[Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) Issuer Direct experienced a 19% revenue decline in Q1 2024 due to reduced press release volume, yet improved cash flow from operations and increased subscriptions, with management anticipating future growth from its new Media Suite - The CEO noted that the first quarter was slower than anticipated due to a reduction in press release volume from existing news distribution customers, a trend observed across the industry[2](index=2&type=chunk) - The company is optimistic about its new Media Suite subscription, believing it will attract more news distribution customers and boost overall subscription numbers[2](index=2&type=chunk) Key Performance Indicators (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $7.0M | $8.6M | -19% | | Adjusted EBITDA | $0.8M | $1.9M | -58% | | Cash flow from operations | $1.0M | $0.3M | +233% | | Subscriptions | 1,043 | 1,001 | +4% | [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) Q1 2024 total revenue decreased 19% to $7.0 million, driven by declines in both Communications and Compliance segments, resulting in an operating loss of $52,000 and a flat net loss per share of ($0.04) Revenue Breakdown (Q1 2024) | Revenue Stream | Change vs Q1 2023 | Change vs Q4 2023 | Notes | | :--- | :--- | :--- | :--- | | **Total Revenue** | **-19%** | **-8%** | Totaled $6,962,000 | | Communications | -17% | -3% | Decrease in volume and pricing on Newswire and ACCESSWIRE | | Compliance | -27% | -21% | Decrease in print/proxy fulfillment and transfer agent services | - Gross margin for Q1 2024 was **75% of revenue**, down from 79% in Q1 2023[6](index=6&type=chunk) - The company recorded an operating loss of **$52,000**, compared to an operating income of $581,000 in Q1 2023, primarily due to lower revenue, partially offset by reduced operating expenses[6](index=6&type=chunk) - GAAP net loss was **$139,000**, or **($0.04) per diluted share**, compared to a net loss of $144,000, or ($0.04) per diluted share, in Q1 2023[6](index=6&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company presents non-GAAP financial measures, including Adjusted EBITDA of **$751,000**, Non-GAAP net income of **$321,000**, and Adjusted free cash flow of **$783,000**, to reflect core operating performance by excluding specific non-recurring items - The company includes non-GAAP measures to provide investors with a representation of core operating performance and to assess future prospects and underlying trends[7](index=7&type=chunk) Non-GAAP Measures Summary (Q1 2024 vs Q1 2023) | Non-GAAP Measure | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | EBITDA | $923,000 | $782,000 | | Adjusted EBITDA | $751,000 | $1,888,000 | | Non-GAAP Net Income | $321,000 | $1,271,000 | | Non-GAAP EPS (diluted) | $0.08 | $0.33 | | Adjusted Free Cash Flow | $783,000 | $739,000 | [EBITDA & Adjusted EBITDA Reconciliation](index=2&type=section&id=CALCULATION%20OF%20EBITDA%20%26%20ADJUSTED%20EBITDA) Q1 2024 GAAP Net Loss of **$139,000** was reconciled to an EBITDA of **$923,000**, with further adjustments leading to an Adjusted EBITDA of **$751,000**, a significant decrease from the prior year Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net income (loss)** | **$(139)** | **$(144)** | | Depreciation and amortization | 770 | 736 | | Interest expense (income) | 276 | 238 | | Income tax expense (benefit) | 16 | (48) | | **EBITDA** | **923** | **782** | | Acquisition and integration expenses | 65 | 234 | | Other non-recurring expenses | (170) | 535 | | Stock-based compensation expense | (67) | 337 | | **Adjusted EBITDA** | **$751** | **$1,888** | [Non-GAAP Net Income Reconciliation](index=2&type=section&id=CALCULATION%20OF%20NON-GAAP%20NET%20INCOME) Q1 2024 GAAP Net Loss of **$139,000** was adjusted for items like amortization and stock-based compensation, resulting in a Non-GAAP Net Income of **$321,000**, or **$0.08 per diluted share**, a decrease from the prior year Reconciliation of GAAP Net Loss to Non-GAAP Net Income (in thousands, except per share) | Line Item | Q1 2024 Amount | Q1 2024 Per Share | Q1 2023 Amount | Q1 2023 Per Share | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | **$(139)** | **$(0.04)** | **$(144)** | **$(0.04)** | | Amortization of intangible assets | 685 | 0.18 | 685 | 0.18 | | Stock-based compensation | (67) | (0.01) | 337 | 0.09 | | Other unusual items | (105) | (0.03) | 769 | 0.20 | | Tax impact of adjustments | (108) | (0.03) | (376) | (0.10) | | Impact of discrete items | 55 | 0.01 | - | - | | **Non-GAAP net income** | **$321** | **$0.08** | **$1,271** | **$0.33** | [Free Cash Flow & Adjusted Free Cash Flow Reconciliation](index=3&type=section&id=CALCULATION%20OF%20FREE%20CASH%20FLOW%20AND%20ADJUSTED%20FREE%20CASH%20FLOW) In Q1 2024, net cash from operating activities significantly increased to **$986,000**, with **$261,000** used in investing and **$1.0 million** in financing activities, ending the quarter with **$5.4 million** in cash Calculation of Adjusted Free Cash Flow (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $986 | $272 | | Payments for fixed assets and capitalized software | (261) | (5) | | **Free cash flow** | **725** | **267** | | Cash paid for acquisition and integration items | 23 | 77 | | Cash paid for other unusual items | 35 | 395 | | **Adjusted free cash flow** | **$783** | **$739** | [Customer Metrics](index=2&type=section&id=Customer%20Metrics) The company's customer base expanded over the last twelve months, with total active customers growing to **12,093** and subscription customers increasing to **1,043**, partly driven by the Newswire acquisition - As of March 31, 2024, the company had **12,093 active customers** over the past twelve months, an increase from 10,052 as of March 31, 2023[10](index=10&type=chunk) - The number of active customers from the Newswire brand more than **doubled year-over-year**, increasing from 2,262 to 4,605[10](index=10&type=chunk) - The company had **1,043 active subscription customers** during the quarter, up from 1,001 in Q1 2023, with a subscription defined as a contract for one or more products for a minimum of one year[10](index=10&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2024, including Balance Sheets, Statements of Operations, and Statements of Cash Flows, providing a comprehensive overview of the company's financial position and performance [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, Issuer Direct reported total assets of **$64.4 million**, total liabilities of **$29.2 million**, and total stockholders' equity of **$35.2 million**, with cash and cash equivalents at **$5.4 million** Balance Sheet Summary (in thousands) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,399 | $5,714 | | Total current assets | $11,099 | $11,504 | | Goodwill | $21,927 | $21,927 | | **Total assets** | **$64,371** | **$65,152** | | Total current liabilities | $13,215 | $12,650 | | Long-term debt | $14,917 | $15,913 | | **Total liabilities** | **$29,191** | **$29,732** | | **Total stockholders' equity** | **$35,180** | **$35,420** | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2024, the company reported **$7.0 million** in revenue, a gross profit of **$5.2 million**, an operating loss of **$52,000**, and a net loss of **$139,000**, resulting in a flat loss per share of **($0.04)** Statement of Operations Summary (in thousands, except per share) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $6,962 | $8,619 | | Gross profit | $5,241 | $6,790 | | Total operating costs and expenses | $5,293 | $6,209 | | **Operating (loss) income** | **$(52)** | **$581** | | **Net loss** | **$(139)** | **$(144)** | | **Loss per share – fully diluted** | **$(0.04)** | **$(0.04)** | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2024, net cash from operating activities significantly increased to **$986,000**, with **$261,000** used in investing and **$1.0 million** in financing activities, ending the quarter with **$5.4 million** in cash Statement of Cash Flows Summary (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $986 | $272 | | Net cash (used in) provided by investing activities | $(261) | $345 | | Net cash used in financing activities | $(1,000) | $(2,100) | | **Net change in cash and cash equivalents** | **$(275)** | **$(1,483)** | | **Cash and cash equivalents – ending** | **$5,399** | **$3,349** | [Company Information & Forward-Looking Statements](index=4&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) Issuer Direct, a communications and compliance company, provides solutions for PR and IR professionals, with its report containing forward-looking statements subject to risks and uncertainties, which the company is not obligated to update - Issuer Direct® is a leading communications and compliance company offering solutions like newswires, IR websites, and events technology to thousands of customers[18](index=18&type=chunk) - The report contains forward-looking statements based on current expectations, which are subject to risks and uncertainties that could cause actual results to differ materially[19](index=19&type=chunk)

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Acquisition and Growth - Issuer Direct acquired iNewswire.com LLC on November 1, 2022, enhancing its press release distribution capabilities and creating one of North America's largest platforms in this sector[30]. - The acquisition of Newswire allows the company to offer PRO and a media database platform to existing ACCESSWIRE customers, enhancing business growth opportunities[64]. - The company plans to release a new Media Suite subscriber offering in early 2024, which will include media monitoring and pitching products[71]. - The company anticipates that acquisitions will enhance its market offerings and competitive advantages, facilitating future growth[217]. Financial Performance - Total revenue increased by $9,864,000, or 42%, to $33,378,000 for the year ended December 31, 2023, compared to $23,514,000 in 2022[172]. - Communications revenue rose by $8,109,000, or 50%, to $24,224,000, representing 73% of total revenue in 2023, up from 69% in 2022[173]. - Compliance revenue increased by $1,755,000, or 24%, to $9,154,000, driven by significant transactions in print and proxy fulfillment services[174]. - Net income for the year ended December 31, 2023, was $766,000, a decrease from $1,934,000 in 2022[164]. - Non-GAAP net income for 2023 was $4,889,000, or $1.28 per diluted share, up from $3,548,000, or $0.95 per diluted share in 2022[209]. Revenue Model and Strategy - The company aims to transition to a subscription-based revenue model, which is expected to provide more consistent and predictable revenue patterns[58]. - The transition to a platform subscription model is viewed as key for long-term sustainable growth, with a focus on expanding Communications products and evaluating strategic acquisitions[213][214]. - Subscription and support revenue is recognized ratably over the term of the contract, which may delay the reflection of downturns or upturns in sales in operating results[110]. Customer Engagement and Market Position - The Media Suite, a new subscription add-on, includes Media Database, Media Pitching, and Media Monitoring, aimed at improving customer engagement and brand visibility[36]. - The company is focused on expanding its customer base by targeting the entire C-suite of organizations to drive subscription revenues[59]. - The company worked with 11,924 customers in 2023, up from 8,218 in 2022, primarily due to the increase in Newswire customers[77]. Operational Challenges - The company faces intense competition, with competitors having greater financial and technical resources, which may impact its ability to respond to market demands[97]. - The company has experienced challenges in retaining key employees, which could disrupt business operations and affect growth[103]. - The company must adapt to rapid changes in technology and customer requirements to remain competitive, necessitating substantial investments in sales and marketing[109]. Compliance and Regulatory Environment - The company is positioned to benefit from increased regulatory requirements in the communications industry, which may drive demand for its solutions[72]. - The company is subject to complex sales and income tax regulations, which may lead to significant judgment and potential discrepancies in tax provisions[115]. - The company has experienced significant challenges due to evolving regulatory frameworks for privacy and data protection, which may require costly compliance measures[117]. Cybersecurity and Risk Management - The company has implemented a layered cybersecurity strategy, including regular assessments and employee training, to manage material risks from cybersecurity threats[141]. - Cyber incidents have not materially affected the company’s business strategy or financial condition, indicating resilience against such threats[145]. - The Board of Directors is actively involved in overseeing cybersecurity risks, receiving regular reports from the CTO[147]. Investment and Future Outlook - The company anticipates that additional investments in sales personnel, infrastructure, and research and development will be required to support future growth[105]. - The company plans to continue investing in product sets, platforms, and intellectual property development through internal development and acquisitions[217]. - Market factors such as military conflicts and global inflation have created economic uncertainty, but demand for the company's services remains stable[212].

Revenue Performance - Q4 2023 revenue was $7.5 million, a 6% increase from $7.1 million in Q4 2022[5] - Full year 2023 total revenue reached $33.38 million, a 42% increase from $23.51 million in 2022[4] - Communications revenue accounted for 73% of total revenue in 2023, up from 69% in 2022, driven by the acquisition of Newswire[4] - Total revenues for the year ended December 31, 2023, increased to $33,378,000, up 42.0% from $23,514,000 in 2022[28] Profitability Metrics - Adjusted EBITDA for Q4 2023 was $1.065 million, or 14% of revenue, compared to $1.015 million, or 14% of revenue in Q4 2022[12] - Full year 2023 EBITDA was $5.38 million, or 16% of revenue, compared to $3.70 million, also 16% of revenue in 2022[11] - Non-GAAP net income for 2023 was $4.89 million, or $1.28 per diluted share, compared to $3.55 million, or $0.95 per diluted share in 2022[16] - Gross profit for the three months ended December 31, 2023, was $5,572,000, representing a 5.9% increase from $5,263,000 in the same period of 2022[28] Net Loss and Cash Flow - Net loss for Q4 2023 was $726,000, or $(0.19) per diluted share, compared to a net loss of $109,000, or $(0.03) per diluted share in Q4 2022[5] - Operating cash flows for Q4 2023 were $770,000, down from $994,000 in Q4 2022[5] - For the three months ended December 31, 2023, net cash provided by operating activities was $770,000, a decrease of 22.6% from $994,000 in the same period of 2022[18] - Free cash flow for the year ended December 31, 2023, was $2,557,000, down 35.3% from $3,953,000 in 2022[18] - Adjusted free cash flow for the three months ended December 31, 2023, was $687,000, a decline of 65.6% compared to $1,999,000 in the same period of 2022[18] Customer Metrics - The number of subscriptions increased to 1,053 in Q4 2023 from 1,002 in Q4 2022[11] - The company had 11,924 active customers as of December 31, 2023, compared to 8,218 at the end of 2022[11] Balance Sheet and Liabilities - Cash and cash equivalents as of December 31, 2023, were $5,714,000, an increase of 18.2% from $4,832,000 in 2022[26] - Total current liabilities decreased significantly to $12,650,000 from $31,191,000 in 2022, a reduction of 59.5%[26] Acquisition and Integration Costs - The company incurred $373,000 in cash payments for acquisition and/or integration items for the year ended December 31, 2023[18] - The company expects to continue to award stock in exchange for services, with stock-based compensation being subject to change due to one-time or non-recurring projects[19] - The company issued a secured promissory note in the acquisition of Newswire valued at $22,000 million in 2022[32] - Shares issued in the acquisition of Newswire amounted to $3,892 million[32] Other Financial Metrics - Net income for 2023 decreased to $766 million from $1,934 million in 2022, representing a decline of approximately 60.4%[31] - Bad debt expense increased to $743 million in 2023, up from $406 million in 2022, indicating a rise of 83.0%[31] - Net cash provided by operating activities decreased to $3,060 million in 2023 from $4,019 million in 2022, a decline of about 23.9%[31] - Net cash used in investing activities significantly decreased to $153 million in 2023 from $18,029 million in 2022, reflecting a reduction of approximately 99.2%[31] - Net cash used in financing activities was $2,081 million in 2023, compared to $4,909 million in 2022, a decrease of about 57.6%[31] - Cash paid for income taxes increased to $1,314 million in 2023 from $954 million in 2022, an increase of approximately 37.8%[31] - Cash paid for interest in 2023 was $1,394 million, with no corresponding figure reported for 2022[31] - The company ended 2023 with cash of $5,714 million, up from $4,832 million at the end of 2022, an increase of about 18.3%[31]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: _____________ to _____________ ISSUER DIRECT CORPORATION (Exact name of registrant as specified in its charter) (State or Other Jurisdiction (Commission (I.R.S. Em ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ISSUER DIRECT CORPORATION (Exact name of registrant as specified in its charter) (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) Delaware 1-10185 26-1331503 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...

Issuer Direct Corporation (NYSE:ISDR) Q1 2023 Earnings Conference Call May 11, 2023 4:30 PM ET Company Participants Brian Balbirnie - Founder and Chief Executive Officer Tim Pitoniak - Chief Financial Officer Conference Call Participants Mike Grondahl - Northland Securities Walter Ramsley - R-Squared Operator Ladies and gentlemen, thank you for standing by and welcome to the Issuer Direct Corporation First Quarter 2023 Earnings Conference Call. Today's call will be conducted by the Company's Founder and Ch ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————— FORM 10-Q ——————— ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: _____________ to _____________ ISSUER DIRECT CORPORATION (Exact name of registrant as specified in its charter) Delaware 1-10185 26-1331503 (State or O ...

Issuer Direct Corporation (NYSE:ISDR) Q4 2022 Earnings Conference Call March 2, 2023 4:30 PM ET Company Participants Brian Balbirnie - Founder and Chief Executive Officer Tim Pitoniak - Chief Financial Officer Conference Call Participants Mike Grondahl - Northland Securities Brock Erwin - CleverInvesting Walter Ramsley - Walrus Partners Operator Greetings. Thank you for standing by and welcome to the Issuer Direct Corporation Fourth Quarter and Year Ended 2022 Earnings Conference Call. Today’s call will be ...

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, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___________to ___________ ——————— ISSUER DIRECT CORPORATION (Name of small business issuer in its charter) ——————— (State or Other Jurisdiction of Incorporation) (Commission ...