Delaware
|
1-10185
|
26-1331503
|
||
(State or other jurisdiction
|
(Commission
|
(I.R.S. Employer
|
||
of incorporation)
|
File Number)
|
Identification No.)
|
Press Release issued by the Company on February 28, 2013.
|
Issuer Direct Corporation
|
|||
|
By:
|
/s/ Brian R. Balbirnie | |
Brian R. Balbirnie
|
|||
Chief Executive Officer
|
|||
Date: February 28, 2013 |
Exhibit Number
|
Description
|
|
Press Release issued by the Company on February 28, 2013.
|
●
|
Revenue increased 33% to $4.3 million
|
●
|
Gross profit increased 53% to $2.8 million
|
●
|
Gross margins increased to 65% compared to 57% in 2011
|
●
|
Operating profit increased 124% to $557,133
|
●
|
Operating margins increased to 13% compared to 8% in 2011
|
●
|
Non-GAAP net income increased 46% to $830,107
|
●
|
Non-GAAP diluted EPS increased 31% to $0.42
|
●
|
The Company's cash balance increased 45% to over $1.2 million for the full year ended December 31 2012
|
●
|
Revenue increased 65% to $1.2 million
|
●
|
Gross profit increased 111% to $790,830
|
●
|
Gross margins increased to 67%, compared to 52% in 2011
|
●
|
Operating profit increased to $244,378
|
●
|
Operating margins increased to 21%, compared to -21% in 2011
|
●
|
Non-GAAP net income increased 165% to 227,729
|
●
|
Non-GAAP diluted EPS increased 120% to $0.11
|
Year ended December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Amount
|
Per diluted share
|
Amount
|
Per diluted share
|
|||||||||||||
Net income:
|
$ | 305,732 | $ | 0.15 | $ | 239,276 | $ | 0.14 | ||||||||
Adjustments:
|
||||||||||||||||
Amortization of intangible assets (1)
|
108,500 | 0.06 | 24,000 | 0.01 | ||||||||||||
Stock based compensation (2)
|
415,875 | 0.21 | 101,144 | 0.06 | ||||||||||||
Former shareholder dispute (3)
|
- | - | 206,263 | 0.11 | ||||||||||||
Non-GAAP net income:
|
$ | 830,107 | $ | 0.42 | $ | 570,683 | $ | 0.32 |
Quarter ended December 31,
|
||||||||||||||||
2012
|
2011
|
|||||||||||||||
Amount
|
Per diluted share
|
Amount
|
Per diluted share
|
|||||||||||||
Net income:
|
$ | 113,129 | $ | 0.05 | $ | (106,241 | ) | $ | (.06 | ) | ||||||
Adjustments:
|
||||||||||||||||
Amortization of intangible assets (1)
|
26,583 | 0.02 | 6,833 | - | ||||||||||||
Stock based compensation (2)
|
88,017 | 0.04 | 31,639 | 0.02 | ||||||||||||
Former shareholder dispute (3)
|
- | - | 153,766 | 0.09 | ||||||||||||
Non-GAAP net income:
|
$ | 227,729 | $ | 0.11 | $ | 85,997 | $ | 0.05 |
(1)
|
The adjustments represent the amortization of intangible assets related to acquired companies.
|
(2)
|
The adjustments represent stock-based compensation expense recognized related to awards of stock options or common stock in exchange for services.
|
(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 8 of our financial statements in our Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2012. The dispute has been fully resolved and there have been no expenses incurred related to this dispute during the three-month period or year ended December 31, 2012.
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 1,250,643 | $ | 862,386 | ||||
Accounts receivable (net of allowance for doubtful
accounts of $117,030 and $125,987, respectively)
|
544,684 | 361,191 | ||||||
Deferred project costs
|
- | 76,106 | ||||||
Deferred income tax asset – current
|
49,000 | 135,000 | ||||||
Other current assets
|
38,710 | 35,093 | ||||||
Total current assets
|
1,883,037 | 1,469,776 | ||||||
Furniture, equipment and improvements, net
|
55,611 | 66,611 | ||||||
Deferred income tax asset – noncurrent
|
159,000 | 64,000 | ||||||
Other long-term assets
|
12,069 | 22,074 | ||||||
Intangible assets (net of accumulated amortization of $187,666
and $79,166, respectively)
|
431,529 | 109,029 | ||||||
Total assets
|
$ | 2,541,246 | $ | 1,731,490 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 62,886 | $ | 103,566 | ||||
Accrued expenses
|
37,347 | 39,324 | ||||||
Income taxes payable
|
226,406 | |||||||
Accrued litigation
|
- | 130,000 | ||||||
Deferred revenue
|
112,906 | 177,708 | ||||||
Line of credit
|
150,000 | - | ||||||
Total current liabilities
|
589,545 | 450,598 | ||||||
Other long-term liabilities
|
105,554 | 69,287 | ||||||
Total liabilities
|
695,099 | 519,885 | ||||||
Stockholders' equity:
|
||||||||
Preferred stock, $0.001 par value, 30,000,000 shares authorized, no shares issued and outstanding as of December 31, 2012 and 2011.
|
- | - | ||||||
Common stock $0.001 par value, 100,000,000 shares authorized, 1,937,329 and 1,752,175 shares issued and outstanding as of December 31, 2012 and 2011, respectively
|
1,937 | 1,752 | ||||||
Additional paid-in capital
|
2,070,369 | 1,741,744 | ||||||
Accumulated deficit
|
(226,159 | ) | (531,891 | ) | ||||
Total stockholders' equity
|
1,846,147 | 1,211,605 | ||||||
Total liabilities and stockholders’ equity
|
$ | 2,541,246 | $ | 1,731,490 |
For the Three Months Ended | For the Year Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues
|
$ | 1,185,022 | $ | 719,096 | $ | 4,305,566 | $ | 3,228,099 | ||||||||
Cost of services
|
394,192 | 343,399 | 1,501,158 | 1,391,967 | ||||||||||||
Gross profit
|
790,830 | 375,697 | 2,804,408 | 1,836,132 | ||||||||||||
Operating costs and expenses:
|
||||||||||||||||
General and administrative
|
318,517 | 193,758 | 1,309,166 | 965,159 | ||||||||||||
Sales and marketing
|
193,606 | 163,986 | 799,760 | 361,641 | ||||||||||||
Litigation
|
- | 153,766 | - | 206,263 | ||||||||||||
Depreciation and amortization
|
34,329 | 14,804 | 138,349 | 54,704 | ||||||||||||
Total operating costs and expenses
|
546,452 | 526,314 | 2,247,275 | 1,587,767 | ||||||||||||
Net operating income
|
244,378 | (150,617 | ) | 557,133 | 248,365 | |||||||||||
Other income (expense):
|
||||||||||||||||
Interest income (expense), net
|
(3,749 | ) | 6,164 | (401 | ) | 12,711 | ||||||||||
Total other income (expense)
|
(3,749 | ) | 6,164 | (401 | ) | 12,711 | ||||||||||
Net income before taxes
|
240,629 | (144,453 | ) | 556,732 | 261,076 | |||||||||||
Income tax expense
|
(127,500 | ) | 38,212 | (251,000 | ) | (21,800 | ) | |||||||||
Net income
|
$ | 113,129 | $ | (106,241 | ) | $ | 305,732 | $ | 239,276 | |||||||
Income per share - basic
|
$ | 0.06 | $ | (0.06 | ) | $ | 0.16 | $ | 0.14 | |||||||
Income per share - fully diluted
|
$ | 0.05 | $ | (0.06 | ) | $ | 0.15 | $ | 0.14 |
For the Years ended
December 31,
|
||||||||
2012
|
2011
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 305,732 | $ | 239,276 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities:
|
||||||||
Bad debt expense
|
65,327 | 121,949 | ||||||
Depreciation and amortization
|
138,349 | 54,704 | ||||||
Deferred income taxes
|
(9,000 | ) | 21,800 | |||||
Excess tax benefit from share based compensation
|
(11,000 | ) | - | |||||
Stock-based expenses
|
415,875 | 101,144 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Decrease (increase) in accounts receivable
|
(248,820 | ) | (307,804 | ) | ||||
Decrease (increase) in deferred project costs and other assets
|
72,494 | (101,116 | ) | |||||
Increase (decrease) in accounts payable
|
(40,680 | ) | 37,996 | |||||
Increase (decrease) in deferred revenue
|
(64,802 | ) | 126,326 | |||||
Increase (decrease) in accrued expenses
|
130,696 | 183,883 | ||||||
Net cash provided by operating activities
|
754,171 | 478,158 | ||||||
Cash flows from investing activities
|
||||||||
Purchase of intangible assets
|
(281,000 | ) | (40,000 | ) | ||||
Purchase of furniture, equipment, and improvements
|
(18,849 | ) | (43,940 | ) | ||||
Net cash used by investing activities
|
(299,849 | ) | (83,940 | ) | ||||
Cash flows from financing activities
|
||||||||
Repurchase of common stock
|
- | (36,545 | ) | |||||
Proceeds from exercise of stock options, net of taxes
|
43,525 | - | ||||||
Payment of dividend
|
(270,590 | ) | - | |||||
Excess tax benefit from share based compensation
|
11,000 | - | ||||||
Advance from line of credit
|
275,000 | - | ||||||
Repayment on line of credit
|
(125,000 | ) | - | |||||
Net cash used by financing activities
|
(66,065 | ) | (36,545 | ) | ||||
Net change in cash
|
388,257 | 357,673 | ||||||
Cash – beginning
|
862,386 | 504,713 | ||||||
Cash – ending
|
$ | 1,250,643 | $ | 862,386 | ||||
Supplemental disclosures:
|
||||||||
Cash paid for interest
|
$ | 12,034 | $ | 28 | ||||
Cash paid for income taxes
|
$ | 22,594 | $ | — |