SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-28284
TUCOWS INC.
(Exact Name of Registrant as Specified in Its Charter)
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Pennsylvania |
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23-2707366 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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96 Mowat Avenue, |
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(Address of Principal Executive Offices) (Zip Code) |
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(416) 535-0123 |
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(Registrant’s Telephone Number, Including Area Code) |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) : Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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Class |
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Outstanding at April 28, 2004 |
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Common Stock, no par value |
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65,539,717 |
TUCOWS INC.
Form 10-Q Quarterly Report
INDEX
2
FINANCIAL INFORMATION
Item 1. Financial Statements
Tucows Inc.
(Dollar amounts in U.S. dollars)
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March 31, |
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December 31, |
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(unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
13,656,958 |
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$ |
12,912,811 |
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Restricted cash |
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— |
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132,500 |
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Accounts receivable, net of allowance for doubtful accounts of $50,000 as of March 31, 2004 and December 31, 2003 |
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548,957 |
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486,289 |
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Prepaid expenses and deposits |
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2,007,943 |
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2,061,948 |
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Prepaid domain name registry fees, current portion |
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14,564,254 |
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13,204,566 |
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Total current assets |
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30,778,112 |
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28,798,114 |
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Prepaid domain name registry fees, long-term portion |
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5,813,518 |
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5,136,194 |
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Property and equipment |
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843,558 |
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1,048,400 |
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Investments |
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353,737 |
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353,737 |
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Total assets |
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$ |
37,788,925 |
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$ |
35,336,445 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,256,845 |
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$ |
1,632,294 |
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Accrued liabilities |
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1,832,814 |
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2,088,235 |
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Customer deposits |
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2,113,720 |
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2,160,601 |
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Deferred revenue, current portion |
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22,595,093 |
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20,715,191 |
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Total current liabilities |
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27,798,472 |
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26,596,321 |
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Deferred revenue, long-term portion |
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8,801,562 |
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7,874,001 |
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Stockholders’ equity |
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Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding |
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— |
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— |
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Common stock - no par value, 250,000,000 shares authorized; 65,039,717 shares issued and outstanding as of March 31, 2004 and 64,626,429 shares issued and outsatnading as of December 31, 2003 |
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8,693,749 |
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8,540,687 |
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Additional paid-in capital |
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49,992,129 |
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49,992,129 |
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Deferred stock-based compensation |
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— |
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(20,593 |
) |
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Deficit |
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(57,496,987 |
) |
(57,646,100 |
) |
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Total stockholders’ equity |
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1,188,891 |
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866,123 |
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Total liabilities and stockholders’ equity |
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$ |
37,788,925 |
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$ |
35,336,445 |
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Subsequent events (notes 5 (b) and 6)
See accompanying notes to consolidated financial statements
3
Tucows Inc.
Consolidated Statements of Operations
(Dollar amounts in U.S. dollars)
(unaudited)
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Three months ended March 31, |
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2004 |
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2003 |
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Net revenues |
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$ |
10,174,909 |
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$ |
8,996,914 |
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Cost of revenues |
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6,445,415 |
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5,576,643 |
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Gross profit |
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3,729,494 |
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3,420,271 |
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Operating expenses: |
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Sales and marketing (*) |
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1,220,534 |
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912,336 |
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Technical operations and development |
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1,011,422 |
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831,769 |
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General and administrative (*) |
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1,073,072 |
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622,980 |
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Depreciation of property and equipment |
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312,986 |
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434,965 |
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Total operating expenses |
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3,618,014 |
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2,802,050 |
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Income from operations |
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111,480 |
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618,221 |
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Other income: |
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Interest income, net |
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37,633 |
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26,449 |
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Gain on disposal of Liberty Registry Management Services Inc. |
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— |
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235,613 |
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Total other income |
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37,633 |
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262,062 |
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Income before provision for income taxes |
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149,113 |
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880,283 |
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Provision for income taxes |
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— |
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— |
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Net income for the period |
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$ |
149,113 |
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$ |
880,283 |
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