CoreCard (CCRD) 10-Q 2 Aug 23 2023 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-9330
Entity Registrant Name	CORECARD CORPORATION
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1964787
Entity Address, Address Line One	One Meca Way
Entity Address, City or Town	Norcross
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30093
City Area Code	770
Local Phone Number	381-2900
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
Title of 12(b) Security	Common Stock, $0.01 par value for the class
Trading Symbol	CCRD
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding (in shares)		8,490,681
Entity Central Index Key	0000320340
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 31,005	$ 20,399
Marketable securities	5,099	4,973
Accounts receivable, net	6,110	13,220
Other current assets	3,884	3,729
Total current assets	46,098	42,321
Investments	4,494	5,180
Property and equipment, at cost less accumulated depreciation	12,315	12,006
Other long-term assets	3,055	3,725
Total assets	65,962	63,232
Current liabilities:
Accounts payable	1,407	2,011
Deferred revenue, current portion	1,724	1,094
Accrued payroll	2,003	1,888
Accrued expenses	877	525
Other current liabilities	1,959	2,025
Total current liabilities	7,970	7,543
Noncurrent liabilities:
Deferred revenue, net of current portion	363	473
Deferred tax liability	494	472
Long-term lease obligation	1,556	1,981
Total noncurrent liabilities	2,413	2,926
Stockholders’ equity:
Common stock, $0.01 par value: Authorized shares - 20,000,000; Issued shares – 9,016,140 and 9,010,119 at June 30, 2023 and December 31, 2022, respectively; Outstanding shares – 8,490,681 and 8,502,735 at June 30, 2023 and December 31, 2022, respectively	90	90
Additional paid-in capital	16,621	16,471
Treasury stock, 525,459 and 507,384 shares at June 30, 2023 and December 31, 2022, respectively, at cost	(17,105)	(16,662)
Accumulated other comprehensive income (loss)	(83)	(61)
Accumulated earnings	56,056	52,925
Total stockholders’ equity	55,579	52,763
Total liabilities and stockholders’ equity	$ 65,962	$ 63,232

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	9,016,140	9,010,119
Common stock, shares outstanding (in shares)	8,490,681	8,502,735
Treasury Stock, Common, Shares (in shares)	525,459	507,384

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue
Total net revenue	$ 15,692	$ 15,206	$ 30,448	$ 39,490
Cost of revenue
Total cost of revenue	9,296	7,937	19,101	15,393
Expenses
Marketing	105	85	174	151
General and administrative	1,516	1,255	3,065	2,940
Development	2,092	2,463	3,605	5,787
Income from operations	2,683	3,466	4,503	15,219
Investment income (loss)	(391)	260	(686)	157
Other income, net	201	29	345	66
Income before income taxes	2,493	3,755	4,162	15,442
Income taxes	618	899	1,031	3,916
Net income	$ 1,875	$ 2,856	$ 3,131	$ 11,526
Earnings per share:
Basic (in dollars per share)	$ 0.22	$ 0.33	$ 0.37	$ 1.34
Diluted (in dollars per share)	$ 0.22	$ 0.33	$ 0.37	$ 1.33
Basic weighted average common shares outstanding (in shares)	8,493,040	8,595,478	8,497,888	8,625,504
Diluted weighted average common shares outstanding (in shares)	8,516,573	8,616,354	8,524,337	8,651,874
Service [Member]
Revenue
Total net revenue	$ 13,898	$ 13,412	$ 28,654	$ 25,207
Cost of revenue
Total cost of revenue	9,296	7,937	19,101	15,393
Product [Member]
Revenue
Total net revenue	$ 1,794	$ 1,794	$ 1,794	$ 14,283

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net income	$ 1,875	$ 2,856	$ 3,131	$ 11,526
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	(12)		25
Foreign currency translation adjustments	6	243	(47)	244
Total comprehensive income	$ 1,869	$ 3,099	$ 3,109	$ 11,770

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands		Common Stock Outstanding [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2021		8,689,815
Balance at Dec. 31, 2021			$ 90	$ 16,261	$ (11,327)	$ (194)	$ 39,044	$ 43,874
Common stock repurchased* (in shares)	[1]	(70,864)
Common stock repurchased*	[1]							(2,332)
Net income							8,670	8,670
Stock compensation expense				10				10
Foreign currency translation adjustment						1		1
Balance (in shares) at Mar. 31, 2022		8,618,951
Balance at Mar. 31, 2022			90	16,271	(13,659)	(193)	47,714	50,223
Balance (in shares) at Dec. 31, 2021		8,689,815
Balance at Dec. 31, 2021			90	16,261	(11,327)	(194)	39,044	43,874
Net income								11,526
Balance (in shares) at Jun. 30, 2022		8,567,008
Balance at Jun. 30, 2022			90	16,421	(15,006)	50	50,570	52,125
Common stock repurchased*	[1]				(2,332)
Balance (in shares) at Mar. 31, 2022		8,618,951
Balance at Mar. 31, 2022			90	16,271	(13,659)	(193)	47,714	50,223
Common stock repurchased* (in shares)	[1]	(58,447)
Common stock repurchased*	[1]				(1,347)			(1,347)
Net income							2,856	2,856
Stock compensation expense				150				150
Foreign currency translation adjustment						243		243
Stock compensation expense (in shares)		6,504
Balance (in shares) at Jun. 30, 2022		8,567,008
Balance at Jun. 30, 2022			90	16,421	(15,006)	50	50,570	52,125
Balance (in shares) at Dec. 31, 2022		8,502,735
Balance at Dec. 31, 2022			90	16,471	(16,662)	(61)	52,925	52,763
Net income							1,256	1,256
Foreign currency translation adjustment						(53)		(53)
Unrealized gain (loss) on marketable securities						37		37
Balance (in shares) at Mar. 31, 2023		8,502,735
Balance at Mar. 31, 2023			90	16,471	(16,662)	(77)	54,181	54,003
Balance (in shares) at Dec. 31, 2022		8,502,735
Balance at Dec. 31, 2022			90	16,471	(16,662)	(61)	52,925	52,763
Net income								3,131
Unrealized gain (loss) on marketable securities								25
Balance (in shares) at Jun. 30, 2023		8,490,681
Balance at Jun. 30, 2023			90	16,621	(17,105)	(83)	56,056	55,579
Balance (in shares) at Mar. 31, 2023		8,502,735
Balance at Mar. 31, 2023			90	16,471	(16,662)	(77)	54,181	54,003
Common stock repurchased* (in shares)	[1]	(18,075)
Common stock repurchased*	[1]				(443)			(443)
Net income							1,875	1,875
Stock compensation expense				150				150
Foreign currency translation adjustment						6		6
Stock compensation expense (in shares)		6,021
Unrealized gain (loss) on marketable securities						(12)		(12)
Balance (in shares) at Jun. 30, 2023		8,490,681
Balance at Jun. 30, 2023			$ 90	$ 16,621	$ (17,105)	$ (83)	$ 56,056	$ 55,579
[1]At June 30, 2023, approximately $17.9 million was authorized for future repurchases of our common stock.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net income	$ 3,131	$ 11,526
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization	3,655	2,333
Stock-based compensation expense	150	160
Deferred income taxes	22	72
Equity in loss (gain) of affiliate company	686	(157)
Changes in operating assets and liabilities:
Accounts receivable, net	7,110	(10,655)
Other current assets	(449)	(688)
Other long-term assets	362	(236)
Accounts payable	(489)	611
Accrued payroll	115	(194)
Deferred revenue, current portion	630	(1,001)
Accrued expenses	352	160
Other current liabilities	(44)	(827)
Deferred revenue, net of current portion	(110)	254
Net cash provided by operating activities	15,121	1,358
INVESTING ACTIVITIES:
Purchases of property and equipment	(4,013)	(5,760)
Proceeds from payments on notes receivable	110	110
Purchase of marketable securities	(852)	0
Maturities of marketable securities	726	0
Net cash used for investing activities	(4,029)	(5,650)
FINANCING ACTIVITIES:
Repurchases of common stock	(439)	(3,679)
Net cash used for financing activities	(439)	(3,679)
Effects of exchange rate changes on cash	(47)	243
Net increase (decrease) in cash	10,606	(7,728)
Cash at beginning of period	20,399	29,244
Cash at end of period	31,005	21,516
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for income taxes	920	5,330
Purchases of property and equipment, accrued but not paid	$ 110	$ 1,093

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Throughout this report, the terms “we”, “us”, “ours”, “CoreCard” and “Company” refer to CoreCard Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial statements. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of CoreCard management, these Consolidated Financial Statements contain all adjustments (which comprise only normal and recurring accruals) necessary to present fairly the financial position and results of operations as of and for the three and six month periods ended June 30, 2023 and 2022. The interim results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with our Consolidated Financial Statements and notes thereto for the fiscal year ended December 31, 2022, as filed in our Annual Report on Form 10-K. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU No. 2019-05, ASU 2019-10 and ASU 2019-11 to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We adopted the ASUs on January 1, 2023 which did not have a material impact on our consolidated financial statements. In March 2022, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and enhances certain disclosure requirements. The ASU is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We adopted the ASUs on January 1, 2023, which did not have a material impact on our Consolidated Financial Statements. We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our Consolidated Financial Statements.

Note 2 - Revenue

Note 2 - Revenue	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	2. REVENUE Disaggregation of Revenue In the following table, revenue is disaggregated by type of revenue for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 License $ 1,794 $ 1,794 $ 1,794 $ 14,283 Professional services 7,354 7,605 15,695 14,167 Processing and maintenance 5,689 4,510 11,119 8,570 Third party 855 1,297 1,840 2,470 Total $ 15,692 $ 15,206 $ 30,448 $ 39,490 Foreign revenues are based on the location of the customer. Revenues from customers by geographic areas for the three and six months ended June 30, 2023 and 2022 are as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States $ 15,190 $ 14,865 $ 29,530 $ 38,861 Middle East 473 316 864 580 European Union 29 25 54 49 Total $ 15,692 $ 15,206 $ 30,448 $ 39,490 Concentration of Revenue The following table indicates the percentage of consolidated revenue represented by each customer that represented more than 10 percent of consolidated revenue in the three and six month periods ended June 30, 2023 and 2022. Most of our customers have multi-year contracts with recurring revenue as well as professional services fees that vary by period depending on their business needs. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Customer A 70 % 71 % 70 % 79 %

Note 3 - Investments

Note 3 - Investments	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Investment [Text Block]	3. INVESTMENTS We hold a 28 percent ownership interest in a privately held identity and professional services company with ties to the FinTech industry. The carrying value of our investment was $3,494,000 at June 30, 2023, included in investments on the Consolidated Balance Sheets. We account for this investment using the equity method of accounting which resulted in losses of $391,000 and $686,000 for the three and six months ended June 30, 2023, respectively, and income of $260,000 and $157,000 for the three and six months ended June 30, 2022, respectively, included in investment income (loss) on the Consolidated Statement of Operations. We evaluate on a continuing basis whether any impairment indicators are present that would require additional analysis or write-downs of the investment. While we have not recorded an impairment related to this investment as of June 30, 2023, variations from current expectations could result in future impairment charges. In the second quarter of 2021, we invested $1,000,000 in a privately held company that provides supply chain and receivables financing. The carrying amount of $1,000,000 is accounted for at cost and is included in investments on the Consolidated Balance Sheets.

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	4. STOCK-BASED COMPENSATION At June 30, 2023, we have two As of June 30, 2023, there is no no Options Outstanding and Exercisable: Range of Number Wgt. Avg. Contractual years) Wgt. Avg. Aggregate $3.50 - $3.86 13,000 3.7 $ 3.75 $ 280,940 $7.80 8,000 4.9 $ 7.80 $ 140,480 $19.99 30,000 5.6 $ 19.99 $ 161,100 $39.11 8,000 5.9 $ 39.11 $ -- $3.50 - $39.11 59,000 5.1 $ 17.35 $ 582,520 The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2022 Form 10-K. The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the company’s closing stock price on the last trading day of the second quarter of 2023 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2023. The amount of aggregate intrinsic value will change based on the market value of the company’s stock.

Note 5 - Fair Value of Financia

Note 5 - Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Fair Value, Option [Text Block]	5. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying value of cash and cash equivalents, marketable securities, accounts receivable, notes receivable, accounts payable and certain other financial instruments (such as accrued expenses, and other current liabilities) included in the accompanying consolidated balance sheets approximates their fair value principally due to the short-term maturity of these instruments. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, marketable securities, trade accounts and notes receivable. Our available cash is held in accounts managed by third-party financial institutions. Cash may exceed the Federal Deposit Insurance Corporation, or FDIC, insurance limits. While we monitor cash balances on a regular basis and adjust the balances as appropriate, these balances could be impacted if the underlying financial institutions fail. To date, we have experienced no loss or lack of access to our cash; however, we can provide no assurances that access to our cash will not be impacted by adverse conditions in the financial markets.

Note 6 - Fair Value Measurement

Note 6 - Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Fair Value Disclosures [Text Block]	6. FAIR VALUE MEASUREMENTS In determining fair value, the company uses quoted market prices in active markets. GAAP establishes a fair value measurement framework, provides a single definition of fair value, and requires expanded disclosure summarizing fair value measurements. GAAP emphasizes that fair value is a market-based measurement, not an entity specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable input be used when available. Observable inputs are based on data obtained from sources independent of the company that market participants would use in pricing the asset or liability. Unobservable inputs are inputs that reflect the company’s assumptions about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is measured in three levels based on the reliability of inputs: • Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. • Level 2 Valuations based on quoted prices in less active, dealer or broker markets. Fair values are primarily obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3 Valuations derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques, and not based on market, exchange, dealer, or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections that are not observable in the market and significant professional judgment is needed in determining the fair value assigned to such assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of equity method investments has not been determined as it was impracticable to do so due to the fact that the investee companies are relatively small, early stage private companies for which there is no comparable valuation data available without unreasonable time and expense. The following tables present the fair value hierarchy for assets and liabilities measured at fair value: (In thousands) Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market accounts $ 27,711 $ − $ − $ 27,711 Marketable securities Corporate, municipal debt and treasury securities 5,099 − − 5,099 Total assets $ 32,810 $ − $ − $ 32,810 The Company classifies money market funds, commercial paper, U.S. government securities, asset-backed securities and corporate securities within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. There were no transfers of financial instruments between the fair value hierarchy levels during the six months ended June 30, 2023. The Company had no

Note 7 - Marketable Securities

Note 7 - Marketable Securities	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	7. MARKETABLE SECURITIES The amortized cost, unrealized gain (loss), and estimated fair value of the Company's investments in securities available for sale consisted of the following: June 30, 2023 (In thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities Corporate, municipal debt and treasury securities $ 5,055 $ 51 $ (7 ) $ 5,099 The Company had eleven no not The following table summarizes the stated maturities of the Company’s marketable securities: June 30, 2023 December 31, 2022 (In thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 2,202 $ 2,234 $ 1,594 $ 1,602 Due after one year through three years 2,853 2,865 3,356 3,371 Total $ 5,055 $ 5,099 $ 4,950 $ 4,973

Note 8 - Commitments and Contin

Note 8 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	8. COMMITMENTS AND CONTINGENCIES Leases We have noncancelable operating leases for offices and data centers expiring at various dates through February 2027. These operating leases are included in other long-term assets on the Company's June 30, 2023 and December 31, 2022 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in other current liabilities and long-term lease obligation on the Company's June 30, 2023 and December 31, 2022 Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Supplemental Information Leases Supplemental information related to our right-of-use assets and related lease liabilities is as follows: June 30, 2023 December 31, 2022 Right-of-use asset, net and lease liabilities (in thousands) $ 2,667 $ 3,373 Weighted average remaining lease term (years) 3.0 3.2 Weighted average discount rate 3.4 % 3.4 % For the six months ended June 30, 2023 and 2022, cash paid for operating leases included in operating cash flows was $674,000 and $663,000, respectively. Maturities of our operating lease liabilities as of June 30, 2023 is as follows: Operating Leases (in thousands) 2023 $ 674 2024 1,015 2025 633 2026 520 2027 68 Total lease liabilities 2,910 Lease expense for the three and six months ended June 30, 2023 and 2022 consisted of the following: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Cost of Revenue $ 187 $ 194 $ 370 $ 412 General and Administrative 115 107 223 158 Development 41 47 81 93 Total $ 343 $ 348 $ 674 $ 663 Legal Matters There are no pending or threatened legal proceedings. However, in the ordinary course of business, from time to time we may be involved in various pending or threatened legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon our financial condition and/or results of operations. We accrue for unpaid legal fees for services performed to date.

Note 9 - Income Taxes

Note 9 - Income Taxes	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	9. INCOME TAXES We recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized, net of a valuation allowance, for the estimated future tax effects of deductible temporary differences and tax credit carry-forwards. A valuation allowance against deferred tax assets is recorded when, and if, based upon available evidence, it is more likely than not that some or all deferred tax assets will not be realized. There were no We file a consolidated U.S. federal income tax return for all subsidiaries in which our ownership equals or exceeds 80%, as well as individual subsidiary returns in various states and foreign jurisdictions. With few exceptions we are no longer subject to U.S. federal, state and local or foreign income tax examinations by taxing authorities for returns filed more than three years ago.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation Throughout this report, the terms “we”, “us”, “ours”, “CoreCard” and “Company” refer to CoreCard Corporation, including its wholly-owned and majority-owned subsidiaries. The unaudited Consolidated Financial Statements presented in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial statements. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of CoreCard management, these Consolidated Financial Statements contain all adjustments (which comprise only normal and recurring accruals) necessary to present fairly the financial position and results of operations as of and for the three and six month periods ended June 30, 2023 and 2022. The interim results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with our Consolidated Financial Statements and notes thereto for the fiscal year ended December 31, 2022, as filed in our Annual Report on Form 10-K. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. Subsequently, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, to clarify that receivables arising from operating leases are within the scope of lease accounting standards. Further, the FASB issued ASU No. 2019-04, ASU No. 2019-05, ASU 2019-10 and ASU 2019-11 to provide additional guidance on the credit losses standard. The ASUs are effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We adopted the ASUs on January 1, 2023 which did not have a material impact on our consolidated financial statements. In March 2022, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2022-02 "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures" (ASU 2022-02), which eliminates the accounting guidance for troubled debt restructurings (TDRs) by creditors that have adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and enhances certain disclosure requirements. The ASU is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. We adopted the ASUs on January 1, 2023, which did not have a material impact on our Consolidated Financial Statements. We have considered all other recently issued accounting pronouncements and do not believe the adoption of such pronouncements will have a material impact on our Consolidated Financial Statements.

Note 2 - Revenue (Tables)

Note 2 - Revenue (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 License $ 1,794 $ 1,794 $ 1,794 $ 14,283 Professional services 7,354 7,605 15,695 14,167 Processing and maintenance 5,689 4,510 11,119 8,570 Third party 855 1,297 1,840 2,470 Total $ 15,692 $ 15,206 $ 30,448 $ 39,490 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 United States $ 15,190 $ 14,865 $ 29,530 $ 38,861 Middle East 473 316 864 580 European Union 29 25 54 49 Total $ 15,692 $ 15,206 $ 30,448 $ 39,490
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Customer A 70 % 71 % 70 % 79 %

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]	Options Outstanding and Exercisable: Range of Number Wgt. Avg. Contractual years) Wgt. Avg. Aggregate $3.50 - $3.86 13,000 3.7 $ 3.75 $ 280,940 $7.80 8,000 4.9 $ 7.80 $ 140,480 $19.99 30,000 5.6 $ 19.99 $ 161,100 $39.11 8,000 5.9 $ 39.11 $ -- $3.50 - $39.11 59,000 5.1 $ 17.35 $ 582,520

Note 6 - Fair Value Measureme_2

Note 6 - Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]	(In thousands) Level 1 Level 2 Level 3 Total Fair Value Cash equivalents Money market accounts $ 27,711 $ − $ − $ 27,711 Marketable securities Corporate, municipal debt and treasury securities 5,099 − − 5,099 Total assets $ 32,810 $ − $ − $ 32,810

Note 7 - Marketable Securities

Note 7 - Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Marketable Securities [Table Text Block]	June 30, 2023 (In thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities Corporate, municipal debt and treasury securities $ 5,055 $ 51 $ (7 ) $ 5,099
Investments Classified by Contractual Maturity Date [Table Text Block]	June 30, 2023 December 31, 2022 (In thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 2,202 $ 2,234 $ 1,594 $ 1,602 Due after one year through three years 2,853 2,865 3,356 3,371 Total $ 5,055 $ 5,099 $ 4,950 $ 4,973

Note 8 - Commitments and Cont_2

Note 8 - Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Lease, Cost [Table Text Block]	June 30, 2023 December 31, 2022 Right-of-use asset, net and lease liabilities (in thousands) $ 2,667 $ 3,373 Weighted average remaining lease term (years) 3.0 3.2 Weighted average discount rate 3.4 % 3.4 % Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2023 2022 2023 2022 Cost of Revenue $ 187 $ 194 $ 370 $ 412 General and Administrative 115 107 223 158 Development 41 47 81 93 Total $ 343 $ 348 $ 674 $ 663
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	Operating Leases (in thousands) 2023 $ 674 2024 1,015 2025 633 2026 520 2027 68 Total lease liabilities 2,910

Note 2 - Revenue - Disaggregati

Note 2 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue	$ 15,692	$ 15,206	$ 30,448	$ 39,490
UNITED STATES
Revenue	15,190	14,865	29,530	38,861
Middle East [Member]
Revenue	473	316	864	580
European Union [Member]
Revenue	29	25	54	49
License [Member]
Revenue	1,794	1,794	1,794	14,283
Professional Services [Member]
Revenue	7,354	7,605	15,695	14,167
Processing and Maintenance [Member]
Revenue	5,689	4,510	11,119	8,570
Third party [Member]
Revenue	$ 855	$ 1,297	$ 1,840	$ 2,470

Note 2 - Revenue - Concentratio

Note 2 - Revenue - Concentration of Revenue (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration	70%	71%	70%	79%

Note 3 - Investments (Details T

Note 3 - Investments (Details Textual) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Equity Method Investments	$ 3,494,000			$ 3,494,000
Gain (Loss) on Investments	391,000	$ (260,000)		686,000	$ (157,000)
Gain (Loss) on Investments	(391,000)	$ 260,000		(686,000)	$ 157,000
Long-Term Investments, Total	$ 4,494,000			$ 4,494,000		$ 5,180,000
Privately-Held Identity and Professional Services Company With Ties to the FinTech Industry [Member]
Equity Method Investment, Ownership Percentage	28%			28%
Privately Held Company Providing Supply Chain and Receivables Financing [Member]
Payments to Acquire Investments, Total			$ 1,000,000
Long-Term Investments, Total	$ 1,000,000			$ 1,000,000

Note 4 - Stock-based Compensa_3

Note 4 - Stock-based Compensation (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) shares	Jun. 30, 2022 USD ($)
Number of Stock-based Compensation Plans in Effect	2		2
Share-Based Payment Arrangement, Expense	$ 150,000	$ 150,000	$ 150,000	$ 160,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 0		$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | shares	0		0
The 2020 Non-employee Director Stock Option Plan [Member] | Three Independent Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | shares	6,021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Value	$ 150,000

Note 4 - Stock-based Compensa_4

Note 4 - Stock-based Compensation - Stock Options Outstanding and Exercisable (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Lower Range of Exercise Price (in dollars per share)	$ 3.50
Upper Range of Exercise Price (in dollars per share)	$ 39.11
Number Outstanding (in shares) | shares	59,000
Outstanding Weighted Average Contractual Life Remaining (Year)	5 years 1 month 6 days
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 17.35
Outstanding Aggregate Intrinsic Value | $	$ 582,520
Options Outstanding Exercise Price Range1 [Member]
Lower Range of Exercise Price (in dollars per share)	$ 3.50
Upper Range of Exercise Price (in dollars per share)	$ 3.86
Number Outstanding (in shares) | shares	13,000
Outstanding Weighted Average Contractual Life Remaining (Year)	3 years 8 months 12 days
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 3.75
Outstanding Aggregate Intrinsic Value | $	$ 280,940
Options Outstanding Exercise Price Range2 [Member]
Number Outstanding (in shares) | shares	8,000
Outstanding Weighted Average Contractual Life Remaining (Year)	4 years 10 months 24 days
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 7.80
Outstanding Aggregate Intrinsic Value | $	$ 140,480
Options Outstanding Exercise Price Range 3 [Member]
Number Outstanding (in shares) | shares	30,000
Outstanding Weighted Average Contractual Life Remaining (Year)	5 years 7 months 6 days
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 19.99
Outstanding Aggregate Intrinsic Value | $	$ 161,100
Options Outstanding Exercise Price Range 4 [Member]
Number Outstanding (in shares) | shares	8,000
Outstanding Weighted Average Contractual Life Remaining (Year)	5 years 10 months 24 days
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 39.11

Note 6 - Fair Value Measureme_3

Note 6 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Marketable Securities, Current	$ 5,099	$ 4,973	$ 0

Note 6 - Fair Value Measureme_4

Note 6 - Fair Value Measurements - Fair Value Hierarchy for Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Corporate and municipal debt securities	$ 5,099	$ 4,973
Total assets	32,810
Corporate Debt Securities [Member]
Corporate and municipal debt securities	5,099
Money Market Funds [Member]
Money market accounts	27,711
Fair Value, Inputs, Level 1 [Member]
Total assets	32,810
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Corporate and municipal debt securities	5,099
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Money market accounts	$ 27,711

Note 7 - Marketable Securitie_2

Note 7 - Marketable Securities (Details Textual) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions	11
Marketable Securities, Current	$ 5,099	$ 0	$ 4,973
Other-than-temporary Impairment Loss, Debt Securities, Available-for-Sale	$ 0	$ 0

Note 7 - Marketable Securitie_3

Note 7 - Marketable Securities - Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortized Cost	$ 5,055	$ 4,950
Estimated Fair Value	5,099	$ 4,973
Corporate and Municipal Debt Securities [Member]
Amortized Cost	5,055
Unrealized Gain	51
Unrealized Loss	(7)
Estimated Fair Value	$ 5,099

Note 7 - Marketable Securitie_4

Note 7 - Marketable Securities - Maturity of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Due within one year, Amortized cost	$ 2,202	$ 1,594
Due within one year, Fair Value	2,234	1,602
Due after one year through three years, Amortized cost	2,853	3,356
Due after one year through three years, Fair Value	2,865	3,371
Amortized Cost	5,055	4,950
Estimated Fair Value	$ 5,099	$ 4,973

Note 8 - Commitments and Cont_3

Note 8 - Commitments and Contingencies (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Lease, Payments	$ 674,000	$ 663,000

Note 8 - Commitments and Cont_4

Note 8 - Commitments and Contingencies - Supplemental Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Right-of-use asset, net and lease liabilities (in thousands)	$ 2,667		$ 2,667		$ 3,373
Lease expense	$ 343	$ 348	$ 674	$ 663
Weighted average remaining lease term (years) (Year)	3 years		3 years		3 years 2 months 12 days
Weighted average discount rate	3.40%		3.40%		3.40%
Cost of Sales [Member]
Lease expense	$ 187	194	$ 370	412
General and Administrative Expense [Member]
Lease expense	115	107	223	158
Research and Development Expense [Member]
Lease expense	$ 41	$ 47	$ 81	$ 93

Note 8 - Commitments and Cont_5

Note 8 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
2023	$ 674
2024	1,015
2025	633
2026	520
2027	68
Total lease liabilities	$ 2,910

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Unrecognized Tax Benefits, Ending Balance	$ 0	$ 0