Planet Payment 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Planet Payment Inc
Entity Central Index Key	1,362,925
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
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		50,012,263
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,802,497	$ 13,305,816
Restricted cash	4,350,588	4,981,472
Accounts receivable, net of allowances of $0.1 million as of September 30, 2017 and December 31, 2016	7,915,203	6,060,533
Prepaid expenses and other assets	2,048,902	1,940,544
Total current assets	24,117,190	26,288,365
Other assets:
Restricted cash	550,580	550,402
Property and equipment, net	1,652,484	1,674,410
Software development costs, net	4,190,599	4,197,142
Intangible assets, net	605,657	827,474
Goodwill	310,736	276,786
Deferred tax asset	22,343,511	22,673,206
Other long-term assets	1,452,404	2,095,817
Total other assets	31,105,971	32,295,237
Total assets	55,223,161	58,583,602
Current liabilities:
Accounts payable	1,064,240	830,479
Accrued expenses	3,360,875	5,353,735
Due to merchants	4,526,072	5,199,390
Current portion of capital leases	188,971	166,966
Total current liabilities	9,140,158	11,550,570
Long-term liabilities:
Long-term debt		9,916,000
Other long-term liabilities	324,998	854,991
Total long-term liabilities	324,998	10,770,991
Total liabilities	9,465,156	22,321,561
Commitments and contingencies (Note 8)
Stockholders' equity:
Convertible preferred stock-10,000,000 shares authorized as of September 30, 2017 and December 31, 2016, $0.01 par value: Series A-1,535,398 issued and outstanding as of September 30, 2017 and December 31, 2016; $6,141,592 aggregate liquidation preference as of September 30, 2017 and December 31, 2016	15,354	15,354
Common stock-250,000,000 shares authorized as of September 30, 2017 and December 31, 2016, $0.01 par value, and 60,232,922 shares issued and 49,857,568 shares outstanding as of September 30, 2017, and 59,666,333 shares issued and 49,290,979 shares outstanding as of December 31, 2016	603,468	596,663
Treasury stock, at cost, 10,375,354 shares as of September 30, 2017 and December 31, 2016	(31,726,486)	(31,726,486)
Additional paid-in capital	113,565,756	111,327,321
Accumulated other comprehensive loss	(485,852)	(654,408)
Accumulated deficit	(36,214,235)	(43,296,403)
Total stockholders' equity	45,758,005	36,262,041
Total liabilities and stockholders' equity	$ 55,223,161	$ 58,583,602

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
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	1,535,398	1,535,398
Series A Convertible preferred stock, shares outstanding	1,535,398	1,535,398
Series A Convertible preferred stock, aggregate liquidation preference (in dollars)	$ 6,141,592	$ 6,141,592
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	60,346,797	59,666,333
Common stock, shares outstanding	49,971,443	49,290,979
Treasury stock, shares	10,375,354	10,375,354

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Net revenue	$ 13,805,324	$ 13,621,239	$ 39,050,592	$ 40,409,128
Cost of revenue:
Payment processing service fees	2,364,028	2,781,289	6,565,082	8,207,202
Processing and service costs	3,031,105	2,878,088	9,428,424	9,902,879
Total cost of revenue	5,395,133	5,659,377	15,993,506	18,110,081
Selling, general and administrative expenses	4,621,566	5,222,560	14,590,609	15,908,166
Restructuring charges		229,121	72,742	354,389
Total operating expenses	10,016,699	11,111,058	30,656,857	34,372,636
Income from operations	3,788,625	2,510,181	8,393,735	6,036,492
Other income (expense):
Interest expense	(12,863)	(88,669)	(222,008)	(186,366)
Interest income	644	428	1,752	1,250
Other income	111,613	93,016	111,613	93,016
Total other income (expense), net	99,394	4,775	(108,643)	(92,100)
Income from operations before provision for income taxes	3,888,019	2,514,956	8,285,092	5,944,392
Provision for income taxes	(192,920)	(289,543)	(1,202,924)	(675,951)
Net income	$ 3,695,099	$ 2,225,413	$ 7,082,168	$ 5,268,441
Basic net income per share applicable to common stockholders ( in dollars per share)	$ 0.07	$ 0.04	$ 0.13	$ 0.10
Diluted net income per share applicable to common stockholders (in dollars per share)	$ 0.07	$ 0.04	$ 0.13	$ 0.09
Weighted-average common stock outstanding (basic) (in shares)	49,391,614	49,179,596	49,184,276	49,848,634
Weighted-average common stock outstanding (diluted) (in shares)	51,261,769	51,254,223	51,297,019	52,002,249

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements of Comprehensive Income
Net income	$ 3,695,099	$ 2,225,413	$ 7,082,168	$ 5,268,441
Foreign currency translation adjustment	86,457	(11,530)	168,556	(18,752)
Total comprehensive income	$ 3,781,556	$ 2,213,883	$ 7,250,724	$ 5,249,689

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 7,082,168	$ 5,268,441
Net income	7,082,168	5,268,441
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	767,874	1,498,358
Depreciation and amortization expense	1,549,864	2,083,655
Provision for doubtful accounts	3,858	62,675
Deferred income taxes	329,695
Loss on disposal of property and equipment		500
Changes in operating assets and liabilities:
Decrease in settlement assets	630,884	1,160,869
Increase in accounts receivables, prepaid expenses and other assets	(1,928,650)	(258,790)
Decrease in other long-term assets	652,244	310,542
Decrease in accounts payable and accrued expenses	(2,353,775)	(2,407,891)
Decrease in due to merchants	(673,318)	(1,169,931)
Other	126,062	(44,740)
Net cash provided by operating activities	6,186,906	6,503,688
Cash flows from investing activities:
(Increase) decrease in restricted cash	(178)	2,853
Decrease in merchant reserve		(1,990)
Purchase of property and equipment	(318,676)	(156,165)
Capitalized software development	(709,760)	(999,733)
Purchase of intangible assets	(12,295)	(16,299)
Net cash used in investing activities	(1,040,909)	(1,171,334)
Cash flows from financing activities:
Proceeds from issuance of common stock	1,602,293	2,287,990
Principal payments on capital lease obligations	(199,349)	(272,417)
Borrowings under credit facility		13,916,000
Repayments under credit facility	(9,916,000)	(4,000,000)
Purchase of treasury stock		(23,843,474)
Common stock repurchases for tax withholdings	(136,260)	(655,104)
Net cash used in financing activities	(8,649,316)	(12,567,005)
Net decrease in cash and cash equivalents	(3,503,319)	(7,234,651)
Cash and cash equivalents at beginning of period	13,305,816	14,675,515
Cash and cash equivalents at end of period	9,802,497	7,440,864
Cash paid for:
Interest	176,901	165,252
Income taxes	909,249	744,911
Non-cash investing and financing activities:
Common stock issued for preferred stock conversion		21,629
Common stock issued for stock options exercised	262	98
Assets acquired under capital leases	47,067	122,630
Accrued capitalized hardware, software and fixed assets	238,970	75,870
Capitalized stock-based compensation	$ 11,333	$ 21,625

Business description and basis

Business description and basis of presentation	9 Months Ended
	Sep. 30, 2017
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 190,000 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, 2017 and for the periods ended September 30, 2017 and 2016 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, 2016. Operating results for the interim period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The December 31, 2016 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”). Reclassifications Certain prior period amounts have been reclassified to conform to current year presentation.

Recent accounting pronouncement

Recent accounting pronouncements	9 Months Ended
	Sep. 30, 2017
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) (“ASC 606”), 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 ASC 606 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 plans to elect to apply the modified retrospective approach upon adoption. Additionally, the new guidance requires enhanced disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including revenue recognition policies to identify performance obligations, assets recognized from costs incurred to obtain and fulfill a contract, and significant judgments in measurement and recognition. The Company has gathered all data from customer contracts and identified the promised services in each of those contracts. Those promised services primarily include transaction fees. The Company is in the process of identifying how those promised services are grouped into performance obligations. The Company is also determining whether some or all of those distinct services are part of a series of distinct services that are substantially the same and have the same pattern of transfer. The Company has identified variable consideration, including tiered pricing on our transaction fees, and is evaluating the impact of those variable considerations on our revenue recognition upon the adoption of ASC 606. Finally, the Company has identified several contract modifications and is evaluating how to account for these under the standard. We expect to complete the implementation of ASC 606 in 2017. 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. While the Company is currently evaluating the effect ASU 2016-02 will have on the condensed consolidated financial statements and disclosures, the adoption of this ASU will result in a significant increase to the Company’s stated assets and liabilities. 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 ASC 606. Through the use of various data gathering methods, the Company is categorizing the types of sales for our business units for the purpose of comparing how we currently recognize revenue for the purpose of quantifying the impact, if any, that this ASU will have on our consolidated financial statements. 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 ASC 606. Through the use of various data gathering methods, the Company is categorizing the types of sales for our business units for the purpose of comparing how we currently recognize revenue for the purpose of quantifying the impact, if any, that this ASU will have on our consolidated financial statements. 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 collectability, 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 ASC 606. Through the use of various data gathering methods, the Company is categorizing the types of sales for our business units for the purpose of comparing how we currently recognize revenue for the purpose of quantifying the impact, if any, that this ASU will have on our consolidated financial statements. In July 2017, the FASB issued Accounting Standards Update No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815) (“ASU 2017-11”). The amendments in this update change the classification analysis of certain equity-linked financial instruments with down round features and clarify existing disclosure requirements of such instruments. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the effect ASU 2017-11 will have on the condensed consolidated financial statements and disclosures.

Concentration of credit risk

Concentration of credit risk	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 Customer A % % Customer B The Company’s revenue concentrations of 10% and greater are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Customer A % % % % Customer G * * * Less than 10% revenue concentration. a

Net income per share

Net income per share	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 2017 2016 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 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, 2017 and 2016, the Company excluded 396,500, 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, 2017 2016 2017 2016 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, 2017 and 2016.

Stock-based compensation expens

Stock-based compensation expense	9 Months Ended
	Sep. 30, 2017
Stock incentive plan
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 second quarter of 2017, 34,000 stock options were granted to certain employees of the Company, with a grant fair value of $53,000. 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 2017, 5,000 restricted stock awards with a grant fair value of $21,000 were granted to an employee of the Company. 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 applicable service period of 36 months. During the second quarter of 2017, 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. The following summarizes stock-based compensation expense recognized by income statement classification: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Processing and service costs $ $ $ $ Selling, general and administrative expenses 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, 2017 2016 2017 2016 Stock options $ $ $ $ Restricted stock awards Total stock-based compensation expense $ $ $ $

Property and equipment

Property and equipment	9 Months Ended
	Sep. 30, 2017
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) 2017 2016 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, 2017 2016 2017 2016 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 was 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, 2017
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, 2017 is as follows: Goodwill, gross, as of December 31, 2016 $ 276,786 Impact of change in Euro exchange rate 33,950 Goodwill, net, as of September 30, 2017 $ 310,736 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, 2017 As of December 31, 2016 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, 2017 2016 2017 2016 Amortization expense $ $ $ $

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2017
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 $1.3 million as of September 30, 2017 and $1.2 million as of December 31, 2016, 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 $1.6 million as of September 30, 2017 and $1.4 million as of December 31, 2016. 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 $1.1 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, 2017 and December 31, 2016, 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, 2017 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, 2017
Credit Facility
Credit Facility	9. Credit Facility On February 2, 2017, the Company entered into an amendment to its credit facility (the “Credit Facility”) with Citizens Bank, N.A. (“Citizens”) to increase the Company’s borrowing capacity from $20.0 million to $30.0 million and extend the maturity date to December 31, 2021. The Line of Credit is secured by substantially all of the Company’s 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 Facility also provides for a letter of credit sub-facility of up to $2.0 million. The credit agreement with Citizens, as amended (“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 provides funding availability for, among other things, general corporate purposes and repurchases of issued and outstanding capital stock of the Company. During the second quarter of 2017, the Company repaid $9.9 million on the Credit Facility. The Company had no outstanding borrowings under the Credit Facility at September 30, 2017 and was in compliance with all financial covenants contained in the Credit Agreement. The Company had $9.9 million outstanding under the Credit Facility at December 31, 2016.

Convertible preferred stock

Convertible preferred stock	9 Months Ended
	Sep. 30, 2017
Convertible preferred stock
Convertible preferred stock	10. Convertible preferred stock During 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 in accordance with the terms of the Series A Preferred Stock Purchase agreement. As of September 30, 2017, 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, 2016.

Accrued expenses

Accrued expenses	9 Months Ended
	Sep. 30, 2017
Accrued expenses
Accrued expenses	11. Accrued expenses The following are the components of accrued expenses: As of As of September 30, December 31, 2017 2016 Bonus $ $ Deferred revenue(*) Deferred incentive(**) 1,087,591 Other(***) Total accrued expenses $ $ (*) (**) (***)

Segment information

Segment information	9 Months Ended
	Sep. 30, 2017
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 $0.4 million and $0.5 million, which is included in “processing and services costs” for the three months ended September 30, 2017 and 2016, respectively, and $1.4 million and $1.9 million for the nine months ended September 30, 2017 and 2016, 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, 2017 and December 31, 2016, long-lived asset amounts are $6.8 million and $7.0 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, 2017 2016 2017 2016 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 4,621,566 Restructuring charges - 229,121 72,742 354,389 Income from operations Interest expense Interest income 644 428 Other income 111,613 93,016 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, 2017, Customer B and Customer G had revenue concentration of 22% and 14%, respectively, and for the nine months ended September 30, 2017, Customer B and Customer G had revenue concentration of 22% and 18%, respectively. 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. “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, 2017 2016 2017 2016 Multi-currency processing services revenue: APAC: Customer A % % % % The Americas: Customer D Customer E * * * Customer F * * * Customer G * * * Customer I Customer J EMEA: Customer C Customer H Customer K * * (*) Less than 10% revenue concentration.

Stock repurchase program

Stock repurchase program	9 Months Ended
	Sep. 30, 2017
Stock repurchase program
Stock repurchase program	13. Stock repurchases Stock repurchase program As of September 30, 2017, the total amount of common stock repurchased under the Company’s current stock repurchase program was 6.5 million shares for an aggregate price of $17.5 million, and $10.0 million remained available for repurchase under the program. No repurchases were made during the nine months ended September 30, 2017. For additional information on the Company’s stock repurchase program, refer to Note 16 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Restructuring charges

Restructuring charges	9 Months Ended
	Sep. 30, 2017
Restructuring charges
Restructuring charges	14. Restructuring charges For the nine months ended September 30, 2017, the Company incurred total restructuring charges of approximately $0.1 million which represents the cash components of severance and benefits paid during the period. For the three and nine months ended September 30, 2016, the Company incurred total restructuring charges of approximately $0.2 million and $0.4 million, respectively. Included in total restructuring charges for the three and nine months ended September 30, 2016, was approximately $0.2 million and $0.3 million, respectively, which 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 was October 1, 2016. The remaining amount represents the cash components of severance and benefits paid during the periods.

Subsequent event

Subsequent event	9 Months Ended
	Sep. 30, 2017
Subsequent events
Subsequent events	15. Subsequent event On October 26, 2017, the Company, Franklin UK Bidco Limited, a private limited company incorporated under the Laws of England and Wales (“Fintrax Parent”) and a parent company of Fintrax Group (“Fintrax Group”), Fintrax US Acquisition Subsidiary, Inc., a Delaware corporation and a wholly-owned subsidiary of Fintrax Parent (“Acquisition Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions thereof, Fintrax Parent has agreed that Acquisition Sub will commence a cash tender offer (the “Offer”) to acquire all of the issued and outstanding shares of (i) the common stock of the Company at a price per share of $4.50, net to seller in cash, subject to any withholding of taxes required by applicable law, and (ii) the Series A Preferred Stock of the Company, for $13.725 per share, equal to the common stock offer price multiplied by the conversion ratio for the Series A Preferred Stock set forth in the Company’s restated certificate of incorporation rounded to the nearest one-hundredth, which is 3.05, net to the seller in cash, without interest, subject to any withholding of taxes required by applicable law; and subject to the terms and conditions of the Merger Agreement. Pursuant to the Merger Agreement, and upon the terms and subject to the conditions thereof, Fintrax Parent has agreed that Acquisition Sub will commence the Offer to acquire all of the issued and outstanding shares of Common Stock and Series A Preferred Stock. The Merger Agreement provides that, following the consummation of the Offer, Acquisition Sub will merge with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Fintrax Parent. The merger will be governed by Section 251(h) of the General Corporation Law of the State of Delaware, with no stockholder vote required to consummate the merger. The consummation of the Offer will be subject to a number of conditions, including, at least a majority of the shares of the outstanding common stock, on a fully diluted basis, and a majority of the shares of the Series A Preferred Stock, having been validly tendered into and not withdrawn from the Offer, (ii) receipt of certain regulatory approvals, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iii) the accuracy of the representations and warranties and compliance with the covenants contained in the Merger Agreement, subject to qualifications, and (iv) other customary conditions. In addition, the Merger Agreement may be terminated under certain circumstances, including in specified circumstances in connection with an acquisition proposal that our board of directors determines constitutes a “Superior Proposal,” as defined in the Merger Agreement. Upon the termination of the Merger Agreement, under specified circumstances, the Company will be required to pay to Fintrax Parent a termination fee of approximately $7.7 million.

Concentration of credit risk (T

Concentration of credit risk (Tables)	9 Months Ended
	Sep. 30, 2017
Accounts Receivable
Concentration of credit risk
Schedule of concentrations of 10% and greater	As of As of September 30, December 31, 2017 2016 Customer A % % Customer B
Revenue
Concentration of credit risk
Schedule of concentrations of 10% and greater	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Customer A % % % % Customer G * * * Less than 10% revenue concentration.

Net income per share (Tables)

Net income per share (Tables)	9 Months Ended
	Sep. 30, 2017
Net income per share
Schedule of computation of basic and diluted net income per share	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 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 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, 2017 and 2016, the Company excluded 396,500, 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 per share calculation because the effect would have been anti-dilutive	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 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, 2017 and 2016.

Stock-based compensation expe24

Stock-based compensation expense (Tables)	9 Months Ended
	Sep. 30, 2017
Stock incentive plan
Summary of stock-based compensation expense recognized by income statement classification	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Processing and service costs $ $ $ $ Selling, general and administrative expenses Total stock-based compensation expense $ $ $ $
Summary of stock-based compensation expense recognized by type	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options $ $ $ $ Restricted stock awards Total stock-based compensation expense $ $ $ $

Property and equipment (Tables)

Property and equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property and equipment
Schedule of property and equipment, net	Estimated As of As of useful life September 30, December 31, (in years) 2017 2016 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, 2017 2016 2017 2016 Depreciation and amortization expense $ $ $ $

Goodwill and intangible assets

Goodwill and intangible assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and intangible assets
Schedule of changes in carrying amount of goodwill	Goodwill, gross, as of December 31, 2016 $ 276,786 Impact of change in Euro exchange rate 33,950 Goodwill, net, as of September 30, 2017 $ 310,736
Schedule of the gross book value, accumulated amortization and amortization periods of intangible assets	As of September 30, 2017 As of December 31, 2016 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, 2017 2016 2017 2016 Amortization expense $ $ $ $

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Accrued expenses
Schedule of the components of accrued expenses	As of As of September 30, December 31, 2017 2016 Bonus $ $ Deferred revenue(*) Deferred incentive(**) 1,087,591 Other(***) Total accrued expenses $ $ (*) (**) (***)

Segment information (Tables)

Segment information (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 2016 2017 2016 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 4,621,566 Restructuring charges - 229,121 72,742 354,389 Income from operations Interest expense Interest income 644 428 Other income 111,613 93,016 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, 2017 2016 2017 2016 Multi-currency processing services revenue: APAC: Customer A % % % % The Americas: Customer D Customer E * * * Customer F * * * Customer G * * * Customer I Customer J EMEA: Customer C Customer H Customer K * * (*)

Business description and basi29

Business description and basis of presentation (Details)	Sep. 30, 2017item
Business description and basis of presentation
Number of active merchant locations to which the Company provides services	190,000
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
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)			18.00%		22.00%
Accounts Receivable | Credit concentration risk | Customer B
Concentration of credit risk
Concentration risk (as a percent)			12.00%		17.00%
Revenue | Customer concentration risk | Customer A
Concentration of credit risk
Concentration risk (as a percent)	18.00%	16.00%	19.00%	16.00%
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income	$ 3,695,099	$ 2,225,413	$ 7,082,168	$ 5,268,441
Amounts allocated to participating preferred stockholders under the two-class method	(319,921)	(196,868)	(613,173)	(466,065)
Net income applicable to common stockholders (basic and dilutive)	$ 3,375,178	$ 2,028,545	$ 6,468,995	$ 4,802,376
Denominator:
Weighted-average common stock outstanding (basic) (in shares)	49,391,614	49,179,596	49,184,276	49,848,634
Common equivalent shares from options to purchase common stock (in shares)	1,870,155	2,074,627	2,112,743	2,153,615
Weighted-average common stock outstanding (diluted) (in shares)	51,261,769	51,254,223	51,297,019	52,002,249
Basic net income per share applicable to common stockholders ( in dollars per share)	$ 0.07	$ 0.04	$ 0.13	$ 0.10
Diluted net income per share applicable to common stockholders (in dollars per share)	$ 0.07	$ 0.04	$ 0.13	$ 0.09
Total anti-dilutive securities (in shares)	4,729,737	4,688,237	4,747,396	6,098,646
Contingently issued restricted shares
Denominator:
Total anti-dilutive securities (in shares)	396,500	396,500	396,500	396,500
Stock options
Denominator:
Total anti-dilutive securities (in shares)	41,500		28,921	581,665
Restricted stock
Denominator:
Total anti-dilutive securities (in shares)			30,238	23,574
Convertible preferred stock
Denominator:
Total anti-dilutive securities (in shares)	4,688,237	4,688,237	4,688,237	5,493,407

Stock-based compensation expe32

Stock-based compensation expense (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock-based expense
Total stock-based compensation expense	$ 193,355		$ 317,459	$ 767,874	$ 1,498,358
Processing and service costs
Stock-based expense
Total stock-based compensation expense	16,760		35,051	86,340	134,112
Selling general and administrative expenses
Stock-based expense
Total stock-based compensation expense	176,595		282,408	681,534	1,364,246
Stock options
Stock-based expense
Options granted (in shares)		34,000
Fair value of options granted		$ 53,000
Requisite service period		36 months
Total stock-based compensation expense	120,772		217,537	503,995	766,766
Restricted stock
Stock-based expense
Awards granted (in shares)		5,000
Fair value of awards granted		$ 21,000
Requisite service period		36 months
Total stock-based compensation expense	$ 72,583		$ 99,922	$ 263,879	$ 731,592
Restricted stock | Directors
Stock-based expense
Awards granted (in 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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Property and equipment
Total property and equipment	$ 6,444,272		$ 6,444,272		$ 6,444,272	$ 5,930,935
Less: Accumulated depreciation and amortization	(4,791,788)		(4,791,788)		(4,791,788)	(4,256,525)
Property and equipment, net	1,652,484		1,652,484		1,652,484	1,674,410
Depreciation and amortization expense	215,488	$ 328,181	527,526	$ 768,740
Accelerated Depreciation on abandoned assets		$ 200,000		$ 300,000
Equipment
Property and equipment
Total property and equipment	1,070,822		1,070,822		$ 1,070,822	998,722
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	4,057,362		4,057,362		$ 4,057,362	3,637,938
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	258,065		258,065		$ 258,065	256,889
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	$ 1,058,023		$ 1,058,023		$ 1,058,023	$ 1,037,386
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 asset34

Goodwill and intangible assets - Goodwill (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill
Goodwill, gross, at the Beginning of the period	$ 276,786
Impact of change in Euro exchange rate	33,950
Goodwill, net, at the end of the period	$ 310,736

Goodwill and intangible asset35

Goodwill and intangible assets - Intangible assets (Details) - USD ($)	3 Months Ended		9 Months Ended		21 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Intangible assets
Gross book value	$ 3,813,755		$ 3,813,755		$ 3,813,755	$ 3,508,116
Accumulated amortization	(3,208,098)		(3,208,098)		(3,208,098)	(2,680,642)
Net book value	605,657		605,657		605,657	827,474
Amortization expense	21,104	$ 143,692	246,295	$ 431,710
Trademarks and patents
Intangible assets
Gross book value	1,226,007		1,226,007		1,226,007	1,203,097
Accumulated amortization	(620,350)		(620,350)		(620,350)	(557,794)
Net book value	605,657		605,657		$ 605,657	645,303
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	2,587,748		2,587,748		$ 2,587,748	2,305,019
Accumulated amortization	$ (2,587,748)		$ (2,587,748)		$ (2,587,748)	(2,122,848)
Net book value						$ 182,171
Amortization period					5 years

Commitments and contingencies -

Commitments and contingencies - Employment agreements and contingent liabilities and acquiring bank sponsorship agreements (Details) - USD ($) $ in Millions	Sep. 01, 2013	Sep. 30, 2013	Sep. 30, 2017	Dec. 31, 2016
Employment agreements
Commitment to pay severance in event of employment termination without cause			$ 1.3	$ 1.2
Commitment to pay severance in event of employment termination upon change of control			1.6	1.4
Fraud related to certain credit card transactions
Employment agreements
Reserves posted by merchants with sponsor bank			1.1
Reserves posted by entity			0.3
Cash reserves required to be posted by merchant, entity			2.2
Contingent liability			0	$ 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 ($)	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Feb. 02, 2017	Dec. 31, 2016	Jan. 28, 2016
Debt Instrument [Line Items]
Minimum availability requirement		$ 5,000,000
Credit Facility repaid		$ 9,916,000	$ 4,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 30,000,000		$ 20,000,000
Credit Facility borrowed					$ 9,900,000
Credit Facility repaid	$ 9,900,000
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, 2017	Dec. 31, 2016	Apr. 11, 2016
Convertible preferred stock
Shares designated (and issued)	1,535,398	1,535,398
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, 2017	Dec. 31, 2016
Bonus	$ 221,277	$ 611,228
Deferred revenue	685,126	881,715
Deferred incentive	397,809	1,087,591
Other	2,056,663	2,773,201
Total accrued expenses	$ 3,360,875	5,353,735
Recognition period of deferred revenue	12 months
Third party referral commissions	$ 200,000	$ 600,000
Maximum percentage of total current liabilities	10.00%	10.00%
Other long-term liabilities
Non-current portion of deferred revenue	$ 200,000	$ 700,000
Non-current portion of deferred incentive		$ 100,000

Segment information - Informati

Segment information - Information about revenue, profit and assets (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment information
Number of reportable segments | item			2
Cost of sales included in processing and services costs	$ 3,031,105	$ 2,878,088	$ 9,428,424	$ 9,902,879
Long-lived assets	6,800,000		$ 6,800,000		$ 7,000,000
Number of geographical regions in which the entity conducts its business | item			3
Net Revenue:
Net revenue	13,805,324	13,621,239	$ 39,050,592	40,409,128
Gross Profit:
Total gross profit	8,410,191	7,961,862	23,057,086	22,299,047
Income from operations before provision for income taxes:
Total gross profit	8,410,191	7,961,862	23,057,086	22,299,047
Selling, general and administrative expenses	4,621,566	5,222,560	14,590,609	15,908,166
Restructuring charges		229,121	72,742	354,389
Income from operations	3,788,625	2,510,181	8,393,735	6,036,492
Interest expense	(12,863)	(88,669)	(222,008)	(186,366)
Interest income	644	428	1,752	1,250
Other income	111,613	93,016	111,613	93,016
Total other income (expense), net	99,394	4,775	(108,643)	(92,100)
Income from operations before provision for income taxes	3,888,019	2,514,956	8,285,092	5,944,392
Operating segments
Gross Profit:
Total gross profit	11,027,474	10,306,583	31,081,197	30,305,001
Income from operations before provision for income taxes:
Total gross profit	11,027,474	10,306,583	31,081,197	30,305,001
Corporate allocated cost of sales
Gross Profit:
Total gross profit	2,617,283	2,344,721	8,024,111	8,005,954
Income from operations before provision for income taxes:
Total gross profit	2,617,283	2,344,721	8,024,111	8,005,954
Multi-currency processing services
Segment information
Cost of sales included in processing and services costs	400,000	500,000	1,400,000	1,900,000
Net Revenue:
Net revenue	9,533,253	8,175,476	26,477,123	24,768,314
Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	9,119,431	7,642,109	25,072,810	22,871,389
Income from operations before provision for income taxes:
Total gross profit	9,119,431	7,642,109	25,072,810	22,871,389
Payment processing services
Net Revenue:
Net revenue	4,272,071	5,445,763	12,573,469	15,640,814
Payment processing services | Operating segments
Gross Profit:
Total gross profit	1,908,043	2,664,474	6,008,387	7,433,612
Income from operations before provision for income taxes:
Total gross profit	1,908,043	2,664,474	6,008,387	7,433,612
APAC
Net Revenue:
Net revenue	4,320,879	3,962,539	12,558,229	11,541,521
APAC | Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	4,303,113	3,942,457	12,494,444	11,467,607
Income from operations before provision for income taxes:
Total gross profit	4,303,113	3,942,457	12,494,444	11,467,607
The Americas
Net Revenue:
Net revenue	4,099,625	2,634,887	10,295,406	7,264,448
The Americas | Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	3,904,298	2,470,294	9,703,121	6,766,889
Income from operations before provision for income taxes:
Total gross profit	3,904,298	2,470,294	9,703,121	6,766,889
EMEA
Net Revenue:
Net revenue	1,112,749	1,578,050	3,623,488	5,962,345
EMEA | Multi-currency processing services | Operating segments
Gross Profit:
Total gross profit	912,020	1,229,358	2,875,245	4,636,893
Income from operations before provision for income taxes:
Total gross profit	$ 912,020	$ 1,229,358	$ 2,875,245	$ 4,636,893

Segment information - Concentra

Segment information - Concentration of revenue by customer by geographical region (Details) - Revenue	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Geographical concentration risk | Multi-currency processing services | APAC | Customer A
Revenue concentration
Concentration risk (as a percent)	59.00%	56.00%	58.00%	56.00%
Geographical concentration risk | Multi-currency processing services | The Americas | Customer D
Revenue concentration
Concentration risk (as a percent)	12.00%	22.00%	16.00%	22.00%
Geographical concentration risk | Multi-currency processing services | The Americas | Customer E
Revenue concentration
Concentration risk (as a percent)	10.00%
Geographical concentration risk | Multi-currency processing services | The Americas | Customer F
Revenue concentration
Concentration risk (as a percent)	10.00%
Geographical concentration risk | Multi-currency processing services | The Americas | Customer G
Revenue concentration
Concentration risk (as a percent)			11.00%
Geographical concentration risk | Multi-currency processing services | The Americas | Customer I
Revenue concentration
Concentration risk (as a percent)	11.00%	15.00%	12.00%	12.00%
Geographical concentration risk | Multi-currency processing services | The Americas | Customer J
Revenue concentration
Concentration risk (as a percent)	11.00%	15.00%	10.00%	11.00%
Geographical concentration risk | Multi-currency processing services | EMEA | Customer K
Revenue concentration
Concentration risk (as a percent)	28.00%		15.00%
Geographical concentration risk | Multi-currency processing services | EMEA | Customer C
Revenue concentration
Concentration risk (as a percent)	36.00%	58.00%	44.00%	61.00%
Geographical concentration risk | Multi-currency processing services | EMEA | Customer H
Revenue concentration
Concentration risk (as a percent)	34.00%	37.00%	40.00%	37.00%
Customer concentration risk | Customer A
Revenue concentration
Concentration risk (as a percent)	18.00%	16.00%	19.00%	16.00%
Customer concentration risk | Customer G
Revenue concentration
Concentration risk (as a percent)		14.00%		12.00%
Customer concentration risk | Multi-currency processing services | Customer G
Revenue concentration
Concentration risk (as a percent)	14.00%	35.00%	18.00%	30.00%
Customer concentration risk | Multi-currency processing services | Customer B
Revenue concentration
Concentration risk (as a percent)	22.00%	14.00%	22.00%	15.00%

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) shares in Millions, $ in Millions	9 Months Ended	45 Months Ended
	Sep. 30, 2017USD ($)shares	Sep. 30, 2017USD ($)shares
Stock repurchase program
Common stock repurchased (in shares) | shares	0	6.5
Stock repurchased, aggregate price		$ 17.5
Remaining shares available for purchase, value	$ 10	$ 10

Restructuring charges (Details)

Restructuring charges (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring charges
Restructuring charges	$ 229,121	$ 72,742	$ 354,389
Accelerated Depreciation on abandoned assets	$ 200,000		$ 300,000

Subsequent event (Details)

Subsequent event (Details) - USD ($)	3 Months Ended	9 Months Ended		45 Months Ended
	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Oct. 26, 2017	Feb. 02, 2017	Dec. 31, 2016	Jan. 28, 2016
Subsequent events
Common stock repurchased (in shares)		0		6,500,000
Credit Facility repaid		$ 9,916,000	$ 4,000,000
Repayments of Lines of Credit		$ 9,916,000	$ 4,000,000
Series A Preferred Stock price per share		$ 0.01		$ 0.01			$ 0.01
Revolving Credit Facility
Subsequent events
Credit Facility borrowed							$ 9,900,000
Credit Facility repaid	$ 9,900,000
Repayments of Lines of Credit	$ 9,900,000
Maximum borrowing capacity						$ 30,000,000		$ 20,000,000
Subsequent event
Subsequent events
Termination fee					$ 7,700,000
Conversion ratio of common stock per share of Series A Preferred Stock					3.05
Common stock offer price					$ 4.50
Series A Preferred Stock price per share					$ 13.725