What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-11-04 compared with 2021-08-05 · 84 added, 74 removed, 192 unchanged (45% of the section changed)

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consists of several related but distinct Communications and Compliance modules that companies utilize every quarter.

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.

Over the next several years, we expect the Communications portion of our business to continue to increase, both in terms of overall revenue and as compared to the Compliance portion of our business.

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.

Communications revenues were 64% of total revenue during the first nine months of 2021 and 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.

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communications offerings as well as additional offerings that we intend to incorporate into our Communications product lineup.

Within most of our target markets, customers require several individual services and/or software providers to meet their investor relations, communications and compliance needs.

Within most of our target markets, customers require several individual services and/or software providers to meet their investor relations and communications needs.

We believe Platform id.

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Our customers and their service providers utilize Platform id .

and related solutions from document creation all the way to dissemination to regulatory bodies, news outlets, financial platforms and our customer’s shareholders.

and related solutions from document creation all the way to dissemination to regulatory bodies, news outlets, financial platforms and our customers’ shareholders.

Private companies primarily use our news distribution and webcasting products and services to disseminate their message globally.

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subscription, as well as individually to customers around the globe and are further described below.

Our press release offering, which is marketed under the brand ACCESSWIRE , is a cost-effective, news dissemination and media outreach service.

Our press release offering, which is marketed under the brand ACCESSWIRE , is a news dissemination and media outreach service.

The ACCESSWIRE product offering focuses on press release distribution for both private and public companies globally.

We believe ACCESSWIRE is becoming a competitive alternative to the traditional newswires because we have been able to use our technological advancements to allow customers to self-edit releases or use our editorial staff as desired to edit releases.

We believe ACCESSWIRE is becoming a competitive alternative in the newswire industry because we have been able to use our technological advancements to allow customers to self-edit releases or use our editorial staff as desired to edit releases.

We also continue to expand our distribution points, improve our targeting and enhance our analytics reporting.

During 2020 we released a new e-commerce element to our ACCESSWIRE product, whereby customers can self-select their distribution and then register, upload their press release and tell their story in minutes without contacting a sales or operational employee.

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

We believe the above strategy will enable us to continue to add new customers during the remainder of 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 for a designated package of releases.

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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.

Since the beginning of 2021, we have been removing unlimited newswire subscriptions to preserve the per unit pricing of our newswire products.

This strategic change has decreased and may continue to decrease the number of net Platform id.

subscriptions;

however, the majority of these customers remain active, buying packages of releases, resulting in similar or greater average revenue.

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.

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

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.

Our Newsroom suite addresses the needs of our customers looking 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.

Newsroom page – a custom URL, self-publishing system for customers that automatically add ACCESSWIRE news to their newsroom and 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.

Brand Asset Manager is one of the first media file managers built into the press release creation process.

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.

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

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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

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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.

The industry overall has begun to see a reduction in the number of events, specifically annual meetings and deal/non-deal roadshows, as customers are relying on internal enterprise solutions or are returning to pre-pandemic travel and in-person meetings, reducing the need for a virtual component.

However, for the nine months ended September 30, 2021, our events business has increased compared to pre-pandemic results from 2019 but has declined compared to 2020.

We expect this heightened demand for virtual offerings will continue for the remainder of 2021, although, there can be no assurances it will continue in the future and may return to pre-pandemic levels.

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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Additionally, as a commitment to broadening the reach of our webcast platform, we broadcast live all earnings events, whether they are conducted on our platform or not, within our shareholder outreach module, which helps drive new audiences and give companies the ability to view their analytics and engagement of each event.

We believe these analytics, which will be a component of our Insight and Analytics module, will increase the demand for our webcasting platform among the corporate issuer community.

In the first half of 2021, we released the first version of this real-time engagement and analytics dashboard to our customers using Platform id.

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.

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As we expand our platform, it is vital for us to have solutions that service both our core public companies but also a growing segment of private customers.

As a result of COVID-19, most companies have been holding meetings virtually over the past 18 months, which has increased demand for this product.

As a result of COVID-19 and as noted above, most companies have been holding meetings virtually over the past 18 months, which has increased demand for this product.

There can be no assurance that this demand will continue after the end of the pandemic.

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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.

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

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We generate revenues in disclosure both from software and services and, in most cases, customers have both components within their annual agreements, while others pay for services as they are completed.

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

Our Inline XBRL (Inline Extensible Business Reporting Language or “iXBRL”) product now includes upgrades that meet newly mandated SEC disclosure requirements.

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

Whistleblower Hotline

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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 and six months ended June 30, 2021 and 2020:

Comparison of results of operations for the three and nine months ended September 30, 2021 and 2020:

Three months ended

Six months ended

Nine months ended

September 30,

Revenue Streams

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Gross margin %

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.

Total revenue increased by $583,000, or 12%, to $5,465,000 during the three-month period ended September 30, 2021, as compared to $4,882,000 during the same period of 2020.

Total revenue increased by $2,383,000, or 17%, to $16,165,000 during the nine-month period ended September 30, 2021, compared to $13,782,000 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.

Communications revenue increased $330,000, or 10%, and $1,606,000, or 18%, during the three and nine-month periods ended September 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.

ACCESSWIRE revenue for the three and nine months ended September 30, 2021, increased approximately 31% and 37%, 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.

During the three and nine months ended September 30, 2021, we signed 40 and 126 new licenses of Platform id.

with annual contract value of $306,000 and $1,029,000, respectively.

This brings our total subscriptions of Platform id.

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.

to 418 with annual contract value of $3,499,000, as of September 30, 2021, compared to 341 subscriptions with annual contract value of $2,677,000 as of December 31, 2020.

These increases were partially offset by a decrease in revenue from our events and webcasting business due to a lower demand for events, virtual annual meetings and virtual conferences.

While revenue of this product decreased compared to the prior year, a year in which we experienced higher demand as a result of the COVID-19 pandemic, it still remains above the pre-pandemic levels of 2019.

Communications revenue was 67% and 64% of total revenue during the three and nine months ended September 30, 2021, respectively, as compared to 69% and 64% during the same periods of the prior year.

Compliance revenue increased $253,000, or 17%, and $777,000, or 16%, during the three and nine-month periods ended September 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.

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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.

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

Revenue Backlog

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%.

At September 30, 2021, our deferred revenue balance was $2,696,000, which we expect to recognize primarily 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.

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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.

Cost of revenues decreased by $32,000, or 2%, and increased $227,000, or 6%, during the three and nine-month periods ended September 30, 2021, respectively, as compared to the same periods of 2020.

Overall gross margin increased $615,000, or 18%, and $2,156,000, or 22%, during the three and nine-month periods ended September 30, 2021, respectively, as compared to the same periods of the prior year.

Gross margin percentages increased to 75% and 74% during the three and nine months ended September 30, 2021, respectively, compared to 72% and 71% during the same periods of 2020.

Gross margin percentage from Communications revenue increased to 78% and 75% during the three and nine-month periods ended September 30, 2021, respectively, as compared to 74% and 73% during the same periods of 2020.

The increase in gross margin percentage is primarily due to product mix, as a higher percentage of revenue during 2021 is from our newswire business compared to our events and webcasting business which generates a lower gross margin.

Distribution costs were also lower during the period due to the mix of foreign and domestic news dissemination.

Gross margins from our Compliance revenue increased to 69% and 71% for the three and nine-month periods ended September 30, 2021, respectively, as compared to 67% for both periods of 2020.

Operating Expenses

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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 $1,261,000 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.

General and administrative expenses were $1,258,000 and $3,923,000 during the three and nine months ended September 30, 2021, an increase of $206,000, or 20%, and $458,000, or 13%, 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 nine months ended September 30, 2021.

As a percentage of revenue, general and administrative expenses were 23% and 24% for the three and nine-month periods ended September 30, 2021, respectively, compared to 22% and 25% 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 $1,210,000 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.

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

Sales and marketing expenses were $1,349,000 and $3,633,000 for the three and nine-month periods ended September 30, 2021, respectively, an increase of $376,000, or 39%, and $814,000, or 29%, compared to the same periods ended September 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.

As a percentage of revenue, sales and marketing expenses were 25% and 22% during the three and nine-month periods ended September 30, 2021, respectively, compared to 20% for both 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 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.

Product development expenses increased $161,000, or 76%, and $307,000, or 54%, during the three and nine-month periods ended September 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.

We anticipate product development expenses to continue to increase relative to previous periods for the foreseeable future as we continue to update current products and develop new add-ons to Platform id.

During the three and nine-month periods ended September 30, 2021, we capitalized $54,000 and $161,000, respectively, of costs related to the development of our newsroom product, which launched at the end of July 2021.

No costs were capitalized during the three and nine months ended September 30, 2020.

As a percentage of revenue, product development expenses were 7% and 5% for the three and nine-month periods ended September 30, 2021, respectively, compared to 4% during both of the same periods of 2020.

Depreciation and Amortization

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.

Depreciation and amortization expenses decreased $29,000, or 16%, and $143,000, or 24%, during the three and nine-month periods ended September 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 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.

Other income, net

Other income, net, for the three and nine months ended September 30, 2021, primarily represents a benefit of $366,000 related to the employee retention credit enacted under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”).

Also included in this line is interest income on deposit and money market accounts.

For the prior year, other income, net also included the non-cash interest associated with the present value of the remaining anniversary payments of the Interwest acquisition.

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.

We recognized income tax expense of $319,000 and $738,000 for the three and nine-month periods ended September 30, 2021, respectively, compared to $283,000 and $593,000 during the same periods of 2020.

At the end of each interim period, we estimate the effective tax rate we expect to be applicable for the full fiscal year and this rate is applied to our results for the year-to-date period, and then adjusted for any discrete period items.

For the three and nine-month periods ended September 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 tax, partially offset by an excess stock-based compensation benefit, as well as foreign statutory tax rate differentials.

Liquidity and Capital Resources

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.

As of September 30, 2021, we had $22,415,000 in cash and cash equivalents and $3,037,000 in net accounts receivable.

Current liabilities at September 30, 2021, totaled $5,078,000 including our accounts payable, deferred revenue, accrued payroll liabilities, income taxes payable, current portion of lease liabilities and other accrued expenses.

At September 30, 2021, our current assets exceeded our current liabilities by $21,163,000.

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

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

Effective October 3, 2021, the Company renewed its unsecured Line of Credit, which changed the interest rate from LIBOR plus 1.75% to SOFR (Secured Overnight Financing Rate) plus 1.75%.

All other provisions remained the same.

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

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Physical, in-person conferences have been delayed and in the prior year there was a delay in transactions processed by the Depository Trust Company and banks and brokers in our transfer agent business.

However, our ability to pivot and enhance our product offering with our virtual products generated increased revenue during the past year.

However, our ability to pivot and enhance our product offering with our virtual products generated increased revenue over the past 18 months.

Despite the short-term increase in revenue, the concentrations of our customer base within middle, small and micro-cap customers make it reasonably possible that we are vulnerable to the risk of a near-term negative impact related to the COVID-19 pandemic if a substantial portion of these customers are forced to scale back or cease operations.

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

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.

Although we experienced a decline in our webcasting and events business since 2020, we are seeing increased demand from the pre-pandemic period 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 first 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 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.

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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.

Although this demand may decrease or shift in the near term as a result of COVID-19, we believe we have the product sets, platforms, capacity and ability to adapt during these changing times to meet their requirements.

We believe there is significant demand for our products around the world, led by our ACCESSWIRE newswire brand as companies seek to find better platforms and tools to disseminate and communicate their messages in a more efficient and collaborative way.

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

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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