MikeDDKing
13 years ago
Issuer Direct Reports Third-Quarter Fiscal Year 2010 Results
2010 Third Quarter Revenue Increased by 24% Compared to Same Period 2009
On Monday November 8, 2010, 9:15 am EST
MORRISVILLE, N.C., Nov. 8, 2010 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR - News), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today reported financial results for the third quarter ended September 30, 2010. Additionally, the company anticipates filing its quarterly report including its financials in eXtensible Business Reporting Language (XBRL) with the Securities and Exchange Commission before market close today.
Highlights for the Third Quarter:
* Increased revenue by 24% as compared to the same period of fiscal 2009.
* Non-GAAP net income was positive for the quarter.
* Transfer Agent business segment increased by 447% as compared to the same period of fiscal 2009.
* More than tripled cash reserves for the period ended September 30, 2010 as compared to December 31, 2009.
* Expanded Corporate Headquarters during the quarter to a new 16,079 square foot facility in North Carolina.
Financial Results
In the third quarter of fiscal 2010, Issuer Direct achieved revenues of $403,991, compared to $326,433 in the third quarter of fiscal 2009, representing a growth of 24% in revenue for the period. Revenue for the nine months ended September 30, 2010 increased 115% to $3,368,722 as compared to $1,564,777 in the same period of 2009. The increase in revenue during the third quarter of 2010 as compared to the same period in 2009 is primarily due to the continued growth of the Company's transfer agent business, which increased by 447% as compared to the same period in 2009. Gross profit for the quarter ended September 30, 2010 was $212,933 as compared to $180,942 in the same period of 2009.
The Company reported a net loss for the quarter ended September 30, 2010 of $40,772 or $0.00 per share, as compared to a net loss of $9,958, or $0.00 per share in the same period of 2009. The Company reported net income for the nine months ended September 30, 2010 of $222,735, or $0.01 per share, as compared to $350,236, or $0.02 per share, in the same period of 2009.
"While we are pleased with the third quarter's increase in revenue, we are equally happy that this quarter represents our tenth quarter of year over year growth since the beginning of 2008," stated Brian Balbirnie, Chief Executive Officer of Issuer Direct. Mr. Balbirnie went on to say, "We are beginning to see an upturn in activity in our financial reporting segment due to the interest in XBRL for both Issuers and Funds, and as the deadline nears we should see substantial increases in top line revenues and segment margin improvement because of this regulatory deadline."
During the quarter ended September 30, 2010, the Company successfully completed the relocation to their new corporate headquarters at 500 Perimeter Park, Suite D, Morrisville, NC. The new corporate office is over 16,000 square feet, and will be sufficient to handle the next phase of the Company's growth. Coincident to the relocation and over the past thirty days, the company has added ten employees to its sales group and transfer agent business segment, bringing the total headcount to 25.
Non-GAAP Results
The Company reported non-GAAP net income during the quarter ended September 30, 2010 of $10,321, or $0.00 per share, as compared to non-GAAP net income of $6,875, or $0.00 per share, as compared to the same period of 2009. The Company reported non-GAAP net income during the nine months ended September 30, 2010 of $366,673, or $0.02 per share, as compared to non-GAAP net income of $380,736, or $0.02 per share, during the same period of 2009. Please refer to the attached reconciliations of non-GAAP financial measures referred to in this release to the most directly comparable GAAP measures.
Non-GAAP Information
Certain non-GAAP financial measures are included in this press release. In the calculation of these measures, the Company generally excludes certain items such as amortization and impairment of acquired intangibles, non-cash stock-based compensation charges, and unusual, non-recurring gains and charges. The Company believes that excluding such items provides investors and management with a representation of the Company's core operating performance and with information useful in assessing its prospects for the future and underlying trends in the Company's operating expenditures and continuing operations. Management uses such non-GAAP measures to evaluate financial results and manage operations. The release and the attachments to this release provide a reconciliation of each of the non-GAAP measures referred to in this release to the most directly comparable GAAP measure. The non-GAAP financial measures are not meant to be considered a substitute for the corresponding GAAP financial measures.
About Issuer Direct Corporation:
Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company, Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.
The Issuer Direct logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4547
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2009, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at http://www.sec.gov.
ISSUER DIRECT CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2010 2009
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 495,325 $ 146,043
Accounts receivable, (net of allowance for doubtful accounts of
$50,053 and $16,785, respectively) 138,966 152,069
Other current assets 26,003 25,443
Total current assets 660,294 323,555
Furniture, equipment and improvements (net of accumulated
depreciation of $28,739 and $18,316, respectively) 54,039 21,087
Intangible assets (net of accumulated amortization of $50,333
and $67,833, respectively) 97,863 120,363
Other noncurrent assets 15,576 --
Total assets $ 827,772 $ 465,005
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 84,180 $ 51,715
Accrued expenses 38,464 59,810
Notes payable -- related party -- 73,525
Total current liabilities 122,644 185,050
Other long term liabilities 1,918 --
Total liabilities 124,562 185,050
Stockholders' equity:
Preferred stock, $1.00 par value, 10,000,000 shares authorized --
Series A, 60 shares designated, 31 and 5 shares issued and
outstanding as of September 30, 2010 and December 31,
2009, respectively; Series B, 476,200 shares designated, no
shares issued and outstanding. 31 5
Common stock $.001 par value, 100,000,000 shares authorized, 17,635 16,826
17,635,312 and 16,826,342 shares issued and outstanding as
of September 30, 2010 and December 31, 2009, respectively.
Additional paid-in capital 1,663,382 1,463,697
Accumulated deficit (977,838) (1,200,573)
Total stockholders' equity 703,210 279,955
Total liabilities and stockholders' equity $ 827,772 $ 465,005
ISSUER DIRECT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended For the Nine Months Ended
September 30 September 30 September 30 September 30
2010 2009 2010 2009
Revenues $ 403,991 $ 326,433 $ 3,368,722 $ 1,564,777
Cost of services 191,058 145,491 2,303,414 630,532
Gross profit 212,933 180,942 1,065,308 934,245
Operating costs and expenses
General and administrative 180,961 130,069 546,940 370,198
Sales and marketing expenses 73,842 52,609 241,353 184,990
Impairment charges 4,000 -- 4,000 --
Depreciation and amortization 7,344 9,304 28,924 28,568
Total operating costs and expenses 266,147 191,982 821,217 583,756
Net operating income (loss) (53,214) (11,040) 244,091 350,489
Other income (expense):
Interest income (expense), net 12,442 1,082 (21,356) (253)
Total other income (expense) 12,442 1,082 (21,356) (253)
Net income (loss) $ (40,772) $ (9,958) $ 222,735 $ 350,236
Income (loss) per share - basic $ (0.00) $ (0.00) $ 0.01 $ 0.02
Income (loss) per share - fully diluted $ (0.00) $ (0.00) $ 0.01 $ 0.02
Weighted average number of common
shares outstanding - basic 17,592,921 16,854,717 17,312,241 17,075,999
Weighted average number of common
shares outstanding - fully diluted 17,592,921 16,854,717 17,499,932 17,124,873
ISSUER DIRECT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine months ended
September 30,
2010 2009
Cash flows from operating activities:
Net income $ 222,735 $ 350,236
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 28,924 28,568
Bad debt expense 44,061 29,680
Impairment charges 4,000 --
Non-cash interest expense 34,178 --
Stock-based expense 78,898 10,000
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (30,958) (23,371)
Decrease (increase) in deposits and prepaids (16,136) (14,557)
Increase (decrease) in accounts payable 32,465 (92,596)
Increase (decrease) in accrued expenses (5,509) (37,910)
Net cash provided by operating activities 392,658 250,050
Cash flows from investing activities:
Purchase of property and equipment (43,376) (13,142)
Net cash used in investing activities (43,376) (13,142)
Cash flows from financing activities:
Repurchase of common stock -- (6,750)
Repayments of notes payable -- (64,828)
Net cash used in financing activities -- (71,578)
Net change in cash 349,282 165,330
Cash -- beginning 146,043 50,367
Cash -- ending $ 495,325 $ 215,697
Supplemental disclosure for non-cash investing and financing
activities:
Cash paid for interest $ 518 $ 1,192
Cash paid for income taxes $ -- $ --
Non-cash activities:
Accrued expenses settled by issuance of shares $ -- $ 25,000
Related party notes payable and accrued interest converted
to common shares $ 59,666 $ --
Related party notes payable and accrued interest converted
to preferred shares $ 27,780 $ --
ISSUER DIRECT CORPORATION
RECONCILATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
Three Months Ended September 30,
2010 2009
Amount Per
diluted
share Amount Per
diluted
share
Net loss $ (40,772) $ (0.00) $ (9,958) $ (0.00)
Adjustments:
Amortization of intangible assets and impairment charges (1) 8,833 0.00 6,833 0.00
Stock based compensation (2) 33,898 0.00 10,000 0.00
Moving expenses (3) 8,362 0.00 -- --
Non-GAAP net income $10,321 $0.00 $6,875 $0.00
Nine Months Ended September 30,
2010 2009
Amount Per
diluted
share Amount Per
diluted
share
Net income $ 222,735 $ 0.01 $ 350,236 $ 0.02
Adjustments:
Amortization of intangible assets and impairment charges (1) 22,500 0.00 20,500 0.00
Stock based compensation (2) 78,898 0.00 10,000 0.00
Moving expenses (3) 8,362 0.00 -- --
Non-cash interest expense (4) 34,178 0.00 -- --
Non-GAAP net income $ 366,673 $ 0.02 $ 380,736 $ 0.02
(1) The adjustments represent the amortization and impairment of intangible assets related to acquired companies.
(2) The adjustments represent stock-based compensation expense recognized related to awards of stock options or common stock in
exchange for services.
(3) The adjustments represent moving expenses incurred related to the relocation to our new headquarters in September 2010.
(4) The adjustments represent non-cash interest expense incurred upon the conversion of notes payable into shares of the company
for the value of the shares received in excess of the carrying value of the notes payable and accrued interest.
Contact:
Issuer Direct Corporation
Brian R. Balbirnie
919-481-4000
brian.balbirnie@issuerdirect.com
MikeDDKing
14 years ago
Issuer Direct Reports Results for the First Quarter of 2010
globenewswire
On Tuesday May 4, 2010, 9:15 am
CARY, N.C., May 4, 2010 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR - News), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today announced the financial results for the quarter ended March 31, 2010. Additionally, the company anticipates filing its quarterly report including its financials in eXtensible Business Reporting Language (xBRL) with the Securities and Exchange Commission before market close today.
Revenues for the quarter ended March 31, 2010 increased 28% to $605,081 compared to $472,538 in the same period in fiscal 2009. The increase in revenue was primarily due to an increase in transfer agent services of $118,356 and an increase in software licensing of $50,329. Gross profit for the quarter ended March 31, 2010 increased 57% to $405,826 compared to $258,537 in the same period in fiscal 2009. Wes Pollard, Chief Financial Officer of Issuer Direct said, "The increase in revenue along with the improvement in gross profit during the first quarter of 2010 as compared to the same period of 2009 further validates the company's ability to expand the business while strategically shifting resources and revenue to our higher margin services."
Net income for the quarter ended March 31, 2010 was $134,664, or $0.01 per share, including non-cash interest charges of $35,179 incurred upon the conversion of notes payable into shares of the company; as compared to $91,345, or $0.01 per share, in the comparable period of 2010.
Mr. Pollard went on to say, "We are very encouraged by the first quarter results. We achieved significant revenue from all of our service offerings, which is consistent with our mission to provide a complete set of solutions for corporate issuers."
Highlights for the first quarter of 2010:
* Increased revenue by 28% as compared to the same period of fiscal 2009
* Gross margin increased to 67% as compared to 55% in the same period of fiscal 2009
* Net income was $134,664 compared to $91,345 in the same period of 2009
* Working capital improved to $426,233 at March 31, 2010 compared to $138,505 at December 31, 2009
About Issuer Direct Corporation:
Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company, Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies. To learn more visit www.issuerdirect.com
The Issuer Direct logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4547
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2009, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at http://www.sec.gov
ISSUER DIRECT CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31,
2010 December 31,
2009
ASSETS
Current assets:
Cash and cash equivalents $315,380 $146,043
Accounts receivable, (net of allowance for doubtful accounts of $48,210 and $16,785, respectively) 197,591 152,069
Security deposits 6,242 6,242
Other current assets 19,008 19,201
Total current assets 538,221 323,555
Furniture, equipment and improvements, (net of accumulated depreciation of $20,620 and $18,316, respectively) 23,480 21,087
Intangible assets, (net of accumulated amortization and impairment of $74,667 and $67,833, respectively) 113,529 120,363
Total assets $675,230 $465,005
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $61,542 $51,715
Accrued expenses 50,446 59,810
Note payable -- related party -- 73,525
Total liabilities 111,988 185,050
Stockholders' equity:
Preferred stock, $1.00 par value, 10,000,000 shares authorized -- Series A, 60 shares designated, 31 and 5 shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively, Series B, 476,200 shares designated; no shares issued and outstanding 31 5
Common stock $.001 par value, 100,000,000 shares authorized,17,435,312 and 16,826,342 shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively. 17,435 16,826
Additional paid-in capital 1,611,685 1,463,697
Accumulated deficit (1,065,909) (1,200,573)
Total stockholders' equity 563,242 279,955
Total liabilities and stockholders' equity $675,230 $465,005
ISSUER DIRECT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2010 2009
Revenues
Compliance and reporting services $163,196 $195,859
Printing and financial communication 114,108 105,086
Fulfillment and distribution 127,604 140,105
Software licensing 67,767 17,438
Transfer agent services 132,406 14,050
Total 605,081 472,538
Cost of services 199,255 214,001
Gross profit 405,826 258,537
Operating costs and expenses
General and administrative 160,301 101,600
Sales and marketing expenses 64,192 54,990
Depreciation and amortization 11,399 9,331
Total operating costs and expenses 235,892 165,921
Net operating income (loss) 169,934 92,616
Other income (expense):
Interest expense (35,270) (1,271)
Total other income (expense) (35,270) (1,271)
Net income (loss) before taxes $134,664 $91,345
Income tax expense (benefit) -- --
Net income (loss) $134,664 $91,345
Income (loss) per share -- basic $0.01 $0.01
Income (loss) per share - diluted $0.01 $0.01
Weighted average number of common shares outstanding - basic 16,843,108 17,631,384
Weighted average number of common shares outstanding - diluted 16,887,181 17,676,941
ISSUER DIRECT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three months ended
March 31,
2010 2009
Cash flows from operating activities:
Net income (loss) $134,664 $91,345
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 11,399 9,331
Bad debt 32,111 10,344
Non-cash interest expense 34,179 ----
Stock-based compensation 27,000 ----
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (77,633) 27,362
Decrease (increase) in deposits and prepaids 193 (3,878)
Increase (decrease in accounts payable 9,827 (11,586)
Increase (decrease) in accrued expenses 4,555 (18,261)
Net cash provided by (used in) operating activities 176,295 104,657
Investing activities
Purchase of property and equipment (6,958) (1,974)
Net cash used by investing activities (6,958) (1,974)
Financing activities
Repurchase of common stock ---- (6,750)
Repayments of notes payable ---- (37,430)
Net cash provided by (used in) financing activities ---- (44,180)
Net change in cash 169,337 58,503
Cash - beginning 146,043 50,367
Cash - ending $315,380 $108,870
Supplemental disclosure for non-cash investing
and financing activities:
Cash paid for interest $---- $579
Cash paid for income taxes $---- $----
Non-cash activities:
Accrued expenses settled by issuance of common shares $---- $25,000
Related party notes payable and accrued interest converted to common shares $59,666 $----
Related party notes payable and accrued interest converted to preferred shares 27,780 ----
Contact:
Issuer Direct Corporation
Brian R. Balbirnie
919-481-4000
brian.balbirnie@issuerdirect.com
MikeDDKing
14 years ago
Issuer Direct Reports Fourth Quarter and Year-End 2009 Results
On Tuesday March 16, 2010, 3:55 pm
CARY, N.C., March 16, 2010 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR - News), a market leader and innovator of unified regulatory, disclosure and compliance solutions, today announced the financial results for the fourth quarter and year ended December 31, 2009. Additionally, the company anticipates filing its annual report including its financials in eXtensible Business Reporting Language (xBRL) with the Securities and Exchange Commission before market close today.
Revenues for the period ended December 31, 2009 increased 32% to $1,885,232 compared to $1,425,331 in fiscal 2008. The increase of $459,901 was due primarily to an increase in transfer agent services of $247,981, and an increase in fulfillment and distribution services of $208,854.
Brian Balbirnie, Chief Executive Officer of Issuer Direct said, "The 32% increase in 2009 revenues is a result of the company's ability to shift its resources to its higher margin transfer agent and shareholder communications services in response to the slowdown in the financial markets." Mr. Balbirnie went on to say, "We are confident that we are well positioned for continued growth and increased profitability as the markets begin to recover in 2010 and beyond."
Even though revenue decreased 15% in the fourth quarter of 2009, the core financial reporting business segment increased 5.3% from $677,852 to $713,510 for the year ended December 31, 2009. Transfer agent services also increased 3432% from $7,225 to $255,206 for the same period. Demand for lower margin printed materials continued to show signs of decline while the model for higher margin goods and services such as transfer agent services and shareholder communication continued to show strong signs of growth.
Net loss totaled $75,237 or $0.00 per share for the fourth quarter ended December 31, 2009, including $58,596 in bad debt write-downs for accounts that became uncollectable and or insolvent during the period; as compared to a net income of $25,933, or $0.001 per share, in the comparable period in 2008. Overall net income totaled $274,174 or $0.02 per share for the fiscal year ended December 31, 2009, compared to net loss of $(963,043) or $(0.05) loss per share in the comparable period in 2008.
Highlights for the fourth quarter and year ended December 31, 2009:
* Increased year over year revenues by 32%
* Reduced liabilities by 55% for the period ended December 31, 2009 compared to 2008.
* Reported net income of $274,174 in the year ended December 31, 2009 compared to a loss of $963,043 in the comparable period of 2008.
Revenue backlogs in software licensing and proxy transactions were not included in fourth quarter revenues. That number is approximately $200,000 in business that has been carried over to 2010. The delay in recognizing this revenue was attributed to year end timing and complexity coupled with prolonged regulatory review and approvals.
About Issuer Direct Corporation:
Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company, Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.
The Issuer Direct logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4547
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2009, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at http://www.sec.gov
ISSUER DIRECT CORPORATION
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2009 AND 2008
December 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $146,043 $50,367
Accounts receivable (net of allowance for doubtful accounts of $16,785 and $43,764, respectively) 152,069 165,681
Security deposits 6,242 6,242
Other current assets 19,201 2,855
Total current assets 323,555 225,145
Furniture, equipment and improvements (net of accumulated depreciation of $18,316 and $43,201, respectively) 21,087 15,987
Other long-term assets -- 2,000
Intangible assets (net of accumulated amortization and impairment of $67,833 and $170,000, respectively) 120,363 147,695
Total assets $465,005 $390,827
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable - Trade $51,715 $143,560
Accrued expenses 59,810 128,050
Note payable -- related party 73,525 73,525
Notes payable -- other -- 64,828
Total liabilities 185,050 409,963
Stockholders' equity (deficit):
Preferred stock, $1.00 par value, 10,000,000 shares authorized
Series A, 60 shares designated, 5 and 7 shares issued and outstanding, respectively 5 7
Series B, 476,200 shares designated; no shares issued and outstanding -- --
Common stock $0.001 par value, 100,000,000 shares authorized, 16,826,342 and 18,834,717 shares issued and 16,826,342 and 18,830,222 shares outstanding, respectively 16,826 18,834
Additional paid-in capital 1,463,697 1,441,006
Treasury stock, at cost, 4,495 shares at December 31, 2008 -- (4,236)
Accumulated deficit (1,200,573) (1,474,747)
Total stockholders' equity (deficit) 279,955 (19,136)
Total liabilities and stockholders' equity (deficit) $465,005 $390,827
ISSUER DIRECT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year Ended
December 31,
2009 2008
Revenues
Document conversion $713,510 $677,852
Printing and financial communication 381,347 453,928
Fulfillment and distribution 444,920 236,066
Software licensing 90,249 50,260
Transfer agent services 255,206 7,225
Total 1,885,232 1,425,331
Cost of services 786,633 745,175
Gross profit 1,098,599 680,156
Operating costs and expenses
General and administrative 537,604 1,226,243
Sales and marketing expenses 247,887 287,198
Impairment charges -- 130,000
Depreciation and amortization 38,246 35,191
Total operating costs and expenses 823,737 1,678, 632
Net operating income (loss) 274,862 (998,476)
Other income (expense):
Interest expense (688) (8,886)
Gain on settlement of debt -- 16,902
Other income -- 27,417
Total other income (expense) (688) 35,433
Net income (loss) $274,174 $(963,043)
Loss per share -- basic and diluted $0.02 $(0.05)
Weighted average number of common shares outstanding -- basic 17,014,713 17,834,100
Weighted average number of common shares outstanding -- diluted 17,017,850 17,834,100
ISSUER DIRECT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(AUDITED)
Year ended
December 31,
2009 2008
Cash flows from operating activities
Net loss $274,174 $(963,043)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense 61,340 54,490
Depreciation and amortization 38,246 35,191
Impairment charges -- 130,000
Gain on settlement of debt -- (16,902)
Stock-based expenses 10,000 668,150
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable (47,728) (95,217)
Decrease (increase) in deposits and prepaids (14,347) 69
Increase (decrease) in accounts payable (91,844) 88,855
Increase (decrease) in accrued expenses (43,240) 109,859
Net cash used by operating activities 186,601 11,452
Cash flows from investing activities
Purchase of equipment (16,014) (10,341)
Net cash used by investing activities (16,014) (10,341)
Cash flows from financing activities
Repurchase of common stock (10,083) --
Proceeds from sale of common stock -- 50,000
Payments for notes payable (64,828) (40,062)
Net cash provided by financing activities (74,911) 9,938
Net change in cash 95,676 11,049
Cash -- beginning 50,367 39,318
Cash -- ending $146,043 $50,367
Supplemental disclosures:
Cash paid for interest $1,192 $3,994
Cash paid for income taxes $-- $--
Non-cash investing and financing activities:
Retirement of treasury shares $10,083 $--
Cancellation of common shares $4,236 $--
Issuance of common shares for redemption of preferred shares $20 $--
Accrued expenses settled by issuance of common shares $25,000 $71,000
Contact:
Issuer Direct
Investor Relations
919-481-4000
info@issuerdirect.com