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Note 15 - Share-based Payments
 6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

15. Share-based Payments:

 

Stock options

 

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company's common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Tucows Inc. common shares at the date of grant.

 

Details of stock option transactions for the three months ended  June 30, 2022 and  June 30, 2021 are as follows (Dollar amounts in thousands of U.S. dollars, except per share amounts):

 

  

Three Months Ended June 30, 2022

  

Three Months Ended June 30, 2021

 
  

Number of shares

  

Weighted average exercise price per share

  

Number of shares

  

Weighted average exercise price per share

 
                 

Outstanding, beginning of period

  883,254  $64.37   808,469  $55.55 

Granted

  211,480   42.07   239,050   79.43 

Exercised

  (975)  56.98   (45,538)  43.24 

Forfeited

  (15,951)  75.87   (9,498)  61.23 

Expired

  (7,763)  58.62   (1,386)  61.93 

Outstanding, end of period

  1,070,045   59.88   991,097   61.81 

Options exercisable, end of period

  540,937  $59.62   438,437  $53.16 

 

Details of stock option transactions for the six months ended  June 30, 2022 and  June 30, 2021 are as follows (Dollar amounts in thousands of U.S. dollars, except per share amounts):

 

  

Six Months Ended June 30, 2022

  

Six Months Ended June 30, 2021

 
  

Number of shares

  

Weighted average exercise price per share

  

Number of shares

  

Weighted average exercise price per share

 
                 

Outstanding, beginning of period

  904,151  $64.36   845,020  $55.31 

Granted

  218,480   43.01   239,050   79.43 

Exercised

  (12,567)  56.66   (73,875)  44.82 

Forfeited

  (31,394)  73.05   (17,562)  61.00 

Expired

  (8,625)  58.97   (1,536)  61.93 

Outstanding, end of period

  1,070,045   59.88   991,097   61.81 

Options exercisable, end of period

  540,937  $59.62   438,437  $53.16 

 

As of June 30, 2022, the exercise prices, weighted average remaining contractual life of outstanding options and intrinsic values were as follows (Dollar amounts in thousands of U.S. dollars, except per share amounts):

 

  Options outstanding  Options exercisable 

Exercise price

 Number outstanding  Weighted average exercise price per share  Weighted average remaining contractual life (years)  Aggregate intrinsic value  Number exercisable  Weighted average exercise price per share  Weighted average remaining contractual life (years)  Aggregate intrinsic value 
                                 

$19.95 - $19.95

  7,000  $19.95   0.6  $172   7,000  $19.95   0.6  $172 

$21.10 - $21.10

  20,892   21.10   0.5   489   20,892   21.10   0.5   489 

$41.97 - $48.00

  221,480   42.24   6.8   535   7,000   47.29   2.6   - 

$51.82 - $59.98

  214,121   55.59   2.1   -   205,921   55.60   2.0   - 

$60.01 - $68.41

  328,702   62.05   4.1   -   230,456   62.63   3.8   - 

$70.13 - $79.51

  261,350   78.43   5.7   -   65,918   78.11   5.8   - 

$80.61 - $82.07

  16,500   81.27   6.3   -   3,750   82.07   6.3   - 
   1,070,045  $59.88   4.6  $1,196   540,937  $56.40   3.2  $661 

 

Total unrecognized compensation cost relating to unvested stock options at June 30, 2022, prior to the consideration of expected forfeitures, is approximately $10.3 million and is expected to be recognized over a weighted average period of 2.4 years.

 

The Company recorded stock-based compensation of $1.4 million for the three months ended June 30, 2022, and $1.2 million for the three months ended June 30, 2021, respectively. 

 

The Company recorded stock-based compensation of $2.8 million for the six months ended June 30, 2022, and $2.2 million for the six months ended June 30, 2021, respectively. 

 

The Company has not capitalized any stock-based compensation expense as part of the cost of an asset.