CPI Card (PMTS) 10-Q 11 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	Apr. 22, 2021
Cover Abstract
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	CPI Card Group Inc.
Entity Central Index Key	0001641614
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,230,482
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 24,884	$ 57,603
Accounts receivable, net of allowances of $237 and $289, respectively	60,479	54,592
Inventories	33,490	24,796
Prepaid expenses and other current assets	5,193	5,032
Income taxes receivable	9,152	10,511
Total current assets	133,198	152,534
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net	38,188	39,403
Intangible assets, net	25,058	26,207
Goodwill	47,150	47,150
Other assets	2,700	857
Total assets	246,294	266,151
Current liabilities:
Accounts payable	21,792	18,883
Accrued expenses	22,618	28,149
Current portion of long-term debt		8,027
Deferred revenue and customer deposits	1,316	1,868
Total current liabilities	45,726	56,927
Long-term debt	317,503	328,681
Deferred income taxes	7,232	7,409
Other long-term liabilities	11,409	11,171
Total liabilities	381,870	404,188
Commitments and contingencies (Note 14)
Series A Preferred Stock; $0.001 par value—100,000 shares authorized; 0 shares issued and outstanding at March 31, 2021 and December 31, 2020
Stockholders’ deficit:
Common stock; $0.001 par value—100,000,000 shares authorized; 11,230,482 shares issued and outstanding at March 31, 2021 and December 31, 2020	11	11
Capital deficiency	(111,807)	(111,858)
Accumulated loss	(23,780)	(26,190)
Total stockholders’ deficit	(135,576)	(138,037)
Total liabilities and stockholders’ deficit	$ 246,294	$ 266,151

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets
Allowance on accounts receivable	$ 237	$ 289
Preferred shares, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, authorized shares (in shares)	100,000	100,000
Preferred shares, issued shares (in shares)	0	0
Preferred shares, outstanding shares (in shares)	0	0
Common shares, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares, authorized shares (in shares)	100,000,000	100,000,000
Common shares, issued shares (in shares)	11,230,482	11,230,482
Common shares, outstanding shares (in shares)	11,230,482	11,230,482

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net sales:
Net Sales	$ 89,092	$ 73,969
Cost of sales:
Depreciation and amortization	2,416	2,755
Total cost of sales	53,371	48,321
Gross profit	35,721	25,648
Operating expenses:
Selling, general and administrative (exclusive of depreciation and amortization shown below)	16,146	16,663
Depreciation and amortization	1,806	1,485
Total operating expenses	17,952	18,148
Income from operations	17,769	7,500
Other expense, net:
Interest, net	(8,976)	(6,088)
Other income (expense), net	25	(3)
Loss on debt extinguishment	(5,048)	(92)
Total other expense, net	(13,999)	(6,183)
Income from continuing operations before income taxes	3,770	1,317
Income tax (expense) benefit	(1,360)	465
Net income from continuing operations	2,410	1,782
Net loss from discontinued operations, net of tax (Note 1)		(26)
Net income	$ 2,410	$ 1,756
Earnings per share from continuing operations - Basic and Diluted: (in dollar per share)	$ 0.21	$ 0.16
Earnings per share - Basic and Diluted: (in dollars per share)	$ 0.21	$ 0.16
Basic weighted-average shares outstanding (in shares)	11,230,482	11,224,500
Diluted weighted-average shares outstanding (in shares)	11,639,015	11,262,359
Comprehensive income:
Net income	$ 2,410	$ 1,756
Total comprehensive income	2,410	1,756
Products
Net sales:
Net Sales	47,013	42,501
Cost of sales:
Products and Services (exclusive of depreciation and amortization shown below)	27,287	26,379
Services
Net sales:
Net Sales	42,079	31,468
Cost of sales:
Products and Services (exclusive of depreciation and amortization shown below)	$ 23,668	$ 19,187

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands	Common Stock	Capital deficiency	Accumulated earnings (loss)	Total
Beginning balance at Dec. 31, 2019	$ 11	$ (111,988)	$ (42,319)	$ (154,296)
Beginning balance (in shares) at Dec. 31, 2019	11,224,191
Shares issued under stock-based compensation plans (in shares)	5,628
Stock-based compensation		35		35
Components of comprehensive income:
Net income			1,756	1,756
Ending balance at Mar. 31, 2020	$ 11	(111,953)	(40,563)	(152,505)
Ending balance (in shares) at Mar. 31, 2020	11,229,819
Beginning balance at Dec. 31, 2020	$ 11	(111,858)	(26,190)	$ (138,037)
Beginning balance (in shares) at Dec. 31, 2020	11,230,482			11,230,482
Stock-based compensation		51		$ 51
Components of comprehensive income:
Net income			2,410	2,410
Ending balance at Mar. 31, 2021	$ 11	$ (111,807)	$ (23,780)	$ (135,576)
Ending balance (in shares) at Mar. 31, 2021	11,230,482			11,230,482

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities
Net income	$ 2,410	$ 1,756
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations		26
Depreciation and amortization expense	4,222	4,240
Stock-based compensation expense	51	41
Amortization of debt issuance costs and debt discount	887	634
Loss on debt extinguishment	5,048	92
Deferred income taxes	(177)	537
Other, net	200	488
Changes in operating assets and liabilities:
Accounts receivable	(5,884)	(911)
Inventories	(8,885)	521
Prepaid expenses and other assets	107	1,138
Income taxes receivable, net	1,359	(846)
Accounts payable	3,705	(2,747)
Accrued expenses	(2,790)	(1,856)
Deferred revenue and customer deposits	(556)	177
Other liabilities	447	(86)
Cash provided by operating activities - continuing operations	144	3,204
Cash used in operating activities - discontinued operations	0	(26)
Investing activities
Capital expenditures for plant, equipment and leasehold improvements	(2,524)	(938)
Other	155
Cash used in investing activities	(2,369)	(938)
Financing activities
Principal payments on First Lien Term loan	(312,500)
Principal payments on Senior Credit Facility	(30,000)
Proceeds from Senior Notes	310,000
Proceeds from ABL Revolver, net of discount	14,750
Proceeds from Senior Credit Facility, net of discount		29,100
Debt issuance costs	(9,452)	(2,507)
Payments on debt extinguishment	(2,685)
Payments on finance lease obligations	(610)	(593)
Cash (used in) provided by financing activities	(30,497)	26,000
Effect of exchange rates on cash	3	(18)
Net (decrease) increase in cash and cash equivalents	(32,719)	28,222
Cash and cash equivalents, beginning of period	57,603	18,682
Cash and cash equivalents, end of period	24,884	46,904
Supplemental disclosures of cash flow information
Cash paid (refunded) during the period for: Interest	8,382	5,538
Cash paid (refunded) during the period for: Income taxes	1	(232)
Right-of-use assets obtained in exchange for lease obligations- Operating leases	432	141
Right-of-use assets obtained in exchange for lease obligations- Financing leases	526	251
Accounts payable, and accrued expenses for capital expenditures for plant, equipment and leasehold improvements	$ 256	$ 345

Business Overview and Summary o

Business Overview and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Business Overview and Summary of Significant Accounting Policies
Business Overview and Summary of Significant Accounting Policies	CPI Card Group Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Dollars in Thousands, Except Share and Per Share Amounts or as Otherwise Indicated) (Unaudited) 1. Business Overview and Summary of Significant Accounting Policies Business Overview CPI Card Group Inc. (which, together with its subsidiary companies, is referred to herein as “CPI” or the “Company”) is a payment technology company and leading provider of comprehensive Financial Payment Card solutions in the United States. CPI is engaged in the design, production, data personalization, packaging and fulfillment of “Financial Payment Cards,” which the Company defines as credit, debit and Prepaid Debit Cards issued on the networks of the “Payment Card Brands” (Visa, Mastercard ® , American Express ® and Discover ® in the United States and Interac, in Canada). The Company defines “Prepaid Debit Cards” as debit cards issued on the networks of the Payment Card Brands, but not linked to a traditional bank account. CPI also offers an instant card issuance solution, which provides banks the ability to issue a personalized debit or credit card within the bank branch to individual cardholders. CPI serves its customers through a network of high-security production and card services facilities in the United States, each of which is audited for compliance with the standards of the Payment Card Industry Security Standards Council (the “PCI Security Standards Council”) by one or more of the Payment Card Brands. CPI’s leading network of high-security production facilities allows the Company to optimize its solutions offerings and effectively meet customers needs. COVID-19 Update The COVID-19 pandemic has impacted economies and societies globally. The long-term implications of COVID-19 on the Company’s results of operations and overall financial performance remain uncertain. The health and safety of CPI employees remain paramount, and the Company continues to follow response protocols based on precautions and other appropriate measures recommended by the Centers for Disease Control and Prevention, as well as various state and local executive orders, health orders and guidelines.  The Company believes the global impacts from COVID-19 have contributed to certain adverse effects on its supply chain including access to, and higher pricing of, certain raw materials which may continue in the future. CPI closely monitors its supply chain and has purchased and may continue to purchase additional inventory to help mitigate potential supply chain constraints. The current economic environment has affected the available labor pool in the areas in which the Company operates which may result in increased labor cost and turnover in our facilities. The Company will continue to monitor and respond as the situation evolves. All of CPI’s operations have remained open and continue to provide direct and essential support to the financial services industry. See Item 1A, Risk Factors , in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (the “SEC”) for further discussion of the possible impact of the COVID-19 pandemic on our business. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, changes in net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitation and technical corrections to tax depreciation methods for qualified improvement property. Refer to Note 11 “Income Taxes” for a discussion of the CARES Act income tax impacts on the Company. In addition, CPI deferred employer social security payments in 2020 in accordance with the CARES Act. While the Company is participating in certain programs under the CARES Act, the CARES Act and its guidance are subject to change. Basis of Presentation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The condensed consolidated balance sheet as of December 31, 2020 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Discontinued Operations On August 3, 2018, the Company completed the sale of its three facilities in the United Kingdom that produced retail cards, such as gift and loyalty cards, for customers in the United Kingdom and continental Europe, and provided personaliz ation, packaging and fulfillment services. The facilities sold included Colchester, Liverpool and Derby locations. The Company reported the U.K. Limited reporting segment as discontinued operations in accordance with GAAP. The Company did not retain significant continuing involvement with the discontinued operations subsequent to the disposal. The impact of the discontinued operations was insignificant to the Company’s condensed consolidated statement of operations for the three months ended March 31, 2020. Use of Estimates Management uses estimates and assumptions relating to the reporting of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the preparation of the condensed consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, liability for sales tax, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed and uncertain tax positions. Actual results could differ from those estimates. Recent Accounting Standards Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This ASU changes the model for the recognition of credit losses from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires the Company to estimate the total credit losses expected on the portfolio of financial instruments. The effective date of ASU 2016-13 was amended by ASU 2019-10 , Credit Losses Effective Dates. Since CPI is a smaller reporting company, adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2022, and interim periods therein, with early adoption permi tted. The Company has elected not to early adopt this accounting standard in the current fiscal year 2021. The Company is evaluating the impact of adoption of this standard and does not anticipate the application of ASU 2016-13 will have a material impact on the Company’s consolidated financial position and results of operations. Adjustment of Prior Period Financial Statements for Immaterial Items In accordance with Securities and Exchange Commission Staff Accounting Bulletin 99, Materiality, codified in Accounting Standards Codification (“ASC”) 250, Presentation of Financial Statements , during the year ended December 31, 2020, the Company corrected two immaterial items relating to estimated sales tax expense and depreciation expense for prior periods presented by revising the condensed consolidated financial statements and other financial information included herein. For the quarter ended March 31, 2020, the total impact of the prior period adjustment was an increase to “Selling, General and Administrative expenses” (“SG&A”) of $121 for estimated sales tax expense and an increase to “Cost of sales” of $62 for depreciation expense. The total impact on prior fiscal years 2017 to 2019 was an increase to SG&A for estimated sales tax expense of $1,907 and an increase to “Cost of sales” for depreciation expense of $476. Refer to Note 14, “Commitments and Contingencies” for additional discussion of the estimated sales tax liability recorded in “Accrued expenses” on the condensed consolidated balance sheet.

Net Sales

Net Sales	3 Months Ended
	Mar. 31, 2021
Net Sales.
Net Sales	2. Net Sales The Company disaggregates its net sales by major source as follows: Three Months Ended March 31, 2021 Products Services Total Debit and Credit $ 47,179 $ 22,638 $ 69,817 Prepaid Debit — 19,458 19,458 Intersegment eliminations (166) (17) (183) Total $ 47,013 $ 42,079 $ 89,092 Three Months Ended March 31, 2020 Products Services Total Debit and Credit $ 42,911 $ 16,928 $ 59,839 Prepaid Debit — 14,540 14,540 Intersegment eliminations (410) — (410) Total $ 42,501 $ 31,468 $ 73,969 Products Net Sales “Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are manufactured for specific customers and have no alternative use and the Company has an enforceable right to payment for work performed. For work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” net sales are manufactured Financial Payment Cards, including contact-EMV ® , contactless dual-interface EMV, contactless and magnetic stripe cards, our eco-focused solutions including Second Wave and Earthwise TM “high content” upcycled plastic cards, metal cards, private label credit cards and retail gift cards. Card Once ® printers and consumables are also included in “Products” net sales, and their associate d revenues are recognized at the time of shipping. The Company includes gross shipping and handling revenue in net sales, and shipping and handling costs in cost of sales. EMV ® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMV Co, LLC . Services Net Sales Net sales are recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, including CPI On-Demand ® personalization, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers and software-as-a-service personalization of instant issuance debit and credit cards. The Company also generates “Services” net sales from usage-fees generated from the Company’s patented card design software, known as MYCA TM , which provides customers and cardholders the ability to design cards on the internet and customize cards with individualized digital images. As applicable, for work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Customer Contracts The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606, Revenue from Contracts with Customers , is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2021
Accounts Receivable
Accounts Receivable	3. Accounts Receivable Accounts receivable consisted of the following: March 31, 2021 December 31, 2020 Trade accounts receivable $ 49,708 $ 44,305 Unbilled accounts receivable 11,008 10,576 60,716 54,881 Less allowance for doubtful accounts (237) (289) $ 60,479 $ 54,592

Inventories

Inventories	3 Months Ended
	Mar. 31, 2021
Inventories
Inventories	4 . Inventories Inventories consisted of the following: March 31, 2021 December 31, 2020 Raw materials $ 31,802 $ 23,009 Finished goods 4,727 4,635 Inventory reserve (3,039) (2,848) $ 33,490 $ 24,796

Plant, Equipment, Leasehold Imp

Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets	3 Months Ended
	Mar. 31, 2021
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets	5. Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets Plant, equipment, leasehold improvements and operating lease right-of-use assets consisted of the following: March 31, 2021 December 31, 2020 Machinery and equipment $ 57,714 $ 55,459 Machinery and equipment under financing leases 9,858 9,974 Furniture, fixtures and computer equipment 4,331 4,410 Leasehold improvements 13,896 15,083 Construction in progress 1,381 2,386 87,180 87,312 Less accumulated depreciation and amortization (55,925) (55,092) Operating lease right-of-use assets, net of accumulated amortization 6,933 7,183 $ 38,188 $ 39,403 Depreciation expense of plant, equipment and leasehold improvements, including depreciation of assets under financing leases, was $3,073 and $3,091 for the three months ended March 31, 2021 and 2020, respectively. Operating lease right-of-use assets, net of accumulated amortization, are further described in Note 9, Financing and Operating Leases.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2021
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	6. Goodwill and Other Intangible Assets The Company reports all of its goodwill in the Debit and Credit segment at March 31, 2021 and December 31, 2020. Goodwill is tested for impairment at least annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. The Company did not identify a triggering event requiring a quantitative test for impairment as of March 31, 2021. Intangible assets consist of customer relationships, technology and software and trademarks. Intangible amortization expense was $1,149 and $1,149 for the three months ended March 31, 2021 and 2020, respectively. At March 31 , 2021 and December 31, 2020, intangible assets, excluding goodwill, were comprised of the following: March 31, 2021 December 31, 2020 Weighted Average Accumulated Net Book Accumulated Net Book Life (Years) Cost Amortization Value Cost Amortization Value Customer relationships 17.2 $ 55,454 $ (32,961) $ 22,493 $ 55,454 (32,141) $ 23,313 Technology and software 8 7,101 (6,113) 988 7,101 (5,881) 1,220 Trademarks 8.7 3,330 (1,753) 1,577 3,330 (1,656) 1,674 Intangible assets subject to amortization $ 65,885 $ (40,827) $ 25,058 $ 65,885 $ (39,678) $ 26,207 The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of March 31, 2021 was as follows: 2021 (excluding the three months ended March 31, 2021) $ 3,203 2022 3,867 2023 3,867 2024 3,630 2025 3,440 Thereafter 7,051 $ 25,058

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2021
Fair Value of Financial Instruments
Fair Value of Financial Instruments	7. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, the Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:  Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.  Level 2— Observable inputs other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities.  Level 3— Valuations based on unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The Company’s financial assets and liabilities that are not required to be re-measured at fair value in the condensed consolidated balance sheets were as follows: Carrying Estimated Value as of Fair Value as of Fair Value Measurement at March 31, 2021 March 31, March 31, (Using Fair Value Hierarchy) 2021 2021 Level 1 Level 2 Level 3 Liabilities: Senior Notes $ 310,000 $ 324,725 $ — $ 324,725 $ — ABL Revolver $ 15,000 $ 15,000 $ — $ 15,000 $ — Carrying Estimated Value as of Fair Value as of Fair Value Measurement at December 31, 2020 December 31, December 31, (Using Fair Value Hierarchy) 2020 2020 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ 312,500 $ 287,500 $ — $ 287,500 $ — Senior Credit Facility 30,000 30,000 $ — $ — $ 30,000 The aggregate fair value of the Company’s Senior Notes (as defined in Note 10, Long-Term Debt) was based on bank quotes. The fair value measurement associated with the ABL Revolver (as defined in Note 10, Long-Term Debt) approximates its carrying value as of March 31, 2021, given the close proximity to the date the Company entered into the credit facility on March 15, 2021, and the applicable interest rates and nature of the security interest in Company assets. The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable each approximate fair value.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2021
Accrued Expenses.
Accrued Expenses	8. Accrued Expenses Accrued expenses consisted of the following: March 31, 2021 December 31, 2020 Accrued payroll and related employee expenses $ 5,007 $ 4,938 Accrued employee performance bonus 2,117 4,873 Employer payroll tax, including social security deferral 2,794 3,034 Accrued rebates 1,668 1,178 Sales tax liability 1,805 1,696 Accrued interest 1,262 4,145 Operating and financing lease liability (current portion) 4,016 4,407 Other 3,949 3,878 Total accrued expenses $ 22,618 $ 28,149 The estimated sales tax liability is further described in Note 14, Commitments and Contingencies and Note 1, Business Overview and Summary of Significant Accounting Policies.

Financing and Operating Leases

Financing and Operating Leases	3 Months Ended
	Mar. 31, 2021
Financing and Operating Leases
Financing and Operating Leases	9. Financing and Operating Leases Right-of-use (“ROU”) represents the right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. A lease is deemed to exist when the Company has the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration paid. The right to control is deemed to occur when the Company has the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets. The components of operating and finance lease costs were as follows: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Operating lease costs $ 509 $ 671 Variable lease costs 164 173 Short-term operating lease costs 172 - Total expense from operating leases $ 845 $ 844 Finance lease cost: Right-of-use amortization expense Interest on lease liabilities Total financing lease costs $ 506 $ 456 The following table reflects balances for operating and financing leases: March 31, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets, net of amortization $ 6,933 $ 7,183 Operating lease liability (current) $ 1,958 $ 2,267 Long-term operating liability 5,540 5,491 Total operating lease liabilities $ 7,498 $ 7,758 Financing leases Property, equipment and leasehold improvements $ 9,858 $ 9,974 Accumulated depreciation (2,086) (2,422) Total property, equipment and leasehold improvements, net $ 7,772 $ 7,552 Financing lease liability (current) $ 2,058 $ 2,140 Long-term financing liability 3,050 3,052 Total financing lease liabilities $ 5,108 $ 5,192 Finance and operating lease ROU assets are recorded in “Plant, equipment, leasehold improvements, and operating lease right-of-use assets, net.” Financing and operating lease liabilities are recorded in “Accrued expenses” and “Other long-term liabilities.” Future cash payment with respect to lease obligations as of March 31, 2021 were as follows: Operating Financing Lease Leases 2021 (excluding the three months ended March 31, 2021) 2,022 1,856 2022 1,782 2,112 2023 1,643 1,176 2024 1,442 366 2025 862 107 Thereafter 1,808 26 Total lease payments 9,559 5,643 Less imputed interest (2,061) (535) Total $ 7,498 $ 5,108

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2021
Long-Term Debt.
Long-Term Debt	10. Long-Term Debt At March 31, 2021 and December 31, 2020, long-term debt consisted of the following: Interest March 31, December 31, Rate (1) 2021 2020 Senior Notes 8.625 % $ 310,000 $ — ABL Revolver 1.356 % 15,000 — First Lien Term Loan 5.500 % — 312,500 Senior Credit Facility 9.500 % — 30,000 Unamortized deferred financing costs (7,497) (3,804) Unamortized discount — (1,988) Total long-term debt $ 317,503 $ 336,708 Less current maturities — (8,027) Long-term debt, net of current maturities $ 317,503 $ 328,681 (1 ) The Senior Notes bear interest at a fixed rate. The variable interest rate on the ABL Revolver was 1.356% as of March 31, 2021. The variable interest rate on the First Lien Term Loan and Senior Credit Facility was 5.5% and 9.5%, respec tively, as of December 31, 2020. On March 15, 2021, the Company completed a private offering by its wholly-owned subsidiary, CPI CG Inc. (the “Issuer”), of $310,000 aggregate principal amount of 8.625% senior secured notes due 2026 (the “Senior Notes”) and related guarantees. The notes and related guarantees were offered and sold in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States to certain non-U.S. persons in compliance with Regulation S under the Securities Act. In addition, the Company and CPI CG Inc. as borrower entered into a credit agreement with Wells Fargo Bank, National Association, as lender, administrative agent and collateral agent, providing for an asset-based, senior secured revolving credit facility of up to $50,000 (the “ABL Revolver”). In connection with the issuance of the Senior Notes and entry into the ABL Revolver, the Company terminated its existing credit facilities consisting of a $30,000 senior credit agreement, dated as of March 6, 2020, among the Company, CPI CG Inc., as borrower, the lenders party thereto and Guggenheim Credit Services, LLC as administrative agent and collateral agent (the “Senior Credit Facility”), and a $435,000 first lien term loan (the “First Lien Term Loan”), dated as of August 17, 2015 as amended, among the Company, the borrower, the lenders party thereto, GLAS USA LLC, as administrative agent and GLAS Americas LLC, as collateral agent . Net proceeds from the Senior Notes, together with cash on hand and initial borrowings of $15,000 under the ABL Revolver, were used to pay in full and terminate the Senior Credit Facility and First Lien Term Loan on March 15, 2021, and to pay related fees and expenses. As of March 15, 2021, the Company had outstanding borrowings of $30,000, plus accrued and unpa id interest, under the Senior Credit Facility, and $304,746, plus accrued and unpaid interest, under the First Lien Term Loan. In addition, early termination of the Senior Credit Facility required payment of a “make-whole” premium of $2,635 as an early termination penalty, which was paid on March 15, 2021, and recorded as interest expense on the condensed consolidated statement of comprehensive income for the three months ended March 31, 2021. The Senior Notes bear interest at a rate of 8.625% per annum and mature on March 15, 2026. Interest is payable on the Senior Notes on March 15 and September 15 of each year, beginning on September 15, 2021. The ABL Revolver matures on the earliest to occur of March 15, 2026 and the date that is 90 days prior to the maturity of the Senior Notes. Borrowings under the ABL Revolver bear interest at a rate per annum that ranges from the LIBOR Rate plus 1.25% to the LIBOR Rate plus 1.75%, or the Base Rate plus 0.25% to the Base Rate plus 0.75%, based on the average daily borrowing capacity under the ABL Revolver over the most recently completed month. The Company may elect to apply either the LIBOR Rate or Base Rate interest to borrowings at its discretion. The unused portion of the ABL Revolver commitment accrues a commitment fee, which ranges from 0.375% to 0.50% per annum, based on the average daily borrowing capacity under the ABL Revolver over the immediately preceding month. The Senior Notes are guaranteed by the Company and certain of its current and future wholly-owned domestic subsidiaries (other than the Issuer) that guarantee the ABL Revolver, and are secured by substantially all of the assets of the Issuer and the guarantors, subject to customary exceptions. The ABL Revolver is guaranteed by the Company and its subsidiaries (other than the Issuer and excluded subsidiaries), and is secured by substantially all of the assets of the Issuer and the guarantors, subject to customary exceptions. The Senior Notes and the ABL Revolver contain covenants limiting the ability of the Company, the Issuer and the Company’s restricted subsidiaries to, among other things, incur or guarantee additional debt or issue disqualified stock or certain preferred stock; create or incur liens; pay dividends, redeem stock or make other distributions; make certain investments; create restrictions on the ability of the Issuer and its restricted subsidiaries to pay dividends to the Company or make other intercompany transfers; transfer or sell assets; merge or consolidate; and enter into certain transactions with affiliates, subject to a number of important exceptions and qualifications as set forth in the respective agreements. The Company may have obligations to make an offer to repay the Senior Notes, requiring prepayment in advance of the maturity date, upon the occurrence of certain events including a change of control, certain asset sales and based on an annual excess cash flow calculation. The annual excess cash flow calculation is determined pursuant to the terms of that certain Indenture, dated as of March 15, 2021, by and among Issuer, the Company, the subsidiary guarantors and U.S. Bank National Association, with any required prepayments to be made after the issuance of the Company’s annual financial statements. As of December 31, 2020, $8,027 of debt principal was classified as a current liability as a result of an excess free cash flow calculation for 2020 pursuant to the terms of the Senior Credit Facility and the First Lien Term Loan. The Company offered to prepay the balance, pursuant to the terms of the Senior Credit Facility and the First Lien Term Loan, which resulted in a required principal prepayment of $7,754 to the First Lien Term Loan lenders on March 4, 2021, plus accrued interest thereon. Deferred Financing Costs and Discount Certain costs and discounts incurred with borrowings or the establishment or modification of credit facilities are reflected as a reduction to the long-term debt balance. These costs are amortized as an adjustment to interest expense over the life of the borrowing using the effective-interest rate method. The debt issuance costs recorded on the Senior Notes were $7,558 and are reported as a reduction to the long-term debt balance in the quarter ended March 31, 2021. The net discount and debt issuance costs on the ABL Revolver were $2,144 and are recorded as other assets (current and long term) on the condensed consolidated balance sheet as of March 31, 2021. During the three months ended March 31, 2021, the Company recorded a $5,048 loss on debt extinguishment relating to the unamortized deferred financing costs and debt discount in connection with the termination of the Senior Credit Facility and First Lien Term Loan.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Taxes
Income Taxes	11. Income Taxes During the three months ended March 31, 2021 , the Company recognized an income tax expense of $1,360 on a pre-tax income of $3,770, representing an effective income tax rate of 36.1%. For the three months ended March 31, 2020, the Company recognized an income tax benefit of $465 on a pre-tax income of $1,317, representing an effective income tax rate of (35.3)%. For the three months ended March 31, 2021 and 2020, the effective tax rate differs from the U.S. federal statutory income tax rate as follows: March 31, 2021 2020 Tax at federal statutory rate % 21.0 % State taxes, net 46.0 Valuation allowance 100.6 Permanent items 47.9 Tax benefit CARES Act (250.9) Other (0.6) 0.1 Effective income tax rate 36.1 % (35.3) % In March 2020, the CARES Act was signed into law. The CARES Act allows companies with net operating losses (“NOLs”) originating in 2018, 2019, or 2020 to carry back those losses for five years and temporarily eliminates the tax law provision that limits the use of NOLs to 80% of taxable income. The CARES Act increases the Internal Revenue Code Section 163(j) interest deduction limit for 2019 and 2020, and allows for the acceleration of refunds of alternative minimum tax credits. For the three months ended March 31, 2020 , the Company recorded an estimated tax benefit for certain provisions in the CARES Act including the carryback of losses and the increase to the interest deduction limitation, resulting in a tax rate benefit of 250.9%. The Company’s income tax receivable on the condensed consolidated balance sheet as of March 31, 2021, relates primarily to U.S. federal income tax receivables relating to prior tax years, including NOL carrybacks relating to the CARES Act income tax refund. The Company believes that it is reasonably possible that approximately $852 of its unrecognized tax benefits may be recognized in the next one year period as a result of settlement with the taxing authorities. As such, this balance is reflected in “Accrued expenses” in the Company’s condensed consolidated balance sheet as of March 31, 2021.

Stockholders' Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2021
Stockholders’ Deficit
Stockholders’ Deficit	12. Stockholders’ Deficit Common Stock Common Stock has a par value of $0.001 per share. Holders of Common Stock are entitled to receive dividends and distributions subject to the participation rights of holders of all classes of stock at the time outstanding, as such holders may have prior rights as to dividends pursuant to the rights of any series of Preferred Stock. Upon any liquidation, dissolution or winding up of the Company, after required payments are made to holders of any series of Preferred Stock, any remaining assets of the Company will be distributed ratably to the holders of Common Stock. Holders of Common Stock are entitled to one vote per share.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2021
Earnings per Share
Earnings per Share	13. Earnings per Share Basic and diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2021 2020 Numerator: Net income from continuing operations 2,410 1,782 Net loss from discontinued operations — (26) Net income $ 2,410 $ 1,756 Denominator: Basic weighted-average common shares outstanding 11,230,482 11,224,500 Dilutive shares 408,533 37,859 Diluted weighted-average common shares outstanding 11,639,015 11,262,359 Earnings per share from continuing operations - Basic and Diluted: 0.21 Earnings (loss) per share from discontinued operations - Basic and Diluted: — (0.00) Earnings per share - Basic and Diluted: $ 0.21 $ 0.16

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies Commitments Refer to Note 9 “Financing and Operating Leases” for details on the Company’s future cash payments with respect to financing and operating leases. During the normal course of business, the Company enters into non-cancellable agreements to purchase goods and services, including production equipment and information technology systems. The Company leases real property for its facilities under non-cancellable operating lease agreements. Land and facility leases expire at various dates between 2022 and 2028 and contain various provisions for rental adjustments and renewals. The leases typically require the Company to pay property taxes, insurance and normal maintenance costs. Contingencies In accordance with applicable accounting guidance, the Company establishes an accrued liability when loss contingencies are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount of expense. The Company expenses professional fees associated with litigation claims and assessments as incurred. Smart Packaging Solutions SA v. CPI Card Group Inc. On April 20, 2021, Smart Packaging Solutions, SA (“SPS”) filed a patent infringement lawsuit against the Company in the United States District Court for the District of Delaware seeking an unspecified amount of damages and equitable relief. In the complaint, SPS alleges that the Company infringed four patents that SPS has exclusively licensed from Feinics AmaTech Teoranta. The patents all relate to antenna technology. SPS alleges that the Company incorporates the patented technology into its products that use contactless communication. The Company does not manufacture antennas; it purchases certain antenna-related components from SPS and a number of other suppliers. The Company has not been formally served with the complaint and thus has not yet filed an answer. The Company intends to investigate and pursue its rights relating to the claims and to defend the suit vigorously. However, no assurance can be given that this matter will be resolved favorably. Accordingly, it is not yet possible to reliably determine any potential liability that could result from this matter in the event of an adverse determination, and no liability has been recorded as of March 31, 2021 or December 31, 2020. In addition to the matter described above, the Company may be subject to routine legal proceedings in the ordinary course of business. The Company believes that the ultimate resolution of any such matters will not have a material adverse effect on its business, financial condition or results of operations. Estimated Sales Tax Liability The Company is evaluating a state sales tax liability analysis for states in which it has economic nexus and collecting exemption documentation from its customers. It is probable that the Company will be subject to sales tax liabilities plus interest and penalties relating to historical activity in certain states. The estimated liability for sales tax as of March 31, 2021 and December 31, 2020 was $1,805 and $1,696, respectively, and is recorded in a ccrued expenses in the condensed consolidated balance sheets. The liability increased from the estimate recorded in the prior period due to ongoing activity. In addition, as the Company remits cash to the applicable state tax authorities for historical sales tax and interest, the liability balance will decrease. Due to the estimates involved in the analysis, the Company expects that the estimated liability will change in the future, and may exceed the current estimate. The Company also may be subject to examination by the relevant state tax authorities. Sales tax recovered from customers reduces the estimated expense when it is received or probable of collection . Future changes to the liability that impact the condensed consolidated statements of operations will be recorded within “Selling, general, and administrative expenses.”

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2021
Stock Based Compensation
Stock Based Compensation	15. Stock-Based Compensation CPI Card Group Inc. Omnibus Incentive Plan In October 2015, the Company adopted the CPI Card Group Inc. Omnibus Incentive Plan (the “Omnibus Plan”) pursuant to which cash and equity based incentives may be granted to participating employees, advisors and directors. The Company had reserved 1,200,000 shares of common stock for issuance under the Omnibus Plan. As of March 31, 2021, there were 185,113 shares available for grant under the Omnibus Plan. During the three months ended March 31, 2021, and during the fiscal year ended December 31, 2020, the Company did not grant any awards of non-qualified stock options. The following is a summary of the activity in outstanding stock options under the Omnibus Plan: Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of December 31, 2020 706,372 $ 6.44 Forfeited — - - Outstanding as of March 31, 2021 706,372 $ 6.19 Options vested and exercisable as of March 31, 2021 670,876 $ 6.12 Options vested and expected to vest as of March 31, 2021 706,372 $ 6.19 The following is a summary of the activity in unvested stock options under the Omnibus Plan: Weighted-Average Options Grant-Date Fair Value Unvested as of December 31, 2020 45,319 $ 1.10 Vested (9,823) 1.79 Unvested as of March 31, 2021 35,496 $ 0.91 Unvested stock options of 35,496 as of March 31, 2021 will vest entirely in 2021. The following table summarizes the changes in the number of outstanding restricted stock units: Weighted- Average Weighted- Remaining Average Amortization Grant-Date Period Shares Fair Value (in Years) Outstanding as of December 31, 2020 180,001 $ 2.12 Forfeited — Outstanding as of March 31, 2021 180,001 $ 2.12 1.50 The Company granted 180,001 restricted stock units to employees on October 2, 2020. The restricted stock unit awards contain conditions associated with continued employment or service and vest two years from the date of grant. On the vesting date, shares of common stock will be issued to the award recipients. Unvested restricted stock units of 180,001 as of March 31, 2021 will vest entirely in October 2022. Compensation expense for the Omnibus Plan for the three months ended March 31, 2021 and 2020 was $51 and $41, respectively. As of March 31, 2021, the total unrecognized compensation expense related to unvested options and restricted stock units is $289, which the Company expects to recognize over an estimated weighted-average period of approximately 1.5 years.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2021
Segment Reporting
Segment Reporting	16. Segment Reporting The Company has identified reportable segments as those consolidated subsidiaries that represent 10% or more of its net sales, EBITDA (as defined below) or total assets, or when the Company believes information about the segment would be useful to the readers of the financial statements. The Company’s chief operating decision maker is its Chief Executive Officer who is charged with management of the Company and is responsible for the evaluation of operating performance and decision making about the allocation of resources to operating segments based on measures, such as net sales and EBITDA. EBITDA is the primary measure used by the Company’s chief operating decision maker to evaluate segment operating performance. As the Company uses the term, EBITDA is defined as income before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure and is useful as a supplement to GAAP measures as it represents a transparent view of the Company’s operating performance that is unaffected by fluctuations in property, equipment and leasehold improvement additions. The Company’s chief operating decision maker uses EBITDA to perform periodic reviews and comparison of operating trends and to identify strategies to improve the allocation of resources amongst segments. As of March 31, 2021 , the Company’s reportable segments were as follows:  Debit and Credit;  Prepaid Debit; and  Other. Debit and Credit Segment The Debit and Credit segment primarily produces Financial Payment Cards and provides integrated card services, including card personalization and fulfilment services, to card-issuing banks primarily in the United States. Products manufactured by this segment primarily include EMV and non-EMV Financial Payment Cards, including contact and contactless dual-interface cards, and plastic and encased metal cards, and our eco-focused solutions including Second Wave payment cards featuring a core made with recovered ocean bound plastic and Earthwise “high content” plastic cards . The Company also sells Card Once instant card issuance solutions, and private label credit cards that are not issued on the networks of the Payment Cards Brands. The Company provides CPI On-Demand services, where images, personalized payment cards, and related collateral are produced on a one-by-one, on demand basis for customers. The Debit and Credit segment operations are each audited for compliance by multiple Payment Card Brands. Prepaid Debit Segment The Prepaid Debit segment primarily provides integrated card services to Prepaid Debit Card providers in the United States, including tamper-evident security packaging. This segment also produces Financial Payment Cards issued on the networks of the Payment Card Brands that are included in the tamper-evident security packages. The Prepaid Debit segment facilities are audited for compliance with the standards of the PCI Security Standards Council by multiple Payment Card Brands. Other The Other segment includes corporate expenses and the loss on debt extinguishment. Performance Measures of Reportable Segments Net Sales and EBITDA of the Company’s reportable segments for the three months ended March 31, 2021 and 2020, were as follows: Net Sales Three Months Ended March 31, 2021 2020 Debit and Credit $ 69,817 $ 59,839 Prepaid Debit 19,458 14,540 Intersegment eliminations (183) (410) Total $ 89,092 $ 73,969 EBITDA Three Months Ended March 31, 2021 2020 Debit and Credit $ 22,400 $ 14,959 Prepaid Debit 7,573 4,660 Other (13,005) (7,974) Total $ 16,968 $ 11,645 The following table provides a reconciliation of total segment EBITDA to net income for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Total segment EBITDA $ 16,968 $ 11,645 Interest, net (8,976) (6,088) Income tax (expense) benefit (1,360) 465 Depreciation and amortization (4,222) (4,240) Net loss from discontinued operations — (26) Net income $ 2,410 $ 1,756 Balance Sheet Data of Reportable Segments Total assets of the Company’s reportable segments at March 31, 2021 and December 31, 2020, were as follows: March 31, 2021 December 31, 2020 Debit and Credit $ 200,341 $ 215,846 Prepaid Debit 37,926 34,734 Other 8,027 15,571 Total assets $ 246,294 $ 266,151 Net Sales to Geographic Locations, Property, Equipment and Leasehold Improvements and Long-Lived Assets The Company’s Net Sales, Property, Equipment and Leasehold Improvements, and Long-Lived assets relating to geographic locations outside of the United States is insignificant.

Business Overview and Summary_2

Business Overview and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Business Overview and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The condensed consolidated balance sheet as of December 31, 2020 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Discontinued Operations	Discontinued Operations On August 3, 2018, the Company completed the sale of its three facilities in the United Kingdom that produced retail cards, such as gift and loyalty cards, for customers in the United Kingdom and continental Europe, and provided personaliz ation, packaging and fulfillment services. The facilities sold included Colchester, Liverpool and Derby locations. The Company reported the U.K. Limited reporting segment as discontinued operations in accordance with GAAP. The Company did not retain significant continuing involvement with the discontinued operations subsequent to the disposal. The impact of the discontinued operations was insignificant to the Company’s condensed consolidated statement of operations for the three months ended March 31, 2020.
Use of Estimates	Use of Estimates Management uses estimates and assumptions relating to the reporting of assets and liabilities at the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the preparation of the condensed consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, liability for sales tax, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed and uncertain tax positions. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Standards Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This ASU changes the model for the recognition of credit losses from an incurred loss model, which recognized credit losses only if it was probable that a loss had been incurred, to an expected loss model, which requires the Company to estimate the total credit losses expected on the portfolio of financial instruments. The effective date of ASU 2016-13 was amended by ASU 2019-10 , Credit Losses Effective Dates. Since CPI is a smaller reporting company, adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2022, and interim periods therein, with early adoption permi tted. The Company has elected not to early adopt this accounting standard in the current fiscal year 2021. The Company is evaluating the impact of adoption of this standard and does not anticipate the application of ASU 2016-13 will have a material impact on the Company’s consolidated financial position and results of operations.
Adjustment of Prior Period Financial Statements for Immaterial Items	Adjustment of Prior Period Financial Statements for Immaterial Items In accordance with Securities and Exchange Commission Staff Accounting Bulletin 99, Materiality, codified in Accounting Standards Codification (“ASC”) 250, Presentation of Financial Statements , during the year ended December 31, 2020, the Company corrected two immaterial items relating to estimated sales tax expense and depreciation expense for prior periods presented by revising the condensed consolidated financial statements and other financial information included herein. For the quarter ended March 31, 2020, the total impact of the prior period adjustment was an increase to “Selling, General and Administrative expenses” (“SG&A”) of $121 for estimated sales tax expense and an increase to “Cost of sales” of $62 for depreciation expense. The total impact on prior fiscal years 2017 to 2019 was an increase to SG&A for estimated sales tax expense of $1,907 and an increase to “Cost of sales” for depreciation expense of $476. Refer to Note 14, “Commitments and Contingencies” for additional discussion of the estimated sales tax liability recorded in “Accrued expenses” on the condensed consolidated balance sheet.

Net Sales (Tables)

Net Sales (Tables)	3 Months Ended
	Mar. 31, 2021
Net Sales.
Schedule of disaggregation of net sales by major source	Three Months Ended March 31, 2021 Products Services Total Debit and Credit $ 47,179 $ 22,638 $ 69,817 Prepaid Debit — 19,458 19,458 Intersegment eliminations (166) (17) (183) Total $ 47,013 $ 42,079 $ 89,092 Three Months Ended March 31, 2020 Products Services Total Debit and Credit $ 42,911 $ 16,928 $ 59,839 Prepaid Debit — 14,540 14,540 Intersegment eliminations (410) — (410) Total $ 42,501 $ 31,468 $ 73,969

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2021
Accounts Receivable
Schedule of accounts receivable	March 31, 2021 December 31, 2020 Trade accounts receivable $ 49,708 $ 44,305 Unbilled accounts receivable 11,008 10,576 60,716 54,881 Less allowance for doubtful accounts (237) (289) $ 60,479 $ 54,592

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2021
Inventories
Schedule of inventories	March 31, 2021 December 31, 2020 Raw materials $ 31,802 $ 23,009 Finished goods 4,727 4,635 Inventory reserve (3,039) (2,848) $ 33,490 $ 24,796

Plant, Equipment, Leasehold I_2

Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets
Schedule of plant, equipment, leasehold improvements and operating lease right-to-use assets	March 31, 2021 December 31, 2020 Machinery and equipment $ 57,714 $ 55,459 Machinery and equipment under financing leases 9,858 9,974 Furniture, fixtures and computer equipment 4,331 4,410 Leasehold improvements 13,896 15,083 Construction in progress 1,381 2,386 87,180 87,312 Less accumulated depreciation and amortization (55,925) (55,092) Operating lease right-of-use assets, net of accumulated amortization 6,933 7,183 $ 38,188 $ 39,403

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill and Other Intangible Assets
Schedule of intangible assets excluding goodwill	March 31, 2021 December 31, 2020 Weighted Average Accumulated Net Book Accumulated Net Book Life (Years) Cost Amortization Value Cost Amortization Value Customer relationships 17.2 $ 55,454 $ (32,961) $ 22,493 $ 55,454 (32,141) $ 23,313 Technology and software 8 7,101 (6,113) 988 7,101 (5,881) 1,220 Trademarks 8.7 3,330 (1,753) 1,577 3,330 (1,656) 1,674 Intangible assets subject to amortization $ 65,885 $ (40,827) $ 25,058 $ 65,885 $ (39,678) $ 26,207
Schedule of future aggregate amortization expense for identified amortizable intangibles	The estimated future aggregate amortization expense for the identified amortizable intangibles noted above as of March 31, 2021 was as follows: 2021 (excluding the three months ended March 31, 2021) $ 3,203 2022 3,867 2023 3,867 2024 3,630 2025 3,440 Thereafter 7,051 $ 25,058

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value of Financial Instruments
Schedule of financial assets and liabilities subject to fair value measurements	The Company’s financial assets and liabilities that are not required to be re-measured at fair value in the condensed consolidated balance sheets were as follows: Carrying Estimated Value as of Fair Value as of Fair Value Measurement at March 31, 2021 March 31, March 31, (Using Fair Value Hierarchy) 2021 2021 Level 1 Level 2 Level 3 Liabilities: Senior Notes $ 310,000 $ 324,725 $ — $ 324,725 $ — ABL Revolver $ 15,000 $ 15,000 $ — $ 15,000 $ — Carrying Estimated Value as of Fair Value as of Fair Value Measurement at December 31, 2020 December 31, December 31, (Using Fair Value Hierarchy) 2020 2020 Level 1 Level 2 Level 3 Liabilities: First Lien Term Loan $ 312,500 $ 287,500 $ — $ 287,500 $ — Senior Credit Facility 30,000 30,000 $ — $ — $ 30,000

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Expenses.
Schedule of Accrued Expenses	March 31, 2021 December 31, 2020 Accrued payroll and related employee expenses $ 5,007 $ 4,938 Accrued employee performance bonus 2,117 4,873 Employer payroll tax, including social security deferral 2,794 3,034 Accrued rebates 1,668 1,178 Sales tax liability 1,805 1,696 Accrued interest 1,262 4,145 Operating and financing lease liability (current portion) 4,016 4,407 Other 3,949 3,878 Total accrued expenses $ 22,618 $ 28,149

Financing and Operating Leases

Financing and Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Financing and Operating Leases
Schedule of operating and finance lease costs	Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Operating lease costs $ 509 $ 671 Variable lease costs 164 173 Short-term operating lease costs 172 - Total expense from operating leases $ 845 $ 844 Finance lease cost: Right-of-use amortization expense Interest on lease liabilities Total financing lease costs $ 506 $ 456
Schedule of balances for operating and financing leases	March 31, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets, net of amortization $ 6,933 $ 7,183 Operating lease liability (current) $ 1,958 $ 2,267 Long-term operating liability 5,540 5,491 Total operating lease liabilities $ 7,498 $ 7,758 Financing leases Property, equipment and leasehold improvements $ 9,858 $ 9,974 Accumulated depreciation (2,086) (2,422) Total property, equipment and leasehold improvements, net $ 7,772 $ 7,552 Financing lease liability (current) $ 2,058 $ 2,140 Long-term financing liability 3,050 3,052 Total financing lease liabilities $ 5,108 $ 5,192
Schedule of future cash payments with respect to lease obligations	Future cash payment with respect to lease obligations as of March 31, 2021 were as follows: Operating Financing Lease Leases 2021 (excluding the three months ended March 31, 2021) 2,022 1,856 2022 1,782 2,112 2023 1,643 1,176 2024 1,442 366 2025 862 107 Thereafter 1,808 26 Total lease payments 9,559 5,643 Less imputed interest (2,061) (535) Total $ 7,498 $ 5,108

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2021
Long-Term Debt.
Schedule of long-term debt	Interest March 31, December 31, Rate (1) 2021 2020 Senior Notes 8.625 % $ 310,000 $ — ABL Revolver 1.356 % 15,000 — First Lien Term Loan 5.500 % — 312,500 Senior Credit Facility 9.500 % — 30,000 Unamortized deferred financing costs (7,497) (3,804) Unamortized discount — (1,988) Total long-term debt $ 317,503 $ 336,708 Less current maturities — (8,027) Long-term debt, net of current maturities $ 317,503 $ 328,681 (1 ) The Senior Notes bear interest at a fixed rate. The variable interest rate on the ABL Revolver was 1.356% as of March 31, 2021. The variable interest rate on the First Lien Term Loan and Senior Credit Facility was 5.5% and 9.5%, respec tively, as of December 31, 2020.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2021
Income Taxes
Schedule of effective income tax rate reconciliation	March 31, 2021 2020 Tax at federal statutory rate % 21.0 % State taxes, net 46.0 Valuation allowance 100.6 Permanent items 47.9 Tax benefit CARES Act (250.9) Other (0.6) 0.1 Effective income tax rate 36.1 % (35.3) %

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings per Share
Computation of basic and diluted earnings per share	Three Months Ended March 31, 2021 2020 Numerator: Net income from continuing operations 2,410 1,782 Net loss from discontinued operations — (26) Net income $ 2,410 $ 1,756 Denominator: Basic weighted-average common shares outstanding 11,230,482 11,224,500 Dilutive shares 408,533 37,859 Diluted weighted-average common shares outstanding 11,639,015 11,262,359 Earnings per share from continuing operations - Basic and Diluted: 0.21 Earnings (loss) per share from discontinued operations - Basic and Diluted: — (0.00) Earnings per share - Basic and Diluted: $ 0.21 $ 0.16

Stock Based Compensation (Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Stock Based Compensation
Summary of outstanding and exercisable stock options	Weighted- Weighted- Average Average Remaining Exercise Contractual Term Options Price (in Years) Outstanding as of December 31, 2020 706,372 $ 6.44 Forfeited — - - Outstanding as of March 31, 2021 706,372 $ 6.19 Options vested and exercisable as of March 31, 2021 670,876 $ 6.12 Options vested and expected to vest as of March 31, 2021 706,372 $ 6.19
Schedule of vesting for unvested options	Weighted-Average Options Grant-Date Fair Value Unvested as of December 31, 2020 45,319 $ 1.10 Vested (9,823) 1.79 Unvested as of March 31, 2021 35,496 $ 0.91
Summary of changes in outstanding restricted stock units	Weighted- Average Weighted- Remaining Average Amortization Grant-Date Period Shares Fair Value (in Years) Outstanding as of December 31, 2020 180,001 $ 2.12 Forfeited — Outstanding as of March 31, 2021 180,001 $ 2.12 1.50

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting
Schedule of revenue and EBITDA of the company's reportable segments	Net Sales Three Months Ended March 31, 2021 2020 Debit and Credit $ 69,817 $ 59,839 Prepaid Debit 19,458 14,540 Intersegment eliminations (183) (410) Total $ 89,092 $ 73,969 EBITDA Three Months Ended March 31, 2021 2020 Debit and Credit $ 22,400 $ 14,959 Prepaid Debit 7,573 4,660 Other (13,005) (7,974) Total $ 16,968 $ 11,645
Schedule of reconciliation of total segment EBITDA to income before taxes	Three Months Ended March 31, 2021 2020 Total segment EBITDA $ 16,968 $ 11,645 Interest, net (8,976) (6,088) Income tax (expense) benefit (1,360) 465 Depreciation and amortization (4,222) (4,240) Net loss from discontinued operations — (26) Net income $ 2,410 $ 1,756
Schedule of total assets of the company's reportable segments	March 31, 2021 December 31, 2020 Debit and Credit $ 200,341 $ 215,846 Prepaid Debit 37,926 34,734 Other 8,027 15,571 Total assets $ 246,294 $ 266,151

Business Overview and Summary_3

Business Overview and Summary of Significant Accounting Policies - Adjustment of Prior Financial Statements for Immaterial Items (Details) $ in Thousands	Aug. 03, 2018facility	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020item	Dec. 31, 2019USD ($)
Adjustment of Prior Period Financial Statements for Immaterial Items
Selling, general and administrative		$ 16,146	$ 16,663
Cost of goods and services sold		2,416	$ 2,755
Number of facilities | facility	3
Revision of 2017 Through 2020 Immaterial Errors
Adjustment of Prior Period Financial Statements for Immaterial Items
Number of immaterial items corrected | item				2
Revision of 2017 Through 2020 Immaterial Errors | Revision of Prior Period Error Correction Adjustment
Adjustment of Prior Period Financial Statements for Immaterial Items
Selling, general and administrative		121			$ 1,907
Cost of goods and services sold		$ 62			$ 476

Net Sales (Details)

Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue
Net Sales	$ 89,092	$ 73,969
Operating Segments | Debit and Credit
Disaggregation of Revenue
Net Sales	69,817	59,839
Operating Segments | Prepaid Debit
Disaggregation of Revenue
Net Sales	19,458	14,540
Intersegment eliminations
Disaggregation of Revenue
Net Sales	(183)	(410)
Products
Disaggregation of Revenue
Net Sales	47,013	42,501
Products | Operating Segments | Debit and Credit
Disaggregation of Revenue
Net Sales	47,179	42,911
Products | Intersegment eliminations
Disaggregation of Revenue
Net Sales	(166)	(410)
Services
Disaggregation of Revenue
Net Sales	42,079	31,468
Services | Operating Segments | Debit and Credit
Disaggregation of Revenue
Net Sales	22,638	16,928
Services | Operating Segments | Prepaid Debit
Disaggregation of Revenue
Net Sales	19,458	$ 14,540
Services | Intersegment eliminations
Disaggregation of Revenue
Net Sales	$ (17)

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts Receivable
Trade accounts receivable	$ 49,708	$ 44,305
Unbilled accounts receivable	11,008	10,576
Accounts receivable, gross	60,716	54,881
Less allowance for doubtful accounts	(237)	(289)
Accounts receivable, net	$ 60,479	$ 54,592

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventories
Raw materials	$ 31,802	$ 23,009
Finished goods	4,727	4,635
Inventory reserve	(3,039)	(2,848)
Inventory	$ 33,490	$ 24,796

Plant, Equipment, Leasehold I_3

Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	$ 87,180		$ 87,312
Less accumulated depreciation and amortization	(55,925)		(55,092)
Operating lease right-of-use assets, net of accumulated amortization	6,933		7,183
Total property, equipment and leasehold improvements, net	38,188		39,403
Depreciation	3,073	$ 3,091
Machinery and equipment
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	57,714		55,459
Machinery and equipment under financing leases
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	9,858		9,974
Furniture, fixtures and computer equipment
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	4,331		4,410
Leasehold improvements
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	13,896		15,083
Construction in progress
Plant, Equipment and Leasehold Improvements
Plant, equipment and leasehold improvements, gross	$ 1,381		$ 2,386

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Intangible Assets
Intangible amortization expense	$ 1,149	$ 1,149
Intangible assets subject to amortization, Gross Book Value	65,885		$ 65,885
Intangible assets subject to amortization, Accumulated Amortization	(40,827)		(39,678)
Intangible assets subject to amortization, Net Book Value	$ 25,058		26,207
Customer relationships
Intangible Assets
Weighted Average Life	17 years 2 months 12 days
Intangible assets subject to amortization, Gross Book Value	$ 55,454		55,454
Intangible assets subject to amortization, Accumulated Amortization	(32,961)		(32,141)
Intangible assets subject to amortization, Net Book Value	$ 22,493		23,313
Technology and software
Intangible Assets
Weighted Average Life	8 years
Intangible assets subject to amortization, Gross Book Value	$ 7,101		7,101
Intangible assets subject to amortization, Accumulated Amortization	(6,113)		(5,881)
Intangible assets subject to amortization, Net Book Value	$ 988		1,220
Trademarks
Intangible Assets
Weighted Average Life	8 years 8 months 12 days
Intangible assets subject to amortization, Gross Book Value	$ 3,330		3,330
Intangible assets subject to amortization, Accumulated Amortization	(1,753)		(1,656)
Intangible assets subject to amortization, Net Book Value	$ 1,577		$ 1,674

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Future Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Estimated future aggregate amortization expense
2021 (excluding the three months ended March 31, 2021)	$ 3,203
2022	3,867
2023	3,867
2024	3,630
2025	3,440
Thereafter	7,051
Intangible assets subject to amortization, Net Book Value	$ 25,058	$ 26,207

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 15, 2021	Dec. 31, 2020
Senior Notes
Liabilities:
Carrying amount	$ 310,000	$ 310,000
ABL Revolver
Liabilities:
Carrying amount	15,000
Level 2 | Senior Notes
Liabilities:
Long-term debt	324,725
Level 2 | ABL Revolver
Liabilities:
Long-term debt	15,000
First Lien Credit Facility
Liabilities:
Carrying amount			$ 312,500
First Lien Credit Facility | Term Loan
Liabilities:
Carrying amount			312,500
First Lien Credit Facility | Level 2 | Term Loan
Liabilities:
Long-term debt			287,500
Senior Credit Facility
Liabilities:
Carrying amount			30,000
Senior Credit Facility | Term Loan
Liabilities:
Carrying amount			30,000
Senior Credit Facility | Level 3 | Term Loan
Liabilities:
Long-term debt			30,000
Estimate of Fair Value | Senior Notes
Liabilities:
Long-term debt	324,725
Estimate of Fair Value | ABL Revolver
Liabilities:
Long-term debt	$ 15,000
Estimate of Fair Value | First Lien Credit Facility | Term Loan
Liabilities:
Long-term debt			287,500
Estimate of Fair Value | Senior Credit Facility | Term Loan
Liabilities:
Long-term debt			$ 30,000

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Expenses.
Accrued payroll and related employee expenses	$ 5,007	$ 4,938
Accrued employee performance bonus	2,117	4,873
Employer payroll tax, including social security deferral	2,794	3,034
Accrued rebates	1,668	1,178
Sales tax liability	1,805	1,696
Accrued interest	1,262	4,145
Operating and financing lease liability (current portion)	4,016	4,407
Other	3,949	3,878
Total accrued expenses	$ 22,618	$ 28,149

Financing and Operating Lease_2

Financing and Operating Leases - Components of Operating and Finance Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating lease cost:
Operating lease costs	$ 509	$ 671
Variable lease costs	164	173
Short-term operating lease costs	172
Total expense from operating leases	845	844
Finance lease cost:
Right-of-use amortization expense	293	327
Interest on lease liabilities	213	129
Total financing lease cost	$ 506	$ 456

Financing and Operating Lease_3

Financing and Operating Leases - Operating and Financing Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases
Operating lease right-of-use assets, net of amortization	$ 6,933	$ 7,183
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant, Equipment and Operating Lease Right-of-Use Asset	Property, Plant, Equipment and Operating Lease Right-of-Use Asset
Operating lease liability (current)	$ 1,958	$ 2,267
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current
Long-term operating liability	$ 5,540	$ 5,491
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total operating lease liabilities	$ 7,498	$ 7,758
Property, equipment and leasehold improvements	87,180	87,312
Accumulated depreciation	(55,925)	(55,092)
Total property, equipment and leasehold improvements, net	38,188	39,403
Financing lease liability (current)	$ 2,058	$ 2,140
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current
Long-term financing liability	$ 3,050	$ 3,052
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total financing lease liabilities	$ 5,108	$ 5,192
Financing leases
Leases
Property, equipment and leasehold improvements	9,858	9,974
Accumulated depreciation	(2,086)	(2,422)
Total property, equipment and leasehold improvements, net	$ 7,772	$ 7,552

Financing and Operating Lease_4

Financing and Operating Leases - Lease Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Operating Leases
2021 (excluding the three months ended March 31, 2021)	$ 2,022
2022	1,782
2023	1,643
2024	1,442
2025	862
Thereafter	1,808
Total operating lease payment	9,559
Less imputed interest	(2,061)
Total operating lease liabilities	7,498	$ 7,758
Financing Leases
2021 (excluding the three months ended March 31, 2021)	1,856
2022	2,112
2023	1,176
2024	366
2025	107
Thereafter	26
Total financing lease payment	5,643
Less imputed interest	(535)
Total financing lease liabilities	$ 5,108	$ 5,192

Long-Term Debt - Long-Term Debt

Long-Term Debt - Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 15, 2021	Dec. 31, 2020
Long-term Debt
Unamortized deferred financing costs	$ (7,497)		$ (3,804)
Unamortized discount			(1,988)
Total long-term debt	317,503		336,708
Less current maturities of long-term debt			(8,027)
Long-term debt, net of current maturities	$ 317,503		$ 328,681
Senior Notes
Long-term Debt
Interest rate (as a percent)	8.625%
Long-term debt	$ 310,000	$ 310,000
ABL Revolver
Long-term Debt
Interest rate (as a percent)	1.356%
Long-term debt	$ 15,000
First Lien Credit Facility
Long-term Debt
Interest rate (as a percent)			5.50%
Long-term debt			$ 312,500
Senior Credit Facility
Long-term Debt
Interest rate (as a percent)			9.50%
Long-term debt			$ 30,000

Long-Term Debt - First Lien Cre

Long-Term Debt - First Lien Credit Facility (Details) - USD ($) $ in Thousands	Mar. 15, 2021	Mar. 04, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Long-term Debt
Proceeds from Revolving Credit Facility			$ 14,750
Amount outstanding					$ 8,027
Loss on debt extinguishment			(5,048)	$ (92)
Senior Notes
Long-term Debt
Interest rate (as a percent)	8.625%
Long-term debt	$ 310,000		$ 310,000
Debt instrument term			90 days
Debi issuance cost			$ 7,558
ABL Revolver
Long-term Debt
Maximum borrowing capacity	50,000
Long-term debt			15,000
Proceeds from Revolving Credit Facility	15,000
Debi issuance cost			$ 2,144
ABL Revolver | Minimum
Long-term Debt
Percentage of commitment fee			0.375%
ABL Revolver | Maximum
Long-term Debt
Percentage of commitment fee			0.50%
ABL Revolver | Base rate | Minimum
Long-term Debt
Applicable margin over reference rate (as a percent)			0.25%
ABL Revolver | Base rate | Maximum
Long-term Debt
Applicable margin over reference rate (as a percent)			0.75%
ABL Revolver | LIBOR | Minimum
Long-term Debt
Applicable margin over reference rate (as a percent)			1.25%
ABL Revolver | LIBOR | Maximum
Long-term Debt
Applicable margin over reference rate (as a percent)			1.75%
First Lien Credit Facility
Long-term Debt
Long-term debt					312,500
Amount outstanding	304,746
Principal prepayment		$ 7,754
First Lien Credit Facility | Term Loan
Long-term Debt
Extinguishment of Debt, Amount			$ 435,000
Long-term debt					312,500
Senior Credit Facility
Long-term Debt
Extinguishment of Debt, Amount			$ 30,000
Long-term debt					30,000
Amount outstanding	30,000
Early termination penalty	$ 2,635
Senior Credit Facility | Term Loan
Long-term Debt
Long-term debt					$ 30,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Taxes
Income tax (expense) benefit	$ (1,360)	$ 465
Income (loss) before income taxes	$ 3,770	$ 1,317
Operating Loss Carryforwards, Period	5 years

Income Taxes - Effective Income

Income Taxes - Effective Income Tax Rate Reconciliation (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Effective Income Tax Rate Reconciliation
Tax at federal statutory rate (as a percent)	21.00%	21.00%
State taxes, net (as a percent)	11.80%	46.00%
Valuation allowance (as a percent)	0.00%	100.60%
Permanent items (as a percent)	3.90%	47.90%
Tax benefit CARES Act (as a percent)	0.00%	(250.90%)
Other (as a percent)	(0.60%)	0.10%
Effective income tax rate (as a percent)	36.10%	(35.30%)

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands	Mar. 31, 2021USD ($)
Unrecognized Tax Benefits
Unrecognized tax benefits expected to be recognized in next twelve months	$ 852

Stockholders' Deficit (Details)

Stockholders' Deficit (Details)	Mar. 31, 2021item$ / shares	Dec. 31, 2020$ / shares
Stockholders' Deficit
Common shares, par value (in dollars per share) | $ / shares	$ 0.001	$ 0.001
Common Stock
Class of Stock
Voting rights per share | item	1

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net income from continuing operations	$ 2,410	$ 1,782
Net loss from discontinued operations		(26)
Net income	$ 2,410	$ 1,756
Denominator:
Basic weighted-average common shares outstanding (in shares)	11,230,482	11,224,500
Dilutive shares	408,533	37,859
Diluted weighted-average shares outstanding (in shares)	11,639,015	11,262,359
Earnings per share from continuing operations - Basic and Diluted: (in dollar per share)	$ 0.21	$ 0.16
Earnings (loss) per share from discontinued operations - Basic and Diluted: (in dollars per share)		0
Earnings per share - Basic and Diluted: (in dollars per share)	$ 0.21	$ 0.16

Commitments and Contingencies -

Commitments and Contingencies - Contingencies (Details)	Apr. 20, 2021item	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Commitments and Contingencies
Sales tax liability		$ 1,805,000	$ 1,696,000
Pending Litigation
Commitments and Contingencies
Sales tax liability		1,805,000	1,696,000
Smart Packaging Solutions SA v. CPI Card Group, Inc. | Pending Litigation
Commitments and Contingencies
The number of patents involved in lawsuit | item	4
Loss contingency accrual		$ 0	$ 0

Stock Based Compensation - Omni

Stock Based Compensation - Omnibus Incentive Plan (Details) - Omnibus Plan - Stock Options - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Oct. 31, 2015
Stock based compensation
Number of shares authorized			1,200,000
Number of shares available for grant	185,113
Stock options granted (in shares)	0	0
Number of shares
Balance at beginning of year (in shares)	706,372
Balance at end of year (in shares)	706,372	706,372
Options: Options vested and exercisable	670,876
Options: Options vested and expected to vest	706,372
Weighted-Average Exercise Price
Balance at beginning of year (in dollars per share)	$ 15.20
Balance at end of year (in dollars per share)	15.20	$ 15.20
Weighted-Average Exercise Price: Options vested and exercisable	15.92
Weighted-Average Exercise Price: Options vested and expected to vest	$ 15.20
Weighted- Average Remaining Contractual Term (in Years)
Balance (in years)	6 years 2 months 9 days	6 years 5 months 9 days
Weighted-Average Remaining Contractual Term (in Years): Options vested and exercisable	6 years 1 month 13 days
Weighted-Average Remaining Contractual Term (in Years): Options vested and expected to vest	6 years 2 months 9 days
Number of unvested options scheduled to vest
Non-Vested Options as of beginning of period	45,319
Vested (in shares)	(9,823)
Non-Vested Options as of end of period	35,496	45,319
Weighted-Average Grant Date Fair Value
Non-Vested, beginning balance	$ 1.10
Vested: Weighted-Average Grant Date Fair Value	1.79
Non-Vested, ending balance	$ 0.91	$ 1.10
2021
Number of unvested options scheduled to vest
Non-Vested Options as of end of period	35,496

Stock Based Compensation - Rest

Stock Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 02, 2020	Mar. 31, 2021	Mar. 31, 2020
Restricted stock units
Number of Restricted Stock Units
Granted (in shares)	180,001
Weighted Average Grant Date Fair Value
Vesting period	2 years
Omnibus Plan
Weighted Average Grant Date Fair Value
Unrecognized compensation expense		$ 289
Period over which compensation expense expected to recognize		1 year 6 months
Omnibus Plan | Restricted stock units
Number of Restricted Stock Units
Units outstanding at the beginning of the period (in shares)		180,001
Units outstanding at the end of the period (in shares)		180,001
Weighted Average Grant Date Fair Value
Units outstanding at the beginning of the period (in dollars per shares)		$ 2.12
Units outstanding at the end of the period (in dollars per shares)		$ 2.12
Weighted-Average Remaining Amortization Period		1 year 6 months
Compensation expense		$ 51	$ 41
Omnibus Plan | Restricted stock units | 2022
Number of Restricted Stock Units
Granted (in shares)		180,001

Segment Reporting - Revenue and

Segment Reporting - Revenue and EBITDA from Continuing Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting
Revenue	$ 89,092	$ 73,969
EBITDA	16,968	11,645
Debit and Credit
Segment Reporting
EBITDA	22,400	14,959
Prepaid Debit
Segment Reporting
EBITDA	7,573	4,660
Other
Segment Reporting
EBITDA	(13,005)	(7,974)
Operating Segments | Debit and Credit
Segment Reporting
Revenue	69,817	59,839
Operating Segments | Prepaid Debit
Segment Reporting
Revenue	19,458	14,540
Intersegment eliminations
Segment Reporting
Revenue	$ (183)	$ (410)

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of EBITDA to net income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reconciliation of total segment EBITDA to income before taxes
Total segment EBITDA	$ 16,968	$ 11,645
Interest, net	(8,976)	(6,088)
Income tax (expense) benefit	(1,360)	465
Depreciation and amortization	(4,222)	(4,240)
Net loss from discontinued operations		(26)
Net income	$ 2,410	$ 1,756

Segment Reporting - Balance She

Segment Reporting - Balance Sheet Data (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Segment Reporting
Total assets	$ 246,294	$ 266,151
Debit and Credit
Segment Reporting
Total assets	200,341	215,846
Prepaid Debit
Segment Reporting
Total assets	37,926	34,734
Other
Segment Reporting
Total assets	$ 8,027	$ 15,571