Usio Announces Record Third Quarter 2023 Financial Results

Revenue of $20.5 million, up 25%; 13th Consecutive Quarter of Revenue Growth

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

SAN ANTONIO--()--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 third quarter, which ended September 30, 2023.

Louis Hoch, President and Chief Executive Officer of Usio, said, “Revenues were up for the 13th consecutive quarter, with growth both in the quarter and for the first nine months. Results on the bottom line continue to reflect investments in strengthening our infrastructure and establishing a level of marketing and sales investment that will sustain our growth over the long term. Nearing this important inflection point, we believe we will be able to better leverage the top line into faster bottom line growth over the long term.”

For the quarter, revenue growth was led by a 197% increase in prepaid revenues, where, for the first time ever, we loaded more than $100 million onto prepaid cards in a single quarter. Prepaid revenues remain on track to increase by over 125% in 2023. This success in part reflects expansion into new markets, including the state market, where we recently announced our first prepaid card program with a large state, as well as strong growth at long-term customers in the corporate expense and general disbursements card markets, where usage and penetration continues to increase. Revenues generated by Usio Output Solutions were up 9%. With Output generally running at near 100% of capacity, we have made a significant investment in its infrastructure that is expected to increase capacity 50%, speed production and reduce costs, which we foresee as the key to sustaining its strong growth and improving margins. Credit Card revenues were also up, led by a 27% increase in our flagship PayFac business, where transactions in the quarter were up 21% as compared to the third quarter of 2022. As PayFac increases as a proportion of our total Card volume, we expect this segment’s revenues to grow commensurately. ACH revenues were also up in the quarter primarily on the strength of our Pinless Debit, Account Inquiry and related services. ACH volumes remain below the year ago levels that were bolstered by the now terminated Voyager contract. These volumes are expected to show growth in the fourth quarter.

Gross profits for the quarter ended September 30, 2023, were $4.2 million, and gross margins expanded 1.3% compared to the third quarter of 2022. Margins reflect a favorable sales mix, including higher margin prepaid card residual revenues from breakage and spoilage, primarily attributable to the since completed NYC Incentive Program. Other selling, general and administrative expenses were up in large measure due to non-recurring expenses; they are consequently expected to trend lower in the fourth quarter. The Company reported a net loss of $0.7 million, which represents a $1.0 million improvement from the loss of $1.8 million a year ago. Adjusted EBITDA1 was a loss of $0.1 million, a $0.4 million improvement from the $0.5 million Adjusted EBITDA1 loss a year ago. Over the first nine months of the year, the Company has generated $3.5 million more in Adjusted EBITDA1 than in the comparable year ago period. The Company’s financial position also continued to improve, with $1.7 million in cash added to the balance sheet over the first nine months of the year, as the Company generated $2.4 million in Adjusted Operating Cash Flows1 over the first nine months of this fiscal year.

Quarterly Processing and Transaction Volumes

Total payment transactions processed in the third quarter of 2023 were 9.7 million, a decrease of 6% over the same quarter of last year. Total payment dollars processed through all payment channels in the third quarter of 2023 were $1.4 billion, marginally lower than last year's third quarter $1.4 billion volume.

In our Card segment, dollars processed were up 5% and transactions processed were up 2% from a year ago. Prepaid card load volume was up 239%, transactions processed were up 23% and purchase dollars processed were up 152%, in each case, from the same quarter a year ago. ACH electronic check transaction volume was down 21%, electronic check dollars processed were down 11% and return check transactions processed were down by 31%, all compared to the same quarter a year ago.

Third Quarter 2023 Revenue Detail

Revenues for the quarter ended September 30, 2023 increased 25% compared to the prior year quarter to $20.5 million, and revenues for the nine months ended September 30, 2023 increased 25% compared to the prior year nine-month period to $63.2 million, reflecting growth in the Prepaid, Usio Output Solutions, and Credit Card lines of business.

 

 

Three Months Ended September 30,

 

 

2023

 

2022

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

ACH and complementary service revenue

 

$

3,528,133

 

$

3,242,794

 

$

285,339

 

 

9

%

Credit card revenue

 

 

7,169,066

 

 

6,842,065

 

 

327,001

 

 

5

%

Prepaid card services revenue

 

 

4,685,212

 

 

1,576,871

 

 

3,108,341

 

 

197

%

Output solutions revenue

 

 

5,138,030

 

 

4,734,030

 

 

404,000

 

 

9

%

Total Revenue

 

$

20,520,441

 

$

16,395,760

 

$

4,124,681

 

 

25

%

 

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

ACH and complementary service revenue

 

$

10,948,012

 

$

10,985,722

 

$

(37,710

)

 

 

(0

)%

Credit card revenue

 

 

21,624,848

 

$

20,495,984

 

 

1,128,864

 

 

 

6

%

Prepaid card services revenue

 

 

14,710,084

 

$

5,733,428

 

 

8,976,656

 

 

 

157

%

Output solutions revenue

 

 

15,945,447

 

 

13,507,655

 

 

2,437,792

 

 

 

18

%

Total Revenue

 

$

63,228,391

 

$

50,722,789

 

$

12,505,602

 

 

 

25

%

Gross profits for the quarter were $4.2 million while gross margins were 20.4%, up 1.3% from the same period a year ago, and gross profits for the nine months ended September 30, 2023 were $14.1, million up 42%, while gross margins of 22.3%, were up 2.8% 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 revenue growth is improving operating leverage.

Other selling, general and administrative expenses were $4.3 million for the quarter ended September 30, 2023, up compared to the prior year period, primarily reflecting increases in professional fees and marketing, including increased sales-related travel. We expect expenses to trend down beginning in the fourth quarter. Similarly, other selling, general, and administrative expenses for the nine months ended September 30, 2023 were $12.0 million compared to $11.3 in the prior year period.

For the quarter, we reported an operating loss of $1.2 million and an Adjusted EBITDA1 loss of $0.1 million, an improvement of $0.4 million compared to the year ago Adjusted EBITDA1 loss of $0.5 million. Net loss for the quarter ended September 30, 2023 was $0.7 million, or ($0.04) per share, compared to a net loss of $1.8 million, or ($0.09) per share, for the same period in the prior year.

For the nine months ended September 30, 2023, operating loss was $1.2 million. Over the first three quarters of the year we reported an Adjusted EBITDA1 of $2.1 million, which was up $3.5 million compared to an Adjusted EBITDA1 loss of $1.4 million for the prior year nine-month period. Net loss in the first nine months of 2023 was $0.5 million, or ($0.02) per share, versus a net loss of $5.3 million, or ($0.26) per share, in the first nine 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 $2.4 million for the nine months ended September 30, 2023. Cash flows provided by operating activities was $41.5 million for the nine months ended September 30, 2023, compared to cash flows used by operating activities of $22.8 million in the same period a year ago.

We continue to be in solid financial condition with $7.4 million in cash and cash equivalents as of September 30, 2023, reflecting another quarter of sequential improvement in our cash balances, aggregating to a $1.7 million improvement in cash balances over the first three quarters of the year. It should be noted that the company generated over $0.5 million in interest income in the fiscal 2023 third quarter.

1 Please see reconciliation of GAAP to Non-GAAP Financial Measures

Conference Call and Webcast

Usio, Inc.'s management will host a conference call on Wednesday, November 8, 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 November 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 2888409.

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.

USIO, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

September 30, 2023

 

December 31, 2022

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,396,285

 

 

$

5,709,117

 

Accounts receivable, net

 

 

5,203,618

 

 

 

4,371,640

 

Settlement processing assets

 

 

41,765,059

 

 

 

49,737,068

 

Prepaid card load assets

 

 

58,839,602

 

 

 

20,170,761

 

Customer deposits

 

 

1,578,498

 

 

 

1,554,122

 

Inventory

 

 

400,839

 

 

 

507,355

 

Prepaid expenses and other

 

 

740,208

 

 

 

450,389

 

Current assets before merchant reserves

 

 

115,924,109

 

 

 

82,500,452

 

Merchant reserves

 

 

5,336,545

 

 

 

4,909,501

 

Total current assets

 

 

121,260,654

 

 

 

87,409,953

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

2,904,564

 

 

 

3,222,816

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

Intangibles, net

 

 

1,971,460

 

 

 

2,625,360

 

Deferred tax asset, net

 

 

1,504,000

 

 

 

1,504,000

 

Operating lease right-of-use assets

 

 

2,551,443

 

 

 

2,795,483

 

Other assets

 

 

355,357

 

 

 

355,357

 

Total other assets

 

 

6,382,260

 

 

 

7,280,200

 

 

 

 

 

 

 

 

Total Assets

 

$

130,547,478

 

 

$

97,912,969

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,274,681

 

 

$

858,622

 

Accrued expenses

 

 

4,150,298

 

 

 

3,721,108

 

Operating lease liabilities, current portion

 

 

795,928

 

 

 

617,319

 

Equipment loan, current portion

 

 

28,896

 

 

 

56,429

 

Settlement processing obligations

 

 

41,765,059

 

 

 

49,737,068

 

Prepaid card load obligations

 

 

58,839,602

 

 

 

20,170,761

 

Customer deposits

 

 

1,578,498

 

 

 

1,554,122

 

Current liabilities before merchant reserve obligations

 

 

108,432,962

 

 

 

76,715,429

 

Merchant reserve obligations

 

 

5,336,545

 

 

 

4,909,501

 

Total current liabilities

 

 

113,769,507

 

 

 

81,624,930

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

Equipment loan, non-current portion

 

 

-

 

 

 

14,994

 

Operating lease liabilities, non-current portion

 

 

1,892,785

 

 

 

2,338,947

 

Total liabilities

 

 

115,662,292

 

 

 

83,978,871

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

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

 

 

 

 

 

 

Common stock, $0.001 par value, 200,000,000 shares authorized; 28,506,406 and 27,044,900 issued, and 26,377,589 and 25,097,963 outstanding at September 30, 2023 (unaudited) and December 31, 2022, respectively

 

 

196,932

 

 

 

195,471

 

Additional paid-in capital

 

 

97,105,455

 

 

 

94,048,603

 

Treasury stock, at cost; 2,128,537 and 1,946,937 shares at September 30, 2023 (unaudited) and December 31, 2022, respectively

 

 

(3,974,156

)

 

 

(3,749,027

)

Deferred compensation

 

 

(7,078,957

)

 

 

(5,697,900

)

Accumulated deficit

 

 

(71,364,088

)

 

 

(70,863,049

)

Total stockholders' equity

 

 

14,885,186

 

 

 

13,934,098

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

130,547,478

 

 

$

97,912,969

 

USIO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

20,520,441

 

 

$

16,395,760

 

 

$

63,228,391

 

 

$

50,722,789

 

Cost of services

 

 

16,325,793

 

 

 

13,261,240

 

 

 

49,121,210

 

 

 

40,819,236

 

Gross profit

 

 

4,194,648

 

 

 

3,134,520

 

 

 

14,107,181

 

 

 

9,903,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

594,815

 

 

 

515,992

 

 

 

1,677,258

 

 

 

1,540,375

 

Other SG&A expenses

 

 

4,293,869

 

 

 

3,679,484

 

 

 

12,021,110

 

 

 

11,323,326

 

Depreciation and amortization

 

 

518,573

 

 

 

640,599

 

 

 

1,559,601

 

 

 

2,163,468

 

Total selling, general and administrative expenses

 

 

5,407,257

 

 

 

4,836,075

 

 

 

15,257,969

 

 

 

15,027,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss)

 

 

(1,212,609

)

 

 

(1,701,555

)

 

 

(1,150,788

)

 

 

(5,123,616

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

512,089

 

 

 

2,728

 

 

 

823,861

 

 

 

4,475

 

Other income

 

 

50,000

 

 

 

 

 

 

50,000

 

 

 

 

Interest expense

 

 

(393

)

 

 

(943

)

 

 

(1,588

)

 

 

(3,244

)

Other income and (expense), net

 

 

561,696

 

 

 

1,785

 

 

 

872,273

 

 

 

1,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) before income taxes

 

 

(650,913

)

 

 

(1,699,770

)

 

 

(278,515

)

 

 

(5,122,385

)

Income tax expense

 

 

70,000

 

 

 

70,000

 

 

 

222,524

 

 

 

210,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (Loss)

 

$

(720,913

)

 

$

(1,769,770

)

 

$

(501,039

)

 

$

(5,332,385

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Basic (loss) per common share:

 

$

(0.04

)

 

$

(0.09

)

 

$

(0.02

)

 

$

(0.26

)

Diluted (loss) per common share:

 

$

(0.04

)

 

$

(0.09

)

 

$

(0.02

)

 

$

(0.26

)

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

20,098,244

 

 

 

20,371,654

 

 

 

20,101,686

 

 

 

20,322,934

 

Diluted

 

 

20,098,244

 

 

 

20,371,654

 

 

 

20,101,686

 

 

 

20,322,934

 

USIO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine Months Ended September 30,

 

 

2023

 

2022

Operating Activities

 

 

 

 

 

 

Net (loss)

 

$

(501,039

)

 

$

(5,332,385

)

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

 

 

 

 

 

 

Depreciation

 

 

905,701

 

 

 

842,901

 

Amortization

 

 

653,900

 

 

 

1,320,567

 

Employee stock-based compensation

 

 

1,644,658

 

 

 

1,540,375

 

Vendor stock-based compensation

 

 

32,600

 

 

 

 

Amortization of warrant costs

 

 

 

 

 

20,965

 

Non-cash revenue from return of treasury stock

 

 

(156,162

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(831,978

)

 

 

1,410,411

 

Prepaid expenses and other

 

 

(289,819

)

 

 

(118,472

)

Operating lease right-of-use assets

 

 

244,040

 

 

 

(130,699

)

Inventory

 

 

106,516

 

 

 

14,100

 

Accounts payable and accrued expenses

 

 

845,249

 

 

 

(742,398

)

Operating lease liabilities

 

 

(267,553

)

 

 

138,361

 

Prepaid card load obligations

 

 

38,668,841

 

 

 

(21,272,482

)

Merchant reserves

 

 

427,044

 

 

 

(726,424

)

Customer deposits

 

 

24,376

 

 

 

221,393

 

Deferred revenue

 

 

 

 

 

(17,647

)

Net cash provided (used) by operating activities

 

 

41,506,374

 

 

 

(22,831,434

)

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(587,451

)

 

 

(642,764

)

Net cash (used) by investing activities

 

 

(587,451

)

 

 

(642,764

)

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

Payments on equipment loan

 

 

(42,527

)

 

 

(40,872

)

Purchases of treasury stock

 

 

(68,967

)

 

 

(894,641

)

Net cash (used) by financing activities

 

 

(111,494

)

 

 

(935,513

)

 

 

 

 

 

 

 

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

 

 

40,807,429

 

 

 

(24,409,711

)

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

 

$

73,150,930

 

 

$

27,181,849

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Interest

 

$

1,588

 

 

$

3,244

 

Income taxes

 

 

312,158

 

 

 

 

Non-cash financing activity:

 

 

 

 

 

 

Issuance of deferred stock compensation

 

 

2,478,506

 

 

 

166,330

 

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 treasury 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under equity incentive plan

 

 

43,800

 

 

 

44

 

 

 

252,212

 

 

 

 

 

 

 

 

 

 

 

 

252,256

 

Deferred compensation amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

342,559

 

 

 

 

 

 

342,559

 

Purchase of treasury stock costs

 

 

 

 

 

 

 

 

 

 

 

(49,931

)

 

 

 

 

 

 

 

 

(49,931

)

Net (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(720,913

)

 

 

(720,913

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2023

 

 

28,506,406

 

 

$

196,932

 

 

$

97,105,455

 

 

$

(3,974,156

)

 

$

(7,078,957

)

 

$

(71,364,088

)

 

$

14,885,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under equity incentive plan

 

 

163,322

 

 

 

162

 

 

 

406,083

 

 

 

 

 

 

(154,000

)

 

 

 

 

 

252,245

 

Warrant compensation costs

 

 

 

 

 

 

 

 

2,995

 

 

 

 

 

 

 

 

 

 

 

 

2,995

 

Reversal of deferred compensation amortization that did not vest

 

 

(35,000

)

 

 

(35

)

 

 

(66,015

)

 

 

 

 

 

37,837

 

 

 

 

 

 

(28,213

)

Deferred compensation amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

291,963

 

 

 

 

 

 

291,963

 

Purchase of treasury stock costs

 

 

 

 

 

 

 

 

 

 

 

(348,052

)

 

 

 

 

 

 

 

 

(348,052

)

Net (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,769,770

)

 

 

(1,769,770

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2022

 

 

26,966,300

 

 

$

195,391

 

 

$

93,811,189

 

 

$

(3,299,099

)

 

$

(5,992,070

)

 

$

(70,712,190

)

 

$

14,003,221

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

Reconciliation from Operating (Loss) to Adjusted EBITDA:

 

 

 

 

 

 

 

 

Operating (Loss)

 

$

(1,212,609

)

 

$

(1,701,555

)

 

$

(1,150,788

)

 

$

(5,123,616

)

Depreciation and amortization

 

 

518,573

 

 

 

640,599

 

 

 

1,559,601

 

 

 

2,163,468

 

EBITDA

 

 

(694,036

)

 

 

(1,060,956

)

 

 

408,813

 

 

 

(2,960,148

)

Non-cash stock-based compensation expense, net

 

 

594,815

 

 

 

515,992

 

 

 

1,677,258

 

 

 

1,540,375

 

Adjusted EBITDA

 

$

(99,221

)

 

$

(544,964

)

 

$

2,086,071

 

 

$

(1,419,773

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted EBITDA margins:

 

 

 

 

 

 

 

 

Revenues

 

$

20,520,441

 

 

$

16,395,760

 

 

$

63,228,391

 

 

$

50,722,789

 

Adjusted EBITDA

 

 

(99,221

)

 

 

(544,964

)

 

 

2,086,071

 

 

 

(1,419,773

)

Adjusted EBITDA margins

 

 

(0.5

)%

 

 

(3.3

)%

 

 

3.3

%

 

 

(2.8

)%

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

 

 

 

September 30, 2023

 

September 30, 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

 

$

41,506,374

 

 

$

(22,841,434

)

Operating cash flow (used) adjustments:

 

 

 

 

Prepaid card load obligations

 

 

(38,668,841

)

 

 

21,272,482

 

Customer deposits

 

 

(24,376

)

 

 

(221,393

)

Merchant reserves

 

 

(427,044

)

 

 

726,424

 

Operating lease right-of-use assets

 

 

(244,040

)

 

 

130,699

 

Operating lease liabilities

 

 

267,553

 

 

 

(138,361

)

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

 

$

(39,096,748

)

 

$

21,769,851

 

Adjusted operating cash flows provided (used)

 

$

2,409,626

 

 

$

(1,071,583

)

 

Contacts

Paul Manley
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804

Contacts

Paul Manley
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804