Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0000909494 | ||
Entity Registrant Name | TUCOWS INC /PA/ | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-32600 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-2707366 | ||
Entity Address, Address Line One | 96 Mowat Avenue | ||
Entity Address, City or Town | Toronto | ||
Entity Address, State or Province | ON | ||
Entity Address, Postal Zip Code | M6K 3M1 | ||
City Area Code | 416 | ||
Local Phone Number | 535-0123 | ||
Title of 12(b) Security | Common stock, no par value | ||
Trading Symbol | TCX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 438,600,000 | ||
Entity Common Stock, Shares Outstanding | 10,619,932 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 8,311 | $ 20,393 |
Accounts receivable, net of allowance for doubtful accounts of $222 as of December 31, 2020 and $131 as of December 31, 2019 | 15,540 | 14,564 |
Inventory | 1,875 | 3,457 |
Prepaid expenses and deposits | 16,845 | 13,478 |
Derivative instrument asset, current portion (note 7) | 3,860 | 731 |
Deferred costs of fulfillment, current portion (note 11 (b)) | 93,467 | 91,252 |
Income taxes recoverable | 1,302 | 1,800 |
Total current assets | 141,200 | 145,675 |
Deferred costs of fulfillment, long-term portion (note 11 (b)) | 17,599 | 17,915 |
Property and equipment (note 4) | 117,530 | 82,121 |
Right of use operating lease asset | 11,238 | 11,335 |
Deferred costs of acquisition (note 11 (a)) | 362 | 1,400 |
Deferred tax asset (note 9) | 226 | 0 |
Intangible assets (note 5) | 47,444 | 57,654 |
Goodwill (note 5) | 116,304 | 109,818 |
Total assets | 451,903 | 425,918 |
Current liabilities: | ||
Accounts payable | 6,329 | 6,671 |
Accrued liabilities | 10,235 | 9,373 |
Customer deposits | 15,402 | 14,074 |
Derivative instrument liability, current portion (note 7) | 99 | 0 |
Operating lease liability, current portion (note 12) | 1,761 | 1,413 |
Deferred revenue, current portion (note 10) | 127,336 | 123,101 |
Accreditation fees payable, current portion | 940 | 952 |
Income taxes payable | 863 | 1,324 |
Total current liabilities | 162,965 | 156,908 |
Derivative instrument liability, long-term portion (note 7) | 114 | 0 |
Deferred revenue, long-term portion (note 10) | 24,909 | 26,202 |
Accreditation fees payable, long-term portion | 195 | 216 |
Operating lease liability, long-term portion (note 12) | 9,179 | 9,424 |
Loan payable, long-term portion (note 8) | 121,733 | 113,503 |
Other long-term liability (note 3 (c)) | 3,416 | 0 |
Deferred tax liability (note 9) | 24,694 | 25,471 |
Stockholders' equity (note 13) | ||
Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock - no par value, 250,000,000 shares authorized; 10,612,414 shares issued and outstanding as of December 31, 2020 and 10,585,159 shares issued and outstanding as of December 31, 2019 | 20,798 | 16,633 |
Additional paid-in capital | 1,458 | 880 |
Retained earnings | 80,106 | 76,208 |
Accumulated other comprehensive income (loss) (note 7) | 2,336 | 473 |
Total stockholders' equity | 104,698 | 94,194 |
Total liabilities and stockholders' equity | 451,903 | 425,918 |
Commitments and contingencies (note 18) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 222 | $ 131 |
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) | 10,612,414 | 10,585,159 |
Common stock, shares outstanding (in shares) | 10,612,414 | 10,585,159 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [2] | |
Net revenues (note 10) | $ 311,202 | $ 337,145 | $ 346,013 | [1] |
Cost of revenues (note 10) | ||||
Cost of revenues | 200,401 | 217,579 | 232,103 | |
Network expenses | 10,194 | 9,190 | 9,846 | |
Depreciation of property and equipment (note 4) | 12,144 | 8,475 | 5,298 | |
Amortization of intangible assets (note 5) | 1,340 | 1,124 | 1,996 | |
Impairment of Property Plant and Equipment | 1,638 | 0 | 0 | |
Total cost of revenues | 225,717 | 236,368 | 249,243 | [3] |
Gross profit | 85,485 | 100,777 | 96,770 | |
Expenses: | ||||
Sales and marketing | 34,274 | 34,270 | 33,063 | |
Technical operations and development | 12,427 | 9,717 | 8,748 | |
General and administrative | 20,268 | 17,880 | 17,710 | |
Depreciation of property and equipment | 488 | 486 | 424 | |
Loss (gain) on disposition of property and equipment | (17) | 73 | 0 | |
Amortization of intangible assets (note 5) | 10,080 | 9,209 | 7,247 | |
Impairment of definite life intangible assets | 1,431 | 0 | 0 | |
Loss (gain) on currency forward contracts (note 7) | (383) | (198) | 254 | |
Total expenses | 78,568 | 71,437 | 67,446 | |
Income from operations | 6,917 | 29,340 | 29,324 | |
Other income (expenses): | ||||
Interest expense, net | (3,611) | (4,769) | (3,687) | |
Gain on sale of Ting customer assets, net (note 16) | 7,612 | 0 | 0 | |
Other income, net | (158) | 0 | 518 | |
Total other income (expenses) | 3,843 | (4,769) | (3,169) | |
Income before provision for income taxes | 10,760 | 24,571 | 26,155 | |
Provision for income taxes (note 9) | 4,985 | 9,173 | 9,020 | |
Net income before redeemable non-controlling interest | 5,775 | 15,398 | 17,135 | |
Redeemable non-controlling interest | 0 | 0 | (26) | |
Net income attributable to redeemable non-controlling interest | 0 | 0 | 26 | |
Net income for the period | 5,775 | 15,398 | 17,135 | [4] |
Other comprehensive income, net of tax | ||||
Unrealized income (loss) on hedging activities (note 7) | 1,653 | 1,101 | (1,022) | |
Net amount reclassified to earnings (note 7) | 210 | 182 | 212 | |
Other comprehensive income (loss) net of tax expense (recovery) of $550 and $411 and ($259) for the years ended December 31, 2020, 2019 and 2018 (note 7) | 1,863 | 1,283 | (810) | |
Comprehensive income, net of tax for the period | $ 7,638 | $ 16,681 | $ 16,325 | |
Basic earnings per common share (note 17) (in dollars per share) | $ 0.55 | $ 1.45 | $ 1.62 | |
Shares used in computing basic earnings per common share (note 17) (in shares) | 10,590,684 | 10,623,799 | 10,604,722 | |
Diluted earnings per common share (note 17) (in dollars per share) | $ 0.54 | $ 1.43 | $ 1.59 | |
Shares used in computing diluted earnings per common share (note 17) (in shares) | 10,692,281 | 10,772,812 | 10,794,170 | |
[1] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized revenue for the year ended December 31, 2018 includes $16.9 million, related to previously deferred revenue, a portion of which would have otherwise been recognized after December 31, 2018. | |||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | |||
[3] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized Cost of revenue for the year ended December 31, 2018 includes $16.8 million, related to previously deferred prepaid registry fees, a portion of which would have otherwise been recognized after December 31, 2018. | |||
[4] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other comprehensive income (loss), tax | $ 550 | $ 411 | $ (259) | [1] |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Previously Reported [Member]Common Stock [Member] | Previously Reported [Member]Additional Paid-in Capital [Member] | [1] | Previously Reported [Member]Retained Earnings [Member] | [1] | Previously Reported [Member]AOCI Attributable to Parent [Member] | [1] | Previously Reported [Member] | [1] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |||||||
Balances (in shares) at Dec. 31, 2017 | 10,583,879 | 10,583,879 | [1] | ||||||||||||||||||||||||||||
Balances at Dec. 31, 2017 | $ 0 | $ 0 | $ 1,063 | $ 0 | $ 1,063 | $ 15,368 | $ 2,167 | $ 43,739 | $ 0 | $ 61,274 | $ 15,368 | [1] | $ 2,167 | [1] | $ 42,676 | [1] | $ 0 | [1] | $ 60,211 | [1] | |||||||||||
Exercise of stock options (in shares) | 63,886 | 63,886 | |||||||||||||||||||||||||||||
Exercise of stock options | $ 455 | (343) | 0 | 0 | $ 112 | ||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration (in shares) | (19,777) | (19,777) | |||||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration | $ 0 | (445) | 0 | 0 | $ (445) | ||||||||||||||||||||||||||
Stock-based compensation (note 14) | 0 | 2,574 | 0 | 0 | 2,574 | ||||||||||||||||||||||||||
Net income for the period | 0 | 0 | 17,135 | 0 | 17,135 | [1],[2] | |||||||||||||||||||||||||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | 0 | 0 | (64) | 0 | (64) | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 7) | $ 0 | 0 | 0 | (810) | $ (810) | ||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) (in shares) | 0 | ||||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) | $ 0 | ||||||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration (in shares) | (19,777) | (19,777) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) (in shares) | 0 | ||||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) | $ 0 | ||||||||||||||||||||||||||||||
Net income | $ 0 | 0 | 17,135 | 0 | 17,135 | [1],[2] | |||||||||||||||||||||||||
Other comprehensive income (loss) (note 7) | $ 0 | 0 | 0 | (810) | (810) | ||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2018 | [1] | 10,627,988 | |||||||||||||||||||||||||||||
Balances at Dec. 31, 2018 | [1] | $ 15,823 | 3,953 | 60,810 | (810) | $ 79,776 | |||||||||||||||||||||||||
Exercise of stock options (in shares) | 80,319 | 80,319 | |||||||||||||||||||||||||||||
Exercise of stock options | $ 967 | (572) | 0 | 0 | $ 395 | ||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration (in shares) | (21,332) | (21,332) | |||||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration | $ 0 | (548) | 0 | 0 | $ (548) | ||||||||||||||||||||||||||
Stock-based compensation (note 14) | 0 | 2,876 | 0 | 0 | 2,876 | ||||||||||||||||||||||||||
Net income for the period | 0 | 0 | 15,398 | 0 | 15,398 | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 7) | $ 0 | 0 | 0 | 1,283 | $ 1,283 | ||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) (in shares) | (101,816) | (101,816) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) | $ (157) | (4,829) | 0 | 0 | $ (4,986) | ||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration (in shares) | (21,332) | (21,332) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) (in shares) | (101,816) | (101,816) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) | $ (157) | (4,829) | 0 | 0 | $ (4,986) | ||||||||||||||||||||||||||
Net income | 0 | 0 | 15,398 | 0 | 15,398 | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 7) | $ 0 | 0 | 0 | 1,283 | 1,283 | ||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2019 | [1] | 10,585,159 | |||||||||||||||||||||||||||||
Balances at Dec. 31, 2019 | $ 16,633 | [1] | $ 880 | $ 76,208 | $ 473 | $ 94,194 | $ 94,194 | ||||||||||||||||||||||||
Exercise of stock options (in shares) | 113,132 | 113,132 | |||||||||||||||||||||||||||||
Exercise of stock options | $ 2,290 | (1,305) | 0 | 0 | $ 985 | ||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration (in shares) | (48,013) | (48,013) | |||||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration | $ 0 | (556) | 0 | 0 | $ (556) | ||||||||||||||||||||||||||
Stock-based compensation (note 14) | 0 | 3,718 | 0 | 0 | 3,718 | ||||||||||||||||||||||||||
Net income for the period | 0 | 0 | 5,775 | 0 | 5,775 | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 7) | $ 0 | 0 | 0 | 1,863 | $ 1,863 | ||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) (in shares) | (70,238) | (70,238) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) | $ (125) | (1,279) | (1,877) | 0 | $ (3,281) | ||||||||||||||||||||||||||
Shares deducted from exercise of stock options for payment of withholding taxes and exercise consideration (in shares) | (48,013) | (48,013) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) (in shares) | (70,238) | (70,238) | |||||||||||||||||||||||||||||
Repurchase and retirement of shares (note 13(a)) | $ (125) | (1,279) | (1,877) | 0 | $ (3,281) | ||||||||||||||||||||||||||
Acquisition of Cedar Networks (in shares) | 32,374 | ||||||||||||||||||||||||||||||
Acquisition of Cedar Networks | $ 2,000 | 0 | 0 | 0 | 2,000 | ||||||||||||||||||||||||||
Net income | 0 | 0 | 5,775 | 0 | 5,775 | ||||||||||||||||||||||||||
Other comprehensive income (loss) (note 7) | $ 0 | 0 | 0 | 1,863 | 1,863 | ||||||||||||||||||||||||||
Balances (in shares) at Dec. 31, 2020 | 10,612,414 | ||||||||||||||||||||||||||||||
Balances at Dec. 31, 2020 | $ 20,798 | $ 1,458 | $ 80,106 | $ 2,336 | $ 104,698 | ||||||||||||||||||||||||||
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | ||||||||||||||||||||||||||||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [2] | ||
Operating activities: | |||||
Net income for the period | $ 5,775 | $ 15,398 | $ 17,135 | [1] | |
Items not involving cash: | |||||
Depreciation of property and equipment | 12,632 | 8,961 | 5,722 | ||
Loss on write off of property and equipment | 1,638 | 142 | 0 | ||
Amortization of debt discount and issuance costs | 269 | 297 | 281 | ||
Amortization of intangible assets | 11,420 | 10,333 | 9,243 | ||
Net amortization contract costs | 106 | (10) | 14 | ||
Accretion of contingent consideration | 344 | 0 | 0 | ||
Impairment of definite life intangible asset | 1,431 | 0 | 0 | ||
Other | 223 | 0 | 0 | ||
Deferred income taxes (recovery) | (3,939) | 1,285 | 1,038 | ||
Excess tax benefits on share-based compensation expense | (861) | (634) | (697) | ||
Amortization of deferred rent | 0 | 0 | (14) | ||
Net Right of use operating assets/Operating lease liability | 205 | (32) | 0 | ||
Loss on disposal of domain names | 17 | 114 | 341 | ||
Other income | 0 | 0 | (429) | ||
Loss (gain) on change in the fair value of forward contracts | (500) | (313) | 207 | ||
Write-down on disposal of Ting Mobile customer assets and contract costs | 3,513 | 0 | 0 | ||
Stock-based compensation | 3,718 | 2,876 | 2,574 | ||
Change in non-cash operating working capital: | |||||
Accounts receivable | (281) | (3,015) | 1,539 | ||
Inventory | 945 | 318 | (831) | ||
Prepaid expenses and deposits | (3,459) | 2,904 | (1,286) | ||
Deferred costs of fulfillment | (1,899) | 7,678 | 20,476 | ||
Income taxes recoverable | 908 | (89) | 2,691 | ||
Accounts payable | (902) | (1,221) | 171 | ||
Accrued liabilities | 376 | 2,329 | (513) | ||
Customer deposits | 1,493 | 27 | (3,336) | ||
Deferred revenue | 2,942 | (6,900) | (16,888) | ||
Accreditation fees payable | (33) | (67) | (229) | ||
Net cash provided by operating activities | 36,081 | 40,381 | 37,209 | ||
Financing activities: | |||||
Proceeds received on exercise of stock options | 985 | 395 | 112 | ||
Payment of tax obligations resulting from net exercise of stock options | (556) | (548) | (445) | ||
Repurchase of common stock | (3,281) | (4,986) | 0 | ||
Proceeds received on loan payable | 8,000 | 57,371 | 7,000 | ||
Repayment of loan payable | 0 | (8,130) | (19,596) | ||
Payment of loan payable costs | (32) | (641) | (8) | ||
Net cash (used in) provided by financing activities | 5,116 | 43,461 | (12,937) | ||
Investing activities: | |||||
Additions to property and equipment | (44,437) | (44,070) | (27,919) | ||
Acquisition of a portion of the minority interest in Ting Virginia, LLC (note 3(a)) | 0 | 0 | (1,200) | ||
Acquisition of intangible assets | (72) | (3,566) | (565) | ||
Net cash used in investing activities | (53,279) | (76,086) | (29,684) | ||
Increase (decrease) in cash and cash equivalents | (12,082) | 7,756 | (5,412) | ||
Cash and cash equivalents, beginning of period | 20,393 | 12,637 | [2] | 18,049 | |
Cash and cash equivalents, end of period | 8,311 | 20,393 | 12,637 | ||
Supplemental cash flow information: | |||||
Interest paid | 3,573 | 4,785 | 3,712 | ||
Income taxes paid, net | 8,926 | 7,941 | 6,799 | ||
Supplementary disclosure of non-cash investing and financing activities: | |||||
Property and equipment acquired during the period not yet paid for | 1,129 | 548 | 1,462 | ||
Fair value of shares issued for acquisition of Cedar Holdings Group | 2,000 | 0 | 0 | ||
Fair value of contingent consideration for acquisition of Cedar Holdings Group | 3,072 | 0 | 0 | ||
Cedar Holdings Group, Incorporated [Member] | |||||
Investing activities: | |||||
Acquisition, net of cash | (8,770) | 0 | 0 | ||
Ascio Technologies, Inc. [Member] | |||||
Investing activities: | |||||
Acquisition, net of cash | $ 0 | $ (28,450) | $ 0 | ||
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | ||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 1 - Organization of the Co
Note 1 - Organization of the Company | 12 Months Ended |
Dec. 31, 2020 | |
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 US consumers and small businesses with mobile phone services nationally and high-speed fixed Internet access in selected towns. The Company offers Mobile Service Enabler ("MSE") solutions, as well as professional services to other retail mobile providers. The Company is also a global distributor of Internet services, including domain name registration, digital certificates, and email. It provides these services primarily through a global Internet-based distribution network of Internet Service Providers, web hosting companies and other providers of Internet services to end-users. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 2. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise noted. (a) Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for bad debts and inventory obsolescence which requires estimates of sales forecasts and other marketplace considerations, internal use software which requires estimates of whether the costs incurred meet the criteria for capitalization based on the stage of the projects, the portion of MSE billings related to professional services, the recoverability of goodwill and intangible assets which require estimates of future cash flows and discount rates, lease liability which requires estimates of incremental borrowing rate and the expectation of exercising lease renewal periods, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience, available market information as applicable, and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. (c) Cash and cash equivalents All highly liquid investments, with an original term to maturity of three (d) Inventory Inventory primarily consists of Internet optical network terminals and customer installation equipment. To a lesser extent, inventory also includes mobile devices, mobile sim cards and related accessories. All inventory is stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device, accessory shipped or optical network terminals. The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: Rate Asset Computer equipment 30% Computer software 33 1/3 - 100% Furniture and equipment 20% Vehicles and tools 20% Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease Capitalized internal use software (years) 3 7 The Company reviews the carrying values of its property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not Additions to the fiber network are recorded at cost, including all material, labor, vehicle and installation and construction costs and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the fiber network level and not Additions to land are recorded at cost, and include any direct costs associated with the purchase, as well as any direct costs incurred to bring it to the condition necessary for its intended use, such as legal fees associated with the acquisition and the cost of permanent improvements. Land is not We capitalize costs for software to be used internally when we enter the application development stage. This occurs when we complete the preliminary project stage, management authorizes and commits to funding the project, and it is feasible that the project will be completed and the software will perform the intended function. We cease to capitalize costs related to a software project when it enters the post implementation and operation stage. Costs capitalized during the application development stage consist of payroll and related costs for employees who are directly associated with, and who devote time directly to, a project to develop software for internal use. External contractor costs who are directly associated with, and who devote time directly to, a project to develop software for internal use are also capitalized. Generally, we do not may 11 not The capitalized software development costs are generally to be amortized using the straight-line method over a 3 to 7-year period. In determining and reassessing the estimated useful life over which the cost incurred for the software should be amortized, we consider the effects of obsolescence, technology, competition and other economic factors. (f) Derivative Financial Instruments The Company uses derivative financial instruments to manage foreign currency exchange risk. The Company also uses pay-fixed, receive-variable interest rate swap with a Canadian chartered bank to limit the potential interest rate fluctuations incurred on its future cash flows related to variable interest payments on the Credit facility. The Company accounts for these instruments in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 815, 815" 815 For certain foreign currency contracts, the Company has not The fair value of the forward exchange contracts is determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company's and the counterparty's credit risk. The valuation technique used to measure the fair values of the derivative instruments is a discounted cash flow technique, with all significant inputs derived from or corroborated by observable market data, as no (g) Goodwill and Other Intangible assets Goodwill Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not fourth two The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not not not no may If required to perform the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance for its operating segment. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. Intangibles Assets Not Intangible assets not no The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not Intangible Assets Subject to Amortization Intangible assets subject to amortization, consist of brand, customer relationships, technology and network rights and are amortized on a straight-line basis over their estimated useful lives as follows: (in years) Technology 2 Brand 7 Customer relationships 3 - 7 Network rights 15 The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization may may not (h) Revenue recognition See “Note 10 (i) Deferred revenue Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other domain related Internet services, on both a wholesale and retail basis, net of external commissions. To a lesser extent, deferred revenue also includes a portion of the transaction price received from mobile platform services, which are related to professional services. (j) Contract Costs See “Note 11 (k) Leases See note 2 842 January 1, 2019. Under ASC 842, Certain lease agreements contain variable payments, which are expensed as incurred and not We have elected to consider leases with a term of 12 not Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not Operating lease expense is recognized on a straight-line basis over the lease term. (l) Accreditation fees payable In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. (m) Translation of foreign currency transactions The Company’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the rate at the date of the transactions. (n) Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not not” The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than- not not 50% 12 (o) Stock-based compensation Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest, reduced for estimated forfeitures. (p) Earnings per common share Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. (q) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable, forward foreign exchange contracts and pay-fixed, receive-variable interest rate swap contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three not not (r) Fair value measurement Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three Level 1—Quoted Level 2—Observable Level 3—No Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may The fair value of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 The fair value of the derivative financial instruments is determined using an estimated credit-adjusted mark-to-market valuation (a level 2 (s) Investments The Company accounts for investment in entities over which it has the ability to exert significant influence, but does not not not (t) Segment reporting The Company operates in two The Company’s Domain Services revenues are attributed to the country in which the contract originates. Revenues from domain names issued under the OpenSRS, brand from the Ontario, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. Revenues from domain names issued under the eNom brand from the Washington state location are attributable to the United States because it is impracticable to determine the country of the customer. Revenues from domain names issued under the Ascio brand from the Copenhagen, Denmark location are attributed to Denmark because it is impracticable to determine the country of the customer. Revenues from domain names issued under the EPAG brand from the Bonn, Germany location are attributed to Germany because it is impracticable to determine the country of the customer. The Company’s Network Access Services which consist primarily of MSE services, professional services, mobile telephony services and the provisioning of high speed Internet access services, are generated primarily through its business operations in the United States. The Company’s assets are primarily located in Canada, the United States and Europe. (u) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted ASU 2016 - 02: Adoption of Leases (Topic 842 The Company adopted ASU No. 2016 02, Leases 842 2016 02” January 1, 2019. The Company has elected to apply ASU 2016 02 2018 11, January 1, 2019 2018 not 840. The Company elected the practical expedient to use hindsight when considering the likelihood that lessee options to extend or terminate a lease or purchase the underlying asset will be exercised, and in assessing the impairment of right-of-use assets. The Company elected the practical expedient not As a result of adopting ASU 2016 02, January 1, 2019. no 2016 02 not 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 2014 09 not not 2014 09 605. 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 ASU 2014 09, 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, Other In August 2017, No. 2017 12, Derivatives and Hedging (Topic 815 ): Targeted Improvements to Accounting for Hedging Activities 2017 12” 2017 12 January 1, 2019 not In August 2018, No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software 350 40 2018 15” 2018 15 not 2018 15 2018 15 January 1, 2020 not Recent Accounting Pronouncements Not Yet Adopted In March 2020, No. 2020 04, Reference Rate Reform 848 2020 04” 2020 04 a) Modifications of contracts within the scope of Topics 310, 470, b) Modifications of contracts within the scope of Topic 842, no not c) Modifications of contracts do not 815 15, The amendments in ASU 2020 04 March 12, 2020 December 31, 2022. 2019 may 2020 04. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. (a) Blue Ridge Websoft On February 27, 2015, one On February 1, 2017, On February 13, 2018, February 13, 2018 (b) Ascio On March 18, 2019, $29.9 m $29.44 $0.45 million As required by ASC 805, The following table shows the final allocation of the purchase price for Ascio to the acquired identifiable assets and liabilities assumed ( thousands of U.S. dollars Goodwill $ 19,765 Cash 1,437 Brand 2,090 Developed technology 2,440 Customer relationships 10,610 Prepaid domain registry fees 10,318 Other assets 2,218 Total assets 48,878 Deferred Revenue (12,510 ) Deferred Tax Liabilities (2,852 ) Other liabilities (3,630 ) Total liabilities (18,992 ) Consideration Paid $ 29,886 All definite life intangible assets acquired, including brand, developed technology and customer relationships will be amortized over 7 years. The goodwill related to this acquisition is primarily attributable to synergies expected to arise from the acquisition and is deductible for US tax purposes but non-deductible for Danish tax purposes. In connection with this acquisition, the Company incurred total acquisition related costs of $0.5 million of which $0.3 million and $0.2 million were included in General & Administrative expenses in the consolidated statements of operations and comprehensive income during Fiscal 2019 2018, (c) Cedar In the fourth 2019, January 1, 2020, two 24th 36th The following table shows the final allocation of the purchase price for Cedar to the acquired identifiable assets and liabilities assumed ( thousands of U.S. dollars Cash Consideration, including working capital adjustment $ 8,836 Share-based payment 2,000 Fair value of contingent payments 3,072 Total estimated purchase price 13,908 Cash and Cash Equivalents 66 Accounts Receivables, net 13 Other current assets 22 Property and equipment 4,661 Right of use operating lease 18 Customer relationships 4,640 Network rights 750 Total identifiable assets 10,170 Accounts payable and accrued labilities (362 ) Deferred tax liability (2,373 ) Operating lease liability (13 ) Total liabilities assumed (2,748 ) Total net assets (liabilities) assumed 7,422 Total goodwill $ 6,486 The amortization period for the customer relationships and network rights are 7 15 The following table presents selected unaudited pro forma information for the Company assuming the acquisition of Cedar had occurred as of January 1, 2019. not Unaudited Year Ended December 31, 2020 2019 Net revenues $ 311,202 $ 342,056 Net income 5,775 15,181 Basic earnings per common share 0.55 1.43 Diluted earnings per common share $ 0.54 $ 1.41 The amount of revenue recognized since the acquisition date included in the consolidated statements of operations and comprehensive income statement for Fiscal 2020 The net income recognized since the acquisition date included in the consolidated statements of operations and comprehensive income for Fiscal 2020 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment consist of the following (Dollar amounts in thousands of U.S. dollars): December 31, December 31, 2020 2019 Computer equipment $ 25,029 $ 18,027 Computer software 1,760 2,336 Capitalized internal use software 2,835 1,270 Furniture and equipment 1,314 1,394 Vehicles and tools 4,476 2,656 Fiber network 66,766 40,645 Customer equipment and installations 13,332 8,586 Land 1,634 1,511 Assets under construction 36,720 30,352 Leasehold improvements 475 542 154,341 107,319 Less: Accumulated depreciation 36,811 25,198 $ 117,530 $ 82,121 Depreciation of property and equipment (Dollar amounts in thousands of U.S. dollars): Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 Depreciation of property and equipment $ 12,632 $ 8,961 $ 5,722 During the year ended December 31, 2020 $1.6 million December 31, 2019 2018 $nil |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill Goodwill represents the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed in our acquisitions. Goodwill consists of the following (Dollar amounts in thousands of U.S. dollars): Network Access Services Domain Services Total Balances, December 31, 2018 $ 2,132 $ 87,922 $ 90,054 Ascio Technologies Inc. acquisition - 19,764 19,764 Balances, December 31, 2019 $ 2,132 $ 107,686 $ 109,818 Cedar Holdings Group, Inc. acquisition 6,486 - 6,486 Balances, December 31, 2020 $ 8,618 $ 107,686 $ 116,304 The Company's Goodwill balance is $116.3 million as of December 31, 2020 December 31, 2019 Goodwill is not 2 no 2020 2019 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 ap plica not 2020 June 2006 not December 31, 2020 , December 31, 2019 , and December 31, 2018 no Finite-life intangible assets, comprising brand, technology, customer relationships and network rights are being amortized on a straight-line basis over periods of two fifteen In the third 2019, 60 September 2019 In June 2020, 19 December 31, 2020. In August 2020, one 16 Throughout Fiscal 2020 , Acquired intangible assets consist of the following (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 3 - 7 years 2 years 15 years Balances, December 31, 2018 $ 11,176 $ 1,247 $ 9,004 $ 27,290 $ 163 $ 515 $ 49,395 Ascio Technologies Inc. acquisition - - 2,090 10,610 2,440 - 15,140 FreedomPop acquisition - - - 3,475 - - 3,475 Acquisition of customer relationships - - - 91 - - 91 Additions to/(disposals from) domain portfolio, net (12 ) (102 ) - - - - (114 ) Amortization expense - - (2,003 ) (7,197 ) (1,087 ) (46 ) (10,333 ) Balances December 31, 2019 $ 11,164 $ 1,145 $ 9,091 $ 34,269 $ 1,516 $ 469 57,654 Cedar Holdings Group Inc. acquisition - - - 4,640 - 750 5,390 Additions to/(disposals from) domain portfolio, net (7 ) (10 ) - - - - (17 ) Impairment of definite life intangible asset (1,431 ) (1,431 ) Other (223 ) (223 ) Write-down of Ting Mobile customer relationships - - - (2,581 ) - - (2,581 ) Acquisition of Network rights - 72 72 Amortization expense - - (2,070 ) (8,010 ) (1,242 ) (98 ) (11,420 ) Balances December 31, 2020 $ 11,157 $ 1,135 $ 7,021 $ 26,664 $ 274 $ 1,193 $ 47,444 The following table shows the estimated amortization expense for each of the next 5 no Year ending December 31, 2021 $ 9,515 2022 9,345 2023 8,669 2024 4,455 2025 2,587 Thereafter 581 Total $ 35,152 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6. For financial assets and liabilities recorded in our financial statements at fair value we utilize a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three 1 2 3 The following table provides a summary of the fair values of the Company’s derivative instruments measured at fair value on a recurring basis as at December 31, 2020 December 31, 2020 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset, net $ - $ 3,647 $ - $ 3,647 Total Assets, net $ - $ 3,647 $ - $ 3,647 The following table provides a summary of the fair values of the Company’s derivative instruments measured at fair value on a recurring basis as at December 31, 2019 December 31, 2019 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset, net $ - $ 731 $ - $ 731 Total Assets, net $ - $ 731 $ - $ 731 |
Note 7 - Derivative Instruments
Note 7 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7. Foreign currency forward contracts Since October 2012, not one eighteen In May 2020, not June 2023. The Company has designated certain of these transactions as cash flow hedges of forecasted transactions under ASC Topic 815. 815, December 31, 2020 December 31, 2019 no As of December 31, 2020 815 As of December 31, 2019 s $30.5 million, of which $26.1 m 815 As of December 31, 2020 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 January - March 2021 11,125 1.4283 1,327 April - June 2021 9,879 1.4283 1,179 July - September 2021 10,782 1.4362 1,353 $ 31,786 1.4310 $ 3,860 Fair value of derivative instruments and effect of derivative instruments on financial performance The effect of these derivative instruments on our consolidated financial statements as of, and for the year ended December 31, 2020 2019 not Fair value of derivative instruments in the consolidated balance sheets (see 6 ) Derivatives (Dollar amounts in thousands of U.S. dollars) Balance Sheet Location As of December 31, 2020 Fair Value Asset As of December 31, 2019 Fair Value Asset Foreign Currency forward contracts designated as cash flow hedges (net) Derivative instruments $ 3,254 $ 626 Interest rate swap contract designated as a cash flow hedge (net) Derivative instruments $ (213 ) $ - Foreign Currency forward contracts not designated as cash flow hedges (net) Derivative instruments 606 105 Total foreign currency forward contracts (net) Derivative instruments $ 3,647 $ 731 Movement in AOCI balance for the year ended December 31, 2020 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance - December 31, 2019 $ 625 $ (152 ) $ 473 Other comprehensive income (loss) before reclassifications 2,142 (489 ) 1,653 Amount reclassified from AOCI 271 (61 ) 210 Other comprehensive income (loss) for the year ended December 31, 2020 2,413 (550 ) 1,863 Ending AOCI Balance - December 31, 2020 $ 3,038 $ (702 ) $ 2,336 Movement in AOCI balance for the year ended December 31, 2019 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance - December 31, 2018 $ (1,069 ) $ 259 $ (810 ) Other comprehensive income (loss) before reclassifications 1,454 (353 ) 1,101 Amount reclassified from AOCI 240 (58 ) 182 Other comprehensive income (loss) for the year ended December 31, 2019 1,694 (411 ) 1,283 Ending AOCI Balance - December 31, 2019 $ 625 $ (152 ) $ 473 Movement in AOCI balance for the year ended December 31, 2018 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance - December 31, 2017 $ - $ - $ - Other comprehensive income (loss) before reclassifications (1,350 ) 328 (1,022 ) Amount reclassified from AOCI 281 (69 ) 212 Other comprehensive income (loss) for the year ended December 31, 2018 (1,069 ) 259 (810 ) Ending AOCI Balance - December 31, 2018 $ (1,069 ) $ 259 $ (810 ) Effects of derivative instruments on income and other comprehensive income (OCI) (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 Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Operating expenses $ (188 ) Foreign currency forward contracts for the year ended December 31, 2020 $ 2,026 Cost of revenues $ (66 ) Interest rate swap contract for the year ended December 31, 2020 $ (163 ) Interest expense, net $ (17 ) Operating expenses $ (197 ) Foreign currency forward contracts for the year ended December 31, 2019 $ 1,283 Cost of revenues $ (43 ) Interest rate swap contract for the year ended December 31, 2019 $ - Interest expense, net $ - Operating expenses $ (245 ) Foreign currency forward contracts for the year ended December 31, 2018 $ (810 ) Cost of revenues $ (36 ) Interest rate swap contract for the year ended December 31, 2018 $ - Interest expense, net $ - In addition to the above, for those foreign currency forward contracts not Year Ended December 31, Forward currency contracts not designated as hedges: 2020 2019 2018 Gain (loss) on settlement $ (117 ) $ (115 ) $ (47 ) Gain (loss) on change in fair value $ 500 $ 313 $ (207 ) |
Note 8 - Loan Payable
Note 8 - Loan Payable | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Amended 2019 On June 14, 2019, 2019 2019 2017 In connection with the Amended 2019 December 31, 2019. The obligations of the Company under the Amended 2019 first four June 13, 2023. 2017 Amended Credit Facility Prior to entering into the Amended 2019 “2017 January 20, 2017 On March 18, 2019, 2017 3 2017 The obligations of the Company under the 2017 first four Credit Facility Terms The Amended 2019 no The Amended 2019 2019 2019 3.50:1; 2019 not 3.00:1. 2.00:1. December 31, 2020 December 31, 2019 Borrowings under the Amended 2019 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 2.50 Greater than or equal to 2.50 Canadian dollar borrowings based on Bankers’ Acceptance or U.S. dollar borrowings based on LIBOR (Margin) 1.50% 1.85% 2.35% 2.85% Canadian or U.S. dollar borrowings based on Prime Rate or U.S. dollar borrowings based on Base Rate (Margin) 0.25% 0.60% 1.10% 1.60% Standby fees 0.30% 0.37% 0.47% 0.57% The following table summarizes the Company’s borrowings under the credit facilities (Dollar amounts in thousands of U.S. dollars): December 31, 2020 December 31, 2019 Revolver 122,400 114,400 Less: unamortized debt discount and issuance costs (667 ) (897 ) Total loan payable 121,733 113,503 Less: loan payable, current portion - - Loan payable, long-term portion 121,733 113,503 The following table summarizes our scheduled principal repayments as of December 31, 2020 2021 - 2022 - 2023 122,400 $ 122,400 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 21% for the years ended December 31, 2020 December 31, 2019 December 31, 2018 Year ended December 31, 2020 2019 2018 Income for the year before provision for income taxes $ 10,760 $ 24,571 $ 26,155 Computed federal tax expense 2,259 5,160 5,492 Increase (reduction) in income tax expense resulting from: State income taxes 303 526 846 Change in Valuation allowance 1,867 5,277 2,811 Expired business tax credits 1,044 - - Non-creditable Foreign Tax 818 515 - Excess tax benefits on share-based compensation expense (407 ) (634 ) (697 ) Permanent differences (161 ) (103 ) 159 Effect of deferred tax in foreign branch (774 ) (840 ) - Others 36 (728 ) 409 Provision for income taxes $ 4,985 $ 9,173 $ 9,020 On December 22, 2017, not 1 35% 21% 2 December 31, 2017; ( 3 4 5 6 In Fiscal 2020, not 21%, 2020 not 2020 not In Fiscal 2019, 21%, 2019 not not 2019 not In Fiscal 2018, 21%, 2018 not not 2018 not The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Deferred tax assets (liabilities): Deferred tax assets: Deferred revenue $ 5,739 $ 6,301 Foreign tax credits and general business credits 11,203 9,004 Net operating losses 1,452 1,341 Accruals, including foreign exchange and other 792 1,490 Sub-total Deferred tax assets 19,186 18,136 Valuation allowance (11,232 ) (9,365 ) Total deferred tax assets $ 7,954 $ 8,771 Deferred tax liabilities: Prepaid registry fees and expenses $ (16,909 ) $ (16,237 ) Amortization (7,083 ) (6,925 ) Limited life intangible assets (4,327 ) (5,958 ) Indefinite life intangible assets (2,847 ) (3,110 ) Foreign branch deferred tax liability (1,256 ) (2,012 ) Total deferred tax liability $ (32,422 ) $ (34,242 ) Net deferred tax asset (liability) $ (24,468 ) $ (25,471 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not not We believe it is more likely than not The Company had nil December 31, 2020 December 31, 2019. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The Company did not December 31, 2020 December 31, 2019. In connection with the eNom acquisition in 2017, first 2019, February 2019, "9100 November 2019, 9100 30 December, 2019 not 9100 no December 31, 2020. |
Note 10 - Revenue
Note 10 - Revenue | 12 Months Ended |
Dec. 31, 2020 | |
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 retail mobile services, the provisioning of wholesale mobile platform services, professional services and the provisioning of retail fiber Internet services in our Network Access Services segment; and from (b) domain name registration contracts, other domain related value-added services, domain sale contracts, and other advertising revenue in our Domain Services segment. 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 19 (a) Network Access Services The Company generates Network Access Services revenues primarily through the provisioning of mobile services. Mobile services consist of retail services provided to Ting Mobile customers and mobile platform services provided to wholesale customers to whom we also provide other professional services. Fiber internet services revenue include the provisioning of fixed high-speed Internet access, Ting Internet, as well as billing solutions to Internet Service Providers (“ISPs”). Retail mobile services (Ting Mobile) 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. Mobile platform services agreements contain both MSE services and professional services. MSE services represent a single promise to provide continuous access (i.e., a stand-ready performance obligation) to the platform and software solutions. As each month of providing access to the platform is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, the performance obligation is comprised of a series of distinct service periods. Consideration for these arrangements is variable each month depending on the number of subscribers hosted on the platform. The Company also provides professional services as a part of the mobile platform services agreements. These professional services can include implementation, training, consulting or software development/modification services. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract(s) and are recognized as the related services are performed. Consideration payable under the professional service arrangements is included with the variable consideration from the mobile platform services, which would represent variable consideration estimated using the most likely amount based on the range of hours expected to be incurred in providing the services. Where consideration for professional services is included in the consideration for mobile platform services, the Company estimates the standalone selling price (“SSP”) for professional services based on observable standalone sales, and applies the residual approach to estimate the SSP for mobile platform services. The total variable consideration is estimated at contract inception (considering any constraints that may Other professional services consist of professional service arrangements that are billed separately on a time-and-materials basis as well as revenues from the Transitional Services Agreement (“TSA”) with DISH Wireless L.L.C. ("DISH"). For professional services billed separately on a time-and-materials basis, revenues are recognized based on the actual hours of services provided. Under the TSA, the Company will provide certain other services such as customer service, marketing and fulfillment services. DISH has the option to terminate services provided under the TSA throughout the term of the agreement, which is for five August 1, 2020. Fiber Internet services (Ting Internet) contracts provide customers Internet access at their home or business through the installation and use of our fiber optic network. Ting 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 Ting Internet access services are primarily contracted through the Ting website, for one no not 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, website hosting and hosted email provide our resellers and retail registrant customers with 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. 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): 2020 2019 2018* Network Access Services: Mobile Services Retail mobile services $ 46,540 $ 84,657 $ 89,340 Mobile platform services 564 - - Other professional services 3,416 - - Total Mobile 50,520 84,657 89,340 Fiber Internet Services 18,428 11,006 7,984 Total Network Access Services 68,948 95,663 97,324 Domain Services: Wholesale Domain Services 186,893 182,957 189,434 Value Added Services 19,788 18,922 17,756 Total Wholesale 206,681 201,879 207,190 Retail 34,323 34,786 34,524 Portfolio 1,250 4,817 6,975 Total Domain Services 242,254 241,482 248,689 $ 311,202 $ 337,145 $ 346,013 (*) 2018, December 31, 2018 December 31, 2018. As of December 31, 2020 one December 31, 2019 December 31, 2018 no 10% During the years ended December 31, 2020 December 31, 2019 December 31, 2018 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): 2020 2019 2018* Network Access Services: Mobile Services Retail mobile services $ 22,942 $ 44,415 $ 46,061 Mobile platform services 56 - - Other professional services 2,970 - - Total Mobile 25,968 44,415 46,061 Fiber Internet Services 6,982 3,928 3,994 Total Network Access Services 32,950 48,343 50,055 Domain Services: Wholesale Domain Services 146,788 148,530 160,216 Value Added Services 3,161 2,986 3,154 Total Wholesale 149,949 151,516 163,370 Retail 17,023 17,093 17,725 Portfolio 479 627 953 Total Domain Services 167,451 169,236 182,048 Network Expenses: Network, other costs 10,194 9,190 9,846 Network, depreciation and amortization costs 13,484 9,599 7,294 Network, impairment 1,638 - - Total Network Expenses 25,316 18,789 17,140 $ 225,717 $ 236,368 $ 249,243 (*) 2018, December 31, 2018 December 31, 2018. 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 $149.3 million as of January 1, 2020 Year ended December 31, 2020 Balance, beginning of period $ 149,303 Deferred revenue 234,047 Recognized revenue (231,105 ) Balance, end of period $ 152,245 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 December 31, 2020 For professional services and internet access services, where the performance obligation is part of contracts that have an original expected duration of one not Year ended December 31, 2020 2021 $ 124,271 2022 11,493 2023 5,212 2024 3,231 2025 1,994 Thereafter 2,979 Total $ 149,180 |
Note 11 - Costs to Obtain and F
Note 11 - Costs to Obtain and Fulfill a Contract | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 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 from two ten December 31, 2020 August 1, 2020. December 31, 2020 Year ended December 31, 2020 Balance, beginning of period $ 1,400 Capitalization of costs 430 Amortization of costs (536 ) Write-down of Ting Mobile contract costs (932 ) Balance, end of period $ 362 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 deferred costs of fulfillment. These costs are deferred and amortized over the life of the domain which generally ranges from one ten December 31, 2020 no December 31, 2020 December 31, 2020 Year ended December 31, 2020 Balance, beginning of period $ 109,167 Deferral of costs 170,167 Recognized costs (168,268 ) Balance, end of period $ 111,066 |
Note 12 - Leases
Note 12 - Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 12. We lease datacenters, corporate offices and fiber-optic cables under operating leases. The Company does not Our leases have remaining lease terms of 1 year to 20 years, some of which may may The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars): Year Ended Year Ended December 31, 2020 December 31, 2019 Operating Lease Cost (leases with a total term greater than 12 months) $ 2,195 $ 3,057 Short-term Lease Cost (leases with a total term of 12 months or less) 501 1,040 Variable Lease Cost 589 657 Total Lease Cost $ 3,286 $ 4,754 Lease Cost is presented in general and administrative expenses and network expenses within our consolidated statements of operations and comprehensive income. Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars): Year Ended Year Ended Supplemental cashflow information: December 31, 2020 December 31, 2019 Operating Lease - Operating Cash Flows (Fixed Payments) $ 2,332 $ 3,130 Operating Lease - Operating Cash Flows (Liability Reduction) $ 1,952 $ 2,665 New ROU Assets - Operating Leases $ 2,798 $ 5,392 Supplemental balance sheet information related to leases: December 31, 2020 December 31, 2019 Weighted Average Discount Rate 3.60 % 5.20 % Weighted Average Remaining Lease Term 8.35 yrs 8.62 yrs Maturity of lease liability as of December 31, 2020 December 31, 2020 2021 $ 2,084 2022 2,057 2023 1,979 2024 1,439 2025 900 Thereafter 4,071 Total future lease payments 12,530 Less interest 1,590 Total $ 10,940 Operating lease payments include payments under the non-cancellable term and approximately $0.3 As of December 31, 2020 we have entered into lease agreements for total payments of $0.5 million that have not not |
Note 13 - Common Shares
Note 13 - Common Shares | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 13. The Company’s authorized common share capital is 250 million shares of common stock without nominal or par value. On December 31, 2020 December 31, 2019 Repurchase of common shares: (a) Normal Course Issuer Bids: 2021 On February 9, 2021, February 10, 2021 February 9, 2022. 20 2021 2020 On February 12, 2020, February 13, 2020 February 9, 2021. December 31, 2020, 2019 On February 13, 2019, $40 February 14, 2019 February 12, 2020. December 31, 2019, December 31, 2020 2018 On February 14, 2018, February 14, 2018 February 13, 2019. (b) Net Exercise of Stock Options Our current equity-based compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option holder can be paid for by having the option holder tender back to the Company a number of shares at fair value equal to the amounts due. These transactions are accounted for by the Company as a purchase and retirement of shares and are included in the table on the following page as common stock received in connection with share-based compensation. The following table summarizes our share repurchase activity for the periods covered below (Dollar amounts in thousands of US dollars, except for share data): Year Ended December 31, 2020 2019 2018 Common stock repurchased on the open market or through tender offer Number of shares 70,238 101,816 - Aggregate market value of shares (in thousands) $ 3,281 $ 4,986 $ - Average price per share $ 46.70 $ 48.97 $ - Common stock received in connection with share-based compensation Number of shares 48,013 21,332 19,777 Aggregate market value of shares (in thousands) $ 2,957 $ 1,510 $ 1,138 Average price per share $ 61.58 $ 70.77 $ 57.56 |
Note 14 - Stock Option Plans
Note 14 - Stock Option Plans | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 14. The Company’s 1996 “1996 may 1996 1996 four 1996 February 25, 2006; no On November 22, 2006, 2006 “2006 July 29, 2010 1996 2006 2006 October 8, 2010, 2006 September 2015, 2006 November 2020, 2006 2006 four not seven one five September 2015 2006 Our current equity-based compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option holder can be paid for by having the option holder tender back to the Company a number of shares at fair value equal to the amounts due. These transactions are accounted for by the Company as a purchase and retirement of shares. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company’s common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Tucows Inc. common shares at the date of grant. The fair value of stock options granted during the years ended December 31, 2020 December 31, 2019 December 31, 2018 Year Ended December 31, 2020 2019 2018 Volatility 39.0 % 36.5 % 37.9 % Risk-free interest rate 1.8 % 2.0 % 2.7 % Expected life (in years) 4.54 4.50 4.48 Dividend yield 0.0 % 0.0 % 0.0 % The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant $ 19.98 $ 20.20 $ 22.22 Details of stock option transactions are as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 754,497 $ 49.94 702,337 $ 43.80 653,571 $ 36.69 Granted 239,325 61.21 180,800 60.56 163,366 62.80 Exercised (113,132 ) 30.53 (80,319 ) 16.90 (63,886 ) 12.86 Forfeited (26,468 ) 60.29 (31,986 ) 59.35 (50,714 ) 52.33 Expired (9,202 ) 58.96 (16,335 ) 47.51 - - Outstanding, end of period 845,020 55.31 754,497 49.94 702,337 43.80 Options exercisable, end of period 401,345 $ 49.21 356,066 $ 40.64 326,937 $ 28.91 As of December 31, 2020 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 $15.93 - $19.95 48,564 $ 17.77 1.0 $ 2,726 48,564 $ 17.77 1.0 $ 2,726 $21.10 - $27.53 36,250 23.76 1.5 1,817 36,250 23.76 1.5 1,817 $35.25 - $37.35 5,625 36.88 1.5 208 4,375 37.35 1.0 160 $46.90 - $48.00 14,000 47.33 5.2 372 4,750 47.21 3.8 126 $51.82 - $59.98 309,659 55.51 3.5 5,690 233,378 55.49 3.4 4,295 $60.01 - $68.41 410,922 62.07 5.6 4,858 74,028 63.33 4.8 782 $72.50 - $72.50 20,000 72.50 6.9 28 - - - - 845,020 $ 55.31 4.4 $ 15,699 401,345 $ 49.21 3.2 $ 9,906 Total unrecognized compensation cost relating to unvested stock options at December 31, 2020 mately $7.3 m of 2.4 y The total intrinsic value of options exercised during the years ended December 31, 2020 December 31, 2019 December 31, 2018 s $3.7 million, $3.9 million and $2.9 December 31, 2020 December 31, 2019 December 31, 2018 The Company recorded stock-based compensation amounting to $3.7 million, $2.9 million and $2.6 million for the years ended December 31, 2020 2019 2018 Year Ended December 31, 2020 2019 2018 Network expenses $ 472 $ 307 $ 223 Sales and marketing 1,678 1,251 1,025 Technical operations and development 756 596 636 General and administrative 812 722 690 $ 3,718 $ 2,876 $ 2,574 |
Note 15 - Foreign Exchange
Note 15 - Foreign Exchange | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Foreign Currency Disclosure [Text Block] | 15. A foreign exchange loss amounting to $1.0 million has been recorded in general and administrative expenses during the year ended December 31, 2020 . A foreign exchange gain amounting to $0.4 million has been recorded in general and administrative expenses during the year ended December 31, 2019 . A foreign exchange loss amounting to $0.9 million has been recorded in general and administrative expenses during the year ended December 31, 2018 . |
Note 16 - Other Income (Expense
Note 16 - Other Income (Expenses) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | 16. In February 2015, three November 2015. three December 31, 2018. December 31, 2018 On August 1, 2020, one December 31, 2020 On August 1, 2020, 10 For the twelve months ended 2020 2019 2018 Write-down of Ting Mobile intangible assets $ (2,581 ) $ - $ - Write-down of Ting Mobile contract costs (932 ) - - Income earned on sale of Transferred Assets 11,125 - - Gain on sale of Ting customer assets $ 7,612 $ - $ - |
Note 17 - Earnings Per Common S
Note 17 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 17. The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation (Dollar amounts in thousands of US dollars, except for share data): Year ended December 31, 2020 2019 2018 Numerator for basic and diluted earnings per common share: Net income for the period $ 5,775 $ 15,398 $ 17,135 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,590,684 10,623,799 10,604,722 Effect of outstanding stock options 101,597 149,013 189,448 Diluted weighted average number of shares outstanding 10,692,281 10,772,812 10,794,170 Basic earnings per common share $ 0.55 $ 1.45 $ 1.62 Diluted earnings per common share $ 0.54 $ 1.43 $ 1.59 Options to purchas e 83,177 c 2020 2019 547,372 2018 451,739 not |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. (a) The Company has several non-cancelable lease and purchase obligations primarily for general office facilities, service contracts for mobile telephone services and equipment that expire over the next ten Contractual Obligations for the year ending December 31, Contractual Lease Obligations Debt Obligations Purchase Obligations (1) Total Obligations 2021 $ 2,084 $ - $ 10,262 $ 12,346 2022 2,057 - 9,742 11,799 2023 1,979 122,400 13,967 138,346 2024 1,439 - 19,078 20,517 2025 900 - 5,283 6,183 Thereafter 4,071 - 93 4,164 $ 12,530 $ 122,400 $ 58,425 $ 193,355 ( 1 2021 (b) On February 9, 2015 Under the agreement, the City will finance, construct, and maintain the WFN which will be leased to Ting for a period of ten Under the terms of the agreement, Ting may 2016, five December 31, 2020 , the City has drawn $17.5 million and the City’s revenues from Ting exceed the City’s debt service requirements. The Company does not 2021. (c) September 17, 2018 15 Ting is responsible for paying a fee per subscriber to SiFi. Through a “take or pay” arrangement, Ting has agreed to certain minimum charges based on minimum subscriber rates. These minimum fees are variable based on the percentage completion of the fiber optic network, and thus have not 18 (d) November 4, 2019 12 3 Ting is responsible for paying a fee per subscriber to Netly, as well as an unlit door fee for each serviceable address not not 18 (e) In the normal course of its operations, the Company becomes involved in various legal claims and lawsuits. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions or claims outstanding or pending as of December 31, 2020 not |
Note 19 - Segment Reporting
Note 19 - Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 19. (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 (i) a key measure of performance for each segment and (ii) 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 10 Information by reportable segments (with the exception of disaggregated revenue, which is discussed in “Note 10 Network Access Services Domain Services Consolidated Totals Year Ended December 31, 2020 Net Revenues $ 68,948 $ 242,254 $ 311,202 Cost of revenues Cost of revenues 32,950 167,451 200,401 Network expenses 2,430 7,764 10,194 Depreciation of property and equipment 10,544 1,600 12,144 Amortization of intangible assets 98 1,242 1,340 Impairment of Property Plant and Equipment 1,638 - 1,638 Total cost of revenues 47,660 178,057 225,717 Gross Profit 21,288 64,197 85,485 Expenses: Sales and marketing 34,274 Technical operations and development 12,427 General and administrative 20,268 Depreciation of property and equipment 488 Loss on disposition of property and equipment (17 ) Amortization of intangible assets 10,080 Impairment of definite life intangible assets 1,431 Loss (gain) on currency forward contracts (383 ) Income from operations 6,917 Other income (expenses), net 3,843 Income before provision for income taxes $ 10,760 Network Access Services Domain Services Consolidated Totals Year Ended December 31, 2019 Net Revenues $ 95,663 $ 241,482 $ 337,145 Cost of revenues Cost of revenues 48,343 169,236 217,579 Network expenses 2,007 7,183 9,190 Depreciation of property and equipment 6,877 1,598 8,475 Amortization of intangible assets 46 1,078 1,124 Total cost of revenues 57,273 179,095 236,368 Gross Profit 38,390 62,387 100,777 Expenses: Sales and marketing 34,270 Technical operations and development 9,717 General and administrative 17,880 Depreciation of property and equipment 486 Loss on disposition of property and equipment 73 Amortization of intangible assets 9,209 Loss (gain) on currency forward contracts (198 ) Income from operations 29,340 Other income (expenses), net (4,769 ) Income before provision for income taxes $ 24,571 Network Access Services Domain Services Consolidated Totals Year Ended December 31, 2018 Net Revenues $ 97,324 $ 248,689 $ 346,013 Cost of revenues Cost of revenues 50,055 182,048 232,103 Network expenses 2,029 7,817 9,846 Depreciation of property and equipment 4,063 1,235 5,298 Amortization of intangible assets 46 1,950 1,996 Total cost of revenues 56,193 193,050 249,243 Gross Profit 41,131 55,639 96,770 Expenses: Sales and marketing 33,063 Technical operations and development 8,748 General and administrative 17,710 Depreciation of property and equipment 424 Amortization of intangible assets 7,247 Loss (gain) on currency forward contracts 254 Income from operations 29,324 Other income (expenses), net (3,169 ) Income before provision for income taxes $ 26,155 (b) The following is a summary of the Company’s cost of revenues from each significant revenue stream (Dollar amounts in thousands of US dollars): 2020 2019 2018* Network Access Services: Mobile Services Retail mobile services $ 22,942 $ 44,415 $ 46,061 Mobile platform services 56 - - Other professional services 2,970 - - Total Mobile 25,968 44,415 46,061 Fiber Internet Services 6,982 3,928 3,994 Total Network Access Services 32,950 48,343 50,055 Domain Services: Wholesale Domain Services 146,788 148,530 160,216 Value Added Services 3,161 2,986 3,154 Total Wholesale 149,949 151,516 163,370 Retail 17,023 17,093 17,725 Portfolio 479 627 953 Total Domain Services 167,451 169,236 182,048 Network Expenses: Network, other costs 10,194 9,190 9,846 Network, depreciation and amortization costs 13,484 9,599 7,294 Network, impairment 1,638 - - Total Network Expenses 25,316 18,789 17,140 $ 225,717 $ 236,368 $ 249,243 (c) The following is a summary of the Company’s property and equipment by geographic region (Dollar amounts in thousands of US dollars): December 31, 2020 December 31, 2019 Canada $ 2,521 $ 2,319 United States 114,968 79,758 Europe 41 44 $ 117,530 $ 82,121 (d) The following is a summary of the Company’s amortizable intangible assets by geographic region (Dollar amounts in thousands of US dollars): December 31, 2020 December 31, 2019 Canada $ 2,385 $ 5,207 United States 32,767 40,138 $ 35,152 $ 45,345 (e) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region (Dollar amounts in thousands of US dollars): December 31, 2020 December 31, 2019 Germany $ 226 $ - $ 226 $ - (f) Valuation and qualifying accounts (Dollar amounts in thousands of US dollars): Allowance for doubtful accounts Balance at beginning of period Charged to costs and expenses Write-offs during period Balance at end of period Year Ended December 31, 2020 $ 131 $ 91 $ - $ 222 Year Ended December 31, 2019 $ 132 $ (1 ) $ - $ 131 |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 20. A. On February 9, 2021, February 10, 2021 February 9, 2022. February 13, 2020 February 12, 2021 February 9, 2021. 2019 2.00:1. |
Note 21 - Selected Quarterly Fi
Note 21 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 21. December 31 September 30 June 30 March 31 (in thousands, except for per share data) 2020 Total revenues $ 70,784 $ 74,311 $ 82,122 $ 83,985 Gross profit 17,428 19,941 22,966 25,150 Net income 2,068 716 157 2,834 Earnings per share: Basic $ 0.19 $ 0.07 $ 0.01 $ 0.27 Diluted 0.19 0.07 0.01 0.26 2019 Total revenues $ 85,946 $ 88,129 $ 84,117 $ 78,953 Gross profit 26,045 27,574 24,507 22,651 Net income 5,778 4,205 2,616 2,799 Earnings per share: Basic $ 0.55 $ 0.40 $ 0.25 $ 0.26 Diluted 0.54 0.39 0.24 0.26 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. |
Use of Estimates, Policy [Policy Text Block] | (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for bad debts and inventory obsolescence which requires estimates of sales forecasts and other marketplace considerations, internal use software which requires estimates of whether the costs incurred meet the criteria for capitalization based on the stage of the projects, the portion of MSE billings related to professional services, the recoverability of goodwill and intangible assets which require estimates of future cash flows and discount rates, lease liability which requires estimates of incremental borrowing rate and the expectation of exercising lease renewal periods, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience, available market information as applicable, and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (c) Cash and cash equivalents All highly liquid investments, with an original term to maturity of three |
Inventory, Policy [Policy Text Block] | (d) Inventory Inventory primarily consists of Internet optical network terminals and customer installation equipment. To a lesser extent, inventory also includes mobile devices, mobile sim cards and related accessories. All inventory is stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device, accessory shipped or optical network terminals. The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may |
Property, Plant and Equipment, Policy [Policy Text Block] | (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: Rate Asset Computer equipment 30% Computer software 33 1/3 - 100% Furniture and equipment 20% Vehicles and tools 20% Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease Capitalized internal use software (years) 3 7 The Company reviews the carrying values of its property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not Additions to the fiber network are recorded at cost, including all material, labor, vehicle and installation and construction costs and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the fiber network level and not Additions to land are recorded at cost, and include any direct costs associated with the purchase, as well as any direct costs incurred to bring it to the condition necessary for its intended use, such as legal fees associated with the acquisition and the cost of permanent improvements. Land is not We capitalize costs for software to be used internally when we enter the application development stage. This occurs when we complete the preliminary project stage, management authorizes and commits to funding the project, and it is feasible that the project will be completed and the software will perform the intended function. We cease to capitalize costs related to a software project when it enters the post implementation and operation stage. Costs capitalized during the application development stage consist of payroll and related costs for employees who are directly associated with, and who devote time directly to, a project to develop software for internal use. External contractor costs who are directly associated with, and who devote time directly to, a project to develop software for internal use are also capitalized. Generally, we do not may 11 not The capitalized software development costs are generally to be amortized using the straight-line method over a 3 to 7-year period. In determining and reassessing the estimated useful life over which the cost incurred for the software should be amortized, we consider the effects of obsolescence, technology, competition and other economic factors. |
Derivatives, Policy [Policy Text Block] | (f) Derivative Financial Instruments The Company uses derivative financial instruments to manage foreign currency exchange risk. The Company also uses pay-fixed, receive-variable interest rate swap with a Canadian chartered bank to limit the potential interest rate fluctuations incurred on its future cash flows related to variable interest payments on the Credit facility. The Company accounts for these instruments in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 815, 815" 815 For certain foreign currency contracts, the Company has not The fair value of the forward exchange contracts is determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company's and the counterparty's credit risk. The valuation technique used to measure the fair values of the derivative instruments is a discounted cash flow technique, with all significant inputs derived from or corroborated by observable market data, as no |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | (g) Goodwill and Other Intangible assets Goodwill Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not fourth two The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not not not no may If required to perform the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance for its operating segment. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. Intangibles Assets Not Intangible assets not no The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not Intangible Assets Subject to Amortization Intangible assets subject to amortization, consist of brand, customer relationships, technology and network rights and are amortized on a straight-line basis over their estimated useful lives as follows: (in years) Technology 2 Brand 7 Customer relationships 3 - 7 Network rights 15 The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization may may not |
Revenue [Policy Text Block] | (h) Revenue recognition See “Note 10 |
Revenue from Contract with Customer [Policy Text Block] | (i) Deferred revenue Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other domain related Internet services, on both a wholesale and retail basis, net of external commissions. To a lesser extent, deferred revenue also includes a portion of the transaction price received from mobile platform services, which are related to professional services. |
Insurance, Long-Duration Contract [Policy Text Block] | (j) Contract Costs See “Note 11 |
Lessee, Leases [Policy Text Block] | (k) Leases See note 2 842 January 1, 2019. Under ASC 842, Certain lease agreements contain variable payments, which are expensed as incurred and not We have elected to consider leases with a term of 12 not Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not Operating lease expense is recognized on a straight-line basis over the lease term. |
Accreditation Fees Payable [Policy Text Block] | (l) Accreditation fees payable In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (m) Translation of foreign currency transactions The Company’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the rate at the date of the transactions. |
Income Tax, Policy [Policy Text Block] | (n) Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not not” The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than- not not 50% 12 |
Compensation Related Costs, Policy [Policy Text Block] | (o) Stock-based compensation Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest, reduced for estimated forfeitures. |
Earnings Per Share, Policy [Policy Text Block] | (p) Earnings per common share Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (q) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable, forward foreign exchange contracts and pay-fixed, receive-variable interest rate swap contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three not not |
Fair Value Measurement, Policy [Policy Text Block] | (r) Fair value measurement Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three Level 1—Quoted Level 2—Observable Level 3—No Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may The fair value of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 The fair value of the derivative financial instruments is determined using an estimated credit-adjusted mark-to-market valuation (a level 2 |
Investment, Policy [Policy Text Block] | (s) Investments The Company accounts for investment in entities over which it has the ability to exert significant influence, but does not not not |
Segment Reporting, Policy [Policy Text Block] | (t) Segment reporting The Company operates in two The Company’s Domain Services revenues are attributed to the country in which the contract originates. Revenues from domain names issued under the OpenSRS, brand from the Ontario, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. Revenues from domain names issued under the eNom brand from the Washington state location are attributable to the United States because it is impracticable to determine the country of the customer. Revenues from domain names issued under the Ascio brand from the Copenhagen, Denmark location are attributed to Denmark because it is impracticable to determine the country of the customer. Revenues from domain names issued under the EPAG brand from the Bonn, Germany location are attributed to Germany because it is impracticable to determine the country of the customer. The Company’s Network Access Services which consist primarily of MSE services, professional services, mobile telephony services and the provisioning of high speed Internet access services, are generated primarily through its business operations in the United States. The Company’s assets are primarily located in Canada, the United States and Europe. |
New Accounting Pronouncements, Policy [Policy Text Block] | (u) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted ASU 2016 - 02: Adoption of Leases (Topic 842 The Company adopted ASU No. 2016 02, Leases 842 2016 02” January 1, 2019. The Company has elected to apply ASU 2016 02 2018 11, January 1, 2019 2018 not 840. The Company elected the practical expedient to use hindsight when considering the likelihood that lessee options to extend or terminate a lease or purchase the underlying asset will be exercised, and in assessing the impairment of right-of-use assets. The Company elected the practical expedient not As a result of adopting ASU 2016 02, January 1, 2019. no 2016 02 not 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 2014 09 not not 2014 09 605. 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 ASU 2014 09, 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, Other In August 2017, No. 2017 12, Derivatives and Hedging (Topic 815 ): Targeted Improvements to Accounting for Hedging Activities 2017 12” 2017 12 January 1, 2019 not In August 2018, No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software 350 40 2018 15” 2018 15 not 2018 15 2018 15 January 1, 2020 not Recent Accounting Pronouncements Not Yet Adopted In March 2020, No. 2020 04, Reference Rate Reform 848 2020 04” 2020 04 a) Modifications of contracts within the scope of Topics 310, 470, b) Modifications of contracts within the scope of Topic 842, no not c) Modifications of contracts do not 815 15, The amendments in ASU 2020 04 March 12, 2020 December 31, 2022. 2019 may 2020 04. |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Depreciation Rates [Table Text Block] | Rate Asset Computer equipment 30% Computer software 33 1/3 - 100% Furniture and equipment 20% Vehicles and tools 20% Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease Capitalized internal use software (years) 3 7 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | (in years) Technology 2 Brand 7 Customer relationships 3 - 7 Network rights 15 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Goodwill $ 19,765 Cash 1,437 Brand 2,090 Developed technology 2,440 Customer relationships 10,610 Prepaid domain registry fees 10,318 Other assets 2,218 Total assets 48,878 Deferred Revenue (12,510 ) Deferred Tax Liabilities (2,852 ) Other liabilities (3,630 ) Total liabilities (18,992 ) Consideration Paid $ 29,886 Cash Consideration, including working capital adjustment $ 8,836 Share-based payment 2,000 Fair value of contingent payments 3,072 Total estimated purchase price 13,908 Cash and Cash Equivalents 66 Accounts Receivables, net 13 Other current assets 22 Property and equipment 4,661 Right of use operating lease 18 Customer relationships 4,640 Network rights 750 Total identifiable assets 10,170 Accounts payable and accrued labilities (362 ) Deferred tax liability (2,373 ) Operating lease liability (13 ) Total liabilities assumed (2,748 ) Total net assets (liabilities) assumed 7,422 Total goodwill $ 6,486 |
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudited Year Ended December 31, 2020 2019 Net revenues $ 311,202 $ 342,056 Net income 5,775 15,181 Basic earnings per common share 0.55 1.43 Diluted earnings per common share $ 0.54 $ 1.41 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, December 31, 2020 2019 Computer equipment $ 25,029 $ 18,027 Computer software 1,760 2,336 Capitalized internal use software 2,835 1,270 Furniture and equipment 1,314 1,394 Vehicles and tools 4,476 2,656 Fiber network 66,766 40,645 Customer equipment and installations 13,332 8,586 Land 1,634 1,511 Assets under construction 36,720 30,352 Leasehold improvements 475 542 154,341 107,319 Less: Accumulated depreciation 36,811 25,198 $ 117,530 $ 82,121 |
Schedule of Depreciation [Table Text Block] | Year Ended December 31, Year Ended December 31, Year Ended December 31, 2020 2019 2018 Depreciation of property and equipment $ 12,632 $ 8,961 $ 5,722 |
Note 5 - Goodwill and Other I_2
Note 5 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Network Access Services Domain Services Total Balances, December 31, 2018 $ 2,132 $ 87,922 $ 90,054 Ascio Technologies Inc. acquisition - 19,764 19,764 Balances, December 31, 2019 $ 2,132 $ 107,686 $ 109,818 Cedar Holdings Group, Inc. acquisition 6,486 - 6,486 Balances, December 31, 2020 $ 8,618 $ 107,686 $ 116,304 |
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 3 - 7 years 2 years 15 years Balances, December 31, 2018 $ 11,176 $ 1,247 $ 9,004 $ 27,290 $ 163 $ 515 $ 49,395 Ascio Technologies Inc. acquisition - - 2,090 10,610 2,440 - 15,140 FreedomPop acquisition - - - 3,475 - - 3,475 Acquisition of customer relationships - - - 91 - - 91 Additions to/(disposals from) domain portfolio, net (12 ) (102 ) - - - - (114 ) Amortization expense - - (2,003 ) (7,197 ) (1,087 ) (46 ) (10,333 ) Balances December 31, 2019 $ 11,164 $ 1,145 $ 9,091 $ 34,269 $ 1,516 $ 469 57,654 Cedar Holdings Group Inc. acquisition - - - 4,640 - 750 5,390 Additions to/(disposals from) domain portfolio, net (7 ) (10 ) - - - - (17 ) Impairment of definite life intangible asset (1,431 ) (1,431 ) Other (223 ) (223 ) Write-down of Ting Mobile customer relationships - - - (2,581 ) - - (2,581 ) Acquisition of Network rights - 72 72 Amortization expense - - (2,070 ) (8,010 ) (1,242 ) (98 ) (11,420 ) Balances December 31, 2020 $ 11,157 $ 1,135 $ 7,021 $ 26,664 $ 274 $ 1,193 $ 47,444 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 2021 $ 9,515 2022 9,345 2023 8,669 2024 4,455 2025 2,587 Thereafter 581 Total $ 35,152 |
Note 6 - Fair Value Measureme_2
Note 6 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 2020 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset, net $ - $ 3,647 $ - $ 3,647 Total Assets, net $ - $ 3,647 $ - $ 3,647 December 31, 2019 Fair Value Measurement Using Assets (Liabilities) Level 1 Level 2 Level 3 at Fair value Derivative instrument asset, net $ - $ 731 $ - $ 731 Total Assets, net $ - $ 731 $ - $ 731 |
Note 7 - Derivative Instrumen_2
Note 7 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 January - March 2021 11,125 1.4283 1,327 April - June 2021 9,879 1.4283 1,179 July - September 2021 10,782 1.4362 1,353 $ 31,786 1.4310 $ 3,860 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives (Dollar amounts in thousands of U.S. dollars) Balance Sheet Location As of December 31, 2020 Fair Value Asset As of December 31, 2019 Fair Value Asset Foreign Currency forward contracts designated as cash flow hedges (net) Derivative instruments $ 3,254 $ 626 Interest rate swap contract designated as a cash flow hedge (net) Derivative instruments $ (213 ) $ - Foreign Currency forward contracts not designated as cash flow hedges (net) Derivative instruments 606 105 Total foreign currency forward contracts (net) Derivative instruments $ 3,647 $ 731 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance - December 31, 2019 $ 625 $ (152 ) $ 473 Other comprehensive income (loss) before reclassifications 2,142 (489 ) 1,653 Amount reclassified from AOCI 271 (61 ) 210 Other comprehensive income (loss) for the year ended December 31, 2020 2,413 (550 ) 1,863 Ending AOCI Balance - December 31, 2020 $ 3,038 $ (702 ) $ 2,336 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance - December 31, 2018 $ (1,069 ) $ 259 $ (810 ) Other comprehensive income (loss) before reclassifications 1,454 (353 ) 1,101 Amount reclassified from AOCI 240 (58 ) 182 Other comprehensive income (loss) for the year ended December 31, 2019 1,694 (411 ) 1,283 Ending AOCI Balance - December 31, 2019 $ 625 $ (152 ) $ 473 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance - December 31, 2017 $ - $ - $ - Other comprehensive income (loss) before reclassifications (1,350 ) 328 (1,022 ) Amount reclassified from AOCI 281 (69 ) 212 Other comprehensive income (loss) for the year ended December 31, 2018 (1,069 ) 259 (810 ) Ending AOCI Balance - December 31, 2018 $ (1,069 ) $ 259 $ (810 ) |
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 Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Operating expenses $ (188 ) Foreign currency forward contracts for the year ended December 31, 2020 $ 2,026 Cost of revenues $ (66 ) Interest rate swap contract for the year ended December 31, 2020 $ (163 ) Interest expense, net $ (17 ) Operating expenses $ (197 ) Foreign currency forward contracts for the year ended December 31, 2019 $ 1,283 Cost of revenues $ (43 ) Interest rate swap contract for the year ended December 31, 2019 $ - Interest expense, net $ - Operating expenses $ (245 ) Foreign currency forward contracts for the year ended December 31, 2018 $ (810 ) Cost of revenues $ (36 ) Interest rate swap contract for the year ended December 31, 2018 $ - Interest expense, net $ - |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Year Ended December 31, Forward currency contracts not designated as hedges: 2020 2019 2018 Gain (loss) on settlement $ (117 ) $ (115 ) $ (47 ) Gain (loss) on change in fair value $ 500 $ 313 $ (207 ) |
Note 8 - Loan Payable (Tables)
Note 8 - Loan Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2.50 Greater than or equal to 2.50 Canadian dollar borrowings based on Bankers’ Acceptance or U.S. dollar borrowings based on LIBOR (Margin) 1.50% 1.85% 2.35% 2.85% Canadian or U.S. dollar borrowings based on Prime Rate or U.S. dollar borrowings based on Base Rate (Margin) 0.25% 0.60% 1.10% 1.60% Standby fees 0.30% 0.37% 0.47% 0.57% |
Schedule of Debt [Table Text Block] | December 31, 2020 December 31, 2019 Revolver 122,400 114,400 Less: unamortized debt discount and issuance costs (667 ) (897 ) Total loan payable 121,733 113,503 Less: loan payable, current portion - - Loan payable, long-term portion 121,733 113,503 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2021 - 2022 - 2023 122,400 $ 122,400 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2020 2019 2018 Income for the year before provision for income taxes $ 10,760 $ 24,571 $ 26,155 Computed federal tax expense 2,259 5,160 5,492 Increase (reduction) in income tax expense resulting from: State income taxes 303 526 846 Change in Valuation allowance 1,867 5,277 2,811 Expired business tax credits 1,044 - - Non-creditable Foreign Tax 818 515 - Excess tax benefits on share-based compensation expense (407 ) (634 ) (697 ) Permanent differences (161 ) (103 ) 159 Effect of deferred tax in foreign branch (774 ) (840 ) - Others 36 (728 ) 409 Provision for income taxes $ 4,985 $ 9,173 $ 9,020 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2020 December 31, 2019 Deferred tax assets (liabilities): Deferred tax assets: Deferred revenue $ 5,739 $ 6,301 Foreign tax credits and general business credits 11,203 9,004 Net operating losses 1,452 1,341 Accruals, including foreign exchange and other 792 1,490 Sub-total Deferred tax assets 19,186 18,136 Valuation allowance (11,232 ) (9,365 ) Total deferred tax assets $ 7,954 $ 8,771 Deferred tax liabilities: Prepaid registry fees and expenses $ (16,909 ) $ (16,237 ) Amortization (7,083 ) (6,925 ) Limited life intangible assets (4,327 ) (5,958 ) Indefinite life intangible assets (2,847 ) (3,110 ) Foreign branch deferred tax liability (1,256 ) (2,012 ) Total deferred tax liability $ (32,422 ) $ (34,242 ) Net deferred tax asset (liability) $ (24,468 ) $ (25,471 ) |
Note 10 - Revenue (Tables)
Note 10 - Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | 2020 2019 2018* Network Access Services: Mobile Services Retail mobile services $ 46,540 $ 84,657 $ 89,340 Mobile platform services 564 - - Other professional services 3,416 - - Total Mobile 50,520 84,657 89,340 Fiber Internet Services 18,428 11,006 7,984 Total Network Access Services 68,948 95,663 97,324 Domain Services: Wholesale Domain Services 186,893 182,957 189,434 Value Added Services 19,788 18,922 17,756 Total Wholesale 206,681 201,879 207,190 Retail 34,323 34,786 34,524 Portfolio 1,250 4,817 6,975 Total Domain Services 242,254 241,482 248,689 $ 311,202 $ 337,145 $ 346,013 |
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | 2020 2019 2018* Network Access Services: Mobile Services Retail mobile services $ 22,942 $ 44,415 $ 46,061 Mobile platform services 56 - - Other professional services 2,970 - - Total Mobile 25,968 44,415 46,061 Fiber Internet Services 6,982 3,928 3,994 Total Network Access Services 32,950 48,343 50,055 Domain Services: Wholesale Domain Services 146,788 148,530 160,216 Value Added Services 3,161 2,986 3,154 Total Wholesale 149,949 151,516 163,370 Retail 17,023 17,093 17,725 Portfolio 479 627 953 Total Domain Services 167,451 169,236 182,048 Network Expenses: Network, other costs 10,194 9,190 9,846 Network, depreciation and amortization costs 13,484 9,599 7,294 Network, impairment 1,638 - - Total Network Expenses 25,316 18,789 17,140 $ 225,717 $ 236,368 $ 249,243 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Year ended December 31, 2020 Balance, beginning of period $ 149,303 Deferred revenue 234,047 Recognized revenue (231,105 ) Balance, end of period $ 152,245 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Year ended December 31, 2020 2021 $ 124,271 2022 11,493 2023 5,212 2024 3,231 2025 1,994 Thereafter 2,979 Total $ 149,180 |
Note 11 - Costs to Obtain and_2
Note 11 - Costs to Obtain and Fulfill a Contract (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Capitalized Contract Cost [Table Text Block] | Year ended December 31, 2020 Balance, beginning of period $ 1,400 Capitalization of costs 430 Amortization of costs (536 ) Write-down of Ting Mobile contract costs (932 ) Balance, end of period $ 362 Year ended December 31, 2020 Balance, beginning of period $ 109,167 Deferral of costs 170,167 Recognized costs (168,268 ) Balance, end of period $ 111,066 |
Note 12 - Leases (Tables)
Note 12 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Year Ended Year Ended December 31, 2020 December 31, 2019 Operating Lease Cost (leases with a total term greater than 12 months) $ 2,195 $ 3,057 Short-term Lease Cost (leases with a total term of 12 months or less) 501 1,040 Variable Lease Cost 589 657 Total Lease Cost $ 3,286 $ 4,754 Year Ended Year Ended Supplemental cashflow information: December 31, 2020 December 31, 2019 Operating Lease - Operating Cash Flows (Fixed Payments) $ 2,332 $ 3,130 Operating Lease - Operating Cash Flows (Liability Reduction) $ 1,952 $ 2,665 New ROU Assets - Operating Leases $ 2,798 $ 5,392 Supplemental balance sheet information related to leases: December 31, 2020 December 31, 2019 Weighted Average Discount Rate 3.60 % 5.20 % Weighted Average Remaining Lease Term 8.35 yrs 8.62 yrs |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | December 31, 2020 2021 $ 2,084 2022 2,057 2023 1,979 2024 1,439 2025 900 Thereafter 4,071 Total future lease payments 12,530 Less interest 1,590 Total $ 10,940 |
Note 13 - Common Shares (Tables
Note 13 - Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Share Repurchases [Table Text Block] | Year Ended December 31, 2020 2019 2018 Common stock repurchased on the open market or through tender offer Number of shares 70,238 101,816 - Aggregate market value of shares (in thousands) $ 3,281 $ 4,986 $ - Average price per share $ 46.70 $ 48.97 $ - Common stock received in connection with share-based compensation Number of shares 48,013 21,332 19,777 Aggregate market value of shares (in thousands) $ 2,957 $ 1,510 $ 1,138 Average price per share $ 61.58 $ 70.77 $ 57.56 |
Note 14 - Stock Option Plans (T
Note 14 - Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 2020 2019 2018 Volatility 39.0 % 36.5 % 37.9 % Risk-free interest rate 1.8 % 2.0 % 2.7 % Expected life (in years) 4.54 4.50 4.48 Dividend yield 0.0 % 0.0 % 0.0 % The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant $ 19.98 $ 20.20 $ 22.22 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of period 754,497 $ 49.94 702,337 $ 43.80 653,571 $ 36.69 Granted 239,325 61.21 180,800 60.56 163,366 62.80 Exercised (113,132 ) 30.53 (80,319 ) 16.90 (63,886 ) 12.86 Forfeited (26,468 ) 60.29 (31,986 ) 59.35 (50,714 ) 52.33 Expired (9,202 ) 58.96 (16,335 ) 47.51 - - Outstanding, end of period 845,020 55.31 754,497 49.94 702,337 43.80 Options exercisable, end of period 401,345 $ 49.21 356,066 $ 40.64 326,937 $ 28.91 |
Share-based Payment Arrangement, Option, 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 $15.93 - $19.95 48,564 $ 17.77 1.0 $ 2,726 48,564 $ 17.77 1.0 $ 2,726 $21.10 - $27.53 36,250 23.76 1.5 1,817 36,250 23.76 1.5 1,817 $35.25 - $37.35 5,625 36.88 1.5 208 4,375 37.35 1.0 160 $46.90 - $48.00 14,000 47.33 5.2 372 4,750 47.21 3.8 126 $51.82 - $59.98 309,659 55.51 3.5 5,690 233,378 55.49 3.4 4,295 $60.01 - $68.41 410,922 62.07 5.6 4,858 74,028 63.33 4.8 782 $72.50 - $72.50 20,000 72.50 6.9 28 - - - - 845,020 $ 55.31 4.4 $ 15,699 401,345 $ 49.21 3.2 $ 9,906 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Year Ended December 31, 2020 2019 2018 Network expenses $ 472 $ 307 $ 223 Sales and marketing 1,678 1,251 1,025 Technical operations and development 756 596 636 General and administrative 812 722 690 $ 3,718 $ 2,876 $ 2,574 |
Note 16 - Other Income (Expen_2
Note 16 - Other Income (Expenses) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | For the twelve months ended 2020 2019 2018 Write-down of Ting Mobile intangible assets $ (2,581 ) $ - $ - Write-down of Ting Mobile contract costs (932 ) - - Income earned on sale of Transferred Assets 11,125 - - Gain on sale of Ting customer assets $ 7,612 $ - $ - |
Note 17 - Earnings Per Common_2
Note 17 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31, 2020 2019 2018 Numerator for basic and diluted earnings per common share: Net income for the period $ 5,775 $ 15,398 $ 17,135 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,590,684 10,623,799 10,604,722 Effect of outstanding stock options 101,597 149,013 189,448 Diluted weighted average number of shares outstanding 10,692,281 10,772,812 10,794,170 Basic earnings per common share $ 0.55 $ 1.45 $ 1.62 Diluted earnings per common share $ 0.54 $ 1.43 $ 1.59 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | Contractual Obligations for the year ending December 31, Contractual Lease Obligations Debt Obligations Purchase Obligations (1) Total Obligations 2021 $ 2,084 $ - $ 10,262 $ 12,346 2022 2,057 - 9,742 11,799 2023 1,979 122,400 13,967 138,346 2024 1,439 - 19,078 20,517 2025 900 - 5,283 6,183 Thereafter 4,071 - 93 4,164 $ 12,530 $ 122,400 $ 58,425 $ 193,355 |
Note 19 - Segment Reporting (Ta
Note 19 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Network Access Services Domain Services Consolidated Totals Year Ended December 31, 2020 Net Revenues $ 68,948 $ 242,254 $ 311,202 Cost of revenues Cost of revenues 32,950 167,451 200,401 Network expenses 2,430 7,764 10,194 Depreciation of property and equipment 10,544 1,600 12,144 Amortization of intangible assets 98 1,242 1,340 Impairment of Property Plant and Equipment 1,638 - 1,638 Total cost of revenues 47,660 178,057 225,717 Gross Profit 21,288 64,197 85,485 Expenses: Sales and marketing 34,274 Technical operations and development 12,427 General and administrative 20,268 Depreciation of property and equipment 488 Loss on disposition of property and equipment (17 ) Amortization of intangible assets 10,080 Impairment of definite life intangible assets 1,431 Loss (gain) on currency forward contracts (383 ) Income from operations 6,917 Other income (expenses), net 3,843 Income before provision for income taxes $ 10,760 Network Access Services Domain Services Consolidated Totals Year Ended December 31, 2019 Net Revenues $ 95,663 $ 241,482 $ 337,145 Cost of revenues Cost of revenues 48,343 169,236 217,579 Network expenses 2,007 7,183 9,190 Depreciation of property and equipment 6,877 1,598 8,475 Amortization of intangible assets 46 1,078 1,124 Total cost of revenues 57,273 179,095 236,368 Gross Profit 38,390 62,387 100,777 Expenses: Sales and marketing 34,270 Technical operations and development 9,717 General and administrative 17,880 Depreciation of property and equipment 486 Loss on disposition of property and equipment 73 Amortization of intangible assets 9,209 Loss (gain) on currency forward contracts (198 ) Income from operations 29,340 Other income (expenses), net (4,769 ) Income before provision for income taxes $ 24,571 Network Access Services Domain Services Consolidated Totals Year Ended December 31, 2018 Net Revenues $ 97,324 $ 248,689 $ 346,013 Cost of revenues Cost of revenues 50,055 182,048 232,103 Network expenses 2,029 7,817 9,846 Depreciation of property and equipment 4,063 1,235 5,298 Amortization of intangible assets 46 1,950 1,996 Total cost of revenues 56,193 193,050 249,243 Gross Profit 41,131 55,639 96,770 Expenses: Sales and marketing 33,063 Technical operations and development 8,748 General and administrative 17,710 Depreciation of property and equipment 424 Amortization of intangible assets 7,247 Loss (gain) on currency forward contracts 254 Income from operations 29,324 Other income (expenses), net (3,169 ) Income before provision for income taxes $ 26,155 |
Summary of Cost of Revenues from Each Significant Revenue Stream By Segment [Table Text Block] | 2020 2019 2018* Network Access Services: Mobile Services Retail mobile services $ 22,942 $ 44,415 $ 46,061 Mobile platform services 56 - - Other professional services 2,970 - - Total Mobile 25,968 44,415 46,061 Fiber Internet Services 6,982 3,928 3,994 Total Network Access Services 32,950 48,343 50,055 Domain Services: Wholesale Domain Services 146,788 148,530 160,216 Value Added Services 3,161 2,986 3,154 Total Wholesale 149,949 151,516 163,370 Retail 17,023 17,093 17,725 Portfolio 479 627 953 Total Domain Services 167,451 169,236 182,048 Network Expenses: Network, other costs 10,194 9,190 9,846 Network, depreciation and amortization costs 13,484 9,599 7,294 Network, impairment 1,638 - - Total Network Expenses 25,316 18,789 17,140 $ 225,717 $ 236,368 $ 249,243 |
Schedule of Property Plant and Equipment by Geographic Region [Table Text Block] | December 31, 2020 December 31, 2019 Canada $ 2,521 $ 2,319 United States 114,968 79,758 Europe 41 44 $ 117,530 $ 82,121 |
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | December 31, 2020 December 31, 2019 Canada $ 2,385 $ 5,207 United States 32,767 40,138 $ 35,152 $ 45,345 |
Schedule of Deferred Tax Asset Net By Geographic Region [Table Text Block] | December 31, 2020 December 31, 2019 Germany $ 226 $ - $ 226 $ - |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Allowance for doubtful accounts Balance at beginning of period Charged to costs and expenses Write-offs during period Balance at end of period Year Ended December 31, 2020 $ 131 $ 91 $ - $ 222 Year Ended December 31, 2019 $ 132 $ (1 ) $ - $ 131 |
Note 21 - Selected Quarterly _2
Note 21 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | December 31 September 30 June 30 March 31 (in thousands, except for per share data) 2020 Total revenues $ 70,784 $ 74,311 $ 82,122 $ 83,985 Gross profit 17,428 19,941 22,966 25,150 Net income 2,068 716 157 2,834 Earnings per share: Basic $ 0.19 $ 0.07 $ 0.01 $ 0.27 Diluted 0.19 0.07 0.01 0.26 2019 Total revenues $ 85,946 $ 88,129 $ 84,117 $ 78,953 Gross profit 26,045 27,574 24,507 22,651 Net income 5,778 4,205 2,616 2,799 Earnings per share: Basic $ 0.55 $ 0.40 $ 0.25 $ 0.26 Diluted 0.54 0.39 0.24 0.26 |
Note 2 - Significant Accounti_3
Note 2 - Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Number of Operating Segments | 2 | |||
Operating Lease, Right-of-Use Asset | $ 11,238 | $ 11,335 | ||
Operating Lease, Liability, Total | 10,940 | |||
Capitalized Contract Cost, Net, Total | $ 1,400 | |||
Retained Earnings (Accumulated Deficit), Ending Balance | 80,106 | 76,208 | ||
Deferred Income Tax Liabilities, Net, Total | $ 24,694 | $ 25,471 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 8,800 | |||
Operating Lease, Liability, Total | 8,300 | |||
Operating Lease, Right-of-Use Asset, Net | 500 | |||
Deferred Rent Credit | (100) | |||
Prepaid Expense | $ (600) | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | 1,100 | |||
Deferred Income Tax Liabilities, Net, Total | $ 300 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 2 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||
Capitalized Internal Use Software [Member] | Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | |||
Capitalized Internal Use Software [Member] | Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years |
Note 2 - Significant Accounti_4
Note 2 - Significant Accounting Policies - Summary of Property, Plant and Equipment Depreciation Rates (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Fiber network (years) (Year) | 2 years |
Maximum [Member] | |
Fiber network (years) (Year) | 15 years |
Computer Equipment [Member] | |
Depreciation Rate | 30.00% |
Computer Software [Member] | Maximum [Member] | |
Depreciation Rate | 100.00% |
Furniture and Fixtures [Member] | |
Depreciation Rate | 20.00% |
Vehicles and Tools [Member] | |
Depreciation Rate | 20.00% |
Fiber Network [Member] | |
Fiber network (years) (Year) | 15 years |
Customer Equipment and Installations [Member] | |
Fiber network (years) (Year) | 3 years |
Capitalized Internal Use Software [Member] | Minimum [Member] | |
Fiber network (years) (Year) | 3 years |
Capitalized Internal Use Software [Member] | Maximum [Member] | |
Fiber network (years) (Year) | 7 years |
Note 2 - Significant Accounti_5
Note 2 - Significant Accounting Policies - Intangible Asset Useful Life (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Intangible Asset Useful Life (Year) | 2 years |
Maximum [Member] | |
Intangible Asset Useful Life (Year) | 15 years |
Technology-Based Intangible Assets [Member] | |
Intangible Asset Useful Life (Year) | 2 years |
Brand [Member] | |
Intangible Asset Useful Life (Year) | 7 years |
Customer Relationships [Member] | Minimum [Member] | |
Intangible Asset Useful Life (Year) | 3 years |
Customer Relationships [Member] | Maximum [Member] | |
Intangible Asset Useful Life (Year) | 7 years |
Network Rights [Member] | |
Intangible Asset Useful Life (Year) | 15 years |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) $ in Thousands | Jan. 01, 2020USD ($)shares | Mar. 18, 2019USD ($) | Feb. 13, 2018USD ($) | Feb. 01, 2017USD ($) | Feb. 27, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Combination, Acquisition Related Costs | $ 500 | $ 300 | $ 200 | ||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 4,700 | ||||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 700 | ||||||||
Network Rights [Member] | |||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | ||||||||
Ting Virginia LLC [Member] | |||||||||
Business Combination, Consideration Transferred, Total | $ 1,200 | ||||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 1,200 | ||||||||
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 | $ 2,000 | $ 3,500 | |||||||
Business Combination, Interest Subject to Call Option, Not Exercised in Period | 10.00% | ||||||||
Ascio Technologies, Inc. [Member] | |||||||||
Business Combination, Consideration Transferred, Total | $ 29,886 | ||||||||
Business Combination, Consideration Transferred, Excluding Working Capital Deficiency Acquired | 29,440 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Working Capital Deficiency | $ 450 | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years | ||||||||
Cedar Holdings Group, Incorporated [Member] | |||||||||
Business Combination, Consideration Transferred, Total | $ 14,100 | ||||||||
Business Combination, Consideration Transferred, Estimated Price Adjustments | 200 | ||||||||
Business Combination, Consideration Transferred, Net of Price Adjustments | 13,900 | $ 13,908 | |||||||
Payments to Acquire Businesses, Gross | $ 9,000 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | shares | 32,374 | ||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 2,000 | $ 2,000 | |||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 4,000 | ||||||||
Business Combination, Contingent Consideration, Liability, Total | $ 3,100 | ||||||||
Cedar Holdings Group, Incorporated [Member] | Customer Relationships [Member] | |||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years | ||||||||
Cedar Holdings Group, Incorporated [Member] | Network Rights [Member] | |||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | ||||||||
Cedar Holdings Group, Incorporated [Member] | Measurement Input, Discount Rate [Member] | |||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.112 |
Note 3 - Acquisitions - Prelimi
Note 3 - Acquisitions - Preliminary Purchase Consideration (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 18, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 |
Goodwill | $ 109,818 | $ 116,304 | $ 90,054 | ||
Goodwill, Ending Balance | 109,818 | $ 116,304 | $ 90,054 | ||
Ascio Technologies, Inc. [Member] | |||||
Goodwill | $ 19,765 | ||||
Cash | 1,437 | ||||
Prepaid domain registry fees | 10,318 | ||||
Other assets | 2,218 | ||||
Total assets | 48,878 | ||||
Deferred Revenue | (12,510) | ||||
Deferred Tax Liabilities | (2,852) | ||||
Other liabilities | (3,630) | ||||
Total liabilities | (18,992) | ||||
Consideration Paid | 29,886 | ||||
Cash and Cash Equivalents | 1,437 | ||||
Total identifiable assets | 48,878 | ||||
Goodwill, Ending Balance | 19,765 | ||||
Ascio Technologies, Inc. [Member] | Brand [Member] | |||||
Finite-Lived Intangibles | 2,090 | ||||
Ascio Technologies, Inc. [Member] | Technology-Based Intangible Assets [Member] | |||||
Finite-Lived Intangibles | 2,440 | ||||
Ascio Technologies, Inc. [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangibles | $ 10,610 | ||||
Cedar Holdings Group, Incorporated [Member] | |||||
Goodwill | 6,486 | ||||
Cash | 66 | ||||
Total assets | 10,170 | ||||
Deferred Tax Liabilities | (2,373) | ||||
Consideration Paid | $ 14,100 | ||||
Cash Consideration, including working capital adjustment | 8,836 | ||||
Share-based payment | 2,000 | 2,000 | |||
Fair value of contingent payments | 3,072 | ||||
Total estimated purchase price | $ 13,900 | 13,908 | |||
Cash and Cash Equivalents | 66 | ||||
Accounts Receivables, net | 13 | ||||
Other current assets | 22 | ||||
Property and equipment | 4,661 | ||||
Right of use operating lease | 18 | ||||
Total identifiable assets | 10,170 | ||||
Accounts payable and accrued labilities | (362) | ||||
Operating lease liability | (13) | ||||
Total liabilities assumed | (2,748) | ||||
Total net assets (liabilities) assumed | 7,422 | ||||
Goodwill, Ending Balance | 6,486 | ||||
Cedar Holdings Group, Incorporated [Member] | Customer Relationships [Member] | |||||
Customer relationships | 4,640 | ||||
Cedar Holdings Group, Incorporated [Member] | Network Rights [Member] | |||||
Customer relationships | $ 750 |
Note 3 - Acquisitions - Pro For
Note 3 - Acquisitions - Pro Forma Information (Details) - Cedar Holdings Group, Incorporated [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues | $ 311,202 | $ 342,056 |
Net income | $ 5,775 | $ 15,181 |
Basic earnings per common share (in dollars per share) | $ 0.55 | $ 1.43 |
Diluted earnings per common share (in dollars per share) | $ 0.54 | $ 1.41 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Fully Depreciated Writedown | $ 1.6 | $ 0.1 |
Note 4 - Property and Equipme_4
Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment, gross | $ 154,341 | $ 107,319 |
Accumulated depreciation | 36,811 | 25,198 |
Property, plant and equipment, net | 117,530 | 82,121 |
Computer Equipment [Member] | ||
Property, plant and equipment, gross | 25,029 | 18,027 |
Computer Software [Member] | ||
Property, plant and equipment, gross | 1,760 | 2,336 |
Capitalized Internal Use Software [Member] | ||
Property, plant and equipment, gross | 2,835 | 1,270 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,314 | 1,394 |
Vehicles and Tools [Member] | ||
Property, plant and equipment, gross | 4,476 | 2,656 |
Fiber Network [Member] | ||
Property, plant and equipment, gross | 66,766 | 40,645 |
Customer Equipment and Installations [Member] | ||
Property, plant and equipment, gross | 13,332 | 8,586 |
Land [Member] | ||
Property, plant and equipment, gross | 1,634 | 1,511 |
Asset under Construction [Member] | ||
Property, plant and equipment, gross | 36,720 | 30,352 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | $ 475 | $ 542 |
Note 4 - Property and Equipme_5
Note 4 - Property and Equipment - Depreciation of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Depreciation of property and equipment | $ 12,632 | $ 8,961 | $ 5,722 | [1] |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 5 - Goodwill and Other I_3
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Goodwill, Ending Balance | $ 116,304 | $ 109,818 | $ 90,054 | ||
Goodwill, Impairment Loss | 0 | 0 | |||
Impairment of Intangible Assets, Finite-lived | 1,431 | 0 | 0 | [1] | |
Acquisition of Non-exclusive Land Easement | 100 | ||||
Customer Relationships [Member] | |||||
Impairment of Intangible Assets, Finite-lived | $ 1,431 | ||||
FreedomPop and Unreal Mobile [Member] | |||||
Asset Acquisition, Consideration Transferred | $ 3,500 | ||||
FreedomPop and Unreal Mobile [Member] | Customer Relationships [Member] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 3 years | ||||
Minimum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 2 years | ||||
Minimum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | ||||
Maximum [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | ||||
Maximum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years | ||||
Domain Services Operating Segment [Member] | |||||
Goodwill, Ending Balance | $ 107,700 | ||||
Goodwill Percentage Related to Operating Segments | 93.00% | ||||
Network Access Services [Member] | |||||
Goodwill, Ending Balance | $ 8,618 | $ 2,132 | $ 2,132 | ||
Goodwill Percentage Related to Operating Segments | 7.00% | ||||
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 5 - Goodwill and Other I_4
Note 5 - Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balances | $ 109,818 | $ 90,054 |
Acquisition | 6,486 | 19,764 |
Balances | 116,304 | 109,818 |
Network Access Services [Member] | ||
Balances | 2,132 | 2,132 |
Acquisition | 6,486 | 0 |
Balances | 8,618 | 2,132 |
Domain Services [Member] | ||
Balances | 107,686 | 87,922 |
Acquisition | 0 | 19,764 |
Balances | $ 107,686 | $ 107,686 |
Note 5 - Goodwill and Other I_5
Note 5 - Goodwill and Other Intangible Assets - Acquired Intangible Assets by Major Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Balances | $ 57,654 | $ 49,395 | ||
Acquisition | 91 | |||
Additions to/(disposals from) domain portfolio, net | (17) | (114) | $ (341) | [1] |
Amortization expense | (11,420) | (10,333) | (9,243) | [1] |
Impairment of definite life intangible asset | (1,431) | 0 | 0 | [1] |
Other | (223) | |||
Write-down of Ting Mobile customer relationships | (2,581) | |||
Acquisition of Network rights | 72 | |||
Balances | 47,444 | 57,654 | 49,395 | |
Ascio Technologies, Inc. [Member] | ||||
Acquisition | 15,140 | |||
FreedomPop and Unreal Mobile [Member] | ||||
Acquisition | 3,475 | |||
Cedar Holdings Group, Incorporated [Member] | ||||
Acquisition | 5,390 | |||
Brand [Member] | ||||
Balances | 9,091 | 9,004 | ||
Amortization expense | (2,070) | (2,003) | ||
Balances | 7,021 | 9,091 | 9,004 | |
Brand [Member] | Ascio Technologies, Inc. [Member] | ||||
Acquisition | 2,090 | |||
Customer Relationships [Member] | ||||
Balances | 34,269 | 27,290 | ||
Acquisition | 91 | |||
Amortization expense | (8,010) | (7,197) | ||
Impairment of definite life intangible asset | (1,431) | |||
Other | (223) | |||
Write-down of Ting Mobile customer relationships | (2,581) | |||
Balances | 26,664 | 34,269 | 27,290 | |
Customer Relationships [Member] | Ascio Technologies, Inc. [Member] | ||||
Acquisition | 10,610 | |||
Customer Relationships [Member] | FreedomPop and Unreal Mobile [Member] | ||||
Acquisition | 3,475 | |||
Customer Relationships [Member] | Cedar Holdings Group, Incorporated [Member] | ||||
Acquisition | 4,640 | |||
Technology-Based Intangible Assets [Member] | ||||
Balances | 1,516 | 163 | ||
Amortization expense | (1,242) | (1,087) | ||
Other | ||||
Balances | 274 | 1,516 | 163 | |
Technology-Based Intangible Assets [Member] | Ascio Technologies, Inc. [Member] | ||||
Acquisition | 2,440 | |||
Network Rights [Member] | ||||
Balances | 469 | 515 | ||
Amortization expense | (98) | (46) | ||
Other | ||||
Acquisition of Network rights | 72 | |||
Balances | 1,193 | 469 | 515 | |
Network Rights [Member] | Cedar Holdings Group, Incorporated [Member] | ||||
Acquisition | 750 | |||
Surname Domain Names [Member] | ||||
Balances | 11,164 | 11,176 | ||
Additions to/(disposals from) domain portfolio, net | (7) | (12) | ||
Balances | 11,157 | 11,164 | 11,176 | |
Direct Navigation Domain Names [Member] | ||||
Balances | 1,145 | 1,247 | ||
Additions to/(disposals from) domain portfolio, net | (10) | (102) | ||
Balances | $ 1,135 | $ 1,145 | $ 1,247 | |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 5 - Goodwill and Other I_6
Note 5 - Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
2021 | $ 9,515 | |
2022 | 9,345 | |
2023 | 8,669 | |
2024 | 4,455 | |
2025 | 2,587 | |
Thereafter | 581 | |
Total | $ 35,152 | $ 45,345 |
Note 6 - Fair Value Measureme_3
Note 6 - Fair Value Measurement - Summary of the Fair Values of the Company's Derivative Instrument Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative instrument asset, net | $ 3,860 | $ 731 |
Fair Value, Recurring [Member] | ||
Derivative instrument asset, net | 3,647 | 731 |
Total Assets, net | 3,647 | 731 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Derivative instrument asset, net | 0 | 0 |
Total Assets, net | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative instrument asset, net | 3,647 | 731 |
Total Assets, net | 3,647 | 731 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Derivative instrument asset, net | 0 | 0 |
Total Assets, net | $ 0 | $ 0 |
Note 7 - Derivative Instrumen_3
Note 7 - Derivative Instruments and Hedging Activities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 | |
Forward Contracts [Member] | |||
Derivative, Notional Amount | $ 31.8 | $ 30.5 | |
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Derivative, Notional Amount | $ 26.8 | $ 26.1 | |
Forward Contracts [Member] | Minimum [Member] | |||
Derivative, Term of Contract (Month) | 1 month | ||
Forward Contracts [Member] | Maximum [Member] | |||
Derivative, Term of Contract (Month) | 18 months | ||
Interest Rate Swap [Member] | |||
Derivative, Notional Amount | $ 70 |
Note 7 - Derivative Instrumen_4
Note 7 - Derivative Instruments and Hedging Activities - Foreign Currency Forward Contracts (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Foreign Exchange Forward 1 [Member] | |
Notional amount of U.S. dollars | $ 11,125 |
Weighted average exchange rate of U.S. dollars | 1.4283 |
Foreign currency forward contracts, asset | $ 1,327 |
Foreign Exchange Forward 2 [Member] | |
Notional amount of U.S. dollars | $ 9,879 |
Weighted average exchange rate of U.S. dollars | 1.4283 |
Foreign currency forward contracts, asset | $ 1,179 |
Foreign Exchange Forward 3 [Member] | |
Notional amount of U.S. dollars | $ 10,782 |
Weighted average exchange rate of U.S. dollars | 1.4362 |
Foreign currency forward contracts, asset | $ 1,353 |
Foreign Exchange Forward 4 [Member] | |
Notional amount of U.S. dollars | $ 31,786 |
Weighted average exchange rate of U.S. dollars | 1.4310 |
Foreign currency forward contracts, asset | $ 3,860 |
Note 7 - Derivative Instrumen_5
Note 7 - Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - Derivative Instruments [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Foreign currency forward contracts, asset | $ 3,647 | $ 731 |
Foreign currency forward contracts, liability | (213) | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Foreign currency forward contracts, asset | 3,254 | 626 |
Not Designated as Hedging Instrument [Member] | ||
Foreign currency forward contracts, asset | $ 606 | $ 105 |
Note 7 - Derivative Instrumen_6
Note 7 - Derivative Instruments and Hedging Activities - Movement in AOCI Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
AOCI balance, Gains and losses on cash flow hedges | $ 625 | $ (1,069) | $ 0 | |
AOCI balance, Tax impact | (152) | 259 | 0 | |
AOCI balance | 473 | (810) | 0 | |
Other comprehensive income (loss) before reclassifications, Gains and losses on cash flow hedges | 2,142 | 1,454 | (1,350) | |
Other comprehensive income (loss) before reclassifications, Tax impact | (489) | (353) | 328 | |
Other comprehensive income (loss) before reclassifications | 1,653 | 1,101 | (1,022) | [1] |
Amount reclassified from AOCI, Gains and losses on cash flow hedges | 271 | 240 | 281 | |
Amount reclassified from AOCI, Tax impact | (61) | (58) | (69) | |
Amount reclassified from AOCI | 210 | 182 | 212 | [1] |
Other comprehensive income (loss), Gains and losses on cash flow hedges | 2,413 | 1,694 | (1,069) | |
Other comprehensive income (loss), Tax impact | (550) | (411) | 259 | |
Other comprehensive income (loss) | 1,863 | 1,283 | (810) | |
AOCI balance, Gains and losses on cash flow hedges | 3,038 | 625 | (1,069) | |
AOCI balance, Tax impact | (702) | (152) | 259 | |
AOCI balance | $ 2,336 | $ 473 | $ (810) | |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 7 - Derivative Instrumen_7
Note 7 - Derivative Instruments and Hedging Activities - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Exchange Forward [Member] | |||
Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative | $ 2,026 | $ 1,283 | $ (810) |
Interest Rate Swap [Member] | |||
Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative | (163) | ||
Operating Expense [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Amount of Gain or Reclassified from AOCI into Income | (188) | (197) | (245) |
Cost of Sales [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Amount of Gain or Reclassified from AOCI into Income | (66) | (43) | (36) |
Interest Expense, Net [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Amount of Gain or Reclassified from AOCI into Income | $ (17) | $ 0 | $ 0 |
Note 7 - Derivative Instrumen_8
Note 7 - Derivative Instruments and Hedging Activities - Fair Value Adjustments of Forward Currency Forward Contracts Not Designated as Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Gain (loss) on settlement | $ 383 | $ 198 | $ (254) | [1] |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||||
Gain (loss) on settlement | (115) | (47) | ||
Gain (loss) on change in fair value | $ 313 | $ (207) | ||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Gain (loss) on settlement | (117) | |||
Gain (loss) on change in fair value | $ 500 | |||
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 8 - Loan Payable (Details
Note 8 - Loan Payable (Details Textual) $ in Millions | Jun. 14, 2019USD ($) | Jan. 20, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020 | Mar. 18, 2019USD ($) |
Royal Bank, Bank of Montreal, Bank of Nova Scotia, HSBC and CIBC [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 240 | ||||
Debt Issuance Costs, Gross | $ 0.4 | ||||
Debt Instrument, Term (Year) | 4 years | ||||
Maximum Total Funded Debt to EBITDA Ratio | 3.50 | ||||
Minimum Fixed Charge Coverage Ratio | 3 | ||||
Percentage of Forecasted Capital Expenditures, Threshold for Annual Capital Expenditures | 110.00% | ||||
Total Funded Debt to EBITDA Ratio | 2 | 2 | |||
Royal Bank, Bank of Montreal, Bank of Nova Scotia, HSBC and CIBC [Member] | General and Administrative Expense [Member] | |||||
Payments of Financing Costs, Total | $ 0.1 | ||||
Royal Bank, Bank of Montreal, Bank of Nova Scotia, HSBC and CIBC [Member] | Guaranteed Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 180 | ||||
Royal Bank, Bank of Montreal, Bank of Nova Scotia, HSBC and CIBC [Member] | Accordion Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60 | ||||
Fees to Lenders | 0.3 | ||||
Legal Fees | $ 0.2 | ||||
Bank of Montreal and Royal Bank of Canada [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140 | ||||
Debt Issuance Costs, Gross | $ 0.2 | ||||
Debt Instrument, Term (Year) | 4 years |
Note 8 - Loan Payable - Schedul
Note 8 - Loan Payable - Schedule of Standby Fees Based on Total Funded Debt to EBITDA Ratio (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Debt to EBITDA is Less Than 1 [Member] | |
Standby fees | 0.30% |
Debt to EBITDA is Greater Than or Equal to 1 and Less Than 2 [Member] | |
Standby fees | 0.37% |
Debt to EBITDA is Greater Than or Equal to 2 and Less Than 2.50 [Member] | |
Standby fees | 0.47% |
Debt to EBITDA is Greater Than or Equal to 2.50 [Member] | |
Standby fees | 0.57% |
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 | 1.50% |
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 | 1.85% |
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 2.50 [Member] | |
Basis Spread on Variable Rate | 2.35% |
Bank of Montreal and Royal Bank of Canada [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt to EBITDA is Greater Than or Equal to 2.50 [Member] | |
Basis Spread on Variable Rate | 2.85% |
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 | 0.25% |
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 | 0.60% |
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 2.50 [Member] | |
Basis Spread on Variable Rate | 1.10% |
Bank of Montreal and Royal Bank of Canada [Member] | Base Rate [Member] | Debt to EBITDA is Greater Than or Equal to 2.50 [Member] | |
Basis Spread on Variable Rate | 1.60% |
Note 8 - Loan Payable - Sched_2
Note 8 - Loan Payable - Schedule of Loans Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans payable | $ 121,733 | $ 113,503 |
Less: unamortized debt discount and issuance costs | (667) | (897) |
Less: loan payable, current portion | 0 | 0 |
Loan payable, long-term portion | 121,733 | 113,503 |
Revolver Facility [Member] | ||
Loans payable | $ 122,400 | $ 114,400 |
Note 8 - Loan Payable - Princip
Note 8 - Loan Payable - Principal Repayments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 0 |
2022 | 0 |
2023 | 122,400 |
Long-term Debt | $ 122,400 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
Income Tax Expense (Benefit), Continuing Operations, Valuation Allowance on Foreign Tax Credits and Net Operating Losses | $ 2,900 | $ 5,300 | $ 2,800 |
Net Operating Loss | 300 | $ 200 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 0 | $ 0 |
Note 9 - Income Taxes - Provisi
Note 9 - Income Taxes - Provision for Income Taxes Differs from the Amount Computed by Applying the Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income for the year before provision for income taxes | $ 10,760 | $ 24,571 | $ 26,155 | |
Computed federal tax expense | 2,259 | 5,160 | 5,492 | |
State income taxes | 303 | 526 | 846 | |
Change in Valuation allowance | 1,867 | 5,277 | 2,811 | |
Expired business tax credits | 1,044 | 0 | 0 | |
Non-creditable Foreign Tax | 818 | 515 | 0 | |
Excess tax benefits on share-based compensation expense | (407) | (634) | (697) | |
Permanent differences | (161) | (103) | 159 | |
Effect of deferred tax in foreign branch | (774) | (840) | 0 | |
Others | 36 | (728) | 409 | |
Provision for income taxes | $ 4,985 | $ 9,173 | $ 9,020 | [1] |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 9 - Income Taxes - Tax Eff
Note 9 - Income Taxes - Tax Effects of Temporary Differences That Give Rise to Significant Portions of the Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred revenue | $ 5,739 | $ 6,301 |
Foreign tax credits and general business credits | 11,203 | 9,004 |
Net operating losses | 1,452 | 1,341 |
Accruals, including foreign exchange and other | 792 | 1,490 |
Sub-total Deferred tax assets | 19,186 | 18,136 |
Valuation allowance | (11,232) | (9,365) |
Total deferred tax assets | 7,954 | 8,771 |
Prepaid registry fees and expenses | (16,909) | (16,237) |
Amortization | (7,083) | (6,925) |
Limited life intangible assets | (4,327) | (5,958) |
Indefinite life intangible assets | (2,847) | (3,110) |
Foreign branch deferred tax liability | (1,256) | (2,012) |
Total deferred tax liability | (32,422) | (34,242) |
Net deferred tax liability | $ (24,468) | $ (25,471) |
Note 10 - Revenue (Details Text
Note 10 - Revenue (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | ||
Contract with Customer, Liability, Revenue Recognized | $ (231,105) | ||||
Cost of Revenue, Total | 225,717 | $ 236,368 | $ 249,243 | [1],[2] | |
Contract with Customer, Liability, Total | $ 152,245 | $ 149,303 | $ 149,300 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Number of Customers | 1 | 0 | 0 | ||
Concentration Risk, Percentage | 59.00% | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||||
Number of Customers | 0 | 0 | 0 | ||
Namecheap, Inc. [Member] | |||||
Domain Name Transfer to Counter Party | 2,890,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 16,900 | ||||
Cost of Revenue, Total | $ 16,800 | ||||
Minimum [Member] | |||||
Domain Services, Purchased Term (Year) | 1 year | ||||
Maximum [Member] | |||||
Domain Services, Purchased Term (Year) | 10 years | ||||
[1] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized Cost of revenue for the year ended December 31, 2018 includes $16.8 million, related to previously deferred prepaid registry fees, a portion of which would have otherwise been recognized after December 31, 2018. | ||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 10 - Revenue - Disaggregat
Note 10 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Net Revenues | $ 70,784 | $ 74,311 | $ 82,122 | $ 83,985 | $ 85,946 | $ 88,129 | $ 84,117 | $ 78,953 | $ 311,202 | $ 337,145 | $ 346,013 | [2] |
Network Access Services [Member] | ||||||||||||
Net Revenues | 68,948 | 95,663 | 97,324 | |||||||||
Network Access Services [Member] | Fiber Internet Services [Member] | ||||||||||||
Net Revenues | 18,428 | 11,006 | 7,984 | |||||||||
Network Access Services [Member] | Mobile Services [Member] | ||||||||||||
Net Revenues | 50,520 | 84,657 | 89,340 | |||||||||
Network Access Services [Member] | Mobile Services [Member] | Retail Mobile Services [Member] | ||||||||||||
Net Revenues | 46,540 | 84,657 | 89,340 | |||||||||
Network Access Services [Member] | Mobile Services [Member] | Mobile Platform Services [Member] | ||||||||||||
Net Revenues | 564 | 0 | 0 | |||||||||
Network Access Services [Member] | Mobile Services [Member] | Other Services [Member] | ||||||||||||
Net Revenues | 3,416 | 0 | 0 | |||||||||
Domain Name Services [Member] | ||||||||||||
Net Revenues | 242,254 | 241,482 | 248,689 | |||||||||
Domain Name Services [Member] | Wholesale [Member] | ||||||||||||
Net Revenues | 206,681 | 201,879 | 207,190 | |||||||||
Domain Name Services [Member] | Wholesale [Member] | Domain Services [Member] | ||||||||||||
Net Revenues | 186,893 | 182,957 | 189,434 | |||||||||
Domain Name Services [Member] | Wholesale [Member] | Value Added Services [Member] | ||||||||||||
Net Revenues | 19,788 | 18,922 | 17,756 | |||||||||
Domain Name Services [Member] | Retail Services [Member] | ||||||||||||
Net Revenues | 34,323 | 34,786 | 34,524 | |||||||||
Domain Name Services [Member] | Portfolio [Member] | ||||||||||||
Net Revenues | $ 1,250 | $ 4,817 | $ 6,975 | |||||||||
[1] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized revenue for the year ended December 31, 2018 includes $16.9 million, related to previously deferred revenue, a portion of which would have otherwise been recognized after December 31, 2018. | |||||||||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 10 - Revenue - Cost of Rev
Note 10 - Revenue - Cost of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Network, other costs | $ 10,194 | $ 9,190 | $ 9,846 | [1] |
Impairment of Property Plant and Equipment | 1,638 | 0 | 0 | [1] |
Cost of Revenue, Total | 225,717 | 236,368 | 249,243 | [1],[2] |
Network Expenses [Member] | ||||
Network, other costs | 10,194 | 9,190 | 9,846 | [2] |
Network, depreciation and amortization costs | 13,484 | 9,599 | 7,294 | [2] |
Impairment of Property Plant and Equipment | 1,638 | 0 | 0 | [2] |
Cost of Revenue, Total | 25,316 | 18,789 | 17,140 | [2] |
Network Access Services [Member] | ||||
Cost of revenue | 32,950 | 48,343 | 50,055 | [2] |
Network, other costs | 2,430 | 2,007 | 2,029 | |
Impairment of Property Plant and Equipment | 1,638 | |||
Cost of Revenue, Total | 47,660 | 57,273 | 56,193 | |
Network Access Services [Member] | Retail Mobile Services [Member] | ||||
Cost of revenue | 22,942 | 44,415 | 46,061 | |
Network Access Services [Member] | Mobile Platform Services [Member] | ||||
Cost of revenue | 56 | 0 | 0 | |
Network Access Services [Member] | Other Services [Member] | ||||
Cost of revenue | 2,970 | 0 | 0 | |
Network Access Services [Member] | Fiber Internet Services [Member] | ||||
Cost of revenue | 6,982 | 3,928 | 3,994 | [2] |
Network Access Services [Member] | Mobile Services [Member] | ||||
Cost of revenue | 25,968 | 44,415 | 46,061 | [2] |
Network Access Services [Member] | Mobile Services [Member] | Retail Mobile Services [Member] | ||||
Cost of revenue | 22,942 | 44,415 | 46,061 | [2] |
Network Access Services [Member] | Mobile Services [Member] | Mobile Platform Services [Member] | ||||
Cost of revenue | 56 | 0 | 0 | [2] |
Network Access Services [Member] | Mobile Services [Member] | Other Services [Member] | ||||
Cost of revenue | 2,970 | 0 | 0 | [2] |
Domain Name Services [Member] | ||||
Cost of revenue | 167,451 | 169,236 | 182,048 | [2] |
Network, other costs | 7,764 | 7,183 | 7,817 | |
Impairment of Property Plant and Equipment | 0 | |||
Cost of Revenue, Total | 178,057 | 179,095 | 193,050 | |
Domain Name Services [Member] | Wholesale [Member] | ||||
Cost of revenue | 149,949 | 151,516 | 163,370 | [2] |
Domain Name Services [Member] | Wholesale [Member] | Domain Services [Member] | ||||
Cost of revenue | 146,788 | 148,530 | 160,216 | [2] |
Domain Name Services [Member] | Wholesale [Member] | Value Added Services [Member] | ||||
Cost of revenue | 3,161 | 2,986 | 3,154 | [2] |
Domain Name Services [Member] | Retail Services [Member] | ||||
Cost of revenue | 17,023 | 17,093 | 17,725 | [2] |
Domain Name Services [Member] | Portfolio [Member] | ||||
Cost of revenue | $ 479 | $ 627 | $ 953 | [2] |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | |||
[2] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized Cost of revenue for the year ended December 31, 2018 includes $16.8 million, related to previously deferred prepaid registry fees, a portion of which would have otherwise been recognized after December 31, 2018. |
Note 10 - Revenue - Contract Ba
Note 10 - Revenue - Contract Balances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Balance, beginning of period | $ 149,303 |
Deferred revenue | 234,047 |
Contract with Customer, Liability, Revenue Recognized | (231,105) |
Balance, end of period | $ 152,245 |
Note 10 - Revenue - Remaining P
Note 10 - Revenue - Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 149,180 |
Note 10 - Revenue - Remaining_2
Note 10 - Revenue - Remaining Performance Obligations 2 (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 149,180 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 124,271 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 11,493 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 5,212 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 3,231 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 1,994 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 2,979 |
Note 11 - Costs to Obtain and_3
Note 11 - Costs to Obtain and Fulfill a Contract (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2018 | |
Capitalized Contract Cost, Net, Total | $ 1,400 | ||
Deferred Costs of Acquisition [Member] | |||
Capitalized Contract Cost, Net, Total | $ 362 | $ 1,400 | |
Increase (Decrease) in Capitalized Costs | 430 | ||
Capitalized Contract Cost, Amortization | 536 | ||
Capitalized Contract Cost, Impairment Loss | $ 932 | ||
Deferred Costs of Acquisition [Member] | Minimum [Member] | |||
Capitalized Contract Cost, Amortization Period (Year) | 2 years | ||
Deferred Costs of Acquisition [Member] | Maximum [Member] | |||
Capitalized Contract Cost, Amortization Period (Year) | 10 years | ||
Domain Registration Costs [Member] | |||
Capitalized Contract Cost, Net, Total | $ 111,066 | $ 109,167 | |
Increase (Decrease) in Capitalized Costs | 170,200 | ||
Capitalized Contract Cost, Amortization | 168,300 | ||
Capitalized Contract Cost, Impairment Loss | $ 0 | ||
Domain Registration Costs [Member] | Minimum [Member] | |||
Capitalized Contract Cost, Amortization Period (Year) | 1 year | ||
Domain Registration Costs [Member] | Maximum [Member] | |||
Capitalized Contract Cost, Amortization Period (Year) | 10 years |
Note 11 - Costs to Obtain and_4
Note 11 - Costs to Obtain and Fulfill a Contract - Capitalized Contract Costs Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Deferred Costs of Acquisition [Member] | |
Balance | $ 1,400 |
Capitalization of costs | 430 |
Amortization of costs | (536) |
Write-down of Ting Mobile contract costs | (932) |
Balance | 362 |
Domain Registration Costs [Member] | |
Balance | 109,167 |
Capitalization of costs | 170,200 |
Amortization of costs | (168,300) |
Write-down of Ting Mobile contract costs | 0 |
Deferral of costs | 170,167 |
Recognized costs | (168,268) |
Balance | $ 111,066 |
Note 12 - Leases (Details Textu
Note 12 - Leases (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Lessee, Operating Lease, Option to Terminate Term (Year) | 1 year |
Lessee, Operating Lease, Option to Extend, Amount | $ 0.3 |
Lessee, Operating Lease, Lease Not yet Commenced, Future Minimum Payments Due | $ 0.5 |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 20 years |
Note 12 - Leases - Components o
Note 12 - Leases - Components of Lease Expense and Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Lease Cost (leases with a total term greater than 12 months) | $ 2,195 | $ 3,057 |
Short-term Lease Cost (leases with a total term of 12 months or less) | 501 | 1,040 |
Variable Lease Cost | 589 | 657 |
Total Lease Cost | 3,286 | 4,754 |
Operating Lease - Operating Cash Flows (Fixed Payments) | 2,332 | 3,130 |
Operating Lease - Operating Cash Flows (Liability Reduction) | 1,952 | 2,665 |
New ROU Assets - Operating Leases | $ 2,798 | $ 5,392 |
Weighted Average Discount Rate | 3.60% | 5.20% |
Weighted Average Remaining Lease Term (Year) | 8 years 4 months 6 days | 8 years 7 months 13 days |
Note 12 - Leases - Future Minim
Note 12 - Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 2,084 |
2022 | 2,057 |
2023 | 1,979 |
2024 | 1,439 |
2025 | 900 |
Thereafter | 4,071 |
Total future lease payments | 12,530 |
Less interest | 1,590 |
Operating Lease, Liability, Total | $ 10,940 |
Note 13 - Common Shares (Detail
Note 13 - Common Shares (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 09, 2021 | Feb. 13, 2020 | Feb. 12, 2020 | Feb. 13, 2019 | Feb. 14, 2018 | |
Common Stock, Shares Authorized (in shares) | 250,000,000 | 250,000,000 | ||||||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 10,612,414 | 10,585,159 | ||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 70,238 | 101,816 | 0 | |||||
Stock Repurchased and Retired During Period, Value | $ 3,281 | $ 4,986 | $ 0 | |||||
Stock Buyback Program 2021 [Member] | Subsequent Event [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000 | |||||||
Stock Buyback Program 2020 [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000 | $ 40,000 | ||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 70,238 | |||||||
Stock Repurchased and Retired During Period, Value | $ 3,300 | |||||||
Stock Buyback Program 2019 [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000 | |||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 0 | 101,816 | ||||||
Stock Repurchased and Retired During Period, Value | $ 5,000 | |||||||
Stock Buyback Program 2018 [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 40,000 | |||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 0 |
Note 13 - Common Shares - Share
Note 13 - Common Shares - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Repurchased and Retired During Period, Shares (in shares) | 70,238 | 101,816 | 0 |
Stock Repurchased and Retired During Period, Value | $ 3,281 | $ 4,986 | $ 0 |
Average price per share (in dollars per share) | $ 46.70 | $ 48.97 | $ 0 |
Number of shares (in shares) | 48,013 | 21,332 | 19,777 |
Aggregate market value of shares (in thousands) | $ 2,957 | $ 1,510 | $ 1,138 |
Average price per share (in dollars per share) | $ 61.58 | $ 70.77 | $ 57.56 |
Note 14 - Stock Option Plans (D
Note 14 - Stock Option Plans (Details Textual) - USD ($) $ in Thousands | Oct. 08, 2010 | Nov. 30, 2020 | Sep. 30, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 1996 | Nov. 22, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 3,700 | $ 3,900 | $ 2,900 | ||||||
Proceeds from Stock Options Exercised | 985 | 395 | 112 | [1] | |||||
Share-based Payment Arrangement, Expense | 3,718 | $ 2,876 | $ 2,574 | ||||||
Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 7,300 | ||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 4 months 24 days | ||||||||
The 1996 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,787,500 | ||||||||
The 1996 Plan [Member] | Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||||||
Equity Compensation Plan 2006 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,725,000 | 4,000,000 | 2,475,000 | 1,250,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 475,000 | 1,530,000 | 750,000 | ||||||
Equity Compensation Plan 2006 [Member] | Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 7 years | ||||||||
Equity Compensation Plan 2006 [Member] | Automatic Formula Grants of Nonqualified Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 5 years | ||||||||
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 14 - Stock Option Plans -
Note 14 - Stock Option Plans - Fair Value of Stock Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Volatility | 39.00% | 36.50% | 37.90% |
Risk-free interest rate | 1.80% | 2.00% | 2.70% |
Expected life (in years) (Year) | 4 years 6 months 14 days | 4 years 6 months | 4 years 5 months 23 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant (in dollars per share) | $ 19.98 | $ 20.20 | $ 22.22 |
Note 14 - Stock Option Plans _2
Note 14 - Stock Option Plans - Stock Option Transactions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Outstanding, Number of shares (in shares) | 754,497 | 702,337 | 653,571 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 49.94 | $ 43.80 | $ 36.69 |
Granted, Number of shares (in shares) | 239,325 | 180,800 | 163,366 |
Granted, Weighted average exercise price per share (in dollars per share) | $ 61.21 | $ 60.56 | $ 62.80 |
Exercised, Number of shares (in shares) | (113,132) | (80,319) | (63,886) |
Exercised, Weighted average exercise price per share (in dollars per share) | $ 30.53 | $ 16.90 | $ 12.86 |
Forfeited, Number of shares (in shares) | (26,468) | (31,986) | (50,714) |
Forfeited, Weighted average exercise price per share (in dollars per share) | $ 60.29 | $ 59.35 | $ 52.33 |
Expired, Number of shares (in shares) | (9,202) | (16,335) | 0 |
Expired, Weighted average exercise price per share (in dollars per share) | $ 58.96 | $ 47.51 | $ 0 |
Outstanding, Number of shares (in shares) | 845,020 | 754,497 | 702,337 |
Outstanding, Weighted average exercise price per share (in dollars per share) | $ 55.31 | $ 49.94 | $ 43.80 |
Options exercisable, Number of shares (in shares) | 401,345 | 356,066 | 326,937 |
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ 49.21 | $ 40.64 | $ 28.91 |
Note 14 - Stock Option Plans _3
Note 14 - Stock Option Plans - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number outstanding (in shares) | shares | 845,020 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 55.31 |
Weighted average remaining contractual life, options outstanding (Year) | 4 years 4 months 24 days |
Aggregate intrinsic value, options outstanding | $ | $ 15,699 |
Number exercisable (in shares) | shares | 401,345 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 49.21 |
Weighted average remaining contractual life, options exercisable (Year) | 3 years 2 months 12 days |
Aggregate intrinsic value, options exercisable | $ | $ 9,906 |
Exercise Price Range 01 [Member] | |
Exercise price - lower (in dollars per share) | $ 15.93 |
Exercise price - higher (in dollars per share) | $ 19.95 |
Number outstanding (in shares) | shares | 48,564 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 17.77 |
Weighted average remaining contractual life, options outstanding (Year) | 1 year |
Aggregate intrinsic value, options outstanding | $ | $ 2,726 |
Number exercisable (in shares) | shares | 48,564 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 17.77 |
Weighted average remaining contractual life, options exercisable (Year) | 1 year |
Aggregate intrinsic value, options exercisable | $ | $ 2,726 |
Exercise Price Range 02 [Member] | |
Exercise price - lower (in dollars per share) | $ 21.10 |
Exercise price - higher (in dollars per share) | $ 27.53 |
Number outstanding (in shares) | shares | 36,250 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 23.76 |
Weighted average remaining contractual life, options outstanding (Year) | 1 year 6 months |
Aggregate intrinsic value, options outstanding | $ | $ 1,817 |
Number exercisable (in shares) | shares | 36,250 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 23.76 |
Weighted average remaining contractual life, options exercisable (Year) | 1 year 6 months |
Aggregate intrinsic value, options exercisable | $ | $ 1,817 |
Exercise Price Range 03 [Member] | |
Exercise price - lower (in dollars per share) | $ 35.25 |
Exercise price - higher (in dollars per share) | $ 37.35 |
Number outstanding (in shares) | shares | 5,625 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 36.88 |
Weighted average remaining contractual life, options outstanding (Year) | 1 year 6 months |
Aggregate intrinsic value, options outstanding | $ | $ 208 |
Number exercisable (in shares) | shares | 4,375 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 37.35 |
Weighted average remaining contractual life, options exercisable (Year) | 1 year |
Aggregate intrinsic value, options exercisable | $ | $ 160 |
Exercise Price Range 04 [Member] | |
Exercise price - lower (in dollars per share) | $ 46.90 |
Exercise price - higher (in dollars per share) | $ 48 |
Number outstanding (in shares) | shares | 14,000 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 47.33 |
Weighted average remaining contractual life, options outstanding (Year) | 5 years 2 months 12 days |
Aggregate intrinsic value, options outstanding | $ | $ 372 |
Number exercisable (in shares) | shares | 4,750 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 47.21 |
Weighted average remaining contractual life, options exercisable (Year) | 3 years 9 months 18 days |
Aggregate intrinsic value, options exercisable | $ | $ 126 |
Exercise Price Range 05 [Member] | |
Exercise price - lower (in dollars per share) | $ 51.82 |
Exercise price - higher (in dollars per share) | $ 59.98 |
Number outstanding (in shares) | shares | 309,659 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 55.51 |
Weighted average remaining contractual life, options outstanding (Year) | 3 years 6 months |
Aggregate intrinsic value, options outstanding | $ | $ 5,690 |
Number exercisable (in shares) | shares | 233,378 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 55.49 |
Weighted average remaining contractual life, options exercisable (Year) | 3 years 4 months 24 days |
Aggregate intrinsic value, options exercisable | $ | $ 4,295 |
Exercise Price Range 06 [Member] | |
Exercise price - lower (in dollars per share) | $ 60.01 |
Exercise price - higher (in dollars per share) | $ 68.41 |
Number outstanding (in shares) | shares | 410,922 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 62.07 |
Weighted average remaining contractual life, options outstanding (Year) | 5 years 7 months 6 days |
Aggregate intrinsic value, options outstanding | $ | $ 4,858 |
Number exercisable (in shares) | shares | 74,028 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 63.33 |
Weighted average remaining contractual life, options exercisable (Year) | 4 years 9 months 18 days |
Aggregate intrinsic value, options exercisable | $ | $ 782 |
Exercise Price Range 07 [Member] | |
Exercise price - lower (in dollars per share) | $ 72.50 |
Exercise price - higher (in dollars per share) | $ 72.50 |
Number outstanding (in shares) | shares | 20,000 |
Weighted average exercise price per share, options outstanding (in dollars per share) | $ 72.50 |
Weighted average remaining contractual life, options outstanding (Year) | 6 years 10 months 24 days |
Aggregate intrinsic value, options outstanding | $ | $ 28 |
Number exercisable (in shares) | shares | 0 |
Weighted average exercise price per share, options exercisable (in dollars per share) | $ 0 |
Aggregate intrinsic value, options exercisable | $ | $ 0 |
Note 14 - Stock Option Plans _4
Note 14 - Stock Option Plans - Stock-based Compensation Allocation to Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allocated share based compensation expense | $ 3,718 | $ 2,876 | $ 2,574 |
Network Expenses [Member] | |||
Allocated share based compensation expense | 472 | 307 | 223 |
Sales and Marketing Expense [Member] | |||
Allocated share based compensation expense | 1,678 | 1,251 | 1,025 |
Technical Operations and Development [Member] | |||
Allocated share based compensation expense | 756 | 596 | 636 |
General and Administrative Expense [Member] | |||
Allocated share based compensation expense | $ 812 | $ 722 | $ 690 |
Note 15 - Foreign Exchange (Det
Note 15 - Foreign Exchange (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
General and Administrative Expense [Member] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (1) | $ 0.4 | $ (0.9) |
Note 16 - Other Income (Expen_3
Note 16 - Other Income (Expenses) (Details Textual) - USD ($) $ in Thousands | Aug. 01, 2020 | Nov. 30, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Write Down of Intangible Assets and Capitalized Contract Costs | $ 3,513 | $ 0 | $ 0 | [1] | ||
Joint Marketing Agreement [Member] | ||||||
Other Nonrecurring Gain | $ 1,500 | 500 | ||||
Other Non-recurring Gain, Term of Recognition (Year) | 3 years | |||||
Purchase Agreement With DISH Wireless LLC [Member] | ||||||
Purchase Agreement, Duration of Monthly Fees (Year) | 10 years | |||||
Purchase Agreement, Income | $ 11,125 | $ 0 | $ 0 | |||
Write Down of Intangible Assets and Capitalized Contract Costs | $ 3,500 | |||||
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 16 - Other Income (Expen_4
Note 16 - Other Income (Expenses) - Other Income (Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Write-down of Ting Mobile intangible assets | $ (2,581) | |||
Gain on sale of Ting customer assets | 7,612 | $ 0 | $ 0 | [1] |
Purchase Agreement With DISH Wireless LLC [Member] | ||||
Write-down of Ting Mobile intangible assets | (2,581) | 0 | 0 | |
Write-down of Ting Mobile contract costs | (932) | 0 | 0 | |
Income earned on sale of Transferred Assets | 11,125 | 0 | 0 | |
Gain on sale of Ting customer assets | $ 7,612 | $ 0 | $ 0 | |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 17 - Earnings Per Common_3
Note 17 - Earnings Per Common Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 83,177 | 547,372 | 451,739 |
Note 17 - Earnings Per Common_4
Note 17 - Earnings Per Common Share - Earnings Per Common Share - Summary of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net income for the period | $ 2,068 | $ 716 | $ 157 | $ 2,834 | $ 5,778 | $ 4,205 | $ 2,616 | $ 2,799 | $ 5,775 | $ 15,398 | $ 17,135 | [1],[2] |
Shares used in computing basic earnings per common share (note 17) (in shares) | 10,590,684 | 10,623,799 | 10,604,722 | [1] | ||||||||
Effect of outstanding stock options (in shares) | 101,597 | 149,013 | 189,448 | |||||||||
Shares used in computing diluted earnings per common share (note 17) (in shares) | 10,692,281 | 10,772,812 | 10,794,170 | [1] | ||||||||
Basic earnings per common share (note 17) (in dollars per share) | $ 0.19 | $ 0.07 | $ 0.01 | $ 0.27 | $ 0.55 | $ 0.40 | $ 0.25 | $ 0.26 | $ 0.55 | $ 1.45 | $ 1.62 | [1] |
Diluted earnings per common share (note 17) (in dollars per share) | $ 0.19 | $ 0.07 | $ 0.01 | $ 0.26 | $ 0.54 | $ 0.39 | $ 0.24 | $ 0.26 | $ 0.54 | $ 1.43 | $ 1.59 | [1] |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | |||||||||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |
Note 18 - Commitments and Con_3
Note 18 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2016 | Feb. 09, 2015 | |
Contractual Obligation, Term (Year) | 10 years | ||
Long-term Debt, Total | $ 122,400,000 | ||
City of Westminster, Maryland [Member] | Loan to Finance WFN Construction [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 21,000,000 | ||
Debt Instrument, Term of Interest Only Payments (Year) | 5 years | ||
Debt Instrument, Term (Year) | 30 years | ||
Long-term Debt, Total | $ 17,500,000 | ||
Guarantee Obligations [Member] | Lease and Network Operations Agreement [Member] | Ting Fiber Inc. [Member] | |||
Loss Contingency, Debt Service Guarantee, Revenue Shortfall Difference, Lower Threshold | $ 50,000 | ||
Loss Contingency, Debt Service Guarantee, Revenue Shortfall Difference, Upper Threshold | $ 150,000 |
Note 18 - Commitments and Con_4
Note 18 - Commitments and Contingencies - Future Minimum Payments Under Lease and Purchase Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
Contractual lease obligations, 2021 | $ 2,084 | |
Debt obligations, 2021 | 0 | |
Purchase obligations, 2021 | 10,262 | [1] |
Total obligations, 2021 | 12,346 | |
Contractual lease obligations, 2022 | 2,057 | |
Debt obligations, 2022 | 0 | |
Purchase obligations, 2022 | 9,742 | [1] |
Total obligations, 2022 | 11,799 | |
Contractual lease obligations, 2023 | 1,979 | |
Debt obligations, 2023 | 122,400 | |
Purchase obligations, 2023 | 13,967 | [1] |
Total obligations, 2023 | 138,346 | |
Contractual lease obligations, 2024 | 1,439 | |
Debt obligations, 2024 | 0 | |
Purchase obligations, 2024 | 19,078 | [1] |
Total obligations, 2024 | 20,517 | |
Contractual lease obligations, 2025 | 900 | |
Debt obligations, 2025 | 0 | |
Purchase obligations, 2025 | 5,283 | [1] |
Total obligations, 2025 | 6,183 | |
Contractual lease obligations, thereafter | 4,071 | |
Debt obligations, thereafter | 0 | |
Purchase obligations, thereafter | 93 | [1] |
Total obligations, thereafter | 4,164 | |
Total future lease payments | 12,530 | |
Long-term Debt | 122,400 | |
Purchase obligations, total | 58,425 | [1] |
Total obligations | $ 193,355 | |
[1] | Purchase obligations include all other legally binding service contracts for mobile telephone services and other operational agreements to be delivered during Fiscal 2021 and subsequent years. |
Note 19 - Segment Reporting (De
Note 19 - Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2020 | |
Number of Operating Segments | 2 |
Note 19 - Segment Reporting - I
Note 19 - Segment Reporting - Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net Revenues | $ 70,784 | $ 74,311 | $ 82,122 | $ 83,985 | $ 85,946 | $ 88,129 | $ 84,117 | $ 78,953 | $ 311,202 | $ 337,145 | $ 346,013 | [1],[2] |
Cost of revenues | 200,401 | 217,579 | 232,103 | [2] | ||||||||
Network expenses | 10,194 | 9,190 | 9,846 | [2] | ||||||||
Depreciation of property and equipment | 12,144 | 8,475 | 5,298 | [2] | ||||||||
Amortization of intangible assets | 1,340 | 1,124 | 1,996 | [2] | ||||||||
Impairment of Property Plant and Equipment | 1,638 | 0 | 0 | [2] | ||||||||
Total cost of revenues | 225,717 | 236,368 | 249,243 | [2],[3] | ||||||||
Gross Profit | $ 17,428 | $ 19,941 | $ 22,966 | $ 25,150 | $ 26,045 | $ 27,574 | $ 24,507 | $ 22,651 | 85,485 | 100,777 | 96,770 | [2] |
Sales and marketing | 34,274 | 34,270 | 33,063 | [2] | ||||||||
Technical operations and development | 12,427 | 9,717 | 8,748 | [2] | ||||||||
General and administrative | 20,268 | 17,880 | 17,710 | [2] | ||||||||
Depreciation of property and equipment | 488 | 486 | 424 | [2] | ||||||||
Loss on disposition of property and equipment | 17 | (73) | 0 | [2] | ||||||||
Amortization of intangible assets | 10,080 | 9,209 | 7,247 | [2] | ||||||||
Impairment of definite life intangible assets | 1,431 | 0 | 0 | [2] | ||||||||
Loss (gain) on currency forward contracts | (383) | (198) | 254 | [2] | ||||||||
Income from operations | 6,917 | 29,340 | 29,324 | [2] | ||||||||
Other income (expenses), net | 3,843 | (4,769) | (3,169) | [2] | ||||||||
Income before provision for income taxes | 10,760 | 24,571 | 26,155 | [2] | ||||||||
Network Access Services [Member] | ||||||||||||
Net Revenues | 68,948 | 95,663 | 97,324 | [1] | ||||||||
Cost of revenues | 32,950 | 48,343 | 50,055 | |||||||||
Network expenses | 2,430 | 2,007 | 2,029 | |||||||||
Depreciation of property and equipment | 10,544 | 6,877 | 4,063 | |||||||||
Amortization of intangible assets | 98 | 46 | 46 | |||||||||
Impairment of Property Plant and Equipment | 1,638 | |||||||||||
Total cost of revenues | 47,660 | 57,273 | 56,193 | |||||||||
Gross Profit | 21,288 | 38,390 | 41,131 | |||||||||
Domain Name Services [Member] | ||||||||||||
Net Revenues | 242,254 | 241,482 | 248,689 | [1] | ||||||||
Cost of revenues | 167,451 | 169,236 | 182,048 | |||||||||
Network expenses | 7,764 | 7,183 | 7,817 | |||||||||
Depreciation of property and equipment | 1,600 | 1,598 | 1,235 | |||||||||
Amortization of intangible assets | 1,242 | 1,078 | 1,950 | |||||||||
Impairment of Property Plant and Equipment | 0 | |||||||||||
Total cost of revenues | 178,057 | 179,095 | 193,050 | |||||||||
Gross Profit | $ 64,197 | $ 62,387 | $ 55,639 | |||||||||
[1] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized revenue for the year ended December 31, 2018 includes $16.9 million, related to previously deferred revenue, a portion of which would have otherwise been recognized after December 31, 2018. | |||||||||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | |||||||||||
[3] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized Cost of revenue for the year ended December 31, 2018 includes $16.8 million, related to previously deferred prepaid registry fees, a portion of which would have otherwise been recognized after December 31, 2018. |
Note 19 - Segment Reporting - S
Note 19 - Segment Reporting - Summary of Cost of Revenues From Each Significant Revenue Stream (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Network, other costs | $ 10,194 | $ 9,190 | $ 9,846 | [1] |
Total cost of revenues | 225,717 | 236,368 | 249,243 | [1],[2] |
Network Expenses [Member] | ||||
Network, other costs | 9,846 | |||
Network, depreciation and amortization costs | 13,484 | 9,599 | 7,294 | |
Network, impairment | 1,638 | 0 | 0 | |
Total Network Expenses | 25,316 | 18,789 | 17,140 | |
Network Access Services [Member] | ||||
Cost of revenue | 32,950 | 48,343 | 50,055 | [2] |
Network, other costs | 2,430 | 2,007 | 2,029 | |
Total cost of revenues | 47,660 | 57,273 | 56,193 | |
Network Access Services [Member] | Network Expenses [Member] | ||||
Network, other costs | 10,194 | |||
Network Access Services [Member] | Retail Mobile Services [Member] | ||||
Cost of revenue | 22,942 | 44,415 | 46,061 | |
Network Access Services [Member] | Mobile Platform Services [Member] | ||||
Cost of revenue | 56 | 0 | 0 | |
Network Access Services [Member] | Other Services [Member] | ||||
Cost of revenue | 2,970 | 0 | 0 | |
Network Access Services [Member] | Mobile Services [Member] | ||||
Cost of revenue | 25,968 | 44,415 | 46,061 | |
Network Access Services [Member] | Fiber Internet Services [Member] | ||||
Cost of revenue | 6,982 | 3,928 | 3,994 | [2] |
Domain Name Services [Member] | ||||
Cost of revenue | 167,451 | 169,236 | 182,048 | [2] |
Network, other costs | 7,764 | 7,183 | 7,817 | |
Total cost of revenues | 178,057 | 179,095 | 193,050 | |
Domain Name Services [Member] | Network Expenses [Member] | ||||
Network, other costs | 9,190 | |||
Domain Name Services [Member] | Wholesale [Member] | ||||
Cost of revenue | 149,949 | 151,516 | 163,370 | [2] |
Domain Name Services [Member] | Retail Services [Member] | ||||
Cost of revenue | 17,023 | 17,093 | 17,725 | [2] |
Domain Name Services [Member] | Portfolio [Member] | ||||
Cost of revenue | 479 | 627 | 953 | [2] |
Domain Name Services [Member] | Domain Services [Member] | Wholesale [Member] | ||||
Cost of revenue | 146,788 | 148,530 | 160,216 | [2] |
Domain Name Services [Member] | Value Added Services [Member] | Wholesale [Member] | ||||
Cost of revenue | $ 3,161 | $ 2,986 | $ 3,154 | [2] |
[1] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | |||
[2] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized Cost of revenue for the year ended December 31, 2018 includes $16.8 million, related to previously deferred prepaid registry fees, a portion of which would have otherwise been recognized after December 31, 2018. |
Note 19 - Segment Reporting -_2
Note 19 - Segment Reporting - Summary of Property and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment | $ 117,530 | $ 82,121 |
CANADA | ||
Property and equipment | 2,521 | 2,319 |
UNITED STATES | ||
Property and equipment | 114,968 | 79,758 |
Europe [Member] | ||
Property and equipment | $ 41 | $ 44 |
Note 19 - Segment Reporting -_3
Note 19 - Segment Reporting - Summary of Amortizable Intangible Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortizable intangible assets | $ 35,152 | $ 45,345 |
CANADA | ||
Amortizable intangible assets | 2,385 | 5,207 |
UNITED STATES | ||
Amortizable intangible assets | $ 32,767 | $ 40,138 |
Note 19 - Segment Reporting -_4
Note 19 - Segment Reporting - Summary of Deferred Tax Asset, Net of Valuation Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets, net | $ 7,954 | $ 8,771 |
GERMANY | ||
Deferred tax assets, net | $ 226 | $ 0 |
Note 19 - Segment Reporting -_5
Note 19 - Segment Reporting - Summary of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at beginning of period | $ 131 | $ 132 |
Charged to costs and expenses | 91 | (1) |
Write-offs during period | 0 | 0 |
Balance at end of period | $ 222 | $ 131 |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) $ in Millions | Feb. 09, 2021USD ($) | Dec. 31, 2020 | Feb. 13, 2020USD ($) | Feb. 12, 2020USD ($) | Dec. 31, 2019 |
Royal Bank, Bank of Montreal, Bank of Nova Scotia, HSBC and CIBC [Member] | |||||
Total Funded Debt to EBITDA Ratio | 2 | 2 | |||
Stock Buyback Program 2021 [Member] | Subsequent Event [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 40 | ||||
Stock Buyback Program 2020 [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 40 | $ 40 |
Note 21 - Selected Quarterly _3
Note 21 - Selected Quarterly Financial Data (Unaudited) - Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [2] | |
Net Revenues | $ 70,784 | $ 74,311 | $ 82,122 | $ 83,985 | $ 85,946 | $ 88,129 | $ 84,117 | $ 78,953 | $ 311,202 | $ 337,145 | $ 346,013 | [1] |
Gross Profit | 17,428 | 19,941 | 22,966 | 25,150 | 26,045 | 27,574 | 24,507 | 22,651 | 85,485 | 100,777 | 96,770 | |
Net income | $ 2,068 | $ 716 | $ 157 | $ 2,834 | $ 5,778 | $ 4,205 | $ 2,616 | $ 2,799 | $ 5,775 | $ 15,398 | $ 17,135 | [3] |
Basic (in dollars per share) | $ 0.19 | $ 0.07 | $ 0.01 | $ 0.27 | $ 0.55 | $ 0.40 | $ 0.25 | $ 0.26 | $ 0.55 | $ 1.45 | $ 1.62 | |
Diluted (in dollars per share) | $ 0.19 | $ 0.07 | $ 0.01 | $ 0.26 | $ 0.54 | $ 0.39 | $ 0.24 | $ 0.26 | $ 0.54 | $ 1.43 | $ 1.59 | |
[1] | As a result of the bulk transfers of 2.89 million domain names to Namecheap throughout 2018, recognized revenue for the year ended December 31, 2018 includes $16.9 million, related to previously deferred revenue, a portion of which would have otherwise been recognized after December 31, 2018. | |||||||||||
[2] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2 (u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. | |||||||||||
[3] | The Company has initially applied ASC 2016-02 (Topic 842) on January 1, 2019 (note 2(u)). The accounting standard was adopted using the modified retrospective method, under this method the comparative period was not restated. |