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 August 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: August 6, 2013
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Exhibit Number
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Description
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Press Release issued by the Company on August 6, 2013
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●
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Revenue increased 56% to $1.7 million as compared to $1.1 million in the second quarter of 2012
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●
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Gross profit increased 73% to $1.2 million as compared to $699,000 in the second quarter of 2012
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Gross margins increased to 70%, compared to 63% in the second quarter of 2012
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Operating profit increased 931% to $613,136, compared to the second quarter of 2012
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Non-GAAP net income increased 93% to 478,838, or $0.23 per share, as compared to the second quarter of 2012
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●
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The Company's cash balance increased 20% to $1.5 million at June 30, 2013 as compared to December 31, 2012
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Three Months ended June 30,
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2013
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2012
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Amount
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Per diluted share
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Amount
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Per diluted share
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Net income:
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$ | 364,681 | $ | 0.18 | $ | 35,949 | $ | 0.02 | ||||||||
Adjustments:
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Amortization of intangible assets (1)
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24,333 | 0.01 | 28,250 | 0.01 | ||||||||||||
Stock based compensation (2)
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89,824 | 0.04 | 184,597 | 0.09 | ||||||||||||
Non-GAAP net income:
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$ | 478,838 | $ | 0.23 | $ | 248,796 | $ | 0.12 |
Six Months ended June 30,
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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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$ | 580,219 | $ | 0.28 | $ | (20,987 | ) | $ | (0.01 | ) | ||||||
Adjustments:
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Amortization of intangible assets (1)
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51,167 | 0.03 | 56,333 | 0.03 | ||||||||||||
Stock based compensation (2)
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156,093 | 0.08 | 266,693 | 0.14 | ||||||||||||
Non-GAAP net income:
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$ | 787,479 | $ | 0.39 | $ | 302,039 | $ | 0.16 |
(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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June 30,
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December 31,
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2013
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2012
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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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$ | 1,500,155 | $ | 1,250,643 | ||||
Accounts receivable, (net of allowance for doubtful accounts of $159,096 and $117,030, respectively)
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833,735 | 544,684 | ||||||
Deferred income tax asset – current
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49,000 | 49,000 | ||||||
Other current assets
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63,304 | 38,710 | ||||||
Total current assets
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2,446,194 | 1,883,037 | ||||||
Furniture, equipment and improvements, net
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69,183 | 55,611 | ||||||
Deferred income tax – noncurrent
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159,000 | 159,000 | ||||||
Intangible assets (net of accumulated amortization of $238,833 and $187,666, respectively)
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380,362 | 431,529 | ||||||
Other noncurrent assets
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12,069 | 12,069 | ||||||
Total assets
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$ | 3,066,808 | $ | 2,541,246 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 95,974 | $ | 62,886 | ||||
Accrued expenses
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40,591 | 37,347 | ||||||
Income taxes payable
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247,092 | 226,406 | ||||||
Deferred revenue
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64,400 | 112,906 | ||||||
Line of credit
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- | 150,000 | ||||||
Total current liabilities
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448,057 | 589,545 | ||||||
Other long term liabilities
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94,646 | 105,554 | ||||||
Total liabilities
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542,703 | 695,099 | ||||||
Stockholders' equity:
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Preferred stock, $0.001 par value, 30,000,000 shares authorized, no shares issued and outstanding as of June 30, 2013 and December 31, 2012.
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- | - | ||||||
Common stock $.001 par value, 100,000,000 shares authorized, 1,952,259 and 1,937,329 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively. | ||||||||
Additional paid-in capital
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2,226,511 | 2,070,369 | ||||||
Retained earnings (accumulated deficit)
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295,642 | (226,159 | ) | |||||
Total stockholders' equity
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2,524,105 | 1,846,147 | ||||||
Total liabilities and stockholders’ equity
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$ | 3,066,808 | $ | 2,541,246 |
For the Three Months Ended
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For the Six Months Ended
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June 30, | June 30, | June 30, | June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 1,723,785 | $ | 1,108,439 | $ | 3,135,013 | $ | 1,905,034 | ||||||||
Cost of services
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512,822 | 409,441 | 911,712 | 766,135 | ||||||||||||
Gross profit
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1,210,963 | 698,998 | 2,223,301 | 1,138,899 | ||||||||||||
Operating costs and expenses:
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General and administrative
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386,666 | 378,732 | 795,268 | 668,005 | ||||||||||||
Sales and marketing
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178,573 | 225,378 | 379,590 | 437,911 | ||||||||||||
Depreciation and amortization
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32,588 | 35,429 | 67,523 | 71,497 | ||||||||||||
Total operating costs and expenses
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597,827 | 639,539 | 1,242,381 | 1,177,413 | ||||||||||||
Net operating income (loss)
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613,136 | 59,459 | 980,920 | (38,514 | ) | |||||||||||
Other income (expense):
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Interest income (expense), net
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2,545 | 490 | 2,299 | 4,027 | ||||||||||||
Total other income (expense)
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2,545 | 490 | 2,299 | 4,027 | ||||||||||||
Net income (loss) before taxes
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615,681 | 59,949 | 983,219 | (34,487 | ) | |||||||||||
Income tax (expense) benefit
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(251,000 | ) | (24,000 | ) | (403,000 | ) | 13,500 | |||||||||
Net income (loss)
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$ | 364,681 | $ | 35,949 | $ | 580,219 | $ | (20,987 | ) | |||||||
Income (loss) per share - basic
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$ | 0.19 | $ | 0.02 | $ | 0.30 | $ | (0.01 | ) | |||||||
Income (loss) per share - fully diluted
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$ | 0.18 | $ | 0.02 | $ | 0.28 | $ | (0.01 | ) | |||||||
Weighted average number of common shares outstanding - basic
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1,950,092 | 1,925,618 | 1,946,367 | 1,872,358 | ||||||||||||
Weighted average number of common shares outstanding - fully diluted
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2,061,718 | 2,073,868 | 2,043,926 | 1,872,358 |
Six months ended
June 30,
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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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$ | 580,219 | $ | (20,987 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
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Depreciation and amortization
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67,523 | 71,497 | ||||||
Bad debt expense
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81,755 | 45,150 | ||||||
Deferred income taxes
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- | (36,094 | ) | |||||
Stock-based expense
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156,093 | 266,603 | ||||||
Changes in operating assets and liabilities:
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Decrease (increase) in accounts receivable
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(370,806 | ) | (126,347 | ) | ||||
Decrease (increase) in deposits and prepaids
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(24,594 | ) | 60,772 | |||||
Increase (decrease) in accounts payable
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33,088 | (20,261 | ) | |||||
Increase (decrease) in accrued expenses
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13,022 | (112,175 | ) | |||||
Increase (decrease) in deferred revenue
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(48,506 | ) | (126,637 | ) | ||||
Net cash provided by used in operating activities
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487,794 | 1,521 | ||||||
Cash flows from investing activities:
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Purchase of property and equipment
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(29,928 | ) | (4,138 | ) | ||||
Acquisition of intangible assets
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- | (280,000 | ) | |||||
Net cash used in investing activities
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(29,928 | ) | (284,138 | ) | ||||
Cash flows from financing activities:
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Proceeds from exercise of stock options
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64 | 26,375 | ||||||
Payment of dividend
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(58,418 | ) | (57,853 | ) | ||||
Advance on line of credit
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- | 275,000 | ||||||
Repayment of line of credit
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(150,000 | ) | (10,000 | ) | ||||
Net cash provided by (used in) financing activities
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(208,354 | ) | 233,522 | |||||
Net change in cash
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249,512 | (49,095 | ) | |||||
Cash – beginning
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1,250,643 | 862,386 | ||||||
Cash – ending
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$ | 1,500,155 | $ | 813,291 | ||||
Supplemental disclosure for non-cash investing and financing activities: | ||||||||
Cash paid for interest
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$ | 2,364 | $ | 5,923 | ||||
Cash paid for income taxes
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$ | 382,314 | $ | 22,594 | ||||
Non-cash activities:
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Common stock issued for acquisition of customer list
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$ | - | $ | 140,000 | ||||
Common stock issued for services
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$ | 31,150 | $ | - |