Tucows 2015 Annual Report Download - page 206

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The
Company did not have any significant interest and penalties accrued as of December 31, 2015 and December 31, 2014.
Management believes that it is reasonably possible that $0.1 million of the unrecognized tax benefit will decrease
in the next twelve months as it is anticipated that the foreign tax authorities will finalize their review of prior years’ taxes
owing in Pennsylvania within that period.
The following is a reconciliation of Tucows’ change in uncertain tax position:
Total Gross Unrecognized Tax Benefits
December 31,
2015
December 31,
2014
Balance, beginning of year $ 117,000 $ 117,000
Change in uncertain tax benefits ——
Balance, end of year $ 117,000 $ 117,000
11. Common shares:
The Company’s authorized common share capital is 250 million shares of common stock without nominal or par
value. On December 31, 2015, there were 10,685,599 shares of common stock outstanding.
Share consolidation
On December 30, 2013, the Company ceased trading on the NYSE Amex Exchange and began trading on the
NASDAQ Exchange under the symbol “TCX”. In December 2013, our Board of Directors authorized a one-for-four share
consolidation of our common stock, in the form of a reverse stock split. This consolidation was effective at the opening of
trading on December 31, 2013. As a result of the share consolidation, every four shares of our common stock outstanding
were automatically combined into one share of our common stock. Each shareholder continues to hold the same percentage
of our outstanding common shares. The shares were rounded up to the next whole share for those holders who would have
otherwise received fractional shares. The share consolidation was intended to make our common stock available to a
broader range of investors and reposition the Company’s trading metrics. All share information related to shares
outstanding and earnings per share have been retroactively adjusted to reflect this stock consolidation.
Repurchase of common shares:
(a) Modified Dutch Tender Offers:
On January 7, 2015, the Company successfully concluded a modified “Dutch auction tender offer” that was
previously announced in December 2014. Under the terms of the offer, the Company repurchased an aggregate of 193,907
shares of its common stock at a purchase price of $18.50 per share, for a total of $3,587,280, excluding transaction costs of
approximately $70,000. The purchase price and all transaction costs were funded from available cash. All shares purchased
in the tender offer received the same price and all shares repurchased were immediately retired. As a result of the
completion of the tender offer, as of January 7, 2015, the Company had 11,135,825 shares issued and outstanding.
(b) Normal Course Issuer Bids:
On February 11, 2015, the Company announced a stock buyback program. Under this buyback program, the
Company may repurchase up to $20 million of the Company's common stock over the 12-month period that commenced
on February 11, 2015.
The Company repurchased 214,089 shares under this program during the three months ended March 31, 2015 for
a total of $4.1 million. The Company repurchased 25,413 shares under this program during the three months ended
June 30, 2015 for a total of $0.5 million. The Company repurchased 398,000 shares under this program during the three
months ended September 30, 2015 for a total of $10.0 million. The Company repurchased 231,047 shares under this
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