Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38623 | |
Entity Registrant Name | PAYSIGN, INC. | |
Entity Central Index Key | 0001496443 | |
Entity Tax Identification Number | 95-4550154 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2615 St. Rose Parkway | |
Entity Address, City or Town | Henderson | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89052 | |
City Area Code | (702) | |
Local Phone Number | 453-2221 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | PAYS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,691,932 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 6,926,969 | $ 7,829,453 |
Restricted cash | 63,260,491 | 48,100,951 |
Accounts receivable | 1,680,441 | 654,859 |
Prepaid expenses and other current assets | 1,543,355 | 1,375,364 |
Total current assets | 73,411,256 | 57,960,627 |
Fixed assets, net | 1,733,853 | 1,849,164 |
Intangible assets, net | 4,037,219 | 3,699,033 |
Operating lease right-of-use asset | 4,007,571 | 4,324,682 |
Total assets | 83,189,899 | 67,833,506 |
Current liabilities | ||
Accounts payable and accrued liabilities | 3,451,411 | 2,162,256 |
Operating lease liability, current portion | 335,357 | 320,636 |
Customer card funding | 63,260,491 | 48,100,951 |
Total current liabilities | 67,047,259 | 50,583,843 |
Operating lease liability, long term portion | 3,760,208 | 4,013,598 |
Total liabilities | 70,807,467 | 54,597,441 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Preferred stock: $0.001 par value; 25,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.001 par value; 150,000,000 shares authorized, 51,636,382 and 50,251,607 issued at September 30, 2021 and December 31, 2020, respectively | 51,636 | 50,252 |
Additional paid-in capital | 16,360,373 | 14,388,890 |
Treasury stock at cost, 303,450 shares | (150,000) | (150,000) |
Accumulated deficit | (3,879,577) | (1,053,077) |
Total stockholders' equity | 12,382,432 | 13,236,065 |
Total liabilities and stockholders' equity | $ 83,189,899 | $ 67,833,506 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 51,636,382 | 50,251,607 |
Treasury stock shares | 303,450 | 303,450 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Total revenues | $ 7,767,189 | $ (152,541) | $ 20,697,907 | $ 16,866,997 |
Cost of revenues | 3,797,919 | 3,281,888 | 10,744,264 | 11,275,758 |
Gross profit | 3,969,270 | (3,434,429) | 9,953,643 | 5,591,239 |
Operating expenses | ||||
Selling, general and administrative | 3,618,071 | 4,070,211 | 10,957,619 | 11,299,036 |
Impairment of intangible asset | 0 | 382,414 | 0 | 382,414 |
Loss on abandonment of assets | 0 | 0 | 0 | 42,898 |
Depreciation and amortization | 628,324 | 537,792 | 1,838,354 | 1,546,645 |
Total operating expenses | 4,246,395 | 4,990,417 | 12,795,973 | 13,270,993 |
Loss from operations | (277,125) | (8,424,846) | (2,842,330) | (7,679,754) |
Other income (expense) | ||||
Interest income, net | 6,119 | 12,184 | 18,230 | 77,475 |
Loss before income tax provision (benefit) | (271,006) | (8,412,662) | (2,824,100) | (7,602,279) |
Income tax provision (benefit) | (2,260,527) | 2,400 | (2,771,875) | |
Net loss | $ (271,006) | $ (6,152,135) | $ (2,826,500) | $ (4,830,404) |
Net loss per share | ||||
Basic | $ (0.01) | $ (0.12) | $ (0.06) | $ (0.10) |
Diluted | $ (0.01) | $ (0.12) | $ (0.06) | $ (0.10) |
Weighted average common shares | ||||
Basic | 51,154,725 | 49,433,473 | 50,754,652 | 49,055,492 |
Diluted | 51,154,725 | 49,433,473 | 50,754,652 | 49,055,492 |
Plasma Industry [Member] | ||||
Revenues | ||||
Total revenues | $ 7,035,546 | $ 5,186,566 | $ 18,366,010 | $ 17,102,415 |
Pharmaceutical industry [Member] | ||||
Revenues | ||||
Total revenues | 660,331 | (5,383,887) | 2,184,198 | (594,945) |
Other Revenue [Member] | ||||
Revenues | ||||
Total revenues | $ 71,312 | $ 44,780 | $ 147,699 | $ 359,527 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 48,578 | $ 11,577,539 | $ (150,000) | $ 8,088,485 | $ (263,087) | $ 19,301,515 |
Beginning balance, shares at Dec. 31, 2019 | 48,577,712 | |||||
Stock issued upon vesting of restricted stock | $ 428 | (428) | ||||
Issuance of stock for previously vested stock-based compensation, shares | 428,558 | |||||
Exercise of stock options | $ 10 | 23,990 | 24,000 | |||
Exercise of stock options, shares | 10,000 | |||||
Stock-based compensation | 724,183 | 724,183 | ||||
Dissolution of Paysign, Ltd. Subsidiary | (263,087) | 263,087 | ||||
Net loss | 1,540,965 | 1,540,965 | ||||
Ending balance, value at Mar. 31, 2020 | $ 49,016 | 12,062,197 | (150,000) | 9,629,450 | 21,590,663 | |
Ending balance, shares at Mar. 31, 2020 | 49,016,270 | |||||
Beginning balance, value at Dec. 31, 2019 | $ 48,578 | 11,577,539 | (150,000) | 8,088,485 | (263,087) | 19,301,515 |
Beginning balance, shares at Dec. 31, 2019 | 48,577,712 | |||||
Net loss | (4,830,404) | |||||
Ending balance, value at Sep. 30, 2020 | $ 49,889 | 13,532,403 | (150,000) | 3,258,081 | 16,690,373 | |
Ending balance, shares at Sep. 30, 2020 | 49,888,907 | |||||
Beginning balance, value at Mar. 31, 2020 | $ 49,016 | 12,062,197 | (150,000) | 9,629,450 | 21,590,663 | |
Beginning balance, shares at Mar. 31, 2020 | 49,016,270 | |||||
Stock issued upon vesting of restricted stock | $ 338 | (338) | ||||
Issuance of stock for previously vested stock-based compensation, shares | 337,437 | |||||
Stock-based compensation | 600,775 | 600,775 | ||||
Issuance of stock for acquisition of contract assets | $ 20 | 177,180 | 177,200 | |||
Issuance of stock for acquisition of contract assets, shares | 20,000 | |||||
Net loss | (219,234) | (219,234) | ||||
Repurchase of employee common stock for taxes withheld | (245,425) | (245,425) | ||||
Ending balance, value at Jun. 30, 2020 | $ 49,374 | 12,594,389 | (150,000) | 9,410,216 | 21,903,979 | |
Ending balance, shares at Jun. 30, 2020 | 49,373,707 | |||||
Stock issued upon vesting of restricted stock | $ 457 | (457) | ||||
Issuance of stock for previously vested stock-based compensation, shares | 457,000 | |||||
Exercise of stock options | $ 58 | 139,622 | 139,680 | |||
Exercise of stock options, shares | 58,200 | |||||
Stock-based compensation | 798,849 | 798,849 | ||||
Net loss | (6,152,135) | (6,152,135) | ||||
Ending balance, value at Sep. 30, 2020 | $ 49,889 | 13,532,403 | (150,000) | 3,258,081 | 16,690,373 | |
Ending balance, shares at Sep. 30, 2020 | 49,888,907 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 50,252 | 14,388,890 | (150,000) | (1,053,077) | 13,236,065 | |
Beginning balance, shares at Dec. 31, 2020 | 50,251,607 | |||||
Stock issued upon vesting of restricted stock | $ 467 | (467) | ||||
Issuance of stock for previously vested stock-based compensation, shares | 466,689 | |||||
Exercise of stock options | $ 32 | 110,434 | 110,466 | |||
Exercise of stock options, shares | 32,586 | |||||
Stock-based compensation | 636,214 | 636,214 | ||||
Net loss | (1,623,527) | (1,623,527) | ||||
Ending balance, value at Mar. 31, 2021 | $ 50,751 | 15,135,071 | (150,000) | (2,676,604) | 12,359,218 | |
Ending balance, shares at Mar. 31, 2021 | 50,750,882 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 50,252 | 14,388,890 | (150,000) | (1,053,077) | 13,236,065 | |
Beginning balance, shares at Dec. 31, 2020 | 50,251,607 | |||||
Net loss | (2,826,500) | |||||
Ending balance, value at Sep. 30, 2021 | $ 51,636 | 16,360,373 | (150,000) | (3,879,577) | 12,382,432 | |
Ending balance, shares at Sep. 30, 2021 | 51,636,382 | |||||
Beginning balance, value at Mar. 31, 2021 | $ 50,751 | 15,135,071 | (150,000) | (2,676,604) | 12,359,218 | |
Beginning balance, shares at Mar. 31, 2021 | 50,750,882 | |||||
Stock issued upon vesting of restricted stock | $ 390 | (390) | ||||
Issuance of stock for previously vested stock-based compensation, shares | 390,000 | |||||
Exercise of stock options | $ 2 | 9,673 | 9,675 | |||
Exercise of stock options, shares | 2,500 | |||||
Stock-based compensation | 540,921 | 540,921 | ||||
Net loss | (931,967) | (931,967) | ||||
Repurchase of employee common stock for taxes withheld | ||||||
Ending balance, value at Jun. 30, 2021 | $ 51,143 | 15,685,275 | (150,000) | (3,608,571) | 11,977,847 | |
Ending balance, shares at Jun. 30, 2021 | 51,143,382 | |||||
Stock issued upon vesting of restricted stock | $ 463 | (463) | ||||
Issuance of stock for previously vested stock-based compensation, shares | 463,000 | |||||
Exercise of stock options | $ 30 | 71,970 | 72,000 | |||
Exercise of stock options, shares | 30,000 | |||||
Stock-based compensation | 603,591 | 603,591 | ||||
Net loss | (271,006) | (271,006) | ||||
Ending balance, value at Sep. 30, 2021 | $ 51,636 | $ 16,360,373 | $ (150,000) | $ (3,879,577) | $ 12,382,432 | |
Ending balance, shares at Sep. 30, 2021 | 51,636,382 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (2,826,500) | $ (4,830,404) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,838,354 | 1,546,645 |
Stock-based compensation expense | 1,780,726 | 2,123,807 |
Noncash lease expense | 317,111 | 83,274 |
Impairment of intangible asset | 0 | 382,414 |
Loss on abandonment of assets | 0 | 42,898 |
Deferred income taxes | 0 | (2,760,226) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,025,582) | 99,793 |
Prepaid expenses and other current assets | (167,991) | 48,387 |
Accounts payable and accrued liabilities | 1,194,607 | 594,678 |
Operating lease liability | (238,669) | (43,832) |
Customer card funding | 15,159,540 | 15,291,372 |
Net cash provided by operating activities | 16,031,596 | 12,578,806 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (189,562) | (1,096,591) |
Capitalization of internally developed software | (1,718,638) | (1,403,470) |
Purchase of intangible assets | (58,481) | (57,127) |
Net cash used in investing activities | (1,966,681) | (2,557,188) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 192,141 | 163,680 |
Repurchase of employee common stock for taxes withheld | 0 | (245,425) |
Net cash provided by (used in) financing activities | 192,141 | (81,745) |
Net change in cash and restricted cash | 14,257,056 | 9,939,873 |
Cash and restricted cash, beginning of period | 55,930,404 | 45,572,305 |
Cash and restricted cash, end of period | 70,187,460 | 55,512,178 |
Supplemental cash flow information: | ||
Cash paid for taxes | 2,400 | 0 |
Cash paid for interest | 3,704 | 0 |
Fixed assets acquired through accounts payable | 94,549 | 0 |
Operating lease right-of-use asset and operating lease liability | 0 | 4,455,271 |
Issuance of stock for asset acquisition | 0 | 177,200 |
Dissolution of noncontrolling interest | $ 0 | $ 263,087 |
SCHEDULE OF CASH RECONCILIATION
SCHEDULE OF CASH RECONCILIATION (UNAUDITED) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and restricted cash reconciliation: | ||||
Cash | $ 6,926,969 | $ 7,829,453 | $ 7,497,579 | |
Restricted cash | 63,260,491 | 48,100,951 | 48,014,599 | |
Total cash and restricted cash | $ 70,187,460 | $ 55,930,404 | $ 55,512,178 | $ 45,572,305 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
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 consolidated 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 consolidated 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, 2020. In the opinion of management, the unaudited interim condensed consolidated 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, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Impact of COVID-19 Pandemic The coronavirus (COVID-19) pandemic, which started in late 2019 and reached the United States in early 2020, continues to significantly impact the economy of the United States and the rest of the world. While the disruption appears to be mitigating due to the availability of vaccines and other factors, the ultimate duration and severity of the pandemic remain uncertain, particularly given the development of new variants that continue to spread. The COVID-19 outbreak caused plasma center closures, and the stimulus packages signed into law during 2020 and 2021 reduced the incentive for individuals to donate plasma for supplementary income. Those developments have had and will continue to have an adverse impact on the Company’s results of operations. While we remain cautiously optimistic and have seen improvements in our operating results, we cannot foresee how long it may take the Company to attain pre-pandemic operating levels as COVID-19 related labor shortages at plasma donation centers, border closures, and other effects continue to weigh on the Company’s results of operations. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and variants and around the imposition or relaxation of protective measures, management cannot at this time estimate with reasonable accuracy COVID-19’s further impact on the Company’s results of operations, cash flows or financial condition. About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” or “we,” formerly known as 3PEA International, Inc.) is a provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing designed for businesses, consumers and government institutions. Founded in 2001 and headquartered in southern Nevada, the company creates customized, innovative payment solutions for clients across all industries, including pharmaceutical, healthcare, hospitality and retail. By using Paysign solutions, clients enjoy benefits such as lower administrative costs, streamlined operations, increased revenues, accelerated product adoption, and improved customer, employee and partner loyalty. Built on the foundation of a powerful and reliable payments platform, Paysign’s end-to-end technologies securely enable a wide range of services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting and customer care. The modern cross-platform architecture is designed to be highly flexible, scalable and customizable, which delivers cost benefits and revenue-building opportunities to clients and partners. As a full-service program manager, Paysign manages all aspects of the prepaid card lifecycle, from card design and bank approvals, production, packaging, distribution and personalization, to inventory and security controls, renewals, lost and stolen cards and card replacement. The company’s in-house, bilingual customer care is available 24/7/365 through live agents, interactive voice response (IVR), and two-way SMS alerts. For more than 20 years major pharmaceutical and healthcare companies and multinational enterprises have relied on Paysign to provide full-service programs tailored to their unique requirements. The Company has designed and launched prepaid card programs for corporate rewards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and copay assistance. Paysign’s expanded product offerings now include additional corporate incentive products and demand deposit accounts accessible with a debit card. Principles of Consolidation Reclassifications 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 a finite life are amortized on a straight-line basis over its estimated useful life. 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 3 to 5 year estimated useful life, beginning in the period in which the software is available for use. Earnings Per Share Revenue and Expense Recognition The Company generates revenues from Plasma card programs through fees generated from cardholder fees and interchange fees. Revenues from Pharma card programs are generated through card program management fees, interchange fees, and settlement income. Plasma and Pharma card program revenues include both fixed and variable components. Our cardholder fees represent an obligation to the cardholder based on a per transaction basis and recognized at a point in time when the performance obligation is fulfilled. Card program management fees include an obligation to our card program sponsors and are generally recognized when earned on a monthly basis and paid pursuant to the contract terms which are generally multi-year contracts. The Company uses the output method to recognize card program management fee revenue at the amount of consideration to which an entity has a right to invoice. The services are transferred to the customer when the performance obligation is completed which the Company determined to be monthly. Interchange fees are earned when customer-issued cards are processed through card payment networks as the nature of our promise to the customer is that we stand ready to process transactions at the customer’s requests on a daily basis over the contract term. Since the timing and quantity of transactions to be processed by us is not determinable, we view interchange fees to comprise an obligation to stand ready to process as many transactions as the customer requests. Accordingly, the promise to stand ready is accounted for as a single series performance obligation. The Company uses the right to invoice practical expedient and recognizes interchange fee revenue concurrent with the processing of card transactions. Interchange fees are settled in accordance with the card payment network terms and condition. Prior to September 30, 2020, settlement income from Pharma programs was recognized and recorded, after giving consideration to any revenue constraints, ratably throughout the program lifecycle based on the Company’s estimate of the unspent balances to be remaining on the card at program expiration. During 2020, the Company observed substantially different performance indicators, current trends in the industry regarding program management by third parties, and new information available in dollar loads and spending patterns compared to historical experience. As a result, the Company changed its estimate of breakage for recognizing settlement income for Pharma programs resulting in the Company constraining revenue on all Pharma programs in accordance with applicable accounting guidance. Based on the change in facts and circumstances during 2020, the Company now utilizes the remote method of revenue recognition for settlement income whereby the unspent balances will be recognized as revenue at the expiration of the cards and the respective program. 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, and the Company does not currently have any obligations for disputed claim settlements. Given the nature of the Company’s services and contracts, it has no contract assets. Cost of revenues is comprised of transaction processing fees, data connectivity and data center expenses, network fees, bank fees, card production and postage costs, customer service, program management, application integration setup, and sales and commission expense. Operating leases In determining the present value of lease payments at lease commencement date, the Company utilizes its incremental borrowing rate based on the information available, unless the rate implicit in the lease is readily determinable. The liability for operating leases is based on the present value of future lease payments. Operating lease expenses are recorded as rent expense, which is included within selling, general and administrative expenses within the consolidated statements of operations and presented as operating cash outflows within the consolidated statements of cash flows. Stock-Based Compensation New Accounting Pronouncements Simplifying the Accounting for Income Taxes |
FIXED ASSETS, NET
FIXED ASSETS, NET | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS, NET | 2. FIXED ASSETS, NET Fixed assets consist of the following: Schedule of fixed assets September 30, December 31, Equipment $ 2,082,533 $ 1,888,640 Software 257,610 200,282 Furniture and fixtures 757,662 752,212 Website costs 68,971 67,816 Leasehold improvements 229,772 203,488 3,396,548 3,112,438 Less: accumulated depreciation 1,662,695 1,263,274 Fixed assets, net $ 1,733,853 $ 1,849,164 Depreciation expense for the three months ended September 30, 2021 and 2020 was $ 134,296 115,778 399,421 311,039 42,898 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 3. INTANGIBLE ASSETS, NET Intangible assets consist of the following: Schedule of intangible assets September 30, December 31, Platform $ 9,279,844 $ 7,478,419 Customer lists and contracts 1,177,200 1,177,200 Licenses 209,282 234,282 Trademarks 38,186 38,186 10,704,512 8,928,087 Less: accumulated amortization 6,667,293 5,229,054 Intangible assets, net $ 4,037,219 $ 3,699,033 Amortization expense for the three months ended September 30, 2021 and 2020 was $ 494,028 422,014 1,438,933 1,235,606 During the three months ended September 30, 2020 the Company reviewed the carrying value of acquisition costs related to a business license and determined that there was an impairment necessary as the efforts to acquire the license had been suspended. As the impairment was deemed other than temporary, the impairment of $ 382,414 |
LEASE
LEASE | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASE | 4. LEASE The Company entered into an operating lease for office space which became effective in June 2020. The lease term is 10 two optional extensions of five years each. 8.7 6 Operating lease cost included in selling, general and administrative expenses was $ 189,950 614,150 218,412 278,302 142,992 132,992 428,972 323,648 143,768 The following is the lease maturity analysis of our operating lease as of September 30, 2021: Twelve months ending September 30, Schedule of operating lease liabilities 2022 $ 571,968 2023 571,968 2024 571,968 2025 594,847 2026 640,604 Thereafter 2,348,882 Total lease payments 5,300,237 Less: Imputed interest (1,204,672 ) Present value of future lease payments 4,095,565 Less: current portion of lease liability (335,357 ) Long-term portion of lease liability $ 3,760,208 |
CUSTOMER CARD FUNDING LIABILITY
CUSTOMER CARD FUNDING LIABILITY | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
CUSTOMER CARD FUNDING LIABILITY | 5. CUSTOMER CARD FUNDING LIABILITY The Company issues prepaid cards with various provisions for cardholder fees or expiration. Revenue generated from cardholder transactions and interchange fees are recognized when the Company’s performance obligation is fulfilled. Unspent balances left on Pharma cards are recognized as settlement income at the expiration of the cards and the program. Contract liabilities related to prepaid cards represent funds on card and client funds held to be loaded to card before the amounts are ultimately spent by the cardholders or recognized as revenue by the Company. Contract liabilities related to prepaid cards are reported as Customer card funding liability on the condensed consolidated balance sheet. The opening and closing balances of the Company's contract liabilities are as follows: Schedule of contract liabilities Nine Months Ended September 30, 2021 2020 Beginning balance $ 48,100,951 $ 32,723,227 Increase (decrease), net 15,159,540 15,291,372 Ending balance $ 63,260,491 $ 48,014,599 The amount of revenue recognized during the nine months ended September 30, 2021 and 2020 that was included in the opening contract liability for prepaid cards was $ 1,023,055 844,514 |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
COMMON STOCK | 6. COMMON STOCK At September 30, 2021, 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 51,636,382 shares of common stock issued and 51,332,932 shares of common stock outstanding, and no shares of preferred stock outstanding. Stock-based compensation expense related to Company grants for the three and nine months ended September 30, 2021 was $ 603,591 1,780,726 798,849 2,123,807 2021 Transactions: 493,000 1,384,775 72,000 192,141 2020 Transactions: 0 500,000 515,200 1,291,195 139,680 163,680 20,000 |
BASIC AND FULLY DILUTED NET LOS
BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE | 7. BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE The following table sets forth the computation of basic and fully diluted net loss per common share for the nine months ended September 30, 2021 and 2020: Computation of earnings per share Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net loss $ (271,006 ) $ (6,152,135 ) $ (2,826,500 ) $ (4,830,404 ) Denominator: Weighted average common shares: Denominator for basic calculation 51,154,725 49,433,473 50,754,652 49,055,492 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) – – – – Unvested restricted stock grants – – – – Denominator for fully diluted calculation 51,154,725 49,433,473 50,754,652 49,055,492 Net loss per common share: Basic $ (0.01 ) $ (0.12 ) $ (0.06 ) $ (0.10 ) Fully diluted $ (0.01 ) $ (0.12 ) $ (0.06 ) $ (0.10 ) Due to the net loss for the three and nine months ended September 30, 2021, the effect of all potential common share equivalents was anti-dilutive, and therefore, all such shares were excluded from the computation of diluted weighted average shares outstanding for both periods. For the three and nine months ended September 30, 2021, the amount of potential common share equivalents excluded were 1,923,200 1,530,000 2,746,400 3,075,500 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. The Company has been named as a defendant in three 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 (“Shi”), Lorna Chase v. Paysign, Inc. et. al., filed on March 25, 2020 (“Chase”), and Smith & Duvall v. Paysign, Inc. et. al., filed on April 2, 2020 (collectively, the “Complaints” or “Securities Class Action”). Smith & Duvall v. Paysign, Inc. et al. was voluntarily dismissed on May 21, 2020. On May 18, 2020, the Shi plaintiffs and another entity called the Paysign Investor Group each filed a motion to consolidate the remaining Shi and Chase actions and to be appointed lead plaintiff. The Complaints are putative class actions filed on behalf of a class of persons who acquired the Company’s common stock from March 19, 2019 through March 31, 2020, inclusive. The Complaints generally allege that the Company, Mark R. Newcomer, and Mark Attinger violated Section 10(b) of the Exchange Act, and that 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 the Company’s internal control over financial reporting and its financial statements. The Complaints seek class action certification, compensatory damages, and attorney’s fees and costs. On December 2, 2020, the Court consolidated Shi and Chase as In re Paysign, Inc. Securities Litigation and appointed the Paysign Investor Group as lead plaintiff. On January 12, 2021, Plaintiffs filed an Amended Complaint in the consolidated action. Defendants filed a Motion to Dismiss the Amended Complaint on March 15, 2021, which Plaintiffs opposed via an opposition brief filed on April 29, 2021, to which Defendants replied on June 1, 2021. Thus, the motion is now fully briefed. The Court has not set a hearing date on the motion, or informed the parties whether it intends to entertain oral argument or rule upon the papers filed. As of the date of this filing, Paysign cannot give any meaningful estimate of likely outcome or damages. The Company has also been named as a nominal defendant in a stockholder derivative action in the United States District Court for the District of Nevada: Andrzej Toczek, derivatively on behalf of Paysign, Inc. v. Mark, R. Newcomer, et. al., filed on September 17, 2020. This action alleges violations of Section 14(a) of the Exchange Act, breach of fiduciary duty, unjust enrichment, and waste, largely in connection with the failure to correct information technology controls over financial reporting alleged in the Securities Class Action, thereby causing the Company to face exposure in the Securities Class Action. The derivative complaint also alleges insider trading, violations against certain individual defendants. On December 16, 2020, the Court approved a stipulation staying the action until the Court in the consolidated Securities Class Action issues a ruling on the Motion to Dismiss. As of the date of this filing, Paysign cannot give any meaningful estimate of likely outcome or damages. |
RELATED PARTY
RELATED PARTY | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY | 9. RELATED PARTY A member of our Board of Directors is also a partner in a law firm that the Company engages for services to review regulatory filings and for various other legal matters. The Company incurred legal expense of $ 28,366 439,250 429,380 544,868 |
INCOME TAX BENEFIT
INCOME TAX BENEFIT | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX BENEFIT | 10. INCOME TAX BENEFIT The effective tax rate (income tax provision (benefit) as a percentage of loss before income tax provision (benefit)) was 0.0 26.9 (0.1%) 36.5 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Impact of COVID-19 Pandemic | Impact of COVID-19 Pandemic The coronavirus (COVID-19) pandemic, which started in late 2019 and reached the United States in early 2020, continues to significantly impact the economy of the United States and the rest of the world. While the disruption appears to be mitigating due to the availability of vaccines and other factors, the ultimate duration and severity of the pandemic remain uncertain, particularly given the development of new variants that continue to spread. The COVID-19 outbreak caused plasma center closures, and the stimulus packages signed into law during 2020 and 2021 reduced the incentive for individuals to donate plasma for supplementary income. Those developments have had and will continue to have an adverse impact on the Company’s results of operations. While we remain cautiously optimistic and have seen improvements in our operating results, we cannot foresee how long it may take the Company to attain pre-pandemic operating levels as COVID-19 related labor shortages at plasma donation centers, border closures, and other effects continue to weigh on the Company’s results of operations. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and variants and around the imposition or relaxation of protective measures, management cannot at this time estimate with reasonable accuracy COVID-19’s further impact on the Company’s results of operations, cash flows or financial condition. |
About Paysign, Inc. | About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” or “we,” formerly known as 3PEA International, Inc.) is a provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing designed for businesses, consumers and government institutions. Founded in 2001 and headquartered in southern Nevada, the company creates customized, innovative payment solutions for clients across all industries, including pharmaceutical, healthcare, hospitality and retail. By using Paysign solutions, clients enjoy benefits such as lower administrative costs, streamlined operations, increased revenues, accelerated product adoption, and improved customer, employee and partner loyalty. Built on the foundation of a powerful and reliable payments platform, Paysign’s end-to-end technologies securely enable a wide range of services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting and customer care. The modern cross-platform architecture is designed to be highly flexible, scalable and customizable, which delivers cost benefits and revenue-building opportunities to clients and partners. As a full-service program manager, Paysign manages all aspects of the prepaid card lifecycle, from card design and bank approvals, production, packaging, distribution and personalization, to inventory and security controls, renewals, lost and stolen cards and card replacement. The company’s in-house, bilingual customer care is available 24/7/365 through live agents, interactive voice response (IVR), and two-way SMS alerts. For more than 20 years major pharmaceutical and healthcare companies and multinational enterprises have relied on Paysign to provide full-service programs tailored to their unique requirements. The Company has designed and launched prepaid card programs for corporate rewards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and copay assistance. Paysign’s expanded product offerings now include additional corporate incentive products and demand deposit accounts accessible with a debit card. |
Principles of Consolidation | Principles of Consolidation |
Reclassifications | Reclassifications |
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 a finite life are amortized on a straight-line basis over its estimated useful life. 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 3 to 5 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 The Company generates revenues from Plasma card programs through fees generated from cardholder fees and interchange fees. Revenues from Pharma card programs are generated through card program management fees, interchange fees, and settlement income. Plasma and Pharma card program revenues include both fixed and variable components. Our cardholder fees represent an obligation to the cardholder based on a per transaction basis and recognized at a point in time when the performance obligation is fulfilled. Card program management fees include an obligation to our card program sponsors and are generally recognized when earned on a monthly basis and paid pursuant to the contract terms which are generally multi-year contracts. The Company uses the output method to recognize card program management fee revenue at the amount of consideration to which an entity has a right to invoice. The services are transferred to the customer when the performance obligation is completed which the Company determined to be monthly. Interchange fees are earned when customer-issued cards are processed through card payment networks as the nature of our promise to the customer is that we stand ready to process transactions at the customer’s requests on a daily basis over the contract term. Since the timing and quantity of transactions to be processed by us is not determinable, we view interchange fees to comprise an obligation to stand ready to process as many transactions as the customer requests. Accordingly, the promise to stand ready is accounted for as a single series performance obligation. The Company uses the right to invoice practical expedient and recognizes interchange fee revenue concurrent with the processing of card transactions. Interchange fees are settled in accordance with the card payment network terms and condition. Prior to September 30, 2020, settlement income from Pharma programs was recognized and recorded, after giving consideration to any revenue constraints, ratably throughout the program lifecycle based on the Company’s estimate of the unspent balances to be remaining on the card at program expiration. During 2020, the Company observed substantially different performance indicators, current trends in the industry regarding program management by third parties, and new information available in dollar loads and spending patterns compared to historical experience. As a result, the Company changed its estimate of breakage for recognizing settlement income for Pharma programs resulting in the Company constraining revenue on all Pharma programs in accordance with applicable accounting guidance. Based on the change in facts and circumstances during 2020, the Company now utilizes the remote method of revenue recognition for settlement income whereby the unspent balances will be recognized as revenue at the expiration of the cards and the respective program. 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, and the Company does not currently have any obligations for disputed claim settlements. Given the nature of the Company’s services and contracts, it has no contract assets. Cost of revenues is comprised of transaction processing fees, data connectivity and data center expenses, network fees, bank fees, card production and postage costs, customer service, program management, application integration setup, and sales and commission expense. |
Operating leases | Operating leases In determining the present value of lease payments at lease commencement date, the Company utilizes its incremental borrowing rate based on the information available, unless the rate implicit in the lease is readily determinable. The liability for operating leases is based on the present value of future lease payments. Operating lease expenses are recorded as rent expense, which is included within selling, general and administrative expenses within the consolidated statements of operations and presented as operating cash outflows within the consolidated statements of cash flows. |
Stock-Based Compensation | Stock-Based Compensation |
New Accounting Pronouncements | New Accounting Pronouncements Simplifying the Accounting for Income Taxes |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Schedule of fixed assets September 30, December 31, Equipment $ 2,082,533 $ 1,888,640 Software 257,610 200,282 Furniture and fixtures 757,662 752,212 Website costs 68,971 67,816 Leasehold improvements 229,772 203,488 3,396,548 3,112,438 Less: accumulated depreciation 1,662,695 1,263,274 Fixed assets, net $ 1,733,853 $ 1,849,164 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Schedule of intangible assets September 30, December 31, Platform $ 9,279,844 $ 7,478,419 Customer lists and contracts 1,177,200 1,177,200 Licenses 209,282 234,282 Trademarks 38,186 38,186 10,704,512 8,928,087 Less: accumulated amortization 6,667,293 5,229,054 Intangible assets, net $ 4,037,219 $ 3,699,033 |
LEASE (Tables)
LEASE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of operating lease liabilities | Schedule of operating lease liabilities 2022 $ 571,968 2023 571,968 2024 571,968 2025 594,847 2026 640,604 Thereafter 2,348,882 Total lease payments 5,300,237 Less: Imputed interest (1,204,672 ) Present value of future lease payments 4,095,565 Less: current portion of lease liability (335,357 ) Long-term portion of lease liability $ 3,760,208 |
CUSTOMER CARD FUNDING LIABILI_2
CUSTOMER CARD FUNDING LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contract liabilities | Schedule of contract liabilities Nine Months Ended September 30, 2021 2020 Beginning balance $ 48,100,951 $ 32,723,227 Increase (decrease), net 15,159,540 15,291,372 Ending balance $ 63,260,491 $ 48,014,599 |
BASIC AND FULLY DILUTED NET L_2
BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | Computation of earnings per share Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net loss $ (271,006 ) $ (6,152,135 ) $ (2,826,500 ) $ (4,830,404 ) Denominator: Weighted average common shares: Denominator for basic calculation 51,154,725 49,433,473 50,754,652 49,055,492 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) – – – – Unvested restricted stock grants – – – – Denominator for fully diluted calculation 51,154,725 49,433,473 50,754,652 49,055,492 Net loss per common share: Basic $ (0.01 ) $ (0.12 ) $ (0.06 ) $ (0.10 ) Fully diluted $ (0.01 ) $ (0.12 ) $ (0.06 ) $ (0.10 ) |
FIXED ASSETS, NET (Details)
FIXED ASSETS, NET (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Fixed Assets Gross | $ 3,396,548 | $ 3,112,438 |
Less: accumulated depreciation | 1,662,695 | 1,263,274 |
Fixed assets, net | 1,733,853 | 1,849,164 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets Gross | 2,082,533 | 1,888,640 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets Gross | 257,610 | 200,282 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets Gross | 757,662 | 752,212 |
Website Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets Gross | 68,971 | 67,816 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets Gross | $ 229,772 | $ 203,488 |
FIXED ASSETS, NET (Details Narr
FIXED ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 134,296 | $ 115,778 | $ 399,421 | $ 311,039 |
Loss on abandonment of assets | $ 0 | $ 0 | $ 0 | $ 42,898 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 10,704,512 | $ 8,928,087 |
Less: accumulated amortization | 6,667,293 | 5,229,054 |
Intangible assets, net | 4,037,219 | 3,699,033 |
Platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | 9,279,844 | 7,478,419 |
Customer lists and contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | 1,177,200 | 1,177,200 |
Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | 209,282 | 234,282 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 38,186 | $ 38,186 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 494,028 | $ 422,014 | $ 1,438,933 | $ 1,235,606 |
Impairment of intangible asset | $ 0 | $ 382,414 | $ 0 | $ 382,414 |
LEASE (Details)
LEASE (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 571,968 | |
2023 | 571,968 | |
2024 | 571,968 | |
2025 | 594,847 | |
2026 | 640,604 | |
Thereafter | 2,348,882 | |
Total lease payments | 5,300,237 | |
Less: Imputed interest | 1,204,672 | |
Present value of future lease payments | 4,095,565 | |
Less: current portion of lease liability | (335,357) | $ (320,636) |
Long-term portion of lease liability | $ 3,760,208 | $ 4,013,598 |
LEASE (Details Narrative)
LEASE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Lease term | 10 years | 10 years | ||
Lease term option to extend | two optional extensions of five years each. | |||
Remaining lease term | 8 years 8 months 12 days | 8 years 8 months 12 days | ||
Discount rate | 6.00% | 6.00% | ||
Operating lease cost | $ 189,950 | $ 218,412 | $ 614,150 | $ 278,302 |
Cash paid for operating lease | $ 142,992 | $ 132,992 | $ 428,972 | 323,648 |
Short-term lease cost | $ 143,768 |
CUSTOMER CARD FUNDING LIABILI_3
CUSTOMER CARD FUNDING LIABILITY (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities, beginning balance | $ 48,100,951 | $ 32,723,227 |
Increase (decrease) in contract liabilities | 15,159,540 | 15,291,372 |
Contract liabilities, ending balance | $ 63,260,491 | $ 48,014,599 |
CUSTOMER CARD FUNDING LIABILI_4
CUSTOMER CARD FUNDING LIABILITY (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized in current year previously included in contract liabilities | $ 1,023,055 | $ 844,514 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Noncash Expense | $ 603,591 | $ 798,849 | $ 1,780,726 | $ 2,123,807 |
[custom:StockIssuedForVestedStockAwardsAndExerciseOfStockOptionsShares] | 493,000 | 515,200 | 1,384,775 | 1,291,195 |
[custom:ProceedsFormVestedStockAwardsAndStockOptions] | $ 72,000 | $ 139,680 | $ 192,141 | $ 163,680 |
Customer lists and contracts [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period, Shares, Purchase of Assets | 20,000 | |||
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 500,000 |
BASIC AND FULLY DILUTED NET L_3
BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||||||
Net loss | $ (271,006) | $ (931,967) | $ (1,623,527) | $ (6,152,135) | $ (219,234) | $ 1,540,965 | $ (2,826,500) | $ (4,830,404) |
Weighted average common shares: | ||||||||
Denominator for basic calculation | 51,154,725 | 49,433,473 | 50,754,652 | 49,055,492 | ||||
Weighted average effects of potentially diluted common stock: | ||||||||
Stock options (calculated using the treasury method) | 0 | 0 | 0 | 0 | ||||
Unvested restricted stock grants | 0 | 0 | 0 | 0 | ||||
Denominator for fully diluted calculation | 51,154,725 | 49,433,473 | 50,754,652 | 49,055,492 | ||||
Basic | $ (0.01) | $ (0.12) | $ (0.06) | $ (0.10) | ||||
Fully diluted | $ (0.01) | $ (0.12) | $ (0.06) | $ (0.10) |
BASIC AND FULLY DILUTED NET L_4
BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common share equivalents excluded from computation | 1,923,200 | 2,746,400 | 1,923,200 | 2,746,400 |
Unvested Restricted Stock Awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common share equivalents excluded from computation | 1,530,000 | 3,075,500 | 1,530,000 | 3,075,500 |
RELATED PARTY (Details Narrativ
RELATED PARTY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transactions [Abstract] | ||||
Legal fees paid to related party | $ 28,366 | $ 429,380 | $ 439,250 | $ 544,868 |
INCOME TAX BENEFIT (Details Nar
INCOME TAX BENEFIT (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 0.00% | 26.90% | (0.10%) | 36.50% |