Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Paysign, Inc. | |
Entity Central Index Key | 0001496443 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
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 | 49,163,707 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
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 | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 9,424,385 | $ 9,663,746 |
Restricted Cash | 45,424,829 | 35,908,559 |
Accounts Receivable | 911,597 | 891,936 |
Prepaid expenses and other assets | 1,380,683 | 1,413,208 |
Total current assets | 57,141,494 | 47,877,449 |
Fixed assets, net | 1,798,751 | 937,185 |
Intangible assets, net | 3,948,413 | 3,816,232 |
Deferred tax asset | 993,382 | 917,480 |
Total assets | 63,882,040 | 53,548,346 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,999,046 | 1,523,604 |
Customer card funding | 40,292,331 | 32,723,227 |
Total current liabilities | 42,291,377 | 34,246,831 |
Total liabilities | 42,291,377 | 34,246,831 |
Stockholders' equity | ||
Preferred stock: $0.001 par value; 25,000,000 shares authorized; none issued and outstanding at March 31, 2020 and December 31, 2019 | 0 | 0 |
Common stock: $0.001 par value; 150,000,000 shares authorized, 49,016,270 and 48,577,712 issued at March 31, 2020 and December 31, 2019, respectively | 49,016 | 48,578 |
Additional paid-in capital | 12,062,197 | 11,577,539 |
Treasury stock at cost, 303,450 shares | (150,000) | (150,000) |
Retained earnings | 9,629,450 | 8,088,485 |
Total Paysign, Inc.'s stockholders' equity | 21,590,663 | 19,564,602 |
Noncontrolling interest | 0 | (263,087) |
Total stockholders' equity | 21,590,663 | 19,301,515 |
Total liabilities and stockholders' equity | $ 63,882,040 | $ 53,548,346 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ .001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 49,016,270 | 48,577,712 |
Common stock, shares outstanding | 49,016,270 | 48,577,712 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 10,576,473 | $ 7,257,290 |
Cost of revenues | 4,855,520 | 3,482,136 |
Gross profit | 5,720,953 | 3,775,154 |
Operating expenses | ||
Selling, general and administrative | 3,827,324 | 2,704,949 |
Depreciation and amortization | 502,376 | 333,761 |
Total operating expenses | 4,329,700 | 3,038,710 |
Income from operations | 1,391,253 | 736,444 |
Other income (expense) | ||
Interest income | 62,161 | 119,173 |
Total other income, net | 62,161 | 119,173 |
Income before income tax benefit and noncontrolling interest | 1,453,414 | 855,617 |
Income tax benefit | (87,551) | (15,490) |
Net income before noncontrolling interest | 1,540,965 | 871,107 |
Net loss attributable to the noncontrolling interest | 0 | 564 |
Net income attributable to Paysign, Inc. | $ 1,540,965 | $ 871,671 |
Net income per common share - basic | $ 0.03 | $ 0.02 |
Net income per common share - fully diluted | $ 0.03 | $ 0.02 |
Weighted average common shares outstanding - basic | 48,713,163 | 49,961,079 |
Weighted average common shares outstanding - fully diluted | 54,688,066 | 54,508,835 |
Plasma Industry [Member] | ||
Revenues | $ 7,343,410 | $ 5,884,577 |
Pharma industry [Member] | ||
Revenues | 3,020,377 | 1,372,713 |
Other [Member] | ||
Revenues | $ 212,686 | $ 0 |
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, 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, 2019 | 48,577,712 | |||||
Beginning balance, value at Dec. 31, 2019 | $ 48,578 | 11,577,539 | (150,000) | 8,088,485 | (263,087) | 19,301,515 |
Issuance of stock for previously vested stock-based compensation, shares | 428,558 | |||||
Issuance of stock for previously vested stock-based compensation, value | $ 428 | (428) | ||||
Stock-based compensation | 724,183 | 724,183 | ||||
Exercise of stock options, shares | 10,000 | |||||
Exercise of stock options, value | $ 10 | 23,990 | 24,000 | |||
Dissolution of Paysign, Ltd. | (263,087) | 263,087 | ||||
Net income (loss) | 1,540,965 | 0 | 1,540,965 | |||
Ending balance, shares at Mar. 31, 2020 | 49,016,270 | |||||
Ending balance, value at Mar. 31, 2020 | $ 49,016 | $ 12,062,197 | $ (150,000) | $ 9,629,450 | $ 0 | $ 21,590,663 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income attributable to Paysign, Inc. | $ 1,540,965 | $ 871,671 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Change in noncontrolling interest | 0 | (564) |
Depreciation and amortization | 502,376 | 333,761 |
Stock based compensation | 724,183 | 646,710 |
Deferred taxes | (75,902) | 0 |
Changes in operating assets and liabilities: | ||
Change in accounts receivable | (19,661) | (330,548) |
Change in prepaid expenses and other current assets | 32,525 | 108,884 |
Change in accounts payable and accrued liabilities | 475,442 | (748,447) |
Change in customer card funding | 7,569,104 | 19,151,504 |
Net cash provided by operating activities | 10,749,032 | 20,032,971 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (953,894) | (195,460) |
Increase in intangible assets | (542,229) | (363,955) |
Net cash used in investing activities | (1,496,123) | (559,415) |
Cash flows from financing activities: | ||
Proceeds from exercise of options | 24,000 | 0 |
Net cash provided by financing activities | 24,000 | 0 |
Net change in cash and restricted cash | 9,276,909 | 19,473,556 |
Cash and restricted cash, beginning of period | 45,572,305 | 31,665,741 |
Cash and restricted cash, end of period | 54,849,214 | 51,139,297 |
Non-cash financing activities | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
RECONCILIATION OF CASH
RECONCILIATION OF CASH - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||
Cash | $ 9,424,385 | $ 9,663,746 | $ 5,211,161 | |
Restricted cash | 45,424,829 | 35,908,559 | 45,928,136 | |
Total cash and restricted cash | $ 54,849,214 | $ 45,572,305 | $ 51,139,297 | $ 31,665,741 |
1. DESCRIPTION OF BUSINESS, HIS
1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING 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, 2019. 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 months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” or “we”, formerly known as 3PEA International, Inc.) is a vertically integrated provider of prepaid card products and processing services for corporate, consumer and government applications. 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. Our proprietary PaySign platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform allows us to 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. Principles of Consolidation Use of Estimates Restricted Cash Fixed Assets The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability. Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. 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. Earnings Per Share Revenue and Expense Recognition 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 contracts 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 obligation. All of the Company’s revenues are recognized over time. The Company generates revenue through fees generated from cardholder transactions, interchange, card program management fees and settlement income. Revenue from cardholder transactions, interchange and card program management is recorded when the performance obligation is fulfilled. Settlement income is recognized and recorded ratably throughout the account and program life cycle. 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 New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
2. FIXED ASSETS, NET
2. FIXED ASSETS, NET | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | 2. FIXED ASSETS, NET Fixed assets consist of the following: March 31, December 31, Equipment $ 2,119,533 $ 2,026,549 Software 180,224 180,223 Furniture and fixtures 950,743 149,684 Website costs 65,071 34,971 Leasehold improvements 82,644 52,894 3,398,215 2,444,321 Less: accumulated depreciation 1,599,464 1,507,136 Fixed assets, net $ 1,798,751 $ 937,185 |
3. INTANGIBLE ASSETS, NET
3. INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 3. INTANGIBLE ASSETS, NET Intangible assets consist of the following: March 31, December 31, Trademarks $ 39,053 $ 39,053 Platform 6,083,238 5,598,136 Customer lists and contracts 1,177,200 1,177,200 Kiosk 64,802 64,802 Licenses 591,696 534,569 7,955,989 7,413,760 Less: accumulated amortization 4,007,576 3,597,528 Intangible assets, net $ 3,948,413 $ 3,816,232 Intangible assets are amortized over their useful lives ranging from periods of 3 to 5 years. |
4. COMMON STOCK
4. COMMON STOCK | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
COMMON STOCK | 4. COMMON STOCK At March 31, 2020, 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. On that date, the Company had 49,016,270 shares of common stock issued and outstanding, and no shares of preferred stock outstanding. Stock-based compensation expense related to Company grants for the three months ended March 31, 2020 was $724,183. Stock-based compensation expense for the three months end March 31, 2019 was $646,710. 2020 Transactions: 2019 Transactions: |
5. BASIC AND FULLY DILUTED NET
5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and 2019: 2020 2019 Numerator: Net income attributable to Paysign, Inc. $ 1,540,965 $ 871,671 Denominator: Weighted average common shares: Denominator for basic calculation 48,713,163 46,961,079 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 1,824,903 2,027,756 Unvested restricted stock grants 4,150,000 5,520,000 Denominator for fully diluted calculation 54,688,066 54,508,835 Net income per common share: Basic $ 0.03 $ 0.02 Fully diluted $ 0.03 $ 0.02 |
6. COMMITMENTS AND CONTINGENCIE
6. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES The Company has been named as a defendant in three recent complaints filed in the United States District Court for the District of Nevada: Yilan Shi v. Paysign, Inc. et. al., filed on March 19, 2020, Lorna Chase v. Paysign, Inc. et. al., filed on March 25, 2020 and Smith & Duvall v. Paysign, Inc. et. al., filed on April 2, 2020 (collectively, the “Complaints”). All three complaints are putatively class action lawsuits filed on behalf of a class of persons who acquired the Company’s common stock from March 12, 2020 through March 30, 2020, inclusive. The Complaints allege that the Company, Mark R. Newcomer, and Mark Attinger violated Section 10(b) of the Exchange Act, and Messrs. Newcomer and Attinger violated Section 20(a) of the Exchange Act, by making materially false or misleading statements, or failing to disclose material facts, regarding our internal control over financial reporting and our financial statements. The Complaints seek certification as a class action, compensatory damages, and attorney’s fees and costs. Paysign has not been served any of the complaints as of the date of this filing and cannot give any meaningful probability of outcome or damages. The outbreak of a novel coronavirus and the incidence of the related disease (COVID-19) starting in late 2019 has continued, spreading throughout the United States and much of the world beginning in the first quarter of 2020. In March 2020, the World Health Organization declared the outbreak as a pandemic. While the disruption is currently expected to be temporary, there is uncertainty around the duration. We have not seen a negative impact to our business, results of operations, and financial position, however the related financial impact cannot be reasonably estimated at this time. |
7. RELATED PARTY
7. RELATED PARTY | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY | 7. RELATED PARTY A member of our Board of Directors is also a partner in a law firm that the Company incurred $19,000 and $-0- during the three months ended March 31, 2020 and 2019, respectively. |
8. SUBSEQUENT EVENTS
8. SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 8. 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. DESCRIPTION OF BUSINESS, H_2
1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business/About Paysign | 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, 2019. 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 months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” or “we”, formerly known as 3PEA International, Inc.) is a vertically integrated provider of prepaid card products and processing services for corporate, consumer and government applications. 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. Our proprietary PaySign platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform allows us to 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. |
Principles of consolidation | Principles of Consolidation |
Use of estimates | Use of Estimates |
Restricted cash | Restricted Cash |
Fixed assets | Fixed Assets The Company periodically evaluates whether events and circumstances have occurred that may warrant revision of the estimated useful life of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability. |
Intangible assets | Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. 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. |
Earnings per share | Earnings Per Share |
Revenue and expense recognition | Revenue and Expense Recognition 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 contracts 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 obligation. All of the Company’s revenues are recognized over time. The Company generates revenue through fees generated from cardholder transactions, interchange, card program management fees and settlement income. Revenue from cardholder transactions, interchange and card program management is recorded when the performance obligation is fulfilled. Settlement income is recognized and recorded ratably throughout the account and program life cycle. 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 |
New accounting pronouncements | New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
2. FIXED ASSETS, NET (Tables)
2. FIXED ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | March 31, December 31, Equipment $ 2,119,533 $ 2,026,549 Software 180,224 180,223 Furniture and fixtures 950,743 149,684 Website costs 65,071 34,971 Leasehold improvements 82,644 52,894 3,398,215 2,444,321 Less: accumulated depreciation 1,599,464 1,507,136 Fixed assets, net $ 1,798,751 $ 937,185 |
3. INTANGIBLE ASSETS, NET (Tabl
3. INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |
Schedule of intangible assets | March 31, December 31, Trademarks $ 39,053 $ 39,053 Platform 6,083,238 5,598,136 Customer lists and contracts 1,177,200 1,177,200 Kiosk 64,802 64,802 Licenses 591,696 534,569 7,955,989 7,413,760 Less: accumulated amortization 4,007,576 3,597,528 Intangible assets, net $ 3,948,413 $ 3,816,232 |
5. BASIC AND FULLY DILUTED NE_2
5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | 2020 2019 Numerator: Net income attributable to Paysign, Inc. $ 1,540,965 $ 871,671 Denominator: Weighted average common shares: Denominator for basic calculation 48,713,163 46,961,079 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 1,824,903 2,027,756 Unvested restricted stock grants 4,150,000 5,520,000 Denominator for fully diluted calculation 54,688,066 54,508,835 Net income per common share: Basic $ 0.03 $ 0.02 Fully diluted $ 0.03 $ 0.02 |
1. DESCRIPTION OF BUSINESS, H_3
1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Antidilutive shares | 0 | 0 |
Estimated useful lives of fixed assets | 3 to 10 years |
2. FIXED ASSETS, NET (Details)
2. FIXED ASSETS, NET (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed Assets Gross | $ 3,398,215 | $ 2,444,321 |
Less: accumulated depreciation | 1,599,464 | 1,507,136 |
Fixed assets, net | 1,798,751 | 937,185 |
Equipment [Member] | ||
Fixed Assets Gross | 2,119,533 | 2,026,549 |
Software [Member] | ||
Fixed Assets Gross | 180,224 | 180,223 |
Furniture and Fixtures [Member] | ||
Fixed Assets Gross | 950,743 | 149,684 |
Website Costs [Member] | ||
Fixed Assets Gross | 65,071 | 34,971 |
Leasehold Improvements [Member] | ||
Fixed Assets Gross | $ 82,644 | $ 52,894 |
3. INTANGIBLE ASSETS, NET (Deta
3. INTANGIBLE ASSETS, NET (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Intangible assets gross | $ 7,955,989 | $ 7,413,760 |
Less: accumulated amortization | 4,007,576 | 3,597,528 |
Intangible assets, net | 3,948,413 | 3,816,232 |
Trademarks [Member] | ||
Intangible assets gross | 39,053 | 39,053 |
Platform [Member] | ||
Intangible assets gross | 6,083,238 | 5,598,136 |
Customer lists and contracts [Member] | ||
Intangible assets gross | 1,177,200 | 1,177,200 |
Kiosk [Member] | ||
Intangible assets gross | 64,802 | 64,802 |
Licenses [Member] | ||
Intangible assets gross | $ 591,696 | $ 534,569 |
3. INTANGIBLE ASSETS, NET (De_2
3. INTANGIBLE ASSETS, NET (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Maximum [Member] | |
Intangible assets useful lives | 5 years |
Minimum [Member] | |
Intangible assets useful lives | 3 years |
4. COMMON STOCK (Details Narrat
4. COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Common stock, shares authorized | 150,000,000 | 150,000,000 | |
Common stock, par value | $ 0.001 | $ .001 | |
Common stock, shares outstanding | 49,016,270 | 48,577,712 | |
Stock based compensation expense | $ 724,183 | $ 646,710 | |
Options granted | 500,000 | ||
Fair value of options per share | $ 2.86 | ||
Option vesting period | 4 years | ||
Proceeds from exercise of options | $ 24,000 | $ 0 | |
Stock issued for vested stock grants and exercise of options, shares | 438,558 | 291,147 |
5. BASIC AND FULLY DILUTED NE_3
5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income attributable to Paysign, Inc. | $ 1,540,965 | $ 871,671 |
Denominator: | ||
Denominator for basic calculation | 48,713,163 | 49,961,079 |
Weighted average effects of potentially diluted common stock: | ||
Stock options (calculated under treasury method) | 1,824,903 | 2,027,756 |
Unvested restricted stock grants | 4,150,000 | 5,520,000 |
Denominator for fully diluted calculation | 54,688,066 | 54,508,835 |
Net income per common share: | ||
Basic | $ 0.03 | $ 0.02 |
Fully diluted | $ 0.03 | $ 0.02 |
7. RELATED PARTY (Details Narra
7. RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Legal fees paid to related party | $ 19,000 | $ 0 |