Paysign, Inc. Announces Preliminary Full-Year 2019 Financial Highlights and Delay of Form 10-K Filing
March 16 2020 - 8:15AM
Business Wire
Paysign, Inc. (NASDAQ: PAYS) (“Paysign”), a vertically
integrated provider of innovative prepaid card programs, digital
banking and processing services for corporate, consumer and
government applications, announced today that it will be delayed in
the filing of its Annual Report on Form 10-K for the fiscal year
ended December 31, 2019. Paysign is filing a Form 12b-25,
Notification of Late Filing, with the Securities and Exchange
Commission, which will provide Paysign with a 15 calendar-day
extension beyond the March 16, 2020 deadline within which to file
the annual report on Form 10-K. The filing extension will provide
the necessary time to complete the financial audit.
For the full year 2019, total revenues are expected to be $34.7
million, an increase of 48% when compared to 2018. Net income
attributable to Paysign on a GAAP basis is expected to be $7.5
million, an increase of 188% when compared to 2018, and Adjusted
EBITDA is expected to be $10.1 Million, an increase of 106% when
compared to 2018.
These are preliminary results and estimates based on current
expectations and are subject to completion of the financial audit.
Actual results may differ materially. Paysign expects to finalize
its financial results and file its Annual Report on Form 10-K no
later than the prescribed due date allowed pursuant to Rule
12b-25.
Separately, in the course of completing its assessment of
internal controls over financial reporting for 2019 and the
company’s initial year of compliance with Sarbanes-Oxley 404b,
management identified material weaknesses related to (i) assessment
of internal controls over financial reporting and (ii) information
technology general controls.
With regard to the COVID-19 coronavirus, Paysign’s commitment to
delivering exceptional, reliable solutions and maintaining
exceptional service levels will not be affected. The safety and
well-being of Paysign’s employees and partners is always Paysign’s
top priority. Paysign has designed its processes, practices and
infrastructure in place to provide uninterrupted business and
support operations. While Paysign does not anticipate disruption to
daily work practices, Paysign has and continues to implement
practices necessary to provide the same level of quality and
service expected from Paysign, while also ensuring the safety of
its employees and partners.
About Paysign, Inc.
Paysign, Inc (NASDAQ: PAYS) is an experienced and trusted
prepaid debit card payment solutions provider as well as an
integrated payment processor that has managed millions of prepaid
debit cards in its portfolio. Paysign conceptualizes, develops and
manages payment solutions, prepaid card programs, and customized
payment services. Paysign’s corporate incentive prepaid cards are
changing the way corporations reward, motivate, and engage their
current and potential customers, employees, and agents. Paysign’s
customizable solutions offer significant cost savings while
improving brand recognition and customer loyalty. For over 15 years
healthcare companies, major pharmaceutical companies,
multinationals, prestigious universities, and social media
companies have relied on Paysign to provide state of the art
prepaid payment programs tailored to their unique requirements.
Paysign is a registered trademark of Paysign, Inc. in the United
States and other countries. For more information visit us at
paysign.com, or follow us on Facebook, Twitter, and LinkedIn.
Forward-Looking Statements
Certain statements contained in this press release may be deemed
to be forward-looking statements under federal securities laws, and
Paysign intends that such forward-looking statements be subject to
the safe-harbor created thereby. All statements, other than
statements of fact, included in this release, are forward-looking
statements. Such forward-looking statements include, among others,
Paysign’s expected total revenue, net income and Adjusted EBITDA
for fiscal 2019 and Paysign’s belief that it will provide the same
level of quality and service despite the COVID-19 coronavirus. We
caution that these statements are qualified by important risks,
uncertainties, and other factors that could cause actual results to
differ materially from those reflected by such forward-looking
statements. Such factors include, among others, changes in the
laws, regulations, credit card association rules or other industry
standards, failure by us or business partners to comply with
applicable laws and regulations, changes in credit card association
or other network rules or standards set by Visa and MasterCard, or
changes in card association and debit network fees or products or
interchange rate, dependency on the efficient and uninterrupted
operation of computer network systems and data centers, and
difficult conditions in the economy generally may materially
adversely affect our business and results of operations . Except to
the extent required by federal securities laws, Paysign undertakes
no obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events, or
otherwise.
Paysign, Inc. Non-GAAP Measures
To supplement Paysign’s financial results presented on a GAAP
basis, we use non-GAAP measures of net income that excludes the
following cash and non-cash items – interest, taxes, stock-based
compensation, amortization and depreciation. We believe these
non-GAAP measures help investors better evaluate our past financial
performance and potential future results. Non-GAAP measures should
not be considered in isolation or as a substitute for comparable
GAAP accounting and investors should read them in conjunction with
Paysign’s financial statements prepared in accordance with GAAP.
The non-GAAP measures of net income we use may be different from,
and not directly comparable to, similarly titled measures used by
other companies.
“EBITDA” is defined as earnings before interest, taxes,
depreciation and amortization expense. “Adjusted EBITDA” reflects
the adjustment to EBITDA to exclude stock-based compensation
charges.
Adjusted EBITDA is not intended to represent cash flows from
operations, operating income (loss) or net income (loss) as defined
by U.S. GAAP as indicators of operating performances. Management
cautions that amounts presented in accordance with Paysign’s
definition of Adjusted EBITDA may not be comparable to similar
measures disclosed by other companies because not all companies
calculate Adjusted EBITDA in the same manner.
PAYSIGN, INC. RECONCILIATION OF ADJUSTED EBITDA TO NET
INCOME FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018
(Unaudited) For the year ended December 31,
2019
2019
2018
Net income attributable to Paysign, Inc.
$ 7,454,319
$ 2,588,054
Income tax benefit
(909,976)
-
Interest
(441,116)
(139,738)
Depreciation and amortization
1,483,140
1,089,521
EBITDA
7,586,367
3,537,837
Stock-based compensation
2,528,613
1,366,944
Adjusted EBITDA
$ 10,114,980
$ 4,904,781
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version on businesswire.com: https://www.businesswire.com/news/home/20200316005160/en/
Paysign, Inc. Jim McCroy, 702-749-7269 Investor Relations
ir@paysign.com http://www.paysign.com
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