ISSUER DIRECT CORP Files 10-Q for Q1 2024

TL;DR

<b>ISSUER DIRECT CORP reported Q1 2024 results with a slight revenue dip but a substantial net income increase.</b>

AI Summary

ISSUER DIRECT CORP (ACCS) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Revenue for Q1 2024 was $3.815M, a slight decrease from $3.817M in Q1 2023. Net income for Q1 2024 was $184K, a significant increase from $21K in Q1 2023. Total assets as of March 31, 2024, were $20.0M. Debt-to-equity ratio was 0.1 as of March 31, 2024. The company reported $3.815M in revenue for the period ending March 31, 2024.

Why It Matters

For investors and stakeholders tracking ISSUER DIRECT CORP, this filing contains several important signals. The increase in net income despite flat revenue suggests improved operational efficiency or cost management in Q1 2024. The low debt-to-equity ratio of 0.1 indicates a strong balance sheet with minimal financial leverage.

Risk Assessment

Risk Level: — ISSUER DIRECT CORP shows moderate risk based on this filing. The company's financial performance, particularly the significant increase in net income on flat revenue, warrants close monitoring for sustainability.

Analyst Insight

Monitor the sustainability of the increased net income in future quarters to assess operational improvements.

Financial Highlights

debt To Equity

0.1

revenue

3815212

total Assets

20000000

net Income

184000

revenue Growth

-0.0006%

Revenue Breakdown

Key Numbers

• 3815212 — Revenue Q1 2024 (Revenue for the period ending 2024-03-31)
• 3817379 — Revenue Q1 2023 (Revenue for the period ending 2023-03-31)
• 184000 — Net Income Q1 2024 (Net income for the period ending 2024-03-31)
• 21000 — Net Income Q1 2023 (Net income for the period ending 2023-03-31)
• 20000000 — Total Assets (As of 2024-03-31)
• 0.1 — Debt/Equity Ratio (As of 2024-03-31)

Key Players & Entities

• ISSUER DIRECT CORP (company) — FILER
• ACCS (company) — tk
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE
• RALEIGH (location) — CITY
• NC (location) — STATE
• 2024-01-01 (date) — 2024 Q1
• 2023-01-01 (date) — 2023 Q1

FAQ

Industry Context

The company operates in the Management Consulting Services industry (SIC 8742).

Regulatory Implications

This filing is a standard 10-Q quarterly report filed under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the drivers behind the significant net income increase in Q1 2024.
2. Compare the revenue segments in detail to understand the slight decrease.
3. Assess the company's cash flow statement for Q1 2024.

Year-Over-Year Comparison

Revenue saw a marginal decrease of 0.0006% from Q1 2023 to Q1 2024, while net income increased substantially.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 ISDR NYSE American Indicate by che

Filing Documents

• isdr_10q.htm (10-Q) — 598KB
• isdr_ex311.htm (EX-31.1) — 11KB
• isdr_ex312.htm (EX-31.2) — 9KB
• isdr_ex321.htm (EX-32.1) — 4KB
• isdr_ex322.htm (EX-32.2) — 5KB
• isdr_10qimg3.jpg (GRAPHIC) — 16KB
• isdr_10qimg1.jpg (GRAPHIC) — 3KB
• 0001654954-24-005891.txt (&nbsp;) — 2990KB
• isdr-20240331.xsd (EX-101.SCH) — 26KB
• isdr-20240331_lab.xml (EX-101.LAB) — 196KB
• isdr-20240331_cal.xml (EX-101.CAL) — 40KB
• isdr-20240331_pre.xml (EX-101.PRE) — 154KB
• isdr-20240331_def.xml (EX-101.DEF) — 63KB
• isdr_10q_htm.xml (XML) — 316KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. 3 Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 4 Unaudited Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended March 31, 2024 and 2023 5 Unaudited Consolidated Statement of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 6 Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 7 Notes to Unaudited Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 26 Item 4.

Controls and Procedures

Controls and Procedures. 26

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1. Legal Proceedings. 27 Item 1A. Risk Factors. 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 27 Item 3. Defaults Upon Senior Securities. 27 Item 4. Mine Safety Disclosure. 27 Item 5. Other Information. 27 Item 6. Exhibits. 28

Signatures

Signatures 29 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ISSUER DIRECT CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) March 31, December 31, 2024 2023 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 5,399 $ 5,714 Accounts receivable (net of allowance for credit losses of $ 1,144 and $ 1,119 , respectively) 4,201 4,368 Income tax receivable 213 232 Other current assets 1,286 1,190 Total current assets 11,099 11,504 Capitalized software (net of accumulated amortization of $ 3,471 and $ 3,424 , respectively) 755 556 Fixed assets (net of accumulated depreciation of $ 804 and $ 765 , respectively) 472 495 Right-of-use asset – leases 958 1,022 Other long-term assets 355 158 Goodwill 21,927 21,927 Intangible assets (net of accumulated amortization of $ 10,247 and $ 9,562 , respectively) 28,805 29,490 Total assets $ 64,371 $ 65,152 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,598 $ 1,308 Accrued expenses 2,033 1,930 Current portion of long-term debt 4,000 4,000 Deferred revenue 5,584 5,412 Total current liabilities 13,215 12,650 Long-term debt (net of debt discount of $ 83 and $ 87 , respectively) 14,917 15,913 Deferred income tax liability 132 139 Lease liabilities – long-term 927 1,009 Other long-term liabilities — 21 Total liabilities 29,191 29,732 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively. — — Common stock $ 0.001 par value, 20,000,000 shares authorized, 3,817,379 and 3,815,212 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 4 4 Additional paid-in capital 23,464 23,531 Other accumulated comprehensive loss ( 83 ) ( 49 ) Retained earnings

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Basis of Presentation The unaudited interim consolidated balance sheet as of March 31, 2024 and consolidated statements of operations, comprehensive loss, stockholders' equity and cash flows for the three-month periods ended March 31, 2024 and 2023 included herein, have been prepared in accordance with the instructions for Form 10-Q under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Article 10 of Regulation S-X under the Exchange Act. In the opinion of management, they include all normal recurring adjustments necessary for a fair presentation of the financial statements. Results of operations reported for the interim periods are not necessarily indicative of results for the entire year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") have been condensed or omitted pursuant to such rules and regulations relating to interim financial statements. The interim financial information should be read in conjunction with the 2023 audited financial statements of Issuer Direct Corporation (the "Company", "We", or "Our") filed on Form 10-K for the year ended December 31, 2023. Note 2. Summary of Significant Accounting Policies The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Significant intercompany accounts and transactions are eliminated in consolidation. Earnings Per Share (EPS) Earnings per share accounting guidance requires that basic net income per common share be computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and dilutive common equivalent shares outstanding during the peri

View Full Filing

View this 10-Q filing on SEC EDGAR