8-K
Paysign, Inc. (PAYS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the SecuritiesExchange Act of 1934
Date of Report (Date of earliest event reported):
March 22, 2022
PAYSIGN,
INC.
(Exact name of registrant as specified in its charter)
| Nevada | 001-38623 | 95-4550154 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission file number) | (I.R.S. Employer Identification Number) |
2615 St. Rose Parkway
Henderson, Nevada 89052
(Address of principal executive offices) (Zip Code)
(702) 453-2221
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.001 par value per share | PAYS | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition.
On March 22, 2022, Paysign, Inc. (the “Company”) issued a press release regarding its financial results for the fiscal quarter and full year ended December 31, 2021. A copy of the press release is filed herewith as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
As provided in General Instruction B-2 of SEC Form 8-K, such information shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.
Section 9 – FinancialStatements and Exhibits
Item 9.01 Financial Statements and Exhibits.
| (a) | Financial Statements of business acquired: Not applicable. |
|---|---|
| (b) | Pro forma financial information: Not applicable. |
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| (c) | Shell company transactions: Not applicable. |
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| (d) | Exhibits |
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| Exhibit No. | Description |
| --- | --- |
| 99.1 | Press Release entitled “Paysign, Inc. Reports Fourth Quarter<br> and Full Year Financial Results” |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PAYSIGN, INC. | |
|---|---|
| Date: March 22, 2022 | By: /s/ Mark Newcomer |
| Mark Newcomer, Chief Executive Officer |
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Exhibit 99.1
| Earnings Release |
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Paysign,Inc. Reports Fourth Quarter and Full Year 2021
FinancialResults
| · | Fourth quarter total revenues of $8.8 million, an increase of $1.5 million from fourth-quarter 2020 |
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| · | Fourth quarter net income of $0.1 million, or diluted earnings per share (EPS) of $0.00 |
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| · | Fourth quarter adjusted EBITDA of $1.3 million, or diluted adjusted EBITDA per share of $0.02 |
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| · | Fourth quarter gross dollar load volume up 12.5% versus the year-ago period and 4.6% versus the previous quarter |
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| · | Fourth quarter purchase volume up 13.2% versus the year-ago period and up 5.4% versus the previous quarter |
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HENDERSON, Nev.– March 22, 2022 – (Business Wire) – Paysign, Inc. (NASDAQ: PAYS), a leading provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing, today announced financial results for the fourth quarter and full year 2021.
“We had a good fourth quarter as load volumes and spending trends continued to improve with Q4 volumes approaching pre-pandemic levels. We are optimistic about the coming year and our growth prospects in plasma, pharma, and other prepaid business,” said Mark Newcomer, Paysign CEO. “We are executing on our strategic priorities, winning new deals in both plasma and pharma and continuing to build out our team and technology to effectively handle the opportunities that lie ahead for our company.”
QuarterlyResults
The following additional details are provided to aid in understanding Paysign’s fourth quarter 2021 results versus the year-ago period:
| · | Revenues<br> increased $1.5 million (21%) versus the year-ago period. The increase was driven by the impact<br> of the following factors: |
|---|---|
| o | Plasma<br> revenue increased $1.3 million (20%) primarily due to an increase in plasma donations<br> and dollars loaded onto cards. The average monthly revenue per plasma center increased to<br> $6,798. We added seven new plasma centers during the quarter, exiting the quarter with 366<br> centers. This compares to 340 centers at the end of 2020. |
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| o | Pharma<br> revenue increased $256 thousand primarily driven by the recognition of settlement income. |
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| · | Cost<br> of revenues increased by $468 thousand (13%). Cost of revenues comprises of transaction processing<br> fees, data connectivity, data center expenses, network fees, bank fees, card production,<br> postage costs, customer service, program management, application integration setup and sales<br> and commission expense. The increase was primarily due to the increase in plasma transactions,<br> as many of the plasma transaction costs are variable, which are provided by third parties<br> who charge us based on the number of transactions that occur during the period. |
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| --- | | · | Gross<br> profit increased $1.0 million (28%) primarily due to the increase in both plasma and<br> pharma revenues. Our gross profit margin improved to 54.3%. | | --- | --- | | · | Operating<br> expenses increased by $285 thousand (7%) from the fourth quarter of 2020. The year-over-year<br> increase was primarily due to a decrease in (i) professional services and (ii) stock based<br> compensation, offset by an increase in (i) compensation and benefits due to a tight labor<br> market and increased insurance costs, (ii) depreciation and amortization due to the continued<br> capitalization of new software and equipment, continued enhancements to our platform, new<br> furniture and fixtures and leasehold improvements associated with the relocation to a new<br> building in June 2020 and (iii) travel and entertainment due to a more normalized working<br> environment and trade show expenses. | | --- | --- | | · | Income<br> tax provision declined $3.7 million primarily due to the full valuation allowance on our<br> deferred tax asset at the end of 2020. | | --- | --- | | · | Net<br> income increased $4.4 million to a profit of $105 thousand. The overall change in net<br> income relates to the factors mentioned above. | | --- | --- | | · | “EBITDA,”<br> which is defined as earnings before interest, taxes, depreciation and amortization expense,<br> and which is a non-GAAP metric, increased $843 thousand to a profit of $762 thousand due<br> to the factors above. | | --- | --- | | · | “Adjusted<br> EBITDA,” which reflects the adjustment to EBITDA to exclude stock-based compensation<br> charges, and which is a non-GAAP metric used by management to gauge the operating performance<br> of the business, increased $495 thousand to a profit of $1.3 million due to the factors mentioned<br> above. | | --- | --- |
2021Full Year Results
The following additional details are provided to aid in understanding Paysign’s full year 2021 results versus the year-ago period:
| · | Revenues<br> increased $5.3 million (22%) for the year ended December 31, 2021, compared to the same<br> period in the prior year and consisted of a $2.5 million (11%) increase in plasma revenue,<br> a $3.0 million increase in pharma revenue, and a reduction of $207,837 in other revenue. |
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| o | The<br> increase in plasma revenue was primarily due to an increase in plasma centers, donations<br> and dollars loaded onto cards as COVID-19 related government stimulus payments were phased<br> out, donation centers reopened and mobility restrictions were lifted during the year. We<br> added 26 new plasma centers during the year, exiting with 366 centers which compares to 340<br> centers at the end of 2020. |
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| o | Pharma<br> revenue increased $3.0 million (929%) primarily driven by the anniversary of a $6.3 million<br> adjustment that reduced pharma revenue for a change in accounting estimate in recognizing<br> settlement income for all pharma programs in the third quarter of 2020 in accordance with<br> applicable accounting guidance, as well as the recognition of settlement income for pharma<br> programs that ended throughout 2021, the launch of new pharma programs during 2021 and the<br> lifting of mobility restrictions allowing individuals to return to visiting doctor offices<br> and pharmacies to receive pharmaceutical medicines. |
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| · | Cost<br> of revenues declined by $64 thousand. Cost of revenues comprises of transaction processing<br> fees, data connectivity, data center expenses, network fees, bank fees, card production,<br> postage costs, customer service, program management, application integration setup and sales<br> and commission expense. Cost of revenues decreased primarily due to operating leverage inherent<br> in our plasma business as many of the plasma fees deliver a greater revenue contribution<br> versus the costs that are provided by third parties who charge us based on the number of<br> transactions that occur during the period. In addition, there was a greater contribution<br> of higher margin pharma settlement income for the year ended December 31, 2021. |
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| · | Gross<br> profit increased $5.4 million over the prior year resulting primarily from the increase in<br> revenue described above, coupled with the slight year-over-year decrease in cost of sales.<br> The gross profit margin was 49.9% for 2021 versus 38.6% the prior year. The increase in gross<br> margin resulted from a higher revenue conversion rate generated from revenues with a larger<br> portion of fixed costs versus those that have a variable cost component. |
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| · | Selling,<br> general and administrative expenses for the year decreased $138 thousand (0.9%) compared<br> to the prior year and consisted primarily of (i) an increase in staffing and compensation<br> of $1.3 million, (ii) insurance of $250 thousand and (iii) travel and entertainment of $170<br> thousand; offset by a decrease in (i) stock-based compensation of $690 thousand, (ii) technologies<br> and telecom of $265 thousand and (iii) professional services for legal, accounting, tax and<br> consultants of $260 thousand. |
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| --- | | · | During<br> the year ended December 31, 2021, there was no intangible asset impairment charge or loss<br> on the abandonment of assets. The impairment of intangible asset of $382 thousand in December<br> 31, 2020, was related to a write down of the carrying value of acquisition costs related<br> to a business license that had been suspended. | | --- | --- | | · | Depreciation<br> and amortization expense for 2021 increased $373 thousand compared to the prior year. The<br> increase in depreciation and amortization expense was primarily due to continued capitalization<br> of new technologies and enhancements to our processing platform and infrastructure. | | --- | --- | | · | For<br> 2021 we recorded a loss from operations of $2.7 million, an increase of $5.6 million from<br> the operating loss of $8.3 million the prior year related to the aforementioned factors. | | --- | --- | | · | Other<br> income for the year ended December 31, 2021, decreased $62 thousand related to a decrease<br> in interest income resulting primarily from the reduction in the federal funds rate to near<br> 0% beginning in the first quarter of 2020. | | --- | --- | | · | The<br> effective tax rate was (0.4%) and (10.8%) for the years ended December 31, 2021, and<br> 2020, respectively. The effective tax rates vary, primarily<br> due to the company establishing a full valuation allowance against its deferred tax assets<br> during the year ended December 31, 2020. The company continues to have a full valuation allowance<br> against its deferred tax assets as of December 31, 2021. | | --- | --- | | · | The<br> net loss for 2021 was $2.7 million, a $6.4 million improvement over the prior year. The overall<br> change in net loss relates to the aforementioned factors. | | --- | --- | | · | “EBITDA,”<br> which is defined as earnings before interest, taxes, depreciation and amortization expense,<br> and which is a non-GAAP metric, improved $6.0 million to a loss of $242 thousand due to the<br> factors mentioned above. | | --- | --- | | · | “Adjusted<br> EBITDA,” which reflects the adjustment to EBITDA to exclude (i) impairment of intangible<br> asset, (ii) loss on abandonment of assets and (iii) stock-based compensation charges, and<br> which is a non-GAAP metric used by management to gauge the operating performance of the business,<br> increased $4.9 million to a profit of $2.0 million due to the factors mentioned above. | | --- | --- |
2021Year Milestones
| · | As<br> of December 31, 2021, we had approximately 4.3 million cardholders and 440 card programs. |
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| · | Year-over-year<br> revenue increased 22.2%. |
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| · | We<br> added 26 plasma programs, launched 2 net new pharma prepay and pharma copay programs and<br> added 4 net new corporate incentive programs. |
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| · | We<br> met or exceeded all guidance metrics provided during our Q1 earnings call last May. Full<br> year total revenue of $29.5 million was in line with our guidance of $29.0 million to $32.0<br> million. Gross profit margin was 49.9%, well ahead of our guidance of 45%. Operating expenses<br> were $17.5 million, slightly below our initial guidance of $18.0 million to $18.5 million.<br> Adjusted EBITDA of $2.0 million was ahead of our guidance of $0.35 million to $1.90 million. |
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BalanceSheet At Year-End 2021
Unrestricted cash declined $442 thousand to $7.4 million due to the negative impact of COVID-19 on our operations, particularly in March and April of 2021 when government stimulus checks were widely distributed to individuals throughout the U.S. Our operating results did improve throughout 2021 whereby we were able to generate positive cash flow from operations in the second half of the year to help offset our unrestricted cash balance decline that we experienced in the first half of the year. Restricted cash of $61.3 million are funds used for customer card funding with a corresponding offset under current liabilities. The increase in 2021 versus 2020 was predominately related to increases in funds on card, increased plasma deposits and new plasma and pharma customers, offset by declines from pharma customers whose contracts terminated during the year. We experienced large increases in accounts receivable and accounts payable primarily due to the launch of six new pharma copay programs during the year whereby Paysign invoices its customers for reimbursement to pharmacy networks, pharmacies, or individuals for their out-of-pocket costs and remits those funds to cover the accounts payable liability. We believe that our unrestricted cash on hand at December 31, 2021, of $7.4 million along with anticipated revenues and operating profits anticipated for 2022, and our account receivable and account payable process, will be sufficient to sustain our operations for the next twelve months.
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2022Outlook
“We had another good quarter with revenues, income from operations, EBITDA and adjusted EBITDA all improving both sequentially and year over year. Additionally, our balance sheet improved sequentially as a result of this quarter’s performance. While we continue to see the residual effects of the pandemic on our business, we did see improving transactional trends and a more normal seasonal pattern as we moved through the quarter. We continue to believe that our business will continue to grow and improve in 2022,” said Jeff Baker, Paysign CFO.
“For the full year 2022, we expect total revenue to be in the range of $35.25 million to $38.35 million, reflecting growth of 20% to 30%, with plasma making up approximately 90% of total revenue. Pharma revenue is expected to be relatively flat year over year as the loss of programs and settlement income in 2021 are offset with new pharma copay programs. Adjusted EBITDA is expected to at least double to $4.0 million over 2021’s adjusted EBITDA of $2.0 million. Full year gross profit margins are expected to be approximately 50.0% to 52.5%, with Q1 2022 gross profit margin expected to be approximately 60% before returning to a more normalized gross profit margin experienced in 2021. We expect this will result in Q1 2022 operating results to be somewhat skewed relative to historical Q1 results. Operating expenses are expected to increase to approximately $20.0 million as we continue to make investments in people and technology, and experience higher costs in insurance, travel and entertainment and other inflationary pressures. Depreciation and amortization is expected to be between $3.0 million and $3.25 million while stock-based compensation is expected to be approximately $2.0 million,” Baker concluded.
COVID-19Update
The coronavirus (“COVID-19”) pandemic, which started in late 2019 and reached the United States in early 2020, continues to significantly impact the economy of the United States and the rest of the world. While the disruption appears to be mitigating due to the availability of vaccines and other factors, the ultimate duration and severity of the pandemic remain uncertain, particularly given the development of new variants that continue to spread. The COVID-19 outbreak caused plasma center closures, and the stimulus packages signed into law during 2020 and 2021 reduced the incentive for individuals to donate plasma for supplementary income. Those developments have had and will continue to have an adverse impact on our results of operations. While we remain cautiously optimistic and have seen improvements in our operating results, we cannot foresee how long it may take us to attain pre-pandemic operating levels as COVID-19 related labor shortages at plasma donation centers, Mexican nationals being prevented to give plasma with a B2 Tourist Visa and other effects continue to weigh on our results of operations. Given the uncertainty around the extent and timing of the potential future spread or mitigation of COVID-19 and variants and around the imposition or relaxation of protective measures, management cannot at this time estimate with reasonable accuracy COVID-19’s further impact on our results of operations, cash flows or financial condition.
FourthQuarter and Full Year 2021 Financial Results Conference Call Details
At 5:00 p.m. ET today, the company will host a conference call to discuss its fourth quarter and full year 2021 results. The conference call may include forward-looking statements. The dial-in information for this call is 877.407.2988 (within the U.S.) and 201.389.0923 (outside the U.S.). A replay of the call will be available until June 22, 2022, and can be accessed by dialing 877.660.6853 (within the U.S.) and 201.612.7415 (outside the U.S.), using passcode 13726029.
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Forward-LookingStatements
Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and the company intends that such forward-looking statements be subject to the safe harbor created thereby. All statements, other than statements of fact included in this release are forward-looking statements. Such forward-looking statements include, among others, that our business will continue to rebound from the pandemic; the expected total revenue, gross profit margins, operating expenses, depreciation and amortization, stock-based compensation, adjusted EBITDA, plasma revenues and pharma revenues for 2022 meet our expectations; the company’s growth prospects in plasma, pharma, and other prepaid business materialize; and that the company remains well-capitalized and positioned to weather impacts from the pandemic. We caution that these statements are qualified by important risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; that a downturn in the economy, including as a result of COVID-19 and variants, as well as further government stimulus measures, could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; that a data security breach could expose us to liability and protracted and costly litigation; and other risk factors set forth in our Form 10-K for the year ended December 31, 2021. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
AboutPaysign, Inc.
Paysign, Inc. (NASDAQ: PAYS) is a leading provider of prepaid card programs, comprehensive patient affordability offerings, digital banking services and integrated payment processing designed for businesses, consumers and government institutions. Incorporated in 1995 and headquartered in southern Nevada, the company creates customized, innovative payment solutions for clients across all industries, including pharmaceutical, healthcare, hospitality and retail. By using Paysign solutions, clients enjoy benefits such as lower administrative costs, streamlined operations, increased revenues, accelerated product adoption and improved customer, employee and partner loyalty.
Built on the foundation of a robust and reliable payments platform, Paysign’s end-to-end technologies securely enable a wide range of services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting and customer care. The modern cross-platform architecture is highly flexible, scalable and customizable, which delivers cost benefits and revenue-building opportunities to clients and partners.
As a full-service program manager, Paysign manages all aspects of the prepaid card lifecycle, from card design and bank approvals, production, packaging, distribution and personalization, to inventory and security controls, renewals, lost and stolen cards and card replacement. The company’s in-house, bilingual customer care is available 24/7/365 through live agents, interactive voice response (IVR), and two-way SMS alerts.
For more than 20 years, major pharmaceutical and healthcare companies and multinational enterprises have relied on Paysign to provide full-service programs tailored to their unique requirements. The company has designed and launched prepaid card programs for corporate rewards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and copay assistance.
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Paysign’s expanded product offerings include additional corporate incentive products and demand deposit accounts accessible with a debit card. The product roadmap includes expanded offerings into new prepaid card categories, including payroll, travel and expense reimbursement. For more information, visit paysign.com.
Contacts:
| Paysign<br> Investor Relations:<br><br> <br>888.522.4810<br><br> <br>ir@paysign.com | Paysign<br> Media Relations:<br><br> <br>Alicia<br> Ches<br><br> <br>Director,<br> Marketing<br><br> <br>702.749.7257<br><br> <br>pr@paysign.com |
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PAYSIGN, INC.
CONSOLIDATED STATEMENTS OF INCOME
| (UNAUDITED) | (AUDITED) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||
| Revenues | |||||||||||
| Plasma industry | $ | 7,552,140 | $ | 6,298,653 | $ | 25,918,150 | $ | 23,401,068 | |||
| Pharma industry | 1,177,671 | 921,644 | 3,361,869 | 326,699 | |||||||
| Other | 37,131 | 33,140 | 184,830 | 392,667 | |||||||
| Total revenues | 8,766,942 | 7,253,437 | 29,464,849 | 24,120,434 | |||||||
| Cost of revenues | 4,008,778 | 3,541,270 | 14,753,042 | 14,817,028 | |||||||
| Gross profit | 4,758,164 | 3,712,167 | 14,711,807 | 9,303,406 | |||||||
| Operating expenses | |||||||||||
| Selling, general and administrative | 3,995,703 | 3,792,396 | 14,953,322 | 15,091,432 | |||||||
| Impairment of intangible asset | – | – | – | 382,414 | |||||||
| Loss on abandonment of assets | – | – | – | 42,898 | |||||||
| Depreciation and amortization | 659,564 | 578,117 | 2,497,918 | 2,124,762 | |||||||
| Total operating expenses | 4,655,267 | 4,370,513 | 17,451,240 | 17,641,506 | |||||||
| Income (loss) from operations | 102,897 | (658,346 | ) | (2,739,433 | ) | (8,338,100 | ) | ||||
| Other income | |||||||||||
| Interest income, net | 10,067 | 13,245 | 28,297 | 90,720 | |||||||
| Income (loss) before income tax provision | 112,964 | (645,101 | ) | (2,711,136 | ) | (8,247,380 | ) | ||||
| Income tax provision | 7,798 | 3,666,057 | 10,198 | 894,182 | |||||||
| Net income (loss) | $ | 105,166 | $ | (4,311,158 | ) | $ | (2,721,334 | ) | $ | (9,141,562 | ) |
| Net income (loss) per share | |||||||||||
| Basic | $ | 0.00 | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.19 | ) |
| Diluted | $ | 0.00 | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.19 | ) |
| Weighted average common shares | |||||||||||
| Basic | 51,632,008 | 49,918,782 | 50,975,794 | 49,272,494 | |||||||
| Diluted | 52,355,856 | 49,918,782 | 50,975,794 | 49,272,494 |
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PAYSIGN, INC.
CONSOLIDATED BALANCE SHEETS
| 2020 | |||||
| ASSETS | |||||
| Current assets | |||||
| Cash | 7,387,156 | $ | 7,829,453 | ||
| Restricted Cash | 61,283,914 | 48,100,951 | |||
| Accounts receivable | 3,393,940 | 512,097 | |||
| Other receivables | 1,019,218 | 142,762 | |||
| Prepaid expenses and other current assets | 1,242,967 | 1,375,364 | |||
| Total current assets | 74,327,195 | 57,960,627 | |||
| Fixed assets, net | 1,642,981 | 1,849,164 | |||
| Intangible assets, net | 4,086,962 | 3,699,033 | |||
| Operating lease right-of-use asset | 3,993,655 | 4,324,682 | |||
| Total assets | 84,050,793 | $ | 67,833,506 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | 5,765,478 | $ | 2,162,256 | ||
| Operating lease liability, current portion | 340,412 | 320,636 | |||
| Customer card funding | 61,283,914 | 48,100,951 | |||
| Total current liabilities | 67,389,804 | 50,583,843 | |||
| Operating lease liability, long term portion | 3,673,186 | 4,013,598 | |||
| Total liabilities | 71,062,990 | 54,597,441 | |||
| Stockholders' equity | |||||
| Common stock: 0.001 par value; 150,000,000 shares authorized, 52,095,382 and 50,251,607 issued at December 31, 2021 and 2020, respectively | 52,095 | 50,252 | |||
| Additional paid-in capital | 16,860,119 | 14,388,890 | |||
| Treasury stock at cost, 303,450 shares, December 31, 2021 and 2020 | (150,000 | ) | (150,000 | ) | |
| Accumulated loss | (3,774,411 | ) | (1,053,077 | ) | |
| Total stockholders' equity | 12,987,803 | 13,236,065 | |||
| Total liabilities and stockholders' equity | 84,050,793 | $ | 67,833,506 |
All values are in US Dollars.
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Paysign,Inc. Non-GAAP Measures
To supplement Paysign’s financial results presented on a GAAP basis, we use non-GAAP measures that exclude from net income the following cash and non-cash items: interest, taxes, depreciation and amortization, stock-based compensation, impairment of intangible asset and loss on abandonment of assets. We believe these non-GAAP measures used by management to gauge the operating performance of the business help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting, and investors should read them in conjunction with the company’s financial statements prepared in accordance with GAAP. The non-GAAP measures we use may be different from, and not directly comparable to, similarly titled measures used by other companies.
“EBITDA” is defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude stock-based compensation charges, impairment of intangible asset and loss on abandonment of assets.
Adjusted EBITDA is not intended to represent cash flows from operations, operating income (loss) or net income (loss) as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner.
PAYSIGN, INC.
ADJUSTED EBITDA
(UNAUDITED)
| Three<br> Months Ended December 31, | Year<br> Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Reconciliation of adjusted EBITDA to net income (loss): | ||||||||||||
| Net income (loss) | $ | 105,166 | $ | (4,311,158 | ) | $ | (2,721,334 | ) | $ | (9,141,562 | ) | |
| Income tax provision | 7,798 | 3,666,057 | 10,198 | 894,182 | ||||||||
| Interest income, net | (10,067 | ) | (13,245 | ) | (28,297 | ) | (90,720 | ) | ||||
| Depreciation and amortization | 659,564 | 578,117 | 2,497,918 | 2,124,762 | ||||||||
| EBITDA | 762,461 | (80,229 | ) | (241,515 | ) | (6,213,338 | ) | |||||
| Impairment of intangible<br> asset | – | – | – | 382,414 | ||||||||
| Loss on abandonment of<br> assets | – | – | – | 42,898 | ||||||||
| Stock-based<br> compensation | 500,205 | 847,970 | 2,280,931 | 2,971,777 | ||||||||
| Adjusted EBITDA | $ | 1,262,666 | $ | 767,741 | $ | 2,039,416 | $ | (2,816,249 | ) | |||
| Adjusted EBITDA per share | ||||||||||||
| Basic | $ | 0.02 | $ | 0.02 | $ | 0.04 | $ | (0.06 | ) | |||
| Diluted | $ | 0.02 | $ | 0.01 | $ | 0.04 | $ | (0.06 | ) | |||
| Weighted average common shares | ||||||||||||
| Basic | 51,632,008 | 49,918,782 | 50,975,794 | 49,272,494 | ||||||||
| Diluted | 52,355,856 | 53,671,904 | 52,553,586 | 49,272,494 |
| 9 |
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