) | 7 years |
Customer Relationships [Member] | Minimum [Member] | |
Depreciation term (Year) | 4 years |
Customer Relationships [Member] | Maximum [Member] | |
Depreciation term (Year) | 7 years |
Network Rights [Member] | |
Depreciation term (Year) | 15 years |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) - USD ($) | Feb. 01, 2017 | Feb. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 3,086,090 | $ 3,036,598 | |||
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 | 357,492 | |||
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 | 3,086,090 | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 49,492 | $ 36,598 | |||
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 | 1.60% | ||||
Ting Virginia LLC [Member] | Subsequent Event [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | ||||
Business Combination, Consideration Transferred | $ 2,000,000 | ||||
Business Combination, Interest Subject To Call Option, Exercised in Period | 20.00% | ||||
Ting Virginia LLC [Member] | Subsequent Event [Member] | Exercisable by the Minority Shareholders [Member] | |||||
Business Combination, Interest Subject to Call Option, Not Exercised in Period | 10.00% | ||||
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 |
Note 3 - Acquisitions - Prelimi
Note 3 - Acquisitions - Preliminary Purchase Consideration (Details) - Ting Virginia LLC [Member] - USD ($) | Feb. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash | $ 3,135,140 | $ 357,492 | ||
Less refund from working capital adjustment | (50,000) | |||
Repayment of debt | 418,775 | |||
Redeemable non-controlling interest | 3,000,000 | |||
$ 6,503,915 |
Note 3 - Acquisitions - Purchas
Note 3 - Acquisitions - Purchase Price Allocation (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 27, 2015 |
Intangible assets, including: | |||
Goodwill | $ 21,005,143 | $ 21,005,143 | |
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 | ||
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] | 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 |
Note 3 - Acquisitions - Purch47
Note 3 - Acquisitions - Purchase Price Allocation (Details) (Parentheticals) | Feb. 27, 2015USD ($) |
Ting Virginia LLC [Member] | |
Cash acquired | $ 21,423 |
Note 4 - Property and Equipme48
Note 4 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment, Fully Depreciated Writedown | $ 0 | $ 400 |
Note 4 - Property and Equipme49
Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment, gross | $ 22,495,631 | $ 14,339,622 |
Accumulated depreciation | 9,045,193 | 7,212,946 |
Property, plant and equipment, net | 13,450,438 | 7,126,676 |
Computer Equipment [Member] | ||
Property, plant and equipment, gross | 8,122,420 | 6,865,906 |
Computer Software [Member] | ||
Property, plant and equipment, gross | 1,277,972 | 1,171,806 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,168,691 | 1,094,455 |
Vehicles and Tools [Member] | ||
Property, plant and equipment, gross | 830,543 | 275,424 |
Fiber Network [Member] | ||
Property, plant and equipment, gross | 7,095,971 | 4,633,942 |
Customer Equipment and Installations [Member] | ||
Property, plant and equipment, gross | 3,889,581 | 242,370 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | $ 110,453 | $ 55,719 |
Note 4 - Property and Equipme50
Note 4 - Property and Equipment - Depreciation of Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation of property and equipment | $ 1,823,683 | $ 1,404,296 | $ 926,102 |
Note 5 - Goodwill and Other I51
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | Apr. 01, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill | $ 21,005,143 | $ 21,005,143 | ||
Finite-lived Intangible Assets Acquired | $ 6,529,654 | 760,000 | ||
Customer Relationships [Member] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||
Finite-lived Intangible Assets Acquired | $ 6,529,654 | 68,000 | ||
Melbourne IT Limited [Member] | ||||
Business Acquisition, Transaction Costs | $ 200,000 | |||
Melbourne IT Limited [Member] | Demand Loan Facility 2012 [Member] | ||||
Proceeds from Issuance of Debt | $ 6,000,000 | |||
Melbourne IT Limited [Member] | Customer Relationships [Member] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||
Finite-lived Intangible Assets Acquired | $ 6,000,000 | |||
Four Smaller Domain Related Acquisitions [Member] | Customer Relationships [Member] | ||||
Finite-lived Intangible Assets Acquired | $ 300,000 | |||
Minimum [Member] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | |||
Maximum [Member] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Domain Name Services [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 42,673 | $ 206,116 | ||
Domain Services Operating Segment [Member] | ||||
Goodwill | $ 18,900,000 | |||
Goodwill Percentage Related to Operating Segments | 90.00% | |||
Network Access Services [Member] | ||||
Goodwill | $ 2,100,000 | |||
Goodwill Percentage Related to Operating Segments | 10.00% |
Note 5 - Goodwill and Other I52
Note 5 - Goodwill and Other Intangible Assets - Acquired Intangible Assets by Major Class (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balances | $ 14,469,677 | $ 14,202,585 | |
Finite-lived Intangible Assets Acquired | 6,529,654 | 760,000 | |
Additions to/(disposals from) domain portfolio, net | (29,691) | (24,066) | $ (26,878) |
Impairment of indefinite life intangible assets | (42,673) | (206,116) | (577,145) |
Amortization expense | (953,174) | (262,726) | (596,620) |
Balances | 19,973,793 | 14,469,677 | 14,202,585 |
Surname Domain Names [Member] | |||
Balances | 11,339,355 | 11,525,624 | |
Finite-lived Intangible Assets Acquired | |||
Additions to/(disposals from) domain portfolio, net | (6,166) | (6,815) | |
Impairment of indefinite life intangible assets | (37,968) | (179,454) | |
Amortization expense | |||
Balances | 11,295,221 | 11,339,355 | 11,525,624 |
Direct Navigation Domain Names [Member] | |||
Balances | 1,897,318 | 1,941,231 | |
Finite-lived Intangible Assets Acquired | |||
Additions to/(disposals from) domain portfolio, net | (23,525) | (17,251) | |
Impairment of indefinite life intangible assets | (4,705) | (26,662) | |
Amortization expense | |||
Balances | 1,869,088 | 1,897,318 | 1,941,231 |
Brand [Member] | |||
Balances | 79,670 | 110,510 | |
Finite-lived Intangible Assets Acquired | |||
Additions to/(disposals from) domain portfolio, net | |||
Impairment of indefinite life intangible assets | |||
Amortization expense | (74,460) | (30,840) | |
Balances | 5,210 | 79,670 | 110,510 |
Customer Relationships [Member] | |||
Balances | 499,854 | 625,220 | |
Finite-lived Intangible Assets Acquired | 6,529,654 | 68,000 | |
Additions to/(disposals from) domain portfolio, net | |||
Impairment of indefinite life intangible assets | |||
Amortization expense | (830,697) | (193,366) | |
Balances | 6,198,811 | 499,854 | 625,220 |
Network Rights [Member] | |||
Balances | 653,480 | ||
Finite-lived Intangible Assets Acquired | 692,000 | ||
Additions to/(disposals from) domain portfolio, net | |||
Impairment of indefinite life intangible assets | |||
Amortization expense | (48,017) | (38,520) | |
Balances | $ 605,463 | $ 653,480 |
Note 5 - Goodwill and Other I53
Note 5 - Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
2,017 | $ 1,181,294 | |
2,018 | 1,128,114 | |
2,019 | 978,936 | |
2,020 | 978,936 | |
2,021 | 978,936 | |
Thereafter | 1,563,268 | |
Total | $ 6,809,484 | $ 1,233,004 |
Note 6 - Fair Value Measureme54
Note 6 - Fair Value Measurement - Summary of the Fair Values of the Company's Derivative Instrument Liabilities (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative instrument asset | $ 172,888 | |
Derivative instrument liability | $ 2,027,086 | |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative instrument asset | ||
Derivative instrument liability | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivative instrument asset | 172,888 | |
Derivative instrument liability | 2,027,086 | |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative instrument asset | ||
Derivative instrument liability |
Note 7 - Derivative Instrumen55
Note 7 - Derivative Instruments and Hedging Activities (Details Textual) - Forward Contracts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative, Notional Amount | $ 26.6 | $ 24 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (0.2) | (0.5) | $ (0.3) |
Designated as Hedging Instrument [Member] | |||
Derivative, Notional Amount | 24 | 20.3 | |
Not Designated as Hedging Instrument [Member] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 0.3 | $ (0.1) | $ (50,000) |
Note 7 - Derivative Instrumen56
Note 7 - Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - Derivative Instruments [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign currency forward contracts | $ 172,888 | |
Foreign currency forward contracts | $ (2,027,086) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Foreign currency forward contracts | 155,560 | |
Foreign currency forward contracts | (1,721,683) | |
Not Designated as Hedging Instrument [Member] | ||
Foreign currency forward contracts | $ 17,328 | |
Foreign currency forward contracts | $ (305,403) |
Note 7 - Derivative Instrumen57
Note 7 - Derivative Instruments and Hedging Activities - Movement in AOCI Balance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI balance | $ (1,721,683) | $ (946,676) | $ (372,593) |
AOCI balance | 612,231 | 324,235 | 127,612 |
AOCI balance | (1,109,452) | (622,441) | (244,981) |
Other comprehensive income (loss) before reclassifications | 871,925 | (3,171,740) | (1,527,171) |
Other comprehensive income (loss) before reclassifications | (304,109) | 1,140,275 | 523,056 |
Other comprehensive income (loss) before reclassifications | 567,816 | (2,031,465) | (1,004,115) |
Amount reclassified from accumulated other comprehensive income | 1,005,318 | 2,396,733 | 953,088 |
Amount reclassified from accumulated other comprehensive income | (364,528) | (852,279) | (326,433) |
Amount reclassified from accumulated other comprehensive income | 640,790 | 1,544,454 | 626,655 |
Other comprehensive income (loss) | 1,877,243 | (775,007) | (574,083) |
Other comprehensive income (loss) | (668,637) | 287,996 | 196,623 |
Other comprehensive income (loss) | 1,208,606 | (487,011) | (377,460) |
AOCI balance | 155,560 | (1,721,683) | (946,676) |
AOCI balance | (56,406) | 612,231 | 324,235 |
AOCI balance | $ 99,154 | $ (1,109,452) | $ (622,441) |
Note 7 - Derivative Instrumen58
Note 7 - Derivative Instruments and Hedging Activities - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 1,208,606 | $ (487,011) | $ (377,460) |
Operating Expense [Member] | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (736,616) | (1,870,818) | (704,427) |
Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness), net of tax | (47,242) | (294,113) | (20,535) |
Cost of Sales [Member] | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (221,460) | $ (525,916) | $ (248,662) |
Note 8 - Loan Payable (Details
Note 8 - Loan Payable (Details Textual) | Dec. 31, 2016USD ($) | Aug. 18, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 01, 2018 | Oct. 01, 2017 | Apr. 01, 2017 |
Amortization of Debt Issuance Costs | $ 31,166 | $ 0 | |||||
Line of Credit Facility Covenant Period | 1 year 180 days | ||||||
Foreign Exchange Risk [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500,000 | $ 3,500,000 | |||||
Derivative Asset, Fair Value, Gross Asset | $ 26,600,000 | $ 26,600,000 | |||||
Bank of Montreal and Royal Bank of Canada [Member] | |||||||
Debt Instrument, Term | 5 years | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 | ||||||
Maximum Total Funded Debt to EBITDA Ratio | 2.25 | 2 | 2.25 | ||||
Repayment Obligation, Percentage of Excess Cash Flow | 50.00% | ||||||
Debt Issuance Costs, Gross | $ 500,000 | ||||||
Minimum Fixed Charge Coverage Ratio | 1.2 | 1.2 | |||||
Maximum Annual Capital Expenditures Requirement | $ 22,000,000 | ||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | $ 20,000,000 | ||||||
Maximum Ratio of Funded Share Repurchases to 12 Months Trailing EDITDA | 1.5 | 1.5 | |||||
Bank of Montreal and Royal Bank of Canada [Member] | Scenario, Forecast [Member] | |||||||
Maximum Total Funded Debt to EBITDA Ratio | 2.25 | 2.5 | 2 | ||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Less Than 1 [Member] | |||||||
Maximum Threshold, Total Funded Debt to EBITDA Ratio | 1 | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Less Than 1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Less Than 1 [Member] | Base Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | |||||||
Maximum Threshold, Total Funded Debt to EBITDA Ratio | 2 | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | ||||||
Minimum Threshold, Total Funded Debt to EBITDA Ratio | 1 | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | Base Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 2 [Member] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.55% | ||||||
Minimum Threshold, Total Funded Debt to EBITDA Ratio | 2 | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 2 [Member] | Base Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Total Loans Do Not Exceed 1.5 Times of Trailing 12 Months EBITDA [Member] | |||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | $ 40,000,000 | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Accordion Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Revolving Credit Facility A [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ||||||
Long-term Line of Credit | $ 0 | 0 | 0 | ||||
Bank of Montreal and Royal Bank of Canada [Member] | Revolving Reducing Term Facility B [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000,000 | ||||||
Long-term Line of Credit | 6,000,000 | 6,000,000 | 0 | ||||
Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility C [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 40,000,000 | ||||||
Long-term Line of Credit | $ 4,700,000 | $ 4,700,000 | $ 0 | ||||
Period of Written Notice to Increase Credit Facility | 60 days | ||||||
Line of Credit Facility, Increase in Maximum Borrowing Capacity | $ 15,000,000 | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Credit Facility B and C [Member] | Draws for Share Repurchases [Member] | |||||||
Debt Instrument, Term | 4 years | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Credit Facility B and C [Member] | Draws for Acquisitions [Member] | |||||||
Debt Instrument, Term | 5 years | ||||||
Bank of Montreal and Royal Bank of Canada [Member] | Credit Facility B and C [Member] | Draws for FFTH Capital Expenditures [Member] | |||||||
Debt Instrument, Term | 7 years |
Note 8 - Loan Payable - Schedul
Note 8 - Loan Payable - Schedule of Loans Payable (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Loans payable | $ 10,248,808 | $ 3,500,000 |
Less: unamortized debt discount and issuance costs | 482,498 | |
Less: loan payable, current portion | 2,233,110 | 3,500,000 |
Loan payable, long-term portion | 8,015,698 | |
Demand Loan Facility 2012 [Member] | ||
Loans payable | 3,500,000 | |
Revolving Reducing Term Facility B [Member] | ||
Loans payable | 6,000,000 | |
Non-revolving Facility C [Member] | ||
Loans payable | $ 4,731,306 |
Note 8 - Loan Payable - Princip
Note 8 - Loan Payable - Principal Repayments (Details) | Dec. 31, 2016USD ($) |
2,017 | $ 2,233,110 |
2,018 | 2,233,110 |
2,019 | 2,233,110 |
2,020 | 2,046,261 |
2,021 | 1,485,714 |
Thereafter | 500,000 |
$ 10,731,305 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ||
Unrecognized Tax Benefits | $ 117,000 | $ 117,000 | $ 117,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 |
Note 9 - Income Taxes - Provisi
Note 9 - Income Taxes - Provision for Income Taxes Differs from the Amount Computed by Applying the Statutory Federal Income Tax Rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income for the year before provision for income taxes | $ (25,112,924) | $ (17,942,957) | $ (9,428,325) |
Computed expected tax expense | 8,538,245 | 6,100,605 | 3,205,631 |
State income taxes | 530,803 | 265,489 | 64,056 |
Permanent differences, including foreign exchange | 290,327 | 278,959 | 192,260 |
Other, including alternative minimum tax and adjustments to opening deferred tax assets | 313,605 | 75,826 | 407,718 |
Provision for income taxes | $ 9,045,770 | $ 6,569,227 | $ 3,054,229 |
Note 9 - Income Taxes - Tax Eff
Note 9 - Income Taxes - Tax Effects of Temporary Differences That Give Rise to Significant Portions of the Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Deferred revenue | $ 5,482,080 | $ 5,454,284 |
Foreign tax credit | 1,275,937 | 1,529,075 |
Amortization | (2,184,944) | (883,466) |
Accruals, including foreign exchange and other | 1,135,652 | 1,521,199 |
Deferred tax assets | 5,708,725 | 7,621,092 |
Deferred tax liabilities: | ||
Limited life intangible assets | (120,232) | (169,731) |
Indefinite life intangible assets | (4,706,960) | (4,706,960) |
Total deferred tax liability, long-term portion | $ (4,827,192) | $ (4,876,691) |
Note 9 - Income Taxes - Unrecog
Note 9 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 117,000 | $ 117,000 |
Change in uncertain tax benefits | ||
Balance | $ 117,000 | $ 117,000 |
Note 10 - Common Shares (Detail
Note 10 - Common Shares (Details Textual) - USD ($) | Jan. 07, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 09, 2016 | Feb. 11, 2015 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | ||||
Common Stock, Shares, Outstanding | 11,135,825 | 10,685,599 | 10,461,574 | 10,685,599 | 10,685,599 | |||
Stock Repurchased and Retired During Period, Shares | 308,416 | 1,062,456 | 79,392 | |||||
Stock Repurchased and Retired During Period, Value | $ 7,180,257 | $ 23,616,286 | $ 1,181,857 | |||||
Common Stock, Shares, Issued | 11,135,825 | 10,685,599 | 10,461,574 | 10,685,599 | 10,685,599 | |||
Stock Buyback Program 2016 [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000,000 | |||||||
Stock Repurchased and Retired During Period, Shares | 308,416 | |||||||
Stock Repurchased and Retired During Period, Value | $ 7,200,000 | |||||||
Stock Buyback Program 2015 [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 20,000,000 | |||||||
Stock Repurchased and Retired During Period, Shares | 231,047 | 868,549 | ||||||
Stock Repurchased and Retired During Period, Value | $ 5,400,000 | $ 20,000,000 | ||||||
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 | $ 100,000 |
Note 10 - Common Share - Share
Note 10 - Common Share - Share Repurchases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Repurchased and Retired During Period, Shares | 308,416 | 1,062,456 | 79,392 |
Stock Repurchased and Retired During Period, Value | $ 7,180,257 | $ 23,616,286 | $ 1,181,857 |
Average price per share (in dollars per share) | $ 23.28 | $ 22.23 | $ 14.89 |
Number of shares (in shares) | 25,572 | 99,675 | |
Aggregate market value of shares (in thousands) | $ 634,000 | $ 2,335,000 | |
Average price per share (in dollars per share) | $ 24.80 | $ 23.42 |
Note 11 - Stock Option Plans (D
Note 11 - Stock Option Plans (Details Textual) - USD ($) | Oct. 08, 2010 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 1996 | Dec. 31, 2016 | Nov. 22, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 2,400,000 | $ 9,600,000 | $ 5,500,000 | |||||
Proceeds from Stock Options Exercised | 146,390 | 803,136 | 1,478,924 | |||||
Allocated Share-based Compensation Expense | $ 799,434 | $ 526,025 | $ 542,738 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 81,750 | 67,500 | 102,475 | |||||
Employee Stock Option [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,200,000 | $ 1,200,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 328 days | |||||||
The 1996 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,787,500 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||||
The 1996 Plan [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Equity Compensation Plan 2006 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,725,000 | 2,475,000 | 1,250,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 475,000 | 750,000 | ||||||
Equity Compensation Plan 2006 [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||
Equity Compensation Plan 2006 [Member] | Automatic Formula Grants of Nonqualified Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years |
Note 11 - Stock Option Plans -
Note 11 - Stock Option Plans - Fair Value of Stock Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Volatility | 66.10% | 44.10% | 56.10% |
Risk-free interest rate | 1.30% | 1.30% | 1.30% |
Expected life (in years) (Year) | 4 years 109 days | 4 years | 4 years |
The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant (in dollars per share) | $ 11.18 | $ 7.40 | $ 7.02 |
Note 11 - Stock Option Plans 70
Note 11 - Stock Option Plans - Stock Option Transactions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Outstanding, Number of shares (in shares) | 513,366 | 976,062 | 1,407,639 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 9.24 | $ 5.41 | $ 3.80 |
Granted, Number of shares (in shares) | 81,750 | 67,500 | 102,475 |
Granted, Weighted average exercise price per share (in dollars per share) | $ 22.66 | $ 21.26 | $ 15.78 |
Exercised, Number of shares (in shares) | (109,963) | (517,998) | (502,061) |
Exercised, Weighted average exercise price per share (in dollars per share) | $ 3.79 | $ 3.53 | $ 2.95 |
Forfeited, Number of shares (in shares) | (9,902) | (10,323) | (28,366) |
Forfeited, Weighted average exercise price per share (in dollars per share) | $ 16.80 | $ 13.30 | $ 6.60 |
Expired, Number of shares (in shares) | (750) | (1,875) | (3,625) |
Expired, Weighted average exercise price per share (in dollars per share) | $ 3.76 | $ 2.40 | $ 3.36 |
Outstanding, Number of shares (in shares) | 474,501 | 513,366 | 976,062 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 12.67 | $ 9.24 | $ 5.41 |
Options exercisable, Number of shares (in shares) | 332,192 | 321,155 | 725,392 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 10.08 | $ 6.49 | $ 4.03 |
Note 11 - Stock Option Plans 71
Note 11 - Stock Option Plans - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number outstanding (in shares) | shares | 474,501 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 12.67 |
Weighted average remaining contractual life (years), options outstanding (Year) | 3 years 182 days |
Aggregate intrinsic value, options outstanding | $ | $ 10,716,502 |
Number exercisable (in shares) | shares | 332,192 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 10.08 |
Weighted average remaining contractual life (years), options exercisable (Year) | 2 years 328 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 8,359,847 |
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 | 51,771 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 2.95 |
Weighted average remaining contractual life (years), options outstanding (Year) | 1 year 73 days |
Aggregate intrinsic value, options outstanding | $ | $ 1,671,976 |
Number exercisable (in shares) | shares | 51,771 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 2.95 |
Weighted average remaining contractual life (years), options exercisable (Year) | 1 year 73 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 1,671,976 |
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 | 171,705 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 6.64 |
Weighted average remaining contractual life (years), options outstanding (Year) | 2 years 146 days |
Aggregate intrinsic value, options outstanding | $ | $ 4,912,868 |
Number exercisable (in shares) | shares | 157,723 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 6.47 |
Weighted average remaining contractual life (years), options exercisable (Year) | 2 years 109 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 4,539,689 |
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 (Year) | 3 years 255 days |
Aggregate intrinsic value, options outstanding | $ | $ 717,287 |
Number exercisable (in shares) | shares | 19,998 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 11.15 |
Weighted average remaining contractual life (years), options exercisable (Year) | 3 years 219 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 482,018 |
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 | 131,150 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 17.37 |
Weighted average remaining contractual life (years), options outstanding (Year) | 4 years 219 days |
Aggregate intrinsic value, options outstanding | $ | $ 2,344,893 |
Number exercisable (in shares) | shares | 72,700 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 17.18 |
Weighted average remaining contractual life (years), options exercisable (Year) | 4 years 109 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 1,314,039 |
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 (Year) | 5 years 146 days |
Aggregate intrinsic value, options outstanding | $ | $ 924,728 |
Number exercisable (in shares) | shares | 30,000 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 23.51 |
Weighted average remaining contractual life (years), options exercisable (Year) | 4 years 182 days |
Aggregate intrinsic value, options exercisable (in Dollars) | $ | $ 352,125 |
Exercise Price Range 06 [Member] | |
Exercise price - lower (in dollars per share) | $ 24.96 |
Exercise price - higher (in dollars per share) | $ 27.53 |
Number outstanding (in shares) | shares | 18,750 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 27.53 |
Weighted average remaining contractual life (years), options outstanding (Year) | 4 years 255 days |
Aggregate intrinsic value, options outstanding | $ | $ 144,750 |
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 (Year) | |
Aggregate intrinsic value, options exercisable (in Dollars) | $ |
Note 11 - Stock Option Plans 72
Note 11 - Stock Option Plans - Stock-based Compensation Allocation to Operating Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allocated share based compensation expense | $ 799,434 | $ 526,025 | $ 542,738 |
Network Expenses [Member] | |||
Allocated share based compensation expense | 21,704 | 28,915 | 30,938 |
Sales and Marketing Expense [Member] | |||
Allocated share based compensation expense | 236,063 | 188,035 | 143,514 |
Technical Operations and Development [Member] | |||
Allocated share based compensation expense | 98,059 | 111,239 | 85,904 |
General and Administrative Expense [Member] | |||
Allocated share based compensation expense | $ 443,608 | $ 197,836 | $ 282,382 |
Note 12 - Foreign Exchange (Det
Note 12 - Foreign Exchange (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
General and Administrative Expense [Member] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (0.1) | $ (0.3) | $ (0.3) |
Note 13 - Other Income, Net (De
Note 13 - Other Income, Net (Details Textual) - Joint Marketing Agreement [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonrecurring Gain | $ 1.5 | $ 0.5 | $ 0.1 |
Other Non-recurring Gain, Term of Recognition | 3 years |
Note 14 - Earnings Per Common75
Note 14 - Earnings Per Common Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 76,750 | 75,050 | 95,762 |
Note 14 - Earnings Per Common76
Note 14 - Earnings Per Common Share - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator for basic and diluted earnings per common share: | |||
Net income for the year | $ 16,067,154 | $ 11,373,730 | $ 6,374,096 |
Basic weighted average number of common shares outstanding (in shares) | 10,524,856 | 10,968,500 | 11,220,874 |
Effect of stock options (in shares) | 188,739 | 391,584 | 509,524 |
Diluted weighted average number of shares outstanding (in shares) | 10,713,595 | 11,360,084 | 11,730,398 |
Basic earnings per common share (in dollars per share) | $ 1.53 | $ 1.04 | $ 0.57 |
Diluted earnings per common share (in dollars per share) | $ 1.50 | $ 1 | $ 0.54 |
Note 15 - Commitments and Con77
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 09, 2015 | |
Contractual Obligation, Term | 10 years | |||
Operating Leases, Rent Expense | $ 1,200,000 | $ 1,000,000 | $ 900,000 | |
Long-term Debt | 10,731,305 | |||
City of Westminster, Maryland [Member] | Loan to Finance WFN Construction [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 21,000,000 | |||
Debt Instrument, Term of Interest Only Payments | 5 years | |||
Debt Instrument, Term | 30 years | |||
Long-term Debt | $ 1,700,000 | |||
Guarantee Obligations [Member] | Lease and Network Operations Agreement [Member] | Ting Fiber Inc. [Member] | ||||
Loss Contingency, Debt Service Guarantee, Revenue Shortfall Difference, Lower Threshold | $ 50,000 | |||
Loss Contingency, Debt Service Guarantee, Revenue Shortfall Difference, Upper Threshold | $ 150,000 |
Note 15 - Commitments and Con78
Note 15 - Commitments and Contingencies - Summary of General Office Facilities and Equipment (Details) | Dec. 31, 2016USD ($) |
Contractual lease obligations, 2017 | $ 1,113,000 |
Purchase obligations, 2017 | 18,051,000 |
Total obligations, 2017 | 19,164,000 |
Contractual lease obligations, 2018 | 1,059,000 |
Purchase obligations, 2018 | 19,471,000 |
Total obligations, 2018 | 20,530,000 |
Contractual lease obligations, 2019 | 1,022,000 |
Purchase obligations, 2019 | 83,000 |
Total obligations, 2019 | 1,105,000 |
Contractual lease obligations, 2020 | 964,000 |
Purchase obligations, 2020 | 18,000 |
Total obligations, 2020 | 982,000 |
Contractual lease obligations, 2021 | 303,000 |
Purchase obligations, 2021 | 8,000 |
Total obligations, 2021 | 311,000 |
Contractual lease obligations, thereafter | 1,138,000 |
Purchase obligations, thereafter | 43,000 |
Total obligations, thereafter | 1,181,000 |
Contractual lease obligations, total | 5,599,000 |
Purchase obligations, total | 37,674,000 |
Total obligations | $ 43,273,000 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) | Feb. 01, 2017USD ($) | Jan. 20, 2017USD ($) | Aug. 18, 2016USD ($) | Feb. 27, 2015USD ($) | Jan. 20, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 01, 2018 | Oct. 01, 2017 | Apr. 01, 2017 | Mar. 01, 2017USD ($) | Jan. 19, 2017USD ($) |
Bank of Montreal and Royal Bank of Canada [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000,000 | ||||||||||||
Maximum Total Funded Debt to EBITDA Ratio | 2 | 2.25 | |||||||||||
Minimum Fixed Charge Coverage Ratio | 1.2 | ||||||||||||
Maximum Annual Capital Expenditures Requirement | $ 22,000,000 | ||||||||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | $ 20,000,000 | ||||||||||||
Maximum Ratio of Funded Share Repurchases to 12 Months Trailing EDITDA | 1.5 | ||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Total Loans Do Not Exceed 1.5 Times of Trailing 12 Months EBITDA [Member] | |||||||||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | $ 40,000,000 | ||||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility C [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | ||||||||||||
Long-term Line of Credit | 4,700,000 | $ 0 | |||||||||||
Subsequent Event [Member] | |||||||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000,000 | ||||||||||||
Subsequent Event [Member] | Bank of Montreal and Royal Bank of Canada [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140,000,000 | ||||||||||||
Maximum Total Funded Debt to EBITDA Ratio | 3 | ||||||||||||
Minimum Fixed Charge Coverage Ratio | 1.2 | ||||||||||||
Maximum Annual Capital Expenditures Requirement | $ 32,800,000 | ||||||||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | $ 20,000,000 | ||||||||||||
Maximum Ratio of Funded Share Repurchases to 12 Months Trailing EDITDA | 1.5 | ||||||||||||
Subsequent Event [Member] | Bank of Montreal and Royal Bank of Canada [Member] | Total Loans Do Not Exceed 1.5 Times of Trailing 12 Months EBITDA [Member] | |||||||||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | $ 40,000,000 | ||||||||||||
Subsequent Event [Member] | Bank of Montreal and Royal Bank of Canada [Member] | Debt to EBITDA is Greater Than or Equal to 2 [Member] | |||||||||||||
Maximum Threshold, Total Funded Debt to EBITDA Ratio | 2.25 | ||||||||||||
Subsequent Event [Member] | Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility C [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000,000 | $ 40,000,000 | |||||||||||
Subsequent Event [Member] | Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 85,000,000 | ||||||||||||
Long-term Line of Credit | $ 84,500,000 | ||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Scenario, Forecast [Member] | Bank of Montreal and Royal Bank of Canada [Member] | |||||||||||||
Maximum Total Funded Debt to EBITDA Ratio | 2.25 | 2.5 | 2 | ||||||||||
eNom Incorporated [Member] | Subsequent Event [Member] | |||||||||||||
Business Combination, Consideration Transferred | $ 76,680,000 | ||||||||||||
eNom Incorporated [Member] | Scenario, Forecast [Member] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 83,500,000 | ||||||||||||
Business Combination, Consideration Transferred, Estimated Price Adjusments | $ 6,800,000 | ||||||||||||
Ting Virginia LLC [Member] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 3,135,140 | $ 357,492 | |||||||||||
Business Combination, Consideration Transferred | $ 3,500,000 | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | ||||||||||||
Ting Virginia LLC [Member] | Subsequent Event [Member] | |||||||||||||
Business Combination, Consideration Transferred | $ 2,000,000 | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | ||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% |
Note 16 - Subsequent Events - P
Note 16 - Subsequent Events - Preliminary Purchase Consideration (Details) - USD ($) | Jan. 20, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total goodwill | $ 21,005,143 | $ 21,005,143 | |
eNom Incorporated [Member] | Subsequent Event [Member] | |||
Total purchase price | $ 76,680,000 | ||
Accounts receivable, net | 6,000,000 | ||
Other current assets | 3,580,000 | ||
Deferred registration costs | 80,000,000 | ||
Property and equipment, net | 4,500,000 | ||
Intangible assets, net | 44,300,000 | ||
Total identifiable assets | 138,380,000 | ||
Accounts payable and accrued liabilities | (9,700,000) | ||
Customer deposits | (6,700,000) | ||
Deferred revenue | (88,066,000) | ||
Total liabilities assumed | (104,466,000) | ||
Total net assets (liabilities) assumed | 33,914,000 | ||
Total goodwill | $ 42,766,000 |
Note 17 - Segment Reporting (De
Note 17 - Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Number of Operating Segments | 2 |
Note 17 - Segment Reporting - I
Note 17 - Segment Reporting - Information by Reportable Segments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Revenues | $ 189,818,932 | $ 171,686,779 | $ 146,508,710 |
Cost of revenues | 120,186,962 | 112,980,685 | 101,861,002 |
Network expenses | 5,210,500 | 5,464,777 | 4,554,635 |
Depreciation of property and equipment (note 4) | 1,319,819 | 1,144,988 | 699,670 |
Amortization of intangible assets (note 5) | 48,017 | 38,520 | |
Total cost of revenues | 126,765,298 | 119,628,970 | 107,115,307 |
Gross Profit | 63,053,634 | 52,057,809 | 39,393,403 |
Sales and marketing | 20,754,752 | 17,394,376 | 14,235,668 |
Technical operations and development | 4,494,819 | 4,502,845 | 4,305,715 |
General and administrative | 11,404,793 | 10,661,949 | 9,459,008 |
Depreciation of property and equipment (note 4) | 503,864 | 259,307 | 226,432 |
Amortization of intangible assets | 905,157 | 224,206 | 596,620 |
Impairment of indefinite life intangible assets | 42,673 | 206,116 | 577,145 |
Loss on currency forward contracts | (98,977) | 792,900 | 357,760 |
Income from operations | 25,046,553 | 18,016,110 | 9,635,055 |
Total other income (expense) | 66,371 | (73,153) | (206,730) |
Income before provision for income taxes | 25,112,924 | 17,942,957 | 9,428,325 |
Other income (expenses), net | 66,371 | (73,153) | (206,730) |
Income before provision for income taxes | 25,112,924 | 17,942,957 | 9,428,325 |
Network Access Services [Member] | |||
Net Revenues | 73,778,951 | 60,974,265 | 34,783,563 |
Cost of revenues | 37,939,683 | 34,133,569 | 21,870,780 |
Network expenses | 1,398,899 | 698,960 | |
Depreciation of property and equipment (note 4) | 977,395 | 447,644 | |
Amortization of intangible assets (note 5) | 48,017 | 38,520 | |
Total cost of revenues | 40,363,994 | 35,318,693 | 21,870,780 |
Gross Profit | 33,414,957 | 25,655,572 | 12,912,783 |
Domain Name Services [Member] | |||
Net Revenues | 116,039,981 | 110,712,514 | 111,725,147 |
Cost of revenues | 82,247,279 | 78,847,116 | 79,990,222 |
Network expenses | 3,811,601 | 4,765,817 | 4,554,635 |
Depreciation of property and equipment (note 4) | 342,424 | 697,344 | 699,670 |
Amortization of intangible assets (note 5) | |||
Total cost of revenues | 86,401,304 | 84,310,277 | 85,244,527 |
Gross Profit | $ 29,638,677 | $ 26,402,237 | $ 26,480,620 |
Note 17 - Segment Reporting - S
Note 17 - Segment Reporting - Summary of Revenue Earned from Each Significant Revenue Stream (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating revenues | $ 189,818,932 | $ 171,686,779 | $ 146,508,710 |
Cost of revenues | 120,186,962 | 112,980,685 | 101,861,002 |
Network expenses | 5,210,500 | 5,464,777 | 4,554,635 |
Amortization of intangible assets (note 5) | 48,017 | 38,520 | |
Total cost of revenues | 126,765,298 | 119,628,970 | 107,115,307 |
Network Expenses [Member] | |||
Network expenses | 5,210,500 | 5,464,777 | 4,554,635 |
Amortization of intangible assets (note 5) | 1,367,836 | 1,183,508 | 699,670 |
Network Expenses | 6,578,336 | 6,648,285 | 5,254,305 |
Network Access Services [Member] | |||
Operating revenues | 73,778,951 | 60,974,265 | 34,783,563 |
Cost of revenues | 37,939,683 | 34,133,569 | 21,870,780 |
Network expenses | 1,398,899 | 698,960 | |
Amortization of intangible assets (note 5) | 48,017 | 38,520 | |
Total cost of revenues | 40,363,994 | 35,318,693 | 21,870,780 |
Network Access Services [Member] | Mobile Services [Member] | |||
Cost of revenues | 35,914,882 | 32,615,416 | 21,870,780 |
Network Access Services [Member] | Other Services [Member] | |||
Cost of revenues | 2,024,801 | 1,518,153 | |
Network Access Services [Member] | Mobile Services [Member] | |||
Operating revenues | 70,127,294 | 57,685,554 | 34,783,563 |
Network Access Services [Member] | Other Services [Member] | |||
Operating revenues | 3,651,657 | 3,288,711 | |
Domain Name Services [Member] | |||
Operating revenues | 116,039,981 | 110,712,514 | 111,725,147 |
Cost of revenues | 82,247,279 | 78,847,116 | 79,990,222 |
Network expenses | 3,811,601 | 4,765,817 | 4,554,635 |
Amortization of intangible assets (note 5) | |||
Total cost of revenues | 86,401,304 | 84,310,277 | 85,244,527 |
Domain Name Services [Member] | Wholesale [Member] | |||
Operating revenues | 98,179,267 | 94,233,497 | 96,240,728 |
Cost of revenues | 74,865,895 | 72,656,608 | 74,564,146 |
Domain Name Services [Member] | Wholesale [Member] | Domain Services [Member] | |||
Operating revenues | 89,009,546 | 84,934,519 | 86,585,994 |
Cost of revenues | 72,947,730 | 70,633,267 | 72,353,061 |
Domain Name Services [Member] | Wholesale [Member] | Value Added Services [Member] | |||
Operating revenues | 9,169,721 | 9,298,978 | 9,654,734 |
Cost of revenues | 1,918,165 | 2,023,341 | 2,211,085 |
Domain Name Services [Member] | Retail Services [Member] | |||
Operating revenues | 14,629,949 | 12,637,498 | 10,417,746 |
Cost of revenues | 6,765,237 | 5,494,550 | 4,539,439 |
Domain Name Services [Member] | Portfolio [Member] | |||
Operating revenues | 3,230,765 | 3,841,519 | 5,066,673 |
Cost of revenues | $ 616,147 | $ 695,958 | $ 886,637 |
Note 17 - Segment Reporting -84
Note 17 - Segment Reporting - Summary of Property and Equipment by Geographic Region (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment | $ 13,450,438 | $ 7,126,676 |
CANADA | ||
Property, plant and equipment | 1,010,427 | 1,225,236 |
UNITED STATES | ||
Property, plant and equipment | 12,398,961 | 5,847,666 |
GERMANY | ||
Property, plant and equipment | $ 41,050 | $ 53,774 |
Note 17 - Segment Reporting -85
Note 17 - Segment Reporting - Summary of Amortizable Intangible Assets by Geographic Region (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Amortizable intangible assets | $ 6,809,484 | $ 1,233,004 |
CANADA | ||
Amortizable intangible assets | 5,850,596 | |
UNITED STATES | ||
Amortizable intangible assets | 633,798 | 702,594 |
GERMANY | ||
Amortizable intangible assets | $ 325,090 | $ 530,410 |
Note 17 - Segment Reporting -86
Note 17 - Segment Reporting - Summary of Deferred Tax Asset, Net of Valuation Allowance (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | $ 5,708,725 | $ 7,621,092 |
CANADA | ||
Deferred tax assets | $ 5,708,725 | $ 7,621,092 |
Note 17 - Segment Reporting -87
Note 17 - Segment Reporting - Summary of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at beginning of period | $ 122,095 | $ 125,766 |
Charged to (recovered) costs and expenses | 42,050 | (3,671) |
Balance at end of period | $ 164,145 | $ 122,095 |