Issuer Direct Announces Second Quarter Results

CARY, N.C., Aug. 10, 2009 (GLOBE NEWSWIRE) -- Issuer Direct Corporation (OTCBB:ISDR), a market innovator of issuer focuses services to public companies, today announced financial results for its second fiscal quarter ended June 30, 2009.

Net income for the quarter ended June 30, 2009 was $268,852, or $0.02 per share on revenues of $765,808, as compared to a net loss of $332,826, or $(0.02) per share on revenues of $450,799 for the comparable period in 2008.

Revenue for the six month period ended June 30, 2009 totaled $1,238,341, a 42% increase over the comparable period in 2008. Net income totaled $360,194, or $0.02 per share, in the six months ended June 30, 2009, as compared to a net loss of $721,365, or $(0.04) per share, in the comparable period in 2008.

"We had a very strong second quarter in terms of both financial results and client segment advancement," said Brian R. Balbirnie, Chairman and Chief Executive Officer of Issuer Direct Corporations. "Our second quarter results were exactly what we anticipated due to the success of our print and proxy service offerings as well as the introduction of our transfer agent service." The Company operates its transfer agent business under the brand Direct Transfer.

About Issuer Direct Corporation:

Issuer Direct Corporation ("IDC") is a market leader and innovator in public company products and services. As an issuer services focused company, Issuer Direct alleviates the complexity of maintaining compliance through integrated products and services that help companies produce and distribute their financial and business communications both online and in print. As a shareholder compliance company; Issuer Direct is dedicated to assisting corporate issuers in an ever-changing regulatory environment and to comply with the myriad of rules imposed by regulatory bodies.

The Issuer Direct logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4547

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at www.sec.gov.


 Unaudited Selected Financial Data

                             Three months ended     Six months ended
                                  June 30               June 30
                           --------------------- ---------------------
  Revenue Streams             2009       2008       2009       2008
  ------------------------ ---------- ---------- ---------- ----------
   Compliance and
    reporting services     $  198,160 $  185,610 $  394,020 $  367,074
   Printing and financial
    communication             189,520    169,898    294,607    239,661
   Fulfillment and
    distribution              144,935     80,391    285,039    114,614
   Software licensing          63,487     14,900     80,919     22,800
   Transfer agent services    169,706         --    183,756         --
                           ---------- ---------- ---------- ----------
  Total                    $  765,808 $  450,799 $1,238,341 $  744,149
                           ========== ========== ========== ==========



                       Issuer Direct Corporation
           Unaudited Consolidated Statements of Operations

                            For the Three Months   For the Six Months
                                 Ended                   Ended
                           --------------------- ---------------------
                            June 30    June 30     June 30   June 30
                              2009       2008       2009      2008
                           ---------- ---------- ---------- ----------

  Revenues
   Compliance and
    reporting services     $  198,160 $  185,610 $  394,020 $  367,074
   Printing and financial
    communication             189,520    169,898    294,607    239,661
   Fulfillment and
    distribution              144,935     80,391    285,039    114,614
   Software licensing          63,487     14,900     80,919     22,800
   Transfer agent services    169,706         --    183,756         --
                           ---------- ---------- ---------- ----------
    Total                     765,808    450,799  1,238,341    744,149
                           ---------- ---------- ---------- ----------

  Cost of services            271,041    284,195    485,041    421,917
                           ---------- ---------- ---------- ----------
  Gross profit                494,767    166,604    753,300    322,232
                           ---------- ---------- ---------- ----------
  Operating costs and
   expenses
   General and
    administrative            138,527    403,881    240,125    864,756
   Sales and marketing
    expenses                   77,391    112,768    132,381    163,543
   Depreciation and
    amortization                9,932      4,831     19,264      9,674
                           ---------- ---------- ---------- ----------
  Total operating costs
   and expenses               225,850    521,480    391,770  1,037,973
                           ---------- ---------- ---------- ----------
  Net operating income
   (loss)                     268,917   (354,876)   361,530   (715,741)
                           ---------- ---------- ---------- ----------
  Other income (expense):
   Interest income
    (expense), net                (65)    22,051     (1,336)    (5,624)
                           ---------- ---------- ---------- ----------
  Total other income              
   (expense)                      (65)    22,051     (1,336)    (5,624)
                           ---------- ---------- ---------- ----------
  Net income (loss)        $  268,852 $ (332,826)$  360,194 $ (721,365)
                           ========== ========== ========== ==========
  Income (loss) per
   share - basic           $     0.02 $    (0.02)$     0.02 $    (0.04)
                           ========== ========== ========== ==========
  Income (loss) per
   share - fully diluted   $     0.02 $    (0.02)$     0.02 $    (0.04)
                           ========== ========== ========== ==========
  Weighted average number
   of common shares
   outstanding - basic      6,748,783 17,243,658 16,187,857 17,028,250
                           ========== ========== ========== ==========
  Weighted average number
   of common shares
   outstanding - fully
   diluted                 16,751,905 17,243,658 16,191,362 17,028,250
                           ========== ========== ========== ==========



                     Issuer Direct Corporation
               Unaudited Consolidated Balance Sheets

                                              June 30,     December 31,
                                               2009           2008
                                            -----------    -----------
         ASSETS

 Current assets:
 Cash and cash equivalents                  $   185,380    $    50,367
 Accounts receivable, (net of allowance
  for doubtful accounts of $45,586
  and $43,764, respectively)                    261,281        165,681
 Security deposits                                6,242          6,242
 Other current assets                            26,766          2,855
                                            -----------    -----------
 Total current assets                           479,669        225,145

 Furniture, equipment and improvements,
 (net of accumulated depreciation                
  of $12,699 and $43,201, respectively)          22,051         15,987
 Other long term assets                              --          2,000
 Intangible assets, (net of accumulated
  amortization and impairment of $184,167
  and $170,500, respectively)                   134,029        147,695
                                            -----------    -----------
 Total assets                               $   635,749    $   390,827
                                            ===========    ===========
     LIABILITIES AND STOCKHOLDERS'
          EQUITY (DEFICIT)

 Current liabilities:
 Accounts payable                           $    80,255    $   143,560
 Accrued expenses                                97,663        128,050
 Note payable - related party                    73,525         73,525
 Notes payable - other                           25,000         64,828
                                            -----------    -----------
 Total liabilities                              276,443        409,963
                                            -----------    -----------

 Stockholders' equity (deficit):
 Preferred stock, $1.00 par value,
  10,000,000 shares authorized                        5              7
   Series A, 60 shares designated, 5 and 7
    shares issued and outstanding as
    June 30, 2009 and December 31, 2009
   Series B, 476,200 shares designated; no
    shares issued and outstanding
 Common stock $.01 par value, 100,000,000
  shares authorized, 16,754,717 and
  18,834,717 shares issued and outstanding
  as of June 30, 2009 and December 31, 2008,
  respectively.                                  16,754         18,834
 Additional paid-in capital                   1,461,338      1,441,006
 Treasury stock, at cost, 4,495 shares           (4,236)        (4,236)
 Accumulated deficit                         (1,114,555)    (1,474,747)
                                            -----------    -----------
 Total stockholders' equity (deficit)           359,306        (19,136)
                                            -----------    -----------
 Total liabilities and stockholders'
  equity (deficit)                          $   635,749    $   390,827
                                            ===========    ===========



                   Issuer Direct Corporation
        Unaudited Consolidated Statement of Cash Flows

                                                   Six months ended
                                                       June 30,
                                                ----------------------
                                                  2009         2008
                                                ---------    ---------
  Cash flows from operating activities:
   Net income (loss)                            $ 360,194    $(721,365)
  Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
    Depreciation and amortization                  19,264        9,674
    Bad debt expense                               26,963           --
    Stock-based expenses                               --      630,899
  Changes in operating assets and liabilities:
    Decrease (increase) in accounts receivable   (122,564)     (98,424)
    Decrease (increase) in deposits
     and prepaids                                 (21,911)      (1,076)
    Increase (decrease) in accounts payable       (63,305)     120,626
    Increase (decrease) in accrued expenses        (5,389)      18,045

                                                ---------    ---------
  Net cash provided by (used in) operating
   activities                                     193,252      (41,621)
                                                ---------    ---------

  Cash flows from investing activities:
  Purchase of property and equipment              (11,661)          --
                                                ---------    ---------
  Net cash used in investing activities           (11,661)          --
                                                ---------    ---------

  Cash flows from financing activities:
  Repurchase of common stock                       (6,750)          --
  Proceeds from sale of common stock                   --       50,000
  Repayments of notes payable                     (39,828)     (10,355)
                                                ---------    ---------
  Net cash provided by (used in) financing
   activities                                     (46,578)      39,645
                                                ---------    ---------

  Net change in cash                              135,013       (1,976)
  Cash - beginning                                 50,367       39,318
                                                ---------    ---------
  Cash - ending                                 $ 185,380    $  37,342
                                                =========    =========
  Supplemental disclosure for non-cash
   investing and financing
   activities:
     Cash paid for interest                     $   1,192    $   1,515
                                                =========    =========
     Cash paid for income taxes                 $      --    $      --
                                                =========    =========
  Non-cash activities:
  Accrued expenses settled by issuance
   of shares                                    $  25,000    $  71,000
  Common shares issued for preferred shares     $       2           --
                                                =========    =========
CONTACT:  Issuer Direct Corporation
          Brian Balbirnie
          (919) 481-4000