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 14, 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: November 14, 2013
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Exhibit Number
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Description
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||
Press Release issued by the Company on November 14, 2013
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●
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Revenue increased 73% to $2.1 million from $1.2 million
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●
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Gross profit increased 69% to $1.5 million from $874,679
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●
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Gross margin remained above 70%, consistent with the prior year
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●
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Non-GAAP net income increased 64% to 493,838 from $300,429
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●
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Non-GAAP diluted EPS increased 47% to $0.22 per share from $0.15
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●
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GAAP net income was $117,344 as compared to $213,591 in the prior year
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●
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GAAP diluted EPS was $0.05 per share as compared to $0.11 per share in the prior year
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●
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The Company's cash balance increased 54% to $1.9 million at September 30, 2013 as compared to December 31, 2012
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●
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Revenue increased 68% to $5.2 million from $3.1 million
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●
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Gross profit increased 84% to $3.7 million from $2.0 million
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●
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Gross margin increased to 71% from 65%
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●
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Non-GAAP net income increased 121% to $1.3 million from $602,378
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●
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Non-GAAP diluted EPS increased 110% to $0.65 per share from $0.31
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●
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GAAP net income increased to $697,964 as compared to $192,603 in the prior year
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●
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GAAP diluted EPS increased to $0.34 per share as compared to $0.10 per share in the prior year
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Three Months ended September 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:
|
$ | 117,344 | $ | 0.05 | $ | 213,591 | $ | 0.11 | ||||||||
Adjustments:
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||||||||||||||||
Amortization of intangible assets (1)
|
113,930 | 0.05 | 25,583 | 0.02 | ||||||||||||
Stock based compensation (2)
|
66,345 | 0.03 | 61,255 | 0.03 | ||||||||||||
Integration and acquisition costs (3)
|
62,032 | 0.02 | - | - | ||||||||||||
Non-cash interest expense (4)
|
134,409 | 0.07 | - | - | ||||||||||||
Non-GAAP net income:
|
$ | 493,838 | $ | 0.22 | $ | 300,429 | $ | 0.15 |
Nine Months ended September 30,
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||||||||||||||||
2013
|
2012
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|||||||||||||||
Amount
|
Per diluted share
|
Amount
|
Per diluted share
|
|||||||||||||
Net income:
|
$ | 697,964 | $ | 0.34 | $ | 192,603 | $ | 0.10 | ||||||||
Adjustments:
|
||||||||||||||||
Amortization of intangible assets (1)
|
165,097 | 0.08 | 81,917 | 0.04 | ||||||||||||
Stock based compensation (2)
|
222,439 | 0.11 | 327,858 | 0.17 | ||||||||||||
Integration and acquisition costs (3)
|
112,783 | 0.05 | - | - | ||||||||||||
Non-cash interest expense (4)
|
134,409 | 0.07 | - | - | ||||||||||||
Non-GAAP net income:
|
$ | 1,332,692 | $ | 0.65 | $ | 602,378 | $ | 0.31 |
September 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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$
|
1,926,674
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$
|
1,250,643
|
||||
Accounts receivable, (net of allowance for doubtful accounts of $407,776 and $117,030, respectively)
|
1,688,385
|
544,684
|
||||||
Deferred income tax asset – current
|
264,000
|
49,000
|
||||||
Other current assets
|
577,775
|
38,710
|
||||||
Total current assets
|
4,456,834
|
1,883,037
|
||||||
Furniture, equipment and improvements, net
|
347,016
|
55,611
|
||||||
Deferred income tax – noncurrent
|
-
|
159,000
|
||||||
Intangible assets (net of accumulated amortization of $352,763 and $187,666, respectively)
|
4,243,237
|
388,334
|
||||||
Goodwill
|
1,502,887
|
43,195
|
||||||
Other noncurrent assets
|
22,351
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12,069
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||||||
Total assets
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$
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10,572,325
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$
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2,541,246
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||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
|
||||||||
Accounts payable
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$
|
444,876
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$
|
62,886
|
||||
Accrued expenses
|
1,794,168
|
263,753
|
||||||
Deferred revenue
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1,189,220
|
112,906
|
||||||
Line of credit
|
500,000
|
150,000
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||||||
Total current liabilities
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3,928,264
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589,545
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||||||
Note payable (net of debt discount of $2,365,591 and $0, respectively)
|
134,409
|
-
|
||||||
Deferred tax liability
|
2,201,150
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-
|
||||||
Other long term liabilities
|
147,800
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105,554
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||||||
Total liabilities
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6,411,623
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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 September 30, 2013 and December 31, 2012.
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-
|
-
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||||||
Common stock $0.001 par value, 100,000,000 shares authorized, 1,976,399 and 1,937,329 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively.
|
1,976
|
1,937
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||||||
Additional paid-in capital
|
3,843,454
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2,070,369
|
||||||
Other accumulated comprehensive loss
|
(39,247)
|
-
|
||||||
Retained Earnings (accumulated deficit)
|
354,519
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(226,159
|
)
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|||||
Total stockholders' equity
|
4,160,702
|
1,846,147
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||||||
Total liabilities and stockholders’ equity
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$
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10,572,325
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$
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2,541,246
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For the Three Months Ended
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For the Nine Months Ended
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|||||||||||||||
September 30,
2013
|
September 30,
2012
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September 30,
2013
|
September 30,
2012
|
|||||||||||||
Revenues
|
$
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2,102,831
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$
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1,215,511
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$
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5,238,244
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$
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3,120,544
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||||||||
Cost of services
|
627,532
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340,832
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1,539,244
|
1,106,966
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||||||||||||
Gross profit
|
1,475,299
|
874,679
|
3,699,000
|
2,013,578
|
||||||||||||
Operating costs and expenses:
|
||||||||||||||||
General and administrative
|
610,232
|
323,139
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1,405,498
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990,649
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||||||||||||
Sales and marketing
|
377,664
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167,748
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757,254
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606,154
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||||||||||||
Depreciation and amortization
|
143,689
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32,523
|
211,212
|
104,020
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||||||||||||
Total operating costs and expenses
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1,131,585
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523,410
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2,373,964
|
1,700,823
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||||||||||||
Operating income
|
343,714
|
351,269
|
1,325,036
|
312,755
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||||||||||||
Other income (expense):
|
||||||||||||||||
Interest income (expense), net
|
(154,076
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)
|
(678
|
)
|
(151,778
|
)
|
3,348
|
|||||||||
Total other income (expense)
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(154,076
|
)
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(678
|
)
|
(151,778
|
)
|
3,348
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|||||||||
Income before taxes
|
189,638
|
350,591
|
1,173,258
|
316,103
|
||||||||||||
Income tax expense
|
72,294
|
137,000
|
475,294
|
123,500
|
||||||||||||
Net Income
|
$
|
117,344
|
$
|
213,591
|
$
|
697,964
|
$
|
192,603
|
||||||||
Income per share - basic
|
$
|
0.06
|
$
|
0.11
|
$
|
0.36
|
$
|
0.10
|
||||||||
Income per share - fully diluted
|
$
|
0.05
|
$
|
0.11
|
$
|
0.34
|
$
|
0.10
|
||||||||
Weighted average number of common shares outstanding - basic
|
1,968,871
|
1,931,438
|
1,954,314
|
1,892,703
|
||||||||||||
Weighted average number of common shares outstanding - fully diluted
|
2,273,497
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2,001,266
|
2,056,995
|
1,956,262
|
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
2013
|
September 30,
2012
|
September 30,
2013
|
September 30,
2012
|
|||||||||||||
Net income
|
$
|
117,344
|
$
|
213,591
|
$
|
697,964
|
$
|
192,603
|
||||||||
Foreign currency translation adjustment
|
(39,247
|
)
|
-
|
(39,247
|
)
|
-
|
||||||||||
Comprehensive income
|
$
|
78,097
|
$
|
213,591
|
$
|
658,717
|
$
|
192,603
|
Nine months ended
September 30,
|
||||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
697,964
|
$
|
192,603
|
||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization
|
211,212
|
104,020
|
||||||
Bad debt expense
|
131,409
|
60,819
|
||||||
Deferred income taxes
|
7,326
|
100,906
|
||||||
Non-cash interest expense
|
134,409
|
-
|
||||||
Stock-based compensation expense
|
222,439
|
327,858
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Decrease (increase) in accounts receivable
|
130,098
|
(264,785
|
)
|
|||||
Decrease (increase) in deposits and prepaids
|
(172,189
|
)
|
51,900
|
|||||
Increase (decrease) in accounts payable
|
89,538
|
(54,807
|
)
|
|||||
Increase (decrease) in accrued expenses
|
74,982
|
(69,289
|
)
|
|||||
Increase (decrease) in deferred revenue
|
(376,466
|
)
|
(92,532
|
)
|
||||
Net cash provided by operating activities
|
1,150,722
|
356,693
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(40,444
|
)
|
(9,065
|
)
|
||||
Purchase of acquired business, net of cash acquired
|
(3,178,399
|
)
|
-
|
|||||
Acquisition of intangible assets
|
-
|
(281,000
|
)
|
|||||
Net cash used in investing activities
|
(3,218,843
|
)
|
(290,065
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
50,685
|
30,825
|
||||||
Payment of dividend
|
(117,286
|
)
|
(115,751
|
)
|
||||
Advances from line of credit (net)
|
350,000
|
255,000
|
||||||
Borrowings on long term debt
|
2,500,000
|
-
|
||||||
Net cash provided by financing activities
|
2,783,399
|
170,074
|
||||||
Effect of exchange rate changes on cash
|
(39,247
|
)
|
-
|
|||||
Net change in cash
|
715,278
|
236,702
|
||||||
Cash – beginning
|
1,250,643
|
862,386
|
||||||
Cash – ending
|
$
|
1,926,674
|
$
|
1,099,088
|
||||
Supplemental disclosure for non-cash investing and financing activities:
|
||||||||
Cash paid for interest
|
$
|
21,739
|
9,126
|
|||||
Cash paid for income taxes
|
$
|
446,564
|
$
|
22,594
|
||||
Non-cash activities:
|
||||||||
Common stock issued for acquisition of customer list
|
$
|
-
|
$
|
140,000
|
||||
Issuance of beneficial conversion feature to holder of note payable
|
$
|
2,500,000
|
$
|
-
|