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 1, 2012.
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Issuer Direct Corporation
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By:
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/s/ Brian R. Balbirnie | |
Brian R. Balbirnie
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Chief Executive Officer
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Date: November 1, 2012 |
Exhibit Number
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Description
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Press Release issued by the Company on November 1, 2012.
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●
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Revenue increased 36% to $1,251,511 for the quarter ended September 30, 2012.
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Gross margins increased to 72% of revenue in the third quarter of 2012, compared with 65% in the third quarter of 2011.
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GAAP net income tripled as compared to prior-year levels in the most recent quarter.
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The Company achieved Non-GAAP net income for the quarter ended September 30, 2012 of $300,429, or $0.15 per share, and Non-GAAP net income for the nine-month period ended September 30, 2012 of $602,378, or $0.31 per share (see reconciliation of GAAP to Non-GAAP later in release).
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●
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Company’s cash balance increased 27% during first nine months to $1,099,088 at September 30, 2012.
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Three Months ended September 30,
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2012
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2011
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Amount
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Per diluted share
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Amount
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Per diluted share
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Net income:
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$ | 213,591 | $ | 0.11 | $ | 71,081 | $ | 0.04 | ||||||||
Adjustments:
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Amortization of intangible assets (1)
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25,583 | 0.02 | 6,833 | 0.00 | ||||||||||||
Stock based compensation (2)
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61,255 | 0.03 | 25,914 | 0.02 | ||||||||||||
Former shareholder dispute (3)
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- | - | 52,497 | 0.03 | ||||||||||||
Non-GAAP net income:
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$ | 300,429 | $ | 0.15 | $ | 156,325 | $ | 0.09 |
Nine Months ended September 30,
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2012
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2011
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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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$ | 192,603 | $ | 0.10 | $ | 345,517 | $ | 0.20 | ||||||||
Adjustments:
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Amortization of intangible assets (1)
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81,917 | 0.04 | 17,167 | 0.01 | ||||||||||||
Stock based compensation (2)
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327,858 | 0.17 | 69,505 | 0.04 | ||||||||||||
Former shareholder dispute (3)
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- | - | 52,497 | 0.03 | ||||||||||||
Non-GAAP net income:
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$ | 602,378 | $ | 0.31 | $ | 484,686 | $ | 0.27 |
(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 legal fees incurred to attempt to resolve a dispute by a former holder of Series A Preferred Stock as disclosed in Note 7 of our financial statements in our Form 10-Q filed with the Securities and Exchange Commission for the quarter ended September 30, 2012. The dispute has been fully resolved and there have been no expenses incurred related to this dispute during the three or nine-month period ended September 30, 2012.
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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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Request materials
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http://ir.issuerdirect.com/isdr/request_materials
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September 30,
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December 31,
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2012
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2011
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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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$ | 1,099,088 | $ | 862,386 | ||||
Accounts receivable, (net of allowance for doubtful accounts of $171,600 and $125,987, respectively)
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565,157 | 361,191 | ||||||
Deferred project costs
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- | 76,106 | ||||||
Deferred income tax asset – current
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34,094 | 135,000 | ||||||
Other current assets
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59,304 | 35,093 | ||||||
Total current assets
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1,757,643 | 1,469,776 | ||||||
Furniture, equipment and improvements, net
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53,573 | 66,611 | ||||||
Deferred income tax – noncurrent
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64,000 | 64,000 | ||||||
Intangible assets (net of accumulated amortization of $161,083 and $79,166, respectively)
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458,112 | 109,029 | ||||||
Other noncurrent assets
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12,069 | 22,074 | ||||||
Total assets
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$ | 2,345,397 | $ | 1,731,490 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 48,759 | $ | 103,566 | ||||
Accrued expenses
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64,124 | 39,324 | ||||||
Accrued litigation
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- | 130,000 | ||||||
Deferred revenue
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85,176 | 177,708 | ||||||
Line of credit
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255,000 | - | ||||||
Total current liabilities
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453,059 | 450,598 | ||||||
Other long term liabilities
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105,198 | 69,287 | ||||||
Total liabilities
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558,257 | 519,885 | ||||||
Stockholders' equity:
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Preferred stock, $0.001 par value, 30,000,000 shares authorized, no shares issued and outstanding as of September 30, 2012 and December 31, 2011.
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- | - | ||||||
Common stock $0.001 par value, 100,000,000 shares authorized, 1,932,425 and 1,752,175 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively.
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1,932 | 1,752 | ||||||
Additional paid-in capital
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2,124,496 | 1,741,744 | ||||||
Accumulated deficit
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(339,288 | ) | (531,891 | ) | ||||
Total stockholders' equity
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1,787,140 | 1,211,605 | ||||||
Total liabilities and stockholders’ equity
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$ | 2,345,397 | $ | 1,731,490 |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues
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$ | 1,215,511 | $ | 891,576 | $ | 3,120,544 | $ | 2,509,003 | ||||||||
Cost of services
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340,832 | 379,357 | 1,106,966 | 1,048,568 | ||||||||||||
Gross profit
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874,679 | 512,219 | 2,013,578 | 1,460,435 | ||||||||||||
Operating costs and expenses:
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General and administrative
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323,139 | 281,236 | 990,649 | 771,401 | ||||||||||||
Sales and marketing
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167,748 | 99,301 | 606,154 | 250,152 | ||||||||||||
Depreciation and amortization
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32,523 | 14,900 | 104,020 | 39,900 | ||||||||||||
Total operating costs and expenses
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523,410 | 395,437 | 1,700,823 | 1,061,453 | ||||||||||||
Net operating income
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351,269 | 116,782 | 312,755 | 398,982 | ||||||||||||
Other income (expense):
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Interest income (expense), net
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(678 | ) | 1,687 | 3,348 | 6,547 | |||||||||||
Total other income (expense)
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(678 | ) | 1,687 | 3,348 | 6,547 | |||||||||||
Net income before taxes
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350,591 | 118,469 | 316,103 | 405,529 | ||||||||||||
Income tax expense
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137,000 | 47,388 | 123,500 | 60,012 | ||||||||||||
Net income
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$ | 213,591 | $ | 71,081 | $ | 192,603 | $ | 345,517 | ||||||||
Income per share - basic
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$ | 0.11 | $ | 0.04 | $ | 0.10 | $ | 0.20 | ||||||||
Income per share - fully diluted
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$ | 0.11 | $ | 0.04 | $ | 0.10 | $ | 0.20 | ||||||||
Weighted average number of common shares outstanding - basic
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1,931,438 | 1,752,107 | 1,892,703 | 1,759,079 | ||||||||||||
Weighted average number of common shares outstanding - fully diluted
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2,001,266 | 1,763,970 | 1,956,262 | 1,767,667 |
Nine months ended
September 30,
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2012 | 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net income
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$ | 192,603 | $ | 345,517 | ||||
Adjustments to reconcile net income to net cash
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provided by operating activities:
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Depreciation and amortization
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104,020 | 39,900 | ||||||
Bad debt expense
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60,819 | 99,819 | ||||||
Deferred income taxes
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100,906 | 60,012 | ||||||
Stock-based expense
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327,858 | 69,505 | ||||||
Changes in operating assets and liabilities:
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Decrease (increase) in accounts receivable
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(264,785 | ) | (368,085 | ) | ||||
Decrease (increase) in deposits and prepaids
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51,900 | (84,552 | ) | |||||
Increase (decrease) in accounts payable
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(54,807 | ) | 82,287 | |||||
Increase (decrease) in accrued expenses
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(69,289 | ) | 55,713 | |||||
Increase (decrease) in deferred revenue
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(92,532 | ) | 35,080 | |||||
Net cash provided by operating activities
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356,693 | 335,196 | ||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(9,065 | ) | (42,941 | ) | ||||
Acquisition of intangible assets
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(281,000 | ) | (40,000 | ) | ||||
Net cash used in investing activities
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(290,065 | ) | (82,941 | ) | ||||
Cash flows from financing activities:
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Proceeds from exercise of stock options
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30,825 | - | ||||||
Repurchase of common stock
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- | (36,545 | ) | |||||
Payment of dividend
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(115,751 | ) | - | |||||
Advance from line of credit
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275,000 | - | ||||||
Repayment on line of credit
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(20,000 | ) | - | |||||
Net cash provided by (used in) financing activities
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170,074 | (36,545 | ) | |||||
Net change in cash
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236,702 | 215,710 | ||||||
Cash – beginning
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862,386 | 504,713 | ||||||
Cash – ending
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$ | 1,099,088 | $ | 720,423 | ||||
Supplemental disclosure for non-cash investing and financing activities:
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Cash paid for interest | $ | 9,126 | $ | 29 | ||||
Cash paid for income taxes | $ | 22,594 | $ | - | ||||
Non-cash activities:
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- | |||||||
Common stock issued for acquisition of customer list
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$ | 140,000 | $ | - |