Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 08, 2018 | |
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) | 10,608,971 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 11,161,000 | $ 18,049,000 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $132 as of June 30, 2018 and $168 as of December 31, 2017 | 12,214,000 | 12,376,000 | [1] |
Inventory | 3,248,000 | 2,944,000 | [1] |
Prepaid expenses and deposits | 15,428,000 | 14,186,000 | [1] |
Prepaid domain name registry and ancillary services fees, current portion (note 11 (b)) | 94,754,000 | 103,302,000 | [1] |
Income taxes recoverable | 3,137,000 | 3,004,000 | [1] |
Total current assets | 139,942,000 | 153,861,000 | [1] |
Prepaid domain name registry and ancillary services fees, long-term portion (note 11 (b)) | 20,701,000 | 23,701,000 | [1] |
Property and equipment | 34,538,000 | 24,620,000 | [1] |
Contract costs (note 11 (a)) | 1,354,000 | [1] | |
Intangible assets (note 6) | 53,693,000 | 58,414,000 | [1] |
Goodwill (note 6) | 90,054,000 | 90,054,000 | |
Total assets | 340,282,000 | 350,650,000 | [1] |
Current liabilities: | |||
Accounts payable | 7,340,000 | 7,026,000 | [1] |
Accrued liabilities | 6,770,000 | 6,412,000 | [1] |
Customer deposits | 12,934,000 | 15,255,000 | [1] |
Derivative instrument liability (note 5) | 337,000 | [1] | |
Deferred rent, current portion | 21,000 | 21,000 | [1] |
Loan payable, current portion (note 7) | 17,721,000 | 18,290,000 | [1] |
Deferred revenue, current portion | 122,976,000 | 129,155,000 | [1] |
Accreditation fees payable, current portion | 1,099,000 | 1,175,000 | [1] |
Income taxes payable | 1,477,000 | 1,226,000 | [1] |
Total current liabilities | 170,675,000 | 178,560,000 | [1] |
Derivative instrument liability, long-term portion (note 5) | 27,000 | [1] | |
Deferred revenue, long-term portion | 29,075,000 | 31,427,000 | [1] |
Accreditation fees payable, long-term portion | 269,000 | 289,000 | [1] |
Deferred rent, long-term portion | 126,000 | 130,000 | [1] |
Loan payable, long-term portion (note 7) | 51,012,000 | 58,634,000 | [1] |
Deferred gain | 258,000 | 429,000 | [1] |
Deferred tax liability (note 8) | 19,577,000 | 19,834,000 | [1] |
Redeemable non-controlling interest (note 4 (a)) | 1,136,000 | [1] | |
Stockholders' equity (note 13) | |||
Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding | 0 | 0 | [1] |
Common stock - no par value, 250,000,000 shares authorized; 10,603,366 shares issued and outstanding as of June 30, 2018 and 10,583,879 shares issued and outstanding as of December 31, 2017 | 15,548,000 | 15,368,000 | [1] |
Additional paid-in capital | 2,931,000 | 2,167,000 | [1] |
Retained earnings | 51,027,000 | 42,676,000 | [1] |
Accumulated other comprehensive income | (243,000) | [1] | |
Total stockholders' equity | 69,263,000 | 60,211,000 | [1] |
Total liabilities and stockholders' equity | 340,282,000 | 350,650,000 | [1] |
Commitments and contingencies (note 16) | [1] | ||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | [1] |
Accounts receivable, allowance for doubtful accounts | $ 132 | $ 168 | |
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) | 10,603,366 | 10,583,879 | |
Common stock, shares outstanding (in shares) | 10,603,366 | 10,583,879 | |
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Net revenues (note 10) | $ 81,087,000 | $ 84,223,000 | [1] | $ 176,882,000 | $ 153,791,000 | [1] |
Cost of revenues (note 10) | ||||||
Cost of revenues | 54,501,000 | 59,445,000 | [1] | 123,473,000 | 108,756,000 | [1] |
Network expenses | 2,701,000 | 2,261,000 | [1] | 5,275,000 | 4,604,000 | [1] |
Depreciation of property and equipment | 1,228,000 | 714,000 | [1] | 2,359,000 | 1,305,000 | [1] |
Amortization of intangible assets | 499,000 | 455,000 | [1] | 998,000 | 836,000 | [1] |
Total cost of revenues | 58,929,000 | 62,875,000 | [1] | 132,105,000 | 115,501,000 | [1] |
Gross profit | 22,158,000 | 21,348,000 | [1] | 44,777,000 | 38,290,000 | [1] |
Expenses: | ||||||
Sales and marketing | 7,852,000 | 7,447,000 | [1] | 16,217,000 | 14,667,000 | [1] |
Technical operations and development | 2,355,000 | 1,798,000 | [1] | 4,450,000 | 3,492,000 | [1] |
General and administrative | 4,256,000 | 3,285,000 | [1] | 8,786,000 | 6,742,000 | [1] |
Depreciation of property and equipment | 102,000 | 165,000 | [1] | 203,000 | 331,000 | [1] |
Loss on disposal of property and equipment | 2,000 | [1] | 2,000 | [1] | ||
Amortization of intangible assets (note 6) | 1,827,000 | 1,608,000 | [1] | 3,659,000 | 2,989,000 | [1] |
Loss (gain) on currency forward contracts (note 5) | 52,000 | (27,000) | [1] | 49,000 | (61,000) | [1] |
Total expenses | 16,444,000 | 14,278,000 | [1] | 33,364,000 | 28,162,000 | [1] |
Income from operations | 5,714,000 | 7,070,000 | [1] | 11,413,000 | 10,128,000 | [1] |
Other income (expense): | ||||||
Interest expense, net | (951,000) | (970,000) | [1] | (1,847,000) | (1,838,000) | [1] |
Other income, net | 73,000 | 225,000 | [1] | 197,000 | 354,000 | [1] |
Total other income (expense) | (878,000) | (745,000) | [1] | (1,650,000) | (1,484,000) | [1] |
Income before provision for income taxes | 4,836,000 | 6,325,000 | [1] | 9,763,000 | 8,644,000 | [1] |
Provision for income tax (note 8) | 1,228,000 | 1,083,000 | 2,411,000 | 958,000 | ||
Net income before redeemable non-controlling interest | 3,608,000 | 5,242,000 | [1] | 7,352,000 | 7,686,000 | [1] |
Redeemable non-controlling interest | (117,000) | [1] | (26,000) | (243,000) | [1] | |
Net income attributable to redeemable non-controlling interest | 117,000 | [1] | 26,000 | 243,000 | [1] | |
Net income for the period | 3,608,000 | 5,242,000 | [1],[2] | 7,352,000 | 7,686,000 | [1],[2] |
Other comprehensive income, net of tax | ||||||
Unrealized income on hedging activities (note 5) | (273,000) | 143,000 | [1] | (256,000) | 329,000 | [1] |
Net amount reclassified to earnings (note 5) | 13,000 | (17,000) | [1] | 13,000 | (98,000) | [1] |
Other comprehensive income net of tax of $84 and and $71 for the three months ended June 30, 2018 and June 30, 2017, $78 and $131 for the six months ended June 30, 2018 and June 30, 2017 (note 5) | (260,000) | 126,000 | [1] | (243,000) | 231,000 | [1] |
Comprehensive income for the period | $ 3,348,000 | $ 5,368,000 | [1] | $ 7,109,000 | $ 7,917,000 | [1] |
Basic earnings per common share (note 9) (in dollars per share) | $ 0.34 | $ 0.50 | [1] | $ 0.69 | $ 0.73 | [1] |
Shares used in computing basic earnings per common share (note 9) (in shares) | 10,597,228 | 10,528,219 | [1] | 10,592,994 | 10,501,407 | [1] |
Diluted earnings per common share (note 9) (in dollars per share) | $ 0.33 | $ 0.49 | [1] | $ 0.68 | $ 0.71 | [1] |
Shares used in computing diluted earnings per common share (note 9) (in shares) | 10,803,007 | 10,793,031 | [1] | 10,797,017 | 10,785,685 | [1] |
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | |||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Other comprehensive income (loss), tax | $ 84 | $ 71 | [1] | $ 78 | $ 131 | [1] |
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | [2] | Jun. 30, 2018 | Jun. 30, 2017 | [2] | ||
Operating activities: | |||||||
Net income for the period | $ 3,608 | $ 5,242 | [1] | $ 7,352 | $ 7,686 | [1] | |
Items not involving cash: | |||||||
Depreciation of property and equipment | 1,330 | 879 | 2,562 | 1,636 | |||
Loss on write off of property and equipment | (9) | (9) | |||||
Amortization of debt discount and issuance costs | 69 | 80 | 139 | 147 | |||
Amortization of intangible assets | 2,326 | 2,064 | 4,657 | 3,825 | |||
Change in capitalized contract costs | 25 | 50 | |||||
Deferred income taxes (recovery) | (445) | (2,885) | (492) | (1,565) | |||
Excess tax benefits on share-based compensation expense | (197) | (1,182) | (341) | (2,171) | |||
Amortization of deferred rent | (4) | 1 | (4) | 5 | |||
Loss on disposal of domain names | 28 | 7 | 65 | 18 | |||
Other income | (42) | (128) | (171) | (257) | |||
Loss (gain) on change in the fair value of forward contracts | 46 | (163) | 43 | (301) | |||
Stock-based compensation | 615 | 313 | 1,193 | 631 | |||
Change in non-cash operating working capital: | |||||||
Accounts receivable | 471 | (905) | 162 | (864) | |||
Inventory | (350) | (1,267) | (304) | (1,096) | |||
Prepaid expenses and deposits | (717) | 1,186 | (1,242) | (2,371) | |||
Prepaid domain name registry and ancillary services fees | 204 | 2,976 | 11,548 | (2,513) | |||
Income taxes recoverable | 165 | 2,513 | 430 | (147) | |||
Accounts payable | (1,862) | (592) | 270 | (4,038) | |||
Accrued liabilities | (401) | (1,818) | 358 | 13 | |||
Customer deposits | (46) | 3,152 | (2,321) | 3,068 | |||
Deferred revenue | 1,067 | (1,273) | (8,531) | 8,968 | |||
Accreditation fees payable | (136) | (78) | (96) | (149) | |||
Net cash provided by operating activities | 5,754 | 8,131 | 15,327 | 10,534 | |||
Financing activities: | |||||||
Proceeds received on exercise of stock options | 32 | 85 | 39 | 105 | |||
Payment of tax obligations resulting from net exercise of stock options | (141) | (609) | (288) | (1,322) | |||
Proceeds received on loan payable | 2,500 | 2,500 | 86,998 | ||||
Repayment of loan payable | (6,253) | (4,572) | (10,825) | (10,830) | |||
Payment of loan payable costs | (13) | (4) | (604) | ||||
Net cash (used in) provided by financing activities | (3,862) | (5,109) | (8,578) | 74,347 | |||
Investing activities: | |||||||
Additions to property and equipment | (7,319) | (2,909) | (12,436) | (6,602) | |||
Acquisition of a portion of the minority interest in Ting Virginia, LLC (note 4(a)) | (1,200) | (2,000) | |||||
Acquisition of Enom Incorporated, net of cash (note 4(b)) | (76,238) | ||||||
Acquisition of intangible assets | (1) | ||||||
Net cash (used in) investing activities | (7,319) | (2,909) | (13,637) | (84,840) | |||
Decrease in cash and cash equivalents | (5,427) | 113 | (6,888) | 41 | |||
Cash and cash equivalents, beginning of period | 16,588 | 15,033 | 18,049 | [3] | 15,105 | ||
Cash and cash equivalents, end of period | 11,161 | 15,146 | 11,161 | 15,146 | |||
Supplemental cash flow information: | |||||||
Interest paid | 961 | 975 | 1,862 | 1,848 | |||
Income taxes paid, net | 2,240 | 2,663 | 3,577 | 5,006 | |||
Supplementary disclosure of non-cash investing and financing activities: | |||||||
Property and equipment acquired during the period not yet paid for | $ 258 | $ 232 | $ 258 | $ 232 | |||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||
[3] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 1 - Organization of the Co
Note 1 - Organization of the Company | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Tucows Inc. (referred to throughout this report as the “Company”, “Tucows”, “we”, “us” or through similar expressions) provides simple useful services that help people unlock the power of the Internet. The Company provides U.S. 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 - Basis of Presentation
Note 2 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2. The accompanying unaudited interim consolidated balance sheets, and the related consolidated statements of operations and comprehensive income and cash flows reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position of Tucows and its subsidiaries as at June 30, 2018 June 30, 2018 2017. 10 not may The accompanying unaudited interim consolidated financial statements have been prepared by Tucows in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company's annual audited consolidated financial statements and accompanying notes have been condensed or omitted. Other than the exception noted below, these interim consolidated financial statements and accompanying notes follow the same accounting policies and methods of application used in the annual financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2017 2017 10 March 6, 2018 “2017 no six June 30, 2018 2017 No. 2014 09, Revenue from Contracts with Customers (Topic 606 ) 2014 09” 3 Beginning with this Quarterly Report on Form 10 $000 |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. Recent Accounting Pronouncements Adopted On January 1, 2018, No. 2017 01, Business Combinations (Topic 805 ): Clarifying the Definition of a Business 2015 16, Simplifying the Accounting for Measurement-Period Adjustments. not 2014 09 ASU 2014 - 09: Adoption of Revenue from Contracts with Customers (Topic 606 ) On January 1, 2018, 2014 09 2014 09 January 1, 2018. January 1, 2018 2014 09, not 605, 605 606 not not 606 605. 10. The Company previously recognized commission fees related to Ting Mobile, Ting Internet, eNom domain registration and eNom domain related value-added service contracts as selling expenses when they were incurred. Under ASU 2014 09, Under Topic 606, a) When the amortization period for costs incurred to obtain a contract with a customer is less than one b) For mobile and internet access services, where the performance obligation is part of contracts that have an original expected duration of one one not On January 1, 2018 2014 09, $1.4 $1.1 $0.3 June 30, 2018 Consolidated Balance Sheet As reported Adjustments Balances without adoption of Topic 606 Assets Contract costs (note 11) $ 1,354 $ (1,354 ) $ (0 ) Total assets $ 340,282 $ (1,354 ) $ 338,928 Liabilities and Shareholders' Equity Deferred tax liability (note 8) $ 19,577 $ (329 ) $ 19,248 Retained earnings 51,027 (1,025 ) 50,002 Total Liabilities and Shareholders' Equity $ 340,282 $ (1,354 ) $ 338,928 Three months ended, June 30, 2018 Six months ended, June 30, 2018 Consolidated Statements of Operations and Comprehensive Income As reported Adjustments Balances without adoption of Topic 606 As reported Adjustments Balances without adoption of Topic 606 Expenses Sales and marketing $ 7,852 $ (25 ) $ 7,827 $ 16,217 $ (50 ) $ 16,167 Income before provision for income taxes 4,836 25 4,861 9,763 50 9,813 Provision for income tax (note 8) 1,228 6 1,234 2,411 12 2,423 Net income for the period $ 3,608 $ 19 $ 3,627 $ 7,352 $ 38 $ 7,390 Three months ended, June 30, 2018 Six months ended, June 30, 2018 Consolidated Statements of Cash Flows (Dollar amounts in thousands of U.S. dollars) As reported Adjustments Balances without adoption of Topic 606 As reported Adjustments Balances without adoption of Topic 606 Net income for the period $ 3,608 $ 19 $ 3,627 $ 7,352 $ 38 $ 7,390 Items not involving cash Amortization contract costs 25 (25 ) (0 ) 50 (50 ) 0 Deferred income taxes (recovery) (445 ) 6 (439 ) (492 ) 12 (480 ) Net cash provided by operating activities $ 5,754 $ (0 ) $ 5,754 $ 15,327 $ - $ 15,327 Recent Accounting Pronouncements Not Yet Adopted In February 2016, No. 2016 02, Leases (Topic 842 ) 2016 02” 2016 02 2016 02 December 15, 2018, January 1, 2019 first 2019. |
Note 4 - Acquisitions
Note 4 - Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 4. (a) Blue Ridge Websoft On February 27, 2015, one 70% $3.5 On February 1, 2017, 20% $2.0 On February 13, 2018, 10% $1.2 February 13, 2018 $1.2 10% (b) eNom, Incorporated On January 20, 2017, $77.8 $83.5 $5.7 |
Note 5 - Derivative Instruments
Note 5 - Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. 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 Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging 815, June 30, 2018, no As of June 30, 2018, $16.9 $14.9 December 31, 2017 no As of June 30, 2018, Maturity date (Dollar amounts in thousands of U.S. dollars) Notional amount of U.S. dollars Weighted average exchange rate of U.S. dollars Fair value July - September 2018 6,130 1.2851 (134 ) October - December 2018 6,049 1.2802 (144 ) January - March 2019 1,640 1.2852 (30 ) April - June 2019 1,599 1.2831 (29 ) July - September 2019 1,444 1.2809 (27 ) $ 16,862 1.2828 $ (364 ) Fair value of derivative instruments and effect of derivative instruments on financial performance The effect of these derivative instruments on our consolidated financial statements were as follows (amounts presented do not Fair value of derivative instruments in the consolidated balance sheets As of June 30 , 2018 As of December 31, 2017 Derivatives (Dollar amounts in thousands of U.S. dollars) Balance Sheet Fair Value Asset (Liability) Fair Value Asset (Liability) Foreign currency forward contracts designated as cash flow hedges (net) Derivative instruments $ (321 ) $ - Foreign currency forward contracts not designated as cash flow hedges (net) Derivative instruments $ (43 ) $ - Total foreign currency forward contracts (net) Derivative instruments $ (364 ) $ - Movement in Accumulated Othe r Comprehensive Income ("AOCI") balance for the three months ended June 30, 2018 : Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – March 31. 2018 $ 23 $ (6 ) $ 17 Other comprehensive income (loss) before reclassifications (361 ) 88 (273 ) Amount reclassified from accumulated other comprehensive income 17 (4 ) 13 Other comprehensive income (loss) for the three months ended June 30, 2018 (344 ) 84 (260 ) Ending AOCI balance – June 30, 2018 $ (321 ) $ 78 $ (243 ) Movement in Accumulated Othe r Comprehensive Income ("AOCI") balance for the six June 30, 2018 : Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2017 $ — $ — $ — Other comprehensive income (loss) before reclassifications (338 ) 82 (256 ) Amount reclassified from accumulated other comprehensive income 17 (4 ) 13 Other comprehensive income (loss) for the six months ended June 30, 2018 (321 ) 78 (243 ) Ending AOCI balance – June 30, 2018 $ (321 ) $ 78 $ (243 ) Effects of derivative instruments on income and other comprehensive income (OCI) for the three months ended June 30, 2018 and June 30, 2017 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 AOCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCI into Income, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (1 ) Operating expenses $ — Foreign currency forward contracts for the three months ended June 30, 2018 $ (260 ) Cost of revenues $ (16 ) Cost of revenues — Operating expenses $ 24 Operating expenses $ — Foreign currency forward contracts for the three months ended June 30, 2017 $ 126 Cost of revenues $ 4 Cost of revenues — Effects of derivative instruments on income and other comprehensive income (OCI) for the six June 30, 2018 June 30, 2017 are as follows (Dollar amounts in thousands of U.S. dollars) : Derivatives in Cash Flow Hedging Relationship Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (1 ) Operating expenses $ — Foreign currency forward contracts for the six months ended June 30, 2018 $ (243 ) Cost of revenues $ (16 ) Cost of revenues — Operating expenses $ 129 Operating expenses $ — Foreign currency forward contracts for the six months ended June 30, 2017 $ 231 Cost of revenues $ 25 Cost of revenues — In addition to the above, for those foreign currency forward contracts not $0.1 $0.1 three June 30, 2018, $0.1 not three June 30, 2017, The Company has recorded a loss of less than $0.1 $0.1 six June 30, 2018, $0.1 $0.1 not six June 30, 2017, |
Note 6 - Goodwill and Other Int
Note 6 - Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. 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 June 30, 2018 ( December 31, 2017 – $90.1 98% $87.9 2% $2.2 Goodwill is not 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 June 30, 2018 June 30, 2017, June 2006 Intangible assets, comprising brand, technology, customer relationships and network rights are being amortized on a straight-line basis over periods of four fifteen A summary of acquired intangible assets for the three June 30, 2018 (Dollar amounts in thousands of U.S. dollars) 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 March 31, 2018 $ 11,205 $ 1,519 $ 10,342 $ 30,806 $ 1,625 $ 550 $ 56,047 Additions to/(disposals from) domain portfolio, net (4 ) (24 ) - - - - (28 ) Amortization expense - - (450 ) (1,377 ) (487 ) (12 ) (2,326 ) Balances June 30, 2018 $ 11,201 $ 1,495 $ 9,892 $ 29,429 $ 1,138 $ 538 $ 53,693 A summary of acquired intangible assets for the six June 30, 2018 (Dollar amounts in thousands of U.S. dollars) 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, 2017 $ 11,210 $ 1,551 $ 10,793 $ 32,186 $ 2,113 $ 561 $ 58,414 Acquisition of customer relationships - - - 1 - - 1 Additions to/(disposals from) domain portfolio, net (9 ) (56 ) - - - - (65 ) Amortization expense - - (901 ) (2,758 ) (975 ) (23 ) (4,657 ) Balances June 30, 2018 $ 11,201 $ 1,495 $ 9,892 $ 29,429 $ 1,138 $ 538 $ 53,693 The following table shows the estimated amortization expense in future periods, assuming no (Dollar amounts in thousands of U.S. dollars) Year ending December 31, Remainder of 2018 $ 4,579 2019 7,338 2020 7,171 2021 7,171 2022 7,171 Thereafter 7,567 Total $ 40,997 As of June 30, 2018, $20.0 |
Note 7 - Loan Payable
Note 7 - Loan Payable | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. 2017 Amended Credit Facility On January 20, 2017, “2017 $140 2016 $40.0 $35.5 $84.5 $84.5 4 “2016 “2016 August 18, 2016. In connection with the 2017 $0.6 The obligations of the Company under the 2017 first The 2017 four 2017 $140 ● a $5 ● a $15 ● a $35.5 ● a $84.5 Borrowings under the 2017 The repayment terms for Facility A require monthly interest payments with any final principal payment becoming due upon maturity of the 2017 December 31st first first four five seven 2017 2.25:1 December 31 50% The 2017 2017 four 2.50:1 September 30, 2018 2.25:1 1.20:1. $50.0 not $20 $40 not 1.5 twelve June 30, 2018, June 30, 2017, On January 24, 2018, 1.01 not $3.0 Borrowings under the 2017 If Total Funded Debt to EBITDA is: Availment type or fee Less than 1.00 Greater than or equal to 1.00 and less than 2.00 Greater than or equal to 2.00 and less than 2.25 Greater than or equal to 2.25 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 (Dollar amounts in thousands of U.S. dollars ) June 3 0 , 2018 December 31, 2017 Facility B 2,500 - Facility C 3,554 5,930 Facility D 63,373 71,823 Less: unamortized debt discount and issuance costs (694 ) (829 ) Total loan payable 68,733 76,924 Less: loan payable, current portion 17,721 18,290 Loan payable, long-term portion 51,012 58,634 The following table summarizes our scheduled principal repayments as of June 30, 2018 ( Remainder of 2018 8,771 2019 17,900 2020 17,900 2021 17,900 2022 5,225 Thereafter 1,731 $ 69,427 Other Credit Facilities Prior to the Company entering into the 2016 November 19, 2012, two “2012 The treasury risk management facility under the Amended Credit Facility provides for a $3.5 may not 18 June 30, 2018, $21.6 5 In Q4, 2017, may $5 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. For the three June 30, 2018, $1.2 $4.8 December 31, 2018 ( 2018” $0.2 2016 09, three June 30, 2017, $1.1 $6.3 2017 $1.2 2016 09. For the six June 30, 2018, $2.4 $9.8 2018 $0.3 2016 09, six June 30, 2017, $1.0 $8.6 2017 $2.2 2016 09. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not not The Company recognizes accrued interest and penalties related to income taxes in income tax expense. The Company did not June 30, 2018 December 31, 2017, |
Note 9 - Basic and Diluted Earn
Note 9 - Basic and Diluted Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. Basic earnings per common share has been calculated on the basis of net income for the period 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. The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation (Dollar amounts in thousands of U.S. dollars, except per share amounts): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Numerator for basic and diluted earnings per common share: Net income for the period $ 3,608 $ 5,242 $ 7,352 $ 7,686 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,597,228 10,528,219 10,592,994 10,501,407 Effect of outstanding stock options 205,779 264,812 204,023 284,278 Diluted weighted average number of shares outstanding 10,803,007 10,793,031 10,797,017 10,785,685 Basic earnings per common share $ 0.34 $ 0.50 $ 0.69 $ 0.73 Diluted earnings per common share $ 0.33 $ 0.49 $ 0.68 $ 0.71 For the three June 30, 2018, 419,000 not three June 30, 2017, 18,500 not For the six June 30, 2018, 449,000 not six June 30, 2017, 23,500 not During the three six June 30, 2018, not February 14, 2018, February 13, 2019. During the three six June 30, 2017 six June 30, 2018, not March 1, 2017, February 14, 2018. During the six June 30, 2017, not February 10, 2016, February 9, 2017. |
Note 10 - Revenue
Note 10 - Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 10. Significant accounting policy The Company’s revenues are derived from (a) the provisioning of mobile and fiber Internet services; and from (b) domain name registration contracts, other domain related value-added services, domain sale contracts, and other advertising revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. All products are generally sold without the right of return or refund. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third Nature of goods and services The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, see Note 12. (a) Network Access Services The Company generates Network Access Services revenues primarily through the provisioning of mobile services. Other sources of revenue include the provisioning of fixed high-speed Internet access as well as billing solutions to Internet Service Providers (“ISPs”). Ting wireless usage contracts grant customers access to standard talk, text and data mobile services. Ting mobile contracts are billed based on the actual amount of monthly services utilized by each customer during their billing cycle and charged to customers on a postpaid basis. Voice minutes, text messages and megabytes of data are each billed separately based on a tiered pricing program. The Company recognizes revenue for Ting mobile usage based on the actual amount of monthly services utilized by each customer. Ting fixed Internet access contracts provide customers Internet access at their home or business through the installation and use of our fiber optic network. Fixed Internet contracts are generally prepaid and grant customers with unlimited bandwidth based on a fixed price per month basis. Because consideration is collected before the service period, revenue is initially deferred and recognized as the Company performs its obligation to provide Internet access. Though the Company does not Both Ting mobile and fixed Internet access services are primarily contracted through the Ting website, for one no not Our Roam Mobility brand also offers standard talk, text and data mobile services. Roam customers prepay for their usage through the Roam Mobility website. When prepayments are received the amount is deferred, and subsequently recognized as the Company satisfies its obligation to provide mobile services. In addition, revenues associated with the sale of SIM cards are recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. In those cases, where payment is not not (b) Domain Services Domain registration contracts, which can be purchased for terms of one ten Domain related value-added services like digital certifications, WHOIS privacy and hosted email provide our resellers and retail registrant customers tools and additional functionality to be used in conjunction with domain registrations. All domain related value-added services are considered distinct performance obligations which transfer the promised service to the customer over the contracted term. Fees charged to customers for domain related value-added services are collected at the inception of the contract, and revenue is recognized on a straight-line basis over the contracted term, consistent with the satisfaction of the performance obligations. The Company is an ICANN accredited registrar. Thus, the Company is the primary obligor with our reseller and retail registrant customers and is 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 The Company also sells the rights to the Company’s portfolio domains or names acquired through the Company’s domain expiry stream. Revenue generated from sale of domain name contracts, containing a distinct performance obligation to transfer the domain name rights under the Company’s control, is generally recognized once the rights have been transferred and payment has been received in full. Advertising revenue is derived through domain parking monetization, whereby the Company contracts with third no Disaggregation of Revenue The following is a summary of the Company’s revenue earned from each significant revenue stream (Dollar amounts in thousands of U.S. dollars): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Network Access Services: Mobile Services $ 22,411 $ 20,379 $ 44,283 $ 38,341 Other Services 1,895 1,248 3,631 2,535 Total Network Access Services 24,306 21,627 47,914 40,876 Domain Services: Wholesale Domain Services 42,540 48,550 100,968 87,644 Value Added Services 4,601 5,415 9,035 9,322 Total Wholesale 47,141 53,965 110,003 96,966 Retail 8,477 7,663 16,913 14,064 Portfolio 1,163 968 2,052 1,885 Total Domain Services 56,781 62,596 128,968 112,915 $ 81,087 $ 84,223 $ 176,882 $ 153,791 During the three June 30, 2018, no 10% six June 30, 2018, one 11% three six June 30, 2017, no 10% June 30, 2018 December 31, 2017, no 10% The following is a summary of the Company’s cost of revenue from each significant revenue stream (Dollar amounts in thousands of U.S. dollars): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Network Access Services: Mobile Services $ 11,978 $ 10,702 $ 23,243 $ 20,269 Other Services 1,290 946 2,230 1,771 Total Network Access Services 13,268 11,648 25,473 22,040 Domain Services: Wholesale Domain Services 35,844 42,449 87,161 76,913 Value Added Services 748 615 1,605 1,191 Total Wholesale 36,592 43,064 88,766 78,104 Retail 4,446 4,548 8,855 8,165 Portfolio 195 185 379 447 Total Domain Services 41,233 47,797 98,000 86,716 Network Expenses: Network, other costs 2,701 2,261 5,275 4,604 Network, depreciation and amortization costs 1,727 1,169 3,357 2,141 4,428 3,430 8,632 6,745 $ 58,929 $ 62,875 $ 132,105 $ 115,501 Contract Balances The following table provides information about contract liabilities (deferred revenue) from contracts with customers. The Company accounts for contract assets and liabilities on a contract-by-contract basis, with each contract presented as either a net contract asset or a net contract liability accordingly. Given that Company’s long-term contracts with customers are billed in advance of service, the Company’s contract liabilities relate to amounts recorded as deferred revenues. The Company does not not Deferred revenue primarily relates to the portion of the transaction price received in advance related to the unexpired term of domain name registrations and other domain related value-added services, on both a wholesale and retail basis, net of external commissions. The opening balance of deferred revenue was $160.6 January 1, 2018. Three months ended June 30, 2018 Six months ended June 30, 2018 Balance, beginning of period $ 150,983 $ 160,582 Deferral of revenue 56,352 116,722 Recognition of deferred revenue 1 (55,284 ) (125,253 ) Balance, end of period $ 152,051 $ 152,051 1 2.65 January 5, 2018, six June 30, 2018 $14.6 Remaining Performance Obligations: As the Company fulfills its performance obligations, the following table includes revenues expected to be recognized in the future related performance obligations that are unsatisfied (or partially unsatisfied) as at June 30, 2018 ( For mobile and internet access services, where the performance obligation is part of contracts that have an original expected duration of one one not June 30, 2018 Remainder of 2018 $ 85,722 2019 45,546 2020 8,640 2021 4,616 2022 2,987 Thereafter 4,321 Total $ 151,832 |
Note 11 - Contract Costs
Note 11 - Contract Costs | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Capitalized Contract Costs [Text Block] | 11. (a) Deferred costs of acquisition We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the period of benefit of those costs to be longer than one $1.4 June 30, 2018. Capitalized contract acquisition costs are amortized into operating expense based on the transfer of goods or services to which the assets relate which typically range 2 10 three June 30, 2018, $0.2 $0.3 $0.1 six June 30, 2018, $0.4 $0.5 $0.1 no three six June 30, 2018. three six June 30, 2018 Three months ended June 30, 2018 Six months ended June 30, 2018 (1 ) Balance, beginning of period $ 1,378 $ 1,404 Capitalization of costs 244 439 Amortization of costs (268 ) (489 ) Balance, end of period $ 1,354 $ 1,354 ( 1 January 1, 2018 2014 09. 3 When the amortization period for costs incurred to obtain a contract with a customer is less than one (b) Deferred costs of fulfillment Deferred costs to fulfill contracts generally consist of domain registration costs which have been paid to a domain registry, and are capitalized as Prepaid domain name registry and ancillary services fees. These costs are deferred and amortized over the life of the domain which generally ranges from one ten three June 30, 2018, $41.2 $41.4 $0.2 six June 30, 2018, $87.2 $98.7 $11.5 no three six June 30, 2018. three six June 30, 2018 Three months ended June 30, 2018 Six months ended June 30, 2018 Balance, beginning of period $ 115,660 $ 127,003 Deferral of costs 41,177 87,160 Recognition of costs 1 (41,380 ) (98,708 ) Balance, end of period $ 115,456 $ 115,456 1 2.65 January 5th, 2018, six June 30, 2018 $14.5 |
Note 12 - Segment Reporting
Note 12 - Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 12. (a) We are organized and managed based on two 1. 2. The Chief Executive Officer (the “CEO”) is the chief operating decision maker and regularly reviews the operations and performance by segment. The CEO reviews gross profit as (a) key measure of performance for each segment and (b) 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, gain on currency forward contracts and other expense net are organized along functional lines and are not not 2, 3 10 Information by operating segments (with the exception of disaggregated revenue, which is contained in Note 10 Network Access Services Domain Services Consolidated Totals Three months ended June 30, 2018 Net Revenues $ 24,306 $ 56,781 $ 81,087 Cost of revenues Cost of revenues 13,268 41,233 54,501 Network expenses 640 2,061 2,701 Depreciation of property and equipment 903 325 1,228 Amortization of intangible assets 11 488 499 Total cost of revenues 14,822 44,107 58,929 Gross Profit 9,484 12,674 22,158 Expenses: Sales and marketing 7,852 Technical operations and development 2,355 General and administrative 4,256 Depreciation of property and equipment 102 Amortization of intangible assets 1,827 Loss (gain) on currency forward contracts 52 Income from operations 5,714 Other income (expenses), net (878 ) Income before provision for income taxes $ 4,836 Network Access Services Domain Services Consolidated Totals Three months ended June 30, 2017 Net Revenues $ 21,627 $ 62,596 $ 84,223 Cost of revenues Cost of revenues 11,648 47,797 59,445 Network expenses 410 1,851 2,261 Depreciation of property and equipment 489 225 714 Amortization of intangible assets 11 444 455 Total cost of revenues 12,558 50,317 62,875 Gross Profit 9,069 12,279 21,348 Expenses: Sales and marketing 7,447 Technical operations and development 1,798 General and administrative 3,285 Depreciation of property and equipment 165 Loss on disposal of property and equipment 2 Amortization of intangible assets 1,608 Loss (gain) on currency forward contracts (27 ) Income from operations 7,070 Other income (expenses), net (745 ) Income before provision for income taxes $ 6,325 Network Access Services Domain Services Consolidated Totals Six months ended June 30, 2018 Net Revenues $ 47,914 $ 128,968 $ 176,882 Cost of revenues Cost of revenues 25,473 98,000 123,473 Network expenses 1,130 4,145 5,275 Depreciation of property and equipment 1,737 622 2,359 Amortization of intangible assets 23 975 998 Total cost of revenues 28,363 103,742 132,105 Gross Profit 19,551 25,226 44,777 Expenses: Sales and marketing 16,217 Technical operations and development 4,450 General and administrative 8,786 Depreciation of property and equipment 203 Amortization of intangible assets 3,659 Loss (gain) on currency forward contracts 49 Income from operations 11,413 Other income (expenses), net (1,650 ) Income before provision for income taxes $ 9,763 Network Access Services Domain Services Consolidated Totals Six months ended June 30, 2017 Net Revenues $ 40,876 $ 112,915 $ 153,791 Cost of revenues Cost of revenues 22,040 86,716 108,756 Network expenses 951 3,653 4,604 Depreciation of property and equipment 916 389 1,305 Amortization of intangible assets 23 813 836 Total cost of revenues 23,930 91,571 115,501 Gross Profit 16,946 21,344 38,290 Expenses: Sales and marketing 14,667 Technical operations and development 3,492 General and administrative 6,742 Depreciation of property and equipment 331 Loss on disposal of property and equipment 2 Amortization of intangible assets 2,989 Loss (gain) on currency forward contracts (61 ) Income from operations 10,128 Other income (expenses), net (1,484 ) Income before provision for income taxes $ 8,644 (b) The following is a summary of the Company’s property and equipment by geographic region (Dollar amounts in thousands of U.S. dollars): June 30, 2018 December 31, 2017 Canada $ 1,518 $ 1,176 United States 32,979 23,417 Germany 41 27 $ 34,538 $ 24,620 (c) The following is a summary of the Company’s amortizable intangible assets by geographic region (Dollar amounts in thousands of U.S. dollars): June 30, 2018 December 31, 2017 Canada $ 7,085 $ 7,749 United States 33,895 37,783 Germany 17 120 $ 40,997 $ 45,652 (d) Valuation and qualifying accounts (Dollar amounts in thousands of U.S. dollars): Allowance for doubtful accounts excluding provision for credit notes Balance at beginning of period Charged to costs and expenses Write-offs during period Balance at end of period Six months ended June 30, 2018 $ 168 $ (36 ) $ - $ 132 Year ended December 31, 2017 $ 164 $ 4 $ - $ 168 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 13. The following unaudited table summarizes stockholders' equity transactions for the three June 30, 2018 ( Accumulated Additional Retained other Total Common stock paid in earnings comprehensive stockholders' Number Amount capital (deficit) income (loss) equity Balances, March 31, 2018 10,592,115 $ 15,426 $ 2,547 $ 47,419 $ 17 $ 65,409 Exercise of stock options 16,153 122 (90 ) - - 32 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (4,902 ) (141 ) - - (141 ) Stock-based compensation (note 14) - - 615 - - 615 Net income - - - 3,608 - 3,608 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - - - - Other comprehensive loss - - - - (260 ) (260 ) Balances, June 30, 2018 10,603,366 $ 15,548 $ 2,931 $ 51,027 $ (243 ) $ 69,263 The following unaudited table summarizes stockholders' equity transactions for the six June 30, 2018 ( Accumulated Additional Retained other Total Common stock paid in earnings comprehensive stockholders' Number Amount capital (deficit) income (loss) equity Balances, December 31, 2017 10,583,879 $ 15,368 $ 2,167 $ 42,676 $ - $ 60,211 Impact of Adoption of ASU 2014-09 - - - 1,063 - 1,063 Balance on January 1, 2018 10,583,879 15,368 2,167 43,739 - 61,274 Exercise of stock options 28,716 180 (141 ) - - 39 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (9,229 ) - (288 ) - - (288 ) Stock-based compensation (note 14) - - 1,193 - - 1,193 Net income - - - 7,352 - 7,352 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - (64 ) - (64 ) Other comprehensive loss - - - - (243 ) (243 ) Balances, June 30, 2018 10,603,366 $ 15,548 $ 2,931 $ 51,027 $ (243 ) $ 69,263 On February 14, 2018, $40 February 14, 2018 February 13, 2019. three six June 30, 2018, not On March 1, 2017, $40 March 1, 2017 February 14, 2018. six June 30, 2018, not On February 9, 2016, $40 February 10, 2016 February 9, 2017. six June 30, 2017, not |
Note 14 - Share-based Payments
Note 14 - Share-based Payments | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 14. Stock options 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. Details of stock option transactions for the three June 30, 2018 June 30, 2017 Three months ended June 30, Three months ended June 30, 2018 2017 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 634,883 $ 37.48 430,611 $ 15.46 Granted 128,566 64.10 - - Exercised (16,153 ) 12.26 (66,746 ) 8.26 Forfeited (13,100 ) 55.04 (257 ) 11.43 Expired - - - - Outstanding, end of period 734,196 42.39 363,608 16.79 Options exercisable, end of period 229,780 $ 16.92 213,769 $ 11.46 Details of stock option transactions for the six June 30, 2018 June 30, 2017 Six months ended June 30, Six months ended June 30, 2018 2017 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 653,571 $ 36.69 474,501 $ 12.67 Granted 139,566 63.66 32,875 40.56 Exercised (28,716 ) 10.30 (135,622 ) 8.04 Forfeited (30,225 ) 47.96 (8,146 ) 18.24 Expired - - - - Outstanding, end of period 734,196 42.39 363,608 16.79 Options exercisable, end of period 229,780 $ 16.92 213,769 $ 11.46 As of June 30, 2018, 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 75,367 $ 6.94 1.2 $ 4,048 75,367 $ 6.94 1.2 $ 4,048 $10.16 - $19.95 109,488 16.38 3.0 4,847 83,288 15.99 2.8 3,720 $21.10 - $27.53 72,500 23.76 3.6 2,674 52,500 24.78 3.2 1,883 $35.25 - $37.35 14,375 35.89 4.9 356 10,625 36.11 4.7 261 $43.15 - $47.00 18,500 44.19 5.6 305 8,000 43.75 5.6 135 $53.20 - $58.65 315,400 55.51 5.9 1,622 - - - - $64.10 - $64.10 128,566 64.10 6.9 - - - - - 734,196 $ 42.39 4.9 $ 13,852 229,780 $ 16.92 2.6 $ 10,047 Total unrecognized compensation cost relating to unvested stock options at June 30, 2018, $8.0 2.9 The Company recorded stock-based compensation of $0.6 $1.2 three six June 30, 2018 $0.3 $0.6 three six June 30, 2017, The Company has not |
Note 15 - Fair Value Measuremen
Note 15 - Fair Value Measurement | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 15. 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 instrument assets and liabilities measured at fair value on a recurring basis at June 30, 2018 ( June 3 0 , 2018 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset $ — $ — $ — $ — Derivative instrument liability $ — $ 364 $ — $ 364 There were no December 31, 2017. |
Note 16 - Contingencies
Note 16 - Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 16. On August 30, 2017, October 10, 2017. 2.65 November 15, 2017, one January 5, 2018 January 8, 2018 January 16, 2018. not The Company has other legal claims and lawsuits in connection with its ordinary business operations. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions or claims outstanding or pending as of June 30, 2018 not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited interim consolidated balance sheets, and the related consolidated statements of operations and comprehensive income and cash flows reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position of Tucows and its subsidiaries as at June 30, 2018 June 30, 2018 2017. 10 not may The accompanying unaudited interim consolidated financial statements have been prepared by Tucows in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company's annual audited consolidated financial statements and accompanying notes have been condensed or omitted. Other than the exception noted below, these interim consolidated financial statements and accompanying notes follow the same accounting policies and methods of application used in the annual financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2017 2017 10 March 6, 2018 “2017 no six June 30, 2018 2017 No. 2014 09, Revenue from Contracts with Customers (Topic 606 ) 2014 09” 3 10 $000 |
Note 3 - Recent Accounting Pr24
Note 3 - Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | June 30, 2018 Consolidated Balance Sheet As reported Adjustments Balances without adoption of Topic 606 Assets Contract costs (note 11) $ 1,354 $ (1,354 ) $ (0 ) Total assets $ 340,282 $ (1,354 ) $ 338,928 Liabilities and Shareholders' Equity Deferred tax liability (note 8) $ 19,577 $ (329 ) $ 19,248 Retained earnings 51,027 (1,025 ) 50,002 Total Liabilities and Shareholders' Equity $ 340,282 $ (1,354 ) $ 338,928 Three months ended, June 30, 2018 Six months ended, June 30, 2018 Consolidated Statements of Operations and Comprehensive Income As reported Adjustments Balances without adoption of Topic 606 As reported Adjustments Balances without adoption of Topic 606 Expenses Sales and marketing $ 7,852 $ (25 ) $ 7,827 $ 16,217 $ (50 ) $ 16,167 Income before provision for income taxes 4,836 25 4,861 9,763 50 9,813 Provision for income tax (note 8) 1,228 6 1,234 2,411 12 2,423 Net income for the period $ 3,608 $ 19 $ 3,627 $ 7,352 $ 38 $ 7,390 Three months ended, June 30, 2018 Six months ended, June 30, 2018 Consolidated Statements of Cash Flows (Dollar amounts in thousands of U.S. dollars) As reported Adjustments Balances without adoption of Topic 606 As reported Adjustments Balances without adoption of Topic 606 Net income for the period $ 3,608 $ 19 $ 3,627 $ 7,352 $ 38 $ 7,390 Items not involving cash Amortization contract costs 25 (25 ) (0 ) 50 (50 ) 0 Deferred income taxes (recovery) (445 ) 6 (439 ) (492 ) 12 (480 ) Net cash provided by operating activities $ 5,754 $ (0 ) $ 5,754 $ 15,327 $ - $ 15,327 |
Note 5 - Derivative Instrumen25
Note 5 - Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Derivative Instruments [Table Text Block] | Maturity date (Dollar amounts in thousands of U.S. dollars) Notional amount of U.S. dollars Weighted average exchange rate of U.S. dollars Fair value July - September 2018 6,130 1.2851 (134 ) October - December 2018 6,049 1.2802 (144 ) January - March 2019 1,640 1.2852 (30 ) April - June 2019 1,599 1.2831 (29 ) July - September 2019 1,444 1.2809 (27 ) $ 16,862 1.2828 $ (364 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | As of June 30 , 2018 As of December 31, 2017 Derivatives (Dollar amounts in thousands of U.S. dollars) Balance Sheet Fair Value Asset (Liability) Fair Value Asset (Liability) Foreign currency forward contracts designated as cash flow hedges (net) Derivative instruments $ (321 ) $ - Foreign currency forward contracts not designated as cash flow hedges (net) Derivative instruments $ (43 ) $ - Total foreign currency forward contracts (net) Derivative instruments $ (364 ) $ - |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – March 31. 2018 $ 23 $ (6 ) $ 17 Other comprehensive income (loss) before reclassifications (361 ) 88 (273 ) Amount reclassified from accumulated other comprehensive income 17 (4 ) 13 Other comprehensive income (loss) for the three months ended June 30, 2018 (344 ) 84 (260 ) Ending AOCI balance – June 30, 2018 $ (321 ) $ 78 $ (243 ) Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2017 $ — $ — $ — Other comprehensive income (loss) before reclassifications (338 ) 82 (256 ) Amount reclassified from accumulated other comprehensive income 17 (4 ) 13 Other comprehensive income (loss) for the six months ended June 30, 2018 (321 ) 78 (243 ) Ending AOCI balance – June 30, 2018 $ (321 ) $ 78 $ (243 ) |
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 AOCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from AOCI into Income, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (1 ) Operating expenses $ — Foreign currency forward contracts for the three months ended June 30, 2018 $ (260 ) Cost of revenues $ (16 ) Cost of revenues — Operating expenses $ 24 Operating expenses $ — Foreign currency forward contracts for the three months ended June 30, 2017 $ 126 Cost of revenues $ 4 Cost of revenues — Derivatives in Cash Flow Hedging Relationship Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Operating expenses $ (1 ) Operating expenses $ — Foreign currency forward contracts for the six months ended June 30, 2018 $ (243 ) Cost of revenues $ (16 ) Cost of revenues — Operating expenses $ 129 Operating expenses $ — Foreign currency forward contracts for the six months ended June 30, 2017 $ 231 Cost of revenues $ 25 Cost of revenues — |
Note 6 - Goodwill and Other I26
Note 6 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 March 31, 2018 $ 11,205 $ 1,519 $ 10,342 $ 30,806 $ 1,625 $ 550 $ 56,047 Additions to/(disposals from) domain portfolio, net (4 ) (24 ) - - - - (28 ) Amortization expense - - (450 ) (1,377 ) (487 ) (12 ) (2,326 ) Balances June 30, 2018 $ 11,201 $ 1,495 $ 9,892 $ 29,429 $ 1,138 $ 538 $ 53,693 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, 2017 $ 11,210 $ 1,551 $ 10,793 $ 32,186 $ 2,113 $ 561 $ 58,414 Acquisition of customer relationships - - - 1 - - 1 Additions to/(disposals from) domain portfolio, net (9 ) (56 ) - - - - (65 ) Amortization expense - - (901 ) (2,758 ) (975 ) (23 ) (4,657 ) Balances June 30, 2018 $ 11,201 $ 1,495 $ 9,892 $ 29,429 $ 1,138 $ 538 $ 53,693 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, Remainder of 2018 $ 4,579 2019 7,338 2020 7,171 2021 7,171 2022 7,171 Thereafter 7,567 Total $ 40,997 |
Note 7 - Loan Payable (Tables)
Note 7 - Loan Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 fee Less than 1.00 Greater than or equal to 1.00 and less than 2.00 Greater than or equal to 2.00 and less than 2.25 Greater than or equal to 2.25 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] | June 3 0 , 2018 December 31, 2017 Facility B 2,500 - Facility C 3,554 5,930 Facility D 63,373 71,823 Less: unamortized debt discount and issuance costs (694 ) (829 ) Total loan payable 68,733 76,924 Less: loan payable, current portion 17,721 18,290 Loan payable, long-term portion 51,012 58,634 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Remainder of 2018 8,771 2019 17,900 2020 17,900 2021 17,900 2022 5,225 Thereafter 1,731 $ 69,427 |
Note 9 - Basic and Diluted Ea28
Note 9 - Basic and Diluted Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Numerator for basic and diluted earnings per common share: Net income for the period $ 3,608 $ 5,242 $ 7,352 $ 7,686 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,597,228 10,528,219 10,592,994 10,501,407 Effect of outstanding stock options 205,779 264,812 204,023 284,278 Diluted weighted average number of shares outstanding 10,803,007 10,793,031 10,797,017 10,785,685 Basic earnings per common share $ 0.34 $ 0.50 $ 0.69 $ 0.73 Diluted earnings per common share $ 0.33 $ 0.49 $ 0.68 $ 0.71 |
Note 10 - Revenue (Tables)
Note 10 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Network Access Services: Mobile Services $ 22,411 $ 20,379 $ 44,283 $ 38,341 Other Services 1,895 1,248 3,631 2,535 Total Network Access Services 24,306 21,627 47,914 40,876 Domain Services: Wholesale Domain Services 42,540 48,550 100,968 87,644 Value Added Services 4,601 5,415 9,035 9,322 Total Wholesale 47,141 53,965 110,003 96,966 Retail 8,477 7,663 16,913 14,064 Portfolio 1,163 968 2,052 1,885 Total Domain Services 56,781 62,596 128,968 112,915 $ 81,087 $ 84,223 $ 176,882 $ 153,791 |
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Network Access Services: Mobile Services $ 11,978 $ 10,702 $ 23,243 $ 20,269 Other Services 1,290 946 2,230 1,771 Total Network Access Services 13,268 11,648 25,473 22,040 Domain Services: Wholesale Domain Services 35,844 42,449 87,161 76,913 Value Added Services 748 615 1,605 1,191 Total Wholesale 36,592 43,064 88,766 78,104 Retail 4,446 4,548 8,855 8,165 Portfolio 195 185 379 447 Total Domain Services 41,233 47,797 98,000 86,716 Network Expenses: Network, other costs 2,701 2,261 5,275 4,604 Network, depreciation and amortization costs 1,727 1,169 3,357 2,141 4,428 3,430 8,632 6,745 $ 58,929 $ 62,875 $ 132,105 $ 115,501 |
Contract with Customer, Asset and Liability [Table Text Block] | Three months ended June 30, 2018 Six months ended June 30, 2018 Balance, beginning of period $ 150,983 $ 160,582 Deferral of revenue 56,352 116,722 Recognition of deferred revenue 1 (55,284 ) (125,253 ) Balance, end of period $ 152,051 $ 152,051 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | June 30, 2018 Remainder of 2018 $ 85,722 2019 45,546 2020 8,640 2021 4,616 2022 2,987 Thereafter 4,321 Total $ 151,832 |
Note 11 - Contract Costs (Table
Note 11 - Contract Costs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Capitalized Contract Cost [Table Text Block] | Three months ended June 30, 2018 Six months ended June 30, 2018 (1 ) Balance, beginning of period $ 1,378 $ 1,404 Capitalization of costs 244 439 Amortization of costs (268 ) (489 ) Balance, end of period $ 1,354 $ 1,354 Three months ended June 30, 2018 Six months ended June 30, 2018 Balance, beginning of period $ 115,660 $ 127,003 Deferral of costs 41,177 87,160 Recognition of costs 1 (41,380 ) (98,708 ) Balance, end of period $ 115,456 $ 115,456 |
Note 12 - Segment Reporting (Ta
Note 12 - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Network Access Services Domain Services Consolidated Totals Three months ended June 30, 2018 Net Revenues $ 24,306 $ 56,781 $ 81,087 Cost of revenues Cost of revenues 13,268 41,233 54,501 Network expenses 640 2,061 2,701 Depreciation of property and equipment 903 325 1,228 Amortization of intangible assets 11 488 499 Total cost of revenues 14,822 44,107 58,929 Gross Profit 9,484 12,674 22,158 Expenses: Sales and marketing 7,852 Technical operations and development 2,355 General and administrative 4,256 Depreciation of property and equipment 102 Amortization of intangible assets 1,827 Loss (gain) on currency forward contracts 52 Income from operations 5,714 Other income (expenses), net (878 ) Income before provision for income taxes $ 4,836 Network Access Services Domain Services Consolidated Totals Three months ended June 30, 2017 Net Revenues $ 21,627 $ 62,596 $ 84,223 Cost of revenues Cost of revenues 11,648 47,797 59,445 Network expenses 410 1,851 2,261 Depreciation of property and equipment 489 225 714 Amortization of intangible assets 11 444 455 Total cost of revenues 12,558 50,317 62,875 Gross Profit 9,069 12,279 21,348 Expenses: Sales and marketing 7,447 Technical operations and development 1,798 General and administrative 3,285 Depreciation of property and equipment 165 Loss on disposal of property and equipment 2 Amortization of intangible assets 1,608 Loss (gain) on currency forward contracts (27 ) Income from operations 7,070 Other income (expenses), net (745 ) Income before provision for income taxes $ 6,325 Network Access Services Domain Services Consolidated Totals Six months ended June 30, 2018 Net Revenues $ 47,914 $ 128,968 $ 176,882 Cost of revenues Cost of revenues 25,473 98,000 123,473 Network expenses 1,130 4,145 5,275 Depreciation of property and equipment 1,737 622 2,359 Amortization of intangible assets 23 975 998 Total cost of revenues 28,363 103,742 132,105 Gross Profit 19,551 25,226 44,777 Expenses: Sales and marketing 16,217 Technical operations and development 4,450 General and administrative 8,786 Depreciation of property and equipment 203 Amortization of intangible assets 3,659 Loss (gain) on currency forward contracts 49 Income from operations 11,413 Other income (expenses), net (1,650 ) Income before provision for income taxes $ 9,763 Network Access Services Domain Services Consolidated Totals Six months ended June 30, 2017 Net Revenues $ 40,876 $ 112,915 $ 153,791 Cost of revenues Cost of revenues 22,040 86,716 108,756 Network expenses 951 3,653 4,604 Depreciation of property and equipment 916 389 1,305 Amortization of intangible assets 23 813 836 Total cost of revenues 23,930 91,571 115,501 Gross Profit 16,946 21,344 38,290 Expenses: Sales and marketing 14,667 Technical operations and development 3,492 General and administrative 6,742 Depreciation of property and equipment 331 Loss on disposal of property and equipment 2 Amortization of intangible assets 2,989 Loss (gain) on currency forward contracts (61 ) Income from operations 10,128 Other income (expenses), net (1,484 ) Income before provision for income taxes $ 8,644 |
Schedule of Property Plant and Equipment by Geographic Region [Table Text Block] | June 30, 2018 December 31, 2017 Canada $ 1,518 $ 1,176 United States 32,979 23,417 Germany 41 27 $ 34,538 $ 24,620 |
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | June 30, 2018 December 31, 2017 Canada $ 7,085 $ 7,749 United States 33,895 37,783 Germany 17 120 $ 40,997 $ 45,652 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for doubtful accounts excluding provision for credit notes Balance at beginning of period Charged to costs and expenses Write-offs during period Balance at end of period Six months ended June 30, 2018 $ 168 $ (36 ) $ - $ 132 Year ended December 31, 2017 $ 164 $ 4 $ - $ 168 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Accumulated Additional Retained other Total Common stock paid in earnings comprehensive stockholders' Number Amount capital (deficit) income (loss) equity Balances, March 31, 2018 10,592,115 $ 15,426 $ 2,547 $ 47,419 $ 17 $ 65,409 Exercise of stock options 16,153 122 (90 ) - - 32 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (4,902 ) (141 ) - - (141 ) Stock-based compensation (note 14) - - 615 - - 615 Net income - - - 3,608 - 3,608 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - - - - Other comprehensive loss - - - - (260 ) (260 ) Balances, June 30, 2018 10,603,366 $ 15,548 $ 2,931 $ 51,027 $ (243 ) $ 69,263 Accumulated Additional Retained other Total Common stock paid in earnings comprehensive stockholders' Number Amount capital (deficit) income (loss) equity Balances, December 31, 2017 10,583,879 $ 15,368 $ 2,167 $ 42,676 $ - $ 60,211 Impact of Adoption of ASU 2014-09 - - - 1,063 - 1,063 Balance on January 1, 2018 10,583,879 15,368 2,167 43,739 - 61,274 Exercise of stock options 28,716 180 (141 ) - - 39 Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (9,229 ) - (288 ) - - (288 ) Stock-based compensation (note 14) - - 1,193 - - 1,193 Net income - - - 7,352 - 7,352 Accretion of redeemable non-controlling interest in Ting Virginia, LLC. - - - (64 ) - (64 ) Other comprehensive loss - - - - (243 ) (243 ) Balances, June 30, 2018 10,603,366 $ 15,548 $ 2,931 $ 51,027 $ (243 ) $ 69,263 |
Note 14 - Share-based Payments
Note 14 - Share-based Payments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Three months ended June 30, Three months ended June 30, 2018 2017 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 634,883 $ 37.48 430,611 $ 15.46 Granted 128,566 64.10 - - Exercised (16,153 ) 12.26 (66,746 ) 8.26 Forfeited (13,100 ) 55.04 (257 ) 11.43 Expired - - - - Outstanding, end of period 734,196 42.39 363,608 16.79 Options exercisable, end of period 229,780 $ 16.92 213,769 $ 11.46 Six months ended June 30, Six months ended June 30, 2018 2017 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 653,571 $ 36.69 474,501 $ 12.67 Granted 139,566 63.66 32,875 40.56 Exercised (28,716 ) 10.30 (135,622 ) 8.04 Forfeited (30,225 ) 47.96 (8,146 ) 18.24 Expired - - - - Outstanding, end of period 734,196 42.39 363,608 16.79 Options exercisable, end of period 229,780 $ 16.92 213,769 $ 11.46 |
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 75,367 $ 6.94 1.2 $ 4,048 75,367 $ 6.94 1.2 $ 4,048 $10.16 - $19.95 109,488 16.38 3.0 4,847 83,288 15.99 2.8 3,720 $21.10 - $27.53 72,500 23.76 3.6 2,674 52,500 24.78 3.2 1,883 $35.25 - $37.35 14,375 35.89 4.9 356 10,625 36.11 4.7 261 $43.15 - $47.00 18,500 44.19 5.6 305 8,000 43.75 5.6 135 $53.20 - $58.65 315,400 55.51 5.9 1,622 - - - - $64.10 - $64.10 128,566 64.10 6.9 - - - - - 734,196 $ 42.39 4.9 $ 13,852 229,780 $ 16.92 2.6 $ 10,047 |
Note 15 - Fair Value Measurem34
Note 15 - Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 3 0 , 2018 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset $ — $ — $ — $ — Derivative instrument liability $ — $ 364 $ — $ 364 |
Note 3 - Recent Accounting Pr35
Note 3 - Recent Accounting Pronouncements (Details Textual) - USD ($) | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | [1] |
Capitalized Contract Cost, Net, Total | $ 1,354,000 | $ 1,400,000 | ||
Retained Earnings (Accumulated Deficit), Ending Balance | 51,027,000 | $ 42,676,000 | ||
Deferred Tax Liabilities, Net, Noncurrent | 19,577,000 | $ 19,834,000 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Capitalized Contract Cost, Net, Total | (1,354,000) | |||
Retained Earnings (Accumulated Deficit), Ending Balance | (1,025,000) | (1,100,000) | ||
Deferred Tax Liabilities, Net, Noncurrent | $ (329,000) | $ (300,000) | ||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 3 - Recent Accounting Pr36
Note 3 - Recent Accounting Pronouncements - Impact of Changes to Financial Statements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | [1] | |||
Assets | |||||||||
Contract costs (note 11) | $ 1,354,000 | $ 1,354,000 | $ 1,400,000 | ||||||
Total assets | 340,282,000 | 340,282,000 | $ 350,650,000 | ||||||
Liabilities and Shareholders' Equity | |||||||||
Deferred tax liability (note 8) | 19,577,000 | 19,577,000 | 19,834,000 | ||||||
Retained earnings | 51,027,000 | 51,027,000 | 42,676,000 | ||||||
Total Liabilities and Shareholders' Equity | 340,282,000 | 340,282,000 | $ 350,650,000 | ||||||
Sales and marketing | 7,852,000 | $ 7,447,000 | [2] | 16,217,000 | $ 14,667,000 | [2] | |||
Income before provision for income taxes | 4,836,000 | 6,325,000 | [2] | 9,763,000 | 8,644,000 | [2] | |||
Provision for income tax (note 8) | 1,228,000 | 1,083,000 | 2,411,000 | 958,000 | |||||
Net income for the period | 3,608,000 | 5,242,000 | [2],[3] | 7,352,000 | 7,686,000 | [2],[3] | |||
Change in Capitalized Contract Costs | 25,000 | [3] | 50,000 | [3] | |||||
Deferred income taxes (recovery) | (445,000) | (2,885,000) | [3] | (492,000) | (1,565,000) | [3] | |||
Net cash provided by operating activities | 5,754,000 | $ 8,131,000 | [3] | 15,327,000 | $ 10,534,000 | [3] | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||||||||
Assets | |||||||||
Contract costs (note 11) | (1,354,000) | (1,354,000) | |||||||
Total assets | (1,354,000) | (1,354,000) | |||||||
Liabilities and Shareholders' Equity | |||||||||
Deferred tax liability (note 8) | (329,000) | (329,000) | (300,000) | ||||||
Retained earnings | (1,025,000) | (1,025,000) | $ (1,100,000) | ||||||
Total Liabilities and Shareholders' Equity | (1,354,000) | (1,354,000) | |||||||
Sales and marketing | (25,000) | (50,000) | |||||||
Income before provision for income taxes | 25,000 | 50,000 | |||||||
Provision for income tax (note 8) | 6,000 | 12,000 | |||||||
Net income for the period | 19,000 | 38,000 | |||||||
Change in Capitalized Contract Costs | (25,000) | (50,000) | |||||||
Deferred income taxes (recovery) | 6,000 | 12,000 | |||||||
Net cash provided by operating activities | 0 | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||
Assets | |||||||||
Contract costs (note 11) | 0 | 0 | |||||||
Total assets | 338,928,000 | 338,928,000 | |||||||
Liabilities and Shareholders' Equity | |||||||||
Deferred tax liability (note 8) | 19,248,000 | 19,248,000 | |||||||
Retained earnings | 50,002,000 | 50,002,000 | |||||||
Total Liabilities and Shareholders' Equity | 338,928,000 | 338,928,000 | |||||||
Sales and marketing | 7,827,000 | 16,167,000 | |||||||
Income before provision for income taxes | 4,861,000 | 9,813,000 | |||||||
Provision for income tax (note 8) | 1,234,000 | 2,423,000 | |||||||
Net income for the period | 3,627,000 | 7,390,000 | |||||||
Change in Capitalized Contract Costs | 0 | 0 | |||||||
Deferred income taxes (recovery) | (439,000) | (480,000) | |||||||
Net cash provided by operating activities | $ 5,754,000 | $ 15,327,000 | |||||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||||
[3] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 4 - Acquisitions (Details
Note 4 - Acquisitions (Details Textual) - USD ($) $ in Millions | Feb. 13, 2018 | Feb. 01, 2017 | Jan. 20, 2017 | Feb. 27, 2015 |
Ting Virginia LLC [Member] | ||||
Business Combination, Consideration Transferred, Total | $ 1.2 | |||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 1.2 | |||
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, Total | $ 2 | $ 3.5 | ||
Ting Virginia LLC [Member] | Exercisable by the Minority Shareholders [Member] | ||||
Business Combination, Interest Subject to Call Option, Not Exercised in Period | 10.00% | |||
eNom, Incorporated [Member] | ||||
Business Combination, Consideration Transferred, Total | $ 77.8 | |||
Payments to Acquire Businesses, Gross | 83.5 | |||
Business Combination, Consideration Transferred, Estimated Price Adjusments | $ 5.7 |
Note 5 - Derivative Instrumen38
Note 5 - Derivative Instruments and Hedging Activities (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative, Notional Amount | $ 16,862,000 | $ 16,862,000 | ||
Foreign Exchange Forward [Member] | ||||
Derivative, Notional Amount | 16,900,000 | 16,900,000 | ||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | 14,900,000 | 14,900,000 | ||
Forward Contracts [Member] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (0.10) | (0.10) | $ 0.10 | |
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (0.10) | $ 0.10 | $ (0.10) | $ 0.10 |
Note 5 - Derivative Instrumen39
Note 5 - Derivative Instruments and Hedging Activities - Foreign Currency Forward Contracts (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Notional amount of U.S. dollars | $ 16,862 |
Weighted average exchange rate of U.S. dollars | 1.2828 |
Fair value | $ (364) |
Foreign Exchange Forward 1 [Member] | |
Notional amount of U.S. dollars | $ 6,130 |
Weighted average exchange rate of U.S. dollars | 1.2851 |
Fair value | $ (134) |
Foreign Exchange Forward 2 [Member] | |
Notional amount of U.S. dollars | $ 6,049 |
Weighted average exchange rate of U.S. dollars | 1.2802 |
Fair value | $ (144) |
Foreign Exchange Forward 3 [Member] | |
Notional amount of U.S. dollars | $ 1,640 |
Weighted average exchange rate of U.S. dollars | 1.2852 |
Fair value | $ (30) |
Foreign Exchange Forward 4 [Member] | |
Notional amount of U.S. dollars | $ 1,599 |
Weighted average exchange rate of U.S. dollars | 1.2831 |
Fair value | $ (29) |
Foreign Exchange Forward 5 [Member] | |
Notional amount of U.S. dollars | $ 1,444 |
Weighted average exchange rate of U.S. dollars | 1.2809 |
Fair value | $ (27) |
Note 5 - Derivative Instrumen40
Note 5 - Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Foreign currency forward contracts | $ (364) | |
Derivative Instruments [Member] | ||
Foreign currency forward contracts | (364) | |
Derivative Instruments [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Foreign currency forward contracts | (321) | |
Derivative Instruments [Member] | Not Designated as Hedging Instrument [Member] | ||
Foreign currency forward contracts | $ (43) |
Note 5 - Derivative Instrumen41
Note 5 - Derivative Instruments and Hedging Activities - Movement in AOCI Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | [2] | Jun. 30, 2018 | Jun. 30, 2017 | [2] | ||
AOCI balance, Gains and losses on cash flow hedges | $ 23 | ||||||
Other comprehensive income (loss) before reclassifications, Gains and losses on cash flow hedges | (361) | (338) | |||||
Amount reclassified from accumulated other comprehensive income, Gains and losses on cash flow hedges | 17 | 17 | |||||
Other comprehensive income (loss), Gains and losses on cash flow hedges | (344) | (321) | |||||
AOCI balance, Gains and losses on cash flow hedges | (321) | (321) | |||||
AOCI balance, Tax impact | (6) | ||||||
Other comprehensive income (loss) before reclassifications, Tax impact | 88 | 82 | |||||
Amount reclassified from accumulated other comprehensive income, Tax impact | (4) | (4) | |||||
Other comprehensive income (loss), Tax impact | 84 | 78 | |||||
AOCI balance, Tax impact | 78 | 78 | |||||
AOCI balance | 17 | [1] | |||||
Other comprehensive income (loss) before reclassifications | (273) | $ 143 | (256) | $ 329 | |||
Amount reclassified from accumulated other comprehensive income | 13 | $ (17) | 13 | $ (98) | |||
Other comprehensive income (loss) | (260) | (243) | |||||
AOCI balance | $ (243) | $ (243) | |||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 5 - Derivative Instrumen42
Note 5 - Derivative Instruments and Hedging Activities - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Other comprehensive income (loss) before reclassifications | $ (273) | $ 143 | [1] | $ (256) | $ 329 | [1] |
Operating Expense [Member] | ||||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1) | 24 | (1) | 129 | ||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||
Cost of Sales [Member] | ||||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (16) | 4 | (16) | 25 | ||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||
Other comprehensive income (loss) before reclassifications | $ (260) | $ 126 | $ (243) | $ 231 | ||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 6 - Goodwill and Other I43
Note 6 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill, Ending Balance | $ 90,054 | $ 90,054 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 20,000 | |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Domain Services Operating Segment [Member] | ||
Goodwill, Ending Balance | $ 87,900 | |
Goodwill Percentage Related to Operating Segments | 98.00% | |
Network Access Services [Member] | ||
Goodwill, Ending Balance | $ 2,200 | |
Goodwill Percentage Related to Operating Segments | 2.00% |
Note 6 - Goodwill and Other I44
Note 6 - Goodwill and Other Intangible Assets - Acquired Intangible Assets by Major Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | [2] | Jun. 30, 2018 | Jun. 30, 2017 | [2] | ||
Balances | $ 56,047 | $ 58,414 | [1] | ||||
Additions to/(disposals from) domain portfolio, net | (28) | $ (7) | (65) | $ (18) | |||
Amortization expense | (2,326) | $ (2,064) | (4,657) | $ (3,825) | |||
Finite-lived intangible assets acquired | 1 | ||||||
Balances | 53,693 | 53,693 | |||||
Brand [Member] | |||||||
Balances | 10,342 | 10,793 | |||||
Additions to/(disposals from) domain portfolio, net | |||||||
Amortization expense | (450) | (901) | |||||
Finite-lived intangible assets acquired | |||||||
Balances | 9,892 | 9,892 | |||||
Customer Relationships [Member] | |||||||
Balances | 30,806 | 32,186 | |||||
Additions to/(disposals from) domain portfolio, net | |||||||
Amortization expense | (1,377) | (2,758) | |||||
Finite-lived intangible assets acquired | 1 | ||||||
Balances | 29,429 | 29,429 | |||||
Technology-Based Intangible Assets [Member] | |||||||
Balances | 1,625 | 2,113 | |||||
Additions to/(disposals from) domain portfolio, net | |||||||
Amortization expense | (487) | (975) | |||||
Finite-lived intangible assets acquired | |||||||
Balances | 1,138 | 1,138 | |||||
Network Rights [Member] | |||||||
Balances | 550 | 561 | |||||
Additions to/(disposals from) domain portfolio, net | |||||||
Amortization expense | (12) | (23) | |||||
Finite-lived intangible assets acquired | |||||||
Balances | 538 | 538 | |||||
Surname Domain Names [Member] | |||||||
Balances | 11,205 | 11,210 | |||||
Additions to/(disposals from) domain portfolio, net | (4) | (9) | |||||
Amortization expense | |||||||
Finite-lived intangible assets acquired | |||||||
Balances | 11,201 | 11,201 | |||||
Direct Navigation Domain Names [Member] | |||||||
Balances | 1,519 | 1,551 | |||||
Additions to/(disposals from) domain portfolio, net | (24) | (56) | |||||
Amortization expense | |||||||
Finite-lived intangible assets acquired | |||||||
Balances | $ 1,495 | $ 1,495 | |||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 6 - Goodwill and Other I45
Note 6 - Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Remainder of 2018 | $ 4,579 | |
2,019 | 7,338 | |
2,020 | 7,171 | |
2,021 | 7,171 | |
2,022 | 7,171 | |
Thereafter | 7,567 | |
Total | $ 40,997 | $ 45,652 |
Note 7 - Loan Payable (Details
Note 7 - Loan Payable (Details Textual) $ in Thousands | Jan. 20, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | [1] | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | [1] | Oct. 01, 2018 | Sep. 30, 2018 | Jan. 24, 2018 | Dec. 31, 2017USD ($) | Jan. 19, 2017USD ($) |
Payments of Financing Costs, Total | $ 600 | $ 13 | $ 4 | $ 604 | ||||||||
Foreign Exchange Risk [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 3,500 | $ 3,500 | ||||||||||
Line of Credit Facility Covenant Period | 1 year 180 days | |||||||||||
Derivative Asset, Fair Value, Gross Asset, Total | 21,600 | $ 21,600 | ||||||||||
Second Interim Amendment [Member] | ||||||||||||
Credit Agreement, Maximum Aggregate Amount Held in Account With Certain Bank | $ 3,000 | $ 3,000 | ||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140,000 | |||||||||||
Debt Instrument, Term | 4 years | |||||||||||
Maximum Total Funded Debt to EBITDA Ratio | 2.25 | 2.25 | 2.5 | |||||||||
Repayment Obligation, Percentage of Excess Cash Flow | 50.00% | |||||||||||
Minimum Fixed Charge Coverage Ratio | 1.2 | 1.2 | ||||||||||
Maximum Annual Capital Expenditures Requirement | $ 50,000 | |||||||||||
Line of Credit Facility, Maximum Funded Share Repurchases Ceiling | 20,000 | |||||||||||
Maximum Ratio of Funded Share Repurchases to 12 Months Trailing EDITDA | 1.5 | |||||||||||
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 | |||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility C [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,500 | $ 40,000 | ||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Non-revolving Facility D [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 84,500 | |||||||||||
Long-term Line of Credit, Total | 84,500 | |||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Revolving Credit Facility A [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | |||||||||||
Bank of Montreal and Royal Bank of Canada [Member] | Revolving Reducing Term Facility B [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000 | |||||||||||
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 Nova [member] | Corporate Credit Card Program [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |||||||||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 7 - Loan Payable - Schedul
Note 7 - Loan Payable - Schedule of Standby Fees Based on Total Funded Debt to EBITDA Ratio (Details) | 6 Months Ended |
Jun. 30, 2018 | |
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 7 - Loan Payable - Sched48
Note 7 - Loan Payable - Schedule of Loans Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Loans payable | $ 68,733 | $ 76,924 | |
Less: unamortized debt discount and issuance costs | (694) | (829) | |
Less: loan payable, current portion | 17,721 | 18,290 | |
Loan payable, long-term portion | 51,012 | 58,634 | [1] |
Revolving Reducing Term Facility B [Member] | |||
Loans payable | 2,500 | ||
Non-revolving Facility C [Member] | |||
Loans payable | 3,554 | 5,930 | |
Non-revolving Facility D [Member] | |||
Loans payable | $ 63,373 | $ 71,823 | |
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 7 - Loan Payable - Princip
Note 7 - Loan Payable - Principal Repayments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Remainder of 2018 | $ 8,771 |
2,019 | 17,900 |
2,020 | 17,900 |
2,021 | 17,900 |
2,022 | 5,225 |
Thereafter | 1,731 |
$ 69,427 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Total | $ 1,228,000 | $ 1,083,000 | $ 2,411,000 | $ 958,000 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | 4,800,000 | 6,300,000 | 9,800,000 | 8,600,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | 0 | $ 0 | ||
Accounting Standards Update 2016-09 [Member] | |||||
Income Tax Expense (Benefit), Total | $ 200,000 | $ 1,200,000 | $ 300,000 | $ 2,200,000 |
Note 9 - Basic and Diluted Ea51
Note 9 - Basic and Diluted Earnings Per Common Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock Repurchased and Retired During Period, Shares | 0 | 0 | 0 | 0 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 419,000 | 18,500 | 449,000 | 23,500 |
Note 9 - Basic and Diluted Ea52
Note 9 - Basic and Diluted Earnings Per Common Share - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Numerator for basic and diluted earnings per common share: | ||||||
Net income for the period | $ 3,608 | $ 5,242 | [1],[2] | $ 7,352 | $ 7,686 | [1],[2] |
Basic weighted average number of common shares outstanding (in shares) | 10,597,228 | 10,528,219 | [1] | 10,592,994 | 10,501,407 | [1] |
Effect of outstanding stock options (in shares) | 205,779 | 264,812 | 204,023 | 284,278 | ||
Diluted weighted average number of shares outstanding (in shares) | 10,803,007 | 10,793,031 | [1] | 10,797,017 | 10,785,685 | [1] |
Basic earnings per common share (in dollars per share) | $ 0.34 | $ 0.50 | [1] | $ 0.69 | $ 0.73 | [1] |
Diluted earnings per common share (in dollars per share) | $ 0.33 | $ 0.49 | [1] | $ 0.68 | $ 0.71 | [1] |
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | |||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 10 - Revenue (Details Text
Note 10 - Revenue (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017 | Jun. 30, 2018USD ($) | Jun. 30, 2017 | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Jan. 05, 2018 | Jan. 01, 2018USD ($) | ||
Contract with Customer, Liability, Total | $ 152,051 | $ 152,051 | $ 160,582 | $ 150,983 | $ 160,600 | ||||
Contract with Customer, Liability, Revenue Recognized | [1] | $ 55,284 | 125,253 | ||||||
Namecheap, Inc. [Member] | |||||||||
Domain Name Transfer to Counter Party | 2,650,000 | ||||||||
Contract with Customer, Liability, Revenue Recognized | $ 14,600 | ||||||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||||||||
Number of Customers | 0 | 0 | 1 | 0 | |||||
Concentration Risk, Percentage | 11.00% | ||||||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||||||
Number of Customers | 0 | 0 | |||||||
[1] | As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5, 2018, recognized revenue for the six months ended June 30, 2018 includes $14.6 million related to previously deferred revenue for these names. |
Note 10 - Revenue - Disaggregat
Note 10 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Net Revenues | $ 81,087 | $ 84,223 | [1] | $ 176,882 | $ 153,791 | [1] |
Network Access Services [Member] | ||||||
Net Revenues | 24,306 | 21,627 | 47,914 | 40,876 | ||
Domain Name Services [Member] | ||||||
Net Revenues | 56,781 | 62,596 | 128,968 | 112,915 | ||
Domain Name Services [Member] | Wholesale [Member] | ||||||
Net Revenues | 47,141 | 53,965 | 110,003 | 96,966 | ||
Domain Name Services [Member] | Retail Services [Member] | ||||||
Net Revenues | 8,477 | 7,663 | 16,913 | 14,064 | ||
Domain Name Services [Member] | Portfolio [Member] | ||||||
Net Revenues | 1,163 | 968 | 2,052 | 1,885 | ||
Mobile Services [Member] | Network Access Services [Member] | ||||||
Net Revenues | 22,411 | 20,379 | 44,283 | 38,341 | ||
Other Services [Member] | Network Access Services [Member] | ||||||
Net Revenues | 1,895 | 1,248 | 3,631 | 2,535 | ||
Domain Services [Member] | Domain Name Services [Member] | Wholesale [Member] | ||||||
Net Revenues | 42,540 | 48,550 | 100,968 | 87,644 | ||
Value Added Services [Member] | Domain Name Services [Member] | Wholesale [Member] | ||||||
Net Revenues | $ 4,601 | $ 5,415 | $ 9,035 | $ 9,322 | ||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 10 - Revenue - Cost of Rev
Note 10 - Revenue - Cost of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Cost of revenues | $ 54,501 | $ 59,445 | [1] | $ 123,473 | $ 108,756 | [1] |
Network, other costs | 2,701 | 2,261 | [1] | 5,275 | 4,604 | [1] |
Cost of revenues | 58,929 | 62,875 | [1] | 132,105 | 115,501 | [1] |
Network Expenses [Member] | ||||||
Network, other costs | 2,701 | 2,261 | 5,275 | 4,604 | ||
Network, depreciation and amortization costs | 1,727 | 1,169 | 3,357 | 2,141 | ||
Cost of revenues | 4,428 | 3,430 | 8,632 | 6,745 | ||
Network Access Services [Member] | ||||||
Cost of revenues | 13,268 | 11,648 | 25,473 | 22,040 | ||
Network, other costs | 640 | 410 | 1,130 | 951 | ||
Cost of revenues | 14,822 | 12,558 | 28,363 | 23,930 | ||
Network Access Services [Member] | Mobile Services [Member] | ||||||
Cost of revenues | 11,978 | 10,702 | 23,243 | 20,269 | ||
Network Access Services [Member] | Other Services [Member] | ||||||
Cost of revenues | 1,290 | 946 | 2,230 | 1,771 | ||
Domain Name Services [Member] | ||||||
Cost of revenues | 41,233 | 47,797 | 98,000 | 86,716 | ||
Network, other costs | 2,061 | 1,851 | 4,145 | 3,653 | ||
Cost of revenues | 44,107 | 50,317 | 103,742 | 91,571 | ||
Domain Name Services [Member] | Wholesale [Member] | ||||||
Cost of revenues | 36,592 | 43,064 | 88,766 | 78,104 | ||
Domain Name Services [Member] | Retail Services [Member] | ||||||
Cost of revenues | 4,446 | 4,548 | 8,855 | 8,165 | ||
Domain Name Services [Member] | Portfolio [Member] | ||||||
Cost of revenues | 195 | 185 | 379 | 447 | ||
Domain Name Services [Member] | Domain Services [Member] | Wholesale [Member] | ||||||
Cost of revenues | 35,844 | 42,449 | 87,161 | 76,913 | ||
Domain Name Services [Member] | Value Added Services [Member] | Wholesale [Member] | ||||||
Cost of revenues | $ 748 | $ 615 | $ 1,605 | $ 1,191 | ||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 10 - Revenue - Contract Ba
Note 10 - Revenue - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Balance, beginning of period | $ 150,983 | $ 160,582 | |
Deferral of revenue | 56,352 | 116,722 | |
Recognition of deferred revenue | [1] | (55,284) | (125,253) |
Balance, end of period | $ 152,051 | $ 152,051 | |
[1] | As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5, 2018, recognized revenue for the six months ended June 30, 2018 includes $14.6 million related to previously deferred revenue for these names. |
Note 10 - Revenue - Remaining P
Note 10 - Revenue - Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Remaining performance obligations | $ 85,722 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Remaining performance obligations | 45,546 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Remaining performance obligations | 8,640 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Remaining performance obligations | 4,616 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Remaining performance obligations | 2,987 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Remaining performance obligations | 4,321 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Remaining performance obligations | $ 151,832 |
Note 11 - Contract Costs (Detai
Note 11 - Contract Costs (Details Textual) xbrli-pure in Thousands | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | [1] | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | [1] | Mar. 31, 2018USD ($) | Jan. 05, 2018 | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |||||
Capitalized Contract Cost, Net, Total | $ 1,354,000 | $ 1,354,000 | $ 1,400,000 | |||||||||||
Change in Capitalized Contract Costs | 25,000 | 50,000 | ||||||||||||
Capitalized Contract Cost, Impairment Loss | 0 | |||||||||||||
Contract with Customer, Liability, Revenue Recognized | [2] | 55,284,000 | 125,253,000 | |||||||||||
Deferred Costs of Acquisition [Member] | ||||||||||||||
Capitalized Contract Cost, Net, Total | 1,354,000 | [3],[4] | 1,354,000 | [3],[4] | $ 1,378,000 | $ 1,404,000 | [3],[4] | |||||||
Increase (Decrease) in Capitalized Costs | 244,000 | 439,000 | ||||||||||||
Capitalized Contract Cost, Amortization | $ 268,000 | 489,000 | ||||||||||||
Capitalized Contract Cost, Impairment Loss | $ 0 | |||||||||||||
Deferred Costs of Acquisition [Member] | Minimum [Member] | ||||||||||||||
Capitalized Contract Cost, Amortization Period | 2 years | 2 years | ||||||||||||
Deferred Costs of Acquisition [Member] | Maximum [Member] | ||||||||||||||
Capitalized Contract Cost, Amortization Period | 10 years | 10 years | ||||||||||||
Change in Capitalized Contract Costs | $ 100,000 | $ 100,000 | ||||||||||||
Domain Registration Costs [Member] | ||||||||||||||
Capitalized Contract Cost, Net, Total | 115,456,000 | 115,456,000 | $ 115,660,000 | $ 127,003,000 | ||||||||||
Increase (Decrease) in Capitalized Costs | 41,177,000 | 87,160,000 | ||||||||||||
Capitalized Contract Cost, Amortization | 41,380,000 | 98,708,000 | ||||||||||||
Change in Capitalized Contract Costs | 200,000 | 11,500,000 | ||||||||||||
Capitalized Contract Cost, Impairment Loss | $ 0 | 0 | ||||||||||||
Domain Name Transfer to Counter Party | 2,650 | |||||||||||||
Domain Registration Costs [Member] | Domain Services [Member] | ||||||||||||||
Contract with Customer, Liability, Revenue Recognized | $ 14,500,000 | |||||||||||||
Domain Registration Costs [Member] | Minimum [Member] | ||||||||||||||
Capitalized Contract Cost, Amortization Period | 1 year | 1 year | ||||||||||||
Domain Registration Costs [Member] | Maximum [Member] | ||||||||||||||
Capitalized Contract Cost, Amortization Period | 10 years | 10 years | ||||||||||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | |||||||||||||
[2] | As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5, 2018, recognized revenue for the six months ended June 30, 2018 includes $14.6 million related to previously deferred revenue for these names. | |||||||||||||
[3] | As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5th, 2018, recognized costs for the six months ended June 30, 2018 includes $14.5 million related to previously deferred revenue for these names. | |||||||||||||
[4] | The beginning balance consists entirely of a cumulative adjustment recorded on January 1, 2018 as a result of the modified retrospective adoption of ASU 2014-09. See note 3 for additional information. |
Note 11 - Contract Costs - Capi
Note 11 - Contract Costs - Capitalized Contract Costs Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | |||
Balance | $ 1,354,000 | $ 1,354,000 | ||
Deferred Costs of Acquisition [Member] | ||||
Balance | 1,378,000 | 1,404,000 | [1],[2] | |
Capitalization of costs | 244,000 | 439,000 | ||
Amortization of costs | (268,000) | (489,000) | ||
Balance | [1],[2] | 1,354,000 | 1,354,000 | |
Domain Registration Costs [Member] | ||||
Balance | 115,660,000 | 127,003,000 | ||
Capitalization of costs | 41,177,000 | 87,160,000 | ||
Amortization of costs | (41,380,000) | (98,708,000) | ||
Balance | $ 115,456,000 | $ 115,456,000 | ||
[1] | As a result of the bulk transfer of 2.65 million domain names to Namecheap on January 5th, 2018, recognized costs for the six months ended June 30, 2018 includes $14.5 million related to previously deferred revenue for these names. | |||
[2] | The beginning balance consists entirely of a cumulative adjustment recorded on January 1, 2018 as a result of the modified retrospective adoption of ASU 2014-09. See note 3 for additional information. |
Note 12 - Segment Reporting (De
Note 12 - Segment Reporting (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Number of Operating Segments | 2 |
Note 12 - Segment Reporting - I
Note 12 - Segment Reporting - Information by Reportable Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Net Revenues | $ 81,087,000 | $ 84,223,000 | [1] | $ 176,882,000 | $ 153,791,000 | [1] |
Cost of revenues | 54,501,000 | 59,445,000 | [1] | 123,473,000 | 108,756,000 | [1] |
Network expenses | 2,701,000 | 2,261,000 | [1] | 5,275,000 | 4,604,000 | [1] |
Depreciation of property and equipment | 1,228,000 | 714,000 | [1] | 2,359,000 | 1,305,000 | [1] |
Amortization of intangible assets | 499,000 | 455,000 | [1] | 998,000 | 836,000 | [1] |
Total cost of revenues | 58,929,000 | 62,875,000 | [1] | 132,105,000 | 115,501,000 | [1] |
Gross Profit | 22,158,000 | 21,348,000 | [1] | 44,777,000 | 38,290,000 | [1] |
Sales and marketing | 7,852,000 | 7,447,000 | [1] | 16,217,000 | 14,667,000 | [1] |
Technical operations and development | 2,355,000 | 1,798,000 | [1] | 4,450,000 | 3,492,000 | [1] |
General and administrative | 4,256,000 | 3,285,000 | [1] | 8,786,000 | 6,742,000 | [1] |
Depreciation of property and equipment | 102,000 | 165,000 | [1] | 203,000 | 331,000 | [1] |
Amortization of intangible assets | 1,827,000 | 1,608,000 | [1] | 3,659,000 | 2,989,000 | [1] |
Loss (gain) on currency forward contracts | 52,000 | (27,000) | [1] | 49,000 | (61,000) | [1] |
Income from operations | 5,714,000 | 7,070,000 | [1] | 11,413,000 | 10,128,000 | [1] |
Other income (expenses), net | (878,000) | (745,000) | [1] | (1,650,000) | (1,484,000) | [1] |
Income before provision for income taxes | 4,836,000 | 6,325,000 | [1] | 9,763,000 | 8,644,000 | [1] |
Loss on disposal of property and equipment | 2,000 | [1] | 2,000 | [1] | ||
Network Access Services [Member] | ||||||
Net Revenues | 24,306,000 | 21,627,000 | 47,914,000 | 40,876,000 | ||
Cost of revenues | 13,268,000 | 11,648,000 | 25,473,000 | 22,040,000 | ||
Network expenses | 640,000 | 410,000 | 1,130,000 | 951,000 | ||
Depreciation of property and equipment | 903,000 | 489,000 | 1,737,000 | 916,000 | ||
Amortization of intangible assets | 11,000 | 11,000 | 23,000 | 23,000 | ||
Total cost of revenues | 14,822,000 | 12,558,000 | 28,363,000 | 23,930,000 | ||
Gross Profit | 9,484,000 | 9,069,000 | 19,551,000 | 16,946,000 | ||
Loss on disposal of property and equipment | ||||||
Domain Name Services [Member] | ||||||
Net Revenues | 56,781,000 | 62,596,000 | 128,968,000 | 112,915,000 | ||
Cost of revenues | 41,233,000 | 47,797,000 | 98,000,000 | 86,716,000 | ||
Network expenses | 2,061,000 | 1,851,000 | 4,145,000 | 3,653,000 | ||
Depreciation of property and equipment | 325,000 | 225,000 | 622,000 | 389,000 | ||
Amortization of intangible assets | 488,000 | 444,000 | 975,000 | 813,000 | ||
Total cost of revenues | 44,107,000 | 50,317,000 | 103,742,000 | 91,571,000 | ||
Gross Profit | $ 12,674,000 | 12,279,000 | $ 25,226,000 | 21,344,000 | ||
Loss on disposal of property and equipment | ||||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 12 - Segment Reporting - S
Note 12 - Segment Reporting - Summary of Property and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Property and equipment | $ 34,538 | $ 24,620 | [1] |
CANADA | |||
Property and equipment | 1,518 | 1,176 | |
UNITED STATES | |||
Property and equipment | 32,979 | 23,417 | |
GERMANY | |||
Property and equipment | $ 41 | $ 27 | |
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 12 - Segment Reporting -63
Note 12 - Segment Reporting - Summary of Amortizable Intangible Assets by Geographic Region (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortizable intangible assets | $ 40,997 | $ 45,652 |
CANADA | ||
Amortizable intangible assets | 7,085 | 7,749 |
UNITED STATES | ||
Amortizable intangible assets | 33,895 | 37,783 |
GERMANY | ||
Amortizable intangible assets | $ 17 | $ 120 |
Note 12 - Segment Reporting -64
Note 12 - Segment Reporting - Summary of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Balance at beginning of period | $ 168 | $ 164 |
Charged to (recovered) costs and expenses | (36) | 4 |
Balance at end of period | $ 132 | $ 168 |
Note 13 - Stockholders' Equit65
Note 13 - Stockholders' Equity (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Feb. 14, 2018 | Mar. 01, 2017 | Feb. 09, 2016 | |
Stock Repurchased and Retired During Period, Shares | 0 | 0 | 0 | 0 | |||
Stock Buyback Program 2018 [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 40 | ||||||
Stock Repurchased and Retired During Period, Shares | 0 | 0 | |||||
Stock Buyback Program 2017 [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 40 | ||||||
Stock Repurchased and Retired During Period, Shares | 0 | ||||||
Stock Buyback Program 2016 [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 40 | ||||||
Stock Repurchased and Retired During Period, Shares | 0 |
Note 13 - Stockholders' Equit66
Note 13 - Stockholders' Equity - Stockholders' Equity Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Balances | $ 65,409 | $ 60,211 | [1] | ||||
Exercise of stock options (in shares) | 16,153 | 66,746 | 28,716 | 135,622 | |||
Exercise of stock options | $ 32 | $ 39 | |||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (141) | (288) | |||||
Stock-based compensation (note 14) | 615 | 1,193 | |||||
Net income | 3,608 | $ 5,242 | [2],[3] | 7,352 | $ 7,686 | [2],[3] | |
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | (64) | ||||||
Other comprehensive loss | (260) | $ 126 | [2] | (243) | $ 231 | [2] | |
Balances | $ 69,263 | 69,263 | |||||
Impact of Adoption of ASU 2014-09 | 1,063 | ||||||
Balances | $ 61,274 | ||||||
Common Stock [Member] | |||||||
Balances (in shares) | 10,592,115 | 10,583,879 | |||||
Balances | $ 15,426 | $ 15,368 | |||||
Exercise of stock options (in shares) | 16,153 | 28,716 | |||||
Exercise of stock options | $ 122 | $ 180 | |||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in shares) | (4,902) | (9,229) | |||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | |||||||
Stock-based compensation (note 14) | |||||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | |||||||
Other comprehensive loss | |||||||
Balances (in shares) | 10,603,366 | 10,603,366 | |||||
Balances | $ 15,548 | $ 15,548 | |||||
Impact of Adoption of ASU 2014-09 | |||||||
Balances | 15,368 | ||||||
Additional Paid-in Capital [Member] | |||||||
Balances | 2,547 | 2,167 | |||||
Exercise of stock options | (90) | (141) | |||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (141) | (288) | |||||
Stock-based compensation (note 14) | 615 | 1,193 | |||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | |||||||
Other comprehensive loss | |||||||
Balances | 2,931 | 2,931 | |||||
Impact of Adoption of ASU 2014-09 | |||||||
Balances | 2,167 | ||||||
Retained Earnings [Member] | |||||||
Balances | 47,419 | 42,676 | |||||
Exercise of stock options | |||||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | |||||||
Stock-based compensation (note 14) | |||||||
Net income | 3,608 | 7,352 | |||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | (64) | ||||||
Other comprehensive loss | |||||||
Balances | 51,027 | 51,027 | |||||
Impact of Adoption of ASU 2014-09 | 1,063 | ||||||
Balances | 43,739 | ||||||
AOCI Attributable to Parent [Member] | |||||||
Balances | 17 | ||||||
Exercise of stock options | |||||||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | |||||||
Stock-based compensation (note 14) | |||||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | |||||||
Other comprehensive loss | (260) | (243) | |||||
Balances | $ (243) | (243) | |||||
Impact of Adoption of ASU 2014-09 | |||||||
Balances | |||||||
[1] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||
[2] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. | ||||||
[3] | The Company has initially applied ASC 2014-09 (Topic 606) using the modified retrospective method. Under this method, the comparative information is not restated. |
Note 14 - Share-based Payment67
Note 14 - Share-based Payments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 8,000 | $ 8,000 | ||
Allocated Share-based Compensation Expense, Total | $ 600 | $ 300 | 1,200 | $ 600 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | $ 0 | ||
Employee Stock Option [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 328 days |
Note 14 - Share-based Payment68
Note 14 - Share-based Payments - Stock Option Transactions (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Outstanding, Number of shares (in shares) | 634,883 | 430,611 | 653,571 | 474,501 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 37.48 | $ 15.46 | $ 36.69 | $ 12.67 |
Granted, Number of shares (in shares) | 128,566 | 139,566 | 32,875 | |
Granted, Weighted average exercise price per share (in dollars per share) | $ 64.10 | $ 63.66 | $ 40.56 | |
Exercised, Number of shares (in shares) | (16,153) | (66,746) | (28,716) | (135,622) |
Exercised, Weighted average exercise price per share (in dollars per share) | $ 12.26 | $ 8.26 | $ 10.30 | $ 8.04 |
Forfeited, Number of shares (in shares) | (13,100) | (257) | (30,225) | (8,146) |
Forfeited, Weighted average exercise price per share (in dollars per share) | $ 55.04 | $ 11.43 | $ 47.96 | $ 18.24 |
Expired, Number of shares (in shares) | ||||
Expired, Weighted average exercise price per share (in dollars per share) | ||||
Outstanding, Number of shares (in shares) | 734,196 | 363,608 | 734,196 | 363,608 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 42.39 | $ 16.79 | $ 42.39 | $ 16.79 |
Options exercisable, Number of shares (in shares) | 229,780 | 213,769 | 229,780 | 213,769 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 16.92 | $ 11.46 | $ 16.92 | $ 11.46 |
Note 14 - Share-based Payment69
Note 14 - Share-based Payments - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Number outstanding (in shares) | shares | 734,196 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 42.39 |
Weighted average remaining contractual life, options outstanding (Year) | 4 years 328 days |
Aggregate intrinsic value, options outstanding | $ | $ 13,852 |
Number exercisable (in shares) | shares | 229,780 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 16.92 |
Weighted average remaining contractual life, options exercisable (Year) | 2 years 219 days |
Aggregate intrinsic value, options exercisable | $ | $ 10,047 |
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 | 75,367 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 6.94 |
Weighted average remaining contractual life, options outstanding (Year) | 1 year 73 days |
Aggregate intrinsic value, options outstanding | $ | $ 4,048 |
Number exercisable (in shares) | shares | 75,367 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 6.94 |
Weighted average remaining contractual life, options exercisable (Year) | 1 year 73 days |
Aggregate intrinsic value, options exercisable | $ | $ 4,048 |
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 | 109,488 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 16.38 |
Weighted average remaining contractual life, options outstanding (Year) | 3 years |
Aggregate intrinsic value, options outstanding | $ | $ 4,847 |
Number exercisable (in shares) | shares | 83,288 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 15.99 |
Weighted average remaining contractual life, options exercisable (Year) | 2 years 292 days |
Aggregate intrinsic value, options exercisable | $ | $ 3,720 |
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 | 72,500 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 23.76 |
Weighted average remaining contractual life, options outstanding (Year) | 3 years 219 days |
Aggregate intrinsic value, options outstanding | $ | $ 2,674 |
Number exercisable (in shares) | shares | 52,500 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 24.78 |
Weighted average remaining contractual life, options exercisable (Year) | 3 years 73 days |
Aggregate intrinsic value, options exercisable | $ | $ 1,883 |
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) | 4 years 328 days |
Aggregate intrinsic value, options outstanding | $ | $ 356 |
Number exercisable (in shares) | shares | 10,625 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 36.11 |
Weighted average remaining contractual life, options exercisable (Year) | 4 years 255 days |
Aggregate intrinsic value, options exercisable | $ | $ 261 |
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) | 5 years 219 days |
Aggregate intrinsic value, options outstanding | $ | $ 305 |
Number exercisable (in shares) | shares | 8,000 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 43.75 |
Weighted average remaining contractual life, options exercisable (Year) | 5 years 219 days |
Aggregate intrinsic value, options exercisable | $ | $ 135 |
Exercise Price Range 06 [Member] | |
Exercise price - lower (in dollars per share) | $ 53.20 |
Exercise price - higher (in dollars per share) | $ 58.65 |
Number outstanding (in shares) | shares | 315,400 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 55.51 |
Weighted average remaining contractual life, options outstanding (Year) | 5 years 328 days |
Aggregate intrinsic value, options outstanding | $ | $ 1,622 |
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 07 [Member] | |
Exercise price - lower (in dollars per share) | $ 64.10 |
Exercise price - higher (in dollars per share) | $ 64.10 |
Number outstanding (in shares) | shares | 128,566 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 64.10 |
Weighted average remaining contractual life, options outstanding (Year) | 6 years 328 days |
Aggregate intrinsic value, options outstanding | $ | |
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 15 - Fair Value Measurem70
Note 15 - Fair Value Measurement (Details Textual) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Asset, Total | $ 0 | |
Derivative Liability, Total | $ 364 | $ 0 |
Note 15 - Fair Value Measurem71
Note 15 - Fair Value Measurement - Summary of the Fair Values of the Company's Derivative Instrument Liabilities (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Asset, Total | $ 0 | |
Derivative Liability, Total | 364 | $ 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Derivative Asset, Total | ||
Derivative Liability, Total | ||
Fair Value, Inputs, Level 2 [Member] | ||
Derivative Asset, Total | ||
Derivative Liability, Total | 364 | |
Fair Value, Inputs, Level 3 [Member] | ||
Derivative Asset, Total | ||
Derivative Liability, Total |
Note 16 - Contingencies (Detail
Note 16 - Contingencies (Details Textual) xbrli-pure in Thousands | Jan. 05, 2018 |
Litigation Case with Namecheap [Member] | |
Domain Name Transfer to Counter Party | 2,650 |