Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 02, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | TUCOWS INC /PA/ | ||
Entity Central Index Key | 909,494 | ||
Trading Symbol | tcx | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 10,589,221 | ||
Entity Public Float | $ 564.6 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 18,049,164 | $ 15,105,075 |
Accounts receivable, net of allowance for doubtful accounts of $168,409 as of December 31, 2017 and $164,145 as of December 31, 2016 | 12,376,104 | 10,925,622 |
Inventory | 2,944,246 | 1,210,789 |
Prepaid expenses and deposits | 14,185,586 | 6,250,555 |
Derivative instrument asset, current portion (note 6) | 172,888 | |
Prepaid domain name registry and ancillary services fees, current portion | 103,302,472 | 49,396,737 |
Income taxes recoverable | 3,003,873 | 220,451 |
Total current assets | 153,861,445 | 83,282,117 |
Prepaid domain name registry and ancillary services fees, long-term portion | 23,700,931 | 10,993,156 |
Property and equipment (note 4) | 24,620,298 | 13,450,438 |
Deferred tax asset (note 9) | 5,708,725 | |
Intangible assets (note 5) | 58,414,178 | 19,973,793 |
Goodwill (note 5) | 90,053,483 | 21,005,143 |
Total assets | 350,650,335 | 154,413,372 |
Current liabilities: | ||
Accounts payable | 7,026,282 | 4,786,645 |
Accrued liabilities | 6,412,578 | 7,098,905 |
Customer deposits | 15,255,305 | 5,418,622 |
Deferred rent, current portion | 20,991 | 20,854 |
Loan payable, current portion (note 8) | 18,289,853 | 2,233,110 |
Deferred revenue, current portion | 129,154,622 | 62,795,079 |
Accreditation fees payable, current portion | 1,174,733 | 528,027 |
Income taxes payable | 1,226,157 | 1,548,121 |
Total current liabilities | 178,560,521 | 84,429,363 |
Deferred revenue, long-term portion | 31,426,906 | 15,053,977 |
Accreditation fees payable, long-term portion | 288,755 | 115,084 |
Deferred rent, long-term portion | 129,777 | 124,202 |
Loan payable, long-term portion (note 8) | 58,634,174 | 8,015,698 |
Deferred gain | 429,400 | 944,680 |
Deferred tax liability (note 9) | 19,833,678 | 4,827,192 |
Redeemable non-controlling interest (note 3 (a)) | 1,136,390 | 3,086,090 |
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; 10,583,879 shares issued and outstanding as of December 31, 2017 and 10,461,574 shares issued and outstanding as of December 31, 2016 | 15,368,161 | 14,460,500 |
Additional paid-in capital | 2,166,768 | 2,857,921 |
Retained earnings | 42,675,805 | 20,399,511 |
Accumulated other comprehensive income | 99,154 | |
Total stockholders' equity | 60,210,734 | 37,817,086 |
Total liabilities and stockholders' equity | 350,650,335 | 154,413,372 |
Commitments and contingencies (note 15) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance for doubtful accounts | $ 168,409 | $ 164,145 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
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 |
Common 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) | 10,583,879 | 10,461,574 |
Common stock, shares outstanding (in shares) | 10,583,879 | 10,461,574 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues (note 16) | $ 329,420,741 | $ 189,818,932 | $ 171,686,779 |
Cost of revenues (note 16) | |||
Cost of revenues | 230,599,632 | 120,186,962 | 112,980,685 |
Network expenses | 9,324,454 | 5,210,500 | 5,464,777 |
Depreciation of property and equipment | 3,142,398 | 1,319,819 | 1,144,988 |
Amortization of intangible assets (note 5) | 1,833,628 | 48,017 | 38,520 |
Total cost of revenues | 244,900,112 | 126,765,298 | 119,628,970 |
Gross profit | 84,520,629 | 63,053,634 | 52,057,809 |
Expenses: | |||
Sales and marketing | 29,422,984 | 20,754,752 | 17,394,376 |
Technical operations and development | 7,257,720 | 4,494,819 | 4,502,845 |
General and administrative | 13,593,901 | 11,404,793 | 10,661,949 |
Depreciation of property and equipment | 585,424 | 503,864 | 259,307 |
Amortization of intangible assets (note 5) | 6,566,308 | 905,157 | 224,206 |
Impairment of indefinite life intangible assets (note 5) | 111,251 | 42,673 | 206,116 |
Loss (gain) on currency forward contracts (note 7) | (98,227) | (98,977) | 792,900 |
Total expenses | 57,439,361 | 38,007,081 | 34,041,699 |
Income from operations | 27,081,268 | 25,046,553 | 18,016,110 |
Other income (expense): | |||
Interest expense, net | (3,567,156) | (449,838) | (159,025) |
Other income, net (note 13) | 560,656 | 516,209 | 85,872 |
Total other income (expense) | (3,006,500) | 66,371 | (73,153) |
Income before provision for income taxes | 24,074,768 | 25,112,924 | 17,942,957 |
Provision for income taxes (note 9) | 1,748,174 | 9,045,770 | 6,569,227 |
Net income before redeemable non-controlling interest | 22,326,594 | 16,067,154 | 11,373,730 |
Redeemable non-controlling interest | (386,995) | (871,493) | (284,509) |
Net income attributable to redeemable non-controlling interest | 386,995 | 871,493 | 284,509 |
Net income for the period | 22,326,594 | 16,067,154 | 11,373,730 |
Other comprehensive income (loss), net of tax | |||
Unrealized income (loss) on hedging activities (note 7) | 550,347 | 567,816 | (2,031,465) |
Net amount reclassified to earnings (note 7) | (649,501) | 640,790 | 1,544,454 |
Other comprehensive income (loss) net of tax of $56,406 and $668,637 for the year ended December 31, 2017 and December 31, 2016 (note 7) | (99,154) | 1,208,606 | (487,011) |
Comprehensive income for the period | $ 22,227,440 | $ 17,275,760 | $ 10,886,719 |
Basic earnings per common share (note 14) (in dollars per share) | $ 2.12 | $ 1.53 | $ 1.04 |
Shares used in computing basic earnings per common share (note 14) (in shares) | 10,537,356 | 10,524,856 | 10,968,500 |
Diluted earnings per common share (note 14) (in dollars per share) | $ 2.07 | $ 1.50 | $ 1 |
Shares used in computing diluted earnings per common share (note 14) (in shares) | 10,793,622 | 10,713,595 | 11,360,084 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income (loss), tax | $ 56,406 | $ 668,637 | $ 287,996 |
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) 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 |
Exercise of stock options (in shares) | 517,998 | 517,998 | |||
Exercise of stock options | $ 1,784,112 | (980,976) | $ 803,136 | ||
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) | |||
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 | 11,373,730 | 11,373,730 | |||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. (note 3) | (36,598) | (36,598) | |||
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 |
Exercise of stock options (in shares) | 109,963 | 109,963 | |||
Exercise of stock options | $ 350,506 | (204,116) | $ 146,390 | ||
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) | |||
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 | 16,067,154 | 16,067,154 | |||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. (note 3) | (49,492) | (49,492) | |||
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 |
Exercise of stock options (in shares) | 172,759 | 172,759 | |||
Exercise of stock options | $ 907,661 | (686,074) | $ 221,587 | ||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | (50,454) | (50,454) | |||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (1,461,651) | $ (1,461,651) | |||
Repurchase and retirement of shares (note 10) (in shares) | |||||
Repurchase and retirement of shares (note 10) | |||||
Stock-based compensation (note 11) | 1,456,572 | 1,456,572 | |||
Net income | 22,326,594 | 22,326,594 | |||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. (note 3) | (50,300) | (50,300) | |||
Other comprehensive income (loss) | (99,154) | (99,154) | |||
Balances (in shares) at Dec. 31, 2017 | 10,583,879 | ||||
Balances at Dec. 31, 2017 | $ 15,368,161 | $ 2,166,768 | $ 42,675,805 | $ 60,210,734 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income for the year | $ 22,326,594 | $ 16,067,154 | $ 11,373,730 |
Items not involving cash: | |||
Depreciation of property and equipment | 3,727,822 | 1,823,683 | 1,404,296 |
Loss on write off of property and equipment | 16,951 | ||
Amortization of debt discount and issuance costs | 273,010 | 31,166 | |
Amortization of intangible assets | 8,399,936 | 953,174 | 262,726 |
Impairment of indefinite life intangible asset | 111,251 | 42,673 | 206,116 |
Deferred income taxes (recovery) | (3,336,824) | 1,194,232 | 134,861 |
Excess tax benefits on share-based compensation expense | (2,796,171) | 859,111 | 3,431,017 |
Amortization of deferred rent | 5,712 | 24,729 | 27,449 |
Loss on disposal of domain names | 290,793 | 29,691 | 24,066 |
Other income | (515,280) | (515,280) | (85,872) |
Loss (gain) on change in the fair value of forward contracts | 17,328 | (322,732) | 136,276 |
Stock-based compensation | 1,456,572 | 799,434 | 526,025 |
Change in non-cash operating working capital: | |||
Accounts receivable | 1,009,620 | (3,754,234) | (220,188) |
Inventory | (1,733,457) | (307,014) | (442,806) |
Prepaid expenses and deposits | (1,642,016) | (1,182,765) | (1,282,054) |
Prepaid domain name registry and ancillary services fees | 4,030,485 | (4,640,923) | 630,653 |
Income taxes recoverable | (426,068) | 3,176,532 | (2,321,345) |
Accounts payable | (3,825,526) | 390,887 | 249,931 |
Accrued liabilities | (1,274,773) | 1,243,219 | 1,691,356 |
Customer deposits | 1,084,933 | 281,713 | 675,182 |
Deferred revenue | 4,933,478 | 6,255,027 | 366,273 |
Accreditation fees payable | (237,730) | 59,331 | (10,664) |
Net cash provided by operating activities | 31,896,640 | 22,508,808 | 16,777,028 |
Financing activities: | |||
Proceeds received on exercise of stock options | 221,587 | 146,390 | 803,136 |
Payment of tax obligations resulting from net exercise of stock options | (1,461,651) | (363,285) | (1,306,981) |
Repurchase of common stock | (7,180,257) | (23,616,286) | |
Proceeds received on loan payable | 86,998,000 | 16,989,583 | 3,500,000 |
Repayment of loan payable | (19,975,574) | (9,758,276) | |
Payment of loan payable costs | (620,217) | (513,665) | |
Net cash provided by (used in) financing activities | 65,162,145 | (679,510) | (20,620,131) |
Investing activities: | |||
Additions to property and equipment | (12,934,872) | (7,917,822) | (2,967,360) |
Proceeds on waiver of rights to .online registry | 6,619,831 | ||
Remaining payment for the acquisition of Ting Virginia, LLC., net of cash of $21,423 | (357,492) | ||
Acquisition of a portion of the minority interest in Ting Virginia, LLC (note 3(a)) | (2,000,000) | ||
Acquisition of Enom Incorporated, net of cash (note 3(b)) | (76,237,460) | ||
Acquisition of intangible assets | (2,942,364) | (6,529,654) | |
Net cash used in investing activities | (94,114,696) | (14,447,476) | 3,294,979 |
Increase in cash and cash equivalents | 2,944,089 | 7,381,822 | (548,124) |
Cash and cash equivalents, beginning of period | 15,105,075 | 7,723,253 | 8,271,377 |
Cash and cash equivalents, end of period | 18,049,164 | 15,105,075 | 7,723,253 |
Supplemental cash flow information: | |||
Interest paid | 3,587,554 | 420,298 | 173,197 |
Income taxes paid, net | 7,815,208 | 3,766,664 | 3,132,105 |
Supplementary disclosure of non-cash investing and financing activities: | |||
Property and equipment acquired during the period not yet paid for | $ 213,836 | $ 446,821 | $ 217,198 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Net cash | $ 21,423 |
Note 1 - Organization of the Co
Note 1 - Organization of the Company | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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 (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 consists of mobile devices , mobile sim cards 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 not 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 (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 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 (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 fourth 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 not not no 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 Intangible assets not no -evaluates 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 fourth not Intangible Assets subject to amortization Intangible assets subject to amortization, consist of brand, customer relationships, technology and network rights and are amortized on a straight-line basis over their estimated useful lives as follows: (in years) Technology 2 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 not (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 The Company is an ICANN accredited registrar. Thus, the Company is the primary obligor with our reseller and retail registrant customers and are responsible for the fulfillment of our registrar services to those parties. As a result, the Company reports revenue in the amount of the fees we receive directly from our reseller and retail registrant customers. Our reseller customers maintain the primary obligor relationship with their retail customers, establish pricing and retain credit risk to those customers. Accordingly, the Company does not 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, except where a fixed contract has been negotiated, in which case revenues are recognized once all the terms of the contract have been satisfied. 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 (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 In those cases, where payment is not no 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 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 (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 carry forwards. 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 not” The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than- not not 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. (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 not not (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 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 is determined using an estimated credit-adjusted mark-to-market valuation (a level 2 (r) Investments The Company accounts for investment in entities over which they have ability to exert significant influence, but do not not not ( s ) Segment reporting The Company operates in two The Company ’s Domain Services revenues are attributed to the country in which the contract originates. Revenues from domain names issued under the OpenSRS brand from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. Revenues from domain names issued under the eNom brand from the Kirkland, Washington location are attributable to the United States 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 primarily through its business operations in the United States. The Company ’s assets are located in Canada, the United States and Germany. ( t ) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted On January 1, 2017, No. 2016 05, Derivatives and Hedging (Topic 815 2015 16, Simplifying the Accounting for Measurement-Period Adjustments. not In January 2017, No. 2017 04, Intangibles – Goodwill and Other (Topic 350 2017 01” two second one not December 31, 2017. On January 1, 2017, No. 2016 09, Stock Compensation (Topic 718 2016 09 ● Accounting for Income Taxes – the standard requires that all excess tax benefits and tax deficiencies related to employee share-based payments are recognized through income tax expense on a prospective basis, which resulted in the recognition of $2.8 December 31, 2017. ● Cash Flow Classification – as a result of the new standard, all excess tax benefits related to employee share-based payments which have been historically shown as a financing activity, should now be presented as an operating activity along with other income tax cash flows. Additionally, the standard requires that cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. The Company elected to apply both changes on a retrospective basis such that the comparative period is presented on a consistent basis as the current presentation; and ● Forfeitures – the standard allows for an entity-wide accounting policy election to either estimate the number of awards that are not not 2016 09 January 1, 2017, Recent Accounting Pronouncements Not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01" not not first second December 15, 2017. 2017 01 In May 2014, 2014 09, 606 ("ASU 2014 09" 2014 09 July 2015, December 15, 2017 ( may The Company will adopt ASU 2014 09 first 2018 not Domain Services: Most of the Company’s contracts related to Domain Services would individually be considered single “performance obligations” measured over the period of service, which is consistent with the revenue recognition policy under US GAAP. Network Access : The vast majority of revenue generated by the Network Access segment is related to mobile service contracts. Billings and “performance obligations” related to mobile service contracts are synchronized because mobile services are offered exclusively on a month-to-month basis without long-term commitments, device subsidization or financing arrangements embedded in the mobile service contract. However, the Company does expect to recognize changes related to Contract Acquisition costs related to certain retail Domain and Network Access sales. Topic 606 one The Company will continue to assess the impact of Topic 606 2018, may 606. In August 2017, No. 2017 12, Derivatives and Hedging (Topic 815 2017 12” December 15, 2018. 2017 12 In February 2016, No. 2016 02, Leases (Topic 842 2016 02 January 2018, No. 2018 02, Leases (Topic 842 842. December 15, 2018 ( January 1, 2019 first 2019 2016 02 |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. (a) Blue Ridge Websoft On February 27, 2015, one ’s wholly owned subsidiaries, acquired a 70% $3.5 On February 1, 2017, 20% $2.0 $2.0 not 10% fourth February 27, 2019), interest for $120,000 The Company has determined that the put option is 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”. As at December 31, 2017, $1.1 $1.2 February 27, 2019. On February 13, 2018, 10% 17 (b) eN om, Incorporated On January 20, 2017, 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 (“eNom”), a domain name registrar business. The acquisition provides Tucows additional scale and efficiency opportunities across its domain registrar operations. The purchase price was $77.8 $83.5 $5.7 2017 8 The Company has prepared a final purchase price allocation of the assets acquired and the liabilities assumed of eNom based on management’s best estimates of fair value. The final purchase price reflects the final appraisals, valuations and analyses of the fair value of the acquired assets and assumed liabilities. The following table shows the final allocation of the purchase price for eNom to the acquired identifiable assets and liabilities assumed: Goodwil l $ 69,048,340 Cas h 1,594,217 Bran d 12,400,000 Developed technolog y 3,900,000 Customer relationship s 28,000,000 Prepaid domain registry fee s 70,643,994 Other asset s 10,170,789 Total asset s 195,757,340 Deferred Revenu e (77,798,994 ) Deferred Tax Liabilitie s (24,223,276 ) Other liabilitie s (15,903,393 ) Total liabilitie s (117,925,663 ) Consideration Pai d $ 77,831,677 As required by ASC 805, The good will related to this acquisition is primarily attributable to synergies expected to arise from the acquisition and is not In connection with this acquisition, the Company incurred total acquisition related costs of $0.3 December 31, 2017 ( 2016: $0.5 The amount of eNom ’s revenues and net income included in our Consolidated Statements of Comprehensive Income for the year ended December 31, 2017 $110.8 $5.1 not The following table presents selected unaudited pro forma information for the Company assuming the acquisition of eNom had occurred as of January 1, 2016. not ’s actual results would have been if the acquisition had occurred as of the date indicated or what results would be for any future periods. Unaudite d Twelve months ended December 31 , 201 7 201 6 Net revenue s $ 333,882,963 $ 338,591,378 Net incom e 21,954,421 2,175,915 Basic earnings per common shar e 2.09 0.21 Diluted earnings per common shar e $ 2.04 $ 0.21 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment consist of the following: December 31, 201 7 December 31, 201 6 Computer equipment $ 12,312,120 $ 8,122,420 Computer software 1,449,480 1,277,972 Furniture and equipment 1,308,171 1,168,691 Vehicles and tools 1,305,900 830,543 Fiber network 14,052,618 7,095,971 Customer equipment and installations 6,774,031 3,889,581 Leasehold improvements 170,619 110,453 37,372,939 22,495,631 Less: Accumulated depreciation 12,752,641 9,045,193 $ 24,620,298 $ 13,450,438 Depreciation of property and equipment: Year ended December 31, 201 7 Year ended December 31, 201 6 Year ended December 31, 201 5 Depreciation of property and equipment $ 3,727,822 $ 1,823,683 $ 1,404,296 During the year ended December 31, 201 7, $16,951 December 31, 2016 2015, no |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill Goodwill represents the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed in our acquisitions. The Company's Goodwill balance is $90.1 December 31, 2017, $69.0 December 31, 2016, 3 98% $88.0 2% $2.1 Goodwill is not 2 no 201 7 2016 Other Intangible Assets: Intangible assets consist of acquired brand, technology, 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 2017, June 2006 not December 31, 2017, $0.1 not December 31, 2016 $42,673, not $0.2 December 31, 2015. Intangible assets, comprising brand, technology, customer relationships and network rights are being amortized on a straight-line basis over periods of four fifteen On January 20, 2017, , a wholesale and retail domain registrar. The Company acquired the assets and liabilities of eNom including wholesale and retail brands, proprietary technology and the existing customer relationships. The Company has accounted for these on a fair value basis and each intangible asset is being amortized over the estimated useful life. The amortization for the brands, technology and customer relationships are 7, 2 7 3 On September 19, 2017, $2. 6 $1.4 7 In Fiscal 201 7, two $0.3 7 Acquired intangible assets consist of the following: Surname domain names Direct navigation domain names Brand Customer relationships Technology Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 2 years 15 years Balances, December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ - $ 653,480 $ 14,469,677 Acquisition of customer relationships - - - 6,529,654 - - 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 Reclassifications - - 43,620 (45,509 ) - 1,889 - Acquisition of Enom (note 3(b)) - - 12,400,000 28,000,000 3,900,000 - 44,300,000 Acquisition of consumer related assets of Otono Networks, Inc. - - - 2,622,670 - - 2,622,670 Acquisition of customer relationships - - - 319,694 - - 319,694 Additions to/(disposals from) domain portfolio, net (38,291 ) (252,501 ) - - - - (290,792 ) Impairment of indefinite life intangible assets - (111,251 ) - - - - (111,251 ) Amortization expense - - (1,656,040 ) (4,910,268 ) (1,787,500 ) (46,128 ) (8,399,936 ) Balances December 31, 2017 $ 11,256,930 $ 1,505,336 $ 10,792,790 $ 32,185,398 $ 2,112,500 $ 561,224 $ 58,414,178 The following table shows the estimated amortization expense for each of the next 5 no intangible assets are made: Year ending December 31, 201 8 $ 9,246,620 201 9 7,335,572 20 20 7,173,072 202 1 7,173,072 202 2 7,173,072 Thereafter 7,550,504 Total $ 45,651,912 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6. 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, 2017: December 31, 201 7 Fair Value Measurement Using Assets at Level 1 Level 2 Level 3 Fair Value Derivative instrument asset $ — $ — $ — $ — Total Assets $ — $ — $ — $ — 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 Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 172,888 $ — $ 172,888 Total Liabilities $ — $ 172,888 $ — $ 172,888 |
Note 7 - Derivative Instruments
Note 7 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7. Foreign currency forward contracts In October 2012, not one eighteen The Company has designated certain of these transactions as cash flow hedges of forecasted transactions under ASC Topic 815. 815, December 31, 2017 2016, no As of December 31, 201 7, not December 31, 2016, $26.6 $24.0 815 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, 2017 2016, not Fair value of derivative instruments in the consolidated balance sheets (see note 6 Derivatives Balance Sheet Location December 31, 201 7 Assets at Fair Value December 31, 201 6 Assets at Fair Value Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ — $ 155,560 Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ — $ 17,328 Total foreign currency forward contracts Derivative instruments $ — $ 172,888 Movement in AOCI balance for the year ended December 31, 201 7 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2016 $ 155,560 $ (56,406 ) $ 99,154 Other comprehensive income (loss) before reclassifications 863,425 (313,078 ) 550,347 Amount reclassified from accumulated other comprehensive income (1,018,985 ) 369,484 (649,501 ) Other comprehensive income (loss) for the year ended December 31, 201 7 (155,560 ) 56,406 (99,154 ) Ending AOCI balance – December 31, 2017 $ — $ — $ — Movement in AOCI balance for the year ended December 31, 201 6 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 ) 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 Foreign currency forward contracts – year ended December 31, 2017 Operating expenses $ 878,519 $ (99,154 ) Cost of revenues $ 140,466 Operating expenses $ - 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 ) In addition to the above, for those foreign currency forward contracts not gain of $0.1 no December 31, 2017. $0.2 $0.3 December 31, 2016, $0.5 $0.1 December 31, 2015, |
Note 8 - Loan Payable
Note 8 - Loan Payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. 2017 On January 20, 2017, and restated secured Credit Agreement (the “2017 $140 2016 $40.0 $35.5 $84.5 (the “Facility D”). The Company immediately drew down $84.5 3 “2016 established under the Company’s secured credit agreement (the “2016 August 18, 2016. In connection with the 2017 $0.6 The obligations of the Company under the 2017 first The 2017 four 2017 Amended Credit Facility, the Company has access to an aggregate of up to $140 ● a $5 ● a $15 ● a $35.5 million non-revolving facility (“Facility C”); and ● a $ 84.5 Borrowings under the 2017 ’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”). Facility D was provided and used for the acquisition of eNom. The repayment terms for Facility A require monthly interest payments with any final principal payment becoming due upon maturity of the 2017 December 31st of each year, balances drawn during the year that remain outstanding will become payable on a quarterly basis commencing the first first four five seven 2017 2.25:1 December 31 50% The 2017 covenants, and events of default. The 2017 four 3.00:1 September 30, 2017, 2.50:1 September 30, 2018 2.25:1 1.20:1. $32.8 not $20 $40 not 1.5 twelve December 31, 2017, On June 6, 2017, the Company entered into the First Amendment to First Amended and Restated Credit Agreement (the “First Amendment”) with BMO and the Lenders. Among other things, the First Amendment (i) increases the amount available for borrowing under “Facility C,” a committed, non-revolving credit facility by $502,500, not On December 5, 2017, may $5,000,000 On January 24, 2018, 17 Borrowings under the 2017 If Total Funded Debt to EBITDA is : Availment type or fe e Less than 1.0 0 Greater than or equal to 1.00 and less than 2.0 0 Greater than or equal to 2.00 and less than 2.2 5 Greater than or equal to 2.2 5 Canadian dollar borrowings based on Bankers ’ Acceptance or U.S. dollar borrowings based on LIBOR (Margin) 2.00% 2.25% 2.75% 3.25% Canadian or U.S. dollar borrowings based on Prime Rate or U.S. dollar borrowings based on Base Rate (Margin ) 0.75% 1.00% 1.50% 2.00% Standby fees 0.40% 0.45% 0.55% 0.65% The following table summarizes the Company ’s borrowings under the credit facilities: December 31, 2017 December 31, 2016 Facility B - $ 6,000,000 Facility C 5,930,338 4,731,306 Facility D 71,823,300 - Less: unamortized debt discount and issuance costs (829,611 ) (482,498 ) Total loan payable 76,924,027 10,248,808 Less: loan payable, current portion 18,289,853 2,233,110 Loan payable, long-term portion 58,634,174 $ 8,015,698 The following table summarizes our scheduled principal repayments as of December 31, 2017: Principal repayments 2018 18,289,853 2019 18,289,853 2020 18,103,004 2021 17,542,457 2022 4,867,757 Thereafter 660,714 $ 77,753,638 Other Credit Facilities Prior to the Company entering into the 2016 November 19, 2012, two “2012 2016 2012 2012 2016 The treasury risk management facility under the Amended Credit Facility provides for a $3.5 may not 18 December 31, 2017, nil 7 During fiscal 2017, $1.0 CDN$0.5 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 34% : Year ended December 31, 2017 2016 2015 Income for the year before provision for income taxes $ 24,074,768 $ 25,112,924 $ 17,942,957 Computed tax expense 8,185,420 8,538,245 6,100,605 Increase (reduction) in income tax expense resulting from: State income taxes 656,603 530,803 265,489 Effect of the decrease in Federal tax rate on deferred taxes (10,036,080 ) - - Valuation allowance on pre-2017 Foreign Tax Credits 1,275,937 - - Non-creditable 2017 Foreign Tax 2,903,400 - - Excess tax benefits on share-based compensation expense (2,796,171 ) - - Permanent differences 1,635,611 290,327 278,959 Others (76,546 ) (313,605 ) (75,826 ) Provision for income taxes $ 1,748,174 $ 9,045,770 $ 6,569,227 On December 22, 2017, not 1 the U.S. federal corporate tax rate from 35% 21% 2 December 31, 2017; ( 3 4 5 6 We have calculated, as a provisional estimate, a net $5.8 ion non-cash tax benefit through income from continuing operations for the re-measurement impact related to the changes in tax laws included in the Tax Act. The primary driver of this re-measurement was the result of the reduction in the corporate tax rate from 35% 21% $10.0 $1.3 no not 21% 21% 2017 2017 $2.9 one $0.1 On December 22, 2017, not 2017 may December 31, 2017. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2017, 2016 December 31, 201 7 December 31, 201 6 Deferred tax assets (liabilities) : Deferred tax assets : Deferred revenu e $ 7,573,276 $ 5,482,080 Foreign tax credit s 1,275,937 1,275,937 Amortizatio n (1,936,615 ) (2,184,944 ) Net operating losse s 2,544,862 - Accruals, including foreign exchange and othe r 517,493 1,135,652 Sub-total Deferred tax asset s 9,974,953 5,708,725 Valuation allowance (1,275,937 ) - Total deferred tax asset s $ 8,699,016 $ 5,708,725 Deferred tax liabilities : Prepaid registry fees and expense s $ (18,051,222 ) $ - Limited life intangible asset s (7,371,264 ) (120,232 ) Indefinite life intangible asset s (3,110,208 ) (4,706,960 ) Total deferred tax liability $ (28,532,694 ) $ (4,827,192 ) Net deferred tax asset (liability ) $ (19,833,678 ) $ 881,533 In connection with the eNom acquisition, we acquired deferred tax liabilities primarily composed of prepaid registry fees. As a result, we aligned our tax methodology pertaining to the deductibility of prepaid registry fees for our legacy domain services. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not not We believe it is more likely than not The Company had approximately $15,000 December 31, 2017, $0.1 December 31, 2016, The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The Company did not December 31, 2017, December 31, 2016. Unrecognized tax benefits decreased by $0.1 tax authorities finalized their review and settled prior years’ taxes owing in Pennsylvania. The following is a reconciliation of Tucows ’ change in uncertain tax position: Total Gross Unrecognized Tax Benefits December 31, 201 7 December 31, 201 6 Balance, beginning of year $ 117,000 $ 117,000 Change in uncertain tax benefits (102,000 ) — Balance, end of year $ 15,000 $ 117,000 |
Note 10 - Common Shares
Note 10 - Common Shares | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 10. The Company ’s authorized common share capital is 250 December 31, 2017, 10,583,879 2016: 10,461,574 Repurchase of common shares: (a) Normal Course Issuer Bids: On February 14, 2018, $40 17 On March 1, 2017, $40 Under this buyback program, the Company may $40 No February 14, 2018. On February 9, 2016, may $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, December 2014. 193,907 $18.50 $3.6 $0.1 (c ) Net Exercise of Stock Options 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 back to the Company a number of shares at fair value equal to the amounts due. These transactions are accounted for by the Company as a purchase and retirement of shares and are included in the table on the following page as common stock received in connection with share-based compensation. The following table summarizes our share repurchase activity for the periods covered below: Year Ended December 31, 201 7 201 6 201 5 Common stock repurchased on the open market or through tender offer Number of shares — 308,416 1,062,456 Aggregate market value of shares (in thousands) $ — $ 7,180 $ 23,616 Average price per share $ — $ 23.28 $ 22.23 Common stock received in connection with share-based compensation Number of shares 50,454 25,572 99,675 Aggregate market value of shares (in thousands) $ 2,602 $ 634 $ 2,335 Average price per share $ 51.58 $ 24.80 $ 23.42 |
Note 11 - Share Option Plans
Note 11 - Share Option Plans | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. The Company ’s 1996 “1996 may 1996 2,787,500 1996 four 1996 February 25, 2006; no 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 not 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 back to the Company a number of shares at fair value equal to the amounts due. These transactions are accounted for by the Company as a purchase and retirement of shares. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company ’s common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Tucows Inc. common shares at the date of grant. The fair value of stock options granted during the years ended December 31, 2017, 2016 2015 Year ended December 31, 201 7 201 6 201 5 Volatility 41.6 % 66.1 % 44.1 % Risk-free interest rate 1.8 % 1.3 % 1.3 % Expected life (in years) 4.55 4.3 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 $ 20.08 $ 11.18 $ 7.40 Details of stock option transactions are as follows: Year ended December 31, Year ended December 31, Year ended December 31, 201 7 201 6 201 5 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 474,501 $ 12.67 513,366 $ 9.24 976,062 $ 5.41 Granted 370,025 54.10 81,750 22.66 67,500 21.26 Exercised (172,759 ) 7.88 (109,963 ) 3.79 (517,998 ) 3.53 Forfeited (18,196 ) 37.70 (9,902 ) 16.80 (10,323 ) 13.30 Expired — — (750 ) 3.76 (1,875 ) 2.40 Outstanding, end of period 653,571 36.69 474,501 12.67 513,366 9.24 Options exercisable, end of period 243,771 $ 14.79 332,192 $ 10.08 321,155 $ 6.49 As of December 31, 2017, 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 $ 2.92 - $ 8.92 91,133 $ 6.63 1.6 $ 5,779,404 91,133 $ 6.63 1.6 $ 5,779,404 $ 10.16 - $ 19.95 120,913 16.30 3.5 6,499,346 92,638 15.87 3.3 5,018,978 $ 21.10 - $ 27.53 81,000 23.65 4.2 3,758,393 55,000 24.61 3.8 2,499,313 $ 35.25 - $ 37.35 14,375 35.89 5.4 491,062 5,000 35.25 6.0 174,000 $ 43.15 - $ 47.00 18,500 44.19 6.1 478,400 — — — — $ 53.20 - $ 55.65 327,650 55.41 6.4 4,795,160 — — — — 653,571 $ 36.69 4.9 $ 21,801,765 243,771 $ 14.79 2.8 $ 13,471,695 Total unrecognized compensation cost relating to unvested stock options at December 31, 201 7, $6.5 3.0 The total intrinsic value of options exercised during the years ended December 31, 2017, 2016 2015 $7.6 $2.4 $9.6 December 31, 2017, 2016 2015 $0.2 $0.1 $0.8 The Company recorded stock-based compensation amounting to $1.5 $0.8 $0.5 December 31, 2017, 2016 2015 Year ended December 31, 2017 Year ended December 31, 2016 Year ended December 31, 2015 Network expenses $ 109,988 $ 21,704 $ 28,915 Sales and marketing 571,682 236,063 188,035 Technical operations and development 360,415 98,059 111,239 General and administrative 414,487 443,608 197,836 $ 1,456,572 $ 799,434 $ 526,025 |
Note 12 - Foreign Exchange
Note 12 - Foreign Exchange | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Foreign Currency Disclosure [Text Block] | 12. A foreign exchange gain amounting to $0.7 December 31, 2017. $0.1 December 31, 2016. $0.3 December 31, 2015. |
Note 13 - Other Income, Net
Note 13 - Other Income, Net | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 13. In February 2015, d joint venture to operate the online registry and instead entered into a Joint Marketing agreement with our venture partners under which our original capital contributions have been returned and a set of go-forward marketing arrangements have been created instead. Under the terms of the agreement, the Company has undertaken to provide certain marketing support for online registry and has agreed to certain volume commitments during the term of the agreement. The Joint Marketing Agreement is for a term of three November 2015. $1.5 three $0.5 December 31, 2017 2016, $0.1 December 31, 2015. |
Note 14 - Earnings Per Common S
Note 14 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation: Year ended December 31, 201 7 Year ended December 31, 201 6 Year ended December 31, 201 5 Numerator for basic and diluted earnings per common share: Net income for the year $ 22,326,594 $ 16,067,154 $ 11,373,730 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,537,356 10,524,856 10,968,500 Effect of stock options 256,266 188,739 391,584 Diluted weighted average number of shares outstanding 10,793,622 10,713,595 11,360,084 Basic earnings per common share $ 2.12 $ 1.53 $ 1.04 Diluted earnings per common share $ 2.07 $ 1.50 $ 1.00 Options to purchase 341,650 2017 2016: 76,750; 2015: 75,050 not |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 15. (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 8 $ 1,989,000 $ 34,405,000 $ 36,394,000 201 9 1,569,000 12,121,000 13,690,000 20 20 1,119,000 553,000 1,672,000 202 1 455,000 31,000 486,000 202 2 348,000 28,000 376,000 Thereafter 1,857,000 227,000 2,084,000 $ 7,337,000 $ 47,365,000 $ 54,702,000 Rental expense under operating lease agreements was $1.9 $1.2 $1.0 December 31, 2017, 2016 2015, (b) On February 9, 2015 Under the agreement, the City will finance, construct, and maintain the WFN which will be leased to T ing for a period of ten Under the terms of the agreement, T ing may $50,000 $150,000 2016, $21.0 five 30 December 31, 2017, $7.5 not 2018. (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, 2017 not Namecheap On August 30, 2017, Namecheap”) filed a complaint against the Company, eNom, Inc., and unknown John Does in the United States District Court for the Western District of Washington alleging breach of contract, breach of the implied duty of good faith and fair dealing, and unjust enrichment (the “Namecheap Federal Action”). Namecheap voluntarily dismissed the Namecheap Federal Action without prejudice on October 10, 2017. 2.65 November 15, 2017, one January 5, 2018 January 8, 2018 January 16, 2018. not |
Note 16 - Segment Reporting
Note 16 - Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 6 . 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 not 2 Information by reportable segments, which is regularly reported to the chief operating decision maker is as follows: Network Access Domain Name Service s Consolidated Total s Year ended December 31, 201 7 Net Revenue s $ 88,710,902 $ 240,709,839 $ 329,420,741 Cost of revenue s Cost of revenue s 48,706,531 181,893,101 230,599,632 Network expense s 1,861,319 7,463,135 9,324,454 Depreciation of property and equipmen t 2,202,052 940,346 3,142,398 Amortization of intangible asset s 46,128 1,787,500 1,833,628 Total cost of revenue s 52,816,030 192,084,082 244,900,112 Gross Profi t 35,894,872 48,625,757 84,520,629 Expenses : Sales and marketin g 29,422,984 Technical operations and developmen t 7,257,720 General and administrativ e 13,593,901 Depreciation of property and equipmen t 585,424 Amortization of intangible asset s 6,566,308 Impairment of indefinite life intangible asset s 111,251 Loss (gain) on currency forward contract s (98,227 ) Income from operation s 27,081,268 Other income (expenses), ne t (3,006,500 ) Income before provision for income taxe s $ 24,074,768 Network Access Domain Name Service s Consolidated Total s Year ended December 31, 201 6 Net Revenue s $ 73,778,951 $ 116,039,981 $ 189,818,932 Cost of revenue s Cost of revenue s 37,939,683 82,247,279 120,186,962 Network expense s 1,398,899 3,811,601 5,210,500 Depreciation of property and equipmen t 977,395 342,424 1,319,819 Amortization of intangible asset s 48,017 - 48,017 Total cost of revenue s 40,363,994 86,401,304 126,765,298 Gross Profi t 33,414,957 29,638,677 63,053,634 Expenses : Sales and marketin g 20,754,752 Technical operations and developmen t 4,494,819 General and administrativ e 11,404,793 Depreciation of property and equipmen t 503,864 Amortization of intangible asset s 905,157 Impairment of indefinite life intangible asset s 42,673 Loss (gain) on currency forward contract s (98,977 ) Income from operation s 25,046,553 Other income (expenses), ne t 66,371 Income before provision for income taxe s $ 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 (b) The following is a summary of the Company’s revenue earned from each significant revenue stream: Year ended December 31, 201 7 201 6 201 5 Network Access Services: Mobile Services $ 83,885,054 $ 70,127,294 $ 57,685,554 Other Services 4,825,848 3,651,657 3,288,711 Total Network Access Services 88,710,902 73,778,951 60,974,265 Domain Services: Wholesale Domain Services 183,731,385 89,009,546 84,934,519 Value Added Services 18,572,774 9,169,721 9,298,978 Total Wholesale 202,304,159 98,179,267 94,233,497 Retail 31,649,000 14,629,949 12,637,498 Portfolio 6,756,680 3,230,765 3,841,519 Total Domain Services 240,709,839 116,039,981 110,712,514 $ 329,420,741 $ 189,818,932 $ 171,686,779 During the years ended December 31, 2017, 2016 2015, no 10% December 31, 2017, 2016 2015 no 10% Transactions with the Company ’s equity investees generated revenue of approximately $4.9 December 31, 2017. (c) The following is a summary of the Company’s cost of revenues from each significant revenue stream: Year ended December 31, 201 7 201 6 201 5 Network Access Services: Mobile Services $ 45,335,276 $ 35,914,882 $ 32,615,416 Other Services 3,371,255 2,024,801 1,518,153 Total Network Access Services 48,706,531 37,939,683 34,133,569 Domain Services: Wholesale Domain Services 161,012,532 72,947,730 70,633,267 Value Added Services 2,383,627 1,918,165 2,023,341 Total Wholesale 163,396,159 74,865,895 72,656,608 Retail 17,346,138 6,765,237 5,494,550 Portfolio 1,150,804 616,147 695,958 Total Domain Services 181,893,101 82,247,279 78,847,116 Network Expenses: Network, other costs 9,324,454 5,210,500 5,464,777 Network, depreciation and amortization costs 4,976,026 1,367,836 1,183,508 14,300,480 6,578,336 6,648,285 $ 244,900,112 $ 126,765,298 $ 119,628,970 (d) The following is a summary of the Company’s property and equipment by geographic region: December 31, 201 7 December 31, 201 6 Canad a $ 1,176,371 $ 1,010,427 United State s 23,417,435 12,398,961 German y 26,492 41,050 $ 24,620,298 $ 13,450,438 (e) The following is a summary of the Company’s amortizable intangible assets by geographic region: December 31, 201 7 December 31, 201 6 Canad a $ 7,748,940 $ 5,850,596 United State s 37,783,202 633,798 German y 119,770 325,090 $ 45,651,912 $ 6,809,484 (f) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region: December 31, 201 7 December 31, 201 6 Canada $ - $ 5,708,725 $ - $ 5,708,725 (g) Valuation and qualifying accounts: Allowance for doubtful accounts excluding provision for credit note s Balance at beginning of perio d Charged to (recovered) costs and expense s Write-offs during perio d Balance at end of perio d Year ended December 31, 201 7 $ 164,145 $ 4,264 $ - $ 168,409 Year ended December 31, 201 6 $ 122,095 $ 42,050 $ - $ 164,145 |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 17. a. On January 5, 2018, King County Superior court (Washington) granted Namecheap Inc. a preliminary injunction requiring the Company to bulk transfer 2.65 January 16, 2018. first 2018 $14.6 $14.5 b. On January 24, 2018, The Second Interim Amendment provides that certain defined terms in Section 1.01 not $3.0 c. On February 14, 2018, $40 February 14, 2018 February 13, 2019. $40 March 1, 2017 February 28, 2018 February 14, 2018. d. On February 13, 2018, 10% Virginia, LLC for $1.2 $1.2 10% |
Note 18 - Selected Quarterly Fi
Note 18 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 18. December 31 September 30 June 30 March 31 (in thousands, except for per share data) 2017 Total revenues $ 90,621 $ 85,008 $ 84,223 $ 69,568 Gross profit 25,736 20,494 21,347 16,944 Net income 11,199 3,439 5,241 2,446 Earnings per share: Basic $ 1.06 $ 0.33 $ 0.50 $ 0.23 Diluted 1.04 0.32 0.49 0.23 2016 Total revenues $ 48,805 $ 49,064 $ 47,204 $ 44,746 Gross profit 16,423 16,638 15,645 14,348 Net income 2,817 4,741 4,071 4,438 Earnings per share: Basic $ 0.27 $ 0.45 $ 0.39 $ 0.42 Diluted 0.26 0.45 0.38 0.41 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
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 consists of mobile devices , mobile sim cards 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 not 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 |
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 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 |
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 fourth 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 not not no 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 Intangible assets not no -evaluates 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 fourth not Intangible Assets subject to amortization Intangible assets subject to amortization, consist of brand, customer relationships, technology and network rights and are amortized on a straight-line basis over their estimated useful lives as follows: (in years) Technology 2 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 not |
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 The Company is an ICANN accredited registrar. Thus, the Company is the primary obligor with our reseller and retail registrant customers and are responsible for the fulfillment of our registrar services to those parties. As a result, the Company reports revenue in the amount of the fees we receive directly from our reseller and retail registrant customers. Our reseller customers maintain the primary obligor relationship with their retail customers, establish pricing and retain credit risk to those customers. Accordingly, the Company does not 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, except where a fixed contract has been negotiated, in which case revenues are recognized once all the terms of the contract have been satisfied. 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 (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 In those cases, where payment is not no 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 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 |
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 carry forwards. 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 not” The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than- not not 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. |
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 not not |
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 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 is determined using an estimated credit-adjusted mark-to-market valuation (a level 2 |
Investment, Policy [Policy Text Block] | (r) Investments The Company accounts for investment in entities over which they have ability to exert significant influence, but do not not not |
Segment Reporting, Policy [Policy Text Block] | ( s ) Segment reporting The Company operates in two The Company ’s Domain Services revenues are attributed to the country in which the contract originates. Revenues from domain names issued under the OpenSRS brand from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. Revenues from domain names issued under the eNom brand from the Kirkland, Washington location are attributable to the United States 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 primarily 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] | ( t ) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted On January 1, 2017, No. 2016 05, Derivatives and Hedging (Topic 815 2015 16, Simplifying the Accounting for Measurement-Period Adjustments. not In January 2017, No. 2017 04, Intangibles – Goodwill and Other (Topic 350 2017 01” two second one not December 31, 2017. On January 1, 2017, No. 2016 09, Stock Compensation (Topic 718 2016 09 ● Accounting for Income Taxes – the standard requires that all excess tax benefits and tax deficiencies related to employee share-based payments are recognized through income tax expense on a prospective basis, which resulted in the recognition of $2.8 December 31, 2017. ● Cash Flow Classification – as a result of the new standard, all excess tax benefits related to employee share-based payments which have been historically shown as a financing activity, should now be presented as an operating activity along with other income tax cash flows. Additionally, the standard requires that cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity. The Company elected to apply both changes on a retrospective basis such that the comparative period is presented on a consistent basis as the current presentation; and ● Forfeitures – the standard allows for an entity-wide accounting policy election to either estimate the number of awards that are not not 2016 09 January 1, 2017, Recent Accounting Pronouncements Not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01" not not first second December 15, 2017. 2017 01 In May 2014, 2014 09, 606 ("ASU 2014 09" 2014 09 July 2015, December 15, 2017 ( may The Company will adopt ASU 2014 09 first 2018 not Domain Services: Most of the Company’s contracts related to Domain Services would individually be considered single “performance obligations” measured over the period of service, which is consistent with the revenue recognition policy under US GAAP. Network Access : The vast majority of revenue generated by the Network Access segment is related to mobile service contracts. Billings and “performance obligations” related to mobile service contracts are synchronized because mobile services are offered exclusively on a month-to-month basis without long-term commitments, device subsidization or financing arrangements embedded in the mobile service contract. However, the Company does expect to recognize changes related to Contract Acquisition costs related to certain retail Domain and Network Access sales. Topic 606 one The Company will continue to assess the impact of Topic 606 2018, may 606. In August 2017, No. 2017 12, Derivatives and Hedging (Topic 815 2017 12” December 15, 2018. 2017 12 In February 2016, No. 2016 02, Leases (Topic 842 2016 02 January 2018, No. 2018 02, Leases (Topic 842 842. December 15, 2018 ( January 1, 2019 first 2019 2016 02 |
Note 2 -Significant Accountin28
Note 2 -Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) Technology 2 Brand 7 Customer relationships 4 - 7 Network rights 15 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Goodwil l $ 69,048,340 Cas h 1,594,217 Bran d 12,400,000 Developed technolog y 3,900,000 Customer relationship s 28,000,000 Prepaid domain registry fee s 70,643,994 Other asset s 10,170,789 Total asset s 195,757,340 Deferred Revenu e (77,798,994 ) Deferred Tax Liabilitie s (24,223,276 ) Other liabilitie s (15,903,393 ) Total liabilitie s (117,925,663 ) Consideration Pai d $ 77,831,677 |
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudite d Twelve months ended December 31 , 201 7 201 6 Net revenue s $ 333,882,963 $ 338,591,378 Net incom e 21,954,421 2,175,915 Basic earnings per common shar e 2.09 0.21 Diluted earnings per common shar e $ 2.04 $ 0.21 |
Note 4 - Property and Equipme30
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 201 7 December 31, 201 6 Computer equipment $ 12,312,120 $ 8,122,420 Computer software 1,449,480 1,277,972 Furniture and equipment 1,308,171 1,168,691 Vehicles and tools 1,305,900 830,543 Fiber network 14,052,618 7,095,971 Customer equipment and installations 6,774,031 3,889,581 Leasehold improvements 170,619 110,453 37,372,939 22,495,631 Less: Accumulated depreciation 12,752,641 9,045,193 $ 24,620,298 $ 13,450,438 |
Schedule of Depreciation [Table Text Block] | Year ended December 31, 201 7 Year ended December 31, 201 6 Year ended December 31, 201 5 Depreciation of property and equipment $ 3,727,822 $ 1,823,683 $ 1,404,296 |
Note 5 - Goodwill and Other I31
Note 5 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Surname domain names Direct navigation domain names Brand Customer relationships Technology Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 2 years 15 years Balances, December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ - $ 653,480 $ 14,469,677 Acquisition of customer relationships - - - 6,529,654 - - 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 Reclassifications - - 43,620 (45,509 ) - 1,889 - Acquisition of Enom (note 3(b)) - - 12,400,000 28,000,000 3,900,000 - 44,300,000 Acquisition of consumer related assets of Otono Networks, Inc. - - - 2,622,670 - - 2,622,670 Acquisition of customer relationships - - - 319,694 - - 319,694 Additions to/(disposals from) domain portfolio, net (38,291 ) (252,501 ) - - - - (290,792 ) Impairment of indefinite life intangible assets - (111,251 ) - - - - (111,251 ) Amortization expense - - (1,656,040 ) (4,910,268 ) (1,787,500 ) (46,128 ) (8,399,936 ) Balances December 31, 2017 $ 11,256,930 $ 1,505,336 $ 10,792,790 $ 32,185,398 $ 2,112,500 $ 561,224 $ 58,414,178 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 201 8 $ 9,246,620 201 9 7,335,572 20 20 7,173,072 202 1 7,173,072 202 2 7,173,072 Thereafter 7,550,504 Total $ 45,651,912 |
Note 6 - Fair Value Measureme32
Note 6 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 201 7 Fair Value Measurement Using Assets at Level 1 Level 2 Level 3 Fair Value Derivative instrument asset $ — $ — $ — $ — Total Assets $ — $ — $ — $ — December 31, 201 6 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 172,888 $ — $ 172,888 Total Liabilities $ — $ 172,888 $ — $ 172,888 |
Note 7 - Derivative Instrumen33
Note 7 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives Balance Sheet Location December 31, 201 7 Assets at Fair Value December 31, 201 6 Assets at Fair Value Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ — $ 155,560 Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ — $ 17,328 Total foreign currency forward contracts Derivative instruments $ — $ 172,888 |
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, 2016 $ 155,560 $ (56,406 ) $ 99,154 Other comprehensive income (loss) before reclassifications 863,425 (313,078 ) 550,347 Amount reclassified from accumulated other comprehensive income (1,018,985 ) 369,484 (649,501 ) Other comprehensive income (loss) for the year ended December 31, 201 7 (155,560 ) 56,406 (99,154 ) Ending AOCI balance – December 31, 2017 $ — $ — $ — 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 ) |
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 Foreign currency forward contracts – year ended December 31, 2017 Operating expenses $ 878,519 $ (99,154 ) Cost of revenues $ 140,466 Operating expenses $ - 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 ) |
Note 8 - Loan Payable (Tables)
Note 8 - Loan Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Standby Fees Based on Total Funded Debt to EBITDA Ratio [Table Text Block] | If Total Funded Debt to EBITDA is : Availment type or fe e Less than 1.0 0 Greater than or equal to 1.00 and less than 2.0 0 Greater than or equal to 2.00 and less than 2.2 5 Greater than or equal to 2.2 5 Canadian dollar borrowings based on Bankers ’ Acceptance or U.S. dollar borrowings based on LIBOR (Margin) 2.00% 2.25% 2.75% 3.25% Canadian or U.S. dollar borrowings based on Prime Rate or U.S. dollar borrowings based on Base Rate (Margin ) 0.75% 1.00% 1.50% 2.00% Standby fees 0.40% 0.45% 0.55% 0.65% |
Schedule of Debt [Table Text Block] | December 31, 2017 December 31, 2016 Facility B - $ 6,000,000 Facility C 5,930,338 4,731,306 Facility D 71,823,300 - Less: unamortized debt discount and issuance costs (829,611 ) (482,498 ) Total loan payable 76,924,027 10,248,808 Less: loan payable, current portion 18,289,853 2,233,110 Loan payable, long-term portion 58,634,174 $ 8,015,698 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Principal repayments 2018 18,289,853 2019 18,289,853 2020 18,103,004 2021 17,542,457 2022 4,867,757 Thereafter 660,714 $ 77,753,638 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2017 2016 2015 Income for the year before provision for income taxes $ 24,074,768 $ 25,112,924 $ 17,942,957 Computed tax expense 8,185,420 8,538,245 6,100,605 Increase (reduction) in income tax expense resulting from: State income taxes 656,603 530,803 265,489 Effect of the decrease in Federal tax rate on deferred taxes (10,036,080 ) - - Valuation allowance on pre-2017 Foreign Tax Credits 1,275,937 - - Non-creditable 2017 Foreign Tax 2,903,400 - - Excess tax benefits on share-based compensation expense (2,796,171 ) - - Permanent differences 1,635,611 290,327 278,959 Others (76,546 ) (313,605 ) (75,826 ) Provision for income taxes $ 1,748,174 $ 9,045,770 $ 6,569,227 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 201 7 December 31, 201 6 Deferred tax assets (liabilities) : Deferred tax assets : Deferred revenu e $ 7,573,276 $ 5,482,080 Foreign tax credit s 1,275,937 1,275,937 Amortizatio n (1,936,615 ) (2,184,944 ) Net operating losse s 2,544,862 - Accruals, including foreign exchange and othe r 517,493 1,135,652 Sub-total Deferred tax asset s 9,974,953 5,708,725 Valuation allowance (1,275,937 ) - Total deferred tax asset s $ 8,699,016 $ 5,708,725 Deferred tax liabilities : Prepaid registry fees and expense s $ (18,051,222 ) $ - Limited life intangible asset s (7,371,264 ) (120,232 ) Indefinite life intangible asset s (3,110,208 ) (4,706,960 ) Total deferred tax liability $ (28,532,694 ) $ (4,827,192 ) Net deferred tax asset (liability ) $ (19,833,678 ) $ 881,533 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Total Gross Unrecognized Tax Benefits December 31, 201 7 December 31, 201 6 Balance, beginning of year $ 117,000 $ 117,000 Change in uncertain tax benefits (102,000 ) — Balance, end of year $ 15,000 $ 117,000 |
Note 10 - Common Shares (Tables
Note 10 - Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Share Repurchases [Table Text Block] | Year Ended December 31, 201 7 201 6 201 5 Common stock repurchased on the open market or through tender offer Number of shares — 308,416 1,062,456 Aggregate market value of shares (in thousands) $ — $ 7,180 $ 23,616 Average price per share $ — $ 23.28 $ 22.23 Common stock received in connection with share-based compensation Number of shares 50,454 25,572 99,675 Aggregate market value of shares (in thousands) $ 2,602 $ 634 $ 2,335 Average price per share $ 51.58 $ 24.80 $ 23.42 |
Note 11 - Share Option Plans (T
Note 11 - Share Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 201 7 201 6 201 5 Volatility 41.6 % 66.1 % 44.1 % Risk-free interest rate 1.8 % 1.3 % 1.3 % Expected life (in years) 4.55 4.3 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 $ 20.08 $ 11.18 $ 7.40 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Year ended December 31, Year ended December 31, Year ended December 31, 201 7 201 6 201 5 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 474,501 $ 12.67 513,366 $ 9.24 976,062 $ 5.41 Granted 370,025 54.10 81,750 22.66 67,500 21.26 Exercised (172,759 ) 7.88 (109,963 ) 3.79 (517,998 ) 3.53 Forfeited (18,196 ) 37.70 (9,902 ) 16.80 (10,323 ) 13.30 Expired — — (750 ) 3.76 (1,875 ) 2.40 Outstanding, end of period 653,571 36.69 474,501 12.67 513,366 9.24 Options exercisable, end of period 243,771 $ 14.79 332,192 $ 10.08 321,155 $ 6.49 |
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 $ 2.92 - $ 8.92 91,133 $ 6.63 1.6 $ 5,779,404 91,133 $ 6.63 1.6 $ 5,779,404 $ 10.16 - $ 19.95 120,913 16.30 3.5 6,499,346 92,638 15.87 3.3 5,018,978 $ 21.10 - $ 27.53 81,000 23.65 4.2 3,758,393 55,000 24.61 3.8 2,499,313 $ 35.25 - $ 37.35 14,375 35.89 5.4 491,062 5,000 35.25 6.0 174,000 $ 43.15 - $ 47.00 18,500 44.19 6.1 478,400 — — — — $ 53.20 - $ 55.65 327,650 55.41 6.4 4,795,160 — — — — 653,571 $ 36.69 4.9 $ 21,801,765 243,771 $ 14.79 2.8 $ 13,471,695 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, 2017 Year ended December 31, 2016 Year ended December 31, 2015 Network expenses $ 109,988 $ 21,704 $ 28,915 Sales and marketing 571,682 236,063 188,035 Technical operations and development 360,415 98,059 111,239 General and administrative 414,487 443,608 197,836 $ 1,456,572 $ 799,434 $ 526,025 |
Note 14 - Earnings Per Common38
Note 14 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31, 201 7 Year ended December 31, 201 6 Year ended December 31, 201 5 Numerator for basic and diluted earnings per common share: Net income for the year $ 22,326,594 $ 16,067,154 $ 11,373,730 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,537,356 10,524,856 10,968,500 Effect of stock options 256,266 188,739 391,584 Diluted weighted average number of shares outstanding 10,793,622 10,713,595 11,360,084 Basic earnings per common share $ 2.12 $ 1.53 $ 1.04 Diluted earnings per common share $ 2.07 $ 1.50 $ 1.00 |
Note 15 - Commitments and Con39
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 8 $ 1,989,000 $ 34,405,000 $ 36,394,000 201 9 1,569,000 12,121,000 13,690,000 20 20 1,119,000 553,000 1,672,000 202 1 455,000 31,000 486,000 202 2 348,000 28,000 376,000 Thereafter 1,857,000 227,000 2,084,000 $ 7,337,000 $ 47,365,000 $ 54,702,000 |
Note 16 - Segment Reporting (Ta
Note 16 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Network Access Domain Name Service s Consolidated Total s Year ended December 31, 201 7 Net Revenue s $ 88,710,902 $ 240,709,839 $ 329,420,741 Cost of revenue s Cost of revenue s 48,706,531 181,893,101 230,599,632 Network expense s 1,861,319 7,463,135 9,324,454 Depreciation of property and equipmen t 2,202,052 940,346 3,142,398 Amortization of intangible asset s 46,128 1,787,500 1,833,628 Total cost of revenue s 52,816,030 192,084,082 244,900,112 Gross Profi t 35,894,872 48,625,757 84,520,629 Expenses : Sales and marketin g 29,422,984 Technical operations and developmen t 7,257,720 General and administrativ e 13,593,901 Depreciation of property and equipmen t 585,424 Amortization of intangible asset s 6,566,308 Impairment of indefinite life intangible asset s 111,251 Loss (gain) on currency forward contract s (98,227 ) Income from operation s 27,081,268 Other income (expenses), ne t (3,006,500 ) Income before provision for income taxe s $ 24,074,768 Network Access Domain Name Service s Consolidated Total s Year ended December 31, 201 6 Net Revenue s $ 73,778,951 $ 116,039,981 $ 189,818,932 Cost of revenue s Cost of revenue s 37,939,683 82,247,279 120,186,962 Network expense s 1,398,899 3,811,601 5,210,500 Depreciation of property and equipmen t 977,395 342,424 1,319,819 Amortization of intangible asset s 48,017 - 48,017 Total cost of revenue s 40,363,994 86,401,304 126,765,298 Gross Profi t 33,414,957 29,638,677 63,053,634 Expenses : Sales and marketin g 20,754,752 Technical operations and developmen t 4,494,819 General and administrativ e 11,404,793 Depreciation of property and equipmen t 503,864 Amortization of intangible asset s 905,157 Impairment of indefinite life intangible asset s 42,673 Loss (gain) on currency forward contract s (98,977 ) Income from operation s 25,046,553 Other income (expenses), ne t 66,371 Income before provision for income taxe s $ 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 |
Schedule of Operating Income by Revenue Stream [Table Text Block] | Year ended December 31, 201 7 201 6 201 5 Network Access Services: Mobile Services $ 83,885,054 $ 70,127,294 $ 57,685,554 Other Services 4,825,848 3,651,657 3,288,711 Total Network Access Services 88,710,902 73,778,951 60,974,265 Domain Services: Wholesale Domain Services 183,731,385 89,009,546 84,934,519 Value Added Services 18,572,774 9,169,721 9,298,978 Total Wholesale 202,304,159 98,179,267 94,233,497 Retail 31,649,000 14,629,949 12,637,498 Portfolio 6,756,680 3,230,765 3,841,519 Total Domain Services 240,709,839 116,039,981 110,712,514 $ 329,420,741 $ 189,818,932 $ 171,686,779 |
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | Year ended December 31, 201 7 201 6 201 5 Network Access Services: Mobile Services $ 45,335,276 $ 35,914,882 $ 32,615,416 Other Services 3,371,255 2,024,801 1,518,153 Total Network Access Services 48,706,531 37,939,683 34,133,569 Domain Services: Wholesale Domain Services 161,012,532 72,947,730 70,633,267 Value Added Services 2,383,627 1,918,165 2,023,341 Total Wholesale 163,396,159 74,865,895 72,656,608 Retail 17,346,138 6,765,237 5,494,550 Portfolio 1,150,804 616,147 695,958 Total Domain Services 181,893,101 82,247,279 78,847,116 Network Expenses: Network, other costs 9,324,454 5,210,500 5,464,777 Network, depreciation and amortization costs 4,976,026 1,367,836 1,183,508 14,300,480 6,578,336 6,648,285 $ 244,900,112 $ 126,765,298 $ 119,628,970 |
Schedule of Property Plant and Equipment by Geographic Region [Table Text Block] | December 31, 201 7 December 31, 201 6 Canad a $ 1,176,371 $ 1,010,427 United State s 23,417,435 12,398,961 German y 26,492 41,050 $ 24,620,298 $ 13,450,438 |
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | December 31, 201 7 December 31, 201 6 Canad a $ 7,748,940 $ 5,850,596 United State s 37,783,202 633,798 German y 119,770 325,090 $ 45,651,912 $ 6,809,484 |
Schedule of Deferred Tax Asset Net By Geographic Region [Table Text Block] | December 31, 201 7 December 31, 201 6 Canada $ - $ 5,708,725 $ - $ 5,708,725 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for doubtful accounts excluding provision for credit note s Balance at beginning of perio d Charged to (recovered) costs and expense s Write-offs during perio d Balance at end of perio d Year ended December 31, 201 7 $ 164,145 $ 4,264 $ - $ 168,409 Year ended December 31, 201 6 $ 122,095 $ 42,050 $ - $ 164,145 |
Note 18 - Selected Quarterly 41
Note 18 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | December 31 September 30 June 30 March 31 (in thousands, except for per share data) 2017 Total revenues $ 90,621 $ 85,008 $ 84,223 $ 69,568 Gross profit 25,736 20,494 21,347 16,944 Net income 11,199 3,439 5,241 2,446 Earnings per share: Basic $ 1.06 $ 0.33 $ 0.50 $ 0.23 Diluted 1.04 0.32 0.49 0.23 2016 Total revenues $ 48,805 $ 49,064 $ 47,204 $ 44,746 Gross profit 16,423 16,638 15,645 14,348 Net income 2,817 4,741 4,071 4,438 Earnings per share: Basic $ 0.27 $ 0.45 $ 0.39 $ 0.42 Diluted 0.26 0.45 0.38 0.41 |
Note 2 -Significant Accountin42
Note 2 -Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Operating Segments | 2 | ||
Income Tax Expense (Benefit) | $ 1,748,174 | $ 9,045,770 | $ 6,569,227 |
Accounting Standards Update 2016-09 [Member] | |||
Income Tax Expense (Benefit) | $ (2,800,000) |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies - Summary of Property, Plant and Equipment Depreciation Rates (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Leasehold improvements | Over term of lease |
Assets under construction | |
Minimum [Member] | |
Depreciation term (Year) | 4 years |
Maximum [Member] | |
Depreciation term (Year) | 15 years |
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 Accounti44
Note 2 - Significant Accounting Policies - Intangible Asset Useful Life (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Depreciation term (Year) | 4 years |
Maximum [Member] | |
Depreciation term (Year) | 15 years |
Technology-Based Intangible Assets [Member] | |
Depreciation term (Year) | 2 years |
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. 13, 2018 | Feb. 01, 2017 | Jan. 20, 2017 | Feb. 27, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 1,136,390 | $ 3,086,090 | |||||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 1,200,000 | ||||||
Payments to Acquire Businesses, Gross | $ 357,492 | ||||||
Ting Virginia LLC [Member] | Subsequent Event [Member] | |||||||
Repurchase of Redeemable Noncontrolling Interest, Percentage | 10.00% | ||||||
Ting Virginia LLC [Member] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | 70.00% | |||||
Business Combination, Consideration Transferred | $ 2,000,000 | $ 3,500,000 | |||||
Ting Virginia LLC [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 by the Minority Shareholders [Member] | Exercisable on Fourth Anniversary of Business Combination [Member] | |||||||
Business Combination, Consideration to be Transfered Upon Exercise of Options Per Percentage Point | $ 120,000 | ||||||
eNom, Incorporated [Member] | |||||||
Business Combination, Consideration Transferred | $ 77,831,677 | ||||||
Payments to Acquire Businesses, Gross | 83,500,000 | ||||||
Business Combination, Consideration Transferred, Estimated Price Adjusments | $ 5,700,000 | ||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 110,800,000 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 5,100,000 | ||||||
eNom, Incorporated [Member] | General and Administrative Expense [Member] | |||||||
Business Acquisition, Transaction Costs | $ 300,000 | $ 500,000 |
Note 3 - Acquisitions - Prelimi
Note 3 - Acquisitions - Preliminary Purchase Consideration (Details) - USD ($) | Jan. 20, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill | $ 90,053,483 | $ 21,005,143 | |
eNom, Incorporated [Member] | |||
Goodwill | $ 69,048,340 | ||
Cash | 1,594,217 | ||
Prepaid domain registry fees | 70,643,994 | ||
Other assets | 10,170,789 | ||
Total assets | 195,757,340 | ||
Deferred Revenue | (77,798,994) | ||
Deferred Tax Liabilities | (24,223,276) | ||
Other liabilities | (15,903,393) | ||
Total liabilities | (117,925,663) | ||
Consideration Paid | 77,831,677 | ||
eNom, Incorporated [Member] | Brand [Member] | |||
Finite-Lived Intangibles | 12,400,000 | ||
eNom, Incorporated [Member] | Technology-Based Intangible Assets [Member] | |||
Finite-Lived Intangibles | 3,900,000 | ||
eNom, Incorporated [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangibles | $ 28,000,000 |
Note 3 - Acquisitions - Pro For
Note 3 - Acquisitions - Pro Forma Information (Details) - eNom, Incorporated [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net revenues | $ 333,882,963 | $ 338,591,378 |
Net income | $ 21,954,421 | $ 2,175,915 |
Basic earnings per common share (in dollars per share) | $ 2.09 | $ 0.21 |
Diluted earnings per common share (in dollars per share) | $ 2.04 | $ 0.21 |
Note 4 - Property and Equipme48
Note 4 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment, Fully Depreciated Writedown | $ 16,951 | $ 0 | $ 0 |
Note 4 - Property and Equipme49
Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, plant and equipment, gross | $ 37,372,939 | $ 22,495,631 |
Accumulated depreciation | 12,752,641 | 9,045,193 |
Property, plant and equipment, net | 24,620,298 | 13,450,438 |
Computer Equipment [Member] | ||
Property, plant and equipment, gross | 12,312,120 | 8,122,420 |
Computer Software [Member] | ||
Property, plant and equipment, gross | 1,449,480 | 1,277,972 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,308,171 | 1,168,691 |
Vehicles and Tools [Member] | ||
Property, plant and equipment, gross | 1,305,900 | 830,543 |
Fiber Network [Member] | ||
Property, plant and equipment, gross | 14,052,618 | 7,095,971 |
Customer Equipment and Installations [Member] | ||
Property, plant and equipment, gross | 6,774,031 | 3,889,581 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | $ 170,619 | $ 110,453 |
Note 4 - Property and Equipme50
Note 4 - Property and Equipment - Depreciation of Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation of property and equipment | $ 3,727,822 | $ 1,823,683 | $ 1,404,296 |
Note 5 - Goodwill and Other I51
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | Sep. 19, 2017 | Jan. 20, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill | $ 90,053,483 | $ 21,005,143 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 111,251 | 42,673 | $ 206,116 | ||
Finite-lived Intangible Assets Acquired | 319,694 | 6,529,654 | |||
Brand [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | |||||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||
Finite-lived Intangible Assets Acquired | |||||
Technology-Based Intangible Assets [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | |||||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||||
Finite-lived Intangible Assets Acquired | |||||
Customer Relationships [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Finite-lived Intangible Assets Acquired | $ 319,694 | 6,529,654 | |||
Minimum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Minimum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Maximum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||
Maximum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||
Domain Name Services [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 100,000 | $ 42,673 | $ 200,000 | ||
Domain Services Operating Segment [Member] | |||||
Goodwill | $ 88,000,000 | ||||
Goodwill Percentage Related to Operating Segments | 98.00% | ||||
Network Access Services [Member] | |||||
Goodwill | $ 2,100,000 | ||||
Goodwill Percentage Related to Operating Segments | 2.00% | ||||
eNom, Incorporated [Member] | |||||
Goodwill | $ 69,048,340 | ||||
Goodwill, Acquired During Period | $ 69,000,000 | ||||
Finite-lived Intangible Assets Acquired | 44,300,000 | ||||
eNom, Incorporated [Member] | Brand [Member] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Finite-lived Intangible Assets Acquired | 12,400,000 | ||||
eNom, Incorporated [Member] | Technology-Based Intangible Assets [Member] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||||
Finite-lived Intangible Assets Acquired | 3,900,000 | ||||
eNom, Incorporated [Member] | Customer Relationships [Member] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Finite-lived Intangible Assets Acquired | 28,000,000 | ||||
Otono, Networks Inc. [Member] | |||||
Finite-lived Intangible Assets Acquired | 2,622,670 | ||||
Business Acquisition, Working Capital Liabilities Assumed | $ 1,400,000 | ||||
Otono, Networks Inc. [Member] | Brand [Member] | |||||
Finite-lived Intangible Assets Acquired | |||||
Otono, Networks Inc. [Member] | Technology-Based Intangible Assets [Member] | |||||
Finite-lived Intangible Assets Acquired | |||||
Otono, Networks Inc. [Member] | Customer Relationships [Member] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Finite-lived Intangible Assets Acquired | $ 2,600,000 | $ 2,622,670 |
Note 5 - Goodwill and Other I52
Note 5 - Goodwill and Other Intangible Assets - Acquired Intangible Assets by Major Class (Details) - USD ($) | Sep. 19, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Balances | $ 19,973,793 | $ 14,469,677 | ||
Finite-lived Intangible Assets Acquired | 319,694 | 6,529,654 | ||
Additions to/(disposals from) domain portfolio, net | (290,793) | (29,691) | $ (24,066) | |
Impairment of indefinite life intangible assets | (111,251) | (42,673) | (206,116) | |
Amortization expense | (8,399,936) | (953,174) | (262,726) | |
Reclassifications | ||||
Balances | 58,414,178 | 19,973,793 | 14,469,677 | |
eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | 44,300,000 | |||
Otono, Networks Inc. [Member] | ||||
Finite-lived Intangible Assets Acquired | 2,622,670 | |||
Brand [Member] | ||||
Balances | 5,210 | 79,670 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (1,656,040) | (74,460) | ||
Reclassifications | 43,620 | |||
Balances | 10,792,790 | 5,210 | 79,670 | |
Brand [Member] | eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | 12,400,000 | |||
Brand [Member] | Otono, Networks Inc. [Member] | ||||
Finite-lived Intangible Assets Acquired | ||||
Customer Relationships [Member] | ||||
Balances | 6,198,811 | 499,854 | ||
Finite-lived Intangible Assets Acquired | 319,694 | 6,529,654 | ||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (4,910,268) | (830,697) | ||
Reclassifications | (45,509) | |||
Balances | 32,185,398 | 6,198,811 | 499,854 | |
Customer Relationships [Member] | eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | 28,000,000 | |||
Customer Relationships [Member] | Otono, Networks Inc. [Member] | ||||
Finite-lived Intangible Assets Acquired | $ 2,600,000 | 2,622,670 | ||
Technology-Based Intangible Assets [Member] | ||||
Balances | ||||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (1,787,500) | |||
Reclassifications | ||||
Balances | 2,112,500 | |||
Technology-Based Intangible Assets [Member] | eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | 3,900,000 | |||
Technology-Based Intangible Assets [Member] | Otono, Networks Inc. [Member] | ||||
Finite-lived Intangible Assets Acquired | ||||
Network Rights [Member] | ||||
Balances | 605,463 | 653,480 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | ||||
Impairment of indefinite life intangible assets | ||||
Amortization expense | (46,128) | (48,017) | ||
Reclassifications | 1,889 | |||
Balances | 561,224 | 605,463 | 653,480 | |
Network Rights [Member] | eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | ||||
Network Rights [Member] | Otono, Networks Inc. [Member] | ||||
Finite-lived Intangible Assets Acquired | ||||
Surname Domain Names [Member] | ||||
Balances | 11,295,221 | 11,339,355 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | (38,291) | (6,166) | ||
Impairment of indefinite life intangible assets | (37,968) | |||
Amortization expense | ||||
Reclassifications | ||||
Balances | 11,256,930 | 11,295,221 | 11,339,355 | |
Surname Domain Names [Member] | eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | ||||
Acquisition , Indefinite-lived | ||||
Direct Navigation Domain Names [Member] | ||||
Balances | 1,869,088 | 1,897,318 | ||
Finite-lived Intangible Assets Acquired | ||||
Additions to/(disposals from) domain portfolio, net | (252,501) | (23,525) | ||
Impairment of indefinite life intangible assets | (111,251) | (4,705) | ||
Amortization expense | ||||
Reclassifications | ||||
Balances | 1,505,336 | $ 1,869,088 | $ 1,897,318 | |
Direct Navigation Domain Names [Member] | eNom, Incorporated [Member] | ||||
Finite-lived Intangible Assets Acquired | ||||
Acquisition , Indefinite-lived |
Note 5 - Goodwill and Other I53
Note 5 - Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
2,018 | $ 9,246,620 | |
2,019 | 7,335,572 | |
2,020 | 7,173,072 | |
2,021 | 7,173,072 | |
2,022 | 7,173,072 | |
Thereafter | 7,550,504 | |
Total | $ 45,651,912 | $ 6,809,484 |
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, 2017 | Dec. 31, 2016 |
Derivative instrument asset | ||
Derivative instrument liability | $ 172,888 | |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative instrument asset | ||
Derivative instrument liability | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivative instrument asset | ||
Derivative instrument liability | 172,888 | |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative, Notional Amount | $ 26.6 | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 0.1 | (0.2) | $ (0.5) |
Designated as Hedging Instrument [Member] | |||
Derivative, Notional Amount | 24 | ||
Not Designated as Hedging Instrument [Member] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 0.3 | $ (0.1) |
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, 2017 | Dec. 31, 2016 |
Foreign currency forward contracts | $ 172,888 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Foreign currency forward contracts | 155,560 | |
Not Designated as Hedging Instrument [Member] | ||
Foreign currency forward contracts | $ 17,328 |
Note 7 - Derivative Instrumen57
Note 7 - Derivative Instruments and Hedging Activities - Movement in AOCI Balance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI balance, Gains and losses on cash flow hedges | $ 155,560 | $ (1,721,683) | $ (946,676) |
Other comprehensive income (loss) before reclassifications, Gains and losses on cash flow hedges | 863,425 | 871,925 | (3,171,740) |
Amount reclassified from accumulated other comprehensive income, Gains and losses on cash flow hedges | (1,018,985) | 1,005,318 | 2,396,733 |
Other comprehensive income (loss), Gains and losses on cash flow hedges | (155,560) | 1,877,243 | (775,007) |
AOCI balance, Gains and losses on cash flow hedges | 155,560 | (1,721,683) | |
AOCI balance, Tax impact | (56,406) | 612,231 | 324,235 |
Other comprehensive income (loss) before reclassifications, Tax impact | (313,078) | (304,109) | 1,140,275 |
Amount reclassified from accumulated other comprehensive income, Tax impact | 369,484 | (364,528) | (852,279) |
Other comprehensive income (loss), Tax impact | 56,406 | (668,637) | 287,996 |
AOCI balance, Tax impact | (56,406) | 612,231 | |
AOCI balance | 99,154 | (1,109,452) | (622,441) |
Other comprehensive income (loss) before reclassifications | 550,347 | 567,816 | (2,031,465) |
Amount reclassified from accumulated other comprehensive income | (649,501) | 640,790 | 1,544,454 |
Other comprehensive income (loss) | (99,154) | 1,208,606 | (487,011) |
AOCI balance | $ 99,154 | $ (1,109,452) |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amount of Gain or (Loss) Recognized in OCI, Net of Tax, on Derivative (Effective Portion) | $ (99,154) | $ 1,208,606 | $ (487,011) |
Operating Expense [Member] | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 878,519 | (736,616) | (1,870,818) |
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (47,242) | (294,113) | |
Cost of Sales [Member] | |||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 140,466 | $ (221,460) | $ (525,916) |
Note 8 - Loan Payable (Details
Note 8 - Loan Payable (Details Textual) CAD in Millions | Jan. 20, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017CAD | Dec. 05, 2017USD ($) | Jan. 19, 2017USD ($) |
Payments of Financing Costs | $ 600,000 | $ 620,217 | $ 513,665 | ||||||||
Foreign Exchange Risk [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500,000 | ||||||||||
Line of Credit Facility Covenant Period | 1 year 180 days | ||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140,000,000 | ||||||||||
Debt Instrument, Term | 4 years | ||||||||||
Maximum Total Funded Debt to EBITDA Ratio | 2.25 | 3 | 3 | ||||||||
Repayment Obligation, Percentage of Excess Cash Flow | 50.00% | ||||||||||
Minimum Fixed Charge Coverage Ratio | 1.2 | 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 | 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 | |||||||||
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 | $ 35,500,000 | $ 40,000,000 | |||||||||
Line of Credit Facility, Increase in Maximum Borrowing Capacity | $ 502,500 | ||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility D [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 84,500,000 | ||||||||||
Long-term Line of Credit | 84,500,000 | ||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Revolving Credit Facility A [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ||||||||||
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 | ||||||||||
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 | ||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Credit Card Facilities [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||||||||||
Bank of Nova [member] | Corporate Credit Card Program [Member] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | CAD 0.5 |
Note 8 - Loan Payable - Schedul
Note 8 - Loan Payable - Schedule of Standby Fees Based on Total Funded Debt to EBITDA Ratio (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Debt to EBITDA is Less Than 1 [Member] | |
Standby fees | 0.40% |
Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | |
Standby fees | 0.45% |
Debt to EBITDA is Greater Than or Equal to 2 and Less Than 2.25 [Member] | |
Standby fees | 0.55% |
Debt to EBITDA is Greater Than or Equal to 2.25 [Member] | |
Standby fees | 0.65% |
Bank of Montreal and Royal Bank of Canada [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt to EBITDA is Less Than 1 [Member] | |
Basis Spread on Variable Rate | 2.00% |
Bank of Montreal and Royal Bank of Canada [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | |
Basis Spread on Variable Rate | 2.25% |
Bank of Montreal and Royal Bank of Canada [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt to EBITDA is Greater Than or Equal to 2 and Less Than 2.25 [Member] | |
Basis Spread on Variable Rate | 2.75% |
Bank of Montreal and Royal Bank of Canada [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt to EBITDA is Greater Than or Equal to 2.25 [Member] | |
Basis Spread on Variable Rate | 3.25% |
Bank of Montreal and Royal Bank of Canada [Member] | Base Rate [Member] | Debt to EBITDA is Less Than 1 [Member] | |
Basis Spread on Variable Rate | 0.75% |
Bank of Montreal and Royal Bank of Canada [Member] | Base Rate [Member] | Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | |
Basis Spread on Variable Rate | 1.00% |
Bank of Montreal and Royal Bank of Canada [Member] | Base Rate [Member] | Debt to EBITDA is Greater Than or Equal to 2 and Less Than 2.25 [Member] | |
Basis Spread on Variable Rate | 1.50% |
Bank of Montreal and Royal Bank of Canada [Member] | Base Rate [Member] | Debt to EBITDA is Greater Than or Equal to 2.25 [Member] | |
Basis Spread on Variable Rate | 2.00% |
Note 8 - Loan Payable - Sched61
Note 8 - Loan Payable - Schedule of Loans Payable (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Loans payable | $ 76,924,027 | $ 10,248,808 | |
Less: unamortized debt discount and issuance costs | (829,611) | (482,498) | |
Less: loan payable, current portion | 18,289,853 | 2,233,110 | |
Loan payable, long-term portion | $ 58,634,174 | 58,634,174 | 8,015,698 |
Revolving Reducing Term Facility B [Member] | |||
Loans payable | 6,000,000 | ||
Non-revolving Facility C [Member] | |||
Loans payable | 5,930,338 | 4,731,306 | |
Non-revolving Facility D [Member] | |||
Loans payable | $ 71,823,300 |
Note 8 - Loan Payable - Princip
Note 8 - Loan Payable - Principal Repayments (Details) | Dec. 31, 2017USD ($) |
2,018 | $ 18,289,853 |
2,019 | 18,289,853 |
2,020 | 18,103,004 |
2,021 | 17,542,457 |
2,022 | 4,867,757 |
Thereafter | 660,714 |
$ 77,753,638 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |||
Effective Income Tax Rate Reconciliation, Changes in Tax Laws Included in Tax Act, Amount | $ (5,800,000) | |||
Effective Income Tax Rate Reconciliation, Effect of Decrease in Federal Tax Rate on Deferred Taxes, Amount | (10,036,080) | |||
Effective Income Tax Rate Reconciliation, Change in Valuation Allowance on Pre-2017 Foreign Tax Credits, Amount | 1,275,937 | |||
Effective Income Tax Rate Reconciliation, Non-creditable 2017 Foreign Tax, Amount | 2,903,400 | |||
Unrecognized Tax Benefits | 15,000 | 117,000 | $ 117,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | $ 0 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 100,000 | |||
Maximum [Member] | ||||
Provisional Amount Related to One Time Transition Tax on Repatriation of Foreign Earnings | $ 100,000 | |||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income for the year before provision for income taxes | $ 24,074,768 | $ 25,112,924 | $ 17,942,957 |
Computed tax expense | 8,185,420 | 8,538,245 | 6,100,605 |
State income taxes | 656,603 | 530,803 | 265,489 |
Effect of the decrease in Federal tax rate on deferred taxes | (10,036,080) | ||
Valuation allowance on pre-2017 Foreign Tax Credits | 1,275,937 | ||
Non-creditable 2017 Foreign Tax | 2,903,400 | ||
Excess tax benefits on share-based compensation expense | (2,796,171) | ||
Permanent differences | 1,635,611 | 290,327 | 278,959 |
Others | (76,546) | (313,605) | (75,826) |
Provision for income taxes | $ 1,748,174 | $ 9,045,770 | $ 6,569,227 |
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, 2017 | Dec. 31, 2016 |
Deferred revenue | $ 7,573,276 | $ 5,482,080 |
Foreign tax credits | 1,275,937 | 1,275,937 |
Amortization | (1,936,615) | (2,184,944) |
Net operating losses | 2,544,862 | |
Accruals, including foreign exchange and other | 517,493 | 1,135,652 |
Sub-total Deferred tax assets | 9,974,953 | 5,708,725 |
Valuation allowance | (1,275,937) | |
Total deferred tax assets | 0 | 5,708,725 |
Prepaid registry fees and expenses | (18,051,222) | |
Limited life intangible assets | (7,371,264) | (120,232) |
Indefinite life intangible assets | (3,110,208) | (4,706,960) |
Total deferred tax liability | (28,532,694) | (4,827,192) |
Net deferred tax liability | $ (19,833,678) | |
Net deferred tax asset | $ 881,533 |
Note 9 - Income Taxes - Unrecog
Note 9 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance | $ 117,000 | $ 117,000 |
Change in uncertain tax benefits | (102,000) | |
Balance | $ 15,000 | $ 117,000 |
Note 10 - Common Shares (Detail
Note 10 - Common Shares (Details Textual) - USD ($) | Jan. 07, 2015 | Dec. 31, 2015 | Feb. 14, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 01, 2017 | Feb. 09, 2016 | Feb. 11, 2015 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 | |||||||
Common Stock, Shares, Outstanding | 10,583,879 | 10,461,574 | |||||||
Stock Repurchased and Retired During Period, Shares | 308,416 | 1,062,456 | |||||||
Stock Repurchased and Retired During Period, Value | $ 7,180,257 | $ 23,616,286 | |||||||
Stock Buyback Program 2018 [Member] | Subsequent Event [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000,000 | ||||||||
Stock Buyback Program 2017 [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000,000 | ||||||||
Stock Buyback Program 2017 [Member] | Subsequent Event [Member] | |||||||||
Stock Repurchased and Retired During Period, Shares | 0 | ||||||||
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 Shares - Share
Note 10 - Common Shares - Share Repurchases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Repurchased and Retired During Period, Shares | 308,416 | 1,062,456 | |
Stock Repurchased and Retired During Period, Value | $ 7,180,257 | $ 23,616,286 | |
Average price per share (in dollars per share) | $ 23.28 | $ 22.23 | |
Number of shares (in shares) | 50,454 | 25,572 | 99,675 |
Aggregate market value of shares (in thousands) | $ 2,602,000 | $ 634,000 | $ 2,335,000 |
Average price per share (in dollars per share) | $ 51.58 | $ 24.80 | $ 23.42 |
Note 11 - Share Option Plans (D
Note 11 - Share Option Plans (Details Textual) - USD ($) | Oct. 08, 2010 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 1996 | Nov. 22, 2006 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 7,600,000 | $ 2,400,000 | $ 9,600,000 | ||||
Proceeds from Stock Options Exercised | 221,587 | 146,390 | 803,136 | ||||
Allocated Share-based Compensation Expense | 1,456,572 | $ 799,434 | $ 526,025 | ||||
Employee Stock Option [Member] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 6,500,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||||
The 1996 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,787,500 | ||||||
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Volatility | 41.60% | 66.10% | 44.10% |
Risk-free interest rate | 1.80% | 1.30% | 1.30% |
Expected life (in years) (Year) | 4 years 200 days | 4 years 109 days | 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) | $ 20.08 | $ 11.18 | $ 7.40 |
Note 11 - Share Option Plans -
Note 11 - Share Option Plans - Stock Option Transactions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Outstanding, Number of shares (in shares) | 474,501 | 513,366 | 976,062 |
Granted, Number of shares (in shares) | 370,025 | 81,750 | 67,500 |
Exercised, Number of shares (in shares) | (172,759) | (109,963) | (517,998) |
Forfeited, Number of shares (in shares) | (18,196) | (9,902) | (10,323) |
Expired, Number of shares (in shares) | (750) | (1,875) | |
Outstanding, Number of shares (in shares) | 653,571 | 474,501 | 513,366 |
Options exercisable, Number of shares (in shares) | 243,771 | 332,192 | 321,155 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 12.67 | $ 9.24 | $ 5.41 |
Granted, Weighted average exercise price per share (in dollars per share) | 54.10 | 22.66 | 21.26 |
Exercised, Weighted average exercise price per share (in dollars per share) | 7.88 | 3.79 | 3.53 |
Forfeited, Weighted average exercise price per share (in dollars per share) | 37.70 | 16.80 | 13.30 |
Expired, Weighted average exercise price per share (in dollars per share) | 3.76 | 2.40 | |
Outstanding, Weighted average exercise price per share (in dollars per share) | 36.69 | 12.67 | 9.24 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 14.79 | $ 10.08 | $ 6.49 |
Note 11 - Share Option Plans 72
Note 11 - Share Option Plans - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number outstanding (in shares) | shares | 653,571 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 36.69 |
Weighted average remaining contractual life, options outstanding (Year) | 4 years 328 days |
Aggregate intrinsic value, options outstanding | $ | $ 21,801,765 |
Number exercisable (in shares) | shares | 243,771 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 14.79 |
Weighted average remaining contractual life, options exercisable (Year) | 2 years 292 days |
Aggregate intrinsic value, options exercisable | $ | $ 13,471,695 |
Exercise Price Range 01 [Member] | |
Exercise price - lower (in dollars per share) | $ 2.92 |
Exercise price - higher (in dollars per share) | $ 8.92 |
Number outstanding (in shares) | shares | 91,133 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 6.63 |
Weighted average remaining contractual life, options outstanding (Year) | 1 year 219 days |
Aggregate intrinsic value, options outstanding | $ | $ 5,779,404 |
Number exercisable (in shares) | shares | 91,133 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 6.63 |
Weighted average remaining contractual life, options exercisable (Year) | 1 year 219 days |
Aggregate intrinsic value, options exercisable | $ | $ 5,779,404 |
Exercise Price Range 02 [Member] | |
Exercise price - lower (in dollars per share) | $ 10.16 |
Exercise price - higher (in dollars per share) | $ 19.95 |
Number outstanding (in shares) | shares | 120,913 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 16.30 |
Weighted average remaining contractual life, options outstanding (Year) | 3 years 182 days |
Aggregate intrinsic value, options outstanding | $ | $ 6,499,346 |
Number exercisable (in shares) | shares | 92,638 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 15.87 |
Weighted average remaining contractual life, options exercisable (Year) | 3 years 109 days |
Aggregate intrinsic value, options exercisable | $ | $ 5,018,978 |
Exercise Price Range 03 [Member] | |
Exercise price - lower (in dollars per share) | $ 21.10 |
Exercise price - higher (in dollars per share) | $ 27.53 |
Number outstanding (in shares) | shares | 81,000 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 23.65 |
Weighted average remaining contractual life, options outstanding (Year) | 4 years 73 days |
Aggregate intrinsic value, options outstanding | $ | $ 3,758,393 |
Number exercisable (in shares) | shares | 55,000 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 24.61 |
Weighted average remaining contractual life, options exercisable (Year) | 3 years 292 days |
Aggregate intrinsic value, options exercisable | $ | $ 2,499,313 |
Exercise Price Range 04 [Member] | |
Exercise price - lower (in dollars per share) | $ 35.25 |
Exercise price - higher (in dollars per share) | $ 37.35 |
Number outstanding (in shares) | shares | 14,375 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 35.89 |
Weighted average remaining contractual life, options outstanding (Year) | 5 years 146 days |
Aggregate intrinsic value, options outstanding | $ | $ 491,062 |
Number exercisable (in shares) | shares | 5,000 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 35.25 |
Weighted average remaining contractual life, options exercisable (Year) | 6 years |
Aggregate intrinsic value, options exercisable | $ | $ 174,000 |
Exercise Price Range 05 [Member] | |
Exercise price - lower (in dollars per share) | $ 43.15 |
Exercise price - higher (in dollars per share) | $ 47 |
Number outstanding (in shares) | shares | 18,500 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 44.19 |
Weighted average remaining contractual life, options outstanding (Year) | 6 years 36 days |
Aggregate intrinsic value, options outstanding | $ | $ 478,400 |
Number exercisable (in shares) | shares | |
Weighted average exercise price per share, options exercisable (in dollars per share) | |
Weighted average remaining contractual life, options exercisable (Year) | |
Aggregate intrinsic value, options exercisable | $ | |
Exercise Price Range 06 [Member] | |
Exercise price - lower (in dollars per share) | $ 53.20 |
Exercise price - higher (in dollars per share) | $ 55.65 |
Number outstanding (in shares) | shares | 327,650 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 55.41 |
Weighted average remaining contractual life, options outstanding (Year) | 6 years 146 days |
Aggregate intrinsic value, options outstanding | $ | $ 4,795,160 |
Number exercisable (in shares) | shares | |
Weighted average exercise price per share, options exercisable (in dollars per share) | |
Weighted average remaining contractual life, options exercisable (Year) | |
Aggregate intrinsic value, options exercisable | $ |
Note 11 - Stock Option Plans 73
Note 11 - Stock Option Plans - Stock-based Compensation Allocation to Operating Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allocated share based compensation expense | $ 1,456,572 | $ 799,434 | $ 526,025 |
Network Expenses [Member] | |||
Allocated share based compensation expense | 109,988 | 21,704 | 28,915 |
Sales and Marketing Expense [Member] | |||
Allocated share based compensation expense | 571,682 | 236,063 | 188,035 |
Technical Operations and Development [Member] | |||
Allocated share based compensation expense | 360,415 | 98,059 | 111,239 |
General and Administrative Expense [Member] | |||
Allocated share based compensation expense | $ 414,487 | $ 443,608 | $ 197,836 |
Note 12 - Foreign Exchange (Det
Note 12 - Foreign Exchange (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
General and Administrative Expense [Member] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ 0.7 | $ (0.1) | $ (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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonrecurring Gain | $ 1.5 | $ 0.5 | $ 0.5 | $ 0.1 |
Other Non-recurring Gain, Term of Recognition | 3 years |
Note 14 - Earnings Per Common76
Note 14 - Earnings Per Common Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 341,650 | 76,750 | 75,050 |
Note 14 - Earnings Per Common77
Note 14 - Earnings Per Common Share - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator for basic and diluted earnings per common share: | |||||||||||
Net income for the year | $ 11,199 | $ 3,439 | $ 5,241 | $ 2,446 | $ 2,817 | $ 4,741 | $ 4,071 | $ 4,438 | $ 22,326,594 | $ 16,067,154 | $ 11,373,730 |
Basic weighted average number of common shares outstanding (in shares) | 10,537,356 | 10,524,856 | 10,968,500 | ||||||||
Effect of stock options (in shares) | 256,266 | 188,739 | 391,584 | ||||||||
Diluted weighted average number of shares outstanding (in shares) | 10,793,622 | 10,713,595 | 11,360,084 | ||||||||
Basic earnings per common share (in dollars per share) | $ 1.06 | $ 0.33 | $ 0.50 | $ 0.23 | $ 0.27 | $ 0.45 | $ 0.39 | $ 0.42 | $ 2.12 | $ 1.53 | $ 1.04 |
Diluted earnings per common share (in dollars per share) | $ 1.04 | $ 0.32 | $ 0.49 | $ 0.23 | $ 0.26 | $ 0.45 | $ 0.38 | $ 0.41 | $ 2.07 | $ 1.50 | $ 1 |
Note 15 - Commitments and Con78
Note 15 - Commitments and Contingencies (Details Textual) | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 16, 2018 | Jan. 05, 2018 | Feb. 09, 2015USD ($) | |
Contractual Obligation, Term | 10 years | |||||
Operating Leases, Rent Expense | $ 1,900,000 | $ 1,200,000 | $ 1,000,000 | |||
Long-term Debt | 77,753,638 | |||||
Litigation Case with Namecheap [Member] | Subsequent Event [Member] | ||||||
Domain Name Transfer to Counter Party to Settle a Litigation Case | 2,650,000 | 2,650,000 | ||||
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 | $ 7,500,000 | |||||
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 Con79
Note 15 - Commitments and Contingencies - Summary of General Office Facilities and Equipment (Details) | Dec. 31, 2017USD ($) |
Contractual lease obligations, 2018 | $ 1,989,000 |
Purchase obligations, 2018 | 34,405,000 |
Total obligations, 2018 | 36,394,000 |
Contractual lease obligations, 2019 | 1,569,000 |
Purchase obligations, 2019 | 12,121,000 |
Total obligations, 2019 | 13,690,000 |
Contractual lease obligations, 2020 | 1,119,000 |
Purchase obligations, 2020 | 553,000 |
Total obligations, 2020 | 1,672,000 |
Contractual lease obligations, 2021 | 455,000 |
Purchase obligations, 2021 | 31,000 |
Total obligations, 2021 | 486,000 |
Contractual lease obligations, 2022 | 348,000 |
Purchase obligations, 2022 | 28,000 |
Total obligations, 2022 | 376,000 |
Contractual lease obligations, thereafter | 1,857,000 |
Purchase obligations, thereafter | 227,000 |
Total obligations, thereafter | 2,084,000 |
Contractual lease obligations, total | 7,337,000 |
Purchase obligations, total | 47,365,000 |
Total obligations | $ 54,702,000 |
Note 16 - Segment Reporting (De
Note 16 - Segment Reporting (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Number of Operating Segments | 2 |
Revenue from Related Parties | $ 4.9 |
Note 16 - Segment Reporting - I
Note 16 - Segment Reporting - Information by Reportable Segments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Revenues | $ 329,420,741 | $ 189,818,932 | $ 171,686,779 | ||||||||
Cost of revenues | 230,599,632 | 120,186,962 | 112,980,685 | ||||||||
Network expenses | 9,324,454 | 5,210,500 | 5,464,777 | ||||||||
Depreciation of property and equipment | 3,142,398 | 1,319,819 | 1,144,988 | ||||||||
Amortization of intangible assets | 1,833,628 | 48,017 | 38,520 | ||||||||
Total cost of revenues | 244,900,112 | 126,765,298 | 119,628,970 | ||||||||
Gross Profit | $ 25,736 | $ 20,494 | $ 21,347 | $ 16,944 | $ 16,423 | $ 16,638 | $ 15,645 | $ 14,348 | 84,520,629 | 63,053,634 | 52,057,809 |
Sales and marketing | 29,422,984 | 20,754,752 | 17,394,376 | ||||||||
Technical operations and development | 7,257,720 | 4,494,819 | 4,502,845 | ||||||||
General and administrative | 13,593,901 | 11,404,793 | 10,661,949 | ||||||||
Depreciation of property and equipment | 585,424 | 503,864 | 259,307 | ||||||||
Amortization of intangible assets | 6,566,308 | 905,157 | 224,206 | ||||||||
Impairment of indefinite life intangible asset | 111,251 | 42,673 | 206,116 | ||||||||
Loss (gain) on currency forward contracts | (98,227) | (98,977) | 792,900 | ||||||||
Income from operations | 27,081,268 | 25,046,553 | 18,016,110 | ||||||||
Other income (expenses), net | (3,006,500) | 66,371 | (73,153) | ||||||||
Income before provision for income taxes | 24,074,768 | 25,112,924 | 17,942,957 | ||||||||
Network Access Services [Member] | |||||||||||
Net Revenues | 88,710,902 | 73,778,951 | 60,974,265 | ||||||||
Cost of revenues | 48,706,531 | 37,939,683 | 34,133,569 | ||||||||
Network expenses | 1,861,319 | 1,398,899 | 698,960 | ||||||||
Depreciation of property and equipment | 2,202,052 | 977,395 | 447,644 | ||||||||
Amortization of intangible assets | 46,128 | 48,017 | 38,520 | ||||||||
Total cost of revenues | 52,816,030 | 40,363,994 | 35,318,693 | ||||||||
Gross Profit | 35,894,872 | 33,414,957 | 25,655,572 | ||||||||
Domain Name Services [Member] | |||||||||||
Net Revenues | 240,709,839 | 116,039,981 | 110,712,514 | ||||||||
Cost of revenues | 181,893,101 | 82,247,279 | 78,847,116 | ||||||||
Network expenses | 7,463,135 | 3,811,601 | 4,765,817 | ||||||||
Depreciation of property and equipment | 940,346 | 342,424 | 697,344 | ||||||||
Amortization of intangible assets | 1,787,500 | ||||||||||
Total cost of revenues | 192,084,082 | 86,401,304 | 84,310,277 | ||||||||
Gross Profit | $ 48,625,757 | 29,638,677 | $ 26,402,237 | ||||||||
Income before provision for income taxes |
Note 16 - Segment Reporting - S
Note 16 - Segment Reporting - Summary of Revenue and Cost of Revenue (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues | $ 90,621 | $ 85,008 | $ 84,223 | $ 69,568 | $ 48,805 | $ 49,064 | $ 47,204 | $ 44,746 | $ 329,420,741 | $ 189,818,932 | $ 171,686,779 |
Network Access Services [Member] | |||||||||||
Net revenues | 88,710,902 | 73,778,951 | 60,974,265 | ||||||||
Network Access Services [Member] | Mobile Services [Member] | |||||||||||
Net revenues | 83,885,054 | 70,127,294 | 57,685,554 | ||||||||
Network Access Services [Member] | Other Services [Member] | |||||||||||
Net revenues | 4,825,848 | 3,651,657 | 3,288,711 | ||||||||
Domain Name Services [Member] | |||||||||||
Net revenues | 240,709,839 | 116,039,981 | 110,712,514 | ||||||||
Domain Name Services [Member] | Wholesale [Member] | |||||||||||
Net revenues | 202,304,159 | 98,179,267 | 94,233,497 | ||||||||
Domain Name Services [Member] | Wholesale [Member] | Domain Services [Member] | |||||||||||
Net revenues | 183,731,385 | 89,009,546 | 84,934,519 | ||||||||
Domain Name Services [Member] | Wholesale [Member] | Value Added Services [Member] | |||||||||||
Net revenues | 18,572,774 | 9,169,721 | 9,298,978 | ||||||||
Domain Name Services [Member] | Retail Services [Member] | |||||||||||
Net revenues | 31,649,000 | 14,629,949 | 12,637,498 | ||||||||
Domain Name Services [Member] | Portfolio [Member] | |||||||||||
Net revenues | $ 6,756,680 | $ 3,230,765 | $ 3,841,519 |
Note 16 - Segment Reporting -83
Note 16 - Segment Reporting - Summary of Cost of Revenues From Each Significant Revenue Stream (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost of revenues | $ 230,599,632 | $ 120,186,962 | $ 112,980,685 |
Network, other costs | 9,324,454 | 5,210,500 | 5,464,777 |
Amortization of intangible assets | 1,833,628 | 48,017 | 38,520 |
Total cost of revenues | 244,900,112 | 126,765,298 | 119,628,970 |
Network Expenses [Member] | |||
Network, other costs | 9,324,454 | 5,210,500 | 5,464,777 |
Amortization of intangible assets | 4,976,026 | 1,367,836 | 1,183,508 |
Network Expenses | 14,300,480 | 6,578,336 | 6,648,285 |
Network Access Services [Member] | |||
Cost of revenues | 48,706,531 | 37,939,683 | 34,133,569 |
Network, other costs | 1,861,319 | 1,398,899 | 698,960 |
Amortization of intangible assets | 46,128 | 48,017 | 38,520 |
Total cost of revenues | 52,816,030 | 40,363,994 | 35,318,693 |
Network Access Services [Member] | Mobile Services [Member] | |||
Cost of revenues | 45,335,276 | 35,914,882 | 32,615,416 |
Network Access Services [Member] | Other Services [Member] | |||
Cost of revenues | 3,371,255 | 2,024,801 | 1,518,153 |
Domain Name Services [Member] | |||
Cost of revenues | 181,893,101 | 82,247,279 | 78,847,116 |
Network, other costs | 7,463,135 | 3,811,601 | 4,765,817 |
Amortization of intangible assets | 1,787,500 | ||
Total cost of revenues | 192,084,082 | 86,401,304 | 84,310,277 |
Domain Name Services [Member] | Wholesale [Member] | |||
Cost of revenues | 163,396,159 | 74,865,895 | 72,656,608 |
Domain Name Services [Member] | Retail Services [Member] | |||
Cost of revenues | 17,346,138 | 6,765,237 | 5,494,550 |
Domain Name Services [Member] | Portfolio [Member] | |||
Cost of revenues | 1,150,804 | 616,147 | 695,958 |
Domain Name Services [Member] | Domain Services [Member] | Wholesale [Member] | |||
Cost of revenues | 161,012,532 | 72,947,730 | 70,633,267 |
Domain Name Services [Member] | Value Added Services [Member] | Wholesale [Member] | |||
Cost of revenues | $ 2,383,627 | $ 1,918,165 | $ 2,023,341 |
Note 16 - Segment Reporting -84
Note 16 - Segment Reporting - Summary of Property and Equipment by Geographic Region (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property and equipment | $ 24,620,298 | $ 13,450,438 |
CANADA | ||
Property and equipment | 1,176,371 | 1,010,427 |
UNITED STATES | ||
Property and equipment | 23,417,435 | 12,398,961 |
GERMANY | ||
Property and equipment | $ 26,492 | $ 41,050 |
Note 16 - Segment Reporting -85
Note 16 - Segment Reporting - Summary of Amortizable Intangible Assets by Geographic Region (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Amortizable intangible assets | $ 45,651,912 | $ 6,809,484 |
CANADA | ||
Amortizable intangible assets | 7,748,940 | 5,850,596 |
UNITED STATES | ||
Amortizable intangible assets | 37,783,202 | 633,798 |
GERMANY | ||
Amortizable intangible assets | $ 119,770 | $ 325,090 |
Note 16 - Segment Reporting -86
Note 16 - Segment Reporting - Summary of Deferred Tax Asset, Net of Valuation Allowance (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | $ 0 | $ 5,708,725 |
CANADA | ||
Deferred tax assets | $ 0 | $ 5,708,725 |
Note 16 - Segment Reporting -87
Note 16 - Segment Reporting - Summary of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance at beginning of period | $ 164,145 | $ 122,095 |
Charged to (recovered) costs and expenses | 4,264 | 42,050 |
Balance at end of period | $ 168,409 | $ 164,145 |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) $ in Millions | Feb. 13, 2018USD ($) | Mar. 31, 2018USD ($) | Feb. 14, 2018USD ($) | Jan. 24, 2018USD ($) | Jan. 16, 2018 | Jan. 05, 2018 |
Subsequent Event [Member] | Ting Virginia LLC [Member] | ||||||
Repurchase of Redeemable Noncontrolling Interest, Percentage | 10.00% | |||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 1.2 | |||||
Subsequent Event [Member] | Stock Buyback Program 2018 [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 40 | |||||
Subsequent Event [Member] | Second Interim Amendment [Member] | ||||||
Credit Agreement, Maximum Aggregate Amount Held in Account With Certain Bank | $ 3 | |||||
Litigation Case with Namecheap [Member] | Scenario, Forecast [Member] | ||||||
Litigation Settlement, Revenue Recognized, Previously Deferred Revenue and Deferred prepaid Registry Fees | $ 14.6 | |||||
Litigation Settlement, Cost of Revenues Recognized, Previously Deferred Revenue and Deferred prepaid Registry Fees | $ 14.5 | |||||
Litigation Case with Namecheap [Member] | Subsequent Event [Member] | ||||||
Domain Name Transfer to Counter Party to Settle a Litigation Case | 2,650,000 | 2,650,000 |
Note 18 - Selected Quarterly 89
Note 18 - Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues | $ 90,621 | $ 85,008 | $ 84,223 | $ 69,568 | $ 48,805 | $ 49,064 | $ 47,204 | $ 44,746 | $ 329,420,741 | $ 189,818,932 | $ 171,686,779 |
Gross Profit | 25,736 | 20,494 | 21,347 | 16,944 | 16,423 | 16,638 | 15,645 | 14,348 | 84,520,629 | 63,053,634 | 52,057,809 |
Net income | $ 11,199 | $ 3,439 | $ 5,241 | $ 2,446 | $ 2,817 | $ 4,741 | $ 4,071 | $ 4,438 | $ 22,326,594 | $ 16,067,154 | $ 11,373,730 |
Basic (in dollars per share) | $ 1.06 | $ 0.33 | $ 0.50 | $ 0.23 | $ 0.27 | $ 0.45 | $ 0.39 | $ 0.42 | $ 2.12 | $ 1.53 | $ 1.04 |
Diluted (in dollars per share) | $ 1.04 | $ 0.32 | $ 0.49 | $ 0.23 | $ 0.26 | $ 0.45 | $ 0.38 | $ 0.41 | $ 2.07 | $ 1.50 | $ 1 |