Paysign(PAYS)2025-03-26 19:58Financial Performance - Total revenues increased by 23.5% to 47,274,162 in 2023[165]. - Pharma industry revenue surged by 212.3%, reaching 32,197,334, with a gross margin of 55.1% for the year ended December 31, 2024[165][167]. - Net income for the year ended December 31, 2024 was 6,458,727 in 2023[172]. - The gross dollar volume loaded on cards was 1,706 million in 2023[173]. - Total revenue conversion rate improved to 3.27% for 2024, up from 2.77% in 2023[174]. - Operating expenses increased by 28.3% to 9,621,083, compared to 22,947,120 in 2024, a decrease of 466,245 for the year ended December 31, 2024, compared to 3.62 per share in 2024[183]. - Unrestricted cash as of December 31, 2024, was 6,227,723 from the previous year, primarily due to payment timing on claim reimbursement receivables[185]. Business Operations - Paysign reported significant growth in the prepaid card market, driven by improved technology and greater consumer convenience[158]. - The company operates a high-availability payments platform that allows seamless integration with clients' systems, enhancing transaction processing and customer service[151]. - Paysign's prepaid card offerings include corporate rewards, prepaid gift cards, general purpose reloadable debit cards, and healthcare reimbursement payments[152]. - The company manages all aspects of the prepaid card lifecycle, including design, production, distribution, and customer service[159]. - Paysign's architecture is known for its cross-platform compatibility, flexibility, and scalability, providing cost savings and revenue opportunities for clients[151]. - Paysign's marketing efforts are focused on corporate incentive and expense prepaid card products across various market verticals, including healthcare and loyalty rewards[160]. Revenue Recognition - Revenue from plasma and pharma card programs includes cardholder fees, transaction claims processing fees, and interchange fees[193]. - The company recognizes revenue from cardholder fees at the point of transaction fulfillment and management fees on a monthly basis[194]. - Breakage revenue is recognized ratably over the estimated card life, based on historical redemption patterns[195]. Future Outlook - The company plans to invest additional funds in technology improvements, sales and marketing, cybersecurity, fraud prevention, customer service, and regulatory compliance in 2025[163]. - The company anticipates that its available cash and forecasted revenues will sustain operations for the next 24 months[149]. - The company may evaluate raising capital to diversify into new market verticals while believing it can support existing operations with internally generated funds if new capital is not raised[163]. - The company grew to approximately 7.3 million cardholders and approximately 600 card programs as of December 31, 2024[164]. Stock and Compensation - The company repurchased 394,558 shares at an average price of $2.86 per share in 2023[183]. - Stock-based compensation expense is recognized for all restricted stock awards and stock options, with fair value measured at grant date[200]. Compliance and Risk - Operating lease expenses are recorded as rent expense and included within selling, general, and administrative expenses[198]. - The company is not required to provide market risk disclosures as a smaller reporting company[201].