EX-99.1 2 isdr991.htm PRESS RELEASE Exhibit 99


Exhibit 99.1


For Immediate Release

Contact: Brian Balbirnie

August 6, 2009

(919) 481-4000


ISSUER DIRECT ANNOUNCES SECOND QUARTER RESULTS

CARY, NC, August 6, 2009 (GLOBE NEWSWIRE) - Issuer Direct Corporation (OTCBB: ISDR), a market innovator of issuer focuses services to public companies today announced financial results for its second fiscal quarter ended June 30, 2009.  

Net income for the quarter ended June 30, 2009 was $268,852, or $0.02 per share on revenues of $765,808, as compared to a net loss of $332,826, or $(0.02) per share on revenues of $450,799 for the comparable period in 2008.

Revenue for the six month period ended June 30, 2009 totaled $1,238,341, a 42% increase over the comparable period in 2008. Net income totaled $360,194, or $0.02 per share, in the six months ended June 30, 2009, as compared to a net loss of $721,365, or $(0.04) per share, in the comparable period in 2008.

“We had a very strong second quarter in terms of both financial results and client segment advancement,” said Brian R. Balbirnie, Chairman and Chief Executive Officer of issuer Direct Corporations. “Our second quarter results were exactly what we anticipated due to the success of our print and proxy service offerings as well as the introduction of our transfer agent service.” The Company operates its transfer agent business under the brand Direct Transfer.

About Issuer Direct Corporation:

Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company; Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at www.sec.gov.




Unaudited Selected Financial Data


  

 

Three months ended

 

 

Six months ended

 

  

 

June 30

 

 

June 30

 

Revenue Streams

 

2009

 

 

2008

 

 

2009

 

 

2008

 

Compliance and reporting services

 

$

198,160

 

 

$

185,610

 

 

$

394,020

 

 

$

367,074

 

Printing and financial communication

 

 

189,520

 

 

 

169,898

 

 

 

294,607

 

 

 

239,661

 

Fulfillment and distribution

 

 

144,935

 

 

 

80,391

 

 

 

285,039

 

 

 

114,614

 

Software licensing

 

 

63,487

 

 

 

14,900

 

 

 

80,919

 

 

 

22,800

 

Transfer agent services

 

 

169,706

 

 

 

––

 

 

 

183,756

 

 

 

––

 

Total

 

$

765,808

 

 

$

450,799

 

 

$

1,238,341

 

 

$

744,149

 








Issuer Direct Corporation

Unaudited Consolidated Statements of Operations


  

 

For the Three Months
Ended

 

 

For the Six Months
Ended

 

  

 

June 30

 

 

June 30

 

 

June 30

 

 

June 30

 

 

2009

 

 

2008

 

 

2009

 

 

2008

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Compliance and reporting services

 

$

198,160

 

 

$

185,610

 

 

$

394,020

 

 

$

367,074

 

Printing and financial communication

 

 

189,520

 

 

 

169,898

 

 

 

294,607

 

 

 

239,661

 

Fulfillment and distribution

 

 

144,935

 

 

 

80,391

 

 

 

285,039

 

 

 

114,614

 

Software licensing

 

 

63,487

 

 

 

14,900

 

 

 

80,919

 

 

 

22,800

 

Transfer agent services

 

 

169,706

 

 

 

––

 

 

 

183,756

 

 

 

––

 

Total

 

 

765,808

 

 

 

450,799

 

 

 

1,238,341

 

 

 

744,149

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

271,041

 

 

 

284,195

 

 

 

485,041

 

 

 

421,917

 

Gross profit

 

 

494,767

 

 

 

166,604

 

 

 

753,300

 

 

 

322,232

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

138,527

 

 

 

403,881

 

 

 

240,125

 

 

 

864,756

 

Sales and marketing expenses

 

 

77,391

 

 

 

112,768

 

 

 

132,381

 

 

 

163,543

 

Depreciation and amortization

 

 

9,932

 

 

 

4,831

 

 

 

19,264

 

 

 

9,674

 

Total operating costs and expenses

 

 

225,850

 

 

 

521,480

 

 

 

391,770

 

 

 

1,037,973

 

Net operating income (loss)

 

 

268,917

 

 

 

(354,876

)

 

 

361,530

 

 

 

(715,741

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

(65

)

 

 

22,051

 

 

 

(1,336

)

 

 

(5,624

)

Total other income (expense)

 

 

(65

)

 

 

22,051

 

 

 

(1,336

)

 

 

(5,624

)

Net income (loss)

 

$

268,852

 

 

$

(332,826

)

 

$

360,194

 

 

$

(721,365

)

Income (loss) per share - basic

 

$

0.02

 

 

$

(0.02

)

 

$

0.02

 

 

$

(0.04

)

Income (loss) per share - fully diluted

 

$

0.02

 

 

$

(0.02

)

 

$

0.02

 

 

$

(0.04

)

Weighted average number of common shares outstanding - basic

 

 

6,748,783

 

 

 

17,243,658

 

 

 

16,187,857

 

 

 

17,028,250

 

Weighted average number of common shares outstanding - fully diluted

 

 

16,751,905

 

 

 

17,243,658

 

 

 

16,191,362

 

 

 

17,028,250

 




Issuer Direct Corporation

Unaudited Consolidated Balance Sheets


  

 

June 30,

 

 

December 31,

 

  

 

2009

 

 

2008

 

  

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

185,380

 

 

$

50,367

 

Accounts receivable, ( net of allowance for doubtful accounts of $45,586
and $43,764, respectively)

 

 

261,281

 

 

 

165,681

 

 Security deposits

 

 

6,242

 

 

 

6,242

 

Other current assets

 

 

26,766

 

 

 

2,855

 

Total current assets

 

 

479,669

 

 

 

225,145

 

Furniture, equipment and improvements, (net of accumulated depreciation
of $12,699 and $43,201, respectively)

 

 

22,051

 

 

 

15,987

 

Other long term assets

 

 

––

 

 

 

2,000

 

Intangible assets, (net of accumulated amortization and impairment
of $184,167 and $170,500, respectively)

 

 

134,029

 

 

 

147,695

 

Total assets

 

$

635,749

 

 

$

390,827

 

  

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

80,255

 

 

$

143,560

 

Accrued expenses

 

 

97,663

 

 

 

128,050

 

Note payable – related party

 

 

73,525

 

 

 

73,525

 

Notes payable – other

 

 

25,000

 

 

 

64,828

 

Total liabilities

 

 

276,443

 

 

 

409,963

 

  

 

 

 

 

 

 

 

 

Stockholders' equity (deficit):

 

 

 

 

 

 

 

 

Preferred stock, $1.00 par value, 10,000,000 shares authorized

 

 

5

 

 

 

7

 

Series A, 60 shares designated, 5 and 7 shares issued and outstanding
as June 30, 2009 and December 31, 2009

 

 

 

 

 

 

 

 

Series B, 476,200 shares designated; no shares issued
and outstanding

 

 

 

 

 

 

 

 

Common stock $.01 par value, 100,000,000 shares authorized,

 

 

 

 

 

 

 

 

16,754,717 and 18,834,717shares issued and outstanding as of June 30, 2009
and December 31, 2008, respectively.

 

 

16,754

 

 

 

18,834

 

Additional paid-in capital

 

 

1,461,338

 

 

 

1,441,006

 

Treasury stock, at cost, 4,495 shares

 

 

(4,236

)

 

 

(4,236

)

Accumulated deficit

 

 

(1,114,555

)

 

 

(1,474,747

)

Total stockholders' equity (deficit)

 

 

359,306

 

 

 

(19,136

)

Total liabilities and stockholders’ equity (deficit)

 

$

635,749

 

 

$

390,827

 

 




Issuer Direct Corporation

Unaudited Consolidated Statement of Cash Flows

  

 

Six months ended

 

  

 

June 30,

 

  

 

2009

 

 

2008

 

Cash flows from operating activities:

 

 

 

 

 

 

 Net income (loss)

 

$

360,194

 

 

$

(721,365

)

Adjustments to reconcile net loss to net cash

 

 

 

 

 

 

 

 

   provided by (used in) operating activities:

 

 

 

 

 

 

 

 

    Depreciation and amortization

 

 

19,264

 

 

 

9,674

 

    Bad debt expense

 

 

26,963

 

 

 

––

 

    Stock-based expenses

 

 

––

 

 

 

630,899

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

  Decrease (increase) in accounts receivable

 

 

(122,564

)

 

 

(98,424

)

  Decrease (increase) in deposits and prepaids

 

 

(21,911

)

 

 

(1,076

)

  Increase (decrease) in accounts payable

 

 

(63,305

)

 

 

120,626

 

  Increase (decrease) in accrued expenses

 

 

(5,389

)

 

 

18,045

 

  

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

 

193,252

 

 

 

(41,621

)

  

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(11,661

)

 

 

––

 

Net cash used in investing activities

 

 

(11,661

)

 

 

––

 

  

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(6,750

)

 

 

––

 

Proceeds from sale of common stock

 

 

––

 

 

 

50,000

 

Repayments of notes payable

 

 

(39,828

)

 

 

(10,355

)

Net cash provided by (used in) financing activities

 

 

(46,578

)

 

 

39,645

 

  

 

 

 

 

 

 

 

 

Net change in cash

 

 

135,013

 

 

 

(1,976

)

Cash – beginning

 

 

50,367

 

 

 

39,318

 

Cash – ending

 

$

185,380

 

 

$

37,342

 

  

 

 

 

 

 

 

 

 

Supplemental disclosure for non-cash investing and financing activities:

 

 

 

 

 

Cash paid for interest

 

$

1,192

 

 

$

1,515

 

Cash paid for income taxes

 

$

––

 

 

$

––

 

Non-cash activities:

 

 

 

 

 

 

 

 

Accrued expenses settled by issuance of shares

 

$

25,000

 

 

$

71,000

 

Common shares issued for preferred shares

 

$

2

 

 

 

––