Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001088034 | |
Entity Registrant Name | Usio, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-30152 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 98-0190072 | |
Entity Address, Address Line One | 3611 Paesanos Parkway, Suite 300 | |
Entity Address, City or Town | San Antonio | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78231 | |
City Area Code | 210 | |
Local Phone Number | 249-4100 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | USIO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,536,638 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 6,763,813 | $ 5,709,117 |
Accounts receivable, net | 5,218,249 | 4,371,640 |
Settlement processing assets | 42,586,985 | 49,737,068 |
Prepaid card load assets | 18,812,954 | 20,170,761 |
Customer deposits | 1,575,075 | 1,554,122 |
Inventory | 494,457 | 507,355 |
Prepaid expenses and other | 461,005 | 450,389 |
Current assets before merchant reserves | 75,912,538 | 82,500,452 |
Merchant reserves | 4,744,615 | 4,909,501 |
Total current assets | 80,657,153 | 87,409,953 |
Property and equipment, net | 3,139,932 | 3,222,816 |
Other assets: | ||
Intangibles, net | 2,407,393 | 2,625,360 |
Deferred tax asset, net | 1,504,000 | 1,504,000 |
Operating lease right-of-use assets | 2,826,942 | 2,795,483 |
Other assets | 355,358 | 355,357 |
Total other assets | 7,093,693 | 7,280,200 |
Total assets | 90,890,778 | 97,912,969 |
Current liabilities: | ||
Accounts payable | 851,824 | 858,622 |
Accrued expenses | 4,856,157 | 3,721,108 |
Operating lease liabilities, current portion | 537,034 | 617,319 |
Equipment loan, current portion | 57,380 | 56,429 |
Settlement processing obligations | 42,586,985 | 49,737,068 |
Prepaid card load obligations | 18,812,954 | 20,170,761 |
Customer deposits | 1,575,075 | 1,554,122 |
Current liabilities before merchant reserve obligations | 69,277,409 | 76,715,429 |
Merchant reserve obligations | 4,744,615 | 4,909,501 |
Total current liabilities | 74,022,024 | 81,624,930 |
Non-current liabilities: | ||
Equipment loan, non-current portion | 0 | 14,994 |
Operating lease liabilities, non-current portion | 2,423,780 | 2,338,947 |
Total liabilities | 76,445,804 | 83,978,871 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at March 31, 2023 (unaudited) and December 31, 2022, respectively | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized; 28,466,150 and 27,044,900 issued, and 26,514,903 and 25,097,963 outstanding at March 31, 2023 (unaudited) and December 31, 2022, respectively | 196,892 | 195,471 |
Additional paid-in capital | 96,687,132 | 94,048,603 |
Treasury stock, at cost; 1,951,247 and 1,946,937 shares at March 31, 2023 (unaudited) and December 31, 2022, respectively | (3,757,556) | (3,749,027) |
Deferred compensation | (7,833,278) | (5,697,900) |
Accumulated deficit | (70,848,216) | (70,863,049) |
Total stockholders’ equity | 14,444,974 | 13,934,098 |
Total liabilities and stockholders’ equity | $ 90,890,778 | $ 97,912,969 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 28,466,150 | 27,044,900 |
Common stock, outstanding (in shares) | 26,514,903 | 25,097,963 |
Treasury stock, shares (in shares) | 1,951,247 | 1,946,937 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | $ 21,446,244 | $ 18,111,343 |
Cost of services | 16,544,429 | 14,602,214 |
Gross profit | 4,901,815 | 3,509,129 |
Selling, general and administrative: | ||
Stock-based compensation | 504,574 | 550,682 |
Other SG&A expenses | 3,873,219 | 3,795,146 |
Depreciation and amortization | 518,029 | 714,935 |
Total selling, general and administrative expenses | 4,895,822 | 5,060,763 |
Operating (loss) | 5,993 | (1,551,634) |
Other income and (expense): | ||
Interest income | 92,928 | 581 |
Interest expense | (662) | (1,217) |
Other income and (expense), net | 92,266 | (636) |
Income (Loss) before income taxes | 98,259 | (1,552,270) |
Income tax expense | 83,426 | 70,000 |
Net income (Loss) | $ 14,833 | $ (1,622,270) |
Income (Loss) Per Share | ||
Basic income (loss) per common share: (in dollars per share) | $ 0 | $ (0.08) |
Diluted income (loss) per common share: (in dollars per share) | $ 0 | $ (0.08) |
Weighted average common shares outstanding | ||
Basic (in shares) | 20,122,972 | 20,280,575 |
Diluted (in shares) | 26,508,872 | 20,280,575 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income (loss) | $ 14,833 | $ (1,622,270) |
Adjustments to reconcile net income (loss) to net cash (used) by operating activities: | ||
Depreciation | 300,061 | 246,968 |
Amortization | 217,968 | 467,967 |
Stock-based compensation | 504,574 | 550,682 |
Amortization of warrant costs | 0 | 8,985 |
Changes in current assets and current liabilities: | ||
Accounts receivable | (846,609) | 802,999 |
Prepaid expenses and other | (10,616) | (254,507) |
Operating lease right-of-use assets | (31,459) | 118,719 |
Other assets | (1) | 0 |
Inventory | 12,898 | 4,247 |
Accounts payable and accrued expenses | 1,128,251 | 299,720 |
Operating lease liabilities | 4,548 | (122,594) |
Prepaid card load obligations | (1,357,807) | (7,743,913) |
Merchant reserves | (164,886) | 5,000 |
Customer deposits | 20,953 | 27,272 |
Deferred revenue | 0 | (13,235) |
Net cash (used) by operating activities | (207,292) | (7,223,960) |
Investing activities: | ||
Purchases of property and equipment | (217,735) | (72,069) |
Net cash (used) by investing activities | (217,735) | (72,069) |
Financing activities: | ||
Payments on equipment loan | (13,488) | (13,488) |
Purchases of treasury stock | (8,529) | (66,494) |
Net cash (used) by financing activities | (22,017) | (79,982) |
Change in cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves | (447,044) | (7,376,011) |
Cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves, beginning of period | 32,343,501 | 51,591,560 |
Cash, Cash Equivalents, Prepaid Card Load Assets, Customer Deposits and Merchant Reserves, End of Period | 31,896,457 | 44,215,549 |
Supplemental disclosure of cash flow information: | ||
Interest | 662 | 1,217 |
Income taxes | 13,426 | 0 |
Non-cash transactions: | ||
Issuance of deferred stock compensation | $ 2,444,054 | $ 12,330 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Deferred Compensation, Share-Based Payments [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 26,807,145 | |||||
Balance at Dec. 31, 2021 | $ 195,235 | $ 93,100,129 | $ (2,404,458) | $ (6,842,195) | $ (65,379,805) | $ 18,668,906 |
Issuance of common stock under equity incentive plan (in shares) | 61,600 | |||||
Issuance of common stock under equity incentive plan | $ 62 | 267,856 | 0 | (12,330) | 0 | 255,588 |
Deferred compensation amortization | 295,092 | 295,092 | ||||
Purchase of treasury stock costs | 0 | 0 | (66,494) | 0 | 0 | (66,494) |
Net income (loss) | 0 | 0 | 0 | 0 | (1,622,270) | (1,622,270) |
Warrant compensation costs | $ 0 | 8,985 | 0 | 0 | 0 | 8,985 |
Balance (in shares) at Mar. 31, 2022 | 26,868,745 | |||||
Balance at Mar. 31, 2022 | $ 195,297 | 93,376,970 | (2,470,952) | (6,559,433) | (67,002,075) | 17,539,807 |
Balance (in shares) at Dec. 31, 2022 | 27,044,900 | |||||
Balance at Dec. 31, 2022 | $ 195,471 | 94,048,603 | (3,749,027) | (5,697,900) | (70,863,049) | 13,934,098 |
Issuance of common stock under equity incentive plan (in shares) | 1,421,250 | |||||
Issuance of common stock under equity incentive plan | $ 1,421 | 2,638,529 | 0 | (2,444,054) | 0 | 195,896 |
Deferred compensation amortization | 308,676 | 308,676 | ||||
Purchase of treasury stock costs | 0 | 0 | (8,529) | 0 | 0 | (8,529) |
Net income (loss) | $ 0 | 0 | 0 | 0 | 14,833 | 14,833 |
Balance (in shares) at Mar. 31, 2023 | 28,466,150 | |||||
Balance at Mar. 31, 2023 | $ 196,892 | $ 96,687,132 | $ (3,757,556) | $ (7,833,278) | $ (70,848,216) | $ 14,444,974 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | Note 1. The accompanying unaudited interim condensed consolidated financial statements of Usio, Inc. and its subsidiaries (collectively, the “Company”) have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company's financial position, results of operations and cash flows for such periods. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's annual report on Form 10 December 31, 2022, March 8, 2023. not may three March 31, 2023 2022 may Use of Estimates: Revenue Recognition: 606 10 may may third 45 30 not The following table presents the Company's consolidated revenues by source: Three Months Ended March 31, 2023 2022 ACH and complementary service revenue $ 3,340,722 $ 3,843,316 Credit card revenue 7,339,898 6,768,222 Prepaid card services revenue 4,807,404 2,768,447 Output solutions revenue 5,958,220 4,731,358 Total revenue $ 21,446,244 $ 18,111,343 Cash and Cash Equivalents: 90 Settlement Processing Assets and Obligations: Prepaid Card Load Assets: Customer Deposits: not Merchant Reserves: may not The reconciliation of cash and cash equivalents to cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves is as follows for each period presented: Three Months Ended March 31, 2023 2022 Beginning cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves: Cash and cash equivalents $ 5,709,117 $ 7,255,321 Prepaid card load assets 20,170,761 36,590,893 Customer deposits 1,554,122 1,364,193 Merchant reserves 4,909,501 6,381,153 Total $ 32,343,501 $ 51,591,560 Ending cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves: Cash and cash equivalents $ 6,763,813 $ 7,590,951 Prepaid card load assets 18,812,954 28,846,980 Customer deposits 1,575,075 1,391,465 Merchant reserves 4,744,615 6,386,153 Total $ 31,896,457 $ 44,215,549 Allowance for Estimated Losses: three March 31, 2023 December 31, 2022 no may March 31, 2023 December 31, 2022 Inventory March 31, 2023 December 31, 2022, Accounting for Internal Use Software: no three March 31, 2023 March 31, 2022 Valuation of Long-Lived and Intangible Assets: may not may not 2022 three March 31, 2023 not may Reserve for Processing Losses: one not may may March 31, 2023, not March 31, 2023 December 31, 2022 Legal Proceedings: may not no not Recently Adopted Accounting Pronouncements June 2016, No. 2016 13, Financial Instruments - Credit Losses 326 326 326 December 15, 2022, January 1, 2023, not Accounting standards that have been issued or proposed by the FASB, the SEC or other standard setting bodies that do not not |
Note 2 - Leases
Note 2 - Leases | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 2. The Company leases facilities and office equipment under various operating leases, which generally are expected to be renewed or replaced by other leases. For each of the three March 31, 2023 2022 |
Note 3 - Accrued Expenses
Note 3 - Accrued Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 3. Accrued expenses consisted of the following balances: March 31, 2023 December 31, 2022 Accrued commissions $ 3,190,497 $ 1,479,580 Reserve for processing losses 386,789 755,494 Other accrued expenses 752,687 821,167 Accrued taxes 387,152 320,854 Accrued salaries 139,032 344,013 Total accrued expenses $ 4,856,157 $ 3,721,108 |
Note 4 - Equipment Loan
Note 4 - Equipment Loan | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 4. On March 20, 2021, March 20, 2024 three March 31, 2023 2022 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | Note 5. Stock Warrants August 21, 2018, first October 5, 2018; July 31, 2019 July 31, 2022. 30,000 one hundred twenty 30,000 120,000 2.77%; 0%; three March 31, 2023 2022 July 31, 2022, no On August 12, 2020, On February 5, 2021, On September 1, 2021, On December 15, 2020, three December 15, 2021 December 15, 2023. $0.58; 0.09%; 0%; five three March 31, 2023 2022 |
Note 6 - Net Income (Loss) Per
Note 6 - Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 6. Basic income (loss) per share (EPS) was computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversion of potentially dilutive awards and options that were outstanding during the period. The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income (loss) for the three March 31, 2023 March 31, 2022 Three Months Ended March 31, 2023 2022 Numerator: Numerator for basic and diluted income (loss) per share, net income (loss) available to common shareholders $ 14,833 $ (1,622,270 ) Denominator: Denominator for basic income (loss) per share, weighted average shares outstanding 20,122,972 20,280,575 Effect of dilutive securities 6,385,900 — Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion 26,508,872 20,280,575 Basic income (loss) per common share $ 0.00 $ (0.08 ) Diluted income (loss) per common share and common share equivalent $ 0.00 $ (0.08 ) The awards and options to purchase shares of common stock that were outstanding at March 31, 2023 March 31, 2022 not Three Months Ended March 31, 2023 2022 Anti-dilutive awards and options 6,385,900 5,244,902 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 7. Deferred tax assets and liabilities are recorded based on the difference between financial reporting and tax basis of assets and liabilities and are measured by the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Deferred tax assets are computed with the presumption that they will be realizable in future periods when taxable income is generated. Predicting the ability to realize these assets in future periods requires judgment by management. U.S. generally accepted accounting principles prescribe a recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Income tax benefits that meet the “more likely than not” The Company has recognized a net deferred tax asset of approximately $1.5 million and has recorded a valuation allowance of approximately $4.6 million against the other deferred tax assets. The Company reviews the assessment of the deferred tax asset and valuation allowance on an annual basis or more often when events indicate that a change to the valuation allowance may At December 31, 2022 2017 20 Net operating loss carryforwards totaling $9.1 million expired in 2022. 2017 may Tax Year End NOL Expiration 2004 $ 1,621,096 2024 2005 1,788,157 2025 2006 1,350,961 2026 2007 1,740,724 2027 2008 918,960 2028 2009 835,322 2029 2010 429,827 2030 2013 504,862 2033 2016 474,465 2036 2017 1,267,336 2037 Total $ 10,931,710 Management is not |
Note 8 - Related Party Transact
Note 8 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 8. Louis Hoch During the three March 31, 2023 March 31, 2022 Directors and Officers On January 6, 2022 , January 6, 2022 Effective on February 17, 2023 , $250,000; one The Company granted 1,403,000 shares of restricted common stock with a 10-year vesting period and 273,000 restricted stock units (RSUs) with a 3-year vesting period to employees and Directors as a performance bonus on February 8, 2023 The Company granted 69,000 RSUs with a 3-year vesting period to Directors as a performance bonus on March 16, 2023 |
Note 9 - COVID-19
Note 9 - COVID-19 | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Effect of Covid-19 Pandemic [Text Block] | Note 9. 19 The ongoing COVID- 19 not 19 19, During 2020 2021, 19 In April May 2020, Since 2020, Due to the COVID- 19 may The impacts and recovery from the COVID- 19 not |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: |
Revenue [Policy Text Block] | Revenue Recognition: 606 10 may may third 45 30 not The following table presents the Company's consolidated revenues by source: Three Months Ended March 31, 2023 2022 ACH and complementary service revenue $ 3,340,722 $ 3,843,316 Credit card revenue 7,339,898 6,768,222 Prepaid card services revenue 4,807,404 2,768,447 Output solutions revenue 5,958,220 4,731,358 Total revenue $ 21,446,244 $ 18,111,343 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: 90 |
Credit Card Origination Costs, Policy [Policy Text Block] | Settlement Processing Assets and Obligations: |
Prepaid Card Load Assets, Policy [Policy Text Block] | Prepaid Card Load Assets: |
Customer Deposits [Policy Text Block] | Customer Deposits: not |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Merchant Reserves: may not The reconciliation of cash and cash equivalents to cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves is as follows for each period presented: Three Months Ended March 31, 2023 2022 Beginning cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves: Cash and cash equivalents $ 5,709,117 $ 7,255,321 Prepaid card load assets 20,170,761 36,590,893 Customer deposits 1,554,122 1,364,193 Merchant reserves 4,909,501 6,381,153 Total $ 32,343,501 $ 51,591,560 Ending cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves: Cash and cash equivalents $ 6,763,813 $ 7,590,951 Prepaid card load assets 18,812,954 28,846,980 Customer deposits 1,575,075 1,391,465 Merchant reserves 4,744,615 6,386,153 Total $ 31,896,457 $ 44,215,549 |
Receivable [Policy Text Block] | Allowance for Estimated Losses: three March 31, 2023 December 31, 2022 no may March 31, 2023 December 31, 2022 |
Inventory, Policy [Policy Text Block] | Inventory March 31, 2023 December 31, 2022, |
Internal Use Software, Policy [Policy Text Block] | Accounting for Internal Use Software: no three March 31, 2023 March 31, 2022 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Valuation of Long-Lived and Intangible Assets: may not may not 2022 three March 31, 2023 not may |
Contingent Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Processing Losses: one not may may March 31, 2023, not March 31, 2023 December 31, 2022 |
Legal Costs, Policy [Policy Text Block] | Legal Proceedings: may not no not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements June 2016, No. 2016 13, Financial Instruments - Credit Losses 326 326 326 December 15, 2022, January 1, 2023, not Accounting standards that have been issued or proposed by the FASB, the SEC or other standard setting bodies that do not not |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2023 2022 ACH and complementary service revenue $ 3,340,722 $ 3,843,316 Credit card revenue 7,339,898 6,768,222 Prepaid card services revenue 4,807,404 2,768,447 Output solutions revenue 5,958,220 4,731,358 Total revenue $ 21,446,244 $ 18,111,343 |
Schedule of Cash and Cash Equivalents [Table Text Block] | Three Months Ended March 31, 2023 2022 Beginning cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves: Cash and cash equivalents $ 5,709,117 $ 7,255,321 Prepaid card load assets 20,170,761 36,590,893 Customer deposits 1,554,122 1,364,193 Merchant reserves 4,909,501 6,381,153 Total $ 32,343,501 $ 51,591,560 Ending cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves: Cash and cash equivalents $ 6,763,813 $ 7,590,951 Prepaid card load assets 18,812,954 28,846,980 Customer deposits 1,575,075 1,391,465 Merchant reserves 4,744,615 6,386,153 Total $ 31,896,457 $ 44,215,549 |
Note 3 - Accrued Expenses (Tabl
Note 3 - Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | March 31, 2023 December 31, 2022 Accrued commissions $ 3,190,497 $ 1,479,580 Reserve for processing losses 386,789 755,494 Other accrued expenses 752,687 821,167 Accrued taxes 387,152 320,854 Accrued salaries 139,032 344,013 Total accrued expenses $ 4,856,157 $ 3,721,108 |
Note 6 - Net Income (Loss) Pe_2
Note 6 - Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2023 2022 Numerator: Numerator for basic and diluted income (loss) per share, net income (loss) available to common shareholders $ 14,833 $ (1,622,270 ) Denominator: Denominator for basic income (loss) per share, weighted average shares outstanding 20,122,972 20,280,575 Effect of dilutive securities 6,385,900 — Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion 26,508,872 20,280,575 Basic income (loss) per common share $ 0.00 $ (0.08 ) Diluted income (loss) per common share and common share equivalent $ 0.00 $ (0.08 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, 2023 2022 Anti-dilutive awards and options 6,385,900 5,244,902 |
Note 7 - Income Taxes (Tables)
Note 7 - Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Summary of Operating Loss Carryforwards [Table Text Block] | Tax Year End NOL Expiration 2004 $ 1,621,096 2024 2005 1,788,157 2025 2006 1,350,961 2026 2007 1,740,724 2027 2008 918,960 2028 2009 835,322 2029 2010 429,827 2030 2013 504,862 2033 2016 474,465 2036 2017 1,267,336 2037 Total $ 10,931,710 |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 319,000 | $ 319,000 | ||
Capitalized Computer Software, Additions | 207,732 | $ 136,864 | ||
Asset Impairment Charges | 0 | 0 | ||
Merchant Processing Losses | 833,485 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 755,494 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 200,000 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | 386,789 | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 386,789 | $ 755,494 | $ 755,494 |
Note 1 - Basis of Presentatio_3
Note 1 - Basis of Presentation - Schedule of Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | $ 21,446,244 | $ 18,111,343 |
ACH and Complementary Service Revenue [Member] | ||
Revenues | 3,340,722 | 3,843,316 |
Credit Card Revenue [Member] | ||
Revenues | 7,339,898 | 6,768,222 |
Prepaid Card Services Revenue [Member] | ||
Revenues | 4,807,404 | 2,768,447 |
Output Solutions [Member] | ||
Revenues | $ 5,958,220 | $ 4,731,358 |
Note 1 - Basis of Presentatio_4
Note 1 - Basis of Presentation - Reconciliation of Cash and Cash Equivalents to Cash, Cash Equivalents and Merchant Reserves (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Cash and cash equivalents | $ 5,709,117 | $ 7,590,951 | $ 7,255,321 | ||
Prepaid card load assets | 20,170,761 | 28,846,980 | 36,590,893 | ||
Customer deposits | 1,554,122 | 1,391,465 | 1,364,193 | ||
Merchant reserves | 4,909,501 | 6,386,153 | 6,381,153 | ||
Cash, cash equivalents, prepaid card load assets, customer deposits and merchant reserves, beginning of period | 32,343,501 | $ 44,215,549 | $ 51,591,560 | 44,215,549 | 51,591,560 |
Cash and cash equivalents | 6,763,813 | 5,709,117 | 7,590,951 | ||
Prepaid card load assets | 18,812,954 | 20,170,761 | 28,846,980 | ||
Customer deposits | 1,575,075 | 1,554,122 | 1,391,465 | ||
Merchant reserves | 4,744,615 | 4,909,501 | 6,386,153 | ||
Cash, Cash Equivalents, Prepaid Card Load Assets, Customer Deposits and Merchant Reserves, End of Period | $ 31,896,457 | $ 32,343,501 | $ 44,215,549 | $ 51,591,560 | $ 44,215,549 |
Note 2 - Leases (Details Textua
Note 2 - Leases (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Lease, Expense | $ 179,901 | $ 120,151 |
Note 3 - Accrued Expenses - Sum
Note 3 - Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued commissions | $ 3,190,497 | $ 1,479,580 | |
Reserve for processing losses | 386,789 | $ 755,494 | 755,494 |
Other accrued expenses | 752,687 | 821,167 | |
Accrued taxes | 387,152 | 320,854 | |
Accrued salaries | 139,032 | 344,013 | |
Total accrued expenses | $ 4,856,157 | $ 3,721,108 | $ 3,721,108 |
Note 4 - Equipment Loan (Detail
Note 4 - Equipment Loan (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 20, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Repayments of Long-Term Debt | $ 13,488 | $ 13,488 | |
Debit Arrangement to Finance Purchase of Output Solutions Sorter [Member] | |||
Debt Instrument, Face Amount | $ 165,996 | ||
Debt Instrument, Term (Month) | 36 months | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||
Debt Instrument, Periodic Payment, Total | $ 4,902 | ||
Repayments of Long-Term Debt | $ 13,488 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Details Textual) | 3 Months Ended | |||||||
Sep. 01, 2021 $ / shares shares | Feb. 05, 2021 $ / shares shares | Dec. 15, 2020 USD ($) $ / shares shares | Aug. 12, 2020 $ / shares shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Oct. 05, 2018 $ / shares shares | Aug. 21, 2018 USD ($) $ / shares shares | |
Warrants and Rights Outstanding, Reduction of Revenue During Period | $ | $ 0 | $ 8,985 | ||||||
Measurement Input, Risk Free Interest Rate [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.0277 | |||||||
Measurement Input, Expected Term [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 5 | |||||||
Measurement Input, Expected Dividend Rate [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | |||||||
Measurement Input, Price Volatility [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.646 | |||||||
Common Stock Warrants [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 150,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 5.97 | $ 5.88 | $ 3.46 | |||||
Warrants and Rights Outstanding | $ | $ 135,764 | |||||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | 19,950 | 19,795 | 27,051 | |||||
Class of Warrant or Right, Number of Warrants Exercised (in shares) | 30,000 | 30,000 | 60,000 | |||||
Common Stock Warrants, Tranche One [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 30,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.80 | |||||||
Common Stock Warrants, Tranche One [Member] | Measurement Input, Share Price [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.94 | |||||||
Common Stock Warrants, Tranche Two through Five [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 120,000 | 120,000 | ||||||
Warrants and Rights Outstanding, Term (Year) | 4 years | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights, Maximum Percentage of Market Price of Common Stock | 120% | |||||||
Common Stock Warrants, Tranche Two through Five [Member] | Measurement Input, Share Price [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.90 | |||||||
Common Stock Warrants, Tranche Two through Five [Member] | Maximum [Member] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 2 | |||||||
Common Stock Warrants, Tranche Two [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 30,000 | |||||||
Warrants Issued to Acquire Information Management Solutions, LLC [Member] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 4.23 | |||||||
Warrants and Rights Outstanding | $ | $ 552,283 | |||||||
Class of Warrant or Right, Issued During Period (in shares) | 945,599 | |||||||
Class of Warrant or Right, Vesting Period (Year) | 3 years | |||||||
Class of Warrant or Right, Term Following Vesting (Year) | 5 years | |||||||
Fair Value Adjustment of Warrants | $ | $ 27,614 | $ 27,614 | ||||||
Warrants Issued to Acquire Information Management Solutions, LLC [Member] | Measurement Input, Share Price [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.58 | |||||||
Warrants Issued to Acquire Information Management Solutions, LLC [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.0009 | |||||||
Warrants Issued to Acquire Information Management Solutions, LLC [Member] | Measurement Input, Expected Term [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 5 | |||||||
Warrants Issued to Acquire Information Management Solutions, LLC [Member] | Measurement Input, Expected Dividend Rate [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | |||||||
Warrants Issued to Acquire Information Management Solutions, LLC [Member] | Measurement Input, Price Volatility [Member] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.599 |
Note 6 - Net Income (Loss) Pe_3
Note 6 - Net Income (Loss) Per Share - Earnings Per Share Reconciliation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Numerator for basic and diluted income (loss) per share, net income (loss) available to common shareholders | $ 14,833 | $ (1,622,270) |
Denominator: | ||
Denominator for basic income (loss) per share, weighted average shares outstanding (in shares) | 20,122,972 | 20,280,575 |
Effect of dilutive securities (in shares) | 6,385,900 | 0 |
Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion (in shares) | 26,508,872 | 20,280,575 |
Basic income (loss) per common share (in dollars per share) | $ 0 | $ (0.08) |
Diluted income (loss) per common share and common share equivalent (in dollars per share) | $ 0 | $ (0.08) |
Note 6 - Net Income (Loss) Pe_4
Note 6 - Net Income (Loss) Per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Anti-dilutive awards and options (in shares) | 6,385,900 | 5,244,902 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets, Net of Valuation Allowance | $ 1.5 | |
Deferred Tax Assets, Valuation Allowance | $ 4.6 | |
Operating Loss Carryforwards | $ 23.9 | |
Tax Year 2022 [Member] | ||
Operating Loss Carryforwards | $ 9.1 |
Note 7 - Income Taxes - Schedul
Note 7 - Income Taxes - Schedule of Net Operating Losses (Details) - USD ($) | 12 Months Ended | 168 Months Ended | |||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2004 | Dec. 31, 2017 | |
NOL | $ 1,267,336 | $ 474,465 | $ 504,862 | $ 429,827 | $ 835,322 | $ 918,960 | $ 1,740,724 | $ 1,350,961 | $ 1,788,157 | $ 1,621,096 | $ 10,931,710 |
Note 8 - Related Party Transa_2
Note 8 - Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | |||||
Mar. 16, 2023 | Feb. 17, 2023 | Feb. 08, 2023 | Jan. 06, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Treasury Stock, Value, Acquired, Cost Method | $ 8,529 | $ 66,494 | ||||
Shares Issued, Price Per Share (in dollars per share) | $ 1.60 | $ 1.75 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 69,000 | 273,000 | ||||
Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 10 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 1,403,000 | |||||
Angry Pug Sportswear [Member] | ||||||
Related Party Transaction, Purchases from Related Party | $ 1,835 | $ 19,929 | ||||
Louis Hoch [Member] | Angry Pug Sportswear [Member] | ||||||
Ownership Percentage | 50% | |||||
Chief Financial Officer [Member] | ||||||
Treasury Stock, Shares, Acquired (in shares) | 11,361 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 47,930 | |||||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 4.21 | |||||
Chief Financial Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,000 | |||||
Chief Financial Officer [Member] | Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 200,000 | |||||
Executive Vice President [Member] | ||||||
Annual Base Salary | $ 250,000 | |||||
Employment Agreement, Commissions Percentage | 10% | |||||
Payment of One-time Signing Bonus | $ 40,000 | |||||
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 33,000 | |||||
Chief Executive Officer [Member] | Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 330,000 | |||||
Director One [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 12,000 | |||||
Director One [Member] | Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 100,000 | |||||
Director Two [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 12,000 | |||||
Director Two [Member] | Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 100,000 | |||||
Director Three [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,000 | |||||
Director Four [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,000 | |||||
Director Five [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 21,000 | |||||
Director Six [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 6,000 |