UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K _____________________ ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Year Ended: December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___________to ___________ _____________________ ACCESS Newswire Inc. (Exact name of registrant as specified in its charter) _____________________ (State or Other Juris ...

Revenue Performance - Revenue for Q4 2024 increased by 1% to $5.8 million compared to $5.76 million in Q4 2023[6] - Full year 2024 total revenue was $23.057 million, a 6% decrease from $24.522 million in 2023[11] - For the three months ended December 31, 2024, the company reported revenues of $5,826,000, a slight increase from $5,762,000 in the same period of 2023[29] Profitability and Loss - Adjusted EBITDA for Q4 2024 was $871,000, representing 15% of revenue, up from a loss of $(27,000) in Q4 2023[7] - Net loss from continuing operations for Q4 2024 was $(10.945) million, or $(2.85) per diluted share, compared to a net loss of $(1.512) million, or $(0.40) per diluted share in Q4 2023[7] - Operating loss for the full year 2024 was $(16.319) million, compared to $(2.739) million in 2023, primarily due to a $14.15 million impairment loss[11] - The company reported a net loss from continuing operations of $(13,281,000) for the year ended December 31, 2024, compared to $(3,441,000) in 2023, indicating a worsening loss situation[29] - The company reported a net loss of $10,793 million for the year ended December 31, 2024, compared to a net income of $766 million in 2023[32] Cash Flow and Financial Health - Cash flow from operations improved to $353,000 in Q4 2024 from $(236,000) in Q4 2023[6] - The net cash provided by operating activities for the full year ended December 31, 2024, was $400,000, a significant improvement from a cash used of $(741,000) in 2023[17] - The adjusted free cash flow for the full year ended December 31, 2024, was $26,000, compared to $(476,000) in 2023, reflecting a positive turnaround[17] - Net cash provided by operating activities from discontinued operations was $2,760 million, down from $3,801 million in 2023[32] - Total cash and cash equivalents at the end of the period were $4,103 million, a decrease from $5,714 million at the beginning of the year[32] Asset and Liability Management - Total assets decreased from $65,152,000 in 2023 to $50,638,000 in 2024, a decline of approximately 22.3%[26] - The company's total liabilities decreased from $29,732,000 in 2023 to $25,412,000 in 2024, a reduction of about 14.5%[26] Customer Metrics - Subscription customers increased to 1,124 in Q4 2024 from 1,053 in Q4 2023[6] - Annual recurring revenue (ARR) for subscriptions reached $10.735 million, up from $9.489 million at the end of 2023[11] Impairment and Investments - The company incurred an impairment loss on intangible assets of $14,150,000 for the three months ended December 31, 2024, compared to no such loss in the same period of 2023[29] - The company incurred a loss on impairment of intangible assets amounting to $14,150 million, indicating potential challenges in asset valuation[32] - Capitalized software expenditures rose to $597 million, compared to $478 million in 2023, reflecting ongoing investment in technology[32] Strategic Outlook - The company aims to optimize capital allocation and increase customer counts and market share moving forward[4] - The company expects to continue to award stock in exchange for services, but the amount of stock-based compensation is excluded from certain adjustments due to its variability[1] - The company did not make any acquisitions during the year, as indicated by the absence of cash outflows for business purchases[32]

Core Perspective - Issuer Direct Corp has rebranded itself as ACCESS Newswire Inc, signaling a strategic shift towards enhancing its communication services and expanding its market presence [1] Company Overview - The rebranding aims to reflect the company's commitment to providing innovative communication solutions and to better align with its evolving business model [1] - ACCESS Newswire Inc will focus on delivering comprehensive news distribution services, targeting a broader audience and enhancing client engagement [1] Industry Implications - The rebranding is expected to position the company favorably within the competitive landscape of news distribution and public relations, as it seeks to leverage technology to improve service delivery [1] - This move may indicate a trend within the industry where companies are increasingly adopting modern branding strategies to stay relevant and meet changing client needs [1]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $7 million, a decrease of $616,000 or 8% compared to Q3 2023, and $4.2 million or 16% for the first nine months of 2024 compared to the same periods of 2023 [7][16] - Net loss for Q3 2024 was $466,000 or $0.12 per diluted share, compared to net income of $273,000 or $0.07 per diluted share in Q3 2023 [16] - Non-GAAP net income for Q3 2024 was $641,000 or $0.17 per diluted share, down from $1 million or $0.27 per diluted share in Q3 2023 [17] Business Line Data and Key Metrics Changes - Communications revenue decreased by $597,000 or 10% to $1.7 million for Q3 2024, attributed to lower average revenue per release from ACCESSWIRE and Newswire brands [7][9] - Compliance revenue decreased by $19,000 or 1% for Q3 2024 and $2.5 million or 35% for the first nine months of 2024, primarily due to a decrease in print and proxy fulfillment services [10] - Average revenue per subscriber grew 7% year-over-year to $10,114 per customer from $9,477 [4] Market Data and Key Metrics Changes - The company achieved a market share of 20.28% as of the end of Q3 2024, up from less than 8% six quarters ago [35][37] - The company accounted for 30.15% of quarterly volume distributed in the market, indicating a strong competitive position [36] Company Strategy and Development Direction - The company is transitioning towards a recurring revenue model focused on new media suite products, with plans to market subscription platforms to Public Relations and Investor Relations professionals [3][5] - Future product enhancements include a global expansion of the media database, significant upgrades to distribution and engagement reporting, and strategic partnerships with social media management platforms [23][25] - The company aims to enhance its AI solutions and introduce a video creation service for press releases by late 2025 [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of subscription values, projecting an increase to $14,000 by Q3 2025 [22] - The company is focused on optimizing SG&A expenses and maintaining cash flow generation while exploring strategic options for its compliance business [40][38] Other Important Information - The company reported a gross margin of 74% for Q3 2024, down from 76% in Q3 2023, primarily due to decreased revenue [11][12] - Operating income for Q3 2024 was $156,000, a decrease from $593,000 in Q3 2023 [13] Q&A Session Summary Question: Are there any questions from the participants? - There were no questions in the queue during the Q&A session [41]

Financial Performance - Total revenue decreased by $616,000, or 8%, to $6,953,000 for the three months ended September 30, 2024, compared to $7,569,000 for the same period in 2023[109] - Communications revenue decreased by $597,000, or 10%, to $5,481,000 for the three months ended September 30, 2024, compared to $6,078,000 for the same period in 2023[110] - Compliance revenue decreased by $19,000, or 1%, and $2,541,000, or 35%, during the three and nine months ended September 30, 2024, respectively[111] - Operating income was $156,000 for the three months ended September 30, 2024, compared to $593,000 for the same period in 2023[105] - Net income (loss) was $(466,000) for the three months ended September 30, 2024, compared to $273,000 for the same period in 2023[105] - For the three months ended September 30, 2024, the company reported a net loss of $466,000, or $(0.12) per diluted share, compared to a net income of $273,000, or $0.07 per diluted share for the same period in 2023[136] - For the nine months ended September 30, 2024, the company reported a net loss of $598,000, or $(0.16) per diluted share, compared to a net income of $1,492,000, or $0.39 per diluted share for the same period in 2023[136] - Non-GAAP net income for the nine months ended September 30, 2024, was $1,809,000, or $0.47 per diluted share, compared to $4,314,000, or $1.13 per diluted share for the same period in 2023[136] Expenses and Margins - Gross margin percentage decreased to 74% and 75% for the three and nine months ended September 30, 2024, respectively, compared to 76% and 77% during the same periods in 2023[113] - General and administrative expenses were $2,008,000 during the three months ended September 30, 2024, a decrease of $25,000, or 1%, compared to the same period in 2023[116] - Sales and marketing expenses were $1,618,000 for the three months ended September 30, 2024, a decrease of $220,000, or 12%, compared to the same period in 2023[118] - Total cost of revenue decreased by $16,000, or 1%, and $496,000, or 8%, during the three and nine months ended September 30, 2024, respectively[113] - Product development expenses increased by $90,000 (15%) to $671,000 for the three months ended September 30, 2024, and by $157,000 (8%) to $2,044,000 for the nine months ended September 30, 2024, compared to the same periods in 2023[120] - As a percentage of revenue, product development expenses were 10% and 9% for the three and nine months ended September 30, 2024, respectively, up from 8% in the same periods of 2023[121] - Interest expense decreased to $280,000 for the three months and $903,000 for the nine months ended September 30, 2024, compared to $368,000 and $1,080,000 in the same periods of 2023[122] Cash Flow and Financial Position - As of September 30, 2024, the company had $4,086,000 in cash and cash equivalents, with current liabilities totaling $12,593,000, resulting in a current liabilities exceeding current assets by $2,560,000[125] - Free cash flow for the three months ended September 30, 2024, was $1,358,000, compared to $110,000 in the same period of 2023[132] - Adjusted free cash flow for the nine months ended September 30, 2024, was $1,860,000, down from $2,638,000 in the same period of 2023[132] - Adjusted EBITDA for the three months ended September 30, 2024, was $1,369,000, compared to $1,756,000 in the same period of 2023[134] - Adjusted EBITDA for the nine months ended September 30, 2024, was $3,585,000, down from $6,663,000 in the same period of 2023[135] Strategic Initiatives - The company aims to increase the Communications portion of its business relative to Compliance, indicating a strategic shift in focus[79] - The company plans to continue focusing on expanding its Communications products and aligning sales and marketing teams to enhance its offerings[141] - The company aims to invest in technology advancements and evaluate acquisitions as part of its strategic initiatives for sustainable growth[141] - The company believes that the transition to a platform subscription model is key for long-term sustainable growth[141] Market and Economic Factors - Market factors such as global inflation and geopolitical conflicts have contributed to economic uncertainty, but the company believes demand for its platforms remains stable[139] - The company acknowledges potential risks related to goodwill and intangible asset write-downs if stock prices decline or demand for its services does not stabilize[140] Product and Service Developments - Issuer Direct Corporation reported significant growth in its Communications segment, with revenues increasing year-over-year, driven by enhancements in the ACCESSWIRE platform[82] - The company acquired Newswire on November 1, 2022, and fully integrated its distribution network into ACCESSWIRE by early 2023, expanding its service offerings[83] - The Media Suite subscription add-on was launched, providing communication professionals with tools for media pitching, monitoring, and database access, enhancing customer engagement[86] - The webcasting platform allows for live and on-demand streaming of events, with an estimated 5,000 companies in North America conducting earnings events each quarter[94] - Significant upgrades to the investor relations website were released in 2023, including ADA and AODA compliance, which require a recurring annual subscription[97] - The Compliance segment includes a disclosure software module designed for companies to manage SEC filings, generating revenue from both software and services[99] - The whistleblower hotline, a supported product of NYSE offerings, is being upgraded to enhance incident response and management processes[100] - The stock transfer module provides real-time information about shareholders and stock ledgers, focusing on subscription sales to improve efficiency[101] - Partnerships with stock exchanges are expected to enhance brand exposure and revenue potential in targeted customer segments[81] Other Financial Information - As of September 30, 2024, the deferred revenue balance was $5,308,000, a decrease of 2% from $5,412,000 as of December 31, 2023[112] - The company experienced a loss of $343,000 related to the change in fair value of its interest rate swap for the three months ended September 30, 2024[137] - The company has no off-balance sheet arrangements that could materially affect its financial condition[143]

Issuer Direct Corporation (ISDR) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.22, delivering a surprise of 4.76%.Over the last four quarters, the c ...

EX-99.1 2 isdr_ex991.htm EX-99.1 EXHIBIT 99.1 Issuer Direct Reports Third Quarter 2024 Results RALEIGH, NC / Issuer Direct Corporation (NYSE American: ISDR) (the "Company"), a leading communications company, today reported its operating results for the three and nine months ended September 30, 2024. "While overall revenue decreased, we made solid progress in our transition toward a recurring revenue communications model centered around our new Media Suite products during the third quarter. This contributed ...

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a favored strategy that seeks to find undervalued companies through fundamental analysis and traditional valuation metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category, where stocks with "A" grades and high Zacks Ranks are considered strong value stocks [3] Company Analysis: Issuer Direct (ISDR) - Issuer Direct (ISDR) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The stock's current P/E ratio is 15.11, significantly lower than the industry average of 22.61, suggesting it may be undervalued [4] - ISDR's Forward P/E has fluctuated between 8.52 and 16.76 over the past year, with a median of 12.19 [4] - The P/CF ratio for ISDR is 17.40, which is also below the industry's average of 20.42, further indicating potential undervaluation [5] - Over the past 52 weeks, ISDR's P/CF has ranged from 7.73 to 20.09, with a median of 14.31 [5] - The combination of these metrics suggests that ISDR is likely undervalued and stands out as one of the market's strongest value stocks, especially considering its earnings outlook [6]

Company Overview - Issuer Direct (ISDR) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4][7] - The stock is trading with a P/E ratio of 12.40, significantly lower than the industry average P/E of 24.67, suggesting it may be undervalued [4] Valuation Metrics - ISDR has a P/B ratio of 0.97, which is favorable compared to the industry's average P/B of 1.08, indicating a solid market value relative to its book value [5] - The stock's P/CF ratio stands at 14.09, which is also lower than the industry's average P/CF of 22.16, further supporting the notion of undervaluation based on cash flow [6] Performance Insights - Over the past year, ISDR's Forward P/E has fluctuated between 8.52 and 16.76, with a median of 12.19, reflecting its stable earnings outlook [4] - The P/B ratio has ranged from 0.83 to 2.32, with a median of 1.61, while the P/CF ratio has varied from 7.73 to 20.57, with a median of 14.34, indicating consistent performance metrics [5][6]

Issuer Direct Corporation (NYSE:ISDR) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET Company Participants Brian Balbirnie – Founder and Chief Executive Officer Steve Knerr – Chief Financial Officer Preston Burnett – Director-Operations Conference Call Participants Brock Erwin – CleverInvesting Preston Burnett Ladies and gentlemen, thank you for standing by and welcome to the Issuer Direct Corporation Second Quarter 2024 Earnings Conference Call. My name is Preston Burnett, and I am the Director ...