Planet Payment 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information
Entity Registrant Name	Planet Payment Inc
Entity Central Index Key	1,362,925
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		48,902,496
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 7,440,864	$ 14,675,515
Restricted cash	3,887,288	5,050,147
Accounts receivable, net of allowances of $0.1 million as of September 30, 2016 and December 31, 2015	6,641,993	6,406,496
Prepaid expenses and other assets	1,761,184	1,800,566
Total current assets	19,731,329	27,932,724
Other assets:
Restricted cash	551,054	551,917
Property and equipment, net	1,321,342	1,811,619
Software development costs, net	4,177,879	3,964,454
Intangible assets, net	981,279	1,378,264
Goodwill	294,844	286,852
Deferred tax asset and other long-term assets	8,270,540	8,581,082
Total other assets	15,596,938	16,574,188
Total assets	35,328,267	44,506,912
Current liabilities:
Accounts payable	446,946	306,520
Accrued expenses	4,459,360	6,438,600
Due to merchants	4,068,506	5,240,427
Current portion of capital leases	206,873	290,911
Total current liabilities	9,181,685	12,276,458
Long-term liabilities:
Long-term debt	9,916,000
Other long-term liabilities	1,107,982	1,666,938
Total long-term liabilities	11,023,982	1,666,938
Total liabilities	20,205,667	13,943,396
Commitments and contingencies (Note 8)
Stockholders' equity:
Convertible preferred stock-10,000,000 shares authorized as of September 30, 2016 and December 31, 2015, $0.01 par value: Series A-2,243,750 issued and 1,535,398 outstanding as of September 30, 2016 and 2,243,750 issued and outstanding as of December 31, 2015; $6,141,592 and $8,975,000 aggregate liquidation preference as of September 30, 2016 and December 31, 2015, respectively	15,354	22,438
Common stock-250,000,000 shares authorized as of September 30, 2016 and December 31, 2015, $0.01 par value, and 59,230,684 issued and 48,855,330 shares outstanding as of September 30, 2016, and 56,191,389 issued and 52,585,503 shares outstanding as of December 31, 2015	592,307	561,914
Treasury stock, at cost, 10,375,354 shares and 3,605,886 shares as of September 30, 2016 and December 31, 2015, respectively	(31,726,486)	(7,883,012)
Additional paid-in capital	109,870,586	106,741,026
Accumulated other comprehensive loss	(529,197)	(510,445)
Accumulated deficit	(63,099,964)	(68,368,405)
Total stockholders' equity	15,122,600	30,563,516
Total liabilities and stockholders' equity	$ 35,328,267	$ 44,506,912

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
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	1,535,398	2,243,750
Series A Convertible preferred stock, aggregate liquidation preference (in dollars)	$ 6,141,592	$ 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	59,230,684	56,191,389
Common stock, shares outstanding	48,855,330	52,585,503
Treasury stock, shares	10,375,354	3,605,886

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Net revenue	$ 13,621,239	$ 12,618,413	$ 40,409,128	$ 37,434,542
Cost of revenue:
Payment processing service fees	2,781,289	2,692,090	8,207,202	7,871,179
Processing and service costs	2,878,088	3,776,232	9,902,879	10,399,830
Total cost of revenue	5,659,377	6,468,322	18,110,081	18,271,009
Selling, general and administrative expenses	5,222,560	5,657,740	15,908,166	14,840,844
Restructuring charges	229,121	283,726	354,389	283,726
Total operating expenses	11,111,058	12,409,788	34,372,636	33,395,579
Income from operations	2,510,181	208,625	6,036,492	4,038,963
Other income (expense):
Interest expense	(88,669)	(10,372)	(186,366)	(38,815)
Interest income	428	392	1,250	1,183
Other income	93,016		93,016
Total other income (expense), net	4,775	(9,980)	(92,100)	(37,632)
Income from operations before provision for income taxes	2,514,956	198,645	5,944,392	4,001,331
Provision for income taxes	(289,543)	(92,674)	(675,951)	(308,406)
Net income	$ 2,225,413	$ 105,971	$ 5,268,441	$ 3,692,925
Basic net income per share applicable to common stockholders ( in dollars per share)	$ 0.04	$ 0	$ 0.10	$ 0.06
Diluted net income per share applicable to common stockholders (in dollars per share)	$ 0.04	$ 0	$ 0.09	$ 0.06
Weighted-average common stock outstanding (basic) (in shares)	49,179,596	51,360,758	49,848,634	52,985,106
Weighted-average common stock outstanding (diluted) (in shares)	51,254,223	52,384,391	52,002,249	53,611,968

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statements of Comprehensive Income
Net income	$ 2,225,413	$ 105,971	$ 5,268,441	$ 3,692,925
Foreign currency translation adjustment	(11,530)	(65,265)	(18,752)	(262,084)
Total comprehensive income	$ 2,213,883	$ 40,706	$ 5,249,689	$ 3,430,841

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 5,268,441	$ 3,692,925
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	1,498,358	1,197,741
Depreciation and amortization expense	2,083,655	2,175,220
Provision for doubtful accounts	62,675	7,403
Disposal of property and equipment	500
Gain on insurance settlement		(517,930)
Changes in operating assets and liabilities:
Decrease (increase) in settlement assets	1,160,869	(322,982)
(Increase) decrease in accounts receivables, prepaid expenses and other current assets	(258,790)	1,184,851
Decrease (increase) in other long-term assets	310,542	(131,588)
(Decrease) increase in accounts payable and accrued expenses	(3,062,995)	559,792
(Decrease) increase in due to merchants	(1,169,931)	323,105
Other	(44,740)	(133,242)
Net cash provided by operating activities	5,848,584	8,035,295
Cash flows from investing activities:
Decrease (increase) in restricted cash	2,853	(27,651)
Decrease in merchant reserves	(1,990)	(92,169)
Purchase of property and equipment	(156,165)	(175,570)
Capitalized software development	(999,733)	(828,393)
Purchase of intangible assets	(16,299)	(16,500)
Net cash used for investing activities	(1,171,334)	(1,140,283)
Cash flows from financing activities:
Proceeds from issuance of common stock	2,287,990	1,203,750
Principal payments on capital lease obligations	(272,417)	(404,884)
Borrowings under credit facility	13,916,000
Repayments under credit facility	(4,000,000)
Purchase of treasury stock	(23,843,474)	(4,567,501)
Net cash used for financing activities	(11,911,901)	(3,768,635)
Net (decrease) increase in cash and cash equivalents	(7,234,651)	3,126,377
Cash and cash equivalents at beginning of period	14,675,515	9,837,791
Cash and cash equivalents at end of period	7,440,864	12,964,168
Cash paid for:
Interest	165,252	36,585
Income taxes	744,911	539,520
Non-cash investing and financing activities:
Common stock issued for preferred stock conversion	21,629
Common stock issued for stock options exercised	98
Assets acquired under capital leases	122,630	156,129
Accrued capitalized hardware, software and fixed assets	75,870	39,158
Capitalized stock-based compensation	$ 21,625	$ 27,245

Business description and basis

Business description and basis of presentation	9 Months Ended
	Sep. 30, 2016
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 multi­currency processing services. The Company provides its services to approximately 197,000 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 multi-currency payment processing services are designed for merchants in the retail, restaurant, and hospitality environments. We also provide payment services for e-commerce and mail and telephone order merchants. Our point-of-sale and e-commerce services help merchants sell more goods and services to consumers, and 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 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 September 30, 2016 and for the periods ended September 30, 2016 and 2015 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, 2015. Operating results for the interim period ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The December 31, 2015 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 (“SEC”).

Recent accounting pronouncement

Recent accounting pronouncements	9 Months Ended
	Sep. 30, 2016
Recent accounting pronouncements
Recent accounting pronouncements	2. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new guidance includes a cohesive set of disclosure requirements intended to provide users of financial statements with comprehensive information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers. The original effective date of ASU 2014-09 of January 1, 2017 has been delayed until January 1, 2018. Early adoption is not permitted before the original effective date. The standard allows for either retrospective application to each reporting period presented or retrospective application with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the effect ASU 2014-09 will have on the Company’s condensed consolidated financial statements and disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU No. 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in ASU No. 2016-02 is permitted for all entities. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the effect ASU 2016-02 will have on the Company’s condensed consolidated financial statements and disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606) (“ASU 2016-08”). The amendments in ASU 2016-08 do not change the core principle of the guidance. The amendments clarify the implementation guidance on principal versus agent considerations. The update suggests that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The effective date and transition requirements for the amendments in ASU 2016-08 are the same as the effective date and transition requirements of ASU 2014-09. We do not expect a material impact on our financial condition, results of operations or cash flows from the adoption of this guidance. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718) (“ASU No. 2016-09”). This update is part of the FASB’s Simplification Initiative, which simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. We do not expect a material impact on our financial condition, results of operations or cash flows from the adoption of this guidance. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606) (“ASU 2016-10”). The amendments in this update do not change the core principle of the guidance. The amendments in this update clarify the identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The amendments in this update clarify that contractual provisions that, explicitly or implicitly, require an entity to transfer control of additional goods or services to a customer should be distinguished from contractual provisions that, explicitly or implicitly, define the attributes of a single promised license. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of update ASU 2014-09. The Company is currently evaluating the effect ASU 2016-10 will have on the Company’s condensed consolidated financial statements and disclosures. In May 2016, the FASB issued Accounting Standards Update No. 2016-12, Revenue from Contracts with Customers (Topic 606) (“ASU 2016-12”), in which the FASB finalized the guidance in the new revenue standard on collectibility, noncash consideration, presentation of sales tax, and transition. The amendments are intended to address implementation issues that were raised by stakeholders and discussed by the Revenue Recognition Transition Resource Group, and provide additional practical expedients. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of update ASU 2014-09. We do not expect a material impact on our financial condition, results of operations or cash flows from the adoption of this guidance. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”), which intends to reduce diversity in practice in how certain cash receipts and cash payments are presented in the statement of cash flows. ASU 2016-15 clarifies that the classification of cash activity relates to debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate and bank-owned life insurance policies, distributions received from equity-method investments and beneficial interests in securitization transactions. The new standard is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The early adoption of the provisions of ASU No. 2016-15 did not materially impact the Company's financial condition, results of operations or cash flows.

Concentration of credit risk

Concentration of credit risk	9 Months Ended
	Sep. 30, 2016
Concentration of credit risk
Concentration of credit risk	3. 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 September 30, December 31, 2016 2015 Customer A % % Customer B * Customer C * Customer H * * Less than 10% accounts receivable concentration. The Company’s revenue concentrations of 10% and greater are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Customer A % % % % Customer G * * Customer H * * * * Less than 10% revenue concentration. a

Net income per share

Net income per share	9 Months Ended
	Sep. 30, 2016
Net income per share
Net income per share	4. Net income per share The Company computes net income 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 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, 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 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 shares with higher earnings add back per incremental share. The following table sets forth the computation of basic and diluted net income per share: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income $ $ $ $ Amounts allocated to participating preferred stockholders under the two-class method Net income applicable to common stockholders (basic and dilutive) $ $ $ $ Denominator: Weighted-average common stock outstanding (basic) Common equivalent shares from options and warrants to purchase common stock Weighted-average common stock outstanding (diluted)(1) Basic net income per share applicable to common stockholders $ $ $ $ Diluted net income per share applicable to common stockholders(1) $ $ $ $ (1) In accordance with ASC 260-10-45-48, for the three and nine months ended September 30, 2016 and 2015, the Company excluded 396,500 and 1,446,500, respectively, of contingently-issued restricted shares from diluted weighted average common stock outstanding as the contingencies were neither (a) 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 per share calculation because the effect would have been anti-dilutive: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Stock options — Restricted stock awards — — Convertible preferred stock(1) Total anti-dilutive securities (1) Diluted net income per share increases 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 and nine months ended September 30, 2016 and 2015.

Stock-based compensation expens

Stock-based compensation expense	9 Months Ended
	Sep. 30, 2016
Stock-based compensation expense and assumptions
Stock-based compensation expense and assumptions	5. Stock-based compensation expense 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. During the first quarter of 2016, 0.8 million stock options were granted to certain employees of the Company, with a grant fair value of $0.7 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 second quarter of 2016, 0.1 million restricted stock awards with a grant fair value of $0.2 million were granted to certain members of the Company’s Board of Directors. The final number of vested shares is subject to 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 12 months. During the second quarter of 2016, 0.5 million shares of the 2015 restricted stock awards granted to certain officers of the Company vested. The market condition was achieved as the Company’s volume weighted average price on NASDAQ was greater than or equal to $3.50 per share for seven consecutive trading days, or any ten trading days over a consecutive thirty-five day period. The market condition was valued at $0.7 million, of which $0.5 million was expensed as of March 31, 2016 and an additional $0.2 million was expensed during the three months ended June 30, 2016. The following summarizes stock-based compensation expense recognized by income statement classification: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Processing and service costs $ $ $ $ Selling, general and administrative expenses Restructuring charges — — Total stock-based compensation expense $ $ $ $ The following summarizes stock-based compensation expense recognized by type: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Stock options $ $ $ $ Restricted stock awards Total stock-based compensation expense $ $ $ $

Property and equipment

Property and equipment	9 Months Ended
	Sep. 30, 2016
Property and equipment
Property and equipment	6. Property and equipment Property and equipment, net consist of the following: Estimated As of As of useful life September 30, December 31, (in years) 2016 2015 Equipment - 7 $ $ Computer hardware - 5 Furniture and fixtures - 7 Leasehold improvements - 10 Total property and equipment, gross Less: Accumulated depreciation and amortization Property and equipment, net $ $ Property and equipment depreciation and amortization expense is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Depreciation and amortization expense $ $ $ $ Included in depreciation and amortization expense for the three and nine months ended September 30, 2016 is $0.2 million and $0.3 million, respectively, of expense related to the acceleration of amortization on certain assets due to exiting a floor in the Company’s corporate location before the end of the lease term. The cease use date is October 1, 2016. For additional information on the Company’s restructuring charges disclosure, refer to Note 14.

Goodwill and intangible assets

Goodwill and intangible assets	9 Months Ended
	Sep. 30, 2016
Goodwill and intangible assets
Goodwill and intangible assets	7. Goodwill and intangible assets The change in carrying amount of goodwill for the nine months ended September 30, 2016 is as follows: Goodwill, gross, as of December 31, 2015 $ Impact of change in Euro exchange rate Accumulated impairment losses as of September 30, 2016 — Goodwill, net, as of September 30, 2016 $ The entire goodwill balance is assigned to the payment processing services segment. 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 are as follows: As of September 30, 2016 As of December 31, 2015 Amortization Gross book Accumulated Net book Gross book Accumulated Net book period value amortization value value amortization value (in years) Trademarks and patents $ $ $ $ $ $ - 21 Technology Intangible assets, net $ $ $ $ $ $ Amortization expense related to intangible assets is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Amortization expense $ $ $ $

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and contingencies
Commitments and contingencies	8. Commitments and contingencies Employment agreements Pursuant to employment agreements with certain employees, the Company had a commitment to pay severance of approximately $1.2 million as of September 30, 2016 and $0.9 million as of December 31, 2015, in the event of an involuntary termination, 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 $1.2 million as of September 30, 2016 and $1.1 million as of December 31, 2015. 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 on 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 $0.9 million with the sponsoring bank against such liabilities and has itself paid the acquirer a reserve of $0.3 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 September 30, 2016 and December 31, 2015, 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 may be involved in legal proceedings 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 was required to pay minimum annual sponsorship transaction fees of $0.3 million in year one. The minimum fees escalate each subsequent year with minimum fees of $0.5 million due 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 payment processing service fees 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 its merchants sponsored under the agreement. No contingent liability has been recorded as of September 30, 2016 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.

Credit Facility

Credit Facility	9 Months Ended
	Sep. 30, 2016
Convertible debt
Credit Facility	9. Credit Facility On June 10, 2015, the Company entered into a $10.0 million secured revolving credit facility (the “Credit Facility”) with Citizens Bank, N.A. (“Citizens”) pursuant to a Credit and Security Agreement by and among the Company, certain affiliates thereof as borrowers or guarantors, and Citizens (the “Credit Agreement”). On January 28, 2016, the Company entered into a Second Amendment to Credit and Security Agreement with Citizens and certain subsidiary affiliates of the Company as borrowers and/or guarantors (the “Amendment”). The Amendment amends the Credit Agreement and provides for an increase in the Company’s line of credit (the “Line of Credit”) with Citizens from $10.0 million to $20.0 million. The Line of Credit is secured by substantially all of the Company’s personal property, including the Company’s intellectual property and that of its subsidiaries that are borrowers or guarantors. The interest rate applicable to committed borrowings is tied to LIBOR plus a margin of 2.5%. The Credit Agreement also provides for a letter of credit sub-facility of up to $2.0 million. The Credit Agreement contains customary affirmative and negative covenants, including, among others, financial covenants based on the Company’s leverage and fixed charge coverage ratios, as well as an obligation to maintain a minimum availability requirement of at least $5.0 million in the aggregate of cash and availability under the line of credit. The Credit Facility will provide funds for general corporate purposes and repurchases of issued and outstanding capital stock of the Company. The Credit Facility matures on December 31, 2020 and is payable in full upon maturity. On April 12, 2016, the Company borrowed approximately $13.9 million under the Credit Facility. Subsequently, on April 26, 2016, the Company repaid $4.0 million on the Credit Facility. As of September 30, 2016, the Company had $9.9 million outstanding under the Credit Facility and was in compliance with all financial covenants contained in the Credit Agreement.

Convertible preferred stock

Convertible preferred stock	9 Months Ended
	Sep. 30, 2016
Convertible preferred stock.
Convertible preferred stock	10. Convertible preferred stock On April 11, 2016, 708,352 shares of Series A Preferred Stock were converted into 2,162,907 shares of common stock at a conversion ratio of approximately 3.05 shares of common stock per share of Series A Preferred Stock. As of September 30, 2016, the remaining preferred stock consists of 1,535,398 shares designated (and issued) as Series A Preferred Stock, and 1,756,250 shares which are undesignated (and unissued). Each issued share of Series A Preferred Stock is convertible into approximately 3.05 shares of common stock, for a total of 4,688,237 shares of common stock. For additional information on the Company’s convertible preferred stock disclosure, refer to Note 9 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Accrued expenses

Accrued expenses	9 Months Ended
	Sep. 30, 2016
Accrued expenses
Accrued expenses	11. Accrued expenses The following are the components of accrued expenses: As of As of September 30, December 31, 2016 2015 Bonus $ $ Deferred revenue(*) Deferred incentive(**) Other(***) Total accrued expenses $ $ (*) (**) (***)

Segment information

Segment information	9 Months Ended
	Sep. 30, 2016
Segment information
Segment information	12. 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 (“CODM”) in deciding how to allocate resources and in assessing performance. The 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 $0.5 million and $1.0 million, which is included in “processing and services costs” for the three months ended September 30, 2016 and 2015, respectively, and $1.9 million and $2.3 million for the nine months ended September 30, 2016 and 2015, 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 September 30, 2016 and December 31, 2015, long-lived asset amounts are $6.8 million and $7.4 million, respectively. The Company conducts its business primarily in three geographical regions: Asia-Pacific (“APAC”); the Americas; and Europe, Middle East and Africa (“EMEA”). The following table provides revenue concentration by geographic region. Analysis of revenue by segment and geographical region and reconciliations to consolidated revenue, gross profit, and income before the provision for income taxes are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net Revenue: APAC $ $ $ $ The Americas EMEA Total multi-currency processing services revenue Payment processing services revenue Net revenue $ $ $ $ Gross Profit: APAC $ $ $ $ The Americas EMEA Total multi-currency processing services gross profit Payment processing services gross profit Total reportable segment gross profit Corporate allocated cost of sales Total gross profit $ $ $ $ Income from operations before provision for income taxes: Total gross profit $ $ $ $ Selling, general and administrative expenses Restructuring charges Income from operations Interest expense Interest income Other income — — Total other income (expense), net Income from operations before provision for income taxes $ $ $ $ Payment processing services revenue and gross profit are the result of transactions that primarily originated in the Americas. For the three months ended September 30, 2016, Customer B and Customer G had revenue concentration of 14% and 35%, respectively, and for the nine months ended September 30, 2016, Customer B and Customer G had revenue concentration of 15% and 30%, respectively. For the three months ended September 30, 2015, Customer B and Customer G had revenue concentration of 15% and 24%, respectively, and for the nine months ended September 30, 2015, Customer B and Customer G had revenue concentration of 15% and 22%, respectively. “Corporate allocated cost of sales” includes expenses of running its platform infrastructure including: Internet connectivity, hosting and data storage expenses, amortization expenses of capitalized software development costs, compensation and related benefits of its technology personnel and a portion of general overhead expenses. Concentration of revenue by customer by geographical region: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Multi-currency processing services revenue: APAC: Customer A % % % % The Americas: Customer D * Customer E * * Customer F * * Customer I * * Customer J * * EMEA: Customer C Customer H (*) Less than 10% revenue concentration.

Stock repurchase program

Stock repurchase program	9 Months Ended
	Sep. 30, 2016
Stock Repurchase Program
Stock repurchase program	13. Stock Repurchases Stock repurchase program In 2014 and 2015, the Board of Directors authorized a total repurchase of $13.5 million of the Company’s outstanding shares of common stock. As of March 9, 2016, the total amount of common stock repurchased under the program was 4.9 million shares for an aggregate price of $11.5 million and $2.0 million remained available for repurchase under the program. As of March 10, 2016, the stock repurchase program was suspended in connection with the tender offer. On August 2, 2016, the Board of Directors reinstated the Company’s share repurchase program and expanded the authorization by an incremental $4.0 million, bringing its total current authorization to $6.0 million. From August 2, 2016 to September 30, 2016, the Company repurchased approximately 1.6 million shares of common stock for an aggregate price of $6.0 million. As of September 30, 2016, the total amount of common stock repurchased under the program was 6.5 million shares for an aggregate price of $17.5 million and there is currently no availability under the program. Tender offer On March 10, 2016, the Board of Directors authorized the Company to commence a modified “Dutch auction” tender offer to repurchase up to $15.0 million of its outstanding shares of common stock at a tender price of not less than $3.20 per share or greater than $3.60 per share. The tender offer commenced on March 14, 2016 and expired on April 11, 2016. On April 12, 2016, the Company paid $14.2 million, including transaction costs, to repurchase approximately 3.9 million shares at a tender price of $3.60 per share. The repurchased shares of common stock became treasury shares of the Company.

Restructuring charges

Restructuring charges	9 Months Ended
	Sep. 30, 2016
Restructuring charges
Restructuring charges	14. Restructuring charges During the second quarter of 2016, the Company incurred total restructuring charges of approximately $125,000, of which approximately $100,000 represents the accelerated amortization of certain assets due to exiting a floor in its corporate location before the end of the lease term. The remaining amount represents the cash components of severance and benefits paid during the period. During the third quarter of 2016, the Company incurred total restructuring charges of approximately $229,000, of which approximately $150,000 represents the accelerated amortization of certain assets due to exiting a floor in its corporate location before the end of the lease term. The cease use date is October 1, 2016. The remaining amount represents the cash components of severance and benefits paid during the period.

Subsequent events

Subsequent events	9 Months Ended
	Sep. 30, 2016
Subsequent events
Subsequent events	15. Subsequent event On November 1, 2016, the Company’s Board of Directors authorized the repurchase of up to $10.0 million of the Company’s outstanding shares of common stock.

Concentration of credit risk (T

Concentration of credit risk (Tables)	9 Months Ended
	Sep. 30, 2016
Accounts Receivable
Concentration of credit risk
Schedule of concentrations of 10% and greater	As of As of September 30, December 31, 2016 2015 Customer A % % Customer B * Customer C * Customer H * * Less than 10% accounts receivable concentration.
Revenue
Concentration of credit risk
Schedule of concentrations of 10% and greater	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Customer A % % % % Customer G * * Customer H * * * * Less than 10% revenue concentration.

Net income per share (Tables)

Net income per share (Tables)	9 Months Ended
	Sep. 30, 2016
Net income per share
Schedule of computation of basic and diluted net income (loss) per share	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator: Net income $ $ $ $ Amounts allocated to participating preferred stockholders under the two-class method Net income applicable to common stockholders (basic and dilutive) $ $ $ $ Denominator: Weighted-average common stock outstanding (basic) Common equivalent shares from options and warrants to purchase common stock Weighted-average common stock outstanding (diluted)(1) Basic net income per share applicable to common stockholders $ $ $ $ Diluted net income per share applicable to common stockholders(1) $ $ $ $ (1) In accordance with ASC 260-10-45-48, for the three and nine months ended September 30, 2016 and 2015, the Company excluded 396,500 and 1,446,500, respectively, of contingently-issued restricted shares from diluted weighted average common stock outstanding as the contingencies were neither (a) 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Stock options — Restricted stock awards — — Convertible preferred stock(1) Total anti-dilutive securities (1) Diluted net income per share increases 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 and nine months ended September 30, 2016 and 2015.

Stock-based compensation expe24

Stock-based compensation expense (Tables)	9 Months Ended
	Sep. 30, 2016
Stock-based compensation expense and assumptions
Summary of stock-based compensation expense recognized by income statement classification	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Processing and service costs $ $ $ $ Selling, general and administrative expenses Restructuring charges — — Total stock-based compensation expense $ $ $ $
Summary of stock-based compensation expense recognized by type	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Stock options $ $ $ $ Restricted stock awards Total stock-based compensation expense $ $ $ $

Property and equipment (Tables)

Property and equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property and equipment
Schedule of property and equipment, net	Estimated As of As of useful life September 30, December 31, (in years) 2016 2015 Equipment - 7 $ $ Computer hardware - 5 Furniture and fixtures - 7 Leasehold improvements - 10 Total property and equipment, gross Less: Accumulated depreciation and amortization Property and equipment, net $ $
Schedule of property and equipment depreciation and amortization expense	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Depreciation and amortization expense $ $ $ $

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and intangible assets
Schedule of changes in carrying amount of goodwill	Goodwill, gross, as of December 31, 2015 $ Impact of change in Euro exchange rate Accumulated impairment losses as of September 30, 2016 — Goodwill, net, as of September 30, 2016 $
Schedule of the gross book value, accumulated amortization and amortization periods of intangible assets	As of September 30, 2016 As of December 31, 2015 Amortization Gross book Accumulated Net book Gross book Accumulated Net book period value amortization value value amortization value (in years) Trademarks and patents $ $ $ $ $ $ - 21 Technology Intangible assets, net $ $ $ $ $ $
Schedule of amortization expense related to intangible assets	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Amortization expense $ $ $ $

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Sep. 30, 2016
Accrued expenses
Schedule of the components of accrued expenses	As of As of September 30, December 31, 2016 2015 Bonus $ $ Deferred revenue(*) Deferred incentive(**) Other(***) Total accrued expenses $ $ (*) (**) (***)

Segment information (Tables)

Segment information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment information
Schedule of revenue by segment and geographical region and reconciliations to consolidated revenue and gross profit	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net Revenue: APAC $ $ $ $ The Americas EMEA Total multi-currency processing services revenue Payment processing services revenue Net revenue $ $ $ $ Gross Profit: APAC $ $ $ $ The Americas EMEA Total multi-currency processing services gross profit Payment processing services gross profit Total reportable segment gross profit Corporate allocated cost of sales Total gross profit $ $ $ $ Income from operations before provision for income taxes: Total gross profit $ $ $ $ Selling, general and administrative expenses Restructuring charges Income from operations Interest expense Interest income Other income — — Total other income (expense), net Income from operations before provision for income taxes $ $ $ $
Schedule of concentration of revenue by customer by geographical region	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Multi-currency processing services revenue: APAC: Customer A % % % % The Americas: Customer D * Customer E * * Customer F * * Customer I * * Customer J * * EMEA: Customer C Customer H (*)

Business description and basi29

Business description and basis of presentation (Details)	Sep. 30, 2016item
Business description and basis of presentation
Number of active merchant locations to which the Company provides services	197,000
Number of countries in which the entity provides services	23

Concentration of credit risk (D

Concentration of credit risk (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
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		$ 250,000
Accounts Receivable | Credit concentration risk | Customer A
Concentration of credit risk
Concentration risk (as a percent)			16.00%		15.00%
Accounts Receivable | Credit concentration risk | Customer B
Concentration of credit risk
Concentration risk (as a percent)			13.00%
Accounts Receivable | Credit concentration risk | Customer C
Concentration of credit risk
Concentration risk (as a percent)			12.00%
Accounts Receivable | Credit concentration risk | Customer H
Concentration of credit risk
Concentration risk (as a percent)					11.00%
Revenue | Customer concentration risk | Customer A
Concentration of credit risk
Concentration risk (as a percent)	16.00%	17.00%	16.00%	19.00%
Revenue | Customer concentration risk | Customer H
Concentration of credit risk
Concentration risk (as a percent)		13.00%
Revenue | Customer concentration risk | Customer G
Concentration of credit risk
Concentration risk (as a percent)	14.00%		12.00%

Net income per share (Details)

Net income per share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net income	$ 2,225,413	$ 105,971	$ 5,268,441	$ 3,692,925
Amounts allocated to participating preferred stockholders under the two-class method	(196,868)	(12,284)	(466,065)	(428,090)
Net income applicable to common stockholders (basic and dilutive)	$ 2,028,545	$ 93,687	$ 4,802,376	$ 3,264,835
Denominator:
Weighted-average common stock outstanding (basic) (in shares)	49,179,596	51,360,758	49,848,634	52,985,106
Common equivalent shares from options and warrants to purchase common stock (in shares)	2,074,627	1,023,633	2,153,615	626,862
Weighted-average common stock outstanding (diluted) (in shares)	51,254,223	52,384,391	52,002,249	53,611,968
Basic net income per share applicable to common stockholders ( in dollars per share)	$ 0.04	$ 0	$ 0.10	$ 0.06
Diluted net income per share applicable to common stockholders (in dollars per share)	$ 0.04	$ 0	$ 0.09	$ 0.06
Total anti-dilutive securities (in shares)	4,688,237	10,440,006	6,098,646	12,045,310
Contingently issued restricted shares
Denominator:
Total anti-dilutive securities (in shares)	396,500	1,446,500	396,500	1,446,500

Net income per share other (Det

Net income per share other (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	4,688,237	10,440,006	6,098,646	12,045,310
Stock options
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)		3,588,862	581,665	5,096,019
Restricted stock
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)			23,574	98,147
Convertible preferred stock
Anti-dilutive securities excluded from computation of diluted earnings per share
Total anti-dilutive securities (in shares)	4,688,237	6,851,144	5,493,407	6,851,144

Stock-based compensation expe33

Stock-based compensation expense (Details) shares in Millions	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)$ / sharesitemshares	Mar. 31, 2016USD ($)shares	Sep. 30, 2015USD ($)	Jun. 30, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Stock-based expense
Options granted (in shares) | shares			0.8
Total stock-based compensation expense	$ 317,459			$ 736,151		$ 1,498,358	$ 1,197,741
Processing and service costs
Stock-based expense
Total stock-based compensation expense	35,051			43,030		134,112	143,611
Selling general and administrative expenses
Stock-based expense
Total stock-based compensation expense	282,408			656,197		1,364,246	1,017,206
Restructuring charge
Stock-based expense
Total stock-based compensation expense				36,924			36,924
Stock options
Stock-based expense
Fair value of options granted			$ 700,000
Requisite service period			36 months
Total stock-based compensation expense	217,537			528,249		766,766	783,954
Restricted stock
Stock-based expense
Total stock-based compensation expense	$ 99,922			$ 207,902		$ 731,592	$ 413,787
Restricted stock | Officers
Additional information
Restricted stock awards vested (in shares) | shares		0.5
Number of consecutive trading days equal or over $3.50 per share | item		7
Number of trading days equal or over $3.50 per share over a consecutive thirty-five day period | item		10
Number of consecutive days which any ten trading days equal or over $3.50 per share | item		35
Value at market condition					$ 700,000
Restricted stock awards expensed		$ 200,000	$ 500,000
Restricted stock | Officers | Awarded third quarter 2015 expires December 31, 2017
Additional information
Minimum volume weighted average price on NASDAQ (per share) | $ / shares		3.50			3.50
Restricted stock | Directors
Stock-based expense
Awards granted (in shares) | shares		0.1
Fair value of awards granted		$ 200,000
Requisite service period		12 months

Property and equipment (Details

Property and equipment (Details) - USD ($)	3 Months Ended			9 Months Ended		21 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Dec. 31, 2015
Property and equipment
Total property and equipment	$ 5,433,036			$ 5,433,036		$ 5,433,036	$ 5,163,309
Less: Accumulated depreciation and amortization	(4,111,694)			(4,111,694)		(4,111,694)	(3,351,690)
Property and equipment, net	1,321,342			1,321,342		1,321,342	1,811,619
Depreciation and amortization expense	328,181		$ 164,538	768,740	$ 489,010
Accelerated Depreciation on abandoned assets	150,000	$ 100,000		300,000
Equipment
Property and equipment
Total property and equipment	1,008,798			1,008,798		$ 1,008,798	958,175
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	3,409,750			3,409,750		$ 3,409,750	3,266,233
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	227,851			227,851		$ 227,851	192,565
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	$ 786,637			$ 786,637		$ 786,637	$ 746,336
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 asset35

Goodwill and intangible assets - Goodwill (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill
Goodwill, gross, at the Beginning of the period	$ 286,852
Impact of change in Euro exchange rate	7,992
Goodwill, net, at the end of the period	$ 294,844

Goodwill and intangible asset36

Goodwill and intangible assets - Intangible assets (Details) - USD ($)	3 Months Ended		9 Months Ended		21 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Dec. 31, 2015
Intangible assets
Gross book value	$ 3,658,072		$ 3,658,072		$ 3,658,072	$ 3,573,464
Accumulated amortization	(2,676,793)		(2,676,793)		(2,676,793)	(2,195,200)
Net book value	981,279		981,279		981,279	1,378,264
Amortization expense	143,692	$ 143,599	431,710	$ 431,388
Trademarks and patents
Intangible assets
Gross book value	1,202,666		1,202,666		1,202,666	1,184,612
Accumulated amortization	(538,214)		(538,214)		(538,214)	(472,914)
Net book value	664,452		664,452		$ 664,452	711,698
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	2,455,406		2,455,406		$ 2,455,406	2,388,852
Accumulated amortization	(2,138,579)		(2,138,579)		(2,138,579)	(1,722,286)
Net book value	$ 316,827		$ 316,827		$ 316,827	$ 666,566
Amortization period					5 years

Commitments and contingencies (

Commitments and contingencies (Details) - USD ($) $ in Millions	Sep. 01, 2013	Sep. 30, 2013	Sep. 30, 2016	Dec. 31, 2015
Employment agreements
Commitment to pay severance in event of employment termination without cause			$ 1.2	$ 0.9
Commitment to pay severance in event of employment termination upon change of control			1.2	$ 1.1
Fraud related to certain credit card transactions
Employment agreements
Reserves posted by merchants with sponsor bank			0.9
Reserves posted by entity			0.3
Cash reserves required to be posted by merchant, entity			2.2
Contingent liability			0
Bank Sponsorship Agreement
Employment agreements
Contingent liability			$ 0
Term of Bank Sponsorship Agreement	5 years	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
Cost of sales | Bank Sponsorship Agreement | Financial Guarantee | Minimum
Employment agreements
Bank sponsorship agreement fees due	$ 1.8

Credit Facility (Details)

Credit Facility (Details) - USD ($)	Apr. 26, 2016	Jan. 28, 2016	Sep. 30, 2016	Apr. 12, 2016	Jun. 10, 2015
Debt Instrument [Line Items]
Credit Facility repaid			$ 4,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 20,000,000			$ 10,000,000
Minimum availability requirement		$ 5,000,000
Credit Facility borrowed			$ 9,900,000	$ 13,900,000
Credit Facility repaid	$ 4,000,000
Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Variable interest rate		2.50%
Revolving Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 2,000,000

Convertible preferred stock (De

Convertible preferred stock (Details) - shares	Sep. 30, 2016	Apr. 11, 2016	Dec. 31, 2015
Convertible preferred stock
Shares designated (and issued)	2,243,750		2,243,750
Series A Preferred stock
Convertible preferred stock
Number of Series A Preferred Stock converted		708,352
Number of common stock that Series A Preferred Stock converted into		2,162,907
Conversion ratio of common stock per share of Series A Preferred Stock	3.05	3.05
Shares designated (and issued)	1,535,398
Shares undesignated (and unissued)	1,756,250
Number of common shares into which each issued share to be converted	3.05	3.05
Total number of common shares into which issued shares to be converted	4,688,237

Accrued expenses (Details)

Accrued expenses (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Bonus	$ 307,292	$ 710,739
Deferred revenue	753,787	688,418
Deferred incentive	600,000	950,000
Other	2,798,281	4,089,443
Total accrued expenses	$ 4,459,360	6,438,600
Recognition period of deferred revenue	12 months
Non-current portion of deferred revenue		600,000
Noncurrent Portion Of Deferred Incentive	$ 200,000	700,000
Multicurrency Referral Commissions	$ 500,000	$ 1,600,000
Maximum percentage of total current liabilities	10.00%	10.00%
Long-term lease and deferred income
Non-current portion of deferred revenue	$ 700,000

Segment information - Informati

Segment information - Information about revenue, profit and assets (Details)	3 Months Ended			9 Months Ended
	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)item	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment information
Number of reportable segments | item				2
Cost of sales included in processing and services costs	$ 2,878,088		$ 3,776,232	$ 9,902,879	$ 10,399,830
Long-lived assets	6,800,000			$ 6,800,000		$ 7,400,000
Number of geographical regions in which the entity conducts its business | item				3
Net Revenue:
Net revenue	13,621,239		12,618,413	$ 40,409,128	37,434,542
Gross Profit:
Total gross profit	7,961,862		6,150,091	22,299,047	19,163,533
Income from operations before provision for income taxes:
Total gross profit	7,961,862		6,150,091	22,299,047	19,163,533
Selling, general and administrative expenses	5,222,560		5,657,740	15,908,166	14,840,844
Restructuring charges	229,121	$ 125,000	283,726	354,389	283,726
Income from operations	2,510,181		208,625	6,036,492	4,038,963
Interest expense	(88,669)		(10,372)	(186,366)	(38,815)
Interest income	428		392	1,250	1,183
Other income	93,016			93,016
Total other income (expense), net	4,775		(9,980)	(92,100)	(37,632)
Income from operations before provision for income taxes	2,514,956		198,645	5,944,392	4,001,331
Operating segments
Gross Profit:
Total gross profit	10,306,583		8,893,532	30,305,001	27,230,806
Income from operations before provision for income taxes:
Total gross profit	10,306,583		8,893,532	30,305,001	27,230,806
Corporate allocated cost of sales
Gross Profit:
Total gross profit	2,344,721		2,743,441	8,005,954	8,067,273
Income from operations before provision for income taxes:
Total gross profit	2,344,721		2,743,441	8,005,954	8,067,273
Multi-currency processing services
Segment information
Cost of sales included in processing and services costs	500,000		1,000,000	1,900,000	2,300,000
Net Revenue:
Net revenue	8,175,476		7,792,329	24,768,314	23,535,783
Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	7,642,109		6,759,538	22,871,389	21,203,228
Income from operations before provision for income taxes:
Total gross profit	7,642,109		6,759,538	22,871,389	21,203,228
Payment processing services
Net Revenue:
Net revenue	5,445,763		4,826,084	15,640,814	13,898,759
Payment processing services | Operating segments
Gross Profit:
Total gross profit	2,664,474		2,133,994	7,433,612	6,027,578
Income from operations before provision for income taxes:
Total gross profit	2,664,474		2,133,994	7,433,612	6,027,578
APAC
Net Revenue:
Net revenue	3,962,539		3,573,478	11,541,521	11,836,523
APAC | Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	3,942,457		3,547,202	11,467,607	11,741,027
Income from operations before provision for income taxes:
Total gross profit	3,942,457		3,547,202	11,467,607	11,741,027
Americas
Net Revenue:
Net revenue	2,634,887		1,870,722	7,264,448	5,114,772
Americas | Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	2,470,294		1,761,686	6,766,889	4,799,928
Income from operations before provision for income taxes:
Total gross profit	2,470,294		1,761,686	6,766,889	4,799,928
EMEA
Net Revenue:
Net revenue	1,578,050		2,348,129	5,962,345	6,584,488
EMEA | Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	1,229,358		1,450,650	4,636,893	4,662,273
Income from operations before provision for income taxes:
Total gross profit	$ 1,229,358		$ 1,450,650	$ 4,636,893	$ 4,662,273

Segment information - Concentra

Segment information - Concentration of revenue by customer by geographical region (Details) - Revenue	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Geographical concentration risk | Multi-currency processing services | Customer I
Revenue concentration
Concentration risk (as a percent)	15.00%		12.00%
Geographical concentration risk | Multi-currency processing services | Customer J
Revenue concentration
Concentration risk (as a percent)	15.00%		11.00%
Geographical concentration risk | Multi-currency processing services | APAC | Customer A
Revenue concentration
Concentration risk (as a percent)	56.00%	59.00%	56.00%	59.00%
Geographical concentration risk | Multi-currency processing services | Americas | Customer D
Revenue concentration
Concentration risk (as a percent)	22.00%		22.00%	10.00%
Geographical concentration risk | Multi-currency processing services | Americas | Customer E
Revenue concentration
Concentration risk (as a percent)		10.00%		13.00%
Geographical concentration risk | Multi-currency processing services | Americas | Customer F
Revenue concentration
Concentration risk (as a percent)		19.00%		19.00%
Geographical concentration risk | Multi-currency processing services | EMEA | Customer C
Revenue concentration
Concentration risk (as a percent)	58.00%	27.00%	61.00%	48.00%
Geographical concentration risk | Multi-currency processing services | EMEA | Customer H
Revenue concentration
Concentration risk (as a percent)	37.00%	72.00%	37.00%	52.00%
Customer concentration risk | Customer A
Revenue concentration
Concentration risk (as a percent)	16.00%	17.00%	16.00%	19.00%
Customer concentration risk | Customer H
Revenue concentration
Concentration risk (as a percent)		13.00%
Customer concentration risk | Customer G
Revenue concentration
Concentration risk (as a percent)	14.00%		12.00%
Customer concentration risk | Multi-currency processing services | Customer B
Revenue concentration
Concentration risk (as a percent)	14.00%	15.00%	15.00%	15.00%
Customer concentration risk | Multi-currency processing services | Customer G
Revenue concentration
Concentration risk (as a percent)	35.00%	24.00%	30.00%	22.00%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions	Apr. 12, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Mar. 09, 2016	Sep. 30, 2016	Aug. 02, 2016	Mar. 10, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares repurchased, authorized amount							$ 6,000,000		$ 13,500,000	$ 13,500,000
Shares repurchased, increased authorized amount							$ 4,000,000
Repurchase of common stock paid			$ 23,843,474	$ 4,567,501
Common stock repurchased (in shares)		1.6			4.9	6.5
Stock repurchased, aggregate price		$ 6,000,000			$ 11,500,000	$ 17,500,000
Remaining shares available for purchase, value					$ 2,000,000
Modified "Dutch auction" tender offer
Shares repurchased, authorized amount								$ 15,000,000
Share price (in dollars per share)	$ 3.60
Repurchase of common stock paid	$ 14,200,000
Common stock repurchased (in shares)	3.9
Modified "Dutch auction" tender offer | Maximum
Share price (in dollars per share)								$ 3.60
Modified "Dutch auction" tender offer | Minimum
Share price (in dollars per share)								$ 3.20

Restructuring charges (Details)

Restructuring charges (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring charges
Restructuring charges	$ 229,121	$ 125,000	$ 283,726	$ 354,389	$ 283,726
Accelerated Depreciation on abandoned assets	$ 150,000	$ 100,000		$ 300,000

Subsequent events (Details)

Subsequent events (Details) - USD ($) $ in Millions	Nov. 01, 2016	Aug. 02, 2016	Dec. 31, 2015	Dec. 31, 2014
Subsequent events
Shares repurchased, authorized amount		$ 6	$ 13.5	$ 13.5
Subsequent event
Subsequent events
Shares repurchased, authorized amount	$ 10