What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-08-05 compared with 2021-05-06 · 111 added, 86 removed, 155 unchanged (56% of the section changed)

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Issuer Direct Corporation and its subsidiaries are hereinafter collectively referred to as “Issuer Direct”, the “Company”, “We” or “Our” unless otherwise noted.

Our corporate offices are located at One Glenwood Ave., Suite 1001, Raleigh, North Carolina, 27603.

Our corporate headquarters are located at One Glenwood Ave., Suite 1001, Raleigh, North Carolina, 27603.

We announce material financial information to our investors using our investor relations website, SEC filings, investor events, news and earnings releases, public conference calls, webcasts and social media.

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As our cloud-based subscription business continues to mature, we expect the Communications portion of our business to continue to increase over the next several years, both in terms of overall revenue and as compared to the Compliance portion of our business.

Therefore, as noted below, we began reporting our revenue as Communications and Compliance revenues rather than Platform & Technology and Services revenues as we have done in the past.

Communications revenues were 64% of total revenue during the first quarter of 2021 as compared to 60% in the first quarter of 2020.

For the full year of 2020 Communications revenues were also 64% of total revenue, which is a higher percentage of our total revenue as compared to 57% and 45% of revenues for the years ended December 31, 2019 and 2018, respectively.

Therefore, as noted below, for the year ended December 31, 2020, we began reporting our revenue as Communications and Compliance revenues rather than Platform & Technology and Services revenues as we have done in the past.

Communications revenues were 63% of total revenue during the first half of 2021 as compared to 61% in the first half of 2020.

For the full year of 2020 Communications revenues were 64% of total revenue, which is a higher percentage of our total revenue as compared to 57% and 45% of revenues for the years ended December 31, 2019 and 2018, respectively.

In 2021, the growth from our Communications business was led by increased demands for our ACCESSWIRE news brand as well as increased subscriptions of Platform id .

In 2020, growth from our Communications business was led by the market demands for our events products that were upgraded to handle virtual needs in the industry, as well as our ACCESSWIRE news brand.

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We believe the above strategy will enable us to continue to add new customers in 2021 and beyond.

We have also been able to maintain high gross margins while providing our customers flexible pricing, with options to pay per release or enter longer-term subscriptions.

We have also been able to maintain high gross margins while providing our customers flexible pricing, with options to pay per release or enter longer-term subscriptions for a designated package of releases.

Currently, ACCESSWIRE is available within our Platform id.

subscription, or as a stand-alone offering.

During the first half of 2021, we began removing unlimited newswire subscriptions to preserve the per unit pricing of our newswire products.

This change has decreased and will continue to decrease the number of active Platform id, subscriptions, however the majority of these customers remain active, buying packages of releases.

Like other newswires globally, ACCESSWIRE is dependent upon several key partners for its news distribution.

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A significant portion of the growth has been due to increased private company customers, through either direct sales, e-commerce or through partner and reseller relationships.

A natural expansion to our ACCESSWIRE and investor relations website business, is a corporate Newsroom, which we began developing this year and have recently brought to market at the beginning of the third quarter.

This product offering can be an add-on to any customer’s ACCESSWIRE or Platform id.

The Newsroom suite includes a custom newsroom page builder, a brand asset manager and contact manager.

Our Newsroom suite addresses the needs of our customers wishing to build connections with media, journalists, its customers and if applicable the investment community.

According to a recent survey from TekGroup, a majority of journalists and media professionals indicated the importance of newsrooms that includes digital media, press kits and video.

We believe our Newsroom suite accomplishes this by including the following three components:

Newsroom page – a custom URL, self-publishing system for customers that automatically add ACCESSWIRE news to their newsroom as allows them the ability to add any other mention, article or post from the web to their newsroom.

Customers can self-manage this platform and customize things like colors, font, logo, images, social integration, and contact and customer URLs from our platform.

Brand Asset Manager – a customizable library of images, video, press kits, which can be shared both privately and publicly, as well as integrated into the ACCESSWIRE editor for easy access of customers’ high- resolution images.

Brand Asset Manager is one of the first media file managers built into a newsroom in the market today.

All assets are tagged to give our customers analytics for both views and downloads.

Subsequent versions of this feature will allow for greater analytics as engagement occurs with our customer’s assets.

Contact Manager – a technology that allows our customers to provide their audiences the ability to quickly subscribe to alerts or notifications of a particular brand.

Customers will have the ability to deliver their stories automatically or time based.

Engagement and delivery reports will also be available to customers directly from their dashboard.

Investor Relations Websites

Our investor relations content network is another component of Platform id.

, which is used to create the investor relations’ tab of a company’s website.

This investor relations content network is a robust series of data feeds including news feeds, stock feeds, fundamentals, regulatory filings, corporate governance and many other components which are aggregated from most of the major exchanges and news distribution outlets around the world.

Customers can subscribe to one or more of these data feeds or as a component of a fully designed and hosted website for pre-IPO companies, SEC reporting companies and partners seeking to display our content on their corporate sites.

The clear benefit to our investor relations content network is its integration into Platform id.

As such, companies can produce content for public distribution and it is automatically linked to their corporate website, distributed to targeted groups and placed into our data feed partners..

Webcasting & Events

Our webcasting and events business is comprised of our earnings call webcasting solutions and our virtual meeting and events software (such as annual meetings, deal/non-deal road shows, analyst days and shareholder days).

The demands for these products with a virtual component were at an all-time high for us in 2020 in large part due to the COVID-19 pandemic, something we expect will continue for the majority of 2021, although, there can be no assurances this high demand will continue in the future.

The demand for these products with a virtual component was at an all-time high for us in 2020 in large part due to the COVID-19 pandemic.

We expect this heightened demand for virtual offerings will continue for the majority of 2021, although, there can be no assurances this high demand will continue in the future.

Traditional earnings calls and webcasts are a highly competitive market with the majority of the business being driven from practitioners in investor relations and communications firms.

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Our VisualWebcaster Platform (“VWP”) is a leading cloud-based webcast, webinar and virtual meeting platform that delivers live and on-demand streaming of events to audiences of all sizes.

VWP allows customers to create, produce and deliver events, which we feel integrates well into Platform id.

We believe by acquiring VWP we have significantly strengthened our webcasting product and Platform id.

offering as well as acquired over 120 customers, ranging from small private companies to Fortune 500 companies.

VWP allows customers to create, produce and deliver events, which we feel has significantly strengthened our webcasting product and Platform id.

The VWP technology gives us the ability to host thousands of webcasts each year, expanding and diversifying our webcast business from our historical earnings-based events to include any type of virtual event.

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We believe this integration gives us a unique offering for PCOs that is not available elsewhere in the market.

We believe entering this business expands our current Communications revenue base, and as an adjacency, should assist in making Platform id.

We believe entering this business expands our current Communications revenue base and assists in making Platform id.

a platform of choice for investment banks, issuers and investors.

Investor Relations Websites

Our investor relations content network is another component of Platform id.

, which is used to create the investor relations’ tab of a company’s website.

The clear benefit to our investor relations content network is its integration into Platform id.

As such, companies can produce content for public distribution and it is automatically linked to their corporate website, distributed to targeted groups and placed into our data feed partners.

As what we believe to be a natural expansion to our investor relations website business, we are developing a “corporate newsroom” offering, which we plan to bring to market later this year.

This product offering can be an add-on to any customer’s ACCESSWIRE or Platform i.d.

Our intent is to leverage the technology we have in our investor relations content business and focus a module toward all companies, to assist in making their corporate news, media kits and alerts available from our ecosystem to their corporate website.

Our Compliance offerings consist of our disclosure software for financial reporting as well as our stock transfer agency, and related annual meeting, print and shareholder distribution services.

Our Compliance offerings consist of our disclosure software for financial reporting, stock transfer services, and related annual meeting, print and shareholder distribution services.

Some of these products are sold as part of a Platform id.

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Toward the end of 2017, we completed upgrades to our disclosure reporting product to include tagging functionality that meets newly mandated SEC disclosure requirements under Inline XBRL (Inline Extensible Business Reporting Language or “iXBRL”).

These requirements will impact most of our customers for the fiscal periods ending on or after June 15, 2021, however, we have had a number of customers already file using our iXBRL upgrades.

These requirements began impacting most of our customers on June 15, 2021, however, we have had a number of customers already file using our iXBRL upgrades.

Whistleblower Hotline

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Our solution incorporates shareholder and guest registration, voting integration, real-time statistics on attendance, audio video and presentation features as well as fully managed meeting managers and inspector of elections.

By adding a component of our webcasting and events business, we were able to offer a complete annual meeting solution, which resulted in us becoming one of the top technology providers of virtual annual meetings in 2020, which incorporated real-time voting.

By adding a component of our webcasting and events business, we were able to offer a complete annual meeting solution, which incorporated real-time voting.

For perspective, during 2019, approximately 300 North American public companies opted for a virtual component to their annual meeting compared to an estimated 4,000+ public companies in 2020.

In 2021 it is estimated the market decreased its virtual component needs to an estimated 3,000 public companies.

We experienced a proportionate decrease in the demand for our virtual annual meetings similar to that of the market in general.

Although we believe a virtual component to an annual meeting is both a benefit to all shareholders and a corporate governance advantage, there can be no assurances this product has longevity in the market.

To address this we intend to repackage our offering into a self service “DIY” product in 2022, that we believe can capture a larger portion of the market as well as meet budgets of companies trying to get engagement from shareholders with both in-person and virtual options.

Our proxy module is marketed as a fully integrated, real-time voting platform for our customers and their shareholders of record.

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Results of Operations

Comparison of results of operations for the three months ended March 31, 2021 and 2020 (in 000’s):

Comparison of results of operations for the three and six months ended June 30, 2021 and 2020:

Three months ended

Six months ended

Revenue Streams

Communications

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Gross margin %

Total revenue increased by $964,000, or 24%, to $4,980,000 during the three months ended March 31, 2021, as compared to $4,016,000 for the same period in 2020.

The increase is primarily attributable to an increase in revenue in our Communications business, but also in our Compliance business.

Communications revenue increased $779,000, or 32%, to $3,187,000 for the three months ended March 31, 2021, as compared to $2,408,000 for the same period of 2020.

The increase in revenue is primarily due to an increase in revenue from our ACCESSWIRE product, which increased 38% during the first quarter of 2021 compared to the first quarter of 2020.

The increase is due to both an increase in the number of customers as well as an increase in revenue per release.

Revenue from subscriptions of Platform id.

increased as a result of additional licenses signed throughout 2020 and the first quarter of 2021.

During the quarter we signed 50 new licenses of Platform id.

with annual contract value of $383,000.

Total revenue increased by $836,000, or 17%, to $5,720,000 during the three-month period ended June 30, 2021, as compared to $4,884,000 during the same period of 2020.

Total revenue increased by $1,800,000, or 20%, to $10,700,000 during the six-month period ended June 30, 2021, compared to $8,900,000 during the same period of 2020.

The increase was due to increases in both the Communications and Compliance revenue streams.

Communications revenue increased $496,000, or 16%, and $1,275,000, or 24%, during the three and six-month periods ended June 30, 2021, respectively, as compared to the same periods of 2020.

The increase in revenue is due primarily to an increase in revenue from our ACCESSWIRE news brand, as a result of both an increase in average price per release and an increase in volume.

ACCESSWIRE revenue for the three and six months ended June 30, 2021, increased 30% and 34%, respectively, compared to the same periods of the prior year.

We also benefited from an increase in subscriptions of Platform id.

During the three and six months ended June 30, 2021 we signed 36 and 86 new licenses of Platform id.

with annual contract value of $340,000 and $723,000, respectively.

This brings our total subscriptions of Platform id.

to 386 with annual contract value of $3,046,000 as of March 31, 2021, compared to 341 subscriptions with annual contract value of $2,677,000 as of December 31, 2020.

Additionally, revenue from our webcasting products increased as we continue to benefit from increased demand of our virtual conference and events products enhanced during 2020.

Communications revenue increased to 64% of total revenue during the three months ended March 31, 2021, as compared to 60% during the same period of the prior year.

Compliance revenue increased $185,000, or 12%, during the three months ended March 31, 2021, as compared to 2020.

The increase was due to an increase in revenue from transfer agent services and print and proxy fulfillment services.

Revenue from these two services tends to fluctuate from quarter to quarter depending on corporate transactions and market activity.

to 403 with annual contract value of $3,337,000, as of June 30, 2021, compared to 341 subscriptions with annual contract value of $2,677,000 as of December 31, 2020.

Communications revenue was 61% and 63% of total revenue during the three and six months ended June 30, 2021, respectively, as compared to 62% and 61% during the same periods of the prior year.

Compliance revenue increased $340,000, or 18%, and $525,000, or 15%, during the three and six-month periods ended June 30, 2021, as compared to the same periods of 2020.

The increase in revenue during these periods is primarily related to an increase in revenue from print and proxy fulfillment services due to increased projects associated with annual meetings and special transactions.

Revenue from our transfer agent services also increased during the periods due to an increase in corporate transactions and directives.

Revenue from these two services tends to fluctuate from period to period depending on corporate transactions and market activity.

No customers accounted for more than 10% of the revenues during the three and six-month periods ended June 30, 2021, or 2020.

Revenue Backlog

As of March 31, 2021, our deferred revenue balance was $2,383,000, which we expect to recognize over the next twelve months, compared to $2,212,000 at December 31, 2020, an increase of 8%.

At June 30, 2021, our deferred revenue balance was $2,699,000, which we expect to recognize over the next twelve months, compared to $2,212,000 at December 31, 2020, an increase of 22%.

Deferred revenue primarily consists of advance billings for subscriptions of our cloud-based products and pre-paid packages of our news distribution product, as well as, advance billings for annual service contracts.

Cost of Revenues

Cost of Revenues and Gross Margin

Communications cost of revenues consists primarily of direct labor costs, newswire distribution costs, teleconferencing costs and third-party licensing costs.

Compliance and other costs of revenue consists primarily of direct labor costs, warehousing, logistics, print production materials, postage, and amortization of capitalized software costs related to our disclosure software.

Cost of revenues increased by $141,000, or 11%, during the three months ended March 31, 2021, as compared to the same period of 2020.

Overall gross margin increased $823,000, or 30%, during the three months ended March 31, 2021, compared to the same period of 2020.

As a result, overall gross margin percentage increased to 72% during the three months ended March 31, 2021, as compared to 69% during the prior year.

The increase in cost of sales is due partially to an increase in labor costs associated with delivering our newswire and webcasting revenue, an increase in distribution costs as we continue to expand our distribution capabilities as well as an increase in teleconferencing costs.

These increases were offset by decreases in amortization of capitalized software as well as decreases in postage and fulfillment costs associated with our legacy ARS business.

Gross margin percentage associated with our Communications revenue was 73% for the three months ended March 31, 2021 compared to 72% for the same period of 2020.

Gross margin percentage associated with our Compliance revenue was 71% for the three months ended March 31, 2021 compared to 64% for the same period of 2020.

The increase in gross margin percentage was due to an increase in revenue from our transfer agent services as well as a decrease in amortization of capitalized software associated with our disclosure software as well as a decrease in postage and fulfillment costs associated with our legacy ARS business.

Compliance cost of revenue consists primarily of direct labor costs, warehousing, logistics, print production materials, postage, and amortization of capitalized software costs related to our disclosure software.

Cost of revenues increased by $118,000, or 9%, and $259,000, or 10%, during the three and six-month periods ended June 30, 2021, respectively, as compared to the same periods of 2020.

Overall gross margin increased $718,000, or 20%, and $1,541,000, or 25%, during the three and six-month periods ended June 30, 2021, respectively, as compared to the same periods of the prior year.

Gross margin percentages increased to 74% and 73% during the three and six months ended June 30, 2021, respectively, compared to 72% and 71% during the same periods of 2020.

Gross margin percentage from Communications revenue was 75% and 74% during the three and six-month periods ended June 30, 2021, respectively, as compared to 75% and 73% during the same periods of 2020.

Gross margins from our Compliance revenue increased to 72% during both the three and six-month periods ended June 30, 2021, respectively, as compared to 68% and 66% during the same periods of 2020.

The increase in gross margin percentage was due to an increase in revenue from our transfer agent services as well as a decrease in amortization of capitalized software associated with our disclosure software and a decrease in postage and fulfillment costs associated with our legacy ARS business.

Operating Expenses

General and Administrative Expense

General and administrative expenses consist primarily of salaries, bonuses, stock-based compensation, insurance, fees for professional services, general corporate expenses (including bad debt expense) and facility and equipment expenses.

General and administrative expenses were $1,404,000 for the three months ended March 31, 2021, an increase of $188,000 or 15%, as compared to the same period of the prior year.

The increase is due to higher personnel expenses and professional fees offset by a decrease in bad debt expense.

As a percentage of revenue, General and Administrative expenses were 28% for the three months ended March 31, 2021, as compared to 30% for the same period of 2020.

General and administrative expenses were $1,261,000 and $2,665,000 during the three and six months ended June 30, 2021, an increase of $64,000, or 5%, and $252,000, or 10%, compared to the same periods of the prior year.

The increase is primarily due to higher personnel expenses, insurance expense and professional fees during the three and six months ended June 30, 2021.

Additionally, for the three months ended June 30, 2021, the increase is attributable to higher bad debt expense.

As a percentage of revenue, general and administrative expenses were 22% and 25% for the three and six-month periods ended June 30, 2021, respectively, a decrease from 25% and 27% for the same periods of 2020.

Sales and Marketing Expenses

Sales and marketing expenses consist primarily of salaries, stock-based compensation, sales commissions, advertising expenses, tradeshow expenses and other marketing expenses.

Sales and marketing expenses were $1,074,000 for the three months ended March 31, 2021, an increase of $178,000, or 20%, as compared to the same period of 2020.

This increase is directly related to our investment in our sales and marketing initiatives with an increase in headcount, commissions and digital marketing offset by a decrease in sales consulting costs.

As a percentage of revenue, Sales and marketing expenses were 22% for the three months ended March 31, 2021 and 2020.

Product Development

Sales and marketing expenses were $1,210,000 and $2,284,000 for the three and six-month periods ended June 30, 2021, respectively, an increase of $260,000, or 27%, and $438,000, or 24%, compared to the same periods ended June 30, 2020.

These increases are directly related to our investment in our sales and marketing initiatives with an increase in headcount, commissions and digital marketing.

As a percentage of revenue, sales and marketing expenses were 21% during both the three and six-month periods ended June 30, 2021, respectively, compared to 19% and 21% for the same periods of the prior year.

Product Development Expenses

Product Development expenses consist primarily of salaries, stock-based compensation, bonuses and licenses to develop new products and technology to complement and/or enhance Platform id .

Product development costs increased $55,000, or 28%, to $249,000 during the three months ended March 31, 2021, as compared to 2020.

The increase is due to an increase in headcount within the development team.

As a percentage of revenue, Product development expenses were 5% for the three months ended March 31, 2021 and 2020.

Product development expenses increased $91,000, or 55%, and $146,000, or 41%, during the three and six-month periods ended June 30, 2021, compared to the same periods in 2020.

The increase is due to an increase in headcount within the development team and use of more specialized consultants.

We anticipate product development expenses to increase relative to previous periods.

During the three and six month periods ended June 30, 2021, we capitalized $161,000 of costs related to the development of our newsroom product, which launched in July 2021.

No costs were capitalized during the three and six months ended June 30, 2020.

As a percentage of revenue, product development expenses were 4% and 5% for the three and six-month periods ended June 30, 2021, respectively, compared to 3% and 4% during the same periods of 2020.

Depreciation and Amortization

During the three months ended March 31, 2021, Depreciation and amortization expenses decreased by $57,000, or 27%, to $152,000, as compared to $209,000 during the same period of the prior year.

The decrease is primarily related to intangible assets associated with the acquisition of PIR that became fully amortized during the prior year.

Depreciation and amortization expenses decreased $57,000, or 27%, and $114,000, also 27%, during the three and six-month periods ended June 30, 2021, respectively, as compared to the same periods of 2020.

The decrease is primarily related to intangible assets associated with the PIR acquisition that became fully amortized in the prior year.

Interest income, net

Interest income, net, represents interest income on deposit and money market accounts, as well as for the prior year, the non-cash interest expense associated with the present value of the remaining anniversary payments of the Interwest acquisition.

The decrease in interest income during the three months ended March 31, 2021, as compared to the same period of the prior year, is due to a decrease in interest rates associated with deposit and money market accounts.

We recorded income tax expense of $163,000 during the three months ended March 31, 2021, compared to $80,000 during the same period of 2020.

The increase in income tax expense is attributable to higher pre-tax income for the three months ended March 31, 2021.

The difference between the Company’s effective tax rate of 23% and the federal statutory rate of 21% is primarily due to state taxes, partially offset by a benefit related to the Foreign Derived Intangible Income (“FDII”) deduction as well as foreign rate differentials.

Interest income, net, represents interest income on deposit and money market accounts, as well as for the prior year, the non-cash interest associated with the present value of the remaining anniversary payments of the Interwest acquisition.

The decrease in interest income during the three and six months ended June 30, 2021, as compared to the same periods of the prior year, is due to a decrease in interest rates associated with the deposit and money market accounts.

Income tax (benefit) expense

We recognized income tax expense of $256,000 and $419,000 during the three and six-month periods ended June 30, 2021, respectively, compared to $230,000 and $310,000 during the same periods of 2020.

The increase in income tax expense during the periods is due to an increase in pre-tax income partially offset by an excess stock-based compensation tax benefit of $67,000 during the three months ended June 30, 2021.

For the three and six-month period ended June 30, 2021, the variance between the Company’s effective tax rate and the U.S.

statutory rate of 21% is primarily attributable to state income taxes, partially offset by the excess stock-based compensation tax benefit as well as foreign statutory tax rate differentials.

Liquidity and Capital Resources

As of March 31, 2021, we had $20,548,000 in cash and cash equivalents and $2,966,000 in net accounts receivable.

Current liabilities as of March 31, 2021, totaled $5,428,000 including our accounts payable, deferred revenue, accrued payroll liabilities, income taxes payable, current portion of lease liabilities and other accrued expenses.

On March 31, 2021, our current assets exceeded our current liabilities by $18,469,000.

Effective October 3, 2019, the Company renewed its Line of Credit, which increased the term to two years, with all other provisions remaining the same.

As of June 30, 2021, we had $21,159,000 in cash and cash equivalents and $3,599,000 in net accounts receivable.

Current liabilities at June 30, 2021, totaled $5,489,000 including our accounts payable, deferred revenue, accrued payroll liabilities, income taxes payable, current portion of lease liabilities and other accrued expenses.

At June 30, 2021, our current assets exceeded our current liabilities by $19,751,000.

Effective October 3, 2019, the Company renewed its unsecured Line of Credit, which increased the term to two years, with all other provisions remaining the same.

The amount of funds available for borrowing are $3,000,000 and the interest rate is LIBOR plus 1.75%.

As of March 31, 2021, the interest rate was 1.86% and the Company did not owe any amounts on the Line of Credit.

Disclosure about Off-Balance Sheet Arrangements

We do not have any transactions, agreements or other contractual arrangements that constitute off-balance sheet arrangements.

As of June 30, 2021, the interest rate was 1.84% and the Company did not owe any amounts on the Line of Credit.

The following statements and certain statements made elsewhere in this document are based upon current expectations.

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Overall, the demand for our platforms and services continues to be stable in a majority of the segments we serve.

We are seeing increased demand for virtual events using both our conference software and webcasting products, as customers are opting to hold virtual meetings.

Since the COVID-19 pandemic began, we are seeing increased demand for virtual events using both our conference software and webcasting products, as customers are opting to hold virtual meetings.

During the first and second quarter of 2020, we were able to pivot portions of our platform to specifically address COVID-19 business limitations.

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We believe these developments will assist us not only in delivering attractive solutions to the market, but also lead us into new opportunities during this changing and challenging environment.

The extent to how long these shifts in demands will occur is uncertain at this time and could be longer than just 2020 and the early part of 2021.

The extent to how long these shifts in demands will occur is uncertain at this time and could be longer than just 2020 and first part of 2021.

However, we cannot make any assurances at this time that our product upgrades will be accepted by customers and revenue will be significant enough to offset losses in other aspects of our business in the long-term.

The transition to a platform subscription model has been and will continue to be key for our long-term sustainable growth.

We will also continue to focus on the following key strategic initiatives during 2021:

Continue to expand our Communications products and adapt to this changing environment,

Continue to grow through acquisitions in areas of strategic focus,

Continue to expand our Communications sales and marketing teams and digital marketing strategy,

Continue to expand customer base,

Continue to expand our newswire distribution,

Invest in technology advancements and upgrades,

Generate profitable sustainable growth

Generate cash flows from operations.

We will also continue to focus on the following key strategic initiatives during the remainder of 2021:

Expanding our Communications products and adapt to this changing environment,

Growing through acquisitions in areas of strategic focus,

Expanding our Communications sales and marketing teams and digital marketing strategy,

Expanding customer base,

Expanding our newswire distribution,

Investing in technology advancements and upgrades,

Generating profitable sustainable growth

Generating cash flows from operations.

We believe there is significant demand for our products around the world among the middle, small and micro-cap markets, as well as private companies, as they seek to find better platforms and tools to disseminate and communicate their messages.

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We have invested and will continue to invest in our product sets, platforms and intellectual property development via internal development and acquisitions.

Acquisitions remain a core part of our strategy and we believe acquisitions are key to enhancing our overall offerings in the market and necessary to keep our competitive advantages and facilitate the next round of growth that management believes it can achieve.

Acquisitions remain a core part of our strategy and we believe acquisitions are key to enhancing our overall offerings in the market and are necessary to keep our competitive advantages and facilitate the next round of growth that management believes it can achieve.

If we are successful in this effort, we believe we can further increase our market share and revenues per user as we move forward.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis