TUCOWS INC PA

For the period ended Jun 30, 2024. Filed Aug 8, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 8, 2024

TCX$13.32-1.5%Stored close · as of Nov 10, 2026

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Contents

Item 1. Consolidated Financial Statements

Tucows Inc.

Consolidated Balance Sheets

(Dollar amounts in thousands of U.S. dollars)

	June 30,	December 31,
	2024	2023
Assets
Current assets:
Cash and cash equivalents	$39,280	$92,687
Restricted cash (note 7)	4,050	3,639
Accounts receivable, net of allowance for doubtful accounts of $446 as of June 30, 2024 and $511 as of December 31, 2023	17,965	22,206
Contract asset, net (note 10)	31	1,417
Inventory	5,544	6,786
Prepaid expenses and deposits	21,118	17,387
Derivative instrument asset (note 4)	184	2,277
Deferred costs of fulfillment, current portion (note 11)	100,333	95,649
Income taxes recoverable	441	709
Total current assets	188,946	242,757
Deferred costs of fulfillment, long-term portion (note 11)	15,684	15,419
Investments	2,012	2,012
Secured notes reserve funds (note 7)	8,868	8,652
Property and equipment, net	354,232	339,644
Right of use lease asset	28,898	27,467
Contract costs	2,461	2,581
Intangible assets, net (note 5)	26,700	29,484
Goodwill (note 5)	130,410	130,410
Total assets	$758,211	$798,426
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$11,233	$12,676
Accrued liabilities	33,157	35,356
Customer deposits	18,437	19,335
Derivative instrument liability, current portion (note 4)	13	-
Operating lease liability, current portion (note 12)	5,462	5,397
Deferred revenue, current portion (note 10)	134,037	126,733
Accreditation fees payable	616	609
Income taxes payable	1,236	1,235
Total current liabilities	204,191	201,341
Deferred revenue, long-term portion (note 10)	21,537	21,350
Operating lease liability, long-term portion (note 12)	19,222	18,255
Syndicated revolver (note 6)	198,632	210,354
Notes payable (note 7)	224,689	222,895
Redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of June 30, 2024 and December 31, 2023 (note 18)	120,042	111,390
Deferred tax liability	2,966	2,966
Stockholders' deficit (note 14)
Common stock - no par value, 250,000,000 shares authorized; 10,957,269 shares issued and outstanding as of June 30, 2024 and 10,903,405 shares issued and outstanding as of December 31, 2023 (note 14)	35,527	34,373
Additional paid-in capital	16,662	14,072
Accumulated deficit	(85,386)	(40,298)
Accumulated other comprehensive income (note 4)	129	1,728
Total stockholders' deficit	(33,068)	9,875
Total liabilities and stockholders' deficit	$758,211	$798,426
Contingencies (note 20)

Tucows Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Dollar amounts in thousands of U.S. dollars, except per share amounts)

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2024	2023	2024	2023
Net revenues (note 10)	$89,423	$84,978	$176,880	$165,408
Cost of revenues (note 10)
Direct cost of revenues	51,328	50,743	103,122	100,033
Network, other costs	6,862	6,993	13,926	13,316
Network, depreciation of property and equipment	10,057	8,757	19,922	17,193
Network, amortization of intangible assets (note 5)	366	379	731	757
Network, impairment of property and equipment	-	74	53	2,016
Total cost of revenues	68,613	66,946	137,754	133,315
Gross profit	20,810	18,032	39,126	32,093
Expenses:
Sales and marketing	14,746	16,020	33,311	31,757
Technical operations and development	4,522	4,581	9,538	9,396
General and administrative	9,188	8,084	19,006	16,275
Depreciation of property and equipment	116	150	238	302
Amortization of intangible assets (note 5)	835	2,230	2,149	4,724
Loss on currency forward contracts (note 4)	-	68	-	23
Total expenses	29,407	31,133	64,242	62,477
Loss from operations	(8,597)	(13,101)	(25,116)	(30,384)
Other income (expenses):
Interest expense, net	(12,553)	(10,501)	(24,432)	(18,381)
Loss on debt extinguishment (note 18)	-	(14,680)	-	(14,680)
Income earned on sale of transferred assets, net (note 17)	3,357	4,289	6,978	8,659
Other income, net	409	-	476	-
Total other income (expenses)	(8,787)	(20,892)	(16,978)	(24,402)
Loss before provision for income taxes	(17,384)	(33,993)	(42,094)	(54,786)
Provision (recovery) for income taxes (note 8)	1,220	(3,025)	2,994	(4,735)
Net loss for the period	(18,604)	(30,968)	(45,088)	(50,051)
Other comprehensive income (loss), net of tax
Unrealized income (loss) on hedging activities (note 4)	(304)	578	(1,430)	646
Net amount reclassified to earnings (note 4)	-	(390)	(169)	(626)
Other comprehensive income (loss) net of tax expense (recovery) of ($97) and $59 for the three months ended June 30, 2024 and June 30, 2023, ($510) and $7 for the six months ended June 30, 2024 and June 30, 2023 (note 4)	(304)	188	(1,599)	20
Comprehensive loss, for the period	$(18,908)	$(30,780)	$(46,687)	$(50,031)
Basic and diluted loss per common share (note 9)	$(1.70)	$(2.86)	$(4.12)	$(4.63)
Shares used in computing basic and diluted loss per common share (note 9)	10,954,596	10,836,652	10,939,098	10,821,608

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.