Delaware
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1-10185
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26-1331503
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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99.1
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Press Release issued by the Company on May 4, 2011.
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Issuer Direct Corporation
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Date: May 4, 2011 |
By:
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/s/Brian R. Balbirnie
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Brian R. Balbirnie | |||
Chief Executive Officer |
Exhibit Number
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Description
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99.1
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Press Release issued by the Company on May 4, 2011.
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●
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Compliance and Reporting services business increased 21%.
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●
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Executed a key reseller partnership agreement for our XBRL tagging services that will substantially increase our market share in fiscal 2011.
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●
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iFUND Direct signed post sale fulfillment agreements with key mutual funds and brokers.
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●
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Non-GAAP net income was positive for the period.
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March 31,
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December 31,
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|||||||
2011
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2010
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(unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 501,893 | $ | 504,713 | ||||
Accounts receivable, (net of allowance for doubtful accounts of $74,008 and $56,024, respectively)
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222,650 | 175,336 | ||||||
Deferred income tax asset – current
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102,400 | 102,400 | ||||||
Other current assets
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20,510 | 16,581 | ||||||
Total current assets
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847,453 | 799,030 | ||||||
Furniture, equipment and improvements, net
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75,598 | 53,375 | ||||||
Deferred income tax – noncurrent
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118,400 | 118,400 | ||||||
Intangible assets (net of accumulated amortization of $60,000 and $55,166, respectively)
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88,196 | 93,029 | ||||||
Other noncurrent assets
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16,106 | 15,576 | ||||||
Total assets
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$ | 1,145,753 | $ | 1,079,410 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 89,367 | $ | 65,570 | ||||
Accrued expenses
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34,228 | 34,918 | ||||||
Deferred revenue
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88,606 | 51,382 | ||||||
Total current liabilities
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212,201 | 151,870 | ||||||
Other long term liabilities
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32,258 | 19,810 | ||||||
Total liabilities
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244,459 | 171,680 | ||||||
Stockholders' equity:
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||||||||
Preferred stock, $1.00 par value, 30,000,000 shares authorized – Series A, 60 shares designated, no shares issued
and outstanding; Series B, 476,200 shares designated, no shares issued and outstanding.
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- | - | ||||||
Common stock $.001 par value, 100,000,000 shares authorized, 17,685,312 shares issued and outstanding as of March 31, 2011 and December 31, 2010.
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17,685 | 17,685 | ||||||
Additional paid-in capital
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1,680,558 | 1,661,212 | ||||||
Accumulated deficit
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(796,949 | ) | (771,167 | ) | ||||
Total stockholders' equity
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901,294 | 907,730 | ||||||
Total liabilities and stockholders’ equity
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$ | 1,145,753 | $ | 1,079,410 |
For the Three Months Ended
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March 31, 2011 | March 31, 2010 | |||||||
Revenues
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$ | 513,556 | $ | 605,081 | ||||
Cost of services
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232,096 | 199,255 | ||||||
Gross profit
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281,460 | 405,826 | ||||||
Operating costs and expenses:
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General and administrative
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233,736 | 160,301 | ||||||
Sales and marketing expenses
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64,549 | 64,192 | ||||||
Depreciation and amortization
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11,819 | 11,399 | ||||||
Total operating costs and expenses
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310,104 | 235,892 | ||||||
Net operating income (loss)
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(28,644 | ) | 169,934 | |||||
Other income (expense):
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Interest income (expense), net
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2,862 | (35,270 | ) | |||||
Total other income (expense)
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2,862 | (35,270 | ) | |||||
Net income (loss)
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$ | (25,782 | ) | $ | 134,664 | |||
Income (loss) per share - basic
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$ | (0.00 | ) | $ | 0.01 | |||
Income (loss) per share - fully diluted
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$ | (0.00 | ) | $ | 0.01 | |||
Weighted average number of common shares outstanding - basic
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17,685,312 | 16,843,108 | ||||||
Weighted average number of common shares outstanding - fully diluted
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17,837,574 | 16,887,181 |
Three months ended
March 31,
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2011 | 2010 | |||||||
Cash flows from operating activities: | ||||||||
Net income
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$ | (25,782 | ) | $ | 134,664 | |||
Adjustments to reconcile net loss to net cash
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provided by (used in) operating activities:
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Depreciation and amortization
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11,818 | 11,399 | ||||||
Bad debt expense
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21,182 | 32,111 | ||||||
Non-cash interest expense
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- | 34,179 | ||||||
Stock-based expense
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19,346 | 27,000 | ||||||
Changes in operating assets and liabilities:
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Decrease (increase) in accounts receivable
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(68,496 | ) | (77,633 | ) | ||||
Decrease (increase) in deposits and prepaids
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(4,459 | ) | 193 | |||||
Increase (decrease) in accounts payable
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23,797 | 9,827 | ||||||
Increase (decrease) in accrued expenses
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11,758 | 4,555 | ||||||
Increase (decrease) in deferred revenue
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37,224 | - | ||||||
Net cash provided by operating activities
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26,388 | 176,295 | ||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(29,208 | ) | (6,958 | ) | ||||
Net cash used in investing activities
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(29,208 | ) | (6,958 | ) | ||||
Cash flows from financing activities:
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Net cash used in financing activities
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- | - | ||||||
Net change in cash
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(2,820 | ) | 169,337 | |||||
Cash – beginning
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504,713 | 146,043 | ||||||
Cash – ending
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$ | 501,893 | $ | 315,380 | ||||
Supplemental disclosure for non-cash investing and financing activities: | ||||||||
Cash paid for interest
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$ | - | $ | - | ||||
Cash paid for income taxes
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$ | - | $ | - | ||||
Non-cash activities:
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Related party notes payable and accrued interest converted to common shares
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$ | - | $ | 59,666 | ||||
Related party notes payable and accrued interest converted to preferred shares
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$ | - | $ | 27,780 |
Three Months Ended March 31,
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2011
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2010
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Amount
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Per diluted share
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Amount
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Per diluted share
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Net loss
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$ | (25,782 | ) | $ | (0.00 | ) | $ | 134,664 | $ | 0.01 | ||||||
Adjustments:
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Amortization of intangible assets (1)
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4,833 | 0.00 | 6,833 | 0.00 | ||||||||||||
Stock based compensation (2)
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19,346 | 0.00 | 27,000 | 0.00 | ||||||||||||
Non-cash interest expense (3)
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8,362 | 0.00 | 34,179 | 0.00 | ||||||||||||
Non-GAAP net income
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$ | 6,759 | $ | 0.00 | $ | 202,676 | $ | 0.01 |
(1)
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The adjustments represent the amortization of intangible assets related to acquired companies.
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(2)
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The adjustments represent stock-based compensation expense recognized related to awards of stock options or common stock in exchange for services.
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(3)
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The adjustments represent non-cash interest expense incurred upon the conversion of notes payable into shares of the company for the value of the shares received in excess of the carrying value of the notes payable and accrued interest.
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