Revenue Growth Remains Strong: up 94% in the Quarter Compared to the Same Period in 2020, Fifth Consecutive Quarter of Sequential Revenue Growth
Fourth Consecutive Quarter of Positive Adjusted EBITDA. Second Consecutive Quarter of Positive Net Income, Positive Adjusted EBITDA and Positive Operating Cash Flow
Raises Guidance: We Expect Fiscal 2021 Revenues to exceed $60 Million, up 88% from Fiscal 2020
SAN ANTONIO, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Usio, Inc: (Nasdaq:USIO), a leading FinTech integrated payment solutions provider, today announced financial results for the third quarter of 2021, which ended September 30, 2021.
Louis Hoch, President and Chief Executive Officer of Usio, said, “I am pleased to report another quarter of record revenue and positive across the board bottom line results. Revenues were up 94% in the quarter as credit card dollars and transactions processed - led by an increase in PayFac volume - and total dollars loaded on prepaid cards both set all-time records. The scaling of the business has improved the operating leverage in our model, leading to a significant increase in profitability. Adjusted EBITDA in the quarter increased $1.4 million from the year ago period to $1.2 million, our fourth consecutive quarter of positive Adjusted EBITDA. We also delivered positive adjusted operating cash flow and $0.01 of earnings per share in the quarter.
Results continue to be driven by our strong relationships and our multi-channel distribution strategy serving diverse end markets. This has enabled us to grow across a broad base of industries from cryptocurrency and FinTech lending to governmental entities and non-profits to healthcare, legal and property management. For the first nine months of the year, total dollars processed were $6.7 billion, already doubling the total dollars processed in 2020 and on pace to process around $9 billion for the year.
As a result, we are again raising our guidance for the year and now expect annual revenues to exceed $60 million which would represent an increase of 88% above fiscal 2020 revenues, while also anticipating positive operating cash flows and Adjusted EBITDA. All of which are conditioned on the continued enthusiasm in the fintech lending and cryptocurrency industries.
Revenues grew in each of our business lines, with prepaid revenues more than doubling from a year ago, driven by 115% increase in transaction volume for the growth in the number of programs served, cards in circulation and volumes managed. In addition, dollars loaded on prepaid cards were a record $57 million the third quarter. ACH revenues were up 81% in the third quarter. ACH remains our most profitable line of business. We also continue to generate steady growth in our card business, led by strong momentum in our PayFac business, where transactions and volumes in the quarter set another record. Revenues in Usio Output Solutions remain on pace to exceed our original expectations as a result of growth in their core markets as well as the incremental opportunities being created by the strong relationships with existing Usio customers.
These are exciting times for Usio. We have achieved both the scale and momentum that is enabling us to leverage our existing infrastructure to generate increasing cash flows to invest in strengthening our franchise. Recently, we have been recognized for our unique capabilities by one of the world's largest card brands, the most prestigious guaranteed income program, and the two largest municipal Covid Incentive Programs. In the future, we intend to introduce more innovative technologies that are responsive to today's evolving payment preferences. Our goal is to continue to build on our established franchise to capitalize on the vast opportunities arising across the electronic payment transaction landscape and to deliver value to our shareholders."
Third Quarter 2021 Financial Summary
Revenues for the quarter ended September 30, 2021 increased 94% to $15.8 million, reflecting growth in each of our ACH, Credit Card and Prepaid lines of business as well as a full quarter of Usio Output Solutions revenues, which was acquired in December 2020. Excluding the results of Usio Output Solutions revenues, organic growth was 51% versus the same period last year. For the nine months ended September 30, 2021, revenues increased 95% with year-over-year growth in all lines of business. Excluding the results of Usio Output Solutions revenues for the nine-month period, organic growth was 47% versus the same period last year.
| Three Months Ended September 30, | ||||||||||||
| 2021 | 2020 | $ Change | % Change | |||||||||
| ACH and complementary service revenue | $ | 3,733,453 | $ | 2,063,458 | $ | 1,669,995 | 81 | % | ||||
| Credit card revenue | 6,509,344 | 5,076,591 | 1,432,753 | 28 | % | |||||||
| Prepaid card services revenue | 2,004,657 | 997,028 | 1,007,629 | 101 | % | |||||||
| Output solutions revenue | 3,573,616 | — | 3,573,616 | 100 | % | |||||||
| Total Revenue | $ | 15,821,070 | $ | 8,137,077 | $ | 7,683,993 | 94 | % | ||||
| Nine Months Ended September 30, | ||||||||||||
| 2021 | 2020 | $ Change | % Change | |||||||||
| ACH and complementary service revenue | $ | 10,813,806 | $ | 6,080,449 | $ | 4,733,357 | 78 | % | ||||
| Credit card revenue | 18,791,129 | 14,647,448 | 4,143,681 | 28 | % | |||||||
| Prepaid card services revenue | 3,968,764 | 2,141,412 | 1,827,352 | 85 | % | |||||||
| Output solutions revenue | 10,942,062 | — | 10,942,062 | 100 | % | |||||||
| Total Revenue | $ | 44,515,761 | $ | 22,869,309 | $ | 21,646,452 | 95 | % | ||||
Gross profits increased 134% to $4.0 million on gross margins of 25.5%, incrementally higher due to product mix and the scaling of the ACH and Prepaid business lines.
Other selling, general and administrative expenses were $2.8 million for the quarter ended September 30, 2021, up 44% compared to $2.0 million in the prior year period. The increase reflects a full quarter of Output Solutions operating costs and continued investments in our ACH, PayFac and Prepaid business lines. For the nine-month period ended September 30, 2021, other selling, general and administrative expenses increased 40% to $8.3 million, again reflecting incremental Output Solutions operating costs plus investments in our ACH, PayFac and Prepaid initiatives.
The Company reported operating income of $0.2 million for the quarter, a $1.1 million improvement from the $0.9 million loss in the prior year period. Operating income improved by $2.9 million for the nine months ended September 30, 2021, from an operating loss of $0.2 million in the current period versus a prior period loss of $3.1 million.
Adjusted EBITDA was a positive $1.2 million in the quarter, an improvement of $1.4 million compared to an Adjusted EBITDA loss of $0.3 million in the same period a year ago. This was the fourth consecutive quarter of positive Adjusted EBITDA. For the nine months ended September 30, 2021, Adjusted EBITDA was $2.7 million versus a loss of $1.0 million in the prior year period, an improvement of $3.7 million. Adjusted Operating Cash Flows (excluding merchant reserve funds, prepaid card load assets, customer deposits and net operating lease assets and obligations) was $2.0 million for the nine-month period ended September 30, 2021.
The Company reported net income of $0.1 million, or $0.01 per share, for the quarter ended September 30, 2021 compared to a net loss of $0.9 million, or ($0.06) per share, for the same period in the prior year. For the nine-month period, the net loss was $0.4 million, or ($0.02) per share, compared to a net loss of $3.1 million, or ($0.22) per share, for the prior year period.
Usio continues to be in solid financial condition with $5.9 million in cash and cash equivalents on September 30, 2021, a $0.9 million improvement from December 31, 2020.
Conference Call and Webcast
Usio, Inc.'s management will host a conference call on Thursday, November 11, 2021 at 11:00 am 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 25, 2021. 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 10161997.
About Usio, Inc.
Usio, Inc. (Nasdaq: USIO), a leading FinTech integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, crypto exchanges 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. With the acquisition of the assets of IMS in December 2020, the Company now offers additional 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 offices in Austin, Texas and Franklin, Tennessee, just outside of Nashville. 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, 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," "look forward," "anticipate," "continue,” 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 as a result of the COVID-19 pandemic, 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 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 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, 2020. 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. 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
484-686-6600
USIO, INC.
CONSOLIDATED BALANCE SHEETS
| September 30, 2021 | December 31, 2020 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 5,939,834 | $ | 5,011,132 | |||
| Accounts receivable, net | 4,187,253 | 2,863,638 | |||||
| Settlement processing assets | 36,492,916 | 43,558,442 | |||||
| Prepaid card load assets | 15,084,868 | 7,610,242 | |||||
| Customer deposits | 1,505,324 | 1,305,296 | |||||
| Inventory | 221,675 | 176,466 | |||||
| Prepaid expenses and other | 247,046 | 301,755 | |||||
| Current assets before merchant reserves | 63,678,916 | 60,826,971 | |||||
| Merchant reserves | 7,261,153 | 8,265,555 | |||||
| Total current assets | 70,940,069 | 69,092,526 | |||||
| Property and equipment, net | 3,625,050 | 3,105,926 | |||||
| Other assets: | |||||||
| Intangibles, net | 4,631,861 | 6,035,761 | |||||
| Deferred tax asset, net | 1,394,000 | 1,394,000 | |||||
| Operating lease right-of-use assets | 2,921,129 | 2,671,266 | |||||
| Other assets | 345,078 | 368,078 | |||||
| Total other assets | 9,292,068 | 10,469,105 | |||||
| Total Assets | $ | 83,857,187 | $ | 82,667,557 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,334,579 | $ | 851,349 | |||
| Accrued expenses | 1,746,226 | 1,463,944 | |||||
| Operating lease liabilities, current portion | 494,983 | 346,913 | |||||
| Equipment loan, current portion | 54,217 | - | |||||
| Settlement processing obligations | 36,492,916 | 43,558,442 | |||||
| Prepaid card load obligations | 15,084,868 | 7,610,242 | |||||
| Customer deposits | 1,505,324 | 1,305,296 | |||||
| Deferred revenues | 30,882 | 66,572 | |||||
| Current liabilities before merchant reserve obligations | 56,743,995 | 55,202,758 | |||||
| Merchant reserve obligations | 7,261,153 | 8,265,555 | |||||
| Total current liabilities | 64,005,148 | 63,468,313 | |||||
| Non-current liabilities: | |||||||
| Equipment loan, non-current portion | 85,333 | — | |||||
| Operating lease liabilities, non-current portion | 2,606,709 | 2,495,883 | |||||
| Total liabilities | 66,697,190 | 65,964,196 | |||||
| Stockholders' equity: | |||||||
| Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at September 30, 2021 (unaudited) and December 31, 2020, respectively | — | — | |||||
| Common stock, $0.001 par value, 200,000,000 shares authorized; 26,289,288 and 26,260,776 issued, and 24,962,750 and 24,974,995 outstanding at September 30, 2021 (unaudited) and December 31, 2020, respectively | 194,746 | 194,692 | |||||
| Additional paid-in capital | 89,702,612 | 89,659,433 | |||||
| Treasury stock, at cost; 1,326,538 and 1,285,781 shares at September 30, 2021 (unaudited) and December 31, 2020, respectively | (2,364,071 | ) | (2,165,721 | ) | |||
| Deferred compensation | (4,954,584 | ) | (5,926,872 | ) | |||
| Accumulated deficit | (65,418,706 | ) | (65,058,171 | ) | |||
| Total stockholders' equity | 17,159,997 | 16,703,361 | |||||
| Total Liabilities and Stockholders' Equity | $ | 83,857,187 | $ | 82,667,557 | |||
USIO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Revenues | $ | 15,821,070 | $ | 8,137,077 | $ | 44,515,761 | $ | 22,869,309 | |||||||
| Cost of services | 11,787,439 | 6,414,807 | 33,447,448 | 17,933,089 | |||||||||||
| Gross profit | 4,033,631 | 1,722,270 | 11,068,313 | 4,936,220 | |||||||||||
| Selling, general and administrative: | |||||||||||||||
| Stock-based compensation | 343,567 | 267,223 | 988,567 | 903,326 | |||||||||||
| Other expenses | 2,844,205 | 1,976,191 | 8,349,452 | 5,955,221 | |||||||||||
| Depreciation and amortization | 634,912 | 390,216 | 1,884,268 | 1,160,255 | |||||||||||
| Total operating expenses | 3,822,684 | 2,633,630 | 11,222,287 | 8,018,802 | |||||||||||
| Operating income (loss) | 210,947 | (911,360 | ) | (153,974 | ) | (3,082,582 | ) | ||||||||
| Other income: | |||||||||||||||
| Interest income | 1,767 | 10,157 | 6,403 | 22,800 | |||||||||||
| Other income (expense) | (1,480 | ) | 186 | (2,964 | ) | 912 | |||||||||
| Other income and (expense), net | 287 | 10,343 | 3,439 | 23,712 | |||||||||||
| Income (loss) before income taxes | 211,234 | (901,017 | ) | (150,535 | ) | (3,058,870 | ) | ||||||||
| Income tax expense | 70,000 | 35,000 | 210,000 | 325 | |||||||||||
| Net Income (Loss) | $ | 141,234 | $ | (936,017 | ) | $ | (360,535 | ) | $ | (3,059,195 | ) | ||||
| Earnings (Loss) Per Share | |||||||||||||||
| Basic earnings (loss) per common share: | $ | 0.01 | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.22 | ) | ||||
| Diluted earnings (loss) per common share: | $ | 0.01 | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.22 | ) | ||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 20,033,515 | 15,474,171 | 19,986,279 | 13,924,803 | |||||||||||
| Diluted | 24,935,517 | 15,474,171 | 19,986,279 | 13,924,803 | |||||||||||
USIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Nine Months Ended | |||||||
| September 30, 2021 | September 30, 2020 | ||||||
| Operating Activities | |||||||
| Net (loss) | $ | (360,535 | ) | $ | (3,059,195 | ) | |
| Adjustments to reconcile net (loss) to net cash provided by operating activities: | |||||||
| Depreciation | 480,368 | 410,254 | |||||
| Amortization | 1,403,900 | 750,001 | |||||
| Bad debt | 87,190 | — | |||||
| Non-cash stock-based compensation | 988,567 | 903,326 | |||||
| Amortization of warrant costs | 26,955 | 26,958 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (1,410,805 | ) | 54,631 | ||||
| Prepaid expenses and other | 54,709 | (1,534 | ) | ||||
| Operating lease right-of-use assets | (249,863 | ) | 172,166 | ||||
| Other assets | (45,209 | ) | — | ||||
| Inventory | 23,000 | (18,363 | ) | ||||
| Accounts payable and accrued expenses | 765,512 | (71,309 | ) | ||||
| Operating lease liabilities | 258,896 | (168,458 | ) | ||||
| Prepaid card load obligations | 7,474,626 | 7,378,146 | |||||
| Merchant reserves | (1,004,402 | ) | (1,782,500 | ) | |||
| Customer deposits | 200,028 | — | |||||
| Deferred revenue | (35,690 | ) | (39,705 | ) | |||
| Net cash provided by operating activities | 8,657,247 | 4,554,418 | |||||
| Investing Activities | |||||||
| Purchases of property and equipment | (999,493 | ) | (582,347 | ) | |||
| Net cash (used) by investing activities | (999,493 | ) | (582,347 | ) | |||
| Financing Activities | |||||||
| Proceeds from PPP Loan Program | — | 813,500 | |||||
| Proceeds from public offering, net of expenses | — | 7,257,925 | |||||
| Proceeds from private offering | — | 3,000,000 | |||||
| Proceeds from equipment loan | 165,996 | — | |||||
| Payments on equipment loan | (26,446 | ) | — | ||||
| Purchases of treasury stock | (198,350 | ) | (180,311 | ) | |||
| Net cash (used) provided by financing activities | (58,800 | ) | 10,891,114 | ||||
| Change in cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves | 7,598,954 | 14,863,185 | |||||
| Cash, cash equivalents, prepaid card loads, customer deposits and merchant reserves, beginning of year | 22,192,225 | 12,682,918 | |||||
| Cash, Cash Equivalents, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period | $ | 29,791,179 | $ | 27,546,103 | |||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid during the period for: | |||||||
| Interest | $ | 2,964 | $ | — | |||
| Income taxes | 92,850 | 93,525 | |||||
| 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, 2020 | 26,260,776 | $ | 194,692 | $ | 89,659,433 | $ | (2,165,721 | ) | $ | (5,926,872 | ) | $ | (65,058,171 | ) | $ | 16,703,361 | |||||||||||
| Issuance of common stock under equity incentive plan | 51,000 | 51 | 120,484 | — | — | — | 120,535 | ||||||||||||||||||||
| Warrant compensation costs | — | — | 8,985 | — | — | — | 8,985 | ||||||||||||||||||||
| Cashless warrant exercise | 19,795 | 19 | (19 | ) | — | — | — | — | |||||||||||||||||||
| Reversal of deferred compensation amortization that did not vest | (17,111 | ) | (17 | ) | (48,599 | ) | — | 5,994 | — | (42,622 | ) | ||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 249,801 | — | 249,801 | ||||||||||||||||||||
| Purchase of treasury stock costs | — | — | — | (49,454 | ) | — | — | (49,454 | ) | ||||||||||||||||||
| Net (loss) for the period | — | — | — | — | — | (720,252 | ) | (720,252 | ) | ||||||||||||||||||
| Balance at March 31, 2021 | 26,314,460 | $ | 194,745 | $ | 89,740,284 | $ | (2,215,175 | ) | $ | (5,671,077 | ) | $ | (65,778,423 | ) | $ | 16,270,354 | |||||||||||
| Issuance of common stock under equity incentive plan | 61,556 | 61 | 150,481 | — | — | — | 150,542 | ||||||||||||||||||||
| Warrant compensation costs | — | — | 8,985 | — | — | — | 8,985 | ||||||||||||||||||||
| Reversal of deferred compensation amortization that did not vest | (115,000 | ) | (115 | ) | (237,085 | ) | — | 158,096 | — | (79,104 | ) | ||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 245,847 | — | 245,847 | ||||||||||||||||||||
| Purchase of treasury stock costs | — | — | — | (29,810 | ) | — | — | (29,810 | ) | ||||||||||||||||||
| Net income for the period | — | — | — | — | — | 218,483 | 218,483 | ||||||||||||||||||||
| Balance at June 30, 2021 | 26,261,016 | $ | 194,691 | $ | 89,662,665 | $ | (2,244,985 | ) | $ | (5,267,134 | ) | $ | (65,559,940 | ) | $ | 16,785,297 | |||||||||||
| Issuance of common stock under equity incentive plan | 49,322 | 76 | 108,146 | — | 20,785 | — | 129,007 | ||||||||||||||||||||
| Warrant compensation costs | — | — | 8,985 | — | — | — | 8,985 | ||||||||||||||||||||
| Cashless warrant exercise | 19,950 | 20 | (20 | ) | — | — | — | — | |||||||||||||||||||
| Reversal of deferred compensation amortization that did not vest | (41,000 | ) | (41 | ) | (77,164 | ) | — | 52,434 | — | (24,771 | ) | ||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 239,331 | — | 239,331 | ||||||||||||||||||||
| Purchase of treasury stock costs | — | — | — | (119,086 | ) | — | — | (119,086 | ) | ||||||||||||||||||
| Net income for the period | — | — | — | — | — | 141,234 | 141,234 | ||||||||||||||||||||
| Balance at September 30, 2021 | 26,289,288 | $ | 194,746 | $ | 89,702,612 | $ | (2,364,071 | ) | $ | (4,954,584 | ) | $ | (65,418,706 | ) | $ | 17,159,997 | |||||||||||
| 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 costs | — | — | — | (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 cost | — | — | 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 cost | — | — | 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 | |||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Reconciliation from Operating Income (Loss) to Adjusted EBITDA: | |||||||||||||||
| Operating Income (Loss) | $ | 210,947 | $ | (911,360 | ) | $ | (153,974 | ) | $ | (3,082,582 | ) | ||||
| Depreciation and amortization | 634,912 | 390,216 | 1,884,268 | 1,160,255 | |||||||||||
| EBITDA | 845,859 | (521,144 | ) | 1,730,294 | (1,922,327 | ) | |||||||||
| Non-cash stock-based compensation expense, net | 343,567 | 267,223 | 988,567 | 903,326 | |||||||||||
| Adjusted EBITDA | $ | 1,189,426 | $ | (253,921 | ) | $ | 2,718,861 | $ | (1,019,001 | ) | |||||
| Calculation of Adjusted EBITDA margins: | |||||||||||||||
| Revenues | $ | 15,821,070 | $ | 8,137,077 | $ | 44,515,761 | $ | 22,869,309 | |||||||
| Adjusted EBITDA | 1,189,426 | (253,921 | ) | 2,718,861 | (1,019,001 | ) | |||||||||
| Adjusted EBITDA margins | 7.5 | % | (3.1 | )% | 6.1 | % | (4.5 | )% | |||||||
