EX-99.1 2 isdr_ex991.htm EXHIBIT 99.1 - EARNINGS RELEASE isdr_ex991.htm
Exhibit 99.1

ISSUER DIRECT REPORTS RESULTS FOR THE FIRST QUARTER OF 2010
 
CARY, N.C., May 4, 2010 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTC: 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.
 
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,
    
December 31,
  
   
2010
    
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
      
––
  
.