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Note 15 - Share-based Payments
9 Months Ended
Sep. 30, 2020
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  September 30, 2020 and  September 30, 2019 are as follows (Dollar amounts in thousands of U.S. dollars, except per share amounts):

 

  

Three Months Ended September 30, 2020

  

Three Months Ended September 30, 2019

 
  

Number of shares

  

Weighted average exercise price per share

  

Number of shares

  

Weighted average exercise price per share

 
                 

Outstanding, beginning of period

  897,278  $53.41   774,915  $48.63 

Granted

  23,800   68.30   36,500   54.51 

Exercised

  (38,102)  38.58   (12,260)  15.60 

Forfeited

  (10,678)  60.54   (7,014)  60.87 

Expired

  (636)  58.77   (12,875)  44.98 

Outstanding, end of period

  871,662   54.38   779,266   49.37 

Options exercisable, end of period

  436,862  $48.57   368,664  $39.43 

 

Details of stock option transactions for the nine months ended September 30, 2020 and  September 30, 2019 are as follows (Dollar amounts in thousands of U.S. dollars, except per share amounts):

 

  

Nine Months Ended September 30, 2020

  

Nine Months Ended September 30, 2019

 
  

Number of shares

  

Weighted average exercise price per share

  

Number of shares

  

Weighted average exercise price per share

 
                 

Outstanding, beginning of period

  754,497  $49.94   702,337  $43.80 

Granted

  219,325   60.18   180,800   60.56 

Exercised

  (80,037)  26.87   (66,619)  18.65 

Forfeited

  (18,993)  60.41   (22,315)  58.59 

Expired

  (3,130)  59.64   (14,937)  46.45 

Outstanding, end of period

  871,662   54.38   779,266   49.37 

Options exercisable, end of period

  436,862  $48.57   368,664  $39.43 

 

As of September 30, 2020, the exercise prices, weighted average remaining contractual life of outstanding options and intrinsic values were as follows:

 
  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 
                                 
$10.16 - $19.95  61,514  $16.21   1.0  $3,241   61,514  $16.21   1.0  $3,241 
$21.10 - $27.53  36,250   23.76   1.7   1,636   36,250   23.76   1.7   1,636 
$35.25 - $37.35  5,625   36.88   1.7   180   4,375   37.35   1.3   138 
$46.90 - $48.00  14,000   47.33   5.4   302   3,750   47.00   3.4   82 
$51.82 - $59.98  329,046   55.52   3.8   4,402   248,490   55.52   3.6   3,325 
$60.01 - $68.41  425,227   62.08   5.8   2,899   82,483   63.33   5.1   459 
   871,662  $54.38   4.5  $12,660   436,862  $48.57   3.3  $8,881 
                                 

 

Total unrecognized compensation cost relating to unvested stock options at September 30, 2020, prior to the consideration of expected forfeitures, is approxi mately $8.0 m illion and is expected to be recognized over a weighted average period of 2.6 years.

 

The Company recorded stock-based compensation of  $1.0 million for the three months ended September 30, 2020, and $0.8 million for the three months ended  September 30, 2019, respectively. 
 

The Company recorded stock-based compensation of $2.7 million for the nine months ended September 30, 2020, and $2.0 million for the nine months ended September 30, 2019, respectively.
 
The Company has not capitalized any stock-based compensation expense as part of the cost of an asset.