PaySign (PAYS) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 28, 2019
Document And Entity Information
Entity Registrant Name	Paysign, Inc.
Entity Central Index Key	0001496443
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		47,923,762
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Entity Emerging Growth	true
Entity Small Business	true
Entity Ex Transition Period	false
Entity File Number	000-54123
State of Incorporation	NV
Interactive data current?	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash	$ 7,988,803	$ 5,615,073
Restricted Cash	33,230,890	26,050,668
Accounts Receivable	969,447	337,303
Prepaid Expenses and other assets	1,967,858	1,175,241
Total current assets	44,156,998	33,178,285
Fixed assets, net	1,004,425	883,490
Intangible assets, net	2,444,195	2,115,933
Total assets	47,605,618	36,177,708
Current liabilities
Accounts payable and accrued liabilities	1,463,686	1,327,497
Customer card funding	29,565,027	25,960,974
Total current liabilities	31,028,713	27,288,471
Total liabilities	31,028,713	27,288,471
Stockholders' equity
Preferred stock: $0.001 par value; 25,000,000 shares authorized; none issued and outstanding at September 30, 2019 and December 31, 2018	0	0
Common stock: $0.001 par value; 150,000,000 shares authorized, 48,095,192 and 46,440,765 issued at September 30, 2019 and December 31, 2018, respectively	48,095	46,441
Additional paid-in capital	10,737,190	8,620,144
Treasury stock at cost, 303,450 shares	(150,000)	(150,000)
Retained earnings	6,150,122	579,582
Total Paysign, Inc.'s stockholders' equity	16,785,407	9,096,167
Noncontrolling interest	(208,502)	(206,930)
Total stockholders' equity	16,576,905	8,889,237
Total liabilities and stockholders' equity	$ 47,605,618	$ 36,177,708

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ .001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	48,095,192	46,440,765
Common stock, shares outstanding	48,095,192	46,440,765
Treasury stock shares	303,450	303,450
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenues	$ 9,008,117	$ 6,421,396	$ 24,901,678	$ 16,558,438
Cost of revenues (excluding depreciation and amortization)	3,641,595	3,376,753	10,721,769	8,650,839
Gross profit	5,366,522	3,044,643	14,179,909	7,907,599
Operating expenses
Depreciation and amortization	318,508	284,124	1,047,779	780,203
Selling, general and administrative	2,765,961	1,996,957	8,483,882	5,244,278
Total operating expenses	3,084,469	2,281,081	9,531,661	6,024,481
Income from operations	2,282,053	763,562	4,648,248	1,883,118
Other income (expense)
Other (expense)	0	0	0	(31,125)
Interest income	113,667	36,683	364,652	90,298
Total other income, net	113,667	36,683	364,652	59,173
Income before provision for income taxes and noncontrolling interest	2,395,720	800,245	5,012,900	1,942,291
Income tax (benefit)	(563,854)	0	(556,068)	0
Net income before noncontrolling interest	2,959,574	800,245	5,568,968	1,942,291
Net loss attributable to the noncontrolling interest	504	617	1,572	3,134
Net income attributable to Paysign, Inc.	$ 2,960,078	$ 800,862	$ 5,570,540	$ 1,945,425
Net income per common share - basic	$ 0.06	$ 0.02	$ 0.12	$ 0.04
Net income per common share - fully diluted	$ 0.05	$ 0.02	$ 0.10	$ 0.04
Weighted average common shares outstanding - basic	47,371,083	45,460,902	47,215,625	45,373,595
Weighted average common shares outstanding - fully diluted	54,291,368	52,215,970	54,588,470	51,985,074

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Noncontrolling Interest	Total
Beginning balance, shares at Dec. 31, 2017	43,670,765
Beginning balance, value at Dec. 31, 2017	$ 43,671	$ 7,155,970	$ (150,000)	$ (2,008,472)	$ (200,117)	$ 4,841,052
Stock-based compensation		137,401				137,401
Net income (loss)				412,507	(1,895)	410,612
Ending balance, shares at Mar. 31, 2018	43,670,765
Ending balance, value at Mar. 31, 2018	$ 43,671	7,293,371	(150,000)	(1,595,965)	(202,012)	5,389,065
Beginning balance, shares at Dec. 31, 2017	43,670,765
Beginning balance, value at Dec. 31, 2017	$ 43,671	7,155,970	(150,000)	(2,008,472)	(200,117)	4,841,052
Net income (loss)						1,942,291
Ending balance, shares at Sep. 30, 2018	44,100,765
Ending balance, value at Sep. 30, 2018	$ 44,101	8,011,043	(150,000)	(63,047)	(203,251)	7,638,846
Beginning balance, shares at Mar. 31, 2018	43,670,765
Beginning balance, value at Mar. 31, 2018	$ 43,671	7,293,371	(150,000)	(1,595,965)	(202,012)	5,389,065
Stock-based compensation		212,181				212,181
Net income (loss)				732,056	(622)	731,434
Ending balance, shares at Jun. 30, 2018	43,670,765
Ending balance, value at Jun. 30, 2018	$ 43,671	7,505,552	(150,000)	(863,909)	(202,634)	6,332,680
Stock options and warrants exercised, shares	200,000
Stock options and warrants exercised, value	$ 200	99,800				100,000
Issuance of stock for services, shares	230,000
Issuance of stock for services, value	$ 230	59,959				60,189
Stock-based compensation		345,732				345,732
Net income (loss)				800,862	(617)	800,245
Ending balance, shares at Sep. 30, 2018	44,100,765
Ending balance, value at Sep. 30, 2018	$ 44,101	8,011,043	(150,000)	(63,047)	(203,251)	7,638,846
Beginning balance, shares at Dec. 31, 2018	46,440,765
Beginning balance, value at Dec. 31, 2018	$ 46,441	8,620,144	(150,000)	579,582	(206,930)	8,889,237
Issuance of stock for previously vested stock based compensation, shares	291,147
Issuance of stock for previously vested stock based compensation, value	$ 291	(291)
Stock-based compensation		646,710				646,710
Net income (loss)				871,671	(564)	871,107
Ending balance, shares at Mar. 31, 2019	46,731,912
Ending balance, value at Mar. 31, 2019	$ 46,732	9,266,563	(150,000)	1,451,253	(207,494)	10,407,054
Beginning balance, shares at Dec. 31, 2018	46,440,765
Beginning balance, value at Dec. 31, 2018	$ 46,441	8,620,144	(150,000)	579,582	(206,930)	8,889,237
Net income (loss)						5,568,968
Ending balance, shares at Sep. 30, 2019	48,095,192
Ending balance, value at Sep. 30, 2019	$ 48,095	10,737,190	(150,000)	6,150,122	(208,502)	16,576,905
Beginning balance, shares at Mar. 31, 2019	46,731,912
Beginning balance, value at Mar. 31, 2019	$ 46,732	9,266,563	(150,000)	1,451,253	(207,494)	10,407,054
Issuance of stock for previously vested stock based compensation, shares	825,000
Issuance of stock for previously vested stock based compensation, value	$ 825	(825)
Stock-based compensation		567,910				567,910
Net income (loss)				1,738,791	(504)	1,738,287
Ending balance, shares at Jun. 30, 2019	47,556,912
Ending balance, value at Jun. 30, 2019	$ 47,557	9,833,648	(150,000)	3,190,044	(207,998)	12,713,251
Stock options and warrants exercised, shares	113,280
Stock options and warrants exercised, value	$ 113	252,700				252,813
Issuance of stock for previously vested stock based compensation, shares	425,000
Issuance of stock for previously vested stock based compensation, value	$ 425	(425)
Stock-based compensation		651,267				651,267
Net income (loss)				2,960,078	(504)	2,959,574
Ending balance, shares at Sep. 30, 2019	48,095,192
Ending balance, value at Sep. 30, 2019	$ 48,095	$ 10,737,190	$ (150,000)	$ 6,150,122	$ (208,502)	$ 16,576,905

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income attributable to Paysign, Inc.	$ 5,570,540	$ 1,945,425
Adjustments to reconcile net income attributable to Paysign, Inc. to net cash provided by operating activities:
Change in noncontrolling interest	(1,572)	(3,134)
Depreciation and amortization	1,047,779	780,203
Stock based compensation	1,865,887	755,503
Changes in operating assets and liabilities:
Change in accounts receivable	(632,144)	(225,436)
Change in prepaid expenses and other current assets	(792,617)	(529,618)
Change in accounts payable and accrued liabilities	136,189	(92,645)
Change in customer card funding	3,604,053	6,019,925
Net cash provided by operating activities	10,798,115	8,650,223
Cash flows from investing activities:
Purchase of fixed assets	(351,345)	(218,136)
Increase in intangible assets	(1,145,631)	(960,905)
Net cash used in investing activities	(1,496,976)	(1,179,041)
Cash flows from financing activities:
Proceeds from exercise of options	252,813	0
Proceeds from exercise of warrants	0	100,000
Net cash provided by financing activities	252,813	100,000
Net change in cash and restricted cash	9,553,952	7,571,182
Cash and restricted cash, beginning of period	31,665,741	17,164,757
Cash and restricted cash, end of period	41,219,693	24,735,939
Supplemental cash flow information:
Interest paid	0	0
Income taxes paid	$ 0	$ 0

CASH AND RESTRICTED CASH RECONC

CASH AND RESTRICTED CASH RECONCILIATION (Unaudited) - USD ($)	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Cash And Restricted Cash Reconciliation
Cash	$ 7,988,803	$ 5,615,073	$ 4,299,570
Restricted cash	33,230,890	26,050,668	20,436,369
Total cash and restricted cash	$ 41,219,693	$ 31,665,741	$ 24,735,939	$ 17,164,757

1. BASIS OF PRESENTATION AND SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES The foregoing unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the disclosures required by GAAP for complete financial statements. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto included on Form 10-K for the year ended December 31, 2018. In the opinion of management, the unaudited interim condensed financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” or “we”, formerly known as 3PEA International, Inc.) is a vertically integrated provider of innovative prepaid card products and processing services for corporate, consumer and government applications. Our payment solutions are utilized by our corporate customers as a means to increase customer loyalty, increase patient adherence rate, reduce administration costs and streamline operations. Public sector organizations can utilize our payment solutions to disburse public benefits or for internal payments. The Company markets prepaid card solutions under our Paysign ® The Paysign brand offers prepaid card based solutions or “card products” for corporate incentive rewards and corporate expense, per diem and travel payments, healthcare reimbursement payments, pharmaceutical co-pay assistance, donor compensation and clinical trials. We plan to expand our product offering to include payroll cards, general purpose re-loadable cards, and others. Our cards are offered to end users through our relationships with bank issuers. The Paysign platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform allows us to significantly expand our operational capabilities by facilitating entry into new markets within the payments space through its flexibility and ease of customization. The Paysign platform delivers cost benefits and revenue building opportunities to our partners. We manage all aspects of the debit card lifecycle, from managing the card design and approval processes with partners and networks, to production, packaging, distribution, and personalization. We oversee inventory and security controls, renewals, lost and stolen card management and replacement. We deploy a fully staffed, in-house customer service department which utilizes bilingual customer service agents, Interactive Voice Response (IVR), and two-way short message service (SMS) messaging and text alerts. On March 4, 2019, our board of directors and stockholders holding a majority of our outstanding common stock agreed to amend our articles of incorporation to change our name from 3PEA International, Inc. to Paysign, Inc. As a result, we amended our articles of incorporation on April 23, 2019 for such name change. Additionally, we changed our trading symbol on the Nasdaq Capital Market to “PAYS”. Principles of consolidation Use of estimates Restricted cash Intangible assets Internally Developed Software Costs - For computer software developed or obtained for internal use, costs that are incurred in the preliminary project and post implementation stages of software development are expensed as incurred. Costs incurred during the application and development stage are capitalized. Capitalized costs are amortized using the straight-line method over a three to five year estimated useful life, beginning in the period in which the software is available for use. For intangible assets, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Earnings per share Revenue and expense recognition (Adoption of ASC 606, Revenue from Contracts with Customers ) Revenue from Contracts with Customers (ASC Topic 606), The Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customers; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligations. The Company generates revenue through fees generated from cardholder transactions, interchange, expiring card balances, and card program management fees. Revenue from cardholder transactions, interchange and card program management fees is recorded when the performance obligation is fulfilled. The Company records all revenue on a gross basis since it is the primary obligor and establishes the price in the contract arrangement with its customers. The Company is currently under no obligation for refunding any fees or has any obligations for disputed claim settlements. Given the nature of the Company’s services and contracts, it has no contract assets. Stock-Based Compensation Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, Prior to the adoption of ASU 2018-07, stock based compensation for non-employees was accounted for using the Equity-Based Payments to Non-Employee Topic of the FASB ASC , Stock based compensation for employees is accounted for using the Stock Based Compensation Topic of the FASB ASC. We use the fair value method for equity instruments granted to employees and will use the Black Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the requisite service periods, which are generally the vesting periods. New accounting pronouncements Leases.

2. FIXED ASSETS

2. FIXED ASSETS	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
FIXED ASSETS	2. FIXED ASSETS Fixed assets consist of the following: September 30, December 31, Equipment $ 1,912,151 $ 1,586,954 Software 172,749 165,274 Furniture and fixtures 149,684 140,209 Website costs 44,475 25,467 Leasehold improvements 52,894 52,894 2,331,953 1,970,798 Less: accumulated depreciation and amortization 1,327,528 1,087,308 Fixed assets, net $ 1,004,425 $ 883,490

3. INTANGIBLE ASSETS

3. INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	3. INTANGIBLE ASSETS Intangible assets consist of the following: September 30, December 31, Trademarks $ 36,282 $ 36,073 Platform 5,157,380 4,105,780 Kiosk 64,802 64,802 Licenses 517,697 433,685 5,776,161 4,640,340 Less: accumulated amortization 3,331,966 2,524,407 Intangible assets, net $ 2,444,195 $ 2,115,933 Intangible assets are amortized over their estimated useful lives ranging from 3 to 5 years.

4. COMMON STOCK

4. COMMON STOCK	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
COMMON STOCK	4. COMMON STOCK At September 30, 2019, the Company's authorized capital stock was 150,000,000 shares of common stock, par value $0.001 per share, and 25,000,000 shares of preferred stock, par value $0.001 per share. As of that date, the Company had 48,095,192 shares of common stock issued, and no shares of preferred stock. 2019 Transactions: During the third quarter of 2019, the Company issued 113,280 shares of common stock related to the exercise of vested stock options and received proceeds of $252,813. During the third quarter of 2019, the Company issued a total of 425,000 shares of common stock to certain individuals for stock awards previously granted, earned and vested. 2018 Transactions: · In August 2018, the Company issued 100,000 shares of common stock for stock-based compensation to a consultant for services rendered. · In August 2018, the Company issued 130,000 shares of common stock for stock-based compensation to a consultant for services to be rendered. · In September 2018, the Company issued 200,000 shares of common stock related to an exercise of a warrant with an exercise price of $0.50 per share for total cash proceed of $100,000. Stock and Warrant Grants: In July and August 2019, the Company granted three employees a total of 45,000 shares of common stock. The shares were valued for a total of $621,450 based on the average closing stock price per share of $13.81 at the date of grants. The 45,000 shares have an annual vesting period of five years with the first vesting period occurring on July 31, 2020 with the first vesting start date for the grants of August 1, 2019. In May and June 2019, the Company granted three employees a total of 145,000 shares of common stock. The shares were valued for a total of $1,426,450 based on the average closing stock price per share of $9.84 at the date of grants. The 145,000 shares have an annual vesting period of five years with the first vesting period occurring on June 30, 2020 with vesting start date for each grant of July 1, 2019. In April 2019, the Company granted an employee a total of 50,000 shares of common stock. The shares were valued at $377,000 based on the closing stock price per share of $7.54 at the date of grant. The 50,000 shares have an annual vesting period of five years with the first vesting period occurring on April 30, 2020. From 2016 to 2018, excluding employee terminations, the Company granted a total of 8,690,000 shares of common stock and 2,688,000 stock options. The shares were valued at $6,419,849 or an average price per share of $.74. The stock options were valued at $4,172,996 an average price per share of $1.55, collectively vesting over a three to five year period. Stock-based compensation expense related to Company grants for the three and nine months ended September 30, 2019 was $651,267 and $1,865,887, respectively. Stock-based compensation expense for the three and nine months end September 30, 2018 was $405,921 and $755,503, respectively.

5. BASIC AND FULLY DILUTED NET

5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE	5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and fully diluted net income per common share for the three months ended September 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 2,960,078 $ 800,862 Denominator: Weighted average common shares: Denominator for basic calculation 47,371,083 45,460,902 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,060,285 1,125,068 Unvested restricted stock grants 4,860,000 5,630,000 Denominator for fully diluted calculation 54,291,368 52,215,970 Net income per common share: Basic $ 0.06 $ 0.02 Fully diluted $ 0.05 $ 0.02 The following table sets forth the computation of basic and fully diluted net income per common share for the nine months ended September 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 5,570,540 $ 1,945,425 Denominator: Weighted average common shares: Denominator for basic calculation 47,215,625 45,373,595 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,125,263 732,578 Unvested restricted stock grants 5,247,582 5,878,901 Denominator for fully diluted calculation 54,588,470 51,985,074 Net income per common share: Basic $ 0.12 $ 0.04 Fully diluted $ 0.10 $ 0.04

6. SUBSEQUENT EVENTS

6. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	6. SUBSEQUENT EVENTS The Company has completed an evaluation of all subsequent events through the issuance date of these financial statements and concluded that no other subsequent events occurred that required recognition to the financial statements or disclosures in the Notes to Consolidated Financial Statements or Cash Flows.

1. BASIS OF PRESENTATION AND _2

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Principles of consolidation	Principles of consolidation
Use of estimates	Use of estimates
Restricted cash	Restricted cash
Intangible assets	Intangible assets Internally Developed Software Costs - For computer software developed or obtained for internal use, costs that are incurred in the preliminary project and post implementation stages of software development are expensed as incurred. Costs incurred during the application and development stage are capitalized. Capitalized costs are amortized using the straight-line method over a three to five year estimated useful life, beginning in the period in which the software is available for use. For intangible assets, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives.
Earnings per share	Earnings per share
Revenue and expense recognition	Revenue and expense recognition (Adoption of ASC 606, Revenue from Contracts with Customers ) Revenue from Contracts with Customers (ASC Topic 606), The Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customers; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligations. The Company generates revenue through fees generated from cardholder transactions, interchange, expiring card balances, and card program management fees. Revenue from cardholder transactions, interchange and card program management fees is recorded when the performance obligation is fulfilled. The Company records all revenue on a gross basis since it is the primary obligor and establishes the price in the contract arrangement with its customers. The Company is currently under no obligation for refunding any fees or has any obligations for disputed claim settlements. Given the nature of the Company’s services and contracts, it has no contract assets.
Stock-based compensation	Stock-Based Compensation Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, Prior to the adoption of ASU 2018-07, stock based compensation for non-employees was accounted for using the Equity-Based Payments to Non-Employee Topic of the FASB ASC , Stock based compensation for employees is accounted for using the Stock Based Compensation Topic of the FASB ASC. We use the fair value method for equity instruments granted to employees and will use the Black Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the requisite service periods, which are generally the vesting periods.
New accounting pronouncements	New accounting pronouncements Leases.

2. FIXED ASSETS (Tables)

2. FIXED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Fixed assets	September 30, December 31, Equipment $ 1,912,151 $ 1,586,954 Software 172,749 165,274 Furniture and fixtures 149,684 140,209 Website costs 44,475 25,467 Leasehold improvements 52,894 52,894 2,331,953 1,970,798 Less: accumulated depreciation and amortization 1,327,528 1,087,308 Fixed assets, net $ 1,004,425 $ 883,490

3. INTANGIBLE ASSETS (Tables)

3. INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2019
LIABILITIES AND STOCKHOLDERS' DEFICIT
Intangible Assets	September 30, December 31, Trademarks $ 36,282 $ 36,073 Platform 5,157,380 4,105,780 Kiosk 64,802 64,802 Licenses 517,697 433,685 5,776,161 4,640,340 Less: accumulated amortization 3,331,966 2,524,407 Intangible assets, net $ 2,444,195 $ 2,115,933

5. BASIC AND FULLY DILUTED NE_2

5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Computation of earnings per share	The following table sets forth the computation of basic and fully diluted net income per common share for the three months ended September 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 2,960,078 $ 800,862 Denominator: Weighted average common shares: Denominator for basic calculation 47,371,083 45,460,902 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,060,285 1,125,068 Unvested restricted stock grants 4,860,000 5,630,000 Denominator for fully diluted calculation 54,291,368 52,215,970 Net income per common share: Basic $ 0.06 $ 0.02 Fully diluted $ 0.05 $ 0.02 The following table sets forth the computation of basic and fully diluted net income per common share for the nine months ended September 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 5,570,540 $ 1,945,425 Denominator: Weighted average common shares: Denominator for basic calculation 47,215,625 45,373,595 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,125,263 732,578 Unvested restricted stock grants 5,247,582 5,878,901 Denominator for fully diluted calculation 54,588,470 51,985,074 Net income per common share: Basic $ 0.12 $ 0.04 Fully diluted $ 0.10 $ 0.04

1. BASIS OF PRESENTATION AND _3

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details Narrative)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Former name	3Pea International, Inc.
Entity former name change date	Mar. 4, 2019

2. FIXED ASSETS (Details)

2. FIXED ASSETS (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fixed Assets Gross	$ 2,331,953	$ 1,970,798
Less: accumulated depreciation	1,327,528	1,087,308
Fixed assets, net	1,004,425	883,490
Equipment [Member]
Fixed Assets Gross	1,912,151	1,586,954
Software [Member]
Fixed Assets Gross	172,749	165,274
Furniture and Fixtures [Member]
Fixed Assets Gross	149,684	140,209
Website Costs [Member]
Fixed Assets Gross	44,475	25,467
Leasehold Improvements [Member]
Fixed Assets Gross	$ 52,894	$ 52,894

3. INTANGIBLE ASSETS (Details)

3. INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Intangible assets gross	$ 5,776,161	$ 4,640,340
Less: accumulated amortization	3,331,966	2,524,407
Intangible assets, net	2,444,195	2,115,933
Patents and Trademarks [Member]
Intangible assets gross	36,282	36,073
Platform [Member]
Intangible assets gross	5,157,380	4,105,780
Kiosk [Member]
Intangible assets gross	64,802	64,802
Licenses [Member]
Intangible assets gross	$ 517,697	$ 433,685

3. INTANGIBLE ASSETS (Details N

3. INTANGIBLE ASSETS (Details Narrative)	9 Months Ended
	Sep. 30, 2019
Minimum [Member]
Intangible assets useful lives	3 years
Maximum [Member]
Intangible assets useful lives	5 years

4. COMMON STOCK (Details Narrat

4. COMMON STOCK (Details Narrative) - USD ($)	3 Months Ended		8 Months Ended	9 Months Ended		36 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Aug. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Common stock, shares authorized	150,000,000			150,000,000		150,000,000
Common stock, par value	$ .001			$ .001		$ 0.001
Common stock, shares outstanding	48,095,192			48,095,192		46,440,765
Preferred stock, shares authorized	25,000,000			25,000,000		25,000,000
Preferred stock, par value	$ 0.001			$ 0.001		$ 0.001
Preferred stock, shares outstanding	0			0		0
Stock issued for restricted stock awards previously granted, earned and vested, and for the exercise of vested stock options, shares	538,280			1,654,427
Stock issued for exercise of options, shares	113,280
Proceeds from exercise of options	$ 252,813			$ 252,813	$ 0
Stock issued for stock awards previously granted, earned and vested	425,000
Proceeds from warrants exercised				0	100,000
Stock based compensation expense	$ 651,267	$ 405,921		$ 1,865,887	$ 755,503
Common Stock [Member]
Restricted stock granted, shares						8,690,000
Restricted stock granted, value						$ 6,419,849
Options [Member]
Options granted						2,688,000
Options granted, value						$ 4,172,996
Exercises of Warrants [Member]
Stock issued for exercise of warrant					200,000
Proceeds from warrants exercised					$ 100,000
Consultant [Member]
Stock issued for compensation, shares			100,000
Consultant [Member] | Services To Be Rendered [Member]
Stock issued for compensation, shares			130,000
Three Employees [Member] | August 1, 2019 [Member]
Restricted stock granted, shares				45,000
Restricted stock granted, value				$ 621,450
Vesting period				5 years
Three Employees [Member] | July 1, 2019 [Member]
Restricted stock granted, shares				145,000
Restricted stock granted, value				$ 1,426,450
Vesting period				5 years
An Employee [Member] | April 30, 2020 [Member]
Restricted stock granted, shares				50,000
Restricted stock granted, value				$ 377,000
Vesting period				5 years

5. BASIC AND FULLY DILUTED NE_3

5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income attributable to Paysign, Inc.	$ 2,960,078	$ 800,862	$ 5,570,540	$ 1,945,425
Denominator:
Denominator for basic calculation	47,371,083	45,460,902	47,215,625	45,373,595
Weighted average effects of potentially diluted common stock:
Stock options (calculated under treasury method)	2,060,285	1,125,068	2,125,263	732,578
Unvested restricted stock grants	4,860,000	5,630,000	5,247,582	5,878,901
Denominator for fully diluted calculation	54,291,368	52,215,970	54,588,470	51,985,074
Net income per common share:
Basic	$ 0.06	$ 0.02	$ 0.12	$ 0.04
Fully diluted	$ 0.05	$ 0.02	$ 0.10	$ 0.04