Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Paysign, Inc. | |
Entity Central Index Key | 0001496443 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,570,512 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Emerging Growth | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Entity File Number | 000-54123 | |
State of Incorporation | NV | |
Interactive data current? | Yes |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 6,289,008 | $ 5,615,073 |
Restricted Cash | 42,600,430 | 26,050,668 |
Accounts Receivable | 948,892 | 337,303 |
Prepaid Expenses and other assets | 966,633 | 1,175,241 |
Total current assets | 50,804,963 | 33,178,285 |
Fixed assets, net | 969,161 | 883,490 |
Intangible assets, net | 2,268,611 | 2,115,933 |
Total assets | 54,042,735 | 36,177,708 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,005,867 | 1,327,497 |
Customer card funding | 40,323,617 | 25,960,974 |
Total current liabilities | 41,329,484 | 27,288,471 |
Total liabilities | 41,329,484 | 27,288,471 |
Stockholders' equity | ||
Preferred stock: $0.001 par value; 25,000,000 shares authorized; none issued and outstanding at June 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock: $0.001 par value; 150,000,000 shares authorized, 47,556,912 and 46,440,765 issued at June 30, 2019 and December 31, 2018, respectively | 47,557 | 46,441 |
Additional paid-in capital | 9,833,648 | 8,620,144 |
Treasury stock at cost, 303,450 shares | (150,000) | (150,000) |
Retained earnings | 3,190,044 | 579,582 |
Total Paysign, Inc.'s stockholders' equity | 12,921,249 | 9,096,167 |
Noncontrolling interest | (207,998) | (206,930) |
Total stockholders' equity | 12,713,251 | 8,889,237 |
Total liabilities and stockholders' equity | $ 54,042,735 | $ 36,177,708 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ .001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 47,556,912 | 46,440,765 |
Common stock, shares outstanding | 47,556,912 | 46,440,765 |
Treasury stock shares | 303,450 | 303,450 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 8,636,271 | $ 5,460,723 | $ 15,893,561 | $ 10,137,042 |
Cost of revenues (excluding depreciation and amortization) | 3,598,038 | 2,840,876 | 7,080,174 | 5,274,086 |
Gross profit | 5,038,233 | 2,619,847 | 8,813,387 | 4,862,956 |
Operating expenses | ||||
Depreciation and amortization | 395,510 | 250,447 | 729,271 | 496,079 |
Selling, general and administrative | 3,012,971 | 1,667,856 | 5,717,921 | 3,247,321 |
Total operating expenses | 3,408,481 | 1,918,303 | 6,447,192 | 3,743,400 |
Income from operations | 1,629,752 | 701,544 | 2,366,195 | 1,119,556 |
Other income (expense) | ||||
Other (expense) | 0 | (3,125) | 0 | (31,125) |
Interest income | 131,811 | 33,015 | 250,985 | 53,615 |
Total other income, net | 131,811 | 29,890 | 250,985 | 22,490 |
Income before provision for income taxes and noncontrolling interest | 1,761,563 | 731,434 | 2,617,180 | 1,142,046 |
Income tax expense | 23,276 | 0 | 7,786 | 0 |
Net income before noncontrolling interest | 1,738,287 | 731,434 | 2,609,394 | 1,142,046 |
Net loss attributable to the noncontrolling interest | 504 | 622 | 1,068 | 2,517 |
Net income attributable to Paysign, Inc. | $ 1,738,791 | $ 732,056 | $ 2,610,462 | $ 1,144,563 |
Net income per common share - basic | $ 0.04 | $ 0.02 | $ 0.06 | $ 0.03 |
Net income per common share - fully diluted | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.02 |
Weighted average common shares outstanding - basic | 47,310,209 | 45,560,692 | 47,136,608 | 45,359,479 |
Weighted average common shares outstanding - fully diluted | 54,967,595 | 51,988,192 | 54,739,483 | 51,437,538 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Noncontrolling Interest | Total |
Beginning balance, shares at Dec. 31, 2017 | 43,670,765 | |||||
Beginning balance, value at Dec. 31, 2017 | $ 43,671 | $ 7,155,970 | $ (150,000) | $ (2,008,472) | $ (200,117) | $ 4,841,052 |
Stock-based compensation | 137,401 | 137,401 | ||||
Net income (loss) | 412,507 | (1,895) | 410,612 | |||
Ending balance, shares at Mar. 31, 2018 | 43,670,765 | |||||
Ending balance, value at Mar. 31, 2018 | $ 43,671 | 7,293,371 | (150,000) | (1,595,965) | (202,012) | 5,389,065 |
Beginning balance, shares at Dec. 31, 2017 | 43,670,765 | |||||
Beginning balance, value at Dec. 31, 2017 | $ 43,671 | 7,155,970 | (150,000) | (2,008,472) | (200,117) | 4,841,052 |
Net income (loss) | 1,142,046 | |||||
Ending balance, shares at Jun. 30, 2018 | 43,670,765 | |||||
Ending balance, value at Jun. 30, 2018 | $ 43,671 | 7,505,552 | (150,000) | (863,909) | (202,634) | 6,332,680 |
Beginning balance, shares at Mar. 31, 2018 | 43,670,765 | |||||
Beginning balance, value at Mar. 31, 2018 | $ 43,671 | 7,293,371 | (150,000) | (1,595,965) | (202,012) | 5,389,065 |
Stock-based compensation | 212,181 | 212,181 | ||||
Net income (loss) | 732,056 | (622) | 731,434 | |||
Ending balance, shares at Jun. 30, 2018 | 43,670,765 | |||||
Ending balance, value at Jun. 30, 2018 | $ 43,671 | 7,505,552 | (150,000) | (863,909) | (202,634) | 6,332,680 |
Beginning balance, shares at Dec. 31, 2018 | 46,440,765 | |||||
Beginning balance, value at Dec. 31, 2018 | $ 46,441 | 8,620,144 | (150,000) | 579,582 | (206,930) | 8,889,237 |
Issuance of stock for previously vested stock based compensation, shares | 291,147 | |||||
Issuance of stock for previously vested stock based compensation, value | $ 291 | (291) | ||||
Stock-based compensation | 646,710 | 646,710 | ||||
Net income (loss) | 871,671 | (564) | 871,107 | |||
Ending balance, shares at Mar. 31, 2019 | 46,731,912 | |||||
Ending balance, value at Mar. 31, 2019 | $ 46,732 | 9,266,563 | (150,000) | 1,451,253 | (207,494) | 10,407,054 |
Beginning balance, shares at Dec. 31, 2018 | 46,440,765 | |||||
Beginning balance, value at Dec. 31, 2018 | $ 46,441 | 8,620,144 | (150,000) | 579,582 | (206,930) | 8,889,237 |
Net income (loss) | 2,609,394 | |||||
Ending balance, shares at Jun. 30, 2019 | 47,556,912 | |||||
Ending balance, value at Jun. 30, 2019 | $ 47,557 | 9,833,648 | (150,000) | 3,190,044 | (207,998) | 12,713,251 |
Beginning balance, shares at Mar. 31, 2019 | 46,731,912 | |||||
Beginning balance, value at Mar. 31, 2019 | $ 46,732 | 9,266,563 | (150,000) | 1,451,253 | (207,494) | 10,407,054 |
Issuance of stock for previously vested stock based compensation, shares | 825,000 | |||||
Issuance of stock for previously vested stock based compensation, value | $ 825 | (825) | ||||
Stock-based compensation | 567,910 | 567,910 | ||||
Net income (loss) | 1,738,791 | (504) | 1,738,287 | |||
Ending balance, shares at Jun. 30, 2019 | 47,556,912 | |||||
Ending balance, value at Jun. 30, 2019 | $ 47,557 | $ 9,833,648 | $ (150,000) | $ 3,190,044 | $ (207,998) | $ 12,713,251 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income attributable to Paysign, Inc. | $ 2,610,462 | $ 1,144,563 |
Adjustments to reconcile net income attributable to Paysign, Inc. to net cash provided by operating activities: | ||
Change in noncontrolling interest | (1,068) | (2,517) |
Depreciation and amortization | 729,271 | 496,079 |
Stock based compensation | 1,214,620 | 349,582 |
Changes in operating assets and liabilities: | ||
Change in accounts receivable | (611,589) | (24,059) |
Change in prepaid expenses and other current assets | 208,608 | (474,354) |
Change in accounts payable and accrued liabilities | (321,630) | (456,546) |
Change in customer card funding | 14,362,643 | 4,047,583 |
Net cash provided by operating activities | 18,191,317 | 5,080,331 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (234,255) | (61,473) |
Increase in intangible assets | (733,365) | (645,441) |
Net cash used in investing activities | (967,620) | (706,914) |
Cash flows from financing activities: | ||
Net change in cash and restricted cash | 17,223,697 | 4,373,417 |
Cash and restricted cash, beginning of period | 31,665,741 | 17,164,757 |
Cash and restricted cash, end of period | 48,889,438 | 21,538,174 |
Supplemental cash flow information: | ||
Interest paid | 0 | 0 |
Income taxes paid | $ 0 | $ 0 |
CASH AND RESTRICTED CASH RECONC
CASH AND RESTRICTED CASH RECONCILIATION (Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash And Restricted Cash Reconciliation | ||||
Cash | $ 6,289,008 | $ 5,615,073 | $ 3,074,147 | |
Restricted cash | 42,600,430 | 26,050,668 | 18,464,027 | |
Total cash and restricted cash | $ 48,889,438 | $ 31,665,741 | $ 21,538,174 | $ 17,164,757 |
1. BASIS OF PRESENTATION AND SU
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES The foregoing unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the disclosures required by GAAP for complete financial statements. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto included on Form 10-K for the year ended December 31, 2018. In the opinion of management, the unaudited interim condensed financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. About Paysign, Inc. Paysign, Inc. (the “Company,” “Paysign,” or “we”, formerly known as 3PEA International, Inc.) is a vertically integrated provider of innovative prepaid card products and processing services for corporate, consumer and government applications. Our payment solutions are utilized by our corporate customers as a means to increase customer loyalty, increase patient adherence rate, reduce administration costs and streamline operations. Public sector organizations can utilize our payment solutions to disburse public benefits or for internal payments. The Company markets prepaid card solutions under our Paysign ® The Paysign brand offers prepaid card based solutions or “card products” for corporate incentive rewards and corporate expense, per diem and travel payments, healthcare reimbursement payments, pharmaceutical co-pay assistance, donor compensation and clinical trials. We plan to expand our product offering to include payroll cards, general purpose re-loadable cards, and others. Our cards are offered to end users through our relationships with bank issuers. The Paysign platform was built on modern cross-platform architecture and designed to be highly flexible, scalable and customizable. The platform allows us to significantly expand our operational capabilities by facilitating entry into new markets within the payments space through its flexibility and ease of customization. The Paysign platform delivers cost benefits and revenue building opportunities to our partners. We manage all aspects of the debit card lifecycle, from managing the card design and approval processes with partners and networks, to production, packaging, distribution, and personalization. We oversee inventory and security controls, renewals, lost and stolen card management and replacement. We deploy a fully staffed, in-house customer service department which utilizes bilingual customer service agents, Interactive Voice Response (IVR), and two-way short message service (SMS) messaging and text alerts. On March 4, 2019, our board of directors and stockholders holding a majority of our outstanding common stock agreed to amend our articles of incorporation to change our name from 3PEA International, Inc. to Paysign, Inc. As a result, we amended our articles of incorporation on April 23, 2019 for such name change. Additionally, we changed our trading symbol on the NASDAQ Capital Market to “PAYS”. Principles of consolidation Use of estimates Cash restricted Intangible assets Internally Developed Software Costs - For computer software developed or obtained for internal use, costs that are incurred in the preliminary project and post implementation stages of software development are expensed as incurred. Costs incurred during the application and development stage are capitalized. Capitalized costs are amortized using the straight-line method over a three-year estimated useful life, beginning in the period in which the software is available for use. For intangible assets, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Earnings per share Revenue and expense recognition (Adoption of ASC 606, Revenue from Contracts with Customers ) Revenue from Contracts with Customers (ASC Topic 606), The Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customers; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligations. The Company generates revenue through fees generated from cardholder transactions, interchange and card program management fees. Revenue from cardholder transactions, interchange and card program management fees is recorded when the performance obligation is fulfilled. The Company records all revenue on a gross basis since it is the primary obligor and establishes the price in the contract arrangement with its customers. The Company is currently under no obligation for refunding any fees or has any obligations for disputed claim settlements. Given the nature of the Company’s services and contracts, it has no contract assets. Stock-Based Compensation Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, Prior to the adoption of ASU 2018-07, stock based compensation for non-employees is accounted for using the Equity-Based Payments to Non-Employee Topic of the FASB ASC , Stock based compensation for employees is accounted for using the Stock Based Compensation Topic of the FASB ASC. We use the fair value method for equity instruments granted to employees and will use the Black Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the requisite service periods, which are generally the vesting periods. New accounting pronouncements Leases. |
2. FIXED ASSETS
2. FIXED ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | 2. FIXED ASSETS Fixed assets consist of the following: June 30, December 31, Equipment $ 1,692,726 $ 1,586,954 Software 265,274 165,274 Furniture and fixtures 149,684 140,209 Website Costs 44,475 25,467 Leasehold improvements 52,894 52,894 2,205,053 1,970,798 Less: accumulated depreciation and amortization 1,235,892 1,087,308 Fixed assets, net $ 969,161 $ 883,490 |
3. INTANGIBLE ASSETS
3. INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 3. INTANGIBLE ASSETS Intangible assets consist of the following: June 30, December 31, Patents and trademarks $ 36,073 $ 36,073 Platform 4,761,133 4,105,780 Kiosk 64,802 64,802 Licenses 511,697 433,685 5,373,705 4,640,340 Less: accumulated amortization 3,105,094 2,524,407 Intangible assets, net $ 2,268,611 $ 2,115,933 Intangible assets are amortized over their estimated useful lives ranging from 3 to 5 years. |
4. COMMON STOCK
4. COMMON STOCK | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
COMMON STOCK | 4. COMMON STOCK At June 30, 2019, the Company's authorized capital stock was 150,000,000 shares of common stock, par value $0.001 per share, and 25,000,000 shares of preferred stock, par value $0.001 per share. As of that date, the Company had 47,556,912 shares of common stock, and no shares of preferred stock. 2019 Transactions: In February 2019, the Company issued a total of 291,147 shares of common stock to three individuals for restricted stock awards previously granted, earned and vested. In April 2019, the Company issued a total of 500,000 shares of common stock to four individuals for stock awards previously granted, earned and vested. In May 2019, the Company issued a total of 100,000 shares of common stock to three individuals for stock awards previously granted, earned and vested. In June 2019, the Company issued a total of 225,000 shares of common stock to three individuals for stock awards previously granted, earned and vested. 2018 Transactions: Stock and Warrant Grants: In May 2019 and June 2019, the Company granted three employees a total of 145,000 shares of common stock. The shares were valued for a total of $1,426,450 based on the average closing stock price per share of $9.84 at the date of grants. The 145,000 shares have an annual vesting period of five years with the first vesting period occurring on June 30, 2020 with vesting start date for each grant of July 1, 2019. In April 2019, the Company granted an employee a total of 50,000 shares of common stock. The shares were valued at $377,000 based on the closing stock price per share of $7.54 at the date of grant. The 50,000 shares have an annual vesting period of five years with the first vesting period occurring on April 30, 2020. From 2016 to 2018, excluding employee terminations, the Company granted a total of 8,690,000 shares of common stock and 2,688,000 stock options. The shares were valued at $6,419,849 or an average price per share of $.74. The stock options were valued at $4,172,996 an average price per share of $1.55, collectively vesting over a three to five year period. The amount expensed related to these grants for the three and six months ended June 30, 2019 $646,710 and $1,214,620, respectively. The amount expensed for the three and six months ended June 30, 2018 totaled $137,401 and $349,582, respectively. |
5. BASIC AND FULLY DILUTED NET
5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE | 5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and fully diluted net income per common share for the three months ended June 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 1,738,791 $ 732,056 Denominator: Weighted average common shares: Denominator for basic calculation 47,310,209 45,560,692 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,287,387 662,500 Unvested restricted stock grants 5,370,000 5,765,000 Denominator for fully diluted calculation 54,967,595 51,988,192 Net income per common share: Basic $ 0.04 $ 0.02 Fully diluted $ 0.03 $ 0.01 The following table sets forth the computation of basic and fully diluted net income per common share for the six months ended June 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 2,610,462 $ 1,144,563 Denominator: Weighted average common shares: Denominator for basic calculation 47,136,608 45,359,479 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,158,289 422,253 Unvested restricted stock grants 5,444,586 5,655,806 Denominator for fully diluted calculation 54,739,483 51,437,538 Net income per common share: Basic $ 0.06 $ 0.03 Fully diluted $ 0.05 $ 0.02 |
6. SUBSEQUENT EVENTS
6. SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 6. SUBSEQUENT EVENTS The Company has completed an evaluation of all subsequent events through the issuance date of these financial statements and concluded that no other subsequent events occurred that required recognition to the financial statements or disclosures in the Notes to Consolidated Financial Statements or Cash Flows. |
1. BASIS OF PRESENTATION AND _2
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation |
Use of estimates | Use of estimates |
Cash restricted | Cash restricted |
Intangible assets | Intangible assets Internally Developed Software Costs - For computer software developed or obtained for internal use, costs that are incurred in the preliminary project and post implementation stages of software development are expensed as incurred. Costs incurred during the application and development stage are capitalized. Capitalized costs are amortized using the straight-line method over a three-year estimated useful life, beginning in the period in which the software is available for use. For intangible assets, we recognize an impairment loss if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. |
Earnings per share | Earnings per share |
Revenue and expense recognition | Revenue and expense recognition (Adoption of ASC 606, Revenue from Contracts with Customers ) Revenue from Contracts with Customers (ASC Topic 606), The Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customers; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligations. The Company generates revenue through fees generated from cardholder transactions, interchange and card program management fees. Revenue from cardholder transactions, interchange and card program management fees is recorded when the performance obligation is fulfilled. The Company records all revenue on a gross basis since it is the primary obligor and establishes the price in the contract arrangement with its customers. The Company is currently under no obligation for refunding any fees or has any obligations for disputed claim settlements. Given the nature of the Company’s services and contracts, it has no contract assets. |
Stock-based compensation | Stock-Based Compensation Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, Prior to the adoption of ASU 2018-07, stock based compensation for non-employees is accounted for using the Equity-Based Payments to Non-Employee Topic of the FASB ASC , Stock based compensation for employees is accounted for using the Stock Based Compensation Topic of the FASB ASC. We use the fair value method for equity instruments granted to employees and will use the Black Scholes model for measuring the fair value of options, if issued. The stock based fair value compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the requisite service periods, which are generally the vesting periods. |
New Accounting Pronouncements | New accounting pronouncements Leases. |
2. FIXED ASSETS (Tables)
2. FIXED ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed assets | June 30, December 31, Equipment $ 1,692,726 $ 1,586,954 Software 265,274 165,274 Furniture and fixtures 149,684 140,209 Website Costs 44,475 25,467 Leasehold improvements 52,894 52,894 2,205,053 1,970,798 Less: accumulated depreciation and amortization 1,235,892 1,087,308 Fixed assets, net $ 969,161 $ 883,490 |
3. INTANGIBLE ASSETS (Tables)
3. INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |
Intangible Assets | June 30, December 31, Patents and trademarks $ 36,073 $ 36,073 Platform 4,761,133 4,105,780 Kiosk 64,802 64,802 Licenses 511,697 433,685 5,373,705 4,640,340 Less: accumulated amortization 3,105,094 2,524,407 Intangible assets, net $ 2,268,611 $ 2,115,933 |
5. BASIC AND FULLY DILUTED NE_2
5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of earnings per share | The following table sets forth the computation of basic and fully diluted net income per common share for the three months ended June 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 1,738,791 $ 732,056 Denominator: Weighted average common shares: Denominator for basic calculation 47,310,209 45,560,692 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,287,387 662,500 Unvested restricted stock grants 5,370,000 5,765,000 Denominator for fully diluted calculation 54,967,595 51,988,192 Net income per common share: Basic $ 0.04 $ 0.02 Fully diluted $ 0.03 $ 0.01 The following table sets forth the computation of basic and fully diluted net income per common share for the six months ended June 30, 2019 and 2018: 2019 2018 Numerator: Net income attributable to Paysign, Inc. $ 2,610,462 $ 1,144,563 Denominator: Weighted average common shares: Denominator for basic calculation 47,136,608 45,359,479 Weighted average effects of potentially diluted common stock: Stock options (calculated using the treasury method) 2,158,289 422,253 Unvested restricted stock grants 5,444,586 5,655,806 Denominator for fully diluted calculation 54,739,483 51,437,538 Net income per common share: Basic $ 0.06 $ 0.03 Fully diluted $ 0.05 $ 0.02 |
1. BASIS OF PRESENTATION AND _3
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Former name | 3Pea International, Inc. |
Entity former name change date | Mar. 4, 2019 |
2. FIXED ASSETS (Details)
2. FIXED ASSETS (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed Assets Gross | $ 2,205,053 | $ 1,970,798 |
Less: accumulated depreciation | 1,235,892 | 1,087,308 |
Fixed assets, net | 969,161 | 883,490 |
Equipment [Member] | ||
Fixed Assets Gross | 1,692,726 | 1,586,954 |
Software [Member] | ||
Fixed Assets Gross | 265,274 | 165,274 |
Furniture and Fixtures [Member] | ||
Fixed Assets Gross | 149,684 | 140,209 |
Website Costs [Member] | ||
Fixed Assets Gross | 44,475 | 25,467 |
Leasehold Improvements [Member] | ||
Fixed Assets Gross | $ 52,894 | $ 52,894 |
3. INTANGIBLE ASSETS (Details)
3. INTANGIBLE ASSETS (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Intangible assets gross | $ 5,373,705 | $ 4,640,340 |
Less: accumulated amortization | 3,105,094 | 2,524,407 |
Intangible assets, net | 2,268,611 | 2,115,933 |
Patents and Trademarks [Member] | ||
Intangible assets gross | 36,073 | 36,073 |
Platform [Member] | ||
Intangible assets gross | 4,761,133 | 4,105,780 |
Kiosk [Member] | ||
Intangible assets gross | 64,802 | 64,802 |
Licenses [Member] | ||
Intangible assets gross | $ 511,697 | $ 433,685 |
3. INTANGIBLE ASSETS (Details N
3. INTANGIBLE ASSETS (Details Narrative) | 6 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | |
Intangible assets useful lives | 3 years |
Maximum [Member] | |
Intangible assets useful lives | 5 years |
4. COMMON STOCK (Details Narrat
4. COMMON STOCK (Details Narrative) - USD ($) | 3 Months Ended | 4 Months Ended | 5 Months Ended | 6 Months Ended | 42 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Apr. 30, 2019 | May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||
Common stock, par value | $ .001 | $ .001 | $ .001 | $ 0.001 | ||||
Common stock, shares outstanding | 47,556,912 | 47,556,912 | 47,556,912 | 46,440,765 | ||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 | ||||
Restricted stock granted, shares | 8,690,000 | |||||||
Restricted stock grant, value | $ 6,419,849 | |||||||
Options granted | 2,688,000 | |||||||
Options granted fair value | $ 4,172,996 | |||||||
Stock based compensation | $ 646,710 | $ 137,401 | $ 1,214,620 | $ 349,582 | ||||
Common Stock | ||||||||
Stock issued new, shares | 0 | |||||||
Restricted Stock [Member] | ||||||||
Stock issued new, shares | 825,000 | 1,116,147 | ||||||
Three Employees [Member] | Common Stock | ||||||||
Restricted stock granted, shares | 146,000 | |||||||
Restricted stock grant, value | $ 1,426,450 | |||||||
Vesting period | 5 years | |||||||
Four Individuals [Member] | Restricted Stock [Member] | ||||||||
Stock issued new, shares | 500,000 | |||||||
Three Individuals [Member] | Restricted Stock [Member] | ||||||||
Stock issued new, shares | 100,000 | 225,000 | ||||||
An Employee [Member] | Common Stock | ||||||||
Restricted stock granted, shares | 50,000 | |||||||
Restricted stock grant, value | $ 377,000 | |||||||
Vesting period | 5 years |
5. BASIC AND FULLY DILUTED NE_3
5. BASIC AND FULLY DILUTED NET INCOME PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income attributable to Paysign, Inc. | $ 1,738,791 | $ 732,056 | $ 2,610,462 | $ 1,144,563 |
Denominator: | ||||
Denominator for basic calculation | 47,310,209 | 45,560,692 | 47,136,608 | 45,359,479 |
Weighted average effects of potentially diluted common stock: | ||||
Stock options (calculated under treasury method) | 2,287,387 | 662,500 | 2,158,289 | 422,253 |
Unvested restricted stock grants | 5,370,000 | 5,765,000 | 5,444,586 | 5,655,806 |
Denominator for fully diluted calculation | 54,967,595 | 51,988,192 | 54,739,483 | 51,437,538 |
Net income per common share: | ||||
Basic | $ 0.04 | $ 0.02 | $ 0.06 | $ 0.03 |
Fully diluted | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.02 |