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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Title of each class
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Trading Symbol(s)
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Name of each exchange on which
registered
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Common Stock, par value $0.001
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ISDR
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NYSE American
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Exhibit
No.
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Description
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Press Release
issued by the Company on April 30, 2020.
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Issuer
Direct Corporation
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Date: April 30,
2020
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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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Exhibit
No.
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Description
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Press Release
issued by the Company on April 30, 2020.
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Three Months
ended March 31,
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2020
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2019
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Amount
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Amount
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Net
income:
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$226
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$205
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Adjustments:
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Depreciation and
amortization
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374
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412
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Interest expense
(income)
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(58)
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(72)
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Income tax
expense
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80
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13
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EBITDA:
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$622
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$558
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Three Months
ended March 31,
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2020
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2019
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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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$226
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$0.06
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$205
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$0.05
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Adjustments:
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Amortization of
intangible assets (1)
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172
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0.04
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191
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0.05
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Stock-based
compensation (2)
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45
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0.01
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137
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0.03
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Integration and
acquisition costs (3)
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—
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—
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112
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0.03
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Tax impact of
adjustments (4)
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(46)
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(0.01)
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(92)
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(0.02)
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Impact of discrete
items impacting income tax expense (5)
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—
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—
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(35)
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(0.01)
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Non-GAAP net
income:
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$397
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$0.10
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$518
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$0.13
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March 31,
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December 31,
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2020
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2019
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ASSETS
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(unaudited)
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Current
assets:
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Cash
and cash equivalents
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$16,197
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$15,766
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Accounts
receivable (net of allowance for doubtful accounts of $534 and
$700, respectively)
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2,172
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2,051
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Income
tax receivable
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—
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48
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Other
current assets
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241
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141
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Total
current assets
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18,610
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18,006
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Capitalized
software (net of accumulated amortization of $2,323 and $2,153,
respectively)
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964
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1,134
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Fixed
assets (net of accumulated amortization of $213 and $181,
respectively)
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867
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899
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Right-of-use asset
– leases
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2,053
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2,127
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Deferred tax
asset
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294
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256
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Other
long-term assets
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67
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77
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Goodwill
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6,376
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6,376
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Intangible
assets (net of accumulated amortization of $5,109 and $4,937,
respectively)
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3,343
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3,515
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Total assets
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$32,574
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$32,390
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current
liabilities:
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Accounts
payable
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$383
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$266
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Accrued
expenses
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1,060
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1,151
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Note payable
– short-term (net of discount of $13 and $19,
respectively)
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307
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301
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Income
taxes payable
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374
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310
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Deferred
revenue
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1,879
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1,812
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Total
current liabilities
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4,003
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3,840
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Deferred
income tax liability
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137
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141
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Lease liabilities
– long-term
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2,226
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2,309
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Total liabilities
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6,366
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6,290
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Commitments
and contingencies
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Stockholders'
equity:
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Preferred
stock, $0.001 par value, 1,000,000 shares authorized, no shares
issued and outstanding as of March 31, 2020 and December 31, 2019,
respectively.
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—
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—
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Common stock $0.001 par value,
20,000,000 shares authorized, 3,772,700 and 3,786,398 shares issued and outstanding as
of March 31, 2020 and December 31, 2019,
respectively.
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4
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4
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Additional
paid-in capital
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22,117
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22,275
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Other
accumulated comprehensive income (loss)
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24
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(16)
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Retained
earnings
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4,063
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3,837
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Total stockholders' equity
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26,208
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26,100
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Total liabilities and stockholders’ equity
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$32,574
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$32,390
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For the Three
Months Ended
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March
31,
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March
31,
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2020
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2019
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Revenues
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$4,016
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$4,179
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Cost of
revenues
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1,253
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1,302
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Gross
profit
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2,763
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2,877
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Operating costs and
expenses:
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General and
administrative
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1,216
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1,361
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Sales and marketing
expenses
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896
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820
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Product
development
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194
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337
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Depreciation and
amortization
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209
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212
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Total operating
costs and expenses
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2,515
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2,730
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Operating
income
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248
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147
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Interest income,
net
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58
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71
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Income before
income taxes
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306
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218
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Income tax
expense
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80
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13
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Net
income
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$226
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$205
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Income per share
– basic
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$0.06
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$0.05
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Income per share
– fully diluted
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$0.06
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$0.05
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Weighted average
number of common shares outstanding – basic
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3,788
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3,850
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Weighted average
number of common shares outstanding – fully
diluted
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3,824
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3,869
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For the Three Months Ended
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March 31,
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March 31,
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2020
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2019
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Cash flows from operating activities:
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Net
income
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$226
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$205
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Adjustments
to reconcile net income to net cash provided by operating
activities:
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Depreciation
and amortization
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374
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412
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Bad
debt expense
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93
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224
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Deferred
income taxes
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(42)
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6
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Non-cash
interest expense
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6
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7
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Stock-based
compensation expense
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45
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137
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Changes
in operating assets and liabilities:
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Decrease
(increase) in accounts receivable
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(219)
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(869)
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Decrease
(increase) in other assets
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32
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(273)
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Increase
(decrease) in accounts payable
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118
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254
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Increase
(decrease) in accrued expenses
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(105)
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218
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Increase
(decrease) in deferred revenue
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74
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215
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Net
cash provided by operating activities
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602
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536
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Cash flows from investing activities:
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Purchase
of VisualWebcaster Platform
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—
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(2,788)
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Purchase
of fixed assets
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—
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(6)
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Net
cash used in investing activities
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—
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(2,794)
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Cash flows from financing activities:
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Payment
for stock repurchase and retirement
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(203)
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—
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Net
cash used in financing activities
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(203)
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—
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Net
change in cash
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399
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(2,258)
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Cash
– beginning
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15,766
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17,222
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Currency
translation adjustment
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32
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(3)
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Cash
– ending
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$16,197
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$14,961
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Supplemental disclosures:
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Cash
paid for income taxes
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$10
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$37
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Non-cash activities:
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Right-of-use
assets obtained in exchange for lease liabilities
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$—
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$260
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