Core Acquisition Overview - Euronet has entered into a definitive agreement to acquire CoreCard Corporation in a stock-for-stock merger valued at approximately $248 million, or $30 per share of CoreCard common stock [1][6] - The acquisition aims to accelerate Euronet's digital transformation strategy, expand its U.S. footprint, and enhance CoreCard's access to global markets [1][2] Strategic Goals - This transaction is a pivotal step in Euronet's strategy to diversify its revenue mix, focusing on scalable, modern platforms for the next generation of digital financial services [2] - The acquisition is expected to be accretive in the first full year post-close, positioning Euronet as a leading modern card issuer and innovation partner [5] CoreCard's Value Proposition - CoreCard's platform is recognized for its reliability and has been instrumental in launching successful co-branded credit card offerings, notably with Goldman Sachs [3] - The modern architecture of CoreCard enables faster deployment and easier integrations, which are essential for banks and fintechs looking to enhance customer experiences [4] Transaction Details - The merger agreement stipulates an exchange ratio for CoreCard shares based on Euronet's stock price, with a floor of $95.48 and a ceiling of $107.80 per share [7][8] - The transaction has been approved by the boards of directors of both companies and is expected to close in late 2025, pending shareholder approval and customary closing conditions [6] Company Backgrounds - Euronet is a global leader in payments processing and cross-border transactions, offering services in over 200 countries [11] - CoreCard provides a modern card issuing platform designed for the future of global transactions, focusing on technological innovation in the payments industry [10]

Company Overview - Euronet has announced a definitive agreement to acquire CoreCard in a stock-for-stock merger valued at approximately $248 million, equating to $30 per share of CoreCard common stock [1][6] - CoreCard is recognized for its innovative credit technology solutions and processing services, serving a significant role in the financial technology and services market [1][10] Strategic Implications - The acquisition is a strategic move for Euronet to diversify its revenue mix and enhance its capabilities in digital financial services, aiming for a more scalable and modern platform [2][5] - CoreCard's established credit card platform and its partnerships with major financial institutions, including a successful co-branded credit card with Goldman Sachs, will bolster Euronet's competitive position in a market dominated by legacy providers [3][4] Technological Advantages - CoreCard's modern architecture allows for faster deployment and easier integrations, which are essential for banks and fintechs looking to innovate and embed financial services into customer experiences [4][5] - The integration of CoreCard's platform with Euronet's existing infrastructure is expected to enhance Euronet's position as a leading card issuer and innovation partner in the digital finance space [5] Transaction Details - The merger agreement stipulates an exchange ratio for CoreCard shares based on Euronet's stock price, with a range between 0.2783 and 0.3142 shares of Euronet for each CoreCard share, subject to specific price floors and ceilings [7][8] - The transaction has received approval from both companies' boards and is anticipated to close in late 2025, pending shareholder approval and regulatory conditions [6][7]

Group 1 - Amprius Technologies (AMPX) is a notable stock within the Business Services group, which consists of 260 companies and currently ranks 1 in the Zacks Sector Rank [2][4] - The Zacks Rank system, which focuses on earnings estimates and revisions, indicates that Amprius Technologies has a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook [3] - The consensus estimate for AMPX's full-year earnings has increased by 10.2% in the past quarter, reflecting stronger analyst sentiment and an improving earnings outlook [4] Group 2 - Year-to-date, Amprius Technologies has gained approximately 97.5%, significantly outperforming the average return of 2.3% for the Business Services sector [4] - CoreCard Corporation (CCRD) is another stock in the Business Services sector that has performed well, with a year-to-date return of 36.5% and a Zacks Rank of 1 (Strong Buy) [5] - Amprius Technologies is part of the Technology Services industry, which includes 122 stocks and currently ranks 51 in the Zacks Industry Rank, with an average gain of 7.6% this year [6] Group 3 - Investors should closely monitor Amprius Technologies and CoreCard Corporation as they are expected to maintain their strong performance in the Business Services sector [7]

Industry Overview - The Zacks Technology Services Industry is performing strongly, ranking in the top 22% of over 240 Zacks industries, with 11 stocks currently rated as Zacks Rank 1 (Strong Buy) [1] CoreCard (CCRD) - CoreCard's stock price is $26, having reached a 52-week high of $28, driven by consistent revenue growth and increased profitability [2] - The company exceeded Q1 EPS expectations by 75%, reporting earnings of $0.28 per share against estimates of $0.16, a significant increase from $0.07 in Q1 of the previous year [2][3] - Institutional investors own 41% of CoreCard's shares, and the company has surpassed the Zacks EPS Consensus for six consecutive quarters, with an average earnings surprise of 119.22% over the last four quarters [3] Dave Inc. (DAVE) - Dave Inc.'s stock price is $217, reflecting a nearly 150% increase year-to-date and a staggering 3,900% gain over the last two years [5][6] - The company has seen record growth since going public in 2022, with projections indicating high-double-digit growth in both revenue and earnings for fiscal years 2025 and 2026 [6] - Dave crushed Q1 EPS expectations by 61%, reporting earnings of $2.48 per share compared to estimates of $1.54, with FY25 and FY26 EPS estimates increasing by over 26% and 31% respectively in the last 60 days [7] Microvast (MVST) - Microvast's stock price is $3, having increased over 90% in 2025 and reaching a one-year high of $4.32 [8] - The company reported a surprise profit of $0.06 per share in Q1, compared to an expected loss of -$0.02, and achieved record Q1 revenue of $116.49 million, exceeding estimates of $103.75 million and up 43% from $81.35 million in the prior period [9] - Microvast is expected to achieve profitability this year, with rapid sales growth indicating strong future earnings potential [9] Conclusion - The positive trend in earnings estimate revisions suggests further upside potential for highly ranked technology services stocks, with CoreCard, Dave Inc., and Microvast identified as viable buy-the-dip candidates due to their significant expansion [13]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $16.7 million, a 28% increase year over year, driven by higher professional services revenue [5][10] - Income from operations was $2.8 million, compared to $0 for the same period last year, with an operating margin of 16.8% compared to 4% last year [9] - Adjusted diluted EPS for the quarter was $0.28 compared to $0.07 for Q1 2024, and adjusted EBITDA was $4 million compared to $1.7 million for the same period last year [10] Business Line Data and Key Metrics Changes - Professional services revenue was $8.7 million, processing and maintenance revenue was $6.3 million, and third-party revenue was $1.6 million [5] - Processing and maintenance revenue grew 3% year over year, but excluding a one-time item, growth was 16% [6] - Revenue growth excluding the largest customer was 8% year over year, and expected to be 30% to 35% for the full year [6][11] Market Data and Key Metrics Changes - The sale of customer Deserve to Intuit is expected to impact revenues, with Deserve representing less than 3% of total revenues in 2024 and just over 2% for 2025 [7] - The company continues to onboard new customers and has multiple implementations in progress [7] Company Strategy and Development Direction - The company is focused on maintaining independence while evaluating acquisition opportunities [14] - Management is optimistic about continuing growth and expects the rest of the year to be equally as good or better [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the quarter was good and expects continued strong performance throughout the year [13] - There is cautious optimism regarding the impact of the Intuit acquisition of Deserve, with a potential headwind acknowledged [32] Other Important Information - The company has implemented a retention plan to keep employees amid competition from larger firms [39] Q&A Session Summary Question: Thoughts on the card issuing industry and potential disruptions - Management believes the consolidation in the card issuing industry will not cause major disruptions and sees it as a good move for both parties [21] Question: Expected growth excluding Goldman Sachs - Expected growth excluding Goldman Sachs is projected to be 30% to 35% for the full year [24][26] Question: Details on Intuit's purchase of Deserve - Management has no further information on the acquisition and does not expect to maintain a relationship with Intuit [31] Question: Strength of Goldman revenues and contract repricing - The increase in Goldman revenues is attributed to a combination of higher managed services rates and year-over-year comparisons [33] Question: Employee retention pay and acquisition concerns - The retention plan was implemented to keep employees due to competition from larger companies, with no specific acquisition concerns mentioned [39]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights%20for%20the%20three%20months%20ended%20March%2031%2C%202025) CoreCard reported strong Q1 2025 results with total revenue of $16.7 million, driven by professional services and client growth - Overall revenue of **$16.7 million** exceeded expectations, reflecting a **28% year-over-year growth**, driven by higher professional services rates and customer expansion[2](index=2&type=chunk) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $16.7M | $13.1M | +28% | | **Income from Operations** | $2.8M | $0.5M | +460% | | **Net Income** | $1.9M | $0.4M | +375% | | **Diluted EPS** | $0.24 | $0.05 | +380% | | **Adjusted Diluted EPS** | $0.28 | $0.07 | +300% | | **Adjusted EBITDA** | $4.0M | $1.7M | +135% | | Revenue Type (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Professional services | $8,702 | $5,826 | | Processing and maintenance | $6,343 | $6,152 | | Third party | $1,643 | $1,098 | | **Total** | **$16,688** | **$13,076** | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents CoreCard's unaudited Consolidated Statements of Operations and Balance Sheets, detailing financial performance and position [Consolidated Statements of Operations](index=2&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 saw total net revenue of $16.7 million, with income from operations surging to $2.8 million and net income reaching $1.9 million | (in thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total net revenue** | **$16,688** | **$13,076** | | Total cost of revenue | $9,380 | $9,500 | | **Income from operations** | **$2,807** | **$527** | | Income before income taxes | $2,509 | $579 | | **Net income** | **$1,906** | **$430** | | **Diluted EPS** | **$0.24** | **$0.05** | | Diluted weighted average common shares outstanding | 8,086,423 | 8,247,788 | [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, CoreCard's total assets increased to $64.4 million, with stockholders' equity growing to $54.1 million | (in thousands) | March 31, 2025 (unaudited) | December 31, 2024 (audited) | | :--- | :--- | :--- | | **Total current assets** | $41,315 | $40,174 | | **Total assets** | **$64,394** | **$62,338** | | **Total current liabilities** | $8,334 | $8,452 | | **Total liabilities** | $10,336 | $10,641 | | **Total stockholders' equity** | **$54,058** | **$51,697** | | **Total liabilities and stockholders' equity** | **$64,394** | **$62,338** | [Non-GAAP Financial Measures & Reconciliation](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) CoreCard uses Adjusted EBITDA and Adjusted EPS to supplement GAAP results, showing strong growth in Q1 2025 performance - The company uses Adjusted EBITDA and Adjusted EPS as supplemental measures, excluding specific non-GAAP adjustments[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) | Reconciliation to Adjusted EPS (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP net income | $1,906 | $430 | | Share-based compensation | $473 | $160 | | Income tax benefit | ($118) | ($40) | | **Adjusted net income** | **$2,261** | **$550** | | **Adjusted EPS** | **$0.28** | **$0.07** | | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP net income | $1,906 | $430 | | Depreciation and amortization | $745 | $1,025 | | Share-based compensation | $473 | $160 | | Investment loss | $435 | $204 | | Other income, net | ($137) | ($256) | | Income tax expense | $603 | $149 | | **Adjusted EBITDA** | **$4,025** | **$1,712** | | **Adjusted EBITDA Margin** | **24.1%** | **13.1%** | [Other Information](index=1&type=section&id=Other%20Information) This section provides investor logistical details, including conference call information and SEC filing access - An investor conference call was held on May 8, 2025, to discuss the quarterly results[6](index=6&type=chunk) - The company's Form 10-Q for Q1 2025 will be filed with the SEC and available on investor websites[8](index=8&type=chunk) - The press release includes forward-looking statements, cautioning that actual results may differ due to risks outlined in SEC filings[10](index=10&type=chunk)

Core Points - CoreCard Corporation reported financial results for Q1 2025, with total revenues of $16.7 million, representing a year-over-year growth of 28% compared to $13.1 million in Q1 2024 [2][3] - The revenue growth was primarily driven by increased professional services rates from the largest customer and continued growth from other customers [2] - The company achieved an income from operations of $2.8 million, significantly up from $0.5 million in the same quarter last year [3][4] - Net income for the first quarter was $1.9 million, compared to $0.4 million in Q1 2024, with earnings per diluted share increasing to $0.24 from $0.05 [4][12] - Adjusted earnings per diluted share rose to $0.28 from $0.07, and adjusted EBITDA was reported at $4.0 million, up from $1.7 million in the prior year [4][21] Financial Highlights - Total revenues for Q1 2025: $16.7 million, up from $13.1 million in Q1 2024 [3] - Breakdown of revenue types for Q1 2025: - Professional services: $8.7 million (up from $5.8 million) - Processing and maintenance: $6.3 million (up from $6.2 million) - Third-party revenue: $1.6 million (up from $1.1 million) [3] - Income from operations: $2.8 million in Q1 2025 vs. $0.5 million in Q1 2024 [3] - Net income: $1.9 million in Q1 2025 vs. $0.4 million in Q1 2024 [4] - Adjusted EBITDA margin improved to 24.1% from 13.1% year-over-year [21] Company Overview - CoreCard Corporation is a leading provider of credit technology solutions and processing services in the financial technology market [1][8] - The company focuses on technological innovation in the payments industry, offering a robust card issuing platform [8] - CoreCard aims for sustainable growth and has established trust with major companies and financial institutions globally [8]

Part I [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents CoreCard Corporation's unaudited consolidated financial statements for Q1 2025, detailing balance sheets, operations, cash flows, and notes, highlighting strong revenue and net income growth [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet as of March 31, 2025, shows increased total assets to $64.4 million, driven by cash, with liabilities decreasing and equity growing to $54.1 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $22,068 | $19,481 | +$2,587 | | Total current assets | $41,315 | $40,174 | +$1,141 | | Total assets | $64,394 | $62,338 | +$2,056 | | Total current liabilities | $8,334 | $8,452 | -$118 | | Total liabilities | $10,336 | $10,641 | -$305 | | Total stockholders' equity | $54,058 | $51,697 | +$2,361 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, total net revenue increased 27.6% to $16.7 million, with net income rising substantially to $1.9 million and diluted EPS reaching $0.24 Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total net revenue | $16,688 | $13,076 | +27.6% | | Income from operations | $2,807 | $527 | +432.6% | | Net income | $1,906 | $430 | +343.3% | | Diluted EPS | $0.24 | $0.05 | +380.0% | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $4.6 million in Q1 2025, with cash used for investing at $2.0 million and a $2.6 million overall cash balance increase Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,600 | $552 | | Net cash used for investing activities | $(1,996) | $(1,781) | | Net cash used for financing activities | $0 | $(1,631) | | Net increase (decrease) in cash | $2,587 | $(2,862) | | Cash at end of period | $22,068 | $24,056 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, and investments, highlighting significant customer concentration and a new employee retention program with a $14.3 million maximum liability - Revenue is heavily concentrated, with a single customer, "Customer A", accounting for **65% of consolidated revenue** in Q1 2025, up from 59% in Q1 2024[28](index=28&type=chunk) Revenue Disaggregation by Type (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Professional services | $8,702 | $5,826 | | Processing and maintenance | $6,343 | $6,152 | | Third party | $1,643 | $1,098 | | **Total** | **$16,688** | **$13,076** | - The company's investment in a privately held FinTech company, accounted for using the equity method, resulted in a loss of **$516,000** for Q1 2025, more than double the **$239,000** loss in Q1 2024[30](index=30&type=chunk) - On May 7, 2025, the Board approved a new cash retention program for long-term employees with a maximum potential liability of approximately **$14,325,000**[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=13&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 revenue growth to increased professional services from Goldman Sachs, noting improved cost of revenue, rising operating expenses, strong liquidity, and significant customer concentration risk - Revenue increased by **28%** in Q1 2025 compared to Q1 2024, primarily due to higher professional services revenue from its largest customer, Goldman Sachs Group, Inc[71](index=71&type=chunk) - Cost of revenue as a percentage of total revenue decreased to **55%** in Q1 2025 from **73%** in Q1 2024, driven by higher rates for professional services and increased managed services revenue from Goldman[71](index=71&type=chunk) - The company's agreement with Goldman Sachs was extended through December 31, 2030, with increased monthly fees starting January 2025, though Goldman can terminate the agreement as early as January 1, 2027[65](index=65&type=chunk) - A key risk is the potential exit of Goldman Sachs from the credit card business, seen as more likely following their announced transition of the General Motors co-branded credit card to a new issuer[67](index=67&type=chunk)[84](index=84&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) CoreCard Corporation is not required to provide disclosures for this item as it qualifies as a smaller reporting company - Disclosure under this item is not required as the company qualifies as a smaller reporting company[86](index=86&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective with no material changes identified during the quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[87](index=87&type=chunk) Part II [Item 1. Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its business or financial condition - There are no pending or threatened legal proceedings that are expected to have a material adverse effect on the company[53](index=53&type=chunk)[88](index=88&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) CoreCard Corporation is not required to provide disclosures under this item as it qualifies as a smaller reporting company - Disclosure under this item is not required as the company qualifies as a smaller reporting company[89](index=89&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's share repurchase program has approximately $7.1 million remaining authorized as of March 31, 2025, with no repurchases made in Q1 2025 - The company has approximately **$7.1 million** remaining under its authorized share repurchase program as of March 31, 2025[90](index=90&type=chunk) - No shares were repurchased during the three months ended March 31, 2025[80](index=80&type=chunk) [Item 5. Other Information](index=22&type=section&id=Item%205.%20Other%20Information) This section discloses no Rule 10b5-1 trading plan changes by directors or officers and details a new employee retention program approved on May 7, 2025 - On May 7, 2025, the Board of Directors approved a retention program for employees with more than five years of service[94](index=94&type=chunk) - The program guarantees a cash payment if an employee's 2024 base salary exceeds the value of their vested 2024-2025 restricted stock grants as of December 31, 2028[94](index=94&type=chunk) - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025[93](index=93&type=chunk) [Item 6. Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The report includes required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act[98](index=98&type=chunk) - Inline XBRL data files are furnished as exhibits with this report[95](index=95&type=chunk)[101](index=101&type=chunk)

NORCROSS, Ga., April 24, 2025 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, intends to hold an investor conference call on May 8, 2025, at 11:00 A.M. Eastern Time in conjunction with the company’s earnings release for the quarter ended March 31, 2025. The company plans to issue a press release with the financial results for the period before the market opens on May ...

Revenue and Financial Performance - Total revenue for the year ended December 31, 2024, was $57,399,000, representing a 2% increase over 2023[64]. - Total net revenue for 2024 was $57,399 million, a 2.5% increase from $56,004 million in 2023[148]. - Revenue from services was $54,559,000 in 2024, a 1% increase from 2023 revenue of $54,210,000[66]. - Revenue from products, including software license fees, was $2,840,000 in 2024, an increase of 58% from 2023 revenue of $1,794,000[66]. - Goldman Sachs Group, Inc. represented 62% of consolidated revenues in 2024, down from 67% in 2023[58]. - Revenue from the United States was $54,892,000 in 2024, up from $53,915,000 in 2023, reflecting a growth of 1.8%[208]. - License revenue increased to $2,840,000 in 2024 from $1,794,000 in 2023, representing a growth of 58.3%[206]. - Professional services revenue decreased to $26,015,000 in 2024 from $28,237,000 in 2023, a decline of 7.8%[206]. - Processing and maintenance revenue increased to $24,034,000 in 2024 from $22,439,000 in 2023, a growth of 7.1%[206]. - Net income for 2024 reached $5,448 million, up 60.4% from $3,395 million in 2023[150]. - Earnings per share (EPS) for 2024 was $0.68, compared to $0.40 in 2023, reflecting a 70% increase[148]. - Operating income increased to $6,539 million in 2024, a 23.1% rise from $5,311 million in 2023[148]. - Total comprehensive income for 2024 was $5,323 million, compared to $3,488 million in 2023, marking a 52.7% increase[150]. Expenses and Costs - Total cost of revenue was 62% of total revenue for the twelve months ended December 31, 2024, down from 65% in 2023, primarily due to higher license revenue[67]. - Total operating expenses increased primarily due to higher development expenses and a 31% increase in marketing expenses in 2024[68]. - The total cost of revenue for 2024 was $35,770 million, a decrease from $36,571 million in 2023[148]. - The company reported a depreciation expense of $3,566 million in 2024, down from $6,256 million in 2023[156]. - Amortization expense related to intangible assets was $34,000 in 2024, down from $133,000 in 2023, with the carrying amount of intangible assets net of accumulated amortization at $0 in 2024[167]. - Stock-based compensation expense increased significantly to $1,308,000 in 2024 from $150,000 in 2023[196]. Cash Flow and Investments - Cash balance decreased to $19,481,000 at December 31, 2024, from $26,918,000 at December 31, 2023, with cash provided by operations dropping to $5,801,000 from $16,810,000[71]. - The company invested $2,186,000 in publicly traded securities in 2024, compared to $2,521,000 in 2023[72]. - Cash used for acquiring computer equipment and software development for a new processing platform was $4,908,000 in 2024[73]. - The company has approximately $7.1 million of authorized share repurchases remaining at December 31, 2024[49]. - The company repurchased $7,638 million of common stock in 2024, compared to $3,653 million in 2023[156]. - The company has been audited by Nichols, Cauley and Associates, LLC since 2015, ensuring compliance with PCAOB standards[142]. Workforce and Operations - CoreCard maintains a workforce of approximately 1,000 employees across its offshore operations in India, Romania, the UAE, and Colombia for software development and processing services support[34]. - The company operates in multiple countries, with significant personnel located in India, Romania, the UAE, and Colombia[62]. - The company’s facilities are deemed adequate for the foreseeable future, with leases covering approximately 27,000 square feet in Norcross, Georgia, and additional locations in Colombia, UAE, and India[43]. Intellectual Property and Compliance - The company has one U.S. patent covering aspects of its core software platform and actively protects its intellectual property through trademarks and trade secrets[33]. - CoreCard's software products help customers comply with various governmental regulations, including the Bank Secrecy Act and Anti-Money Laundering regulations[28]. - The company has established multiple secure processing data centers and is compliant with Payment Card Industry (PCI) Data Security Standards[20]. Risks and Challenges - The transition of Goldman Sachs' General Motors co-branded credit card to a new issuer is expected to close in 2025, potentially impacting future revenues[96]. - Weakness in global financial markets may lead to delays in software purchases by potential customers[96]. - Increased federal and state regulations could result in losses and additional cash requirements for the company[103]. - Delays in software development projects may lead to postponed implementations and delayed payments, increasing costs and reducing revenue[103]. - The company faces risks from security breaches that could expose confidential customer information and lead to material losses[103]. - Competitive pressures may cause prospective customers to choose alternative product solutions, resulting in lower revenue and profits[103]. Financial Position and Equity - Total assets decreased from $63,826,000 in 2023 to $62,338,000 in 2024, a decline of approximately 2.34%[145]. - Cash and cash equivalents decreased by 27.06% from $26,918,000 in 2023 to $19,481,000 in 2024[145]. - Accounts receivable increased by 36.00% from $7,536,000 in 2023 to $10,235,000 in 2024[145]. - Total current liabilities decreased from $9,540,000 in 2023 to $8,452,000 in 2024, a reduction of approximately 11.43%[145]. - Stockholders' equity decreased from $52,704,000 in 2023 to $51,697,000 in 2024, a decline of approximately 1.91%[145]. - Additional paid-in capital increased from $16,621,000 in 2023 to $17,928,000 in 2024, an increase of approximately 7.86%[145]. - Treasury stock increased from $20,359,000 in 2023 to $27,997,000 in 2024, an increase of approximately 37.73%[145]. - Accumulated income increased from $56,320,000 in 2023 to $61,768,000 in 2024, an increase of approximately 9.73%[145]. Future Outlook - The company anticipates steady growth in its Processing Services business in 2025 and future years, driven by increased demand for prepaid and credit card processing[20]. - The company does not expect to pay any regular or special dividends in the foreseeable future, focusing on liquidity and potential opportunities to expand its FinTech business[75]. - The effective tax rate decreased to 21.1% in 2024 from 24.5% in 2023, with expectations for future rates to be within 24-26%[70]. - The company is evaluating the impact of adopting ASU 2024-03, effective for fiscal years beginning after December 15, 2026, which requires additional expense category disclosures[203].