Paysign, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Paysign, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Paysign, Inc. (PAYS) filed a Annual Report (10-K) with the SEC on March 27, 2024. Paysign, Inc. filed its 2023 Form 10-K on March 27, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 2615 St. Rose Parkway, Henderson, NV 89052. Paysign, Inc. was formerly known as 3PEA INTERNATIONAL, INC. until July 13, 2010. The SIC code for Paysign, Inc. is 7389 (Services-Business Services, NEC).

Why It Matters

For investors and stakeholders tracking Paysign, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Paysign's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and disclosures within the 10-K allow for a thorough analysis of revenue streams, expenses, assets, liabilities, and cash flows, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — Paysign, Inc. shows moderate risk based on this filing. The company's reliance on a few key customers for a significant portion of its accounts receivable presents a concentration risk, as disclosed in the filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Paysign's revenue generation, cost structure, and potential vulnerabilities.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 10-K)
• 2024-03-27 — Filing Date (Date the 10-K was filed)
• 7389 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Paysign, Inc. (company) — Filer of the 10-K
• 3PEA INTERNATIONAL, INC. (company) — Former name of Paysign, Inc.
• 2615 St. Rose Parkway, Henderson, NV 89052 (location) — Business and mailing address

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: A significant portion of accounts receivable is concentrated with a few customers, particularly within the Pharma Program, posing a risk if these customers reduce their business.

Industry Context

Paysign, Inc. operates in the business services sector, providing payment solutions and related services.

Regulatory Implications

The filing is a standard 10-K annual report required by the Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends, profitability, and cash flow.
2. Review the risk factors section for potential challenges and mitigation strategies.
3. Assess the company's business description and strategy for future growth opportunities.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-27: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 Form 10-K, providing the latest annual financial and operational data for Paysign, Inc.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share PAYS The Nasdaq S
• $2.45 — 78,735,216 based upon a market price of $2.45 per share. Indicate the number of shar
• $836 billion — otal open-loop loads projected to reach $836 billion by 2027. 1 Consumers, both banked an

Filing Documents

• paysign_i10k-123123.htm (10-K) — 851KB
• paysign_ex2301.htm (EX-23.1) — 2KB
• paysign_ex3101.htm (EX-31.1) — 8KB
• paysign_ex3102.htm (EX-31.2) — 8KB
• paysign_ex3201.htm (EX-32.1) — 2KB
• paysign_ex3202.htm (EX-32.2) — 2KB
• 0001683168-24-001729.txt (&nbsp;) — 4721KB
• pays-20231231.xsd (EX-101.SCH) — 34KB
• pays-20231231_cal.xml (EX-101.CAL) — 52KB
• pays-20231231_def.xml (EX-101.DEF) — 127KB
• pays-20231231_lab.xml (EX-101.LAB) — 364KB
• pays-20231231_pre.xml (EX-101.PRE) — 289KB
• paysign_i10k-123123_htm.xml (XML) — 567KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 10 ITEM 1B. UNRESOLVED STAFF COMMENTS 17 ITEM 1C. CYBERSECURITY 17 ITEM 2.

PROPERTIES

PROPERTIES 19 ITEM 3

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 19 ITEM 4. MINE SAFETY DISCLOSURE 20 PART II 21 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 21 ITEM 6. [RESERVED] 21 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 21 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 29 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 29 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 29 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 29 ITEM 9B. OTHER INFORMATION 30 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 30 PART III 31 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 31 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 31 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 31 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 31 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 31 PART IV 32 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 32 ITEM 16 FORM 10-K SUMMARY 33

SIGNATURES

SIGNATURES 34 Cautionary Note Regarding Forward Looking Statements This Annual Report on Form 10-K contains "forward-looking our business and our industry. Words such as "believe," "anticipate," "expect," "intend," "plan," "propose," "may," and other similar expressions identify forward-looking statements. In addition, any statements that refer to expectations, projections, estimates, forecasts, or other characterizations of future events or circumstances are forward-looking materially from those reflected in the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking these forward-looking statements to reflect events or circumstances that arise after the date hereof. You should refer to and carefully review the information in future documents we file with the Securities and Exchange Commission. i PART I

BUSINESS

ITEM 1. BUSINESS. Overview Paysign, Inc. (the "Company," "Paysign," "we" or "our"), headquartered in Nevada, was incorporated on August 24, 1995, and trades under the symbol PAYS on The Nasdaq Stock Market LLC. We are a vertically integrated provider of 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 rates, reduce administration costs and streamline operations. Public sector organizations can utilize our payment solutions to disburse public benefits or for internal payments. We market our prepaid card solutions under our Paysign brand. As we are a payment processor and prepaid card program manager, we derive our revenue from all stages of the prepaid card lifecycle. We operate on a powerful, high-availability payments platform with cutting-edge fintech capabilities that can be seamlessly integrated with our clients' systems. This distinctive positioning allows us to provide end-to-end technologies that securely manage transaction processing, cardholder enrollment, value loading, account management, data and analytics, and customer service. Our architecture is known for its cross-platform compatibility, flexibility, and scalability – allowing our clients and partners to leverage these advantages for cost savings and revenue opportunities. Our suite of product offerings includes solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card. In the future, we expect to further expand our product into other prepaid card offerings such as travel cards and expense reimbursement cards. Our cards are sponsored by our issuing bank partners. Our revenues incl

View Full Filing

View this 10-K filing on SEC EDGAR