Tucows 2013 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2013 Tucows annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

Proceeds received on short swing sale
-
-
3,659
Proceeds received on loan payable
5,200,000
4,000,000
2,530,000
Repayment of loan payable
(2,600,000
)
(1,150,000
)
(2,985,883
)
Net cash used in financing activities
(1,355,271
)
(5,847,725
)
(439,320
)
Investing activities:
Additions to property and equipment
(1,345,627
)
(997,036
)
(851,008
)
Acquisition of EPAG Domainservices GMBH, net of cash
acquired
-
-
(2,392,461
)
Proceeds on disposal of intangible assets
-
508,800
-
Net cash used in investing activities
(1,345,627
)
(488,236
)
(3,243,469
)
Increase in cash and cash equivalents
6,003,209
7,470
2,202,480
Cash and cash equivalents, beginning of year
6,415,679
6,408,209
4,205,729
Cash and cash equivalents, end of year
$
12,418,888
$
6,415,679
$
6,408,209
Supplemental cash flow information:
Interest paid
$
372,853
$
195,509
$
53,166
Income taxes paid, net
$
793,000
$
1,025,000
$
550,000
Supplementary disclosure of non-cash investing and financing
activities:
Property and equipment acquired during the period not yet paid for
$
-
$
96,515
$
257,967
See accompanying notes to consolidated financial statements
F-7
Tucows Inc.
Notes to Consolidated Financial Statements
(Dollar Amounts in U.S. dollars)
1. Organization of the Company:
Tucows Inc. (the “Company”) is a global distributor of Internet services, including domain name registration,
security and identity products through digital certificates, email and mobile telephony services through its global Internet-
based distribution network of Internet Service Providers, web hosting companies and other providers of Internet services to
end-users.
2. Significant accounting policies:
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.
Certain of the prior year comparative figures have been reclassified to conform with the financial statement presentation
adopted in the current year. 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, as further described in note 8. All share information related to shares
outstanding and earnings per share have been retroactively adjusted to reflect this share consolidation.
(a) Basis of presentation
These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All
significant intercompany balances and transactions have been eliminated on consolidation.
Investments over which the Company is unable to exercise significant influence, are recorded at cost and written
down only when there is evidence that a decline in value that is other than temporary has occurred.