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 March 6, 2014
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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: March 6, 2014
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Exhibit Number
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Description
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Press Release issued by the Company on March 6, 2014
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● |
Quarterly revenues increased 205% year-over-year reaching $3.6 million;
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● |
EBITDA increased 137% year-over-year to $0.7 million;
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● |
Non-GAAP net income increased 82% year-over-year, reaching $0.3 million; and
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Year-to-date revenues increased 105% year-over-year reaching $8.8 million;
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EBITDA increased 216% year-over-year reaching $2.2 million;
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Non-GAAP net income increased 126%, reaching $1.4 million; and
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Cash flow from operations increased 84% year-over-year reaching $1.4 million.
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Three Months Ended December 31,
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Year Ended December 31,
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2013
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2012
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2013
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2012
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Net income (loss):
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$ | (67,361 | ) | $ | 113,129 | $ | 628,577 | $ | 305,732 | |||||||
Adjustments:
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Depreciation and amortization
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282,966 | 34,329 | 494,179 | 138,349 | ||||||||||||
Interest expense, net
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363,869 | 3,479 | 515,648 | 401 | ||||||||||||
Income tax expense
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81,333 | 127,500 | 556,000 | 251,000 | ||||||||||||
EBITDA:
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$ | 660,807 | $ | 278,437 | $ | 2,194,404 | $ | 695,482 |
Three Months ended December 31,
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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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$ | (67,361 | ) | $ | (0.03 | ) | $ | 113,129 | $ | 0.05 | ||||||
Adjustments:
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Amortization of intangible assets (1)
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230,108 | 0.11 | 26,583 | 0.02 | ||||||||||||
Stock based compensation (2)
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60,268 | 0.03 | 88,017 | 0.04 | ||||||||||||
Integration and acquisition costs (3)
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49,916 | 0.03 | - | - | ||||||||||||
Non-cash interest expense (4)
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312,500 | 0.15 | - | - | ||||||||||||
Non-GAAP adjusted income before tax impact (5)
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585,431 | 0.29 | 227,729 | 0.11 | ||||||||||||
Tax impact of adjustments (6)
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(248,060 | ) | (0.13 | ) | (43,548 | ) | (0.02 | ) | ||||||||
Non-GAAP net income
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$ | 337,371 | $ | 0.16 | $ | 184,181 | $ | 0.09 |
Year ended December 31,
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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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$ | 628,577 | $ | 0.31 | $ | 305,732 | $ | 0.15 | ||||||||
Adjustments:
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Amortization of intangible assets (1)
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395,205 | 0.20 | 108,500 | 0.06 | ||||||||||||
Stock based compensation (2)
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282,707 | 0.14 | 415,875 | 0.21 | ||||||||||||
Integration and acquisition costs (3)
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162,698 | 0.08 | - | - | ||||||||||||
Non-cash interest expense (4)
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446,909 | 0.22 | - | - | ||||||||||||
Non-GAAP adjusted income before tax impact (5)
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1,916,096 | 0.95 | 830,107 | 0.42 | ||||||||||||
Tax impact of adjustments (6)
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(489,257 | ) | (0.24 | ) | (199,263 | ) | (0.10 | ) | ||||||||
Non-GAAP net income
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$ | 1,426,839 | $ | 0.71 | $ | 630,844 | $ | 0.32 |
December 31,
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2013
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2012
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 1,713,479 | $ | 1,250,643 | ||||
Accounts receivable (net of allowance for doubtful
accounts of $429,509 and $117,030, respectively)
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1,970,531 | 544,684 | ||||||
Deferred income tax asset – current
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25,843 | 49,000 | ||||||
Other current assets
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160,756 | 38,710 | ||||||
Total current assets
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3,870,609 | 1,883,037 | ||||||
Furniture, equipment and improvements, net
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297,577 | 55,611 | ||||||
Deferred income tax asset – noncurrent
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- | 159,000 | ||||||
Other long-term assets
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22,351 | 12,069 | ||||||
Goodwill
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1,056,873 | - | ||||||
Intangible assets (net of accumulated amortization of $582,871
and $187,666, respectively)
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4,013,129 | 431,529 | ||||||
Total assets
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$ | 9,260,539 | $ | 2,541,246 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 267,637 | $ | 62,886 | ||||
Accrued expenses
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1,255,282 | 37,347 | ||||||
Income taxes payable
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298,052 | 226,406 | ||||||
Deferred revenue
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1,053,401 | 112,906 | ||||||
Line of credit
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- | 150,000 | ||||||
Total current liabilities
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2,874,372 | 589,545 | ||||||
Note payable – related party (net of debt discount of $2,053,091 and $0, respectively)
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446,909 | - | ||||||
Deferred income tax liability
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1,650,460 | - | ||||||
Other long-term liabilities
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83,063 | 105,554 | ||||||
Total liabilities
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5,054,804 | 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 December 31, 2013 and 2012.
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- | - | ||||||
Common stock $0.001 par value, 100,000,000 shares authorized, 2,006,689 and 1,937,329 shares issued and outstanding as of December 31, 2013 and 2012, respectively.
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2,007 | 1,937 | ||||||
Additional paid-in capital
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3,977,661 | 2,070,369 | ||||||
Other accumulated comprehensive loss
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(59,065 | ) | - | |||||
Retained earnings (accumulated deficit)
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285,132 | (226,159 | ) | |||||
Total stockholders' equity
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4,205,735 | 1,846,147 | ||||||
Total liabilities and stockholders’ equity
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$ | 9,260,539 | $ | 2,541,246 |
For the Three Months Ended
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For the Year Ended
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December 31,
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December 31,
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 3,605,610 | $ | 1,185,022 | $ | 8,842,229 | $ | 4,305,566 | ||||||||
Cost of services
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1,038,648 | 394,192 | 2,577,891 | 1,501,158 | ||||||||||||
Gross profit
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2,566,962 | 790,830 | 6,264,338 | 2,804,408 | ||||||||||||
Operating costs and expenses:
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General and administrative
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1,075,035 | 318,517 | 2,481,560 | 1,309,166 | ||||||||||||
Sales and marketing
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831,120 | 193,606 | 1,588,374 | 799,760 | ||||||||||||
Depreciation and amortization
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282,966 | 34,329 | 494,179 | 138,349 | ||||||||||||
Total operating costs and expenses
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2,189,121 | 546,452 | 4,564,113 | 2,247,275 | ||||||||||||
Net operating income
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377,841 | 244,378 | 1,700,225 | 557,133 | ||||||||||||
Other income (expense):
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Interest expense, net | (363,869 | ) | (3,749 | ) | (515,648 | ) | (401 | ) | ||||||||
Total other expense
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(363,869 | ) | (3,749 | ) | (515,648 | ) | (401 | ) | ||||||||
Income before taxes
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13,972 | 240,629 | 1,184,577 | 556,732 | ||||||||||||
Income tax expense | (81,333 | ) | (127,500 | ) | (556,000 | ) | (251,000 | ) | ||||||||
Net income (loss)
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$ | (67,361 | ) | $ | 113,129 | $ | 628,577 | $ | 305,732 | |||||||
Income (loss) per share - basic
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$ | (0.03 | ) | $ | 0.06 | $ | 0.32 | $ | 0.16 | |||||||
Income (loss) per share - fully diluted
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$ | (0.03 | ) | $ | 0.05 | $ | 0.31 | $ | 0.15 |
For the Three Months Ended
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For the Year Ended
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December 31,
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December 31,
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December 31,
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December 31,
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|||||||||||||
2013 |
2012
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2013
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2012
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(unaudited)
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(unaudited)
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Net income (loss)
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$ | (67,361 | ) | $ | 113,129 | $ | 628,577 | $ | 305,732 | |||||||
Foreign currency translation adjustment | (19,818 | ) | - | (59,065 | ) | - | ||||||||||
Comprehensive income (loss)
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$ | (87,179 | ) | $ | 113,129 | $ | 569,512 | $ | 305,732 |
For the Years ended
December 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
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$ | 628,577 | $ | 305,732 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities:
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Bad debt expense
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203,136 | 65,327 | ||||||
Depreciation and amortization
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494,179 | 138,349 | ||||||
Deferred income taxes
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(276,847 | ) | (9,000 | ) | ||||
Non-cash interest expense
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446,909 | - | ||||||
Excess tax benefit from share based compensation
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- | (11,000 | ) | |||||
Stock-based compensation expense
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282,707 | 415,875 | ||||||
Changes in operating assets and liabilities:
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Decrease (increase) in accounts receivable
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(212,591 | ) | (248,820 | ) | ||||
Decrease (increase) in deposits and prepaids
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245,686 | 72,494 | ||||||
Increase (decrease) in accounts payable
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(89,329 | ) | (40,680 | ) | ||||
Increase (decrease) in deferred revenue
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(523,685 | ) | (64,802 | ) | ||||
Increase (decrease) in accrued expenses
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190,899 | 130,696 | ||||||
Net cash provided by operating activities
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1,389,641 | 754,171 | ||||||
Cash flows from investing activities
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Purchase of intangible assets
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- | (281,000 | ) | |||||
Purchase of acquired business, net of cash acquired
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(3,178,398 | ) | - | |||||
Purchase of furniture, equipment, and improvements
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(43,863 | ) | (18,849 | ) | ||||
Net cash used by investing activities
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(3,222,261 | ) | (299,849 | ) | ||||
Cash flows from financing activities
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Proceeds from exercise of stock options, net of income taxes
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124,655 | 43,525 | ||||||
Payment of dividend
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(117,286 | ) | (270,590 | ) | ||||
Borrowings on long term debt
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2,500,000 | - | ||||||
Excess tax benefit from share based compensation
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- | 11,000 | ||||||
Advance from line of credit
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500,000 | 275,000 | ||||||
Repayment on line of credit
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(650,000 | ) | (125,000 | ) | ||||
Net cash provided by (used in) financing activities
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2,357,369 | (66,065 | ) | |||||
Effect of exchange rates on cash
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(61,913 | ) | - | |||||
Net change in cash
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524,749 | 388,257 | ||||||
Cash – beginning
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1,250,643 | 862,386 | ||||||
Cash – ending
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$ | 1,713,479 | $ | 1,250,643 | ||||
Supplemental disclosures:
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Cash paid for interest
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$ | 77,024 | $ | 12,034 | ||||
Cash paid for income taxes
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$ | 699,491 | $ | 22,594 | ||||
Non-cash activities:
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Common stock issued for customer list
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$ | - | $ | 140,000 | ||||
Issuance of beneficial conversion feature to holder of note payable
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$ | 2,500,000 | $ | - |