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 May 6, 2013
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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
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Chief Executive Officer
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Date: May 6, 2013
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Exhibit Number
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Description
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Press Release issued by the Company on May 6, 2013
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●
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Revenue increased 77% to $1.4 million as compared to the first quarter of 2012
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●
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Gross profit increased 130% to $1.0 million as compared to the first quarter of 2012
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●
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Gross margins increased to 72%, compared to 55% in the first quarter of 2012
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●
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Operating profit increased to $367,538, compared to a loss of $(98,008) in the first quarter of 2012
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●
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Operating margins increased to 26%, compared to -12% in the first quarter of 2012
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●
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Non-GAAP net income increased 481% to 308,640 as compared to the first quarter of 2012
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●
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Non-GAAP diluted EPS increased 400% to $0.15 per share as compared to the first quarter of 2012
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●
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The Company's cash balance remained in excess of $1.2 million at March 31, 2013
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Three Months ended March 31, | ||||||||||||||||
2013
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2012
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|||||||||||||||
Amount
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Per diluted share
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Amount
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Per diluted share
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|||||||||||||
Net income (loss):
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$ | 215,538 | $ | 0.11 | $ | (56,936 | ) | $ | (0.03 | ) | ||||||
Adjustments:
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||||||||||||||||
Amortization of intangible assets (1)
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26,833 | 0.01 | 28,083 | 0.02 | ||||||||||||
Stock based compensation (2)
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66,269 | 0.03 | 81,910 | 0.04 | ||||||||||||
Non-GAAP net income
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$ | 308,640 | $ | 0.15 | $ | 53,057 | $ | 0.03 |
(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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March 31,
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December 31,
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|||||||
2013 | 2012 | |||||||
(unaudited)
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||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ |
1,257,862
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$ |
1,250,643
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||||
Accounts receivable, (net of allowance for doubtful accounts of $149,703 and $117,030, respectively)
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745,654
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544,684
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||||||
Deferred income tax asset – current
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49,000
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49,000
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||||||
Other current assets
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24,561
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38,710
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||||||
Total current assets
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2,077,077
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1,883,037
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||||||
Furniture, equipment and improvements, net
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75,093
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55,611
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Deferred income tax – noncurrent
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159,000
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159,000
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||||||
Intangible assets (net of accumulated amortization of $214,500 and $187,666, respectively)
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404,696
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431,529
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||||||
Other noncurrent assets
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12,069
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12,069
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Total assets
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$ |
2,727,935
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$ |
2,541,246
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ |
110,390
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$ |
62,886
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Accrued expenses
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99,148
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37,347
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||||||
Income taxes payable
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124,592
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226,406
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Deferred revenue
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90,688
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112,906
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Line of credit
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75,000
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150,000
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||||||
Total current liabilities
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499,818
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589,545
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Other long term liabilities
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100,099
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105,554
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Total liabilities
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599,917
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695,099
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Stockholders' equity:
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||||||||
Preferred stock, $0.001 par value, 30,000,000 shares authorized, no shares issued and outstanding as of March 31, 2013 and December 31, 2012.
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-
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-
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||||||
Common stock $.001 par value, 100,000,000 shares authorized, 1,947,259 and 1,937,329 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively.
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1,947 | 1,937 | ||||||
Additional paid-in capital
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2,136,692
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2,070,369
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||||||
Accumulated deficit
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(10,621
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) |
(226,159
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) | ||||
Total stockholders' equity
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2,128,018
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1,846,147
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||||||
Total liabilities and stockholders’ equity
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2,727,935
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2,541,246
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For the Three Months Ended
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||||||||
March 31
2013
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March 31,
2012
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|||||||
Revenues
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$ | 1,411,228 | $ | 796,594 | ||||
Cost of services
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398,890 | 356,694 | ||||||
Gross profit
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1,012,338 | 439,900 | ||||||
Operating costs and expenses:
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||||||||
General and administrative
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408,601 | 289,296 | ||||||
Sales and marketing expenses
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201,017 | 212,544 | ||||||
Depreciation and amortization
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34,935 | 36,068 | ||||||
Total operating costs and expenses
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644,553 | 537,908 | ||||||
Operating income (loss)
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367,785 | (98,008 | ) | |||||
Interest income (expense), net
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(247 | ) | 3,572 | |||||
Net income (loss) before taxes
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367,538 | (94,436 | ) | |||||
Income tax (expense) benefit
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(152,000 | ) | 37,500 | |||||
Net income (loss)
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$ | 215,538 | $ | (56,936 | ) | |||
Income (loss) per share – basic and fully diluted
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$ | 0.11 | $ | (0.03 | ) | |||
Weighted average number of common shares outstanding – basic
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1,942,635 | 1,819,098 | ||||||
Weighted average number of common shares outstanding – fully diluted
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2,013,749 | 1,819,098 |
Three months ended
March 31,
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||||||||
2013
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2012
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|||||||
Cash flows from operating activities:
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||||||||
Net income (loss)
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$ |
215,538
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$ |
(56,936
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) | |||
Adjustments to reconcile net (income) loss to net cash
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||||||||
provided by operating activities:
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||||||||
Depreciation and amortization
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34,935
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36,068
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||||||
Bad debt expense
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40,776
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8,201
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||||||
Deferred income taxes
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-
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(37,500
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) | |||||
Stock-based expense
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66,269
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81,910
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||||||
Changes in operating assets and liabilities:
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||||||||
Decrease (increase) in accounts receivable
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(241,746
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) |
(49,960
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) | ||||
Decrease (increase) in deposits and prepaids
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14,149
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36,285
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||||||
Increase (decrease) in accounts payable
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47,504
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2,847
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||||||
Increase (decrease) in accrued expenses
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(22,218
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) |
(98,088
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) | ||||
Increase (decrease) in deferred revenue
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(45,468
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) |
(30,976
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) | ||||
Net cash provided by (used in) used in operating activities
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109,739
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(108,149
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) | |||||
Cash flows from investing activities:
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||||||||
Purchase of property and equipment
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(27,584
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) |
(2,218
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) | ||||
Acquisition of intangible assets
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- |
(275,000
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) | |||||
Net cash used in investing activities
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(27,584
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) |
(277,218
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) | ||||
Cash flows from financing activities:
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||||||||
Proceeds from exercise of stock options
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64
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-
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||||||
Advance from line of credit
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- |
275,000
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||||||
Repayment of line of credit
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(75,000
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) |
-
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|||||
Net cash provided by (used in) financing activities
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(74,936
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) |
275,000
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Net change in cash
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7,219
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(110,367
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) | |||||
Cash – beginning
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1,250,643
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862,386
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||||||
Cash – ending
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1,257,862
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752,019
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Supplemental disclosure for non-cash investing and financing activities:
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Cash paid for interest
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1,779
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2,587
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Cash paid for income taxes
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253,814
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- | ||||||
Non-cash activities:
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||||||||
Common stock issued for acquisition of customer list
|
-
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140,000
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