Planet Payment 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document and Entity Information
Entity Registrant Name	Planet Payment Inc
Entity Central Index Key	1362925
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		54,258,750
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$11,313,689	$9,837,791
Restricted cash	3,680,925	4,167,560
Accounts receivable, net of allowances of $0.1 million as of March 31, 2015 and December 31, 2014, respectively	7,358,715	6,948,595
Prepaid expenses and other assets	1,682,340	1,136,821
Total current assets	24,035,669	22,090,767
Other assets:
Restricted cash	432,071	432,094
Property and equipment, net	2,181,255	2,139,747
Software development costs, net	4,525,805	4,612,457
Intangible assets, net	1,771,070	2,046,700
Goodwill	285,327	319,671
Security deposits and other assets	2,337,088	2,289,858
Total other assets	11,532,616	11,840,527
Total assets	35,568,285	33,931,294
Current liabilities:
Accounts payable	474,721	512,057
Accrued expenses	3,498,067	2,918,645
Due to merchants	3,864,848	4,352,199
Current portion of capital leases	429,979	458,812
Total current liabilities	8,267,615	8,241,713
Long-term liabilities:
Long-term portion of capital leases and deferred revenue	1,476,159	1,560,310
Total long-term liabilities	1,476,159	1,560,310
Total liabilities	9,743,774	9,802,023
Commitments and contingencies (Note 8)
Stockholders' equity:
Convertible preferred stock—10,000,000 shares authorized as of March 31, 2015 and December 31, 2014, $0.01 par value: Series A—2,243,750 issued and outstanding as of March 31, 2015 and December 31, 2014; $8,975,000 aggregate liquidation preference	22,438	22,438
Common stock—250,000,000 shares authorized as of March 31, 2015 and December 31, 2014, $0.01 par value, and 55,519,291 and 55,016,191 shares issued and outstanding as of March 31, 2015, and 55,680,999 and 55,177,899 shares issued and outstanding as of December 31, 2014	555,193	556,810
Treasury stock, at cost, 503,100 shares as of March 31, 2015 and December 31, 2014	-822,603	-822,603
Additional paid-in capital	103,519,915	103,277,253
Accumulated other comprehensive loss	-431,205	-173,774
Accumulated deficit	-77,019,227	-78,730,853
Total stockholders' equity	25,824,511	24,129,271
Total liabilities and stockholders' equity	$35,568,285	$33,931,294

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$100,000	$100,000
Series A Convertible preferred stock, shares authorized	10,000,000	10,000,000
Series A Convertible preferred stock, par value (in dollars per share)	$0.01	$0.01
Series A Convertible preferred stock, shares issued	2,243,750	2,243,750
Series A Convertible preferred stock, shares outstanding	2,243,750	2,243,750
Series A Convertible preferred stock, aggregate liquidation preference (in dollars)	$8,975,000	$8,975,000
Common stock, shares authorized	250,000,000	250,000,000
Common stock par value (in dollars per share)	$0.01	$0.01
Common stock, shares issued	55,519,291	55,680,999
Common stock, shares outstanding	55,016,191	55,177,899
Treasury Stock, Shares	503,100	503,100

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue:
Net revenue	$12,132,770	$11,175,117
Cost of revenue:
Payment processing service fees	2,588,204	2,518,821
Processing and service costs	3,237,940	3,714,593
Total cost of revenue	5,826,144	6,233,414
Selling, general and administrative expenses	4,470,400	5,081,793
Restructuring charges		629,215
Total operating expenses	10,296,544	11,944,422
Income (loss) from operations	1,836,226	-769,305
Other (expense) income:
Interest expense	-14,613	-16,170
Interest income	426	175
Total other expense, net	-14,187	-15,995
Income (loss) from operations before (provision) benefit for income taxes	1,822,039	-785,300
(Provision) benefit for income taxes	-110,413	6,010
Net income (loss)	$1,711,626	($779,290)
Basic net income (loss) per share applicable to common stockholders ( in dollars per share)	$0.03	($0.01)
Diluted net income (loss) per share applicable to common stockholders (in dollars per share)	$0.03	($0.01)
Weighted average common stock outstanding (basic) (in shares)	53,800,606	53,437,184
Weighted average common stock outstanding (diluted) (in shares)	54,448,382	53,437,184

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$1,711,626	($779,290)
Foreign currency translation adjustment	-257,431	-12,913
Total comprehensive income (loss)	$1,454,195	($792,203)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income (loss)	$1,711,626	($779,290)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation expense	233,462	311,124
Depreciation and amortization expense	725,173	746,313
(Recovery) provision for doubtful accounts	-1,007	3,268
Disposal of property and equipment		3,157
Gain on insurance settlement	-517,930
Changes in operating assets and liabilities:
Decrease in settlement assets	486,539	1,496,906
(Increase) decrease in accounts receivables, prepaid expenses and other current assets	-436,702	346,274
Increase in security deposits and other assets	-47,230	-107,049
Increase (decrease) in accounts payable and accrued expenses	454,979	-1,112,427
Decrease in due to merchants	-487,255	-1,524,224
Other	-81,947	-10,979
Net cash provided by (used in) operating activities	2,039,708	-626,927
Cash flows from investing activities:
Decrease (increase) in restricted cash	119	-230,094
Decrease in merchant reserves	-96
Purchase of property and equipment	-123,817	-19,756
Capitalized software development	-287,223	-397,401
Purchase of intangible assets	-5,888	-53,695
Net cash used in investing activities	-416,905	-700,946
Cash flows from financing activities:
Proceeds from issuance of common stock		602,572
Principal payments on capital lease obligations	-146,905	-137,922
Net cash (used in) provided by financing activities	-146,905	464,650
Net increase (decrease) in cash and cash equivalents	1,475,898	-863,223
Beginning of period	9,837,791	6,572,468
End of period	11,313,689	5,709,245
Cash paid for:
Interest	18,837	18,272
Income taxes	199,364	180,835
Non-cash investing and financing activities:
Assets acquired under capital leases	79,291	163,861
Accrued capitalized hardware, software and fixed assets	38,609	50,401
Capitalized stock-based compensation	$10,711	$10,352

Business_description_and_basis

Business description and basis of presentation	3 Months Ended
	Mar. 31, 2015
Business description and basis of presentation
Business description and basis of presentation	1. Business description and basis of presentation
	Business description
	Planet Payment, Inc. together with its wholly owned subsidiaries (“Planet Payment,” the “Company,” “we,” or “our”) is a provider of international payment and transaction processing and multi-currency processing services. The Company provides its services to approximately 105,000 active merchant locations in 23 countries and territories across the Asia Pacific region, the Americas, the Middle East, Africa and Europe, primarily through its acquiring bank and processor customers, as well as through its own direct sales force. The Company provides banks and their merchants with innovative services to accept, process and reconcile electronic payments. The Company’s point-of-sale and e-commerce services are integrated within the payment card transaction process enabling its acquiring customers to process and reconcile payment transactions in multiple currencies, geographies and channels. The Company’s ATM services provide its domestic and international acquirers with additional processing capabilities to help them increase revenue and improve customer satisfaction.  The Company also offers non-financial transaction processing services that allow merchants to offer a range of commercial services including pre-paid mobile phone top-up and bill payments using the same point-of-sale devices deployed to accept payment cards. The Company is a registered third party processor with the major card associations and operates in accordance with industry standards, including the Payment Card Industry, or PCI, Security Council’s Data Security Standards.
	Basis of presentation
	The unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
	The accompanying unaudited condensed consolidated interim financial statements include the accounts of Planet Payment, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
	Unaudited condensed consolidated interim financial information
	The accompanying unaudited condensed consolidated interim financial statements as of March 31, 2015 and for the periods ended March 31, 2015 and 2014 have been prepared on the same basis as the annual consolidated financial statements. In the opinion of management, the unaudited financial information for the interim periods presented reflects all adjustments, which are normal and recurring, necessary for a fair presentation of the statement of operations, financial position and cash flows. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the interim period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.  The December 31, 2014 balance sheet information has been derived from the audited financial statements at that date. Certain information and disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulation of the Securities and Exchange Commission, or SEC.

Concentration_of_credit_risk

Concentration of credit risk	3 Months Ended
	Mar. 31, 2015
Concentration of credit risk
Concentration of credit risk	2. Concentration of credit risk
	The Company’s assets that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and receivables from clients. The Company places some of its cash, cash equivalents, and restricted cash with financial banking institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company also maintains cash balances at foreign banking institutions, which are not insured by the FDIC.
	The Company maintains an allowance for uncollectible accounts receivable based on expected collectability and performs ongoing credit evaluations of customers’ financial condition.
	The Company’s accounts receivable concentrations of 10% and greater are as follows:
		As of		As of
		March 31,		December 31,
		2015		2014
	Customer A	31	%	28	%
	Customer B	11		13
	Customer C	15		17
	The Company’s revenue concentrations of 10% and greater are as follows:
		Three Months Ended
		March 31,		March 31,
		2015		2014
	Customer A	20	%	22	%
	Customer C	11		13

Net_income_loss_per_share

Net income (loss) per share	3 Months Ended
	Mar. 31, 2015
Net income (loss) per share
Net income (loss) per share	3. Net income (loss) per share
	The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share (“ASC topic 260”). Under ASC topic 260, securities that contain rights to receive non-forfeitable dividends (whether paid or unpaid) are participating securities and should be included in the two-class method of computing earnings per share. The Company’s preferred stockholders are entitled to participate in dividends and earnings when, and if, dividends are declared on the common stock. As such, the Company calculates net income (loss) per share using the two-class method. The two-class method is an earnings formula that treats a participating security as having rights to dividends that otherwise would have been available to common and preferred stockholders based on their respective rights to receive dividends. Losses are not allocated to the preferred stockholders for computing net loss per share under the two-class method because the preferred stockholders do not have contractual obligations to share in the losses of the Company.
	Basic earnings per share is calculated by dividing net income (loss), adjusted for amounts allocated to participating securities under the two-class method, if applicable, by the weighted average number of common stock outstanding during the period.
	Diluted earnings per share is calculated by dividing net income (loss) by the weighted average number of shares of the Company’s common stock outstanding, assuming dilution, during the period. The diluted earnings per share calculation assumes (i) all stock options and warrants which are in the money are exercised at the beginning of the period and (ii) each issue or series of issues of potential common stock are considered in sequence from the most dilutive to the least dilutive. That is, dilutive potential common stock with the lowest “earnings add-back per incremental share” shall be included in dilutive earnings per share before those with higher earnings add back per incremental share.
	The following table sets forth the computation of basic and diluted net income (loss) per share:
			Three months ended  March 31,
			2015			2014
	Numerator:
	Net income (loss)		$	1,711,626		$	-779,290
	Amounts allocated to participating preferred stockholders under the two-class method			-193,285			—
	Net income (loss) applicable to common stockholders (basic and dilutive)		$	1,518,341		$	-779,290
	Denominator:
	Weighted average common stock outstanding (basic)			53,800,606			53,437,184
	Common equivalent shares from options and warrants to purchase common stock			647,776			—
	Weighted average common stock outstanding (diluted)(1)			54,448,382			53,437,184
	Basic net income (loss) per share applicable to common stockholders		$	0.03		$	-0.01
	Diluted net income (loss) per share applicable to common stockholders(1)		$	0.03		$	-0.01
		-1		In accordance with ASC 260-10-45-48 for the three months ended March 31, 2015 and 2014, the Company has excluded 1,035,180 and 1,077,712, respectively, of contingently issued restricted shares from diluted weighted average common stock outstanding as the contingencies (a) were not satisfied at the reporting date nor (b) would have been satisfied if the reporting date was at the end of the contingency period.
	The following table sets forth the weighted average securities outstanding that have been excluded from the diluted net income (loss) per share calculation because the effect would have been anti-dilutive:
			Three months ended  March 31,
			2015		2014
	Stock options		5,908,970		8,106,302
	Restricted stock awards		225,442		506,812
	Warrants		-		183,983
	Convertible preferred stock(1)		6,851,144		6,851,144
	Total antidilutive securities		12,985,556		15,648,241
		-1		Diluted net income (loss) per share increases (decreases) when convertible preferred stock is included in the required sequence in the diluted earnings per share computation. As such, convertible preferred stock is excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014.

Stockbased_compensation_expens

Stock-based compensation expense and assumptions	3 Months Ended
	Mar. 31, 2015
Stock-based compensation expense and assumptions
Stock-based compensation expense and assumptions	4. Stock-based compensation expense and assumptions
	During the first quarter of 2015, 0.2 million stock options were granted to an employee of the Company with a grant fair value of $0.2 million. The actual number of shares that will be issued upon exercise of the options is subject to the achievement of service-based vesting conditions.  Stock-based compensation expense is recorded on a straight line basis from the date of the grant over the requisite service period of 36 months.
	During the first quarter of 2015, 0.1 million restricted stock awards with a grant fair value of $0.1 million were granted to an employee of the Company.  The final number of vested shares is subject to service-based vesting conditions.  Expense is recorded on a straight line basis from the date of the grant over the applicable service period of 36 months.
	Stock-based compensation expense is measured at the grant date based on fair value and recognized as an expense over the requisite service period, net of an estimated forfeiture rate.
	The following summarizes stock-based compensation expense recognized by income statement classification:
		Three months ended  March 31,
		2015		2014
	Processing and service costs	$	50,497	$	63,910
	Selling, general and administrative expenses		182,965		212,081
	Restructuring charges		-		35,133
	Total stock-based compensation expense	$	233,462	$	311,124
	The following summarizes stock-based compensation expense recognized by type:
		Three months ended  March 31,
		2015		2014
	Stock options	$	131,272	$	217,583
	Restricted stock awards		102,190		93,541
	Total stock-based compensation expense	$	233,462	$	311,124

Property_and_equipment

Property and equipment	3 Months Ended
	Mar. 31, 2015
Property and equipment
Property and equipment	5. Property and equipment
	Property and equipment, net consist of the following:
		Estimated				As of		As of
		useful life				March 31,		December 31,
		(in years)				2015		2014
	Equipment	2	-	7		$	945,067	$	945,116
	Computer hardware	3	-	5			3,166,708		2,963,629
	Furniture and fixtures	5	-	7			193,442		194,399
	Leasehold improvements	3	-	10			755,907		749,275
	Total property and equipment, gross						5,061,124		4,852,419
	Less: Accumulated depreciation and amortization						-2,879,869		-2,712,672
	Property and equipment, net					$	2,181,255	$	2,139,747
	Property and equipment depreciation and amortization expense is as follows:
		Three months ended
		March 31,
		2015			2014
	Depreciation and amortization expense	$	171,229		$	156,423

Goodwill_and_intangible_assets

Goodwill and intangible assets	3 Months Ended
	Mar. 31, 2015
Goodwill and intangible assets
Goodwill and intangible assets	6. Goodwill and intangible assets
	The change in carrying amount of goodwill for the three months ended March 31, 2015 is as follows:
	Goodwill, gross, as of December 31, 2014		$	319,671
	Impact of change in Euro exchange rate			-34,344
	Accumulated impairment losses as of March 31, 2015			—
	Goodwill, net, as of March 31, 2015		$	285,327
	The entire goodwill balance is assigned to the payment processing services segment as this is the reporting unit expected to benefit from the synergies of the combination.
	Intangible assets are recorded at estimated fair value and are amortized ratably over their estimated useful lives to processing and service costs, which are included in cost of revenue.
	The gross book value, accumulated amortization and amortization periods of intangible assets were as follows:
		As of March 31, 2015								As of December 31, 2014						Amortization
		Gross book			Accumulated			Net book		Gross book		Accumulated		Net book		period
		value			amortization			value		value		amortization		value		(in years)
	Trademarks and patents	$	1,159,323		$	-407,697		$	751,626	$	1,158,572	$	-387,134	$	771,438	15	-	21
	Technology		2,376,150			-1,356,706			1,019,444		2,662,164		-1,386,902		1,275,262	5
	Intangible assets, net	$	3,535,473		$	-1,764,403		$	1,771,070	$	3,820,736	$	-1,774,036	$	2,046,700
	Amortization expense related to intangible assets is as follows:
			Three months ended
			March 31,
			2015			2014
	Amortization expense		$	145,000		$	171,291

Commitments_and_contingencies

Commitments and contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and contingencies
Commitments and contingencies	7. Commitments and contingencies
	Employment agreements
	Pursuant to employment agreements with certain employees, the Company had a commitment to pay severance of approximately $0.8 million as of March 31, 2015 and December 31, 2014, in the event of termination without cause, as defined in the employment agreements. Additionally, in the event of termination upon a change of control, as defined in the agreements, the Company had a commitment to pay severance of approximately $1.0 million as of March 31, 2015 and December 31, 2014.
	Contingent liabilities
	In instances where the Company is acting as the merchant acquirer, the Company bears a risk that a merchant may engage in fraud by submitting for payment certain credit card transactions that may have been manipulated, are fictitious, or are otherwise not bona fide. Similarly, the Company bears the risk that a merchant becomes insolvent, owing money to cardholders. To the extent that such fraud or insolvency occurs in circumstances where the Company is liable to make good any resultant losses, this could affect the Company’s operating results and cash flows. The Company has required certain merchants to post cash reserves of approximately $0.7 million with the sponsoring bank against such liabilities and has itself paid the acquirer a security deposit of $0.2 million in connection therewith, which is included in long-term “Restricted cash” on the condensed consolidated balance sheets. In addition, the Company holds merchant reserves of approximately $2.2 million. This reserve amount is included in “Restricted cash” with an offset in “Due to merchants”. Under FASB ASC 460, Guarantees, the Company evaluates its ultimate risk and records an estimate of potential loss for chargeback’s related to merchant fraud and processing errors based upon an assessment of actual historical fraud rates and errors in processing compared to recent bank card processing volume levels.  No contingent liability has been recorded as of March 31, 2015 and December 31, 2014, as the risk of material loss is considered remote. The Company monitors these contingent liabilities on a quarterly basis and will provide for a reserve if deemed necessary.
	Outstanding litigation
	From time to time, the Company’s operating entities are involved in legal proceeding in the ordinary course of business. While any litigation contains an element of uncertainty, the Company has no reason to believe that the outcome of such proceedings or claims will have a material adverse effect on the financial condition or results of operations of the Company.
	Acquiring bank sponsorship agreement
	In order to offer merchant acquiring services for Visa and MasterCard transactions, the Company must be sponsored by a financial institution that is a principal member of the Visa and MasterCard networks.
	The Company entered into a five year agreement with a sponsoring bank effective September 1, 2013. The Company is required to pay minimum annual sponsorship transaction fees of $0.3 million in year one, escalating each year with minimum fees of $0.5 million in year five for total minimum fees of $1.8 million to be paid over the term of the agreement.  Sponsorship fees are recorded to cost of sales with the total agreement minimum of $1.8 million recognized on a straight line basis over the term of the agreement.
	Pursuant to the agreement, the Company is liable for all losses incurred by the sponsoring bank with respect to the activities of our merchants sponsored under the agreement.  No contingent liability has been recorded as of March 31, 2015 as the risk of material loss is considered remote based on historical information.  The Company monitors this contingent liability on a quarterly basis and will provide for a reserve if deemed necessary.
	Insurance reimbursement
	Based on the loss recovery model the Company recorded an insurance reimbursement gain of $0.5 million in selling, general and administrative expenses during the first quarter of 2015.  The insurance reimbursement was related to a previous property and casualty loss recognized by the Company.  The insurance proceeds were collected in April 2015.

Related_party_transactions

Related party transactions	3 Months Ended
	Mar. 31, 2015
Related party transactions
Related party transactions	8. Related party transactions
	The Company incurred the following amounts to companies that are principally owned by executives, directors or stockholders of the Company:
		Three months ended
		March 31,
		2015		2014
	Rent	$	90,887	$	125,094
	Consulting and professional fees		1,929		611
	Rent was paid to BDP Realty Associates LLC, a company in which our former chief executive officer and Chairman of the Board of Directors, Philip Beck has a one-third (1/3rd) interest. In February 2015, Philip Beck ceased to serve as the Company’s Director and Chairman of the Board.  The Company’s related party expense for 2015 is for the two months Philip Beck was Chairman of the Board of Directors.
	Consulting and professional fees were paid to a professional services company where a family member of Philip Beck has a substantial interest but Mr. Beck does not have any financial interest in such company.

Accrued_expenses

Accrued expenses	3 Months Ended
	Mar. 31, 2015
Accrued expenses
Accrued expenses	9. Accrued expenses
	The following are the components of accrued expenses:
		As of		As of
		March 31,		December 31,
		2015		2014
	Deferred revenue(*)	$	834,483	$	800,650
	Other(**)		2,663,584		2,117,995
	Total accrued expenses	$	3,498,067	$	2,918,645
	(*)Current deferred revenue will be recognized as revenue ratably over the next 12 months.  As of March 31, 2015, included in the balance sheet classification “Long-term portion of capital leases and deferred revenue” is the non-current portion of deferred revenue in the amount of $1.0 million as of March 31, 2015 and December 31, 2014.
	(**)No amounts included in “Other” exceed 10% of total current liabilities.

Segment_information

Segment information	3 Months Ended
	Mar. 31, 2015
Segment information
Segment information	10. Segment information
	General information
	The segment and geographic information provided in the table below is being reported consistent with the Company’s method of internal reporting. Operating segments are defined as components of an enterprise for which separate financial information is available and which is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker, or CODM, reviews net revenue and gross profit by service by geographical region. The Company operates in two reportable segments; multi-currency processing services and payment processing services.
	Information about revenue, profit and assets
	The CODM evaluates performance and allocates resources based on net revenue and gross profit of each segment. For purposes of analyzing segments, gross profit of the multi-currency processing services segment is equal to net revenue less multi-currency cost of sales of $0.6 million, which is included in “processing and services costs” for the three months ended March 31, 2015 and 2014, respectively. The gross profit for the payment processing services segment includes net revenue of the segment less the cost of revenue component “payment processing services fees”, which includes interchange and card network fees and assessments. Net revenue and gross profit by geographical region is based upon where the transaction originated. Lastly, the Company does not evaluate performance or allocate resources using segment asset data. Long-lived assets are primarily located in the Americas and Europe and as of March 31, 2015 and December 31, 2014, long-lived asset amounts are $8.8 million and $9.1 million, respectively.
	The Company conducts its business primarily in three geographical regions: Asia Pacific (“APAC”), the Americas, and Central Europe, Middle East and Africa (“CEMEA”). The following table provides revenue concentration by geographic region. Analysis of revenue by segment and geographical region and reconciliations to consolidated revenue and gross profit are as follows:
		Three months ended
		March 31,
		2015			2014
	Net Revenue:
	APAC	$	4,036,276		$	3,886,007
	Americas		1,493,130			1,210,806
	CEMEA		2,152,359			2,341,622
	Total multi-currency processing services revenue		7,681,765			7,438,435
	Payment processing services revenue		4,451,005			3,736,682
	Net revenue	$	12,132,770		$	11,175,117
	Gross Profit:
	APAC	$	4,006,712		$	3,858,140
	Americas		1,396,279			1,178,702
	CEMEA		1,666,004			1,803,744
	Total multi-currency processing services gross profit		7,068,995			6,840,586
	Payment processing services gross profit		1,862,800			1,217,861
	Total gross profit	$	8,931,795		$	8,058,447
	Payment processing service revenue and gross profit is the result of transactions that primarily originated in the Americas. For the three months ended March 31, 2015 Customer B and Customer I had revenue concentration of 15% and 19% respectively. No individual customer of the payment processing segment was greater than 10% of segment revenue for the three months ended March 31, 2014.
	Concentration of revenue by customer by geographical region:
		Three months ended
		March 31,
		2015		2014
	Multi-currency processing services revenue:
	APAC:
	Customer A	60	%	64	%
	Americas:
	Customer D	15
	Customer E	14		23
	Customer F	18		26
	Customer G	*		11
	CEMEA:
	Customer C	62		61
	Customer H	37		39
	(*)Less than 10% revenue concentration.

Restructuring_charges

Restructuring charges	3 Months Ended
	Mar. 31, 2015
Restructuring charges
Restructuring charges	11. Restructuring charges
	In 2014, the Company initiated a realignment of its workforce aimed at achieving greater operational efficiencies. As a result of the realignment, the Company incurred total restructuring charges during the three months ended March 31, 2014 of approximately $0.6 million.
	The table below sets forth the cash components and activity associated with the realignment of workforce and business for the three months ended March 31, 2015:
		Balance as of						Balance as of
		January 1, 2015		Charges		Cash Payment		31-Mar-15
	Severance and benefits	$	195,773	$	—	$	116,645	$	79,128
	Legal expenses and other		—		—		—		—
	Total restructuring charges	$	195,773	$	—	$	116,645	$	79,128

Stock_Repurchase_Program

Stock Repurchase Program	3 Months Ended
	Mar. 31, 2015
Stock Repurchase Program
Stock repurchase program	12. Stock Repurchase Program
	In October 2014, the Company announced that its Board of Directors authorized the repurchase of up to $6.0 million of the Company’s outstanding shares of common stock.  The shares may be purchased from time to time for a period ending December 31, 2015.  The timing, price and quantity of purchases will be at the discretion of the Company and the program may be discontinued or suspended at any time.  As of March 31, 2015, the Company repurchased approximately 0.5 million shares of common stock for an aggregate price of $0.8 million.  From April 1, 2015 to April 30, 2015, the Company repurchased approximately 0.8 million shares of common stock for an aggregate price of $1.4 million. Total amount of common stock repurchased under the program through April 30, 2015 was 1.3 million shares for an aggregate price of $2.2 million.

Concentration_of_credit_risk_T

Concentration of credit risk (Tables) (Accounts Receivable)	3 Months Ended
	Mar. 31, 2015
Accounts Receivable
Concentration of credit risk
Schedule of concentrations of 10% and greater
		As of		As of
		March 31,		December 31,
		2015		2014
	Customer A	31	%	28	%
	Customer B	11		13
	Customer C	15		17

Net_income_loss_per_share_Tabl

Net income (loss) per share (Tables)	3 Months Ended
	Mar. 31, 2015
Net income (loss) per share
Schedule of computation of basic and diluted net income (loss) per share
		Three months ended  March 31,
		2015			2014
	Numerator:
	Net income (loss)	$	1,711,626		$	-779,290
	Amounts allocated to participating preferred stockholders under the two-class method		-193,285			—
	Net income (loss) applicable to common stockholders (basic and dilutive)	$	1,518,341		$	-779,290
	Denominator:
	Weighted average common stock outstanding (basic)		53,800,606			53,437,184
	Common equivalent shares from options and warrants to purchase common stock		647,776			—
	Weighted average common stock outstanding (diluted)(1)		54,448,382			53,437,184
	Basic net income (loss) per share applicable to common stockholders	$	0.03		$	-0.01
	Diluted net income (loss) per share applicable to common stockholders(1)	$	0.03		$	-0.01
	In accordance with ASC 260-10-45-48 for the three months ended March 31, 2015 and 2014, the Company has excluded 1,035,180 and 1,077,712, respectively, of contingently issued restricted shares from diluted weighted average common stock outstanding as the contingencies (a) were not satisfied at the reporting date nor (b) would have been satisfied if the reporting date was at the end of the contingency period.
Schedule of weighted average securities outstanding that have been excluded from the diluted net income (loss) per share calculation because the effect would have been anti-dilutive
		Three months ended  March 31,
		2015		2014
	Stock options	5,908,970		8,106,302
	Restricted stock awards	225,442		506,812
	Warrants	-		183,983
	Convertible preferred stock(1)	6,851,144		6,851,144
	Total antidilutive securities	12,985,556		15,648,241
	Diluted net income (loss) per share increases (decreases) when convertible preferred stock is included in the required sequence in the diluted earnings per share computation. As such, convertible preferred stock is excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014.

Stockbased_compensation_expens1

Stock-based compensation expense and assumptions (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-based compensation expense and assumptions
Summary of stock-based compensation expense recognized by income statement classification
		Three months ended  March 31,
		2015		2014
	Processing and service costs	$	50,497	$	63,910
	Selling, general and administrative expenses		182,965		212,081
	Restructuring charges		-		35,133
	Total stock-based compensation expense	$	233,462	$	311,124
Summary of stock-based compensation expense recognized by type
		Three months ended  March 31,
		2015		2014
	Stock options	$	131,272	$	217,583
	Restricted stock awards		102,190		93,541
	Total stock-based compensation expense	$	233,462	$	311,124

Property_and_equipment_Tables

Property and equipment (Tables)	3 Months Ended
	Mar. 31, 2015
Property and equipment
Schedule of property and equipment, net
		Estimated				As of		As of
		useful life				March 31,		December 31,
		(in years)				2015		2014
	Equipment	2	-	7		$	945,067	$	945,116
	Computer hardware	3	-	5			3,166,708		2,963,629
	Furniture and fixtures	5	-	7			193,442		194,399
	Leasehold improvements	3	-	10			755,907		749,275
	Total property and equipment, gross						5,061,124		4,852,419
	Less: Accumulated depreciation and amortization						-2,879,869		-2,712,672
	Property and equipment, net					$	2,181,255	$	2,139,747
Schedule of property and equipment depreciation and amortization expense
		Three months ended
		March 31,
		2015			2014
	Depreciation and amortization expense	$	171,229		$	156,423

Goodwill_and_intangible_assets1

Goodwill and intangible assets (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and intangible assets
Schedule of changes in carrying amount of goodwill
	Goodwill, gross, as of December 31, 2014		$	319,671
	Impact of change in Euro exchange rate			-34,344
	Accumulated impairment losses as of March 31, 2015			—
	Goodwill, net, as of March 31, 2015		$	285,327
Schedule of the gross book value, accumulated amortization and amortization periods of intangible assets
		As of March 31, 2015								As of December 31, 2014						Amortization
		Gross book			Accumulated			Net book		Gross book		Accumulated		Net book		period
		value			amortization			value		value		amortization		value		(in years)
	Trademarks and patents	$	1,159,323		$	-407,697		$	751,626	$	1,158,572	$	-387,134	$	771,438	15	-	21
	Technology		2,376,150			-1,356,706			1,019,444		2,662,164		-1,386,902		1,275,262	5
	Intangible assets, net	$	3,535,473		$	-1,764,403		$	1,771,070	$	3,820,736	$	-1,774,036	$	2,046,700
Schedule of amortization expense related to intangible assets
			Three months ended
			March 31,
			2015			2014
	Amortization expense		$	145,000		$	171,291

Related_party_transactions_Tab

Related party transactions (Tables)	3 Months Ended
	Mar. 31, 2015
Related party transactions
Schedule of amounts incurred to companies that are principally owned by executives, directors or stockholders of the Company or their families
		Three months ended
		March 31,
		2015		2014
	Rent	$	90,887	$	125,094
	Consulting and professional fees		1,929		611

Accrued_expenses_Tables

Accrued expenses (Tables)	3 Months Ended
	Mar. 31, 2015
Accrued expenses
Schedule of the components of accrued expenses
		As of		As of
		March 31,		December 31,
		2015		2014
	Deferred revenue(*)	$	834,483	$	800,650
	Other(**)		2,663,584		2,117,995
	Total accrued expenses	$	3,498,067	$	2,918,645
	(*)Current deferred revenue will be recognized as revenue ratably over the next 12 months.  As of March 31, 2015, included in the balance sheet classification “Long-term portion of capital leases and deferred revenue” is the non-current portion of deferred revenue in the amount of $1.0 million as of March 31, 2015 and December 31, 2014.
	(**)No amounts included in “Other” exceed 10% of total current liabilities.

Segment_information_Tables

Segment information (Tables)	3 Months Ended
	Mar. 31, 2015
Segment information
Schedule of revenue by segment and geographical region and reconciliations to consolidated revenue and gross profit
		Three months ended
		March 31,
		2015			2014
	Net Revenue:
	APAC	$	4,036,276		$	3,886,007
	Americas		1,493,130			1,210,806
	CEMEA		2,152,359			2,341,622
	Total multi-currency processing services revenue		7,681,765			7,438,435
	Payment processing services revenue		4,451,005			3,736,682
	Net revenue	$	12,132,770		$	11,175,117
	Gross Profit:
	APAC	$	4,006,712		$	3,858,140
	Americas		1,396,279			1,178,702
	CEMEA		1,666,004			1,803,744
	Total multi-currency processing services gross profit		7,068,995			6,840,586
	Payment processing services gross profit		1,862,800			1,217,861
	Total gross profit	$	8,931,795		$	8,058,447
Schedule of concentration of revenue by customer by geographical region
		Three months ended
		March 31,
		2015		2014
	Multi-currency processing services revenue:
	APAC:
	Customer A	60	%	64	%
	Americas:
	Customer D	15
	Customer E	14		23
	Customer F	18		26
	Customer G	*		11
	CEMEA:
	Customer C	62		61
	Customer H	37		39
	(*)Less than 10% revenue concentration.

Restructuring_charges_Tables

Restructuring charges (Tables)	3 Months Ended
	Mar. 31, 2015
Restructuring charges
Schedule of cash components and activity associated with the realignment of workforce and business
		Balance as of						Balance as of
		January 1, 2015		Charges		Cash Payment		31-Mar-15
	Severance and benefits	$	195,773	$	—	$	116,645	$	79,128
	Legal expenses and other		—		—		—		—
	Total restructuring charges	$	195,773	$	—	$	116,645	$	79,128

Business_description_and_basis1

Business description and basis of presentation (Details)	Mar. 31, 2015
	item
Business description and basis of presentation
Number of active merchant locations to which the Company provides services	105,000
Number of countries in which the entity provides services	23

Concentration_of_credit_risk_D

Concentration of credit risk (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Concentration of credit risk
Cash, cash equivalents, and restricted cash with financial banking institutions that are insured by the Federal Deposit Insurance Corporation ("FDIC")	250,000
Customer concentration risk | Customer C
Concentration of credit risk
Concentration risk (as a percent)	11.00%	13.00%
Accounts Receivable | Credit concentration risk | Customer A
Concentration of credit risk
Concentration risk (as a percent)	31.00%		28.00%
Accounts Receivable | Credit concentration risk | Customer B
Concentration of credit risk
Concentration risk (as a percent)	11.00%		13.00%
Accounts Receivable | Credit concentration risk | Customer C
Concentration of credit risk
Concentration risk (as a percent)	15.00%		17.00%
Revenue | Customer concentration risk | Customer A
Concentration of credit risk
Concentration risk (as a percent)	20.00%	22.00%

Net_income_loss_per_share_Deta

Net income (loss) per share (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net income (loss)	$1,711,626	($779,290)
Amounts allocated to participating preferred stockholders under the two-class method	-193,285
Net income (loss) applicable to common stockholders - basic	$1,518,341	($779,290)
Denominator:
Weighted average common stock outstanding (basic) (in shares)	53,800,606	53,437,184
Common equivalent shares from options and warrants to purchase common stock (in shares)	647,776
Weighted average common stock outstanding (diluted) (in shares)	54,448,382	53,437,184
Basic net income (loss) per share applicable to common stockholders ( in dollars per share)	$0.03	($0.01)
Diluted net income (loss) per share applicable to common stockholders (in dollars per share)	$0.03	($0.01)

Net_income_loss_per_share_Deta1

Net income (loss) per share (Details 2)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	12,985,556	15,648,241
Contingently issued restricted shares
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	1,035,180	1,077,712
Stock options
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	5,908,970	8,106,302
Restricted stock awards
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	225,442	506,812
Warrants
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)		183,983
Convertible preferred stock
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	6,851,144	6,851,144

Stockbased_compensation_expens2

Stock-based compensation expense and assumptions (Details) (USD $)	3 Months Ended
Share data in Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock-based expense
Total stock-based compensation expense	$233,462	$311,124
Processing and service costs
Stock-based expense
Total stock-based compensation expense	50,497	63,910
Selling, general and administrative expenses
Stock-based expense
Total stock-based compensation expense	182,965	212,081
Restructuring charge
Stock-based expense
Total stock-based compensation expense		35,133
Stock options
Stock-based expense
Options granted (in shares)	0.2
Fair value of options granted	200,000
Requisite service period	36 months
Total stock-based compensation expense	131,272	217,583
Restricted stock awards
Stock-based expense
Awards granted (in shares)	0.1
Fair value of awards granted	100,000
Requisite service period	36 months
Total stock-based compensation expense	$102,190	$93,541

Property_and_equipment_Details

Property and equipment (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Property and equipment
Total property and equipment, gross	$5,061,124		$4,852,419
Less: Accumulated depreciation and amortization	-2,879,869		-2,712,672
Total property and equipment, net	2,181,255		2,139,747
Depreciation and amortization expense	171,229	156,423
Equipment
Property and equipment
Total property and equipment, gross	945,067		945,116
Equipment | Minimum
Property and equipment
Estimated useful life	2 years
Equipment | Maximum
Property and equipment
Estimated useful life	7 years
Computer hardware
Property and equipment
Total property and equipment, gross	3,166,708		2,963,629
Computer hardware | Minimum
Property and equipment
Estimated useful life	3 years
Computer hardware | Maximum
Property and equipment
Estimated useful life	5 years
Furniture and fixtures
Property and equipment
Total property and equipment, gross	193,442		194,399
Furniture and fixtures | Minimum
Property and equipment
Estimated useful life	5 years
Furniture and fixtures | Maximum
Property and equipment
Estimated useful life	7 years
Leasehold improvements
Property and equipment
Total property and equipment, gross	$755,907		$749,275
Leasehold improvements | Minimum
Property and equipment
Estimated useful life	3 years
Leasehold improvements | Maximum
Property and equipment
Estimated useful life	10 years

Goodwill_and_intangible_assets2

Goodwill and intangible assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Goodwill
Goodwill, gross, at the Beginning of the period	$319,671
Impact of change in Euro exchange rate	-34,344
Goodwill, net, at the end of the period	$285,327

Goodwill_and_intangible_assets3

Goodwill and intangible assets (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Intangible assets
Gross book value	$3,535,473		$3,820,736
Accumulated amortization	-1,764,403		-1,774,036
Net book value	1,771,070		2,046,700
Amortization expense	145,000	171,291
Trademarks And Patents
Intangible assets
Gross book value	1,159,323		1,158,572
Accumulated amortization	-407,697		-387,134
Net book value	751,626		771,438
Trademarks And Patents | Minimum
Intangible assets
Amortization period	15 years
Trademarks And Patents | Maximum
Intangible assets
Amortization period	21 years
Technology
Intangible assets
Gross book value	2,376,150		2,662,164
Accumulated amortization	-1,356,706		-1,386,902
Net book value	$1,019,444		$1,275,262
Amortization period	5 years

Commitments_and_contingencies_

Commitments and contingencies (Details) (USD $)	3 Months Ended	0 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Sep. 01, 2013	Dec. 31, 2014
Employment agreements
Commitment to pay severance in event of employment termination without cause	$0.80		$0.80
Commitment to pay severance in event of employment termination upon change of control	1		1
Contingent liability	0		0
Insurance reimbursement
Employment agreements
Gain on insurance reimbursemnt	0.5
Fraud related to certain credit card transactions
Employment agreements
Post cash reserves	0.7
Security Deposit	0.2
Loss Contingency Cash Reserves Required to be Posted by Merchant, Entity	2.2
Bank Sponsorship Agreement
Employment agreements
Contingent liability	0
Term of Bank Sponsorship Agreement		5 years
Bank Sponsorship Agreement | Financial Guarantee | Minimum
Employment agreements
Bank sponsorship agreement annual fees in year one		0.3
Bank sponsorship agreement fees final year		0.5
Bank sponsorship agreement fees due		1.8

Related_party_transactions_Det

Related party transactions (Details) (USD $)	3 Months Ended		1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Feb. 28, 2015
Related party transactions
Rent	$90,887	$125,094
Consulting and professional fees	$1,929	$611
BDP Realty Corporation
Related party transactions
Ownership interest owned by related party (as a percent)	33.33%
Rent expenses period			2 months

Accrued_expenses_Details

Accrued expenses (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Accrued expenses
Deferred revenue	$834,483	$800,650
Other	2,663,584	2,117,995
Total accrued expenses	3,498,067	2,918,645
Recognition period of deferred revenue	12 months
Non-current portion of deferred revenue	$1,000,000	$1,000,000
Maximum percentage of total current liabilities	10.00%

Segment_information_Details

Segment information (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
	item
Segment information
Number of reportable segments	2
Cost of sales included in processing and services costs	$3,237,940	$3,714,593
Long-lived assets	8,800,000		9,100,000
Number of geographical regions in which the entity conducts its business	3
Net Revenue:
Net revenue	12,132,770	11,175,117
Gross Profit:
Total gross profit	8,931,795	8,058,447
Multi-currency processing services
Segment information
Cost of sales included in processing and services costs	600,000	600,000
Net Revenue:
Net revenue	7,681,765	7,438,435
Gross Profit:
Total gross profit	7,068,995	6,840,586
Payment processing services
Net Revenue:
Net revenue	4,451,005	3,736,682
Number of individual customers with revenue greater than 10% of segment revenue	0
Gross Profit:
Total gross profit	1,862,800	1,217,861
APAC
Net Revenue:
Net revenue	4,036,276	3,886,007
Gross Profit:
Total gross profit	4,006,712	3,858,140
Americas
Net Revenue:
Net revenue	1,493,130	1,210,806
Gross Profit:
Total gross profit	1,396,279	1,178,702
CEMEA
Net Revenue:
Net revenue	2,152,359	2,341,622
Gross Profit:
Total gross profit	$1,666,004	$1,803,744

Segment_information_Details_2

Segment information (Details 2)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Customer concentration risk | Customer C
Revenue concentration
Concentration risk (as a percent)	11.00%	13.00%
Revenue | Geographical concentration risk | Multi-currency processing services | APAC | Customer A
Revenue concentration
Concentration risk (as a percent)	60.00%	64.00%
Revenue | Geographical concentration risk | Multi-currency processing services | Americas | Customer D
Revenue concentration
Concentration risk (as a percent)	15.00%
Revenue | Geographical concentration risk | Multi-currency processing services | Americas | Customer E
Revenue concentration
Concentration risk (as a percent)	14.00%	23.00%
Revenue | Geographical concentration risk | Multi-currency processing services | Americas | Customer F
Revenue concentration
Concentration risk (as a percent)	18.00%	26.00%
Revenue | Geographical concentration risk | Multi-currency processing services | Americas | Customer G
Revenue concentration
Concentration risk (as a percent)	10.00%	11.00%
Revenue | Geographical concentration risk | Multi-currency processing services | Americas | Customer G | Maximum
Revenue concentration
Concentration risk (as a percent)	10.00%
Revenue | Geographical concentration risk | Multi-currency processing services | CEMEA | Customer C
Revenue concentration
Concentration risk (as a percent)	62.00%	61.00%
Revenue | Geographical concentration risk | Multi-currency processing services | CEMEA | Customer H
Revenue concentration
Concentration risk (as a percent)	37.00%	39.00%
Revenue | Customer concentration risk | Customer A
Revenue concentration
Concentration risk (as a percent)	20.00%	22.00%
Revenue | Customer concentration risk | Multi-currency processing services | Customer B
Revenue concentration
Concentration risk (as a percent)	15.00%
Revenue | Customer concentration risk | Multi-currency processing services | Customer I
Revenue concentration
Concentration risk (as a percent)	19.00%

Restructuring_charges_Details

Restructuring charges (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash components and activity associated with the realignment of workforce and business under the restructuring program
Balance at beginning of period	$195,773
Charges		600,000
Cash Payments	116,645
Balance at end of period	79,128
Severance and benefits
Cash components and activity associated with the realignment of workforce and business under the restructuring program
Balance at beginning of period	195,773
Cash Payments	116,645
Balance at end of period	$79,128

Stock_Repurchase_Program_Detai

Stock Repurchase Program (Details) (USD $)	1 Months Ended	6 Months Ended	0 Months Ended	7 Months Ended
In Millions, unless otherwise specified	Oct. 31, 2014	Mar. 31, 2015	Apr. 30, 2015	Apr. 30, 2015
Share repurchased, authorized amount	$6
Stock Repurchased During Period, Shares		0.5
Stock Repurchased During Period, Value		0.8
Subsequent event
Stock Repurchased During Period, Shares			0.8	1.3
Stock Repurchased During Period, Value			$1.40	$2.20