PaySign (PAYS) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
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		52,753,374

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 7,670,677	$ 9,708,238
Restricted cash	78,365,845	80,189,113
Accounts receivable, net	7,749,451	4,680,991
Other receivables	1,238,020	1,439,251
Prepaid expenses and other current assets	2,290,792	1,699,808
Total current assets	97,314,785	97,717,401
Fixed assets, net	1,124,242	1,255,292
Intangible assets, net	6,998,727	5,656,722
Operating lease right-of-use asset	3,417,635	3,614,838
Total assets	108,855,389	108,244,253
Current liabilities
Accounts payable and accrued liabilities	10,484,747	8,088,660
Operating lease liability, current portion	372,387	361,408
Customer card funding	78,365,845	80,189,113
Total current liabilities	89,222,979	88,639,181
Operating lease liability, long term portion	3,122,798	3,311,777
Total liabilities	92,345,777	91,950,958
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; 52,842,382 and 52,650,382 issued at June 30, 2023 and December 31, 2022, respectively	52,842	52,650
Additional paid-in capital	20,595,359	19,137,281
Treasury stock, at cost; 623,008 and 303,450 shares, respectively	(1,127,667)	(150,000)
Accumulated deficit	(3,010,922)	(2,746,636)
Total stockholders' equity	16,509,612	16,293,295
Total liabilities and stockholders' equity	$ 108,855,389	$ 108,244,253

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
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	52,842,382	52,650,382
Treasury stock shares	623,008	303,450

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues
Total revenues	$ 11,041,051	$ 8,598,776	$ 21,184,341	$ 16,819,415
Cost of revenues	5,425,311	3,900,965	10,520,932	7,123,355
Gross profit	5,615,740	4,697,811	10,663,409	9,696,060
Operating expenses
Selling, general and administrative	5,304,625	4,255,976	10,250,075	8,896,888
Depreciation and amortization	958,001	713,180	1,803,017	1,392,351
Total operating expenses	6,262,626	4,969,156	12,053,092	10,289,239
Loss from operations	(646,886)	(271,345)	(1,389,683)	(593,179)
Other income
Interest income, net	600,867	70,227	1,185,064	84,563
Loss before income tax provision	(46,019)	(201,118)	(204,619)	(508,616)
Income tax provision	58,137	26,916	59,667	28,813
Net loss	$ (104,156)	$ (228,034)	$ (264,286)	$ (537,429)
Basic	$ 0	$ 0	$ (0.01)	$ (0.01)
Diluted	$ 0	$ 0	$ (0.01)	$ (0.01)
Weighted average common shares
Basic	52,259,002	51,993,031	52,330,829	51,906,335
Diluted	52,259,002	51,993,031	52,330,829	51,906,335
Plasma Industry [Member]
Revenues
Total revenues	$ 10,014,461	$ 7,806,201	$ 19,374,528	$ 15,200,565
Pharmaceutical Industry [Member]
Revenues
Total revenues	729,236	773,311	1,318,798	1,579,879
Other Revenue [Member]
Revenues
Total revenues	$ 297,354	$ 19,264	$ 491,015	$ 38,971

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2021	$ 52,095	$ 16,860,119	$ (150,000)	$ (3,774,411)	$ 12,987,803
Beginning balance, shares at Dec. 31, 2021	52,095,382		(303,450)
Stock issued upon vesting of restricted stock	$ 123	(123)
Stock issued upon vesting of restricted stock, shares	123,000
Stock-based compensation		569,502			569,502
Net loss				(309,395)	(309,395)
Ending balance, value at Mar. 31, 2022	$ 52,218	17,429,498	$ (150,000)	(4,083,806)	13,247,910
Ending balance, shares at Mar. 31, 2022	52,218,382		(303,450)
Beginning balance, value at Dec. 31, 2021	$ 52,095	16,860,119	$ (150,000)	(3,774,411)	12,987,803
Beginning balance, shares at Dec. 31, 2021	52,095,382		(303,450)
Net loss					(537,429)
Ending balance, value at Jun. 30, 2022	$ 52,323	17,917,680	$ (150,000)	(4,311,840)	13,508,163
Ending balance, shares at Jun. 30, 2022	52,323,382		(303,450)
Beginning balance, value at Mar. 31, 2022	$ 52,218	17,429,498	$ (150,000)	(4,083,806)	13,247,910
Beginning balance, shares at Mar. 31, 2022	52,218,382		(303,450)
Stock issued upon vesting of restricted stock	$ 105	(105)
Stock issued upon vesting of restricted stock, shares	105,000
Stock-based compensation		488,287			488,287
Net loss				(228,034)	(228,034)
Ending balance, value at Jun. 30, 2022	$ 52,323	17,917,680	$ (150,000)	(4,311,840)	13,508,163
Ending balance, shares at Jun. 30, 2022	52,323,382		(303,450)
Beginning balance, value at Dec. 31, 2022	$ 52,650	19,137,281	$ (150,000)	(2,746,636)	16,293,295
Beginning balance, shares at Dec. 31, 2022	52,650,382		(303,450)
Stock issued upon vesting of restricted stock	$ 118	(118)
Stock issued upon vesting of restricted stock, shares	118,000
Stock-based compensation		618,244			618,244
Repurchase of common stock			$ (666,018)		(666,018)
Repurchase of common stock, shares			(200,000)
Net loss				(160,130)	(160,130)
Ending balance, value at Mar. 31, 2023	$ 52,768	19,755,407	$ (816,018)	(2,906,766)	16,085,391
Ending balance, shares at Mar. 31, 2023	52,768,382		(503,450)
Beginning balance, value at Dec. 31, 2022	$ 52,650	19,137,281	$ (150,000)	(2,746,636)	16,293,295
Beginning balance, shares at Dec. 31, 2022	52,650,382		(303,450)
Net loss					(264,286)
Ending balance, value at Jun. 30, 2023	$ 52,842	20,595,359	$ (1,127,667)	(3,010,922)	16,509,612
Ending balance, shares at Jun. 30, 2023	52,842,382		(623,008)
Beginning balance, value at Mar. 31, 2023	$ 52,768	19,755,407	$ (816,018)	(2,906,766)	16,085,391
Beginning balance, shares at Mar. 31, 2023	52,768,382		(503,450)
Stock issued upon vesting of restricted stock	$ 70	(70)
Stock issued upon vesting of restricted stock, shares	70,000
Exercise of stock options	$ 4	9,596			9,600
Exercise of stock options, shares	4,000
Stock-based compensation		830,426			830,426
Repurchase of common stock			$ (311,649)		(311,649)
Repurchase of common stock, shares			(119,558)
Net loss				(104,156)	(104,156)
Ending balance, value at Jun. 30, 2023	$ 52,842	$ 20,595,359	$ (1,127,667)	$ (3,010,922)	$ 16,509,612
Ending balance, shares at Jun. 30, 2023	52,842,382		(623,008)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (264,286)	$ (537,429)
Adjustments to reconcile net loss to net cash provided by operating activities:
Gain on disposal assets	(4,862)	0
Stock-based compensation expense	1,448,670	1,057,789
Depreciation and amortization	1,803,017	1,392,351
Noncash lease expense	197,203	186,862
Changes in operating assets and liabilities:
Accounts receivable	(3,068,460)	(94,819)
Other receivable	201,231	(420,033)
Prepaid expenses and other current assets	(590,984)	(511,173)
Accounts payable and accrued liabilities	2,431,087	(190,359)
Operating lease liability	(178,000)	(167,660)
Customer card funding	(1,823,268)	15,683,936
Net cash provided by operating activities	151,348	16,399,465
Cash flows from investing activities:
Purchase of fixed assets	(84,911)	(38,188)
Capitalization of internally developed software	(2,959,199)	(1,537,021)
Net cash used in investing activities	(3,044,110)	(1,575,209)
Cash flows from financing activities:
Proceeds from exercise of options	9,600	0
Repurchase of common stock	(977,667)	0
Net cash used in financing activities	(968,067)	0
Net change in cash and restricted cash	(3,860,829)	14,824,256
Cash and restricted cash, beginning of period	89,897,351	68,671,070
Cash and restricted cash, end of period	86,036,522	83,495,326
Cash and restricted cash reconciliation:
Cash	7,670,677	6,527,476
Restricted cash	78,365,845	76,967,850
Total cash and restricted cash	86,036,522	83,495,326
Non-cash financing activities
Cash paid for taxes	159,510	8,700
Interest paid	$ 0	$ 821

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	6 Months Ended
	Jun. 30, 2023
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, 2022. 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 six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” “we” or “our”) was incorporated on August 24, 1995, and trades under the symbol PAYS on The Nasdaq Stock Market LLC. Paysign 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. Headquartered in Nevada, the company creates customized, innovative payment solutions for clients across all industries, including pharmaceutical, healthcare, hospitality and retail. Principles of Consolidation Use of Estimates Cash and Cash Equivalents no Restricted Cash Concentrations of Credit Risk 38,206,698 43,516,155 As of June 30, 2023, the Company also has a concentration of accounts receivable risk, as two pharma program customers associated with our pharma patient affordability programs each individually represent 35 14 35 24 Fixed Assets 3 to 10 years 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, which is generally 3 to 15 years 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 year estimated useful life Contract Assets - three to five years Customer Card Funding 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, transaction claims processing fees, interchange fees, and settlement income. Plasma and pharma card program revenues include both fixed and variable components. Cardholder fees represent an obligation to the cardholder based on a per transaction basis and are recognized at a point in time when the performance obligation is fulfilled. Card program management fees and transaction claims processing fees include an obligation to our card program sponsors and are generally recognized when earned on a monthly basis and are typically due within 30 days 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 performance obligation is satisfied when the services are transferred to the customer which the Company determined to be monthly, as the customer simultaneously receives and consumes the benefit from the Company’s performance. 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 are 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 conditions, which is typically within a few days. The Company 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. This has historically been associated with the pharma prepaid business which ended in 2022. 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 to refund 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, generally 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. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with lease expenses for these leases recognized on a straight-line basis over the lease term. Stock-Based Compensation Recently Adopted Accounting Pronouncements Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Codification Improvements to Topic 326, Financial Instruments–Credit Losses, Financial Instruments—Credit Losses: Troubled Debt Restructurings and Vintage Disclosures

FIXED ASSETS, NET

FIXED ASSETS, NET	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
FIXED ASSETS, NET	2. FIXED ASSETS, NET Fixed assets consist of the following: Schedule of fixed assets June 30, December 31, Equipment $ 2,241,935 $ 2,161,424 Software 331,852 327,452 Furniture and fixtures 757,662 757,661 Website costs 69,881 69,881 Leasehold improvements 229,772 229,772 3,631,102 3,546,190 Less: accumulated depreciation 2,506,860 2,290,898 Fixed assets, net $ 1,124,242 $ 1,255,292 Depreciation expense for the three months ended June 30, 2023 and 2022 was $ 107,615 134,253 215,961 270,222

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	3. INTANGIBLE ASSETS, NET Intangible assets consist of the following: Schedule of intangible assets June 30, 2023 December 31, Patents and trademarks $ 38,186 $ 38,186 Platform 16,571,814 13,656,014 Customer lists and contracts 1,177,200 1,177,200 Licenses 209,282 209,282 Hosting implementation 43,400 – Contract assets 150,000 185,000 18,189,882 15,265,682 Less: accumulated amortization 11,191,155 9,608,960 Intangible assets, net $ 6,998,727 $ 5,656,722 Intangible assets are amortized over their useful lives ranging from periods of 3 to 15 years 850,386 578,927 1,587,056 1,122,129

LEASE

LEASE	6 Months Ended
	Jun. 30, 2023
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 6.91 6 Operating lease cost included in selling, general and administrative expenses was $ 196,214 379,435 184,329 367,550 The following is the lease maturity analysis of our operating lease as of June 30, 2023: Year ending December 31, Schedule of operating lease maturities 2023 (excluding the six months ended June 30, 2023) $ 285,984 2024 571,968 2025 612,006 2026 640,604 2027 640,604 Thereafter 1,548,127 Total lease payments 4,299,293 Less: Imputed interest (804,108 ) Present value of future lease payments 3,495,185 Less: current portion of lease liability (372,387 ) Long-term portion of lease liability $ 3,122,798

CUSTOMER CARD FUNDING LIABILITY

CUSTOMER CARD FUNDING LIABILITY	6 Months Ended
	Jun. 30, 2023
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 Six Months Ended June 30, 2023 2022 Beginning balance $ 80,189,113 $ 61,283,914 Decrease, net (1,823,268 ) 15,683,936 Ending balance $ 78,365,845 $ 76,967,850 The amount of revenue recognized during the six months ended June 30, 2023 and 2022 that was included in the opening contract liability for prepaid cards was $ 2,020,224 1,485,005

COMMON STOCK

COMMON STOCK	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
COMMON STOCK	6. COMMON STOCK At June 30, 2023, the Company's authorized capital stock was 150,000,000 0.001 25,000,000 0.001 52,842,382 52,219,374 no Stock-based compensation expense related to Company grants for the three and six months ended June 30, 2023 was $ 830,426 1,448,670 488,287 1,057,789 2023 Transactions: 74,000 192,000 9,600 During the three and six months ended June 30, 2023 the Company repurchased 119,558 319,558 311,649 977,667 The Company also granted 80,000 350,000 2022 Transactions: 105,000 228,000 0 0 The Company also granted 0 100,000

BASIC AND FULLY DILUTED NET LOS

BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2023
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 three and six months ended June 30, 2023 and 2022: Schedule of computation of earnings per share Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net loss $ (104,156 ) $ (228,034 ) $ (264,286 ) $ (537,429 ) Denominator: Weighted average common shares: Denominator for basic calculation 52,259,002 51,993,031 52,330,829 51,906,335 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) – – – – Unvested restricted stock grants – – – – Denominator for fully diluted calculation 52,259,002 51,993,031 52,330,829 51,906,335 Net loss per common share: Basic $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Fully diluted $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Anti-dilutive shares: Stock options 1,815,000 1,884,400 1,815,000 1,884,400 Unvested restricted stock options 3,652,000 1,064,000 3,652,000 1,064,000 The potential common share equivalents are not added to the denominator for three and six months ended June 30, 2023 and 2022 because the inclusion was anti-dilutive, and therefore, all such shares were excluded from the computation of diluted weighted average shares outstanding for both periods.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
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. On February 9, 2023, the Court granted in part and denied in part Defendants’ Motion to Dismiss. As of the date of this filing, the Company cannot give any meaningful estimate of likely outcome or damages. The Company has also been named as a nominal defendant in two stockholder derivative actions in the United States District Court for the District of Nevada. The first derivative action is entitled Andrzej Toczek, derivatively on behalf of Paysign, Inc. v. Mark R. Newcomer, et al. and was 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 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. The second derivative action is entitled John K. Gray, derivatively on behalf of Paysign, Inc. v. Mark Attinger, et al. and was filed on May 9, 2022. This action involves the same alleged conduct raised in the Toczek action and asserts claims for breach of fiduciary duty in connection with financial reporting, breach of fiduciary duty in connection with alleged insider trading against certain individual defendants, and unjust enrichment. On June 3, 2022, 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. On May 10, 2023, the Toczek and Gray actions were consolidated. The Company anticipates filing motions to dismiss given the ruling on the Motion to Dismiss in the consolidated cases. As of the date of this filing, the Company cannot give any meaningful estimate of likely outcome or damages.

RELATED PARTY

RELATED PARTY	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY	9. RELATED PARTY A former member of our Board of Directors who served through December 31, 2022 is also a partner in a law firm that the Company engages for services to review regulatory filings and for various other legal matters. During the three and six months ended June 30, 2022, the Company incurred legal expenses of $ 41,019 81,753

INCOME TAX

INCOME TAX	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAX	10. INCOME TAX The effective tax rate (income tax provision as a percentage of loss before income tax provision) was ( 126.3 13.4 29.2 5.7 Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law in 2020 and the subsequent extension of the CARES Act through September 30, 2021, the Company was eligible for a refundable employee retention credit subject to certain criteria. The Company has elected an accounting policy to recognize the government assistance when it is probable that the Company is eligible to receive the assistance and present the credit as a reduction of the related expense. As of June 30, 2023 and December 31, 2022, the Company recorded $ 836,734 1,296,488

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
About Paysign, Inc.	About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” “we” or “our”) was incorporated on August 24, 1995, and trades under the symbol PAYS on The Nasdaq Stock Market LLC. Paysign 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. Headquartered in Nevada, the company creates customized, innovative payment solutions for clients across all industries, including pharmaceutical, healthcare, hospitality and retail.
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents no
Restricted Cash	Restricted Cash
Concentrations of Credit Risk	Concentrations of Credit Risk 38,206,698 43,516,155 As of June 30, 2023, the Company also has a concentration of accounts receivable risk, as two pharma program customers associated with our pharma patient affordability programs each individually represent 35 14 35 24
Fixed Assets	Fixed Assets 3 to 10 years 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, which is generally 3 to 15 years 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 year estimated useful life Contract Assets - three to five years
Customer Card Funding	Customer Card Funding
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, transaction claims processing fees, interchange fees, and settlement income. Plasma and pharma card program revenues include both fixed and variable components. Cardholder fees represent an obligation to the cardholder based on a per transaction basis and are recognized at a point in time when the performance obligation is fulfilled. Card program management fees and transaction claims processing fees include an obligation to our card program sponsors and are generally recognized when earned on a monthly basis and are typically due within 30 days 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 performance obligation is satisfied when the services are transferred to the customer which the Company determined to be monthly, as the customer simultaneously receives and consumes the benefit from the Company’s performance. 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 are 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 conditions, which is typically within a few days. The Company 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. This has historically been associated with the pharma prepaid business which ended in 2022. 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 to refund 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, generally 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. Leases with an initial term of 12 months or less are not recorded on the balance sheet, with lease expenses for these leases recognized on a straight-line basis over the lease term.
Stock-Based Compensation	Stock-Based Compensation
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Codification Improvements to Topic 326, Financial Instruments–Credit Losses, Financial Instruments—Credit Losses: Troubled Debt Restructurings and Vintage Disclosures

FIXED ASSETS, NET (Tables)

FIXED ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of fixed assets	Schedule of fixed assets June 30, December 31, Equipment $ 2,241,935 $ 2,161,424 Software 331,852 327,452 Furniture and fixtures 757,662 757,661 Website costs 69,881 69,881 Leasehold improvements 229,772 229,772 3,631,102 3,546,190 Less: accumulated depreciation 2,506,860 2,290,898 Fixed assets, net $ 1,124,242 $ 1,255,292

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Schedule of intangible assets June 30, 2023 December 31, Patents and trademarks $ 38,186 $ 38,186 Platform 16,571,814 13,656,014 Customer lists and contracts 1,177,200 1,177,200 Licenses 209,282 209,282 Hosting implementation 43,400 – Contract assets 150,000 185,000 18,189,882 15,265,682 Less: accumulated amortization 11,191,155 9,608,960 Intangible assets, net $ 6,998,727 $ 5,656,722

LEASE (Tables)

LEASE (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of operating lease maturities	Schedule of operating lease maturities 2023 (excluding the six months ended June 30, 2023) $ 285,984 2024 571,968 2025 612,006 2026 640,604 2027 640,604 Thereafter 1,548,127 Total lease payments 4,299,293 Less: Imputed interest (804,108 ) Present value of future lease payments 3,495,185 Less: current portion of lease liability (372,387 ) Long-term portion of lease liability $ 3,122,798

CUSTOMER CARD FUNDING LIABILI_2

CUSTOMER CARD FUNDING LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of contract liabilities	Schedule of contract liabilities Six Months Ended June 30, 2023 2022 Beginning balance $ 80,189,113 $ 61,283,914 Decrease, net (1,823,268 ) 15,683,936 Ending balance $ 78,365,845 $ 76,967,850

BASIC AND FULLY DILUTED NET L_2

BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of computation of earnings per share	Schedule of computation of earnings per share Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net loss $ (104,156 ) $ (228,034 ) $ (264,286 ) $ (537,429 ) Denominator: Weighted average common shares: Denominator for basic calculation 52,259,002 51,993,031 52,330,829 51,906,335 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) – – – – Unvested restricted stock grants – – – – Denominator for fully diluted calculation 52,259,002 51,993,031 52,330,829 51,906,335 Net loss per common share: Basic $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Fully diluted $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.01 ) Anti-dilutive shares: Stock options 1,815,000 1,884,400 1,815,000 1,884,400 Unvested restricted stock options 3,652,000 1,064,000 3,652,000 1,064,000

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Product Information [Line Items]
Cash equivalents	$ 0	$ 0
Uninsured cash	$ 38,206,698	$ 43,516,155
Property plant and equipment estimated useful lives	3 to 10 years
Intangible Assets [Member]
Product Information [Line Items]
Finite lived intangible asset useful life	3 to 15 years
Computer Software [Member]
Product Information [Line Items]
Finite lived intangible asset useful life	three year estimated useful life
Contract Assets [Member]
Product Information [Line Items]
Finite lived intangible asset useful life	three to five years
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage	35%	35%
Another Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Concentration Risk, Percentage	14%	24%

FIXED ASSETS, NET (Details)

FIXED ASSETS, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 3,631,102	$ 3,546,190
Less: accumulated depreciation	2,506,860	2,290,898
Property plant and equipment, net	1,124,242	1,255,292
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	2,241,935	2,161,424
Software Development [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	331,852	327,452
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	757,662	757,661
Website Costs [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	69,881	69,881
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, gross	$ 229,772	$ 229,772

FIXED ASSETS, NET (Details Narr

FIXED ASSETS, NET (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 107,615	$ 134,253	$ 215,961	$ 270,222

INTANGIBLE ASSETS, NET (Details

INTANGIBLE ASSETS, NET (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 18,189,882	$ 15,265,682
Less: accumulated amortization	11,191,155	9,608,960
Intangible assets, net	6,998,727	5,656,722
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	38,186	38,186
Platform [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	16,571,814	13,656,014
Customer Lists And Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	1,177,200	1,177,200
Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	209,282	209,282
Hosting Implementation [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	43,400	0
Contract Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 150,000	$ 185,000

INTANGIBLE ASSETS, NET (Detai_2

INTANGIBLE ASSETS, NET (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 850,386	$ 578,927	$ 1,587,056	$ 1,122,129
Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life			3 to 15 years

LEASE (Details)

LEASE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
2023 (excluding the six months ended June 30, 2023)	$ 285,984
2024	571,968
2025	612,006
2026	640,604
2027	640,604
Thereafter	1,548,127
Total lease payments	4,299,293
Less: Imputed interest	(804,108)
Present value of future lease payments	3,495,185
Less: current portion of lease liability	(372,387)	$ (361,408)
Long-term portion of lease liability	$ 3,122,798	$ 3,311,777

LEASE (Details Narrative)

LEASE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Lease term	10 years		10 years
Lease term option to extend			two optional extensions of five years each
Remaining lease term	6 years 10 months 28 days		6 years 10 months 28 days
Discount rate	6%		6%
Operating lease cost	$ 196,214	$ 184,329	$ 379,435	$ 367,550

CUSTOMER CARD FUNDING LIABILI_3

CUSTOMER CARD FUNDING LIABILITY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Beginning balance	$ 80,189,113	$ 61,283,914
Decrease, net	(1,823,268)	15,683,936
Ending balance	$ 78,365,845	$ 76,967,850

CUSTOMER CARD FUNDING LIABILI_4

CUSTOMER CARD FUNDING LIABILITY (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized in current year previously included in contract liabilities	$ 2,020,224	$ 1,485,005

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Class of Stock [Line Items]
Common Stock Shares Authorized	150,000,000		150,000,000		150,000,000
Common Stock Par or Stated Value Per Share	$ 0.001		$ 0.001		$ 0.001
Preferred Stock Shares Authorized	25,000,000		25,000,000		25,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001		$ 0.001		$ 0.001
Common Stock Shares, Issued	52,842,382		52,842,382		52,650,382
Common Stock Shares Outstanding	52,219,374		52,219,374
Common Stock Shares Outstanding	0		0		0
Stock-based compensation expense	$ 830,426	$ 488,287	$ 1,448,670	$ 1,057,789
Number of shares repurchased			$ 977,667	$ 0
Restricted stock shares	80,000	0	350,000	100,000
Common Stock [Member]
Class of Stock [Line Items]
Number of shares repurchased	119,558		319,558
Number of shares repurchased	$ 311,649		$ 977,667
Vested Stock Awards [Member]
Class of Stock [Line Items]
Number of shares vested	74,000	105,000	192,000	228,000
Proceeds From Exercise Stock Options			$ 9,600
Restricted Stock Awards [Member]
Class of Stock [Line Items]
Proceeds From Vested Stock Awards And Stock Options		$ 0		$ 0

BASIC AND FULLY DILUTED NET L_3

BASIC AND FULLY DILUTED NET LOSS PER COMMON SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net loss	$ (104,156)	$ (228,034)	$ (264,286)	$ (537,429)
Weighted average common shares:
Denominator for basic calculation	52,259,002	51,993,031	52,330,829	51,906,335
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	52,259,002	51,993,031	52,330,829	51,906,335
Net loss per common share:
Basic	$ 0	$ 0	$ (0.01)	$ (0.01)
Fully diluted	$ 0	$ 0	$ (0.01)	$ (0.01)
Anti-dilutive shares:
Stock options	1,815,000	1,884,400	1,815,000	1,884,400
Unvested restricted stock options	3,652,000	1,064,000	3,652,000	1,064,000

RELATED PARTY (Details Narrativ

RELATED PARTY (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Related Party Law Firm [Member]
Related Party Transaction [Line Items]
Legal Fees	$ 41,019	$ 81,753

INCOME TAX (Details Narrative)

INCOME TAX (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Effective income tax rate	126.30%	13.40%	29.20%	5.70%
Other receivables	$ 1,238,020		$ 1,238,020		$ 1,439,251
U S Federal Government [Member]
Other receivables	$ 836,734		$ 836,734		$ 1,296,488