TUCOWS INC PA

For the period ended Sep 30, 2024. Filed Nov 7, 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.

Sep 30, 2024 · Filed Nov 7, 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)

	September 30,	December 31,
	2024	2023
Assets
Current assets:
Cash and cash equivalents	$75,209	$92,687
Restricted cash (note 7)	4,303	3,639
Accounts receivable, net of allowance for doubtful accounts of $497 as of September 30, 2024 and $511 as of December 31, 2023	18,892	22,206
Contract asset, net (note 10)	-	1,417
Inventory	4,812	6,786
Prepaid expenses and deposits	16,453	17,387
Derivative instrument asset (note 4)	708	2,277
Deferred costs of fulfillment, current portion (note 11)	100,681	95,649
Income taxes recoverable	524	709
Total current assets	221,582	242,757
Deferred costs of fulfillment, long-term portion (note 11)	15,548	15,419
Investments	2,012	2,012
Secured notes reserve funds (note 7)	11,579	8,652
Property and equipment, net	355,689	339,644
Right of use lease asset	33,794	27,467
Contract costs	2,445	2,581
Intangible assets, net (note 5)	25,968	29,484
Goodwill (note 5)	130,410	130,410
Total assets	$799,027	$798,426
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$9,128	$12,676
Accrued liabilities	29,859	35,356
Customer deposits	17,187	19,335
Operating lease liability, current portion (note 12)	5,551	5,397
Deferred revenue, current portion (note 10)	134,745	126,733
Accreditation fees payable	627	609
Income taxes payable	1,775	1,235
Total current liabilities	198,872	201,341
Deferred revenue, long-term portion (note 10)	21,284	21,350
Operating lease liability, long-term portion (note 12)	23,949	18,255
Syndicated revolver (note 6)	196,261	210,354
Notes payable (note 7)	286,641	222,895
Redeemable preferred units - no par value, 33,333,333 units authorized; 15,243,600 units issued and outstanding as of September 30, 2024 and December 31, 2023 (note 18)	122,128	111,390
Deferred tax liability	2,966	2,966
Stockholders' deficit (note 14)
Common stock - no par value, 250,000,000 shares authorized; 10,985,238 shares issued and outstanding as of September 30, 2024 and 10,903,405 shares issued and outstanding as of December 31, 2023 (note 14)	36,142	34,373
Additional paid-in capital	17,930	14,072
Accumulated deficit	(107,683)	(40,298)
Accumulated other comprehensive income (note 4)	537	1,728
Total stockholders' deficit	(53,074)	9,875
Total liabilities and stockholders' deficit	$799,027	$798,426
Contingencies (note 20)
Subsequent events (note 21)

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 September 30,		For the Nine Months Ended September 30,
	2024	2023	2024	2023
Net revenues (note 10)	$92,297	$86,971	$269,177	$252,379
Cost of revenues (note 10)
Direct cost of revenues	52,613	50,717	155,735	150,750
Network, other costs	6,864	7,322	20,790	20,638
Network, depreciation of property and equipment	9,414	9,138	29,336	26,331
Network, amortization of intangible assets (note 5)	366	378	1,097	1,135
Network, impairment of property and equipment	852	2,663	905	4,679
Total cost of revenues	70,109	70,218	207,863	203,533
Gross profit	22,188	16,753	61,314	48,846
Expenses:
Sales and marketing	15,180	17,295	48,491	49,052
Technical operations and development	4,615	4,818	14,153	14,214
General and administrative	11,485	9,399	30,491	25,674
Depreciation of property and equipment	112	137	350	439
Amortization of intangible assets (note 5)	843	2,242	2,992	6,966
Loss (gain) on currency forward contracts (note 4)	-	29	-	52
Total expenses	32,235	33,920	96,477	96,397
Loss from operations	(10,047)	(17,167)	(35,163)	(47,551)
Other income (expenses):
Interest expense, net	(13,095)	(10,739)	(37,527)	(29,120)
Loss on debt extinguishment (note 18)	-	-	-	(14,680)
Income earned on sale of transferred assets, net (note 17)	3,853	4,312	10,831	12,971
Other income (expense), net	66	-	542	-
Total other income (expenses)	(9,176)	(6,427)	(26,154)	(30,829)
Loss before provision for income taxes	(19,223)	(23,594)	(61,317)	(78,380)
Provision (recovery) for income taxes (note 8)	3,074	(822)	6,068	(5,557)
Net loss for the period	(22,297)	(22,772)	(67,385)	(72,823)
Other comprehensive income (loss), net of tax
Unrealized income (loss) on hedging activities (note 4)	415	(483)	(1,015)	163
Net amount reclassified to earnings (note 4)	(7)	(181)	(176)	(807)
Other comprehensive income (loss) net of tax expense (recovery) of $134 and ($211) for the three months ended September 30, 2024 and September 30, 2023, ($376) and ($204) for the nine months ended September 30, 2024 and September 30, 2023 (note 4)	408	(664)	(1,191)	(644)
Comprehensive loss, for the period	$(21,889)	$(23,436)	$(68,576)	$(73,467)
Basic and diluted loss per common share (note 9)	$(2.03)	$(2.09)	$(6.15)	$(6.71)
Shares used in computing basic and diluted loss per common share (note 9)	10,982,820	10,874,659	10,953,778	10,852,079

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.