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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Press Release issued by the Company on November 2, 2011.
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Issuer Direct Corporation
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By:
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/s/ Brian R. Balbirnie
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Brian R. Balbirnie
Chief Executive Officer
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Exhibit Number
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Description
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Press Release issued by the Company on November 2, 2011.
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●
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Overall revenue increased 121% as compared to the third quarter of 2010
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Compliance and Reporting services business increased 356% as compared to the third quarter of 2010
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Cash for the period increased to $720,423 as of September 30, 2011
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Net income before taxes increased to $118,469, or $0.07 per share, as compared to a loss of $40,772, or ($0.02) per share in the second quarter of 2010
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Learn more about Issuer Direct today
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Financial Tear sheet
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http://ir.issuerdirect.com/tearsheet/html/isdr
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Sign up to be notified of company news
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http://ir.issuerdirect.com/isdr/email_notifications
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Request materials
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http://ir.issuerdirect.com/isdr/request_materials
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ISSUER DIRECT CORPORATION
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CONSOLIDATED BALANCE SHEETS
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September 30,
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December 31,
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|||||||
2011
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2010
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|||||||
(unaudited)
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||||||||
ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 720,423 | $ | 504,713 | ||||
Accounts receivable, (net of allowance for doubtful accounts of $132,414 and $56,024, respectively)
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443,602 | 175,336 | ||||||
Deferred income tax asset – current
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120,788 | 102,400 | ||||||
Deferred costs
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50,777 | -- | ||||||
Other current assets
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49,826 | 16,581 | ||||||
Total current assets
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1,385,416 | 799,030 | ||||||
Furniture, equipment and improvements, net
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73,583 | 53,375 | ||||||
Deferred income tax – noncurrent
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40,000 | 118,400 | ||||||
Intangible assets (net of accumulated amortization of $72,333 and $55,166, respectively)
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115,862 | 93,029 | ||||||
Other noncurrent assets
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16,106 | 15,576 | ||||||
Total assets
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$ | 1,630,967 | $ | 1,079,410 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$ | 147,857 | $ | 65,570 | ||||
Accrued expenses
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53,284 | 34,918 | ||||||
Deferred revenue
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86,462 | 51,382 | ||||||
Total current liabilities
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287,603 | 151,870 | ||||||
Other long term liabilities
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57,157 | 19,810 | ||||||
Total liabilities
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344,760 | 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 $.001 par value, 100,000,000 shares authorized, 1,751,933 and 1,768,531 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively.
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1,752 | 1,769 | ||||||
Additional paid-in capital
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1,710,105 | 1,677,128 | ||||||
Accumulated deficit
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(425,650 | ) | (771,167 | ) | ||||
Total stockholders' equity
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1,286,207 | 907,730 | ||||||
Total liabilities and stockholders' equity
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$ | 1,630,967 | $ | 1,079,410 |
ISSUER DIRECT CORPORATION
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(UNAUDITED)
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For the Three Months Ended
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For the Nine Months Ended
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September 30,
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September 30,
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September 30,
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September 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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$ | 891,576 | $ | 403,991 | $ | 2,509,003 | $ | 3,368,722 | ||||||||
Cost of services
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379,357 | 191,058 | 1,048,568 | 2,303,414 | ||||||||||||
Gross profit
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512,219 | 212,933 | 1,460,435 | 1,065,308 | ||||||||||||
Operating costs and expenses
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General and administrative
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281,236 | 180,961 | 771,401 | 546,940 | ||||||||||||
Sales and marketing
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99,301 | 73,842 | 250,152 | 241,353 | ||||||||||||
Impairment charges
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-- | 4,000 | -- | 4,000 | ||||||||||||
Depreciation and amortization
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14,900 | 7,344 | 39,900 | 28,924 | ||||||||||||
Total operating costs and expenses
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395,437 | 266,147 | 1,061,453 | 821,217 | ||||||||||||
Net operating income
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116,782 | (53,214 | ) | 398,982 | 244,091 | |||||||||||
Other income (expense):
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Interest income (expense), net
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1,687 | 12,442 | 6,547 | (21,356 | ) | |||||||||||
Total other income (expense)
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1,687 | 12,442 | 6,547 | (21,356 | ) | |||||||||||
Net income (loss) before taxes
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118,469 | (40,772 | ) | 405,529 | 222,735 | |||||||||||
Income tax expense
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47,388 | -- | 60,012 | -- | ||||||||||||
Net income (loss)
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$ | 71,081 | $ | (40,772 | ) | $ | 345,517 | $ | 222,735 | |||||||
Income (loss) per share - basic
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$ | 0.04 | $ | (0.02 | ) | $ | 0.20 | $ | 0.13 | |||||||
Income (loss) per share - fully diluted
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$ | 0.04 | $ | (0.02 | ) | $ | 0.20 | $ | 0.13 | |||||||
Weighted average number of common shares outstanding - basic
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1,752,107 | 1,759,292 | 1,759,079 | 1,731,224 | ||||||||||||
Weighted average number of common shares outstanding - fully diluted
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1,763,970 | 1,759,292 | 1,767,667 | 1,749,993 |
ISSUER DIRECT CORPORATION
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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Nine months ended
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September 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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$ | 345,517 | $ | 222,735 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
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Depreciation and amortization
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39,900 | 28,924 | ||||||
Bad debt expense
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99,819 | 44,061 | ||||||
Impairment charges
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-- | 4,000 | ||||||
Deferred income taxes
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60,012 | -- | ||||||
Non-cash interest expense
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-- | 34,178 | ||||||
Stock-based expenses
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69,505 | 78,898 | ||||||
Changes in operating assets and liabilities:
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Decrease (increase) in accounts receivable
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(368,085 | ) | (30,958 | ) | ||||
Decrease (increase) in other assets
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(84,552 | ) | (16,136 | ) | ||||
Increase (decrease) in accounts payable
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82,287 | 32,465 | ||||||
Increase (decrease) in accrued expenses
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55,713 | (5,509 | ) | |||||
Increase (decrease) in deferred revenue
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35,080 | -- | ||||||
Net cash provided by operating activities
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335,196 | 392,658 | ||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(42,941 | ) | (43,376 | ) | ||||
Purchase of intangible assets
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(40,000 | ) | -- | |||||
Net cash used in investing activities
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(82,941 | ) | (43,376 | ) | ||||
Cash flows from financing activities:
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Repurchase of common stock
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(36,545 | ) | -- | |||||
Net cash used in financing activities
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(36,545 | ) | -- | |||||
Net change in cash
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215,710 | 349,282 | ||||||
Cash – beginning
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504,713 | 146,043 | ||||||
Cash – ending
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$ | 720,423 | $ | 495,325 | ||||
Supplemental disclosure for non-cash investing and financing activities:
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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 |
ISSUER DIRECT CORPORATION
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RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
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Three Months Ended September 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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$ | 71,081 | $ | 0.04 | $ | (40,772 | ) | $ | (0.02 | ) | ||||||
Adjustments:
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Amortization of intangible assets and impairment charges (1)
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6,833 | 0.00 | 8,833 | 0.01 | ||||||||||||
Stock based compensation (2)
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25,914 | 0.02 | 33,888 | 0.02 | ||||||||||||
Former shareholder dispute (3)
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52,497 | 0.03 | -- | 0.00 | ||||||||||||
Moving expenses (4) | -- | 0.00 | 8,362 | 0.00 | ||||||||||||
Non-GAAP net income
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$ | 156,325 | $ | 0.09 | $ | 10,311 | $ | 0.01 |
Nine Months Ended September 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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$ | 345,517 | $ | 0.20 | $ | 222,735 | $ | 0.13 | ||||||||
Adjustments:
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Amortization of intangible assets and impairment charges (1)
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17,167 | 0.01 | 22,500 | 0.01 | ||||||||||||
Stock based compensation (2)
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69,505 | 0.04 | 78,898 | 0.05 | ||||||||||||
Former shareholder dispute (3)
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52,497 | 0.03 | -- | 0.00 | ||||||||||||
Moving expenses (4)
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-- | 0.00 | 8,362 | 0.00 | ||||||||||||
Non-cash interest expense (5)
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-- | 0.00 | 34,178 | 0.02 | ||||||||||||
Non-GAAP net income
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$ | 484,686 | $ | 0.27 | $ | 366,673 | $ | 0.21 |
(1) The adjustments represent the amortization and impairment of intangible assets related to acquired companies.
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(2) 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) The adjustments represent legal fees incurred to attempt to resolve a dispute by a former holder of Series A Preferred Stock as disclosed in Note 6 of our financial statements in our Form 10-Q filed with the Securities and Exchange Commission for the quarter ended September 30, 2011.
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(4) The adjustments represent moving expenses incurred related to the relocation to our new headquarters in September 2010.
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(5) 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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