Delaware
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1-10185
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26-1331503
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Press Release issued by the Company on August 2, 2011. |
Issuer Direct Corporation | |||
Date: August 2, 2011
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By:
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/s/ Brian R. Balbirnie | |
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 August 2, 2011.
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●
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Net income increased to $300,218, or $0.02 per share, as compared to $128,843, or $0.01 per share in the second quarter of 2010.
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Compliance and Reporting services business increased 196% as compared to the second quarter of 2010.
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Cash for the period increased 22% over previous period.
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●
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Acquired the rights to the customers of Edgar Tech Filing Services.
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Learn more about Issuer Direct today
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Financial Tear sheet
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http://ir.issuerdirect.com/tearsheet/html/isdr
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Sign up to be notified of company news
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http://ir.issuerdirect.com/isdr/email_notifications
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Request materials
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http://ir.issuerdirect.com/isdr/request_materials
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June 30,
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December 31,
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|||||||
2011
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2010
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|||||||
(unaudited)
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||||||||
ASSETS
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Current assets:
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||||||||
Cash and cash equivalents
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$ | 616,430 | $ | 504,713 | ||||
Accounts receivable, (net of allowance for doubtful accounts of $118,673 and $56,024, respectively)
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369,452 | 175,336 | ||||||
Deferred income tax asset – current
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168,176 | 102,400 | ||||||
Other current assets
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52,438 | 16,581 | ||||||
Total current assets
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1,206,496 | 799,030 | ||||||
Furniture, equipment and improvements, net
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69,142 | 53,375 | ||||||
Deferred income tax – noncurrent
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40,000 | 118,400 | ||||||
Intangible assets (net of accumulated amortization of $65,500 and $55,166, respectively)
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122,696 | 93,029 | ||||||
Other noncurrent assets
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16,106 | 15,576 | ||||||
Total assets
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$ | 1,454,440 | $ | 1,079,410 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 139,709 | $ | 65,570 | ||||
Accrued expenses
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43,776 | 34,918 | ||||||
Deferred revenue
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35,829 | 51,382 | ||||||
Total current liabilities
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219,314 | 151,870 | ||||||
Other long term liabilities
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44,708 | 19,810 | ||||||
Total liabilities
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264,022 | 171,680 | ||||||
Commitments and contingencies (Note 6) *
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||||||||
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 $.001 par value, 100,000,000 shares authorized,17,524,297 and 17,685,312 shares issued and outstanding as of
June 30, 2011 and December 31, 2010, respectively.
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||||||||
17,524 | 17,685 | |||||||
Additional paid-in capital | 1,669,625 | 1,661,212 | ||||||
Accumulated deficit
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(496,731 | ) | (771,167 | ) | ||||
Total stockholders' equity
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1,190,418 | 907,730 | ||||||
Total liabilities and stockholders’ equity
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$ | 1,454,440 | $ | 1,079,410 |
For the Three Months Ended
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For the Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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June 30,
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June 30,
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|||||||||||||
2011
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2010
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2011
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2010
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Revenues
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$ | 1,103,871 | $ | 2,359,650 | $ | 1,617,427 | $ | 2,964,731 | ||||||||
Cost of services
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437,115 | 1,913,101 | 669,211 | 2,112,356 | ||||||||||||
Gross profit
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666,756 | 446,549 | 948,216 | 852,375 | ||||||||||||
Operating costs and expenses
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General and administrative
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256,429 | 205,678 | 490,165 | 365,979 | ||||||||||||
Sales and marketing expenses
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86,302 | 103,319 | 150,851 | 167,511 | ||||||||||||
Depreciation and amortization
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13,181 | 10,181 | 25,000 | 21,580 | ||||||||||||
Total operating costs and expenses
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355,912 | 319,178 | 666,016 | 555,070 | ||||||||||||
Net operating income
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310,844 | 127,371 | 282,200 | 297,305 | ||||||||||||
Other income (expense):
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Interest income (expense), net
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1,998 | 1,472 | 4,860 | (33,798 | ) | |||||||||||
Total other income (expense)
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1,998 | 1,472 | 4,860 | (33,798 | ) | |||||||||||
Net income before taxes
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312,842 | 128,843 | 287,060 | 263,507 | ||||||||||||
Income tax expense
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(12,624 | ) | - | (12,624 | ) | - | ||||||||||
Net income
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$ | 300,218 | $ | 128,843 | $ | 274,436 | $ | 263,507 | ||||||||
Income per share - basic
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$ | 0.02 | $ | 0.01 | $ | 0.02 | $ | 0.02 | ||||||||
Income per share - fully diluted
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$ | 0.02 | $ | 0.01 | $ | 0.02 | $ | 0.02 | ||||||||
Weighted average number of common shares outstanding - basic
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17,567,739 | 17,493,090 | 17,626,201 | 17,169,575 | ||||||||||||
Weighted average number of common shares outstanding - fully diluted
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17,627,777 | 17,751,413 | 17,734,746 | 17,321,365 |
Six months ended
June 30,
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||||||||
2011
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2010
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Cash flows from operating activities:
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Net income
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$ | 274,436 | $ | 263,507 | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
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Depreciation and amortization
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25,000 | 21,580 | ||||||
Bad debt expense
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85,345 | 47,780 | ||||||
Deferred income taxes
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12,624 | - | ||||||
Non-cash interest expense
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- | 34,178 | ||||||
Stock-based expenses
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43,590 | 45,000 | ||||||
Changes in operating assets and liabilities:
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Decrease (increase) in accounts receivable
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(279,461 | ) | (731,725 | ) | ||||
Decrease (increase) in deposits and prepaids
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(36,387 | ) | (14,733 | ) | ||||
Increase (decrease) in accounts payable
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74,139 | 1,670,233 | ||||||
Increase (decrease) in accrued expenses
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33,756 | 149,166 | ||||||
Increase (decrease) in deferred revenue
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(15,553 | ) | - | |||||
Net cash provided by operating activities
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217,489 | 1,484,986 | ||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(30,434 | ) | (7,205 | ) | ||||
Purchase of intangible assets
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(40,000 | ) | - | |||||
Net cash used in investing activities
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(70,434 | ) | (7,205 | ) | ||||
Cash flows from financing activities:
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Repurchase of common stock
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(35,338 | ) | - | |||||
Net cash used in financing activities
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(35,338 | ) | - | |||||
Net change in cash
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111,717 | 1,477,781 | ||||||
Cash – beginning
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504,713 | 146,043 | ||||||
Cash – ending
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$ | 616,430 | $ | 1,623,824 | ||||
Supplemental disclosure for non-cash investing and financing activities: | ||||||||
Cash paid for interest
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$ | 29 | $ | 518 | ||||
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 June 30,
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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 income
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$ | 300,218 | $ | 0.02 | $ | 128,843 | $ | 0.01 | ||||||||
Adjustments:
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Amortization of intangible assets (1)
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5,500 | 0.00 | 6,833 | 0.00 | ||||||||||||
Stock based compensation (2)
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24,244 | 0.00 | 17,900 | 0.00 | ||||||||||||
Non-GAAP net income
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$ | 329,962 | $ | 0.02 | $ | 153,576 | $ | 0.01 |
Six Months Ended June 30,
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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 income
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$ | 274,436 | $ | 0.02 | $ | 263,507 | $ | 0.02 | ||||||||
Adjustments:
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Amortization of intangible assets (1)
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10,334 | 0.00 | 13,667 | 0.00 | ||||||||||||
Stock based compensation (2)
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43,590 | 0.00 | 45,000 | 0.00 | ||||||||||||
Non-cash interest expense (3)
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- | 0.00 | 34,178 | 0.00 | ||||||||||||
Non-GAAP net income
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$ | 328,360 | $ | 0.02 | $ | 356,352 | $ | 0.02 |
(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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