false 0001088034 0001088034 2023-08-14 2023-08-14
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  August 14, 2023
 
USIO, INC.
(Exact name of registrant as specified in its charter)
 
Nevada
 
000-30152
 
98-0190072
(State or other jurisdiction
 
(Commission
 
(IRS Employer
of incorporation)
 
File Number)
 
Identification No.)
 
3611 Paesanos Parkway, Suite 300, San Antonio, TX
 
78231
(Address of principal executive offices)
 
(Zip Code)
 
(210) 249-4100
(Registrant’s telephone number, including area code)
 
Not applicable.
(Former name or former address, if changed since last report)
 
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 (see General Instruction A.2. below):
 
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-4(c))
 
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, par value $0.001 per share
USIO
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 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 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. ☐
 
 
 

 
Item 2.02        Results of Operations and Financial Condition.
 
 
On August 14, 2023, Usio, Inc. issued a press release announcing financial results for its quarter ended June 30, 2023. The full text of the press release is furnished as Exhibit 99.1. The information furnished in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section.
 
This report contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements related to its future activities or future events or conditions. These forward-looking statements are identified by the use of words such as “believe,” “expect,” “project,” “anticipate,” “target,” and “launch,” or similar expressions including statements about commercial operations, technology progress, growth and future financial performance of the Company. Forward-looking statements in this report are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks that the Company’s security applications may be insufficient; the Company’s ability to adapt to rapid technological change; adverse effects on the Company’s relationships with Automated Clearing House, bank sponsors and credit card associations; the Company’s ability to comply with federal or state regulations; the Company’s exposure to credit risks, data breaches, fraud or software failures, the uncertainty caused by the pandemic and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2022. One or more of these factors have affected, and in the future could affect, the Company’s businesses and financial results and could cause actual results to differ materially from plans and projections. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date as of which such statement was made.
 
 
Item 9.01        Financial Statements and Exhibits.
 
 
99.1
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 
 
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.
 
 
 
 
Usio, Inc.
 
(Registrant)
   
Date: August 14, 2023
/s/ Louis A. Hoch
 
Name: Louis A. Hoch
 
Title: Chief Executive Officer
 
 
 
 
 

Exhibit 99.1

 

 

 

logo01.jpg

 


Usio Announces Record Second Quarter 2023 Financial Results

 

Revenue of $21.3 million, up 31%; 12th Consecutive Quarter of Revenue Growth

Third Consecutive Quarter of More than $1 Million of Adjusted EBITDA1

 

Reiterates Expectations of 18% - 20% Full Year 2023 Revenue Growth

 

SAN ANTONIO, August 14, 2023 (GLOBE NEWSWIRE) – Usio, Inc: (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the second quarter, which ended June 30, 2023.

 

Louis Hoch, President and Chief Executive Officer of Usio, said, “I am extremely pleased to report another quarter of record revenue, up 31% from the year ago quarter. More importantly, this drove a significant year-over-year improvement in key profitability measures, with our second consecutive quarter of record gross profits, leading to another quarter of positive GAAP earnings and our third consecutive quarter of more than $1 million in adjusted EBITDA1. These results once again illustrate how our diversified strategy of offering a comprehensive portfolio of complementary electronic payment and related technologies has been successful, and this year will lead to significant growth, positive cash flow and an improved bottom line.

 

"Second quarter results were led by a 276% increase in prepaid revenues, which the Company expects should more than double in 2023 compared to 2022, in part due to the more than $6 million of revenue expected to be generated over the second half of 2023 from spoilage fees on expired card programs. Our prepaid card business has also been expanding its applications and rapidly growing its customer base, particularly with non-profit organizations and in the corporate expense and general disbursements card markets, while also benefitting from the strong growth of many long-term customers. Revenues generated by our subsidiary Usio Output Solutions were up 20%. Output Solutions continues to add new clients with recurring needs - especially in the governmental, utility and energy markets - while strategically building its electronic bill presentment and payments business. Credit Card revenues were also up, led by a 26% increase in our flagship PayFac business, where transactions in the quarter were up 31% as compared to the second quarter of 2022. During the quarter, Credit Card completed numerous new integrations, including new governmental agencies that should drive total credit card volume and revenue growth over the second half of the year. ACH revenues were also up in the quarter, despite the significant decrease in revenues attributable to our exit from the crypto currency market in the second half of 2022. Excluding the Voyager crypto currency volume, ACH volumes would have been up in the quarter, although ACH will be facing difficult year-ago comparables over the second half of the year, as crypto currency was winding down in late 2022 while still contributing to year-ago results.

 

Gross profits for the quarter ended June 30, 2023 were a record $5.0 million and gross margins expanded 3.5% compared to the second quarter of 2022. Margins reflect a favorable sales mix and higher margin prepaid card residual revenues from breakage and spoilage, as well as the benefit of some one-time items. Selling, general and administrative expenses in the quarter were essentially unchanged from a year ago for the second consecutive quarter, despite a 31% increase in quarterly revenues as compared to last year. As a result, the Company reported a $2.1 million increase in GAAP net income, which rose to $0.2 million in the quarter from a loss of $1.9 million a year ago. Adjusted EBITDA1 was $1.2 million, a $1.7 million improvement from the $0.6 million Adjusted EBITDA1 loss a year ago, and the third consecutive quarter in which the Company has reported over $1 million in quarterly Adjusted EBITDA1. Over the first six months of the year, the Company has generated $3.1 million more in Adjusted EBITDA1 than in the comparable year ago period. The Company’s financial position also continued to improve, with $0.9 million in cash added to the balance sheet over the first six months of the year as the Company generated $1.3 million in Adjusted Operating Cash Flows1 in the first half of this fiscal year."

 

Mr. Hoch continued, "This was the most outstanding quarterly and first half financial performance in the Company’s history, which has us well positioned to meet our 18% - 20% revenue growth objective for the year, despite some second half challenges. This success has also enabled us to invest in our franchise, expand our products and solutions, and enter new markets. Both Card and Output Solutions are enjoying unprecedented success in the governmental market with long-term programs that could lead to additional opportunities. Though ACH could encounter headwinds over the second half of the year, ACH is benefitting from new programs that bundle all of our electronic and related payment technologies, such as ACH, to both collect and disburse payments. And, the prepaid card business continues to leverage its deep relationships and innovative technologies to respond to the myriad of new and unique applications for which its solutions are being adopted. As a result, we have never had as strong a sales pipeline as we have today, which supports our confidence in an even brighter future. Our success is the culmination of both the hard work of our many team members and the strategic decisions and market foresight that foresaw how a diversified solutions set and customer mix represents a formula for strong growth and improving profitability."

 

Quarterly Processing and Transaction Volumes

 

Total payment transactions processed in the second quarter of 2023 were 9 million, a decrease of 14% over the same quarter of last year. Total payment dollars processed through all payment channels in the second quarter of 2023 were $1.3 billion, down compared to last year’s second quarter. The decrease in both dollars and transactions processed in the quarter is primarily attributable to the Company's exit from the crypto currency market over the second half of 2022.

 

In our Card segment, dollars processed were up 2% and transactions processed were up 15% from a year ago. Prepaid card load volume was up 48%, transactions processed were down 9% and purchase dollars processed were up 51%, in each case, from the same quarter a year ago. ACH electronic check transaction volume was down 31%, electronic check dollars processed were down 55% and return check transactions processed were down by 17%, in each case, compared to a year ago.

 

Second Quarter 2023 Revenue Detail

 

Revenues for the quarter ended June 30, 2023 increased 31% compared to the prior year quarter to $21.3 million, and revenues for the six months ended June 30, 2023 increased 24% compared to the prior year six-month period to $42.7 million, reflecting growth in the Prepaid, Usio Output Solutions, and Credit Card lines of business.

 

   

Three Months Ended June 30,

 
   

2023

   

2022

   

$ Change

   

% Change

 
                                 

ACH and complementary service revenue

  $ 4,079,157     $ 3,899,612     $ 179,545       5 %

Credit card revenue

    7,115,884       6,885,697       230,187       3 %

Prepaid card services revenue

    5,217,468       1,388,110       3,829,358       276 %

Output solutions revenue

    4,849,197       4,042,267       806,930       20 %

Total Revenue

  $ 21,261,706     $ 16,215,686     $ 5,046,020       31 %

 

   

Six Months Ended June 30,

 
   

2023

   

2022

   

$ Change

   

% Change

 
                                 

ACH and complementary service revenue

  $ 7,419,879     $ 7,742,928     $ (323,049 )     (4 )%

Credit card revenue

    14,455,782     $ 13,653,919       801,863       6 %

Prepaid card services revenue

    10,024,872     $ 4,156,557       5,868,315       141 %

Output solutions revenue

    10,807,417       8,773,625       2,033,792       23 %

Total Revenue

  $ 42,707,950     $ 34,327,029     $ 8,380,921       24 %

 

Gross profits for the quarter were $5.0 million while gross margins were 23.6%, up 3.5% from the same period a year ago, and gross profits for the six months ended June 30, 2023 were $9.9, with gross margins of 23.2%, up 3.5% from the same period a year ago. This increase in gross margins reflects the favorable impact of residual revenues generated from prepaid card breakage and spoilage, as well as an improvement at Output Solutions, where the significant increase in revenue better leveraged its fixed cost base.

 

Other selling, general and administrative expenses were $3.9 million for the quarter ended June 30, 2023, flat compared to the prior year period despite a 31% increase in revenues, reflecting a focus on expense control. Similarly, other selling, general, and administrative expenses for the six months ended June 30, 2023 were $7.7 compared to $7.6 in the prior year period.

 

For the quarter, we reported an operating income of $0.1 million and Adjusted EBITDA1 of $1.2 million, an improvement of $1.7 million from an Adjusted EBITDA1 loss of $0.6 million for the prior year quarter. Net income for the quarter ended June 30, 2023 was $0.2 million, or $0.01 per share, compared to a net loss of $1.9 million, or ($0.10) per share, for the same period in the prior year. All of the Company's key second quarter 2023 profitability metrics - including operating income, Adjusted EBITDA1, net income and earnings per share - improved from the same quarter a year ago due to increased revenues, record gross profits and disciplined expense control.

 

For the six months ended June 30, 2023, operating income was $0.1 million and Adjusted EBITDAwas $2.2 million, an improvement of $3.1 from an Adjusted EBITDA1 loss of $0.9 million for the prior year six-month period. Net income in the first six months of 2023 was $0.2 million, or $0.01 per share, versus a net loss of $3.6 million, or ($0.18) per share, in the first six months of 2022.

 

Adjusted Operating Cash Flows1 (excluding merchant reserve funds, prepaid card load assets, customer deposits and net operating lease assets and obligations) was $1.3 million for the six months ended June 30, 2023. Cash flows provided by operating activities was $27.8 million for the six months ended June 30, 2023, compared to cash flows used by operating activities of $22.1 million in the same period a year ago.

 

We continue to be in solid financial condition with $6.6 million in cash and cash equivalents as of June 30, 2023, reflecting a $0.9 million improvement in cash balances compared to December 31, 2022

 

 
Please see reconciliation of GAAP to Non-GAAP Financial Measures

 

Conference Call and Webcast

 

Usio, Inc.'s management will host a conference call on Monday, August 14, 2023, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-883-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors.

 

A replay of the call will be available approximately one hour after the end of the call through August 28, 2023. The replay can be accessed via the Company’s website or by dialing +1-877-344-7529 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 4319180.

 

About Usio, Inc.

 

Usio, Inc. (Nasdaq: USIO), is a leading Fintech that operates a full stack of proprietary, cloud-based integrated payment and embedded financial solutions in a single ecosystem to a wide range of merchants, billers, banks, service bureaus and card issuers. The Company operates credit/debit and ACH payment processing platforms, as well as a turn-key card issuing platform to deliver convenient, world-class payment solutions and services to its clients. The Company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has a development office in Austin, Texas.

 

Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

 

About Non-GAAP Financial Measures

 

This press release includes non-GAAP financial measures, as defined in Regulation G of the Securities and Exchange Act of 1934, as amended, of EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business. The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles. The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as costs related to acquisitions. The Company defines adjusted EBITDA margins as the adjusted EBITDA, as defined above, divided by total revenues. The Company defines adjusted operating cash flow as net cash provided (used) by operating activities, less changes in prepaid card load obligations, customer deposits, merchant reserves and net operating lease assets and obligations. These adjustments to net cash provided (used) by operating activities are not inclusive of any regular expense items, and only include changes in our assets and liabilities accounts on our consolidated balance sheet. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows as indicators of the Company's operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations. 

 

Management believes EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flows are helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. 

 

EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided (used) by operating activities, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, adjusted EBITDA, adjusted EBITDA margins and adjusted operating cash flow have limitations as analytical tools and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our operating results as reported under GAAP.

 

1 See reconciliation of non-GAAP financial measures below


 

FORWARD-LOOKING STATEMENTS DISCLAIMER

 

Except for the historical information contained herein, the matters discussed in this press release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "should," "intend," "look forward," "anticipate," "schedule,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn, the realization of opportunities from the IMS acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2022. One or more of these factors have affected, and in the future could affect, the Company’s businesses and financial results and could cause actual results to differ materially from plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements included in this press release are reasonable, the Company can give no assurance such assumptions will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

 

Contact:

 

Paul Manley

Senior Vice President, Investor Relations

paul.manley@usio.com

612-834-1804

 

 

 

USIO, INC.

CONSOLIDATED BALANCE SHEETS

 

   

June 30, 2023

   

December 31, 2022

 
   

(Unaudited)

         

ASSETS

               

Cash and cash equivalents

  $ 6,575,124     $ 5,709,117  

Accounts receivable, net

    5,221,772       4,371,640  

Settlement processing assets

    45,060,670       49,737,068  

Prepaid card load assets

    46,398,476       20,170,761  

Customer deposits

    1,563,192       1,554,122  

Inventory

    482,170       507,355  

Prepaid expenses and other

    627,117       450,389  

Current assets before merchant reserves

    105,928,521       82,500,452  

Merchant reserves

    5,141,040       4,909,501  

Total current assets

    111,069,561       87,409,953  
                 

Property and equipment, net

    3,006,347       3,222,816  
                 

Other assets:

               

Intangibles, net

    2,189,427       2,625,360  

Deferred tax asset, net

    1,504,000       1,504,000  

Operating lease right-of-use assets

    2,680,527       2,795,483  

Other assets

    355,357       355,357  

Total other assets

    6,729,311       7,280,200  
                 

Total Assets

  $ 120,805,219     $ 97,912,969  
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

  $ 913,277     $ 858,622  

Accrued expenses

    3,802,854       3,721,108  

Operating lease liabilities, current portion

    663,354       617,319  

Equipment loan, current portion

    43,208       56,429  

Settlement processing obligations

    45,060,670       49,737,068  

Prepaid card load obligations

    46,398,476       20,170,761  

Customer deposits

    1,563,192       1,554,122  

Current liabilities before merchant reserve obligations

    98,445,031       76,715,429  

Merchant reserve obligations

    5,141,040       4,909,501  

Total current liabilities

    103,586,071       81,624,930  
                 

Non-current liabilities:

               

Equipment loan, non-current portion

    -       14,994  

Operating lease liabilities, non-current portion

    2,157,933       2,338,947  

Total liabilities

    105,744,004       83,978,871  
                 

Stockholders' equity:

               

Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at June 30, 2023 (unaudited) and December 31, 2022, respectively

           

Common stock, $0.001 par value, 200,000,000 shares authorized; 28,462,606 and 27,044,900 issued, and 26,362,870 and 25,097,963 outstanding at June 30, 2023 (unaudited) and December 31, 2022, respectively

    196,888       195,471  

Additional paid-in capital

    96,853,243       94,048,603  

Treasury stock, at cost; 2,099,736 and 1,946,937 shares at June 30, 2023 (unaudited) and December 31, 2022, respectively

    (3,924,225 )     (3,749,027 )

Deferred compensation

    (7,421,516 )     (5,697,900 )

Accumulated deficit

    (70,643,175 )     (70,863,049 )

Total stockholders' equity

    15,061,215       13,934,098  
                 

Total Liabilities and Stockholders' Equity

  $ 120,805,219     $ 97,912,969  

 

 

 

 

USIO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

Revenues

  $ 21,261,706     $ 16,215,686     $ 42,707,950     $ 34,327,029  

Cost of services

    16,250,988       12,955,782       32,795,417       27,557,996  

Gross profit

    5,010,718       3,259,904       9,912,533       6,769,033  
                                 

Selling, general and administrative:

                               

Stock-based compensation

    577,869       473,701       1,082,443       1,024,383  

Other SG&A expenses

    3,854,022       3,848,696       7,727,241       7,643,842  

Depreciation and amortization

    522,999       807,934       1,041,028       1,522,869  

Total selling, general and administrative expenses

    4,954,890       5,130,331       9,850,712       10,191,094  
                                 

Operating income (loss)

    55,828       (1,870,427 )     61,821       (3,422,061 )
                                 

Other income and (expense):

                               

Interest income

    218,844       1,166       311,772       1,747  

Interest expense

    (533 )     (1,084 )     (1,195 )     (2,301 )

Other income and (expense), net

    218,311       82       310,577       (554 )
                                 

Income (Loss) before income taxes

    274,139       (1,870,345 )     372,398       (3,422,615 )

Income tax expense

    69,098       70,000       152,524       140,000  
                                 

Net Income (Loss)

  $ 205,041     $ (1,940,345 )   $ 219,874     $ (3,562,615 )
                                 

Income (Loss) Per Share

                               

Basic income (loss) per common share:

  $ 0.01     $ (0.10 )   $ 0.01     $ (0.18 )

Diluted income (loss) per common share:

  $ 0.01     $ (0.10 )   $ 0.01     $ (0.18 )

Weighted average common shares outstanding

                               

Basic

    20,128,429       20,316,572       20,125,440       20,298,573  

Diluted

    26,413,329       20,316,572       26,410,340       20,298,573  

 

 

 

USIO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   

Six Months Ended June 30,

 
   

2023

   

2022

 

Operating Activities

               

Net income (loss)

  $ 219,874     $ (3,562,615 )

Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:

               

Depreciation

    605,095       586,936  

Amortization

    435,933       935,933  

Stock-based compensation

    1,082,443       1,024,383  

Amortization of warrant costs

          17,970  

Non-cash revenue from returned common stock

    (156,162 )      

Changes in operating assets and liabilities:

               

Accounts receivable

    (850,132 )     1,125,416  

Prepaid expenses and other

    (176,728 )     (402,939 )

Operating lease right-of-use assets

    114,956       (281,442 )

Inventory

    25,185      

(53,850)

 

Accounts payable and accrued expenses

    136,401       (829,390 )

Operating lease liabilities

    (134,979 )     289,502  

Prepaid card load obligations

    26,227,715       (21,486,085 )

Merchant reserves

    231,539       433,920  

Customer deposits

    9,070       107,021  

Deferred revenue

          (17,647 )

Net cash provided (used) by operating activities

    27,770,210       (22,112,887 )
                 

Investing Activities

               

Purchases of property and equipment

    (388,628 )     (411,818 )

Net cash (used) by investing activities

    (388,628 )     (411,818 )
                 

Financing Activities

               

Payments on equipment loan

    (28,215 )     (27,110 )

Purchases of treasury stock

    (19,036 )     (546,589 )

Net cash (used) by financing activities

    (47,251 )     (573,699 )
                 

Change in cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves

    27,334,331       (23,098,404 )

Cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves, beginning of year

    32,343,501       51,591,560  
                 

Cash, Cash Equivalents, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period

  $ 59,677,832     $ 28,493,156  
                 

Supplemental disclosures of cash flow information

               

Cash paid during the period for:

               

Interest

  $ 1,195     $ 2,301  

Income taxes

    312,158        

Non-cash financing activities:

               

Issuance of deferred stock compensation

    2,478,506       12,330  

 

 

 

USIO, INC.

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

 

   

Common Stock

   

Additional Paid- In

   

Treasury

   

Deferred

   

Accumulated

   

Total Stockholders'

 
   

Shares

   

Amount

   

Capital

   

Stock

   

Compensation

   

Deficit

   

Equity

 
                                                         

Balance at December 31, 2022

    27,044,900     $ 195,471     $ 94,048,603     $ (3,749,027 )   $ (5,697,900 )   $ (70,863,049 )   $ 13,934,098  
                                                         

Issuance of common stock under equity incentive plan

    1,421,250       1,421       2,638,529             (2,444,054 )           195,896  

Deferred compensation amortization

                            308,676             308,676  

Purchase of treasury stock costs

                      (8,529 )                 (8,529 )

Net income for the period

                                  14,833       14,833  
                                                         

Balance at March 31, 2023

    28,466,150     $ 196,892     $ 96,687,132     $ (3,757,556 )   $ (7,833,278 )   $ (70,848,216 )   $ 14,444,974  
                                                         

Issuance of common stock under equity incentive plan

    111,456       111       354,199             (34,452 )           319,858  

Reversal of deferred compensation amortization that did not vest

    (115,000 )     (115 )     (188,088 )           103,091             (85,112 )

Deferred compensation amortization

                            343,123             343,123  

Purchase of treasury stock costs

                      (10,507 )                 (10,507 )

Non-cash return of common stock

                      (156,162 )                 (156,162 )

Net income for the period

                                  205,041       205,041  
                                                         

Balance at June 30, 2023

    28,462,606     $ 196,888     $ 96,853,243     $ (3,924,225 )   $ (7,421,516 )   $ (70,643,175 )   $ 15,061,215  
                                                         

Balance at December 31, 2021

    26,807,145     $ 195,235     $ 93,100,129     $ (2,404,458 )   $ (6,842,195 )   $ (65,379,805 )   $ 18,668,906  
                                                         

Issuance of common stock under equity incentive plan

    61,600       62       267,856             (12,330 )           255,588  

Warrant compensation costs

                8,985                         8,985  

Deferred compensation amortization

                            295,092             295,092  

Purchase of treasury stock costs

                      (66,494 )                 (66,494 )

Net (loss) for the period

                                  (1,622,270 )     (1,622,270 )
                                                         

Balance at March 31, 2022

    26,868,745     $ 195,297     $ 93,376,970     $ (2,470,952 )   $ (6,559,433 )   $ (67,002,075 )   $ 17,539,807  
                                                         

Issuance of common stock under equity incentive plan

    54,233       52       258,636                         258,688  

Warrant compensation costs

                8,985                         8,985  

Reversal of deferred compensation amortization that did not vest

    (85,000 )     (85 )     (176,465 )           97,621             (78,929 )

Deferred compensation amortization

                            293,942             293,942  

Purchase of treasury stock costs

                      (480,095 )                 (480,095 )

Net (loss) for the period

                                  (1,940,345 )     (1,940,345 )
                                                         

Balance at June 30, 2022

    26,837,978     $ 195,264     $ 93,468,126     $ (2,951,047 )   $ (6,167,870 )   $ (68,942,420 )   $ 15,602,053  
                                                         

 

 

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

Reconciliation from Operating income (Loss) to Adjusted EBITDA:

                               

Operating income (Loss)

  $ 55,828     $ (1,870,427 )   $ 61,821     $ (3,422,061 )

Depreciation and amortization

    522,999       807,934       1,041,028       1,522,869  

EBITDA

    578,827       (1,062,493 )     1,102,849       (1,899,192 )

Non-cash stock-based compensation expense, net

    577,869       473,701       1,082,443       1,024,383  

Adjusted EBITDA

  $ 1,156,696     $ (588,792 )   $ 2,185,292     $ (874,809 )
                                 
                                 

Calculation of Adjusted EBITDA margins:

                               

Revenues

  $ 21,261,706     $ 16,215,686     $ 42,707,950     $ 34,327,029  

Adjusted EBITDA

    1,156,696       (588,792 )     2,185,292       (874,809 )

Adjusted EBITDA margins

    5.4 %     (3.6 )%     5.1 %     (2.5 )%

 

 

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

 

    Six Months Ended June 30,  
   

2023

   

2022

 
                 

Reconciliation from net cash provided (used) by operating activities to Non-GAAP Adjusted Operating Cash Flow (used):

               

Net cash provided (used) by operating activities

  $ 27,770,210     $ (22,112,887 )

Operating cash flow (used) adjustments:

               

Prepaid card load obligations

    (26,227,715 )     21,486,085  

Customer deposits

    (9,070 )     (107,021 )

Merchant reserves

    (231,539 )     (433,920 )

Operating lease right-of-use assets

    (114,956 )     281,442  

Operating lease liabilities

    134,979       (289,502 )

Total adjustments to net cash provided (used) by operating activities

  $ (26,448,301 )   $ 20,937,084  

Adjusted operating cash flows provided (used)

  $ 1,321,909     $ (1,175,803 )

 

 
v3.23.2
Document And Entity Information
Aug. 14, 2023
Document Information [Line Items]  
Entity, Registrant Name USIO, INC.
Document, Type 8-K
Document, Period End Date Aug. 14, 2023
Entity, Incorporation, State or Country Code NV
Entity, File Number 000-30152
Entity, Tax Identification Number 98-0190072
Entity, Address, Address Line One 3611 Paesanos Parkway
Entity, Address, Address Line Two Suite 300
Entity, Address, City or Town San Antonio
Entity, Address, State or Province TX
Entity, Address, Postal Zip Code 78231
City Area Code 210
Local Phone Number 249-4100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock
Trading Symbol USIO
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0001088034

Usio (NASDAQ:USIO)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Usio Charts.
Usio (NASDAQ:USIO)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Usio Charts.