CardConnect (CCN) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 11, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	CardConnect Corp.
Entity Central Index Key	1,614,818
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,751,331

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 9,624,317	$ 3,574,661
Restricted cash	5,678,308	1,603,783
Accounts receivable	19,931,120	15,670,324
Processing assets	7,217,647	6,929,522
Other receivables	1,374,812	1,659,588
Related-party receivables	125,663	145,367
Prepaid income taxes		168,522
Other prepaid expenses	1,261,309	542,827
Other current assets	1,872,397	1,248,805
Total current assets	47,085,573	31,543,399
Property and equipment, net	5,953,016	6,109,009
Other assets:
Long-term restricted cash	3,083,333
Long-term related-party receivables	184,795	4,140,000
Long-term other receivables	442,499	621,844
Goodwill	40,241,161	40,241,161
Intangible assets, net	59,673,941	63,013,832
Long-term other assets	890,993	242,373
Total assets	157,555,311	145,911,618
Current liabilities:
Accounts payable	2,942,232	2,897,056
Residuals payable	6,391,358	5,642,386
Processing liabilities	9,145,319	8,533,305
Settlement obligation	2,842,409	2,691,569
Accrued expenses	2,904,852	2,247,030
Income tax payable	525,865
Current portion of long-term debt	3,000,000
Deferred revenue	2,974,017	1,382,099
Total current liabilities	30,726,052	23,393,445
Long-term liabilities:
Accrued expenses	1,889,373	2,059,011
Long-term debt	129,144,041	59,964,989
Deferred tax liability	1,787,216	1,787,216
Total long-term liabilities	132,820,630	63,811,216
Total liabilities	163,546,682	87,204,661
Commitments and contingencies (Note 8)
CardConnect Corp. redeemable Series A Preferred Stock, par value $0.001, 5,000,000 shares authorized; 1,500,000 shares issued and outstanding; liquidation value of $37,595,333 at September 30, 2016, net of offering costs	36,929,603
Stockholders' equity:
Common stock, par value $0.0001; 200,000,000 shares authorized; 28,751,331 and 15,145,708 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	28,751	15,145
Additional paid-in capital	2,651,865	88,687,317
Accumulated deficit	(45,601,590)	(26,914,073)
Treasury stock of 681,538 common shares at December 31, 2015, at cost		(3,083,469)
Total stockholders' equity	(42,920,974)	58,706,957
Total liabilities and stockholders' equity	157,555,311	145,911,618
Preferred stock [Member]
Stockholders' equity:
FTS Holding Corporation Preferred Series A stock, par value $0.0001; 20,365,000 shares authorized; 20,364,981 shares issued and outstanding; liquidation value $48,611,210 at December 31, 2015
Preferred Series A stock [Member]
Stockholders' equity:
FTS Holding Corporation Preferred Series A stock, par value $0.0001; 20,365,000 shares authorized; 20,364,981 shares issued and outstanding; liquidation value $48,611,210 at December 31, 2015		2,037
Total stockholders' equity		$ 2,037

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	28,751,331	15,145,708
Common stock, shares outstanding	28,751,331	15,145,708
Treasury stock, shares		681,538
Preferred stock
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Redeemable Preferred Stock
Preferred stock, par value	$ 0.001	$ 0
Preferred stock, shares authorized	5,000,000	0
Preferred stock, shares issued	1,500,000	0
Preferred stock, shares outstanding	1,500,000	0
Preferred Stock, Liquidation Preference, Value	$ 37,595,333
Preferred Series A stock
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,365,000	20,365,000
Preferred stock, shares issued	20,364,981	20,364,981
Preferred stock, shares outstanding	20,364,981	20,364,981
Preferred Stock, Liquidation Preference, Value	$ 0	$ 48,611,210

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 154,031,109	$ 117,860,548	$ 432,484,905	$ 331,105,661
Cost of services (exclusive of depreciation and amortization shown separately below):
Interchange and pass-through	112,949,106	86,785,102	317,552,417	243,400,105
Other cost of services	23,428,462	18,660,872	67,251,017	51,267,988
Total cost of services	136,377,568	105,445,974	384,803,434	294,668,093
General and administrative	31,222,863	6,290,209	45,576,797	17,887,090
Depreciation	444,745	293,430	1,298,200	882,788
Amortization of intangibles	5,291,330	5,054,952	15,387,036	14,447,780
Total expenses	173,336,506	117,084,565	447,065,467	327,885,751
(Loss) income from operations	(19,305,397)	775,983	(14,580,562)	3,219,910
Other expense:
Interest expense, net	(1,764,711)	(274,150)	(2,636,908)	(844,308)
Other, net	(239,030)	(20,141)	(405,719)	(173,328)
Total other expense	(2,003,741)	(294,291)	(3,042,627)	(1,017,636)
(Loss) income before income tax provision	(21,309,138)	481,692	(17,623,189)	2,202,274
Provision for income taxes	(772,160)	(315,346)	(1,064,328)	(1,314,809)
Net (loss) income	(22,081,298)	166,346	(18,687,517)	887,465
Dividends on preferred stock	(666,667)		(666,667)
Net (loss) income available for common stockholders	$ (22,747,965)	$ 166,346	$ (19,354,184)	$ 887,465
(Loss) earnings per share available for common stockholders:
Basic	$ (0.93)	$ 0.01	$ (1.06)	$ 0.06
Diluted	$ (0.93)	$ 0.01	$ (1.06)	$ 0.05
Weighted-average common shares outstanding:
Basic	24,449,816	15,145,708	18,277,085	15,145,708
Diluted	24,449,816	16,720,871	18,277,085	16,720,871

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net (loss) income	$ (18,687,517)	$ 887,465
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	16,685,236	15,330,569
Stock-based compensation expense	3,788,400	1,384,693
Relocation loan forgiveness	228,843	148,267
Agent advance forgiveness		14,683
Amortization of debt issuance costs	191,182
Loss on disposal of assets	50,506
Changes in operating assets and liabilities:
Restricted cash	(324,525)	(78,514)
Accounts receivable	(4,260,796)	(92,669)
Processing assets	(288,125)
Other receivables	382,997	(235,663)
Other prepaid expenses	(718,482)	(218,891)
Other assets	(1,272,212)	(273,653)
Accounts payable	45,176	579,972
Residuals payable	748,972	(25,167)
Processing liabilities	612,014	78,514
Prepaid income taxes	694,387	1,221,567
Accrued expenses	488,184	(547,849)
Deferred revenue	1,591,918	712,770
Net cash (used in) provided by operating activities	(43,842)	18,886,094
Investing activities
Change in ISO advances	(73,876)	(266,406)
Purchases of property and equipment	(1,150,469)	(1,945,704)
Proceeds from sale of property and equipment	1,560
Purchases of merchant portfolios and residual buyouts	(9,528,500)	(6,731,396)
Consideration paid for service contracts		(100,000)
Advances to related parties	(295,000)	(260,800)
Repayment of related party loans	4,041,066
Additions to internally developed software	(2,407,449)	(2,059,085)
Net cash used in investing activities	(9,412,668)	(11,363,391)
Financing activities
Proceeds from redeemable preferred stock, net of offering costs	36,929,603
Deposits held in escrow	(7,500,000)
Release of deposits held in escrow	666,667
Cash received in connection with reverse acquisition	88,798,302
Proceeds from private placement of common stock, net of offering costs	4,400,959
Distribution to former stockholders in connection with reverse acquisition	(179,412,832)
Net change in settlement obligation	150,840
Borrowings on long-term debt	140,000,000	9,200,000
Payments on long-term debt	(61,964,989)	(7,000,000)
Debt issuance costs	(6,047,141)
Payment of preferred stock dividend	(666,667)
Purchase of treasury stock		(2,700,000)
Proceeds from stock options exercised	151,424
Payment of contingent consideration		(3,675,000)
Net cash provided by (used in) financing activities	15,506,166	(4,175,000)
Net increase in cash and cash equivalents	6,049,656	3,347,703
Cash and cash equivalents at beginning of year	3,574,661	1,157,567
Cash and cash equivalents at end of year	9,624,317	4,505,270
Supplemental disclosure of cash flow information:
Cash paid for interest	2,521,734	831,136
Cash paid for income taxes, net of refunds	380,000	90,226
Supplemental disclosure of non-cash investing and financing activity:
Change in ISO advances	(155,000)	(207,791)
Purchases of merchant portfolios and residual buyouts	155,000	207,791
Reclassification of preferred and treasury stock to capital in connection with reverse acquisition	$ 3,081,432

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($)	Total	Series A Preferred Stock [Member]	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock [Member]
Balance at Dec. 31, 2015	$ 58,706,957	$ 2,037	$ 15,145	$ 88,687,317	$ (26,914,073)	$ (3,083,469)
Balance, shares at Dec. 31, 2015		20,364,981	15,145,708
Effect of reverse acquisition		$ (2,037)		(3,081,432)		3,083,469
Effect of reverse acquisition, share		(20,364,981)
Distribution to former stockholders in connection with reverse acquisition	(179,412,832)			(179,412,832)
Shares issued in reverse acquisition	88,798,302		$ 13,121	88,785,181
Shares issued in reverse acquisition, shares			13,121,214
Sale of common stock in private placement, net of offering costs	4,400,959		$ 468	4,400,491
Sale of common stock in private placement, net of offering costs, shares			467,647
Stock-based compensation	3,788,400			3,788,400
Exercise of stock options	151,424		$ 17	151,407
Exercise of stock options, shares			16,762
Payment of preferred stock dividend	(666,667)			(666,667)
Net loss	(18,687,517)				(18,687,517)
Balance at Sep. 30, 2016	$ (42,920,974)		$ 28,751	$ 2,651,865	$ (45,601,590)
Balances, shares at Sep. 30, 2016			28,751,331

Company Description, Operations

Company Description, Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Company Description, Operations and Basis of Presentation [Abstract]
Company Description, Operations and Basis of Presentation	1. Company Description, Operations and Basis of Presentation Company Description and Operations CardConnect Corp. (f/k/a FinTech Acquisition Corp.) (“CardConnect” or the “Company”) is a holding company that does not have any operations or material assets other than the direct ownership of CardConnect, LLC. Prior to January 14, 2015, CardConnect, LLC’s legal name was Financial Transaction Services, LLC, which had been doing business as CardConnect since April 2013. CardConnect, LLC, a Delaware limited liability company, is a provider of card-based payment processing services. CardConnect, LLC facilitates the exchange of information and funds between merchants’ and cardholders’ financial institutions by providing electronic payment processing services to merchants, including transaction authorization and electronic draft capture, transaction clearing and settlement, merchant accounting and support, and risk management. CardConnect, LLC also offers a broad range of technology solutions, including software, services and peripherals. The Company was originally incorporated in Delaware in November 2013 as a special purpose acquisition company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses or assets. On July 29, 2016 (the “Closing Date”), the Company consummated its business combination with FTS Holding Corporation (“FTS”) pursuant to the agreement and plan of merger dated as of March 7, 2016, as amended, by and among the Company, FinTech Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”) and FTS (the “Merger Agreement”). Under the Merger Agreement, FTS merged with and into Merger Sub (the “Merger”), with Merger Sub surviving the Merger. In connection with the closing of the Merger, the Company changed its name from FinTech Acquisition Corp. to CardConnect Corp. and FinTech Merger Sub, Inc. changed its name to FTS Holding Corporation. Unless the context otherwise requires, the “Company” refers to the combined company and its subsidiaries following the Merger, “FinTech” refers to the company prior to the closing of the Merger and “FTS” refers to FTS Holding Corporation prior to the Merger. See Note 3 for further discussion of the Merger. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for fair presentation of the consolidated financial statements of the Company as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015. The results of operations for the three and nine months ended September 30, 2016 and 2015 are not necessarily indicative of the operating results for the full year. It is recommended that these condensed consolidated financial statements be read in conjunction with FTS’s consolidated financial statements and related noted thereto for the years ended December 31, 2015, 2014 and 2013 in the definitive proxy statement/prospectus filed by FinTech with the Securities and Exchange Commission (“SEC”) on July 12, 2016. The Merger has been accounted for as a reverse merger in accordance with U.S. GAAP. This determination was primarily based on FTS’s business comprising the ongoing operations of the Company following the Merger, FTS’s senior management comprising the senior management of the Company and FTS’s stockholders having a majority of the voting power of the Company. For accounting purposes, FinTech is considered the “acquired” company and FTS is considered the “acquirer.” Accordingly, for accounting purposes, the Merger is treated as the equivalent of FTS issuing stock for the net assets of FinTech, accompanied by a recapitalization. The net assets of FinTech are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Closing Date of the Merger are those of FTS, and FinTech’s assets, liabilities and results of operations are consolidated with FTS beginning on the Closing Date. The shares and corresponding capital amounts and earnings per share available to common stockholders, pre-merger, have been retroactively restated as shares reflecting the exchange ratio in the Merger. The historical financial information and operating results of FinTech prior to the Merger have not been separately presented in these condensed consolidated financial statements as they were not significant or meaningful.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of CardConnect Corp. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Collectively, the consolidated group is referred to as “CardConnect” or the “Company.” Preferred Stock The Company classifies its Series A Preferred Stock, issued in connection with the Merger, on its consolidated balance sheets using the guidance in ASC 480-10-S99. The Series A Preferred Stock contains certain provisions that allow the holder to redeem the preferred stock for cash, beginning seven years following the date of issuance, or if certain events occur, such as a change in control. As redemption under these circumstances is not solely within the Company’s control, the Series A Preferred Stock is classified as temporary equity. Subsequent Event The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements are filed for potential recognition or disclosure. Recent Accounting Pronouncements In November 2015, the FASB issued guidance to simplify the balance sheet classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. This amendment is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2016. Early adoption is permitted. The new guidance can be applied on either a prospective or retrospective basis. We have elected to early adopt this guidance and apply it on a prospective basis in 2015. Adoption of this accounting standards update (“ASU”) resulted in a reclassification of the Company’s net current deferred tax asset to the net long-term deferred tax liability in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance that requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. This amendment is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2018. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company has not yet determined the effect of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2016. The effect of this update is still being evaluated and is not expected to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In June 2016, the FASB issued guidance that will change the accounting for credit impairment. Under the new guidance, companies are required to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The effect of this update is still being evaluated and is not expected to have a material effect on the Company’s consolidated financial statements. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the presentation and classification of eight specific types of cash receipts and cash payments in the statement of cash flows, with the intent of reducing diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Entities must apply the guidance retrospectively to all periods presented; however, entities may apply prospectively if retrospective application is impracticable. The effect of this update is still being evaluated and is not expected to have a material effect on the Company’s consolidated financial statements.

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2016
Business Combination [Abstract]
Business Combination	3. Business Combination Background and Summary On the Closing Date, FinTech and FTS consummated the previously announced transactions contemplated by the Merger Agreement. The Merger Agreement provided for, among other things, the acquisition of FTS by FinTech pursuant to the Merger. In connection with the Merger, FinTech paid cash consideration of approximately $179 million (including approximately $2 million of “Excess Cash” as defined in the Merger Agreement), and issued 15,162,470 shares of common stock and options to purchase 3,463,950 shares of common stock. The cash portion of the consideration was funded by a combination of cash held in trust by FinTech of $100 million, borrowings under a new $100 million first lien secured credit facility and a $40 million second lien secured credit facility (See “Note 4. Debt—First Lien Facility” and “—Second Lien Facility”), and $42.2 million in proceeds from the private placements of preferred and common stock completed immediately prior to the Merger (See “—Series A Preferred Stock Offering” and “—Common Stock Offering”). In connection with the Merger, on the Closing Date the Company redeemed 1,119,051 shares of its common stock at a redemption price of $10.01 per share pursuant to the terms of the Company’s amended and restated certificate of incorporation, resulting in a total payment to redeeming stockholders of $11,201,698. Immediately following the Merger, there were 1,500,000 shares of Series A Preferred Stock outstanding, 28,751,331 shares of common stock outstanding, outstanding warrants to purchase 10,300,000 shares of common stock and outstanding options to purchase 6,854,429 shares of common stock. Series A Preferred Stock Offering On the Closing Date, in connection with the partial financing of the Merger, the Company issued 1,500,000 shares of newly created Series A Preferred Stock (the “Preferred Stock”) and 480,544 shares of common stock (such shares of common stock, together with the Preferred Stock, the “Shares”) to Falcon Strategic Partners V, LP (“Series A Purchaser”) in a private placement pursuant to the Securities Purchase Agreement with the Series A Purchaser dated June 23, 2016. The Shares were sold to the Series A Purchaser in a private placement transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Rule 506 of Regulation D promulgated by the SEC. The Company incurred fees of $570,397 in connection with issuing the Preferred Stock, which were recorded as a discount to the redeemable preferred stock on the condensed consolidated balance sheet on the date the offering closed. The aggregate purchase price for the Shares was $37.5 million, of which $30.0 million was used to pay a portion of the cash consideration for the Merger, to repay FTS’s existing debt in connection with the Merger, to pay transaction expenses relating to the Merger and for general corporate purposes, and the remaining $7.5 million was placed in a separate restricted account for the sole purpose of funding the first two years of cash dividends on the Preferred Stock. The Preferred Stock has an aggregate liquidation preference of $37.5 million plus all unpaid dividends. During the first two years following issuance, dividends accrue at a rate of 11.43% per annum, compounding quarterly, of which 10.0% will be payable in cash and 1.43% will accrue and be payable in connection with a redemption of the Preferred Stock or a Change of Control (as in the Certificate of Designation for the Preferred Stock). Thereafter, dividends accrue at 13.40% per annum, compounding quarterly, all of which will accrue and be payable in connection with a redemption of the Preferred Stock or a Change of Control. The Preferred Stock is redeemable, at the Series A Purchaser’s option, beginning seven years following the date of issuance (the “Mandatory Redemption Date”) at a price equal to the then aggregate liquidation preference of the outstanding Preferred Stock. The Company has the right (the “Optional Redemption Right”) to redeem the Preferred Stock beginning three and a half years following the date of issuance. The redemption price (the “Redemption Price”) will be 102% of the liquidation preference if the redemption occurs during the first redemption year, 101% of the liquidation preference if the redemption occurs during the second redemption year, and 100% of the liquidation value thereafter. Common Stock Offering On the Closing Date, in connection with the partial financing of the Merger, the Company issued an aggregate of 467,647 shares of common stock (the “PIPE Shares”) to FTVENTURES III, L.P., FTVENTURES III-N, L.P. and FTVENTURES III-T, L.P., each a stockholder of FTS, certain other stockholders of FTS and an affiliate of Betsy Cohen, a director of the Company (collectively, the “PIPE Investors”), pursuant to securities purchase agreements with the PIPE Investors dated July 27, 2016. The PIPE Shares were sold to the PIPE Investors in a private placement transaction (the “PIPE Transaction”) exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. Of the PIPE Shares sold in the PIPE Transaction, 350,000 shares were sold at a purchase price of $10.00 per share, and the remaining 117,647 shares, which were sold to the affiliate of Mrs. Cohen, were sold at a purchase price of $10.20 per share, the most recent closing bid price of the Company’s common stock, as required by applicable NASDAQ Listing Rules. The closing of the PIPE Transaction occurred immediately prior to the closing of the Merger. The Company used the proceeds from the PIPE Transaction to pay a portion of the cash consideration for the Merger, repay FTS’s existing debt in connection with the Merger, pay transaction expenses relating to the Merger and redeem shares of common stock in connection with the Merger pursuant to the Company’s amended and restated certificate of incorporation. The Company incurred fees of $299,041 in connection with issuing the PIPE Shares, which were recorded as an adjustment to Additional Paid-In Capital at closing. Warrants There are outstanding warrants to purchase an aggregate of 10,300,000 shares of the Company’s common stock. Each warrant entitles its holder to purchase one share of the Company’s common stock at an exercise price of $12.00 per share and will expire on July 29, 2021, or earlier upon liquidation by the Company. The Company may redeem the outstanding warrants at a price of $0.01 per warrant if the last sale price of the common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 trading day period

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt [Abstract]
Debt	4. Debt The Company’s long-term debt at September 30, 2016 and December 31, 2015, consisted of the following: September 30, December 31, 2016 2015 Credit facility: 2016 First lien term credit facility, net of $5,855,959 of deferred financing costs $ 92,144,041 $ — 2016 Second lien term credit facility 40,000,000 — 2012 Revolving credit facility — 59,964,989 Total debt 132,144,041 59,964,989 Less current portion 3,000,000 — Total long-term debt $ 129,144,041 $ 59,964,989 Prior Credit Facility In connection with the Merger, FTS repaid the outstanding balance of $57,964,989 under its 2012 revolving credit facility and terminated the facility. In connection with the Merger, on the Closing Date, the Company, through Merger Sub, entered into a credit agreement with BMO Harris Bank N.A. (“BMO”), as administrative agent, for a first lien credit facility (the “First Lien Facility”), and entered into a second lien credit agreement with Babson Capital Finance LLC, also acting as administrative agent, for a second lien term loan facility (the “Second Lien Facility”). Each facility is guaranteed by the Company and its two indirect wholly-owned subsidiaries, CardConnect, LLC and Princeton Payment Solutions, LLC, and secured by a pledge of all of the assets of the Company and its subsidiaries. The Company capitalized debt issuance costs of $6,047,141 in connection with the credit agreements, which will be amortized to interest expense over the term of the credit agreements. The capitalized debt issuance costs are reported net with their debt liabilities on the condensed consolidated balance sheets. Amortization of capitalized debt issuance costs was $191,182 for the three and nine months ended September 30, 2016. First Lien Facility The First Lien Facility consists of a $30 million senior secured first lien revolving credit facility and a $100 million senior secured first lien term credit facility. The Company may increase the First Lien Facility by up to $35 million (less amounts obtained from the related expansion feature under the Second Lien Facility), subject to customary restrictions and conditions. The First Lien Facility matures on July 29, 2021 and bears interest at rates based either on the three-month London Interbank Offered Rate, or LIBOR, plus a margin of between 2.00% and 3.50%, or, at the Company’s option, BMO’s base rate plus a margin of between 1.00% and 2.50%, with the margin in each case depending upon consolidated total net leverage ratios (described below). The term loan portion of the First Lien Facility will amortize $1.25 million per quarter beginning with the quarter ending December 31, 2016 through the quarter ending September 30, 2018; thereafter $1.875 million per quarter through the quarter ending September 30, 2020; and finally $2.5 million per quarter through the quarter ending June 30, 2021. At September 30, 2016, the interest rate on the outstanding balance of the first lien term credit facility was 4.02%. The Company may prepay the first lien credit facilities, without premium. The First Lien Facility requires mandatory prepayments, without premium, in the following amounts: ● 100% of the net cash proceeds of (i) sales of assets not in the ordinary course of business, (ii) sales of debt securities, and (iii) casualty or condemnation events (subject to specified thresholds and exceptions, including permitted reinvestment periods); and ● 75% of “Excess Cash Flow,” as defined in the first lien credit agreement, with a reduction to 50% if the total net leverage ratio for the fiscal year is 3.00 to 1.00, and a reduction to 25% if such ratio is 2.50 to 1.00. Second Lien Credit Facility The Second Lien Facility consists of a $40 million senior secured second lien term loan which has a $35 million expansion feature similar to, and coordinated with, the expansion feature of the First Lien Facility such that the maximum aggregate expansion for both such financings cannot exceed $35 million. The Second Lien Facility matures on July 29, 2022 and bears interest at LIBOR plus 9.50% (with a LIBOR floor of 1.00%) or, at the Company’s option, the base rate (generally, the Wall Street Journal “prime rate”) plus 8.50% (with a base rate floor of 2.00%). The Second Lien Facility does not amortize and may not be prepaid prior to the payment in full of the First Lien Facility, notwithstanding the foregoing, the Company is permitted to make payments under the Second Lien Facility out of the “available amount” (as defined under the First Lien Facility). If voluntary prepayments (in addition to those allowed to be made from the available amount) become permitted (following payment of the First Lien Facility in full), there will be a prepayment fee of 2% of the outstanding loan amount during the first loan year, 1% of the outstanding loan amount in the second loan year and no prepayment fee thereafter. Mandatory prepayments are the same as under the First Lien Facility but are conditioned on the prior repayment in full of the First Lien Facility. At September 30, 2016, the interest rate on the outstanding balance of the second lien term credit facility was 10.50%.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Stock-Based Compensation [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation FTS Holding Corporation 2010 Stock Option Plan In connection with the Merger, on the Closing Date all unvested stock options of FTS became fully vested and all vested stock options were then immediately settled for $9,716,492 of cash and options to purchase 3,463,950 shares of common stock of the Company. The Company recognized compensation expense of $2,205,334 and $3,054,066 for the three months and nine months ended September 30, 2016, respectively, which included $2,107,911 of remaining unrecognized compensation expense related to the accelerated vesting of FTS stock options. The Company recognized compensation expense of $461,536 and $1,384,693 for the three and nine months ended September 30, 2015, respectively. No stock options of FTS remain outstanding at September 30, 2016. CardConnect Corp. 2016 Omnibus Equity Compensation Plan In connection with the Merger, on the Closing Date the Company’s stockholders approved the CardConnect Corp. 2016 Omnibus Equity Compensation Plan (the “2016 Plan”). Also in connection with the Merger, on the Closing Date the Company issued 26,388 shares of restricted stock and options to purchase 3,390,479 shares of common stock under the 2016 Plan, and on August 9, 2016, the Company issued options to purchase 379,429 shares of common stock under the 2016 Plan. As of September 30, 2016, there were 3,796,296 shares authorized for issuance under the 2016 Plan and no shares available for issuance. Stock-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The stock options issued under the 2016 Plan vest in four equal installments over four years. The Company recognized compensation expense for stock options of $687,672 for the three and nine months ended September 30, 2016. As of September 30, 2016, there were 3,626,352 nonvested stock options and unrecognized compensation expense of $15,816,449 is expected to be recognized over a weighted-average period of 3.8 years. The restricted stock issued under the 2016 Plan vests on the earlier of (i) one day prior to the next regularly scheduled annual shareholders meeting, or (ii) one year from the grant date. The Company recognized compensation expense for restricted stock of $46,662 for the three and nine months ended September 30, 2016. As of September 30, 2016, there was $233,315 of unrecognized compensation expense for the restricted stock.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	6. Earnings per Share Basic (loss) income per share is calculated by dividing net (loss) income attributable to the Company’s common shareholders for period by the weighted average number of common shares outstanding for the period. In computing dilutive (loss) income per share, basic (loss) income per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards, including common stock options, restricted stock and warrants. Below are basic and diluted net (loss) income per share for the periods indicated (amounts in thousands except share and per share data): Three Months Ended 2016 2015 Numerator: Net (loss) income $ (22,081,298 ) $ 166,346 Less: Preferred stock dividends (666,667 ) — Net (loss) income available for common stockholders $ (22,747,965 ) $ 166,346 Denominator: Weighted-average common shares outstanding – basic 24,449,816 15,145,708 Dilutive effect of stock options — 1,575,163 Weighted-average common shares outstanding - diluted 24,449,816 16,720,871 Net (loss) income per share available for common stockholders - basic $ (0.93 ) $ 0.01 Net (loss) income per share available for common stockholders - diluted $ (0.93 ) $ 0.01 Antidilutive options, unvested restricted stock awards and warrants excluded from the computations 15,524,161 — Nine Months Ended 2016 2015 Numerator: Net (loss) income $ (18,687,517 ) $ 887,465 Less: Preferred stock dividends (666,667 ) — Net (loss) income available for common stockholders $ (19,354,184 ) $ 887,465 Denominator: Weighted-average common shares outstanding - basic 18,277,085 15,145,708 Dilutive effect of stock options — 1,575,163 Weighted-average common shares outstanding - diluted 18,277,085 16,720,871 Net (loss) income per share available for common stockholders - basic $ (1.06 ) $ 0.06 Net (loss) income per share available for common stockholders - diluted $ (1.06 ) $ 0.05 Antidilutive options, unvested restricted stock awards and warrants excluded from the computations 14,552,752 —

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Taxes [Abstract]
Income Taxes	7. Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate and, if the Company’s estimated tax rate changes, it makes a cumulative adjustment in that period. The provision for income taxes for the three and nine months ended September 30, 2016 and 2015 and the resulting effective tax rates were as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Provision for income taxes $ 772,160 $ 315,346 $ 1,064,328 $ 1,314,809 Effective tax rate (3.6 )% 65.5 % (6.0 )% 59.7 % The effective rate for the three months ended September 30, 2016 differs from the federal statutory rate due to the expected increase of the valuation allowance against our deferred tax assets and the impact of indefinitely-lived intangible assets, which increased the Company’s effective tax rate by 37.2% and 6.0%, respectively, partially offset by a state tax benefit, which decreased the Company’s effective tax rate by 2.3%. The effective rate for the three months ended September 30, 2015 differs from the federal statutory rate due to an expected increase in the valuation allowance against our deferred tax assets and state taxes, which increased the Company’s effective tax rate by 16.7% and 2.5%, respectively. The effective rate for the nine months ended September 30, 2016 differs from the federal statutory rate due to the expected increase of the valuation allowance against our deferred tax assets and the impact of indefinitely-lived intangible assets, which increased the Company’s effective tax rate by 37.2% and 6.0%, respectively, partially offset by a state tax benefit, which decreased the Company’s effective tax rate by 2.3%. The effective rate for the nine months ended September 30, 2015 differs from the federal statutory rate due to an expected increase in the valuation allowance against our deferred tax assets and state taxes, which increased the Company’s effective tax rate by 16.7% and 2.5%, respectively. The Company regularly evaluates its tax positions for additional unrecognized tax benefits and associated interest and penalties, if applicable. There are many factors that are considered when evaluating these tax positions including: interpretation of tax laws, recent tax litigation on a position, past audit or examination history, and subjective estimates and assumptions, which have been deemed reasonable by management. The Company does not expect any material changes to unrecognized tax benefits in the next twelve months. At September 30, 2016 and 2015, the reserve for unrecognized tax benefits related to uncertain tax positions was $221,584 and $116,258, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies The Company is party to a contract with First Data Merchant Services Corporation (“FDMS”), under which FDMS provides services related to transaction processing and transmittal, transaction authorization, and data capture and access to reporting tools. The contract expires on December 31, 2021, with successive renewal options of two years. The Company is required to pay minimum services fees equal to 70% of the prior year’s services fees paid to FDMS. The minimum services fee to be paid to FDMS in 2016 is $8,725,735. The Company is party to a contract with TSYS Acquiring Solutions, LLC (“TSYS”), under which TSYS provides merchant authorization, accounting and clearing services. The contract expires on October 31, 2020, with successive renewal options of two years. The Company is required to pay minimum services fees each month of the contract equal to the greater of the contractually agreed upon amount for each processing year or 70% of the average monthly volume over the last three months of the prior processing year. The minimum services fees to be paid to TSYS in 2016, 2017, 2018, 2019 and 2020 are $1,029,477, $1,220,000, $1,350,000, $1,550,000 and $1,500,000, respectively. The Company is involved in ordinary course legal proceedings, which include all claims, lawsuits, investigations and proceedings, including unasserted claims, which are probable of being asserted, arising in the ordinary course of business. The Company has considered all such ordinary course legal proceedings as of September 30, 2016 in formulating its disclosures and assessments. In the opinion of the Company’s management, based on consultations with outside counsel, material losses are not considered reasonably possible in connection with these ordinary course legal proceedings. The Company leases office equipment and office space under operating agreements expiring through 2023. Rent expense on operating leases is recorded on a straight-line basis over the term of the lease agreement. Substantially all of the leases require the Company to pay maintenance, insurance, and property taxes. Future minimum lease payments for all non-cancelable leases for the remainder of 2016 and the next five fiscal years are as follows: For the Fiscal Year Ending December 31, 2016 (remainder) $ 452,002 2017 1,766,850 2018 1,740,587 2019 1,647,248 2020 1,620,416 2021 1,659,409 Thereafter 3,439,881 $ 12,326,393

Segments

Segments	9 Months Ended
	Sep. 30, 2016
Segments [Abstract]
Segments	9. Segments The Company’s core business is providing Merchant Acquiring services to Small and Medium sized Businesses (“SMB”). The Company also provides services to larger Enterprise customers that primarily utilize sophisticated Enterprise Resource Planning (“ERP”) systems to manage their business. These services are primarily ERP integration services utilizing the Company’s secure hosted payment gateway, and may also include secure, point-to-point encryption (“P2PE”) payment terminals and acceptance devices. The Company also provides Merchant Acquiring services to certain of its Enterprise customers. Merchant Acquiring services provided to both SMB and Enterprise customers are aggregated for financial reporting purposes in the Merchant Acquiring segment, as they both provide processing services related to bankcard transactions, exhibit similar economic characteristics, and share the same systems to provide services. The Enterprise services business activity does not meet applicable materiality thresholds for separate segment disclosure but is included as the primary component of an “all other” category under GAAP as set forth below. The other category also includes corporate overhead expenses and non-recurring charges unrelated to Merchant Acquiring services and Enterprise services. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Revenue Merchant Acquiring Services $ 152,327,958 $ 115,733,309 $ 427,096,865 $ 327,287,155 Other 1,703,151 2,127,239 5,388,040 3,818,506 154,031,109 117,860,548 432,484,905 331,105,661 Income/(loss) from operations Merchant Acquiring Services 1,852,202 1,531,345 7,451,579 4,976,961 Other (21,157,599 ) (755,362 ) (22,032,141 ) (1,757,051 ) (19,305,397 ) 775,983 (14,580,562 ) 3,219,910 Cost of services (exclusive of depreciation and amortization) Merchant Acquiring Services 135,894,774 104,087,690 382,772,465 293,137,386 Other 482,794 1,358,284 2,030,969 1,530,707 136,377,568 105,445,974 384,803,434 294,668,093 General and administrative Merchant Acquiring Services 8,932,059 4,862,782 20,449,038 14,197,020 Other 22,290,804 1,427,427 25,127,759 3,690,070 31,222,863 6,290,209 45,576,797 17,887,090 Amortization expense Merchant Acquiring Services 5,243,305 4,997,680 15,242,961 14,275,965 Other 48,025 57,272 144,075 171,815 5,291,330 5,054,952 15,387,036 14,447,780 Interest expense, net Merchant Acquiring Services 1,764,711 274,150 2,636,908 844,308 Other — — — — 1,764,711 274,150 2,636,908 844,308

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	10. Related Party Transactions In connection with the Merger, $4,031,887 of related party receivables was repaid to the Company on the Closing Date. On the Closing Date, the company consummated the Pipe Transaction. See Note 3 for a description of the PIPE Transaction. On September 30, 2016, the Company entered into a residual buyout agreement with an independent contractor who is a related party. Total consideration under the agreement was $115,500, of which $40,500 was paid in cash to the independent contractor and $75,000 reduced the balance of an outstanding loan balance with the Company. The outstanding balance of the loan at September 30, 2016, following consummation of the residual buyout agreement was $175,000.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On October 28, 2016, the Company’s stockholders approved an amendment and restatement of the CardConnect Corp. 2016 Omnibus Equity Compensation Plan (the “2016 Plan”) that authorized an additional 1,000,000 shares of common stock for issuance under the 2016 Plan. The amendment and restatement of the 2016 Plan increased the total shares authorized for issuance from 3,796,296 shares to 4,796,296 shares. On November 2, 2016, the Company entered into Amendment No. 1 to the Company’s First Lien Facility and Amendment No. 1 to the Company’s Second Lien Facility. These amendments permit the Company to repurchase up to $2.5 million of the Company’s outstanding warrants on the terms set forth in such amendments. On November 2, 2016, the Company received a notice from the staff (the “Staff”) of The NASDAQ Stock Market LLC (“Nasdaq”) stating that the Staff has determined that the Company has not complied with Nasdaq Listing Rules 5405(a)(3) and 5410(d) (the “Minimum Holder Requirements”), which require that the Company have at least 400 round lot holders of each of its common stock and warrants, respectively, to maintain the listing of such securities on the NASDAQ Capital Market (the “Capital Market”). The Company previously submitted to Nasdaq a report of round lot shareholders as of a record date of October 5, 2016, prepared by Morrow & Co. LLC. Nasdaq verbally informed the Company that the report, when adjusted, indicated that the Company had 378 round lot shareholders. The Company requested a hearing to appeal the Staff’s determination. The Company’s securities will continue to be listed on the Capital Market pending the completion of the hearing process. The Company expects to assess and implement initiatives to expand its investor base and to regain compliance with the Minimum Holder Requirements with respect to its common stock prior to any hearing granted by the Staff.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Preferred Stock The Company classifies its Series A Preferred Stock, issued in connection with the Merger, on its consolidated balance sheets using the guidance in ASC 480-10-S99. The Series A Preferred Stock contains certain provisions that allow the holder to redeem the preferred stock for cash, beginning seven years following the date of issuance, or if certain events occur, such as a change in control. As redemption under these circumstances is not solely within the Company’s control, the Series A Preferred Stock is classified as temporary equity.
Preferred Stock	Preferred Stock The Company classifies its Series A Preferred Stock, issued in connection with the Merger, on its consolidated balance sheets using the guidance in ASC 480-10-S99. The Series A Preferred Stock contains certain provisions that allow the holder to redeem the preferred stock for cash, beginning seven years following the date of issuance, or if certain events occur, such as a change in control. As redemption under these circumstances is not solely within the Company’s control, the Series A Preferred Stock is classified as temporary equity.
Subsequent Event	Subsequent Event The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements are filed for potential recognition or disclosure
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2015, the FASB issued guidance to simplify the balance sheet classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. This amendment is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2016. Early adoption is permitted. The new guidance can be applied on either a prospective or retrospective basis. We have elected to early adopt this guidance and apply it on a prospective basis in 2015. Adoption of this accounting standards update (“ASU”) resulted in a reclassification of the Company’s net current deferred tax asset to the net long-term deferred tax liability in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance that requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. This amendment is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2018. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company has not yet determined the effect of the adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2016. The effect of this update is still being evaluated and is not expected to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In June 2016, the FASB issued guidance that will change the accounting for credit impairment. Under the new guidance, companies are required to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The effect of this update is still being evaluated and is not expected to have a material effect on the Company’s consolidated financial statements. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which adds or clarifies guidance on the presentation and classification of eight specific types of cash receipts and cash payments in the statement of cash flows, with the intent of reducing diversity in practice. For public entities, ASU 2016-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Entities must apply the guidance retrospectively to all periods presented; however, entities may apply prospectively if retrospective application is impracticable. The effect of this update is still being evaluated and is not expected to have a material effect on the Company’s consolidated financial statements.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt [Abstract]
Schedule of long-term debt	September 30, December 31, 2016 2015 Credit facility: 2016 First lien term credit facility, net of $5,855,959 of deferred financing costs $ 92,144,041 $ — 2016 Second lien term credit facility 40,000,000 — 2012 Revolving credit facility — 59,964,989 Total debt 132,144,041 59,964,989 Less current portion 3,000,000 — Total long-term debt $ 129,144,041 $ 59,964,989

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Summary of basic and diluted net (loss) income per share	Three Months Ended 2016 2015 Numerator: Net (loss) income $ (22,081,298 ) $ 166,346 Less: Preferred stock dividends (666,667 ) — Net (loss) income available for common stockholders $ (22,747,965 ) $ 166,346 Denominator: Weighted-average common shares outstanding – basic 24,449,816 15,145,708 Dilutive effect of stock options — 1,575,163 Weighted-average common shares outstanding - diluted 24,449,816 16,720,871 Net (loss) income per share available for common stockholders - basic $ (0.93 ) $ 0.01 Net (loss) income per share available for common stockholders - diluted $ (0.93 ) $ 0.01 Antidilutive options, unvested restricted stock awards and warrants excluded from the computations 15,524,161 — Nine Months Ended 2016 2015 Numerator: Net (loss) income $ (18,687,517 ) $ 887,465 Less: Preferred stock dividends (666,667 ) — Net (loss) income available for common stockholders $ (19,354,184 ) $ 887,465 Denominator: Weighted-average common shares outstanding - basic 18,277,085 15,145,708 Dilutive effect of stock options — 1,575,163 Weighted-average common shares outstanding - diluted 18,277,085 16,720,871 Net (loss) income per share available for common stockholders - basic $ (1.06 ) $ 0.06 Net (loss) income per share available for common stockholders - diluted $ (1.06 ) $ 0.05 Antidilutive options, unvested restricted stock awards and warrants excluded from the computations 14,552,752 —

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Taxes [Abstract]
Schedule of provision for income taxes	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Provision for income taxes $ 772,160 $ 315,346 $ 1,064,328 $ 1,314,809 Effective tax rate (3.6 )% 65.5 % (6.0 )% 59.7 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies [Abstract]
Schedule of future minimum lease payments for all non-cancelable leases	For the Fiscal Year Ending December 31, 2016 (remainder) $ 452,002 2017 1,766,850 2018 1,740,587 2019 1,647,248 2020 1,620,416 2021 1,659,409 Thereafter 3,439,881 $ 12,326,393

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Segments [Abstract]
Schedule of segment reporting information	For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Revenue Merchant Acquiring Services $ 152,327,958 $ 115,733,309 $ 427,096,865 $ 327,287,155 Other 1,703,151 2,127,239 5,388,040 3,818,506 154,031,109 117,860,548 432,484,905 331,105,661 Income/(loss) from operations Merchant Acquiring Services 1,852,202 1,531,345 7,451,579 4,976,961 Other (21,157,599 ) (755,362 ) (22,032,141 ) (1,757,051 ) (19,305,397 ) 775,983 (14,580,562 ) 3,219,910 Cost of services (exclusive of depreciation and amortization) Merchant Acquiring Services 135,894,774 104,087,690 382,772,465 293,137,386 Other 482,794 1,358,284 2,030,969 1,530,707 136,377,568 105,445,974 384,803,434 294,668,093 General and administrative Merchant Acquiring Services 8,932,059 4,862,782 20,449,038 14,197,020 Other 22,290,804 1,427,427 25,127,759 3,690,070 31,222,863 6,290,209 45,576,797 17,887,090 Amortization expense Merchant Acquiring Services 5,243,305 4,997,680 15,242,961 14,275,965 Other 48,025 57,272 144,075 171,815 5,291,330 5,054,952 15,387,036 14,447,780 Interest expense, net Merchant Acquiring Services 1,764,711 274,150 2,636,908 844,308 Other — — — — 1,764,711 274,150 2,636,908 844,308

Business Combination (Details)

Business Combination (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Business Combination (Textual)
Cash held in trust	$ 100,000,000
Secured credit facility	$ 132,144,041
Common stock, shares outstanding	28,751,331	15,145,708
Common stock, shares issued	28,751,331	15,145,708
Warrant to purchase of common stock	10,300,000
Warrant description	Each warrant entitles its holder to purchase one share of the Company's common stock at an exercise price of $12.00 per share and will expire on July 29, 2021, or earlier upon liquidation by the Company. The Company may redeem the outstanding warrants at a price of $0.01 per warrant if the last sale price of the common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 trading day period
Merger Agreement [Member]
Business Combination (Textual)
Cash consideration paid	$ 179,000,000
Excess cash related to merger	$ 2,000,000
Common stock, shares issued	15,162,470
Options to purchase of common stock	3,463,950
Proceeds from issuance of private placements	$ 42,200,000
Common stock shares redeemed	1,119,051
Common stock shares redeemed, value	$ 11,201,698
Common stock, redemption price per share	$ 10.01
Outstanding warrants to purchase of common stock	10,300,000
Outstanding options to purchase of common stock	6,854,429
Common stock, shares outstanding	28,751,331
Discount to redeemable preferred stock	$ 570,397
Series A Preferred Stock Offering [Member]
Business Combination (Textual)
Common stock, shares issued	480,544
Preferred stock, shares issued	1,500,000	0
Preferred stock, shares outstanding	1,500,000	0
Preferred stock purchase price, description	The aggregate purchase price for the Shares was $37.5 million, of which $30.0 million was used to pay a portion of the cash consideration for the Merger, to repay FTS's existing debt in connection with the Merger, to pay transaction expenses relating to the Merger and for general corporate purposes, and the remaining $7.5 million was placed in a separate account for use in funding the first two years of cash dividends on the Preferred Stock.
Preferred stock liquidation preference	$ 0	$ 48,611,210
Preferred stock dividend, description	During the first two years following issuance, dividends accrue at a rate of 11.43% per annum, compounding quarterly, of which 10.0% will be payable in cash and 1.43% will accrue and be payable in connection with a redemption of the Preferred Stock or a Change of Control (as in the Certificate of Designation for the Preferred Stock). Thereafter, dividends accrue at 13.40% per annum, compounding quarterly, all of which will accrue and be payable in connection with a redemption of the Preferred Stock or a Change of Control.
Preferred stock redemption price, description	The redemption price (the "Redemption Price") will be 102% of the liquidation preference if the redemption occurs during the first redemption year, 101% of the liquidation preference if the redemption occurs during the second redemption year, and 100% of the liquidation value thereafter.
Series A Preferred Stock Offering [Member] | Falcon Strategic Partners V, LP [Member]
Business Combination (Textual)
Common stock, shares issued	480,544
Common Stock Offering [Member]
Business Combination (Textual)
Common stock, shares issued	467,647
Sale of stock, number of shares issued	350,000
Sale of stock, price per share	$ 10
Additional paid in capital at closing	$ 299,041
Common Stock Offering [Member] | Mrs. Cohen [Member]
Business Combination (Textual)
Sale of stock, number of shares issued	117,647
Sale of stock, price per share	$ 10.20
First lien secured credit facility [Member]
Business Combination (Textual)
Secured credit facility	$ 95,000,000
First lien secured credit facility [Member] | Merger Agreement [Member]
Business Combination (Textual)
Secured credit facility	100,000,000
Second lien secured credit facility [Member]
Business Combination (Textual)
Secured credit facility	40,000,000
Second lien secured credit facility [Member] | Merger Agreement [Member]
Business Combination (Textual)
Secured credit facility	$ 40,000,000

Debt (Details)

Debt (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total debt	$ 132,144,041	$ 59,964,989
Less current portion	3,000,000
Total long-term debt	129,144,041	59,964,989
2016 First lien term credit facility [Member]
Debt Instrument [Line Items]
Total debt	92,144,041
2016 Second lien term credit facility [Member]
Debt Instrument [Line Items]
Total debt	40,000,000
2012 Revolving credit facility [Member]
Debt Instrument [Line Items]
Total debt		$ 59,964,989

Debt (Details Textual)

Debt (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt (Textual)
Repaid outstanding credit facility	$ 57,964,989
Debt issuance costs	6,047,141
Amortization of capitalized debt issuance costs	191,182
Total debt	$ 132,144,041	$ 59,964,989
First Lien Facility [Member]
Debt (Textual)
Credit facility, Description	The First Lien Facility consists of a $30 million senior secured first lien revolving credit facility and a $100 million senior secured first lien term credit facility. The Company may increase the First Lien Facility by up to $35 million (less amounts obtained from the related expansion feature under the Second Lien Facility), subject to customary restrictions and conditions.
Credit facility, Maturity date	Jul. 29, 2021
Interest rate on credit facility, Description	Interest at rates based either on the three-month London Interbank Offered Rate, or LIBOR, plus a margin of between 2.00% and 3.50%, or, at the Company's option, BMO's base rate plus a margin of between 1.00% and 2.50%, with the margin in each case depending upon consolidated total net leverage ratios (described below).
Interest rate on credit facility	4.02%
Credit facilities prepayments, Description	● 100% of the net cash proceeds of (i) sales of assets not in the ordinary course of business, (ii) sales of debt securities, and (iii) casualty or condemnation events (subject to specified thresholds and exceptions, including permitted reinvestment periods); and ● 75% of “Excess Cash Flow,” as defined in the first lien credit agreement, with a reduction to 50% if the total net leverage ratio for the fiscal year is 3.00 to 1.00, and a reduction to 25% if such ratio is 2.50 to 1.00.
Deferred financing costs	$ 5,855,959
Total debt	$ 92,144,041
Periodic payment of debt, description	The term loan portion of the First Lien Facility will amortize $1.25 million per quarter beginning with the quarter ending December 31, 2016 through the quarter ending September 30, 2018; thereafter $1.875 million per quarter through the quarter ending September 30, 2020; and finally $2.5 million per quarter through the quarter ending June 30, 2021.
Second Lien Credit Facility [Member]
Debt (Textual)
Credit facility, Description	The Second Lien Facility consists of a $40 million senior secured second lien term loan which has a $35 million expansion feature similar to, and coordinated with, the expansion feature of the First Lien Facility such that the maximum aggregate expansion for both such financings cannot exceed $35 million.
Credit facility, Maturity date	Jul. 29, 2022
Interest rate on credit facility, Description	Interest at LIBOR plus 9.50% (with a LIBOR floor of 1.00%) or, at the Company's option, the base rate (generally, the Wall Street Journal "prime rate") plus 8.50% (with a base rate floor of 2.00%).
Interest rate on credit facility	10.50%
Total debt	$ 40,000,000
Periodic payment of debt, description	The Second Lien Facility does not amortize and may not be prepaid prior to the payment in full of the First Lien Facility, notwithstanding the foregoing, the Company is permitted to make payments under the Second Lien Facility out of the “available amount” (as defined under the First Lien Facility). If voluntary prepayments (in addition to those allowed to be made from the available amount) become permitted (following payment of the First Lien Facility in full), there will be a prepayment fee of 2% of the outstanding loan amount during the first loan year, 1% of the outstanding loan amount in the second loan year and no prepayment fee thereafter. Mandatory prepayments are the same as under the First Lien Facility but are conditioned on the prior repayment in full of the First Lien Facility.
2012 Revolving credit facility [Member]
Debt (Textual)
Total debt		$ 59,964,989

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	Aug. 09, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Stock-Based Compensation (Textual)
Common stock, shares authorized		200,000,000		200,000,000		200,000,000
FTS Holding Corporation 2010 Stock Option Plan [Member]
Stock-Based Compensation (Textual)
Cash consideration paid for stock options		$ 9,716,492		$ 9,716,492
Stock options				3,463,950
Recognized compensation expense		2,205,334	$ 461,536	$ 3,054,066	$ 1,384,693
Unrecognized compensation expense				$ 2,107,911
CardConnect Corp. 2016 Omnibus Equity Compensation Plan [Member]
Stock-Based Compensation (Textual)
Stock options	379,429			3,390,479
Recognized compensation expense		$ 687,672		$ 687,672
Unrecognized compensation expense				$ 15,816,449
Nonvested stock options		3,626,352		3,626,352
Issued shares of restricted stock				26,388
Common stock, shares authorized		3,796,296		3,796,296
Weighted-average period of recognized				3 years 9 months 18 days
Vesting, period				4 years
Restricted stock [Member]
Stock-Based Compensation (Textual)
Recognized compensation expense		$ 46,662		$ 46,662
Unrecognized compensation expense				$ 233,315
Term of restricted stock vesting, description				(i) one day prior to the next regularly scheduled annual shareholders meeting, or (ii) one year from the grant date.

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net (loss) income	$ (22,081,298)	$ 166,346	$ (18,687,517)	$ 887,465
Less: Preferred stock dividends	(666,667)		(666,667)
Net (loss) income available for common stockholders	$ (22,747,965)	$ 166,346	$ (19,354,184)	$ 887,465
Denominator:
Weighted-average common shares outstanding - basic	24,449,816	15,145,708	18,277,085	15,145,708
Dilutive effect of stock options		1,575,163		1,575,163
Weighted-average common shares outstanding - diluted	24,449,816	16,720,871	18,277,085	16,720,871
Net (loss) income per share available for common stockholders - basic	$ (0.93)	$ 0.01	$ (1.06)	$ 0.06
Net (loss) income per share available for common stockholders - diluted	$ (0.93)	$ 0.01	$ (1.06)	$ 0.05
Antidilutive options, unvested restricted stock awards and warrants excluded from the computations	15,524,161		14,526,364

Income Taxes (Details )

Income Taxes (Details ) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Abstract]
Provision for income taxes	$ 772,160	$ 315,346	$ 1,064,328	$ 1,314,809
Effective tax rate	(3.60%)	65.50%	(6.00%)	59.70%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes (Textual)
Unrecognized tax benefits	$ 221,584	$ 116,258	$ 221,584	$ 116,258
Effective tax rate	(3.60%)	65.50%	(6.00%)	59.70%
Indefinitely-lived intangibles [Member]
Income Taxes (Textual)
Effective tax rate	6.00%	0.00%	6.00%	0.00%
Valuation allowance of deferred tax assets [Member]
Income Taxes (Textual)
Effective tax rate	37.20%	16.70%	37.20%	16.70%
State taxes [Member]
Income Taxes (Textual)
Effective tax rate	2.30%	2.50%	2.30%	2.50%

Commitments and Contingencies31

Commitments and Contingencies (Details)	Sep. 30, 2016USD ($)
Commitments and Contingencies [Abstract]
2016 (remainder)	$ 452,002
2,017	1,766,850
2,018	1,740,587
2,019	1,647,248
2,020	1,620,416
2,021	1,659,409
Thereafter	3,439,881
Total	$ 12,326,393

Commitments and Contingencies32

Commitments and Contingencies (Details Textual)	9 Months Ended
	Sep. 30, 2016USD ($)
Commitments and Contingencies [Textual]
Other commitments, description	The Company leases office equipment and office space under operating agreements expiring through 2023.
FDMS [Member]
Commitments and Contingencies [Textual]
Contract expiration date	Dec. 31, 2021
Successive renewal options	2 years
Other commitments, description	The Company is required to pay minimum services fees equal to 70% of the prior year's services fees paid to FDMS.
Minimum services fees payable in 2016	$ 8,725,735
TSYS [Member]
Commitments and Contingencies [Textual]
Contract expiration date	Oct. 31, 2020
Successive renewal options	2 years
Other commitments, description	The Company is required to pay minimum services fees each month of the contract equal to the greater of the contractually agreed upon amount for each processing year or 70% of the average monthly volume over the last three months of the prior processing year.
Minimum services fees payable in 2016	$ 1,029,477
Minimum services fees payable in 2017	1,220,000
Minimum services fees payable in 2018	1,350,000
Minimum services fees payable in 2019	1,550,000
Minimum services fees payable in 2020	$ 1,500,000

Segments (Details)

Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue	$ 154,031,109	$ 117,860,548	$ 432,484,905	$ 331,105,661
Income/(loss) from operations	(19,305,397)	775,983	(14,580,562)	3,219,910
Cost of services (exclusive of depreciation and amortization)	136,377,568	105,445,974	384,803,434	294,668,093
General and administrative	31,222,863	6,290,209	45,576,797	17,887,090
Amortization expense	5,291,330	5,054,952	15,387,036	14,447,780
Interest expense, net	1,764,711	274,150	2,636,908	844,308
Merchant Acquiring Services [Member]
Segment Reporting Information [Line Items]
Revenue	152,327,958	115,733,309	427,096,865	327,287,155
Income/(loss) from operations	1,852,202	1,531,345	7,451,579	4,976,961
Cost of services (exclusive of depreciation and amortization)	135,894,774	104,087,690	382,772,465	293,137,386
General and administrative	8,932,059	4,862,782	20,449,038	14,197,020
Amortization expense	5,243,305	4,997,680	15,242,961	14,275,965
Interest expense, net	1,764,711	274,150	2,636,908	844,308
Other [Member]
Segment Reporting Information [Line Items]
Revenue	1,703,151	2,127,239	5,388,040	3,818,506
Income/(loss) from operations	(21,157,599)	(755,362)	(22,032,141)	(1,757,051)
Cost of services (exclusive of depreciation and amortization)	482,794	1,358,284	2,030,969	1,530,707
General and administrative	22,290,804	1,427,427	25,127,759	3,690,070
Amortization expense	48,025	57,272	144,075	171,815
Interest expense, net

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Related Party Transactions (Textual)
Related party receivables	$ 4,031,887
Consideration under residual buyout agreement	115,500
Cash paid to independent contractor	9,528,500	$ 6,731,396
Noncash consideration to independent contractor	75,000
Outstanding balance of loan	$ 175,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ in Millions	Nov. 02, 2016	Oct. 28, 2016
Subsequent Event [Line Items]
Additional common stock shares authorized		1,000,000
Common stock shares authorized prior to amendment		3,796,296
Common stock shares authorized after amendment		4,796,296
Warrants outstanding	$ 2.5