SAN ANTONIO, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq: USIO), an integrated electronic payment solutions provider, today announced financial results for the third quarter of 2020, which ended September 30, 2020.
“I am pleased to report all-time record quarterly revenues for the third quarter of 2020,” commented Louis Hoch, President and Chief Executive Officer of Usio. “Our ability to achieve the Company’s highest quarterly revenue in this challenging economic environment is a testament to the strength of our diverse payments channel strategy -- offering ACH, Prepaid and Card Processing services to the growing electronic payments market -- as well as to the steadfast and unwavering commitment we have made through continued investment in our growth initiatives, PayFac and Prepaid, over the past several years. These results put us back on the strong growth trajectory that was temporarily interrupted by COVID-19 in the second quarter.
Card Processing and Prepaid revenues were up 14% and 225%, respectively, compared to the same period of 2019, with growth accelerating sequentially from the second quarter. We continue to penetrate these markets with innovative technology that make payments simple. Our prepaid platform has been widely adopted by municipal, charitable and community organizations to distribute government assistance funds, and this success is creating opportunities in adjacent and new markets. PayFac is gaining traction and the momentum is continuing to build. In September, we set a record for new monthly merchants added on our PayFac platform. Net new merchant additions have been growing week by week. ACH was also up sequentially from the second quarter, although the consumer lending market remains weak. We are continuing to grow our ACH customers, by both adding new accounts and keeping attrition at a minimum, which we believe will be a key to our continued success as our markets recover. Record RCC and PIN Debit volumes in the quarter also continue to contribute and have experienced sequential revenue growth in every quarter of the year. And, by keeping operating expenses relatively flat, our third quarter results reflect positive improvements (reductions) in our Adjusted EBITDA loss and Net Loss from both the prior year quarter as well as the second quarter of this year. During the quarter we also successfully completed two equity offerings, giving us one of the strongest balance sheets and most distinguished group of institutional investors in the company’s history. Our strategy has always encompassed a non-organic growth component, and with this fresh capital we now have the resources to not only support our working capital and general corporate needs, but to invest in our growth businesses and undertake accretive acquisitions.
Despite the many challenges encountered throughout 2020, we are on pace for year-over-year revenue and profitability growth, ending the year with one of our strongest balance sheets ever. We believe this provides a solid foundation for continued growth, both organically as well as through strategic, accretive acquisitions in the future."
Louis Hoch continued, "as always, the health and safety of our employees as well as those around us remains a priority in everything we do.”
Third Quarter 2020 Financial Summary
Revenues for the quarter ended September 30, 2020 increased by 15% to $8.1 million compared to the same period last year, primarily as a result of strong year over year growth in our prepaid and credit card businesses offset by softness in our consumer lending ACH business. Gross profits increased by 11% to $1.7 million versus the same period last year and gross margins declined by 70 basis points to 21.2% for the quarter ended September 30, 2020 versus 21.8% in the prior year period, primarily driven by a shift in product mix.
Other selling, general and administrative expenses were flat at $2.0 million for the quarter ended September 30, 2020 compared to the same period last year. For the third quarter of 2020, the operating loss was $0.9 million versus a loss of $1.2 million in the prior year.
Adjusted EBITDA was a loss of $253,921 compared to a loss of $421,459 in the third quarter of 2019, a 40% improvement.
The company reported a net loss of $0.9 million ($0.06 per share) for the quarter ended September 30, 2020, versus a net loss of $1.2 million ($0.09 per share) for the same period in the prior year.
Nine Months Ended September 30, 2020 Financial Summary
Revenues for the nine months ended September 30, 2020 were $22.9 million, up 10% from $20.8 million from the same period last year. The revenue growth in 2020 is all organic and was derived primarily from our card services business that is anchored by PayFac. Our prepaid division also contributed to the strong increase. Gross profits in the first nine months of the year were $4.9 million up 11% from $4.4 million in the comparable period of 2019. Gross margins for the first nine months of 2020 increased by 20 basis points to 21.6% from 21.4% over the same period in 2019.
Other selling, general and administrative expenses increased by 6% to $6.0 million compared to $5.6 million for the same period last year reflecting our continued investment in our PayFac and Prepaid growth initiatives.
Adjusted EBITDA for year to date period was a loss of $1.0 million compared to a loss of $1.2 million for the same period of 2019, a 12% improvement.
The Company reported a net loss of $3.1 million ($0.22 per share) for the nine months ended September 30, 2020, compared to a net loss of $3.6 million ($0.28 per share) for the same period in the prior year.
Usio continues to be in solid financial condition with $11.4 million in cash and cash equivalents at September 30, 2020.
Conference Call and Webcast
Usio, Inc.'s management will host a conference call with a live webcast on Friday, November 13, 2020 at 11:00 am Eastern time to 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/invest.
A replay of the call will be available approximately one hour after the end of the call through November 27, 2020. 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 10149713.
About Usio, Inc.
Usio, Inc. (USIO), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. 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 offices in Austin, Texas, and Franklin, Tennessee, just outside of Nashville. Websites: www.usio.com, www.singularpayments.com, www.payfacinabox.com, www.akimbocard.com and www.ficentive.com. Find us on Facebook® and Twitter.
About Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, EBITDA and adjusted EBITDA, as defined in Regulation G of the Securities and Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP 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 acquisitions. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA and adjusted EBITDA 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 and adjusted EBITDA 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 and adjusted EBITDA are supplemental non-GAAP measures, which have limitations as an analytical tool. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures do not reflect a comprehensive system of accounting, may differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. For a description of our use of EBITDA and adjusted EBITDA, and a reconciliation of EBITDA and adjusted EBITDA to operating income (loss), see the section of this press release titled "Non-GAAP Reconciliation."
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this 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," "intend," "continue," "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 risks related to the COVID-19 pandemic and its effect on the economy, risks related to the realization of the anticipated opportunities from the Singular acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse 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 tax 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, 2019. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. 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 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:
Joe Hassett, Investor Relations
joeh@gregoryfca.com
610-228-2110
USIO, INC.
CONSOLIDATED BALANCE SHEETS
| September 30, 2020 | December 31, 2019 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 11,405,119 | $ | 2,137,580 | ||||
| Accounts receivable, net | 1,219,370 | 1,274,001 | ||||||
| Settlement processing assets | 24,079,975 | 38,906,780 | ||||||
| Prepaid card load assets | 7,906,580 | 528,434 | ||||||
| Prepaid expenses and other | 185,109 | 183,575 | ||||||
| Current assets before merchant reserves | 44,796,153 | 43,030,370 | ||||||
| Merchant reserves | 8,234,404 | 10,016,904 | ||||||
| Total current assets | 53,030,557 | 53,047,274 | ||||||
| Property and equipment, net | 1,729,614 | 1,557,521 | ||||||
| Other assets: | ||||||||
| Intangibles, net | 1,926,426 | 2,676,427 | ||||||
| Deferred tax asset | 1,394,000 | 1,394,000 | ||||||
| Operating lease right-of-use assets | 2,308,736 | 2,480,902 | ||||||
| Other assets | 422,418 | 404,055 | ||||||
| Total other assets | 6,051,580 | 6,955,384 | ||||||
| Total Assets | $ | 60,811,751 | $ | 61,560,179 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 405,334 | $ | 419,849 | ||||
| Accrued expenses | 1,303,757 | 1,360,551 | ||||||
| Operating lease liabilities, current portion | 236,700 | 356,184 | ||||||
| Settlement processing obligations | 24,079,975 | 38,906,780 | ||||||
| Prepaid card load obligations | 7,906,580 | 528,434 | ||||||
| Deferred revenues | 83,824 | 123,529 | ||||||
| PPP Loan payable, current portion | 342,096 | — | ||||||
| Current liabilities before merchant reserve obligations | 34,358,266 | 41,695,327 | ||||||
| Merchant reserve obligations | 8,234,404 | 10,016,904 | ||||||
| Total current liabilities | 42,592,670 | 51,712,231 | ||||||
| Non-current liabilities: | ||||||||
| PPP Loan payable, non-current portion | 471,404 | — | ||||||
| Operating lease liabilities, current portion | 2,230,639 | 2,279,613 | ||||||
| Total liabilities | 45,294,713 | 53,991,844 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at September 30, 2020 (unaudited) and December 31, 2019, respectively | — | — | ||||||
| Common stock, $0.001 par value, 200,000,000 shares authorized; 25,887,785 and 18,224,577 issued, and 24,665,486 and 17,104,998 outstanding at September 30, 2020 (unaudited) and December 31, 2019, respectively | 194,318 | 186,656 | ||||||
| Additional paid-in capital | 88,392,782 | 77,055,273 | ||||||
| Treasury stock, at cost; 1,222,299 and 1,119,579 shares at September 30, 2020 (unaudited) and December 31, 2019, respectively | (2,065,763 | ) | (1,885,452 | ) | ||||
| Deferred compensation | (5,793,116 | ) | (5,636,154 | ) | ||||
| Accumulated deficit | (65,211,183 | ) | (62,151,988 | ) | ||||
| Total stockholders' equity | 15,517,038 | 7,568,335 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 60,811,751 | $ | 61,560,179 | ||||
USIO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenues | $ | 8,137,077 | $ | 7,087,732 | $ | 22,869,309 | $ | 20,833,143 | ||||||||
| Cost of services | 6,414,807 | 5,539,314 | 17,933,089 | 16,383,149 | ||||||||||||
| Gross profit | 1,722,270 | 1,548,418 | 4,936,220 | 4,449,994 | ||||||||||||
| Selling, general and administrative: | ||||||||||||||||
| Stock-based compensation | 267,223 | 315,259 | 903,326 | 954,770 | ||||||||||||
| Other SG&A expenses | 1,976,191 | 1,969,877 | 5,955,221 | 5,602,171 | ||||||||||||
| Depreciation and amortization | 390,216 | 491,749 | 1,160,255 | 1,475,291 | ||||||||||||
| Total operating expenses | 2,633,630 | 2,776,885 | 8,018,802 | 8,032,232 | ||||||||||||
| Operating (loss) | (911,360 | ) | (1,228,467 | ) | (3,082,582 | ) | (3,582,238 | ) | ||||||||
| Other income and (expense): | ||||||||||||||||
| Interest income | 10,157 | 20,781 | 22,800 | 66,475 | ||||||||||||
| Other income (expense) | 186 | 608 | 912 | 185 | ||||||||||||
| Other income and (expense), net | 10,343 | 21,389 | 23,712 | 66,660 | ||||||||||||
| (Loss) before income taxes | (901,017 | ) | (1,207,078 | ) | (3,058,870 | ) | (3,515,578 | ) | ||||||||
| Income tax expense | 35,000 | 31,956 | 325 | 71,956 | ||||||||||||
| Net (Loss) | $ | (936,017 | ) | $ | (1,239,034 | ) | $ | (3,059,195 | ) | $ | (3,587,534 | ) | ||||
| Earnings (Loss) Per Share | ||||||||||||||||
| Basic earnings (loss) per common share: | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.22 | ) | $ | (0.28 | ) | ||||
| Diluted earnings (loss) per common share: | $ | (0.06 | ) | $ | (0.09 | ) | $ | (0.22 | ) | $ | (0.28 | ) | ||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 15,474,171 | 13,054,962 | 13,924,803 | 12,906,206 | ||||||||||||
| Diluted | 15,474,171 | 13,054,962 | 13,924,803 | 12,906,206 | ||||||||||||
USIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Nine Months Ended | ||||||||
| September 30, 2020 | September 30, 2019 | |||||||
| Operating Activities | ||||||||
| Net (loss) | $ | (3,059,195 | ) | $ | (3,587,534 | ) | ||
| Adjustments to reconcile net (loss) to net cash provided (used) by operating activities: | ||||||||
| Depreciation | 410,254 | 725,291 | ||||||
| Amortization | 750,001 | 750,000 | ||||||
| Non-cash stock-based compensation | 903,326 | 954,770 | ||||||
| Amortization of warrant costs | 26,958 | 26,955 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 54,631 | 55,504 | ||||||
| Prepaid expenses and other | (1,534 | ) | (111,230 | ) | ||||
| Operating lease right-of-use assets | 172,166 | (2,547,803 | ) | |||||
| Other assets | (18,363 | ) | (26,665 | ) | ||||
| Accounts payable and accrued expenses | (71,309 | ) | 294,717 | |||||
| Operating lease liabilities | (168,458 | ) | 2,700,742 | |||||
| Prepaid card load obligations | 7,378,146 | 189,854 | ||||||
| Merchant reserves | (1,782,500 | ) | (2,443,899 | ) | ||||
| Deferred revenue | (39,705 | ) | 116,765 | |||||
| Deferred rent | — | (79,748 | ) | |||||
| Net cash provided (used) by operating activities | 4,554,418 | (2,982,281 | ) | |||||
| Investing Activities | ||||||||
| Purchases of property and equipment | (582,347 | ) | (536,405 | ) | ||||
| Net cash (used) by investing activities | (582,347 | ) | (536,405 | ) | ||||
| Financing Activities | ||||||||
| Proceeds from PPP Loan Program | 813,500 | — | ||||||
| Proceeds from public offering, net of expenses | 7,257,925 | 1,793,905 | ||||||
| Proceeds from private offering | 3,000,000 | — | ||||||
| Purchases of treasury stock | (180,311 | ) | (52,584 | ) | ||||
| Net cash provided by financing activities | 10,891,114 | 1,741,321 | ||||||
| Change in cash, cash equivalents, prepaid card load assets and merchant reserves | 14,863,185 | (1,777,365 | ) | |||||
| Cash, cash equivalents, prepaid card load assets and merchant reserves, beginning of year | 12,682,918 | 15,340,980 | ||||||
| Cash, Cash Equivalents, Prepaid Card Load Assets and Merchant Reserves, End of Period | $ | 27,546,103 | $ | 13,563,615 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | — | $ | — | ||||
| Income taxes | 93,525 | 82,206 | ||||||
| Non-cash transactions: | ||||||||
| Issuance of deferred stock compensation | 1,559,520 | — | ||||||
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, 2019 | 18,224,577 | $ | 186,656 | $ | 77,055,273 | $ | (1,885,452 | ) | $ | (5,636,154 | ) | $ | (62,151,988 | ) | $ | 7,568,335 | ||||||||||||
| Issuance of common stock under equity incentive plan | 51,000 | 51 | 59,440 | — | — | — | 59,491 | |||||||||||||||||||||
| Warrant compensation costs | — | — | 8,985 | — | — | — | 8,985 | |||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 228,219 | — | 228,219 | |||||||||||||||||||||
| Purchase of treasury stock | — | — | — | (26,629 | ) | — | — | (26,629 | ) | |||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (835,009 | ) | (835,009 | ) | |||||||||||||||||||
| Balance at March 31, 2020 | 18,275,577 | $ | 186,707 | $ | 77,123,698 | $ | (1,912,081 | ) | $ | (5,407,935 | ) | $ | (62,986,997 | ) | $ | 7,003,392 | ||||||||||||
| Issuance of common stock under equity incentive plan | 1,500,544 | 1,500 | 1,641,304 | — | (1,559,520 | ) | — | 83,284 | ||||||||||||||||||||
| Warrant compensation costs | — | — | 8,988 | — | — | — | 8,988 | |||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 267,207 | — | 267,207 | |||||||||||||||||||||
| Purchase of treasury stock | — | — | — | (55,819 | ) | — | — | (55,819 | ) | |||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (1,288,169 | ) | (1,288,169 | ) | |||||||||||||||||||
| Balance at June 30, 2020 | 19,776,121 | $ | 188,207 | $ | 78,773,990 | $ | (1,967,900 | ) | $ | (6,700,248 | ) | $ | (64,275,166 | ) | $ | 6,018,883 | ||||||||||||
| Issuance of common stock under equity incentive plan | 32,323 | 32 | 149,961 | — | — | — | 149,993 | |||||||||||||||||||||
| Warrant compensation costs | — | — | 8,985 | — | — | — | 8,985 | |||||||||||||||||||||
| Cashless warrant exercise | 27,051 | 27 | (27 | ) | — | — | — | — | ||||||||||||||||||||
| Reversal of deferred compensation amortization that did not vest | (450,000 | ) | (450 | ) | (791,550 | ) | — | 594,900 | — | (197,100 | ) | |||||||||||||||||
| Issuance of common stock, public offering | 4,705,883 | 4,705 | 7,253,220 | — | — | — | 7,257,925 | |||||||||||||||||||||
| Issuance of common stock, private offering | 1,796,407 | 1,797 | 2,998,203 | — | — | — | 3,000,000 | |||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 312,232 | — | 312,232 | |||||||||||||||||||||
| Purchase of treasury stock | — | — | — | (97,863 | ) | — | — | (97,863 | ) | |||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (936,017 | ) | (936,017 | ) | |||||||||||||||||||
| Balance at September 30, 2020 | 25,887,785 | $ | 194,318 | $ | 88,392,782 | $ | (2,065,763 | ) | $ | (5,793,116 | ) | $ | (65,211,183 | ) | $ | 15,517,038 | ||||||||||||
| Balance at December 31, 2018 | 17,129,680 | $ | 185,561 | $ | 74,568,627 | $ | (1,813,546 | ) | $ | (6,270,675 | ) | $ | (57,036,241 | ) | $ | 9,633,726 | ||||||||||||
| Issuance of common stock, public offering | 769,230 | 769 | 1,793,136 | — | — | — | 1,793,905 | |||||||||||||||||||||
| Issuance of common stock under equity incentive plan | 62,222 | 62 | 58,551 | — | — | — | 58,613 | |||||||||||||||||||||
| Warrant compensation cost | — | — | 8,985 | — | — | — | 8,985 | |||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 224,795 | — | 224,795 | |||||||||||||||||||||
| Purchase of treasury stock | — | — | — | (21,822 | ) | — | — | (21,822 | ) | |||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (1,072,889 | ) | (1,072,889 | ) | |||||||||||||||||||
| Balance at March 31, 2019 | 17,961,132 | $ | 186,392 | $ | 76,429,299 | $ | (1,835,368 | ) | $ | (6,045,880 | ) | $ | (58,109,130 | ) | $ | 10,625,313 | ||||||||||||
| Issuance of common stock under equity incentive plan | 53,445 | 53 | 133,462 | — | — | — | 133,515 | |||||||||||||||||||||
| Warrant compensation cost | — | — | 8,985 | — | — | — | 8,985 | |||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 222,585 | — | 222,585 | |||||||||||||||||||||
| Reversal of deferred stock compensation that did not vest | (6,000 | ) | (6 | ) | (13,254 | ) | — | 13,260 | — | — | ||||||||||||||||||
| Purchase of treasury stock | — | — | — | (28,693 | ) | — | — | (28,693 | ) | |||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (1,275,611 | ) | (1,275,611 | ) | |||||||||||||||||||
| Balance at June 30, 2019 | 18,008,577 | $ | 186,439 | $ | 76,558,492 | $ | (1,864,061 | ) | $ | (5,810,035 | ) | $ | (59,384,741 | ) | $ | 9,686,094 | ||||||||||||
| Issuance of common stock under equity incentive plan | 2,500 | 3 | 92,483 | — | — | — | 92,486 | |||||||||||||||||||||
| Warrant compensation cost | — | — | 8,985 | — | — | — | 8,985 | |||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 224,464 | — | 224,464 | |||||||||||||||||||||
| Reversal of deferred stock compensation that did not vest | — | — | (1,691 | ) | — | — | — | (1,691 | ) | |||||||||||||||||||
| Purchase of treasury stock | — | — | — | (2,069 | ) | — | — | (2,069 | ) | |||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (1,239,034 | ) | (1,239,034 | ) | |||||||||||||||||||
| Balance at September 30, 2019 | 18,011,077 | $ | 186,442 | $ | 76,658,269 | $ | (1,866,130 | ) | $ | (5,585,571 | ) | $ | (60,623,775 | ) | $ | 8,769,235 | ||||||||||||
USIO, INC
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation from Operating (Loss) to Adjusted EBITDA: | ||||||||||||||||
| Operating (Loss) | $ | (911,360 | ) | $ | (1,228,467 | ) | $ | (3,082,582 | ) | $ | (3,582,238 | ) | ||||
| Depreciation and amortization | 390,216 | 491,749 | 1,160,255 | 1,475,291 | ||||||||||||
| EBITDA | (521,144 | ) | (736,718 | ) | (1,922,327 | ) | (2,106,947 | ) | ||||||||
| Non-cash stock-based compensation expense, net | 267,223 | 315,259 | 903,326 | 954,770 | ||||||||||||
| Adjusted EBITDA | $ | (253,921 | ) | $ | (421,459 | ) | $ | (1,019,001 | ) | $ | (1,152,177 | ) | ||||
| Calculation of Adjusted EBITDA margins: | ||||||||||||||||
| Revenues | $ | 8,137,077 | $ | 7,087,732 | $ | 22,869,309 | $ | 20,833,143 | ||||||||
| Adjusted EBITDA | (253,921 | ) | (421,459 | ) | (1,019,001 | ) | (1,152,177 | ) | ||||||||
| Adjusted EBITDA margins | (3.1 | )% | (5.9 | )% | (4.5 | )% | (5.5 | )% | ||||||||