Tucows 2015 Annual Report Download - page 212

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The Company recorded stock-based compensation amounting to $0.5 million, $0.5 million and $0.4 million for
the years ended December 31, 2015, 2014 and 2013 respectively. Stock-based compensation has been included in
operating expenses as follows:
Year ended
December 31,
2015
Year ended
December 31,
2014
Year ended
December 31,
2013
Network expenses $ 28,915 $ 30,938 $ 31,664
Sales and marketing 188,035 143,514 129,302
Technical operations and development 111,239 85,904 78,800
General and administrative 197,836 282,382 191,137
$ 526,025 $ 542,738 $ 430,903
13. Foreign exchange gain:
A foreign exchange loss amounting to $0.3 million has been recorded in general and administrative expenses
during the year ended December 31, 2015 (“Fiscal 2015”). A foreign exchange loss amounting to $0.3 million has been
recorded in general and administrative expenses during the year ended December 31, 2014 (“Fiscal 2014”). A foreign
exchange gain amounting to $0.3 million has been recorded in general and administrative expenses during the year ended
December 31, 2013 (“Fiscal 2013”).
14. Other income, net:
In February 2015, we waived our rights under the proposed joint venture to operate the .online registry and
instead entered into a Joint Marketing agreement with our venture partners under which our original capital contributions
have been returned and a set of go-forward marketing arrangements have been created instead. Under the terms of the
agreement, the Company has undertaken to provide certain marketing support for .online registry and has agreed to certain
volume commitments during the term of the agreement. The Joint Marketing Agreement is for a term of three years and
commenced in November 2015. The Company generated a gain of $1.5 million for waiving its rights and entering the Joint
Marketing Agreement. The gain is being recognized over the term of three years. An amount of $0.1 million of this gain
was recognized during the current year.
15. Earnings per common share:
The following table reconciles the numerators and denominators of the basic and diluted earnings per common
share computation:
Year ended
December 31,
2015
Year ended
December 31,
2014
Year ended
December 31,
2013
Numerator for basic and diluted earnings per common share:
Net income for the year $ 11,373,730 $ 6,374,096 $ 4,180,464
Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding 10,968,500 11,220,874 10,468,250
Effect of stock options 391,584 509,524 813,159
Diluted weighted average number of shares outstanding 11,360,084 11,730,398 11,281,409
Basic earnings per common share $ 1.04 $ 0.57 $ 0.40
Diluted earnings per common share $ 1.00 $ 0.54 $ 0.37
Options to purchase 75,050 common shares were outstanding during 2015 (2014: 95,762; 2013: 136,812) but
were not included in the computation of diluted income per common share because the options’ exercise price was greater
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