Paysign, Inc. — Call Transcript 2025

Good afternoon. My name is Kevin, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Paysign Q4 and Full Year 2024 Earnings Conference Call. After the speaker's remarks, there'll be a question-and-answer session. If you'd like to be placed into question queue, you may press Star 1 at any time. As a reminder, this conference call is being recorded. The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. Paysign's earnings release was disseminated to the SEC earlier today and can be found on the investor relations section of our website, paysign.com, which includes reconciliations of non-GAAP measures to GAAP-reported amounts. Additionally, as set forth in more detail in our earnings release, I'd like to remind everyone that today's call will include forward-looking statements regarding Paysign's future performance. Actual performance could differ materially from these forward-looking statements. Information about the factors that could affect future performance is summarized at the end of Paysign's earnings release and in our recent SEC filings. Lastly, a replay of this call will be available until June 25th, 2025. Please see Paysign's Q4 and Full Year 2024 Earnings Call announcement for details on how to access the replay. It's now my pleasure to turn the call over to Mr. Mark Newcomer, CEO. Please go ahead. Thank you, Kevin. Good afternoon, everyone, and thank you for joining us on today's earnings call. We are excited to share Paysign's results for the Q4 and Full Year 2024. I'm Mark Newcomer, President and Chief Executive Officer, and joining me today is Jeff Baker, our Chief Financial Officer. Additionally, Matt Turner, our President of Patient Affordability, and Matt Lanford, our Chief Payments Officer, will be available during the Q&A session. Earlier today, we announced our Q4 and full year financial results for 2024, which demonstrated continued strength and exceptional momentum in revenue growth and adjusted EBITDA. For the full year, revenue increased by 23.5% to $58.4 million, and adjusted EBITDA increased 43.3% to $9.6 million. Equally impressive, our adjusted EBITDA margins improved by 230 basis points to 16.5% as we continue to demonstrate operating leverage in our business model. In 2024, our patient affordability business firmly established itself as our primary growth driver, delivering exceptional results across all key performance indicators. Annual revenue in this segment grew 212% year-over-year, reaching $12.7 million compared to $4.1 million in 2023. Claims processed increased by an impressive 272%, and we added 33 net programs, representing a 77% increase over the previous year. These new programs consisted of both new and transition programs across various therapeutic classes, including both retail and specialty drugs, covering pharmacy and medical benefits. Our continued ability to win additional programs from our current customers is a testament to our excellent processes, exceptional service, and the tangible cost savings exceeding $100 million that our proprietary dynamic business rules delivered to our clients in 2024. Our sales cycle remains efficient within the 90-120 day range, and our sales pipeline continues to be robust. We fully expect our patient affordability business to sustain its strong growth trajectory in 2025, projecting to at least double in revenue once again this year. Turning to our plasma donor compensation business, this segment contributed $43.9 million in revenue for the year, representing a 4.6% increase over 2023's $42 million. We exited 2024 with 480 centers, an increase of 16 centers over the previous year, and anticipate adding an additional 10-15 centers in 2025, with 4 centers already added to date. Q4 plasma revenue was down 6.2%, primarily driven by fractionators working through an oversupply of source plasma, a natural outcome following rapid industry expansion of centers from 2020 to 2023. Another contributing factor was increased donation yields resulting from the latest plasmapheresis hardware upgrade cycle, leading to reduced donor compensation payments and fewer overall donations in the Q4. We expect these conditions to persist through at least the remainder of the year. As this is a high-variable cost business, we believe that we can effectively manage through this downturn. Our long-term strategy remains focused on expanding the depth and breadth of our solutions to create new revenue streams, especially in the maturing segments of our business. We envision payments as a component of the overall consumer engagement ecosystem and not just the completion of a monetary transaction. To that end, we announced the acquisition of Gamma Innovations and the appointment of Michael Noh as Paysign's Chief Innovation Officer, as outlined in a press release earlier today. I encourage you to read the announcement if you have not already done so. Michael and his talented team bring considerable expertise and an innovative product portfolio of existing applications that target both the plasma collection and pharmaceutical industries. This strategic acquisition significantly enhances our capability to offer integrated solutions for plasma donor and pharmaceutical patient engagement, adherence, resource management, and market intelligence. This marks our entry into the high-margin software-as-a-service market and meaningfully expands our total addressable market. This is certainly an exciting time at Paysign, and we look forward to capitalizing on these opportunities as we enter 2025 and beyond. With that, I'll turn the call over to Jeff for additional details on our quarterly and full-year financial results. Thank you, Mark. Good afternoon, everyone. As Mark said, we closed 2024 with a solid Q4 driven by momentum we're experiencing with our patient affordability business. Our results for the quarter and year were in line with our expectations despite some weakening in our plasma business due to excess inventory supplies that we started to see in the Q3 and expect to last through year-end 2025. Last week, we closed on a very exciting acquisition that should help expand our presence in the plasma and pharmaceutical industries as well as bring cost savings to our own organization. I will talk more about that later. Our plasma business grew 4.6% in 2024 to $43.9 million as we added 16 net plasma centers and maintained our market share of just under 40%. We exited the year with 480 plasma centers, and thus far in 2025, we have already added an additional four net programs. For the Q4, revenues declined 6.2% to $10.8 million with two net centers added. Gross dollars loaded to cards decreased 6.4%, total number of loads decreased 7.8%, gross spend volume decreased 7.8%, and the average revenue per plasma center decreased 9.5% to $7,510. The guidance for 2025 that I will provide in just a moment reflects the slowdown we expect to continue for the remainder of the year. Moving to our pharma patient affordability business, you heard Mark talk about the traction we experienced in 2024, which has continued into 2025. Q4 pharma revenues of $12.7 million were 21.7% of total revenue versus 8.6% during the same period last year. We added 10 net programs in the Q4 exiting the year with 76 pharma patient affordability programs and an increase of 33 net programs over 2023. Thus far in 2025, we have already added an additional 14 net programs in the Q1 of 2025. With the hypergrowth we have experienced in our pharma patient affordability business, we expect that we'll continue to make up a greater percentage of total revenue in 2025. As in previous calls, with all the details we provided in the press release and that will be available in our 10-K filing tomorrow morning, I will simply hit the financial highlights for the Q4 of 2024 versus the same period last year. Q4 2024 total revenues of $15.6 million increased $1.9 million or 14%. Gross profit margin for the quarter was 58.9% versus 52.2% during the same period last year. SG&A for the quarter, excluding depreciation and amortization and stock-based compensation, increased 36.7% to $6.3 million, with total operating expenses increasing 34.2% to $8.7 million. We have made significant investments in IT and employees over the past year to support the continued growth of our businesses, exiting this year with 171 employees versus 123 employees during the same period last year. For the quarter, we posted a net income of $1.4 million or $0.02 per fully diluted share versus $5.6 million or $0.05 per fully diluted share for the same period last year. 2023's net income included a tax benefit of $4.3 million as we released the valuation allowance on our deferred tax assets related to both federal and state taxes. The Q4 adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA, was $2.9 million or $0.05 per diluted share versus $2.5 million or $0.05 per diluted share for the same period last year. The fully diluted share count for the quarters used in calculating the per-share amounts was 55.5 million and 53.8 million respectively. Regarding the health of our company, we exited the year with $10.8 million in unrestricted cash and zero debt, a $6.3 million decrease over the year 2023. If you recall, we have pass-through receivables and payables related to our pharma patient affordability business that causes large swings in our cash balance. Adjusting for those movements, our cash balance at the end of 2024 was $11.1 million versus $10.3 million the prior year. We repurchased 36,700 shares in the Q4 for approximately $135,000, and for the year, we repurchased 136,700 shares for approximately $495,000. Now turning your attention to our initial guidance for 2025, which incorporates various assumptions related to the acquisition of Gamma. We expect total revenues to be in the range of $68.5 million-$70 million, reflecting year-over-year growth of 17.5%-20%. Plasma is estimated to make up approximately 57.5% of total revenue, while pharma revenue is expected to continue its growth of at least 100% year-over-year as we receive a full-year benefit for all pharma patient affordability programs added in 2024, and we continue to add new pharma patient affordability programs throughout 2025. Given the early trends we are seeing with the year-over-year decline in our plasma business and the seasonality we see with our patient affordability business, we expect revenue to be higher in the first half of the year compared to the second half of the year, with a corresponding impact on operating income. Full-year gross profit margins are expected to be between 62%-64%, reflecting increased revenue contribution from our pharma patient affordability business. Operating expenses are expected to be between $47.5 million-$50 million as we continue to make investments in people and technology. This amount also includes the labor costs, estimated goodwill amortization, and stock expense associated with the acquisition we announced this morning, but it does not include operating synergies we expect to benefit from during the second half of the year. We plan on giving an update to the acquisition-related operating expense assumptions and anticipated synergies on our Q2 2025 earnings call after we have completed our purchase price allocation. Depreciation and amortization expense is expected to be between $10.5 million-$11.5 million, while stock-based compensation is expected to be approximately $6 million. Given our large unrestricted and restricted cash balances and the current interest rate environment, we expect to generate interest income of approximately $2.8 million. Taking all of the factors above into consideration, we expect net income to be approximately break-even for the year and adjusted EBITDA to be in the range of $12.5 million-$13.5 million or $0.22-$0.24 per diluted share. The diluted share count for the year is estimated to be 56.5 million shares. For the Q1 of 2025, we expect total revenue to be in the range of $17.5 million-$18 million, reflecting the seasonally strong period for our patient affordability business offset by the seasonally weak period for our plasma business. We expect patient affordability revenues to be 40%-45% of revenue for the quarter. Gross profit margins are expected to be between 63%-64%, driven largely by increased revenue contribution from our pharma patient affordability business. Operating expenses are expected to be between $10.5 million and $11 million, of which depreciation and amortization will be approximately $1.9 million and stock-based compensation will be approximately $2.1 million. Adjusted EBITDA is expected to be in the range of $4 million and $5 million or 21.7%-27.2% of revenue. For those looking for more information on the structure of the Gamma acquisition, which included a combination of cash and stock and a contingent consideration related to gross revenue performance targets, I would point you to our disclosure in our 8-K and 10-K filings. With that, I would like to turn the call back over to Kevin for question and answers. Thank you. Now begin the question and answer session. If you'd like to be placed in the question queue, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you'd like to remove your question from the queue. One moment, please, while we pull up our questions. Our first question is coming from Jacob Stephan from Lake Street Capital Markets. Your line is now live. Hey, guys. Congrats on the quarter, and I appreciate you taking the questions. Just to start off here, maybe you could kind of help us understand the strength in Q4 and kind of looking at thus far in 2025. Help us understand kind of the strength between existing pharma patient affordability programs and kind of new ones that you launched in Q4. That's a very complex question to answer, Jacob. We've launched a number of new programs already this year, 14, and we added 10 in the Q4. Some of these are fairly large pharmaceutical partners. That's the first thing. The second thing is, in the first half of the year, you'll see typically higher revenue contribution from our patient affordability business, all else being equal if we don't add any new businesses, which I think is highly unlikely given our pipeline. What you will see is that the first half of the year is higher from a revenue contribution because people haven't met their out-of-pocket maximum deductions yet. As they do, and that flows down usually mid-year, sometimes a little earlier depending on what drug they're on. As that flows through, then obviously copay payments aren't being made any longer. We're just basically collecting money from the monthly management fees and some other ancillary fees that we charge, maybe call center or some other things. I don't know if that answers your question, but the revenue visibility we have in patient affordability is good because of the historical programs and what we're already seeing come through in the Q1 of the year. Okay. That's helpful. Maybe just kind of pivoting to Gamma then, kind of explain what the overall kind of margin strategy is here with opening the opportunity to a much larger opportunity and ultimately the SaaS revenue portion. Kind of just explain how that factors into your guidance and what assumptions for revenue that has. Yeah. In regards to the strategy, we look at the acquisition purely to help us with both our plasma and our pharmaceutical business in the way of adding additional engagement tools, additional capabilities really that are going to allow us to really make a difference and differentiate ourselves within the market and our offerings. We're really excited about the talent that these guys bring on and the products that they're going to allow us to roll out to both sides of the market, both in patient affordability and both in the donor space. I think it's going to make a huge impact and really a very positive move on the part of Paysign. As it relates to the guidance, there's nothing in these three applications that we acquired in the guidance. It's all additional gravy upside. What I can tell you is that the gentleman that sold the business or the assets to us is highly incentivized to drive meaningful revenue to the business, to our business, in hopes to get additional compensation in the form of shares in the company. There was a contract that came over with one of our existing customers. It's not huge, but every dollar helps. This is the beginning, hopefully, of some very nice additional business in the two existing channels that we have that we will benefit from longer term. Okay. Just to clarify, so there's no revenue really associated with—sorry, there's minimal revenue associated with Gamma that's factored into Gamma? Yeah. It's just over $1 million a year. It wasn't a lot. Okay. Very helpful. I appreciate all the color. Thank you. Next question is coming from Gary Prestopino from Barrington Research. Your line is now live. Hi. Good afternoon all. Several questions here. First of all, let's talk about the plasma business. Realizing you kind of went into a little bit about what's going on there, but could you maybe give us a deeper dive into some of the issues here that are causing this slowdown? Yeah, sure. I can talk about that. Thanks for the question. I mean, as you may know, the plasma collection industry is comprised of two separate groups. There's fractionators who use their own plasma as raw material to produce their therapies, and then there's independents who collect plasma to sell to these fractionators. The independents are the ones that are most affected by changes to the supply-demand equation, and that's a pretty important difference in the industry. Getting to the oversupply that I mentioned, this happened for two reasons. First, the overproduction that occurred post-COVID, which includes the massive expansions we saw from both fractionators and independents. Shortly thereafter, upgrades to the plasmapheresis process increased plasma yields by approximately 9% per donation, as well as reducing the time necessary to complete a donation. The combination of these events meant there was much less demand for plasma from the independents. As their contracts to supply plasma expired, the fractionators were much more capable of meeting their own requirements, making it harder for the independents to find buyers for their plasma, especially if they're not under contract. For our purposes, this has led to a lower number of donations as well as lower compensation for the donors. That kind of sums up what's going on a little bit. Okay. The question I would have is, you had, I think, 16 centers added this in 2024. You're expecting to add 10-15 centers in 2025, which I assume are all these independents. Are these new centers competitive takeaways? I mean, if we're getting into a situation where there's an oversupply, what incentive is there for an independent to put up a site? I mean, and first of all, they're not all independents. That makeup of centers is across the board. I can't speak to their incentive to throw up new sites, but 10-15, we certainly feel that we will see at least those 10-15 that will be onboarded. There's nothing that, to the point I made earlier, I think I mentioned or Jeff mentioned, that four of those centers have already gone live this year of the 10-15. I don't think we're going to have a problem hitting those numbers. Even if there's an oversupply, they're still wanting to put up—or maybe I'm not misunderstanding. Are these competitive takeaways, Mark? No. They're all from our existing client base. Okay. This is expansion. That is what I'm getting at. I mean, it's a little hard to conceptualize that. All right. They are all from our existing customer base. I mean, look, this is just like anything else with inventory. If you are in retail or whatever, this hopefully is just a temporary phenomenon, and it will work through in the industry, and it will come back the other way. People that are making the investments today are going to benefit from that, and people that are not, then they are not. There are different strategies between our customers where they are opening centers. They may focus on smaller towns, or they may focus on colleges, or they may focus on whatever it is. It is clearly not going to be the 40-plus centers we had coming out of COVID when everybody opened to spigot and interest rates were low and the cost of capital was low. Now the cost of capital has come back up. The industry is rationalizing, and that's kind of what we're getting. The good news, Gary, is that most of our costs—and we've said this before—50% variable costs in this product. When it delevers, we should see the cost drop along with it. On the revenue side, when that delevers, the costs—we're not going to—it shouldn't be hit as bad as if somebody had high fixed cost infrastructure in a business. The costs and the revenues are going to ebb and flow together, I guess, is the best way to say it. Okay. That helps. In terms of switching to the patient affordability, you added 33 programs this year or last year. You did not mention anything about how many you anticipate adding this year. I mean, you mentioned what you were going to add on the plasma side. Can you give us any idea of what you think you are going to add this year? The only thing we can say is that we added 14 already that went live in the Q1. Some of them were teed up at the end of the year, but they went live. I mean. That's pretty much all we're ready to talk about at this point. Yeah, I mean, yeah. Okay. All right. I mean, we'll certainly get more color to that as the year goes on. At this point, I think representing a 77% increase last year over the prior year, we're trying to target at least double numbers again. We'll be going at the same thing, same pace, I expect. Okay. If you added 33 and you're going to add 14 in the Q1, 47 over the last 15 months or so, are the majority of those programs with existing pharmaceutical customers, or are you getting a healthy blend of new pharmaceutical customers coming on board? Yeah. Hi, Gary. This is Matt Turner. I think we're getting a healthy blend. We obviously focus heavily on the farming aspect of what we do. Once we're in with a client and we know they have other business there, if they're a portfolio-sized pharmaceutical manufacturer, we focus heavily on farming there. If you were to look across last year, we took somewhere around 20% of all new drug launches. We won those programs. This year, so far, I think we're trending higher than that as far as new drug launches. Some of those are from brand new pharma companies that this is their first commercial product, and some of them are from the top 20 Goliaths. I think it's certainly a mix across the board, and we don't have a sole focus on just trying to grow existing business lines. We are heavily invested in continuing to bring on new clients as well as new programs. Okay. Thank you. I'll let somebody else go. Thank you. Next question is coming from Peter Heckmann from D.A. Davidson. Your line is now live. Hey, good afternoon. Thanks for taking the question. I haven't seen the 10-K yet. Can you quantify the cash portion of the purchase price related to Gamma? Pete, we did not disclose that. What we did disclose is that it is paid out over five years. Obviously, we do not have a huge amount of unrestricted cash on our balance sheet. I think adjusted cash, we had about $11.1 million at the end of the year. We certainly are very cognizant of our cash position. We still have no debt. I was able to pay the consideration out of current cash flow, out of our current cash balance, and plan on doing that for the next four years. Okay. Okay. Both the cash will be paid out over five years. The shares vest over four years, and then there's an earn-out. Depending upon the success of the business, we can make some calculations around that. I guess certainly it's your expectation that the app that they have, the CRM system, some of the other solutions, I guess, where do you see—do you see direct applicability to current customers, or do you feel like it's just a skill set that you can use to then build new solutions for your customers? No. We absolutely see existing paths to both sides of the business utilizing the donor, what we would call the application, the engagement app, the CRM, and the donor management system. Okay. All right. That's very helpful. Just clarifying it, the guidance for the Q1 just suggests that pharma has a very significant Q1 and then falls off significantly. Would you expect it to decline sequentially every quarter in 2025? I wouldn't characterize it like that. I don't look for it to decline significantly. Q1 will be the highest, more than likely, just with what we loaded in. Then it'll decline in the second, third, and Q4. I mean, looking at my crystal ball, which is cloudy- right now as we try to figure out what's going to happen with the plasma business, I think you're kind of looking at three quarters of similar revenue, and then the Q4, maybe seeing the lowest for the year. It's really hard. Patient affordability is so heavily weighted, relatively speaking, in the Q1 versus the Q4. We're just dealing with the plasma trends rolling through the model. Patient affordability should—we've said that it'll at least double, and we feel very good about that number. Okay. Okay. That helps. Anything notable going on with the other programs? I think you've called out the payroll card as a help, but a couple of initiatives in there. Anything that's popping out as maybe having more potential than you thought? Hey, Peter. This is Matt Lanford. I mean, no, not really. I mean, they're fairly steady programs. They're moving along. We continue to look at other areas to utilize our capabilities, and we'll continue to do that going forward to see what else we can bring on. Okay. Great. I appreciate it. Thank you. As a reminder, that is Star 1 to be placed into the question queue. One moment, please, while we poll for further questions. We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further closing comments. Thank you, Kevin. Thank you, everyone, for joining today's call. We believe 2025 will be a watershed year for Paysign, and we're very much looking forward to updating everyone on upcoming calls. Thank you, and have a great day. Thank you. That does conclude today's teleconference. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Speaker 7: Good afternoon. My name is Kevin, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Paysign Q4 and Full Year 2024 Earnings Conference Call. After the speaker's remarks, there'll be a question-and-answer session. If you'd like to be placed into question queue, you may press Star 1 at any time. As a reminder, this conference call is being recorded. Good afternoon. good afternoon My name is Kevin, and I'll be your conference operator today. my name is kevin and i'll be your conference operator today At this time, I'd like to welcome everyone to the Paysign Q4 and Full Year 2024 Earnings Conference Call. at this time i'd like to welcome everyone to the paysign q4 and full year 2024 earnings conference call After the speaker's remarks, there'll be a question-and-answer session. after the speaker's remarks there'll be a question-and-answer session If you'd like to be placed into question queue, you may press Star 1 at any time. if you'd like to be placed into question queue you may press star 1 at any time As a reminder, this conference call is being recorded. as a reminder this conference call is being recorded The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. Paysign's earnings release was disseminated to the SEC earlier today and can be found on the investor relations section of our website, paysign.com, which includes reconciliations of non-GAAP measures to GAAP-reported amounts. Additionally, as set forth in more detail in our earnings release, I'd like to remind everyone that today's call will include forward-looking statements regarding Paysign's future performance. The comments on today's call regarding Paysign's financial results will be on a GAAP basis unless otherwise noted. the comments on today's call regarding paysign's financial results will be on a gaap basis unless otherwise noted Paysign's earnings release was disseminated to the SEC earlier today and can be found on the investor relations section of our website, paysign.com, which includes reconciliations of non-GAAP measures to GAAP-reported amounts. paysign's earnings release was disseminated to the sec earlier today and can be found on the investor relations section of our website paysign.com which includes reconciliations of non-gaap measures to gaap-reported amounts Additionally, as set forth in more detail in our earnings release, I'd like to remind everyone that today's call will include forward-looking statements regarding Paysign's future performance. additionally as set forth in more detail in our earnings release i'd like to remind everyone that today's call will include forward-looking statements regarding paysign's future performance Actual performance could differ materially from these forward-looking statements. Information about the factors that could affect future performance is summarized at the end of Paysign's earnings release and in our recent SEC filings. Lastly, a replay of this call will be available until June 25th, 2025. Please see Paysign's Q4 and Full Year 2024 Earnings Call announcement for details on how to access the replay. It's now my pleasure to turn the call over to Mr. Mark Newcomer, CEO. Please go ahead. Actual performance could differ materially from these forward-looking statements. actual performance could differ materially from these forward-looking statements Information about the factors that could affect future performance is summarized at the end of Paysign's earnings release and in our recent SEC filings. information about the factors that could affect future performance is summarized at the end of paysign's earnings release and in our recent sec filings Lastly, a replay of this call will be available until June 25th, 2025. lastly a replay of this call will be available until june 25th 2025 Please see Paysign's Q4 and Full Year 2024 Earnings Call announcement for details on how to access the replay. please see paysign's q4 and full year 2024 earnings call announcement for details on how to access the replay It's now my pleasure to turn the call over to Mr. Mark Newcomer, CEO. it's now my pleasure to turn the call over to mr mark newcomer ceo Please go ahead. please go ahead

Speaker 6: Thank you, Kevin. Good afternoon, everyone, and thank you for joining us on today's earnings call. We are excited to share Paysign's results for the Q4 and Full Year 2024. I'm Mark Newcomer, President and Chief Executive Officer, and joining me today is Jeff Baker, our Chief Financial Officer. Additionally, Matt Turner, our President of Patient Affordability, and Matt Lanford, our Chief Payments Officer, will be available during the Q&A session. Earlier today, we announced our Q4 and full year financial results for 2024, which demonstrated continued strength and exceptional momentum in revenue growth and adjusted EBITDA. Thank you, Kevin. thank you kevin Good afternoon, everyone, and thank you for joining us on today's earnings call. good afternoon everyone and thank you for joining us on today's earnings call We are excited to share Paysign's results for the Q4 and Full Year 2024. we are excited to share paysign's results for the q4 and full year 2024 I'm Mark Newcomer, President and Chief Executive Officer, and joining me today is Jeff Baker, our Chief Financial Officer. i'm mark newcomer president and chief executive officer and joining me today is jeff baker our chief financial officer Additionally, Matt Turner, our President of Patient Affordability, and Matt Lanford, our Chief Payments Officer, will be available during the Q&A session. additionally matt turner our president of patient affordability and matt lanford our chief payments officer will be available during the q&a session Earlier today, we announced our Q4 and full year financial results for 2024, which demonstrated continued strength and exceptional momentum in revenue growth and adjusted EBITDA. earlier today we announced our q4 and full year financial results for 2024 which demonstrated continued strength and exceptional momentum in revenue growth and adjusted ebitda For the full year, revenue increased by 23.5% to $58.4 million, and adjusted EBITDA increased 43.3% to $9.6 million. Equally impressive, our adjusted EBITDA margins improved by 230 basis points to 16.5% as we continue to demonstrate operating leverage in our business model. In 2024, our patient affordability business firmly established itself as our primary growth driver, delivering exceptional results across all key performance indicators. Annual revenue in this segment grew 212% year-over-year, reaching $12.7 million compared to $4.1 million in 2023. Claims processed increased by an impressive 272%, and we added 33 net programs, representing a 77% increase over the previous year. For the full year, revenue increased by 23.5% to $58.4 million, and adjusted EBITDA increased 43.3% to $9.6 million. for the full year revenue increased by 23.5% to $58.4 million and adjusted ebitda increased 43.3% to $9.6 million Equally impressive, our adjusted EBITDA margins improved by 230 basis points to 16.5% as we continue to demonstrate operating leverage in our business model. equally impressive our adjusted ebitda margins improved by 230 basis points to 16.5% as we continue to demonstrate operating leverage in our business model In 2024, our patient affordability business firmly established itself as our primary growth driver, delivering exceptional results across all key performance indicators. in 2024 our patient affordability business firmly established itself as our primary growth driver delivering exceptional results across all key performance indicators Annual revenue in this segment grew 212% year-over-year, reaching $12.7 million compared to $4.1 million in 2023. annual revenue in this segment grew 212% year-over-year reaching $12.7 million compared to $4.1 million in 2023 Claims processed increased by an impressive 272%, and we added 33 net programs, representing a 77% increase over the previous year. claims processed increased by an impressive 272% and we added 33 net programs representing a 77% increase over the previous year These new programs consisted of both new and transition programs across various therapeutic classes, including both retail and specialty drugs, covering pharmacy and medical benefits. Our continued ability to win additional programs from our current customers is a testament to our excellent processes, exceptional service, and the tangible cost savings exceeding $100 million that our proprietary dynamic business rules delivered to our clients in 2024. Our sales cycle remains efficient within the 90-120 day range, and our sales pipeline continues to be robust. These new programs consisted of both new and transition programs across various therapeutic classes, including both retail and specialty drugs, covering pharmacy and medical benefits. these new programs consisted of both new and transition programs across various therapeutic classes including both retail and specialty drugs covering pharmacy and medical benefits Our continued ability to win additional programs from our current customers is a testament to our excellent processes, exceptional service, and the tangible cost savings exceeding $100 million that our proprietary dynamic business rules delivered to our clients in 2024. our continued ability to win additional programs from our current customers is a testament to our excellent processes exceptional service and the tangible cost savings exceeding $100 million that our proprietary dynamic business rules delivered to our clients in 2024 Our sales cycle remains efficient within the 90-120 day range, and our sales pipeline continues to be robust. our sales cycle remains efficient within the 90-120 day range and our sales pipeline continues to be robust We fully expect our patient affordability business to sustain its strong growth trajectory in 2025, projecting to at least double in revenue once again this year. Turning to our plasma donor compensation business, this segment contributed $43.9 million in revenue for the year, representing a 4.6% increase over 2023's $42 million. We exited 2024 with 480 centers, an increase of 16 centers over the previous year, and anticipate adding an additional 10-15 centers in 2025, with 4 centers already added to date. We fully expect our patient affordability business to sustain its strong growth trajectory in 2025, projecting to at least double in revenue once again this year. we fully expect our patient affordability business to sustain its strong growth trajectory in 2025 projecting to at least double in revenue once again this year Turning to our plasma donor compensation business, this segment contributed $43.9 million in revenue for the year, representing a 4.6% increase over 2023's $42 million. turning to our plasma donor compensation business this segment contributed $43.9 million in revenue for the year representing a 4.6% increase over 2023's $42 million We exited 2024 with 480 centers, an increase of 16 centers over the previous year, and anticipate adding an additional 10-15 centers in 2025, with 4 centers already added to date. we exited 2024 with 480 centers an increase of 16 centers over the previous year and anticipate adding an additional 10-15 centers in 2025 with 4 centers already added to date Q4 plasma revenue was down 6.2%, primarily driven by fractionators working through an oversupply of source plasma, a natural outcome following rapid industry expansion of centers from 2020 to 2023. Another contributing factor was increased donation yields resulting from the latest plasmapheresis hardware upgrade cycle, leading to reduced donor compensation payments and fewer overall donations in the Q4. Q4 plasma revenue was down 6.2%, primarily driven by fractionators working through an oversupply of source plasma, a natural outcome following rapid industry expansion of centers from 2020 to 2023. q4 plasma revenue was down 6.2% primarily driven by fractionators working through an oversupply of source plasma a natural outcome following rapid industry expansion of centers from 2020 to 2023 Another contributing factor was increased donation yields resulting from the latest plasmapheresis hardware upgrade cycle, leading to reduced donor compensation payments and fewer overall donations in the Q4 . another contributing factor was increased donation yields resulting from the latest plasmapheresis hardware upgrade cycle leading to reduced donor compensation payments and fewer overall donations in the q4 We expect these conditions to persist through at least the remainder of the year. As this is a high-variable cost business, we believe that we can effectively manage through this downturn. Our long-term strategy remains focused on expanding the depth and breadth of our solutions to create new revenue streams, especially in the maturing segments of our business. We envision payments as a component of the overall consumer engagement ecosystem and not just the completion of a monetary transaction. We expect these conditions to persist through at least the remainder of the year. we expect these conditions to persist through at least the remainder of the year As this is a high-variable cost business, we believe that we can effectively manage through this downturn. as this is a high-variable cost business we believe that we can effectively manage through this downturn Our long-term strategy remains focused on expanding the depth and breadth of our solutions to create new revenue streams, especially in the maturing segments of our business. our long-term strategy remains focused on expanding the depth and breadth of our solutions to create new revenue streams especially in the maturing segments of our business We envision payments as a component of the overall consumer engagement ecosystem and not just the completion of a monetary transaction. we envision payments as a component of the overall consumer engagement ecosystem and not just the completion of a monetary transaction To that end, we announced the acquisition of Gamma Innovations and the appointment of Michael Noh as Paysign's Chief Innovation Officer, as outlined in a press release earlier today. I encourage you to read the announcement if you have not already done so. Michael and his talented team bring considerable expertise and an innovative product portfolio of existing applications that target both the plasma collection and pharmaceutical industries. To that end, we announced the acquisition of Gamma Innovations and the appointment of Michael Noh as Paysign's Chief Innovation Officer, as outlined in a press release earlier today. to that end we announced the acquisition of gamma innovations and the appointment of michael noh as paysign's chief innovation officer as outlined in a press release earlier today I encourage you to read the announcement if you have not already done so. i encourage you to read the announcement if you have not already done so Michael and his talented team bring considerable expertise and an innovative product portfolio of existing applications that target both the plasma collection and pharmaceutical industries. michael and his talented team bring considerable expertise and an innovative product portfolio of existing applications that target both the plasma collection and pharmaceutical industries This strategic acquisition significantly enhances our capability to offer integrated solutions for plasma donor and pharmaceutical patient engagement, adherence, resource management, and market intelligence. This marks our entry into the high-margin software-as-a-service market and meaningfully expands our total addressable market. This is certainly an exciting time at Paysign, and we look forward to capitalizing on these opportunities as we enter 2025 and beyond. With that, I'll turn the call over to Jeff for additional details on our quarterly and full-year financial results. This strategic acquisition significantly enhances our capability to offer integrated solutions for plasma donor and pharmaceutical patient engagement, adherence, resource management, and market intelligence. this strategic acquisition significantly enhances our capability to offer integrated solutions for plasma donor and pharmaceutical patient engagement adherence resource management and market intelligence This marks our entry into the high-margin software-as-a-service market and meaningfully expands our total addressable market. this marks our entry into the high-margin software-as-a-service market and meaningfully expands our total addressable market This is certainly an exciting time at Paysign, and we look forward to capitalizing on these opportunities as we enter 2025 and beyond. this is certainly an exciting time at paysign and we look forward to capitalizing on these opportunities as we enter 2025 and beyond With that, I'll turn the call over to Jeff for additional details on our quarterly and full-year financial results. with that i'll turn the call over to jeff for additional details on our quarterly and full-year financial results

Speaker 4: Thank you, Mark. Good afternoon, everyone. As Mark said, we closed 2024 with a solid Q4 driven by momentum we're experiencing with our patient affordability business. Our results for the quarter and year were in line with our expectations despite some weakening in our plasma business due to excess inventory supplies that we started to see in the Q3 and expect to last through year-end 2025. Thank you, Mark. thank you mark Good afternoon, everyone. good afternoon everyone As Mark said, we closed 2024 with a solid Q4 driven by momentum we're experiencing with our patient affordability business. as mark said we closed 2024 with a solid q4 driven by momentum we're experiencing with our patient affordability business Our results for the quarter and year were in line with our expectations despite some weakening in our plasma business due to excess inventory supplies that we started to see in the Q3 and expect to last through year-end 2025. our results for the quarter and year were in line with our expectations despite some weakening in our plasma business due to excess inventory supplies that we started to see in the q3 and expect to last through year-end 2025 Last week, we closed on a very exciting acquisition that should help expand our presence in the plasma and pharmaceutical industries as well as bring cost savings to our own organization. I will talk more about that later. Our plasma business grew 4.6% in 2024 to $43.9 million as we added 16 net plasma centers and maintained our market share of just under 40%. We exited the year with 480 plasma centers, and thus far in 2025, we have already added an additional four net programs. For the Q4, revenues declined 6.2% to $10.8 million with two net centers added. Gross dollars loaded to cards decreased 6.4%, total number of loads decreased 7.8%, gross spend volume decreased 7.8%, and the average revenue per plasma center decreased 9.5% to $7,510. Last week, we closed on a very exciting acquisition that should help expand our presence in the plasma and pharmaceutical industries as well as bring cost savings to our own organization. last week we closed on a very exciting acquisition that should help expand our presence in the plasma and pharmaceutical industries as well as bring cost savings to our own organization I will talk more about that later. i will talk more about that later Our plasma business grew 4.6% in 2024 to $43.9 million as we added 16 net plasma centers and maintained our market share of just under 40%. our plasma business grew 4.6% in 2024 to $43.9 million as we added 16 net plasma centers and maintained our market share of just under 40% We exited the year with 480 plasma centers, and thus far in 2025, we have already added an additional four net programs. we exited the year with 480 plasma centers and thus far in 2025 we have already added an additional four net programs For the Q4 , revenues declined 6.2% to $10.8 million with two net centers added. for the q4 revenues declined 6.2% to $10.8 million with two net centers added Gross dollars loaded to cards decreased 6.4%, total number of loads decreased 7.8%, gross spend volume decreased 7.8%, and the average revenue per plasma center decreased 9.5% to $7,510. gross dollars loaded to cards decreased 6.4% total number of loads decreased 7.8% gross spend volume decreased 7.8% and the average revenue per plasma center decreased 9.5% to $7,510 The guidance for 2025 that I will provide in just a moment reflects the slowdown we expect to continue for the remainder of the year. Moving to our pharma patient affordability business, you heard Mark talk about the traction we experienced in 2024, which has continued into 2025. Q4 pharma revenues of $12.7 million were 21.7% of total revenue versus 8.6% during the same period last year. The guidance for 2025 that I will provide in just a moment reflects the slowdown we expect to continue for the remainder of the year. the guidance for 2025 that i will provide in just a moment reflects the slowdown we expect to continue for the remainder of the year Moving to our pharma patient affordability business, you heard Mark talk about the traction we experienced in 2024, which has continued into 2025. moving to our pharma patient affordability business you heard mark talk about the traction we experienced in 2024 which has continued into 2025 Q4 pharma revenues of $12.7 million were 21.7% of total revenue versus 8.6% during the same period last year. q4 pharma revenues of $12.7 million were 21.7% of total revenue versus 8.6% during the same period last year We added 10 net programs in the Q4 exiting the year with 76 pharma patient affordability programs and an increase of 33 net programs over 2023. Thus far in 2025, we have already added an additional 14 net programs in the Q1 of 2025. With the hypergrowth we have experienced in our pharma patient affordability business, we expect that we'll continue to make up a greater percentage of total revenue in 2025. We added 10 net programs in the Q4 exiting the year with 76 pharma patient affordability programs and an increase of 33 net programs over 2023. we added 10 net programs in the q4 exiting the year with 76 pharma patient affordability programs and an increase of 33 net programs over 2023 Thus far in 2025, we have already added an additional 14 net programs in the Q1 of 2025. thus far in 2025 we have already added an additional 14 net programs in the q1 of 2025 With the hypergrowth we have experienced in our pharma patient affordability business, we expect that we'll continue to make up a greater percentage of total revenue in 2025. with the hypergrowth we have experienced in our pharma patient affordability business we expect that we'll continue to make up a greater percentage of total revenue in 2025 As in previous calls, with all the details we provided in the press release and that will be available in our 10-K filing tomorrow morning, I will simply hit the financial highlights for the Q4 of 2024 versus the same period last year. Q4 2024 total revenues of $15.6 million increased $1.9 million or 14%. Gross profit margin for the quarter was 58.9% versus 52.2% during the same period last year. SG&A for the quarter, excluding depreciation and amortization and stock-based compensation, increased 36.7% to $6.3 million, with total operating expenses increasing 34.2% to $8.7 million. We have made significant investments in IT and employees over the past year to support the continued growth of our businesses, exiting this year with 171 employees versus 123 employees during the same period last year. As in previous calls, with all the details we provided in the press release and that will be available in our 10-K filing tomorrow morning, I will simply hit the financial highlights for the Q4 of 2024 versus the same period last year. as in previous calls with all the details we provided in the press release and that will be available in our 10-k filing tomorrow morning i will simply hit the financial highlights for the q4 of 2024 versus the same period last year Q4 2024 total revenues of $15.6 million increased $1.9 million or 14%. q4 2024 total revenues of $15.6 million increased $1.9 million or 14% Gross profit margin for the quarter was 58.9% versus 52.2% during the same period last year. gross profit margin for the quarter was 58.9% versus 52.2% during the same period last year SG&A for the quarter, excluding depreciation and amortization and stock-based compensation, increased 36.7% to $6.3 million, with total operating expenses increasing 34.2% to $8.7 million. sg&a for the quarter excluding depreciation and amortization and stock-based compensation increased 36.7% to $6.3 million with total operating expenses increasing 34.2% to $8.7 million We have made significant investments in IT and employees over the past year to support the continued growth of our businesses, exiting this year with 171 employees versus 123 employees during the same period last year. we have made significant investments in it and employees over the past year to support the continued growth of our businesses exiting this year with 171 employees versus 123 employees during the same period last year For the quarter, we posted a net income of $1.4 million or $0.02 per fully diluted share versus $5.6 million or $0.05 per fully diluted share for the same period last year. 2023's net income included a tax benefit of $4.3 million as we released the valuation allowance on our deferred tax assets related to both federal and state taxes. The Q4 adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA, was $2.9 million or $0.05 per diluted share versus $2.5 million or $0.05 per diluted share for the same period last year. The fully diluted share count for the quarters used in calculating the per-share amounts was 55.5 million and 53.8 million respectively. For the quarter, we posted a net income of $1.4 million or $0.02 per fully diluted share versus $5.6 million or $0.05 per fully diluted share for the same period last year. 2023's net income included a tax benefit of $4.3 million as we released the valuation allowance on our deferred tax assets related to both federal and state taxes. for the quarter we posted a net income of $1.4 million or $0.02 per fully diluted share versus $5.6 million or $0.05 per fully diluted share for the same period last year 2023's net income included a tax benefit of $4.3 million as we released the valuation allowance on our deferred tax assets related to both federal and state taxes The Q4 adjusted EBITDA, which is a non-GAAP measure that adds back stock compensation to EBITDA, was $2.9 million or $0.05 per diluted share versus $2.5 million or $0.05 per diluted share for the same period last year. the q4 adjusted ebitda which is a non-gaap measure that adds back stock compensation to ebitda was $2.9 million or $0.05 per diluted share versus $2.5 million or $0.05 per diluted share for the same period last year The fully diluted share count for the quarters used in calculating the per-share amounts was 55.5 million and 53.8 million respectively. the fully diluted share count for the quarters used in calculating the per-share amounts was 55.5 million and 53.8 million respectively Regarding the health of our company, we exited the year with $10.8 million in unrestricted cash and zero debt, a $6.3 million decrease over the year 2023. If you recall, we have pass-through receivables and payables related to our pharma patient affordability business that causes large swings in our cash balance. Adjusting for those movements, our cash balance at the end of 2024 was $11.1 million versus $10.3 million the prior year. We repurchased 36,700 shares in the Q4 for approximately $135,000, and for the year, we repurchased 136,700 shares for approximately $495,000. Now turning your attention to our initial guidance for 2025, which incorporates various assumptions related to the acquisition of Gamma. We expect total revenues to be in the range of $68.5 million-$70 million, reflecting year-over-year growth of 17.5%-20%. Regarding the health of our company, we exited the year with $10.8 million in unrestricted cash and zero debt, a $6.3 million decrease over the year 2023. regarding the health of our company we exited the year with $10.8 million in unrestricted cash and zero debt a $6.3 million decrease over the year 2023 If you recall, we have pass-through receivables and payables related to our pharma patient affordability business that causes large swings in our cash balance. if you recall we have pass-through receivables and payables related to our pharma patient affordability business that causes large swings in our cash balance Adjusting for those movements, our cash balance at the end of 2024 was $11.1 million versus $10.3 million the prior year. adjusting for those movements our cash balance at the end of 2024 was $11.1 million versus $10.3 million the prior year We repurchased 36,700 shares in the Q4 for approximately $135,000, and for the year, we repurchased 136,700 shares for approximately $495,000. we repurchased 36,700 shares in the q4 for approximately $135,000 and for the year we repurchased 136,700 shares for approximately $495,000 Now turning your attention to our initial guidance for 2025, which incorporates various assumptions related to the acquisition of Gamma. now turning your attention to our initial guidance for 2025 which incorporates various assumptions related to the acquisition of gamma We expect total revenues to be in the range of $68.5 million-$70 million, reflecting year-over-year growth of 17.5%-20%. we expect total revenues to be in the range of $68.5 million-$70 million reflecting year-over-year growth of 17.5%-20% Plasma is estimated to make up approximately 57.5% of total revenue, while pharma revenue is expected to continue its growth of at least 100% year-over-year as we receive a full-year benefit for all pharma patient affordability programs added in 2024, and we continue to add new pharma patient affordability programs throughout 2025. Given the early trends we are seeing with the year-over-year decline in our plasma business and the seasonality we see with our patient affordability business, we expect revenue to be higher in the first half of the year compared to the second half of the year, with a corresponding impact on operating income. Plasma is estimated to make up approximately 57.5% of total revenue, while pharma revenue is expected to continue its growth of at least 100% year-over-year as we receive a full-year benefit for all pharma patient affordability programs added in 2024, and we continue to add new pharma patient affordability programs throughout 2025. plasma is estimated to make up approximately 57.5% of total revenue while pharma revenue is expected to continue its growth of at least 100% year-over-year as we receive a full-year benefit for all pharma patient affordability programs added in 2024 and we continue to add new pharma patient affordability programs throughout 2025 Given the early trends we are seeing with the year-over-year decline in our plasma business and the seasonality we see with our patient affordability business, we expect revenue to be higher in the first half of the year compared to the second half of the year, with a corresponding impact on operating income. given the early trends we are seeing with the year-over-year decline in our plasma business and the seasonality we see with our patient affordability business we expect revenue to be higher in the first half of the year compared to the second half of the year with a corresponding impact on operating income Full-year gross profit margins are expected to be between 62%-64%, reflecting increased revenue contribution from our pharma patient affordability business. Operating expenses are expected to be between $47.5 million-$50 million as we continue to make investments in people and technology. Full-year gross profit margins are expected to be between 62%-64%, reflecting increased revenue contribution from our pharma patient affordability business. full-year gross profit margins are expected to be between 62%-64% reflecting increased revenue contribution from our pharma patient affordability business Operating expenses are expected to be between $47.5 million-$50 million as we continue to make investments in people and technology. operating expenses are expected to be between $47.5 million-$50 million as we continue to make investments in people and technology This amount also includes the labor costs, estimated goodwill amortization, and stock expense associated with the acquisition we announced this morning, but it does not include operating synergies we expect to benefit from during the second half of the year. We plan on giving an update to the acquisition-related operating expense assumptions and anticipated synergies on our Q2 2025 earnings call after we have completed our purchase price allocation. Depreciation and amortization expense is expected to be between $10.5 million-$11.5 million, while stock-based compensation is expected to be approximately $6 million. Given our large unrestricted and restricted cash balances and the current interest rate environment, we expect to generate interest income of approximately $2.8 million. This amount also includes the labor costs, estimated goodwill amortization, and stock expense associated with the acquisition we announced this morning, but it does not include operating synergies we expect to benefit from during the second half of the year. this amount also includes the labor costs estimated goodwill amortization and stock expense associated with the acquisition we announced this morning but it does not include operating synergies we expect to benefit from during the second half of the year We plan on giving an update to the acquisition-related operating expense assumptions and anticipated synergies on our Q2 2025 earnings call after we have completed our purchase price allocation. we plan on giving an update to the acquisition-related operating expense assumptions and anticipated synergies on our q2 2025 earnings call after we have completed our purchase price allocation Depreciation and amortization expense is expected to be between $10.5 million-$11.5 million, while stock-based compensation is expected to be approximately $6 million. depreciation and amortization expense is expected to be between $10.5 million-$11.5 million while stock-based compensation is expected to be approximately $6 million Given our large unrestricted and restricted cash balances and the current interest rate environment, we expect to generate interest income of approximately $2.8 million. given our large unrestricted and restricted cash balances and the current interest rate environment we expect to generate interest income of approximately $2.8 million Taking all of the factors above into consideration, we expect net income to be approximately break-even for the year and adjusted EBITDA to be in the range of $12.5 million-$13.5 million or $0.22-$0.24 per diluted share. The diluted share count for the year is estimated to be 56.5 million shares. For the Q1 of 2025, we expect total revenue to be in the range of $17.5 million-$18 million, reflecting the seasonally strong period for our patient affordability business offset by the seasonally weak period for our plasma business. We expect patient affordability revenues to be 40%-45% of revenue for the quarter. Gross profit margins are expected to be between 63%-64%, driven largely by increased revenue contribution from our pharma patient affordability business. Taking all of the factors above into consideration, we expect net income to be approximately break-even for the year and adjusted EBITDA to be in the range of $12.5 million-$13.5 million or $0.22-$0.24 per diluted share. taking all of the factors above into consideration we expect net income to be approximately break-even for the year and adjusted ebitda to be in the range of $12.5 million-$13.5 million or $0.22-$0.24 per diluted share The diluted share count for the year is estimated to be 56.5 million shares. the diluted share count for the year is estimated to be 56.5 million shares For the Q1 of 2025, we expect total revenue to be in the range of $17.5 million-$18 million, reflecting the seasonally strong period for our patient affordability business offset by the seasonally weak period for our plasma business. for the q1 of 2025 we expect total revenue to be in the range of $17.5 million-$18 million reflecting the seasonally strong period for our patient affordability business offset by the seasonally weak period for our plasma business We expect patient affordability revenues to be 40%-45% of revenue for the quarter. we expect patient affordability revenues to be 40%-45% of revenue for the quarter Gross profit margins are expected to be between 63%-64%, driven largely by increased revenue contribution from our pharma patient affordability business. gross profit margins are expected to be between 63%-64% driven largely by increased revenue contribution from our pharma patient affordability business Operating expenses are expected to be between $10.5 million and $11 million, of which depreciation and amortization will be approximately $1.9 million and stock-based compensation will be approximately $2.1 million. Adjusted EBITDA is expected to be in the range of $4 million and $5 million or 21.7%-27.2% of revenue. For those looking for more information on the structure of the Gamma acquisition, which included a combination of cash and stock and a contingent consideration related to gross revenue performance targets, I would point you to our disclosure in our 8-K and 10-K filings. With that, I would like to turn the call back over to Kevin for question and answers. Operating expenses are expected to be between $10.5 million and $11 million, of which depreciation and amortization will be approximately $1.9 million and stock-based compensation will be approximately $2.1 million. operating expenses are expected to be between $10.5 million and $11 million of which depreciation and amortization will be approximately $1.9 million and stock-based compensation will be approximately $2.1 million Adjusted EBITDA is expected to be in the range of $4 million and $5 million or 21.7%-27.2% of revenue. adjusted ebitda is expected to be in the range of $4 million and $5 million or 21.7%-27.2% of revenue For those looking for more information on the structure of the Gamma acquisition, which included a combination of cash and stock and a contingent consideration related to gross revenue performance targets, I would point you to our disclosure in our 8-K and 10-K filings. for those looking for more information on the structure of the gamma acquisition which included a combination of cash and stock and a contingent consideration related to gross revenue performance targets i would point you to our disclosure in our 8-k and 10-k filings With that, I would like to turn the call back over to Kevin for question and answers. with that i would like to turn the call back over to kevin for question and answers

Speaker 7: Thank you. Now begin the question and answer session. If you'd like to be placed in the question queue, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you'd like to remove your question from the queue. One moment, please, while we pull up our questions. Our first question is coming from Jacob Stephan from Lake Street Capital Markets. Your line is now live. Thank you. thank you Now begin the question and answer session. now begin the question and answer session If you'd like to be placed in the question queue, please press Star 1 on your telephone keypad. if you'd like to be placed in the question queue please press star 1 on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press Star 2 if you'd like to remove your question from the queue. you may press star 2 if you'd like to remove your question from the queue One moment, please, while we pull up our questions. one moment please while we pull up our questions Our first question is coming from Jacob Stephan from Lake Street Capital Markets. our first question is coming from jacob stephan from lake street capital markets Your line is now live. your line is now live

Speaker 8: Hey, guys. Congrats on the quarter, and I appreciate you taking the questions. Just to start off here, maybe you could kind of help us understand the strength in Q4 and kind of looking at thus far in 2025. Help us understand kind of the strength between existing pharma patient affordability programs and kind of new ones that you launched in Q4. Hey, guys. hey guys Congrats on the quarter, and I appreciate you taking the questions. congrats on the quarter and i appreciate you taking the questions Just to start off here, maybe you could kind of help us understand the strength in Q4 and kind of looking at thus far in 2025. just to start off here maybe you could kind of help us understand the strength in q4 and kind of looking at thus far in 2025 Help us understand kind of the strength between existing pharma patient affordability programs and kind of new ones that you launched in Q4. help us understand kind of the strength between existing pharma patient affordability programs and kind of new ones that you launched in q4

Speaker 4: That's a very complex question to answer, Jacob. We've launched a number of new programs already this year, 14, and we added 10 in the Q4. Some of these are fairly large pharmaceutical partners. That's the first thing. The second thing is, in the first half of the year, you'll see typically higher revenue contribution from our patient affordability business, all else being equal if we don't add any new businesses, which I think is highly unlikely given our pipeline. That's a very complex question to answer, Jacob. that's a very complex question to answer jacob We've launched a number of new programs already this year, 14, and we added 10 in the Q4 . we've launched a number of new programs already this year 14 and we added 10 in the q4 Some of these are fairly large pharmaceutical partners. some of these are fairly large pharmaceutical partners That's the first thing. that's the first thing The second thing is, in the first half of the year, you'll see typically higher revenue contribution from our patient affordability business, all else being equal if we don't add any new businesses, which I think is highly unlikely given our pipeline. the second thing is in the first half of the year you'll see typically higher revenue contribution from our patient affordability business all else being equal if we don't add any new businesses which i think is highly unlikely given our pipeline What you will see is that the first half of the year is higher from a revenue contribution because people haven't met their out-of-pocket maximum deductions yet. As they do, and that flows down usually mid-year, sometimes a little earlier depending on what drug they're on. As that flows through, then obviously copay payments aren't being made any longer. We're just basically collecting money from the monthly management fees and some other ancillary fees that we charge, maybe call center or some other things. I don't know if that answers your question, but the revenue visibility we have in patient affordability is good because of the historical programs and what we're already seeing come through in the Q1 of the year. What you will see is that the first half of the year is higher from a revenue contribution because people haven't met their out-of-pocket maximum deductions yet. what you will see is that the first half of the year is higher from a revenue contribution because people haven't met their out-of-pocket maximum deductions yet As they do, and that flows down usually mid-year, sometimes a little earlier depending on what drug they're on. as they do and that flows down usually mid-year sometimes a little earlier depending on what drug they're on As that flows through, then obviously copay payments aren't being made any longer. as that flows through then obviously copay payments aren't being made any longer We're just basically collecting money from the monthly management fees and some other ancillary fees that we charge, maybe call center or some other things. we're just basically collecting money from the monthly management fees and some other ancillary fees that we charge maybe call center or some other things I don't know if that answers your question, but the revenue visibility we have in patient affordability is good because of the historical programs and what we're already seeing come through in the Q1 of the year. i don't know if that answers your question but the revenue visibility we have in patient affordability is good because of the historical programs and what we're already seeing come through in the q1 of the year

Speaker 8: Okay. That's helpful. Maybe just kind of pivoting to Gamma then, kind of explain what the overall kind of margin strategy is here with opening the opportunity to a much larger opportunity and ultimately the SaaS revenue portion. Kind of just explain how that factors into your guidance and what assumptions for revenue that has. Okay. okay That's helpful. that's helpful Maybe just kind of pivoting to Gamma then, kind of explain what the overall kind of margin strategy is here with opening the opportunity to a much larger opportunity and ultimately the SaaS revenue portion. maybe just kind of pivoting to gamma then kind of explain what the overall kind of margin strategy is here with opening the opportunity to a much larger opportunity and ultimately the saas revenue portion Kind of just explain how that factors into your guidance and what assumptions for revenue that has. kind of just explain how that factors into your guidance and what assumptions for revenue that has

Speaker 6: Yeah. In regards to the strategy, we look at the acquisition purely to help us with both our plasma and our pharmaceutical business in the way of adding additional engagement tools, additional capabilities really that are going to allow us to really make a difference and differentiate ourselves within the market and our offerings. We're really excited about the talent that these guys bring on and the products that they're going to allow us to roll out to both sides of the market, both in patient affordability and both in the donor space. I think it's going to make a huge impact and really a very positive move on the part of Paysign. Yeah. yeah In regards to the strategy, we look at the acquisition purely to help us with both our plasma and our pharmaceutical business in the way of adding additional engagement tools, additional capabilities really that are going to allow us to really make a difference and differentiate ourselves within the market and our offerings. in regards to the strategy we look at the acquisition purely to help us with both our plasma and our pharmaceutical business in the way of adding additional engagement tools additional capabilities really that are going to allow us to really make a difference and differentiate ourselves within the market and our offerings We're really excited about the talent that these guys bring on and the products that they're going to allow us to roll out to both sides of the market, both in patient affordability and both in the donor space. we're really excited about the talent that these guys bring on and the products that they're going to allow us to roll out to both sides of the market both in patient affordability and both in the donor space I think it's going to make a huge impact and really a very positive move on the part of Paysign. i think it's going to make a huge impact and really a very positive move on the part of paysign

Speaker 4: As it relates to the guidance, there's nothing in these three applications that we acquired in the guidance. It's all additional gravy upside. What I can tell you is that the gentleman that sold the business or the assets to us is highly incentivized to drive meaningful revenue to the business, to our business, in hopes to get additional compensation in the form of shares in the company. There was a contract that came over with one of our existing customers. It's not huge, but every dollar helps. This is the beginning, hopefully, of some very nice additional business in the two existing channels that we have that we will benefit from longer term. As it relates to the guidance, there's nothing in these three applications that we acquired in the guidance. as it relates to the guidance there's nothing in these three applications that we acquired in the guidance It's all additional gravy upside. it's all additional gravy upside What I can tell you is that the gentleman that sold the business or the assets to us is highly incentivized to drive meaningful revenue to the business, to our business, in hopes to get additional compensation in the form of shares in the company. what i can tell you is that the gentleman that sold the business or the assets to us is highly incentivized to drive meaningful revenue to the business to our business in hopes to get additional compensation in the form of shares in the company There was a contract that came over with one of our existing customers. there was a contract that came over with one of our existing customers It's not huge, but every dollar helps. it's not huge but every dollar helps This is the beginning, hopefully, of some very nice additional business in the two existing channels that we have that we will benefit from longer term. this is the beginning hopefully of some very nice additional business in the two existing channels that we have that we will benefit from longer term

Speaker 8: Okay. Just to clarify, so there's no revenue really associated with—sorry, there's minimal revenue associated with Gamma that's factored into Gamma? Okay. okay Just to clarify, so there's no revenue really associated with—sorry, there's minimal revenue associated with Gamma that's factored into Gamma? just to clarify so there's no revenue really associated with—sorry there's minimal revenue associated with gamma that's factored into gamma

Speaker 4: Yeah. It's just over $1 million a year. It wasn't a lot. Yeah. yeah It's just over $1 million a year. it's just over $1 million a year It wasn't a lot. it wasn't a lot

Speaker 8: Okay. Very helpful. I appreciate all the color. Okay. okay Very helpful. very helpful I appreciate all the color. i appreciate all the color

Speaker 7: Thank you. Next question is coming from Gary Prestopino from Barrington Research. Your line is now live. Thank you. thank you Next question is coming from Gary Prestopino from Barrington Research. next question is coming from gary prestopino from barrington research your Your line is now live. your line is now live

Speaker 3: Hi. Good afternoon all. Several questions here. First of all, let's talk about the plasma business. Realizing you kind of went into a little bit about what's going on there, but could you maybe give us a deeper dive into some of the issues here that are causing this slowdown? Hi. hi Good afternoon all. good afternoon all Several questions here. several questions here First of all, let's talk about the plasma business. first of all let's talk about the plasma business Realizing you kind of went into a little bit about what's going on there, but could you maybe give us a deeper dive into some of the issues here that are causing this slowdown? realizing you kind of went into a little bit about what's going on there but could you maybe give us a deeper dive into some of the issues here that are causing this slowdown

Speaker 6: Yeah, sure. I can talk about that. Thanks for the question. I mean, as you may know, the plasma collection industry is comprised of two separate groups. There's fractionators who use their own plasma as raw material to produce their therapies, and then there's independents who collect plasma to sell to these fractionators. The independents are the ones that are most affected by changes to the supply-demand equation, and that's a pretty important difference in the industry. Getting to the oversupply that I mentioned, this happened for two reasons. First, the overproduction that occurred post-COVID, which includes the massive expansions we saw from both fractionators and independents. Shortly thereafter, upgrades to the plasmapheresis process increased plasma yields by approximately 9% per donation, as well as reducing the time necessary to complete a donation. Yeah, sure. yeah sure I can talk about that. i can talk about that Thanks for the question. thanks for the question I mean, as you may know, the plasma collection industry is comprised of two separate groups. i mean as you may know the plasma collection industry is comprised of two separate groups There's fractionators who use their own plasma as raw material to produce their therapies, and then there's independents who collect plasma to sell to these fractionators. there's fractionators who use their own plasma as raw material to produce their therapies and then there's independents who collect plasma to sell to these fractionators The independents are the ones that are most affected by changes to the supply-demand equation, and that's a pretty important difference in the industry. the independents are the ones that are most affected by changes to the supply-demand equation and that's a pretty important difference in the industry Getting to the oversupply that I mentioned, this happened for two reasons. getting to the oversupply that i mentioned this happened for two reasons First, the overproduction that occurred post-COVID, which includes the massive expansions we saw from both fractionators and independents. first the overproduction that occurred post-covid which includes the massive expansions we saw from both fractionators and independents Shortly thereafter, upgrades to the plasmapheresis process increased plasma yields by approximately 9% per donation, as well as reducing the time necessary to complete a donation. shortly thereafter upgrades to the plasmapheresis process increased plasma yields by approximately 9% per donation as well as reducing the time necessary to complete a donation The combination of these events meant there was much less demand for plasma from the independents. As their contracts to supply plasma expired, the fractionators were much more capable of meeting their own requirements, making it harder for the independents to find buyers for their plasma, especially if they're not under contract. For our purposes, this has led to a lower number of donations as well as lower compensation for the donors. That kind of sums up what's going on a little bit. The combination of these events meant there was much less demand for plasma from the independents. the combination of these events meant there was much less demand for plasma from the independents As their contracts to supply plasma expired, the fractionators were much more capable of meeting their own requirements, making it harder for the independents to find buyers for their plasma, especially if they're not under contract. as their contracts to supply plasma expired the fractionators were much more capable of meeting their own requirements making it harder for the independents to find buyers for their plasma especially if they're not under contract For our purposes, this has led to a lower number of donations as well as lower compensation for the donors. for our purposes this has led to a lower number of donations as well as lower compensation for the donors That kind of sums up what's going on a little bit. that kind of sums up what's going on a little bit

Speaker 3: Okay. The question I would have is, you had, I think, 16 centers added this in 2024. You're expecting to add 10-15 centers in 2025, which I assume are all these independents. Are these new centers competitive takeaways? I mean, if we're getting into a situation where there's an oversupply, what incentive is there for an independent to put up a site? Okay. okay The question I would have is, you had, I think, 16 centers added this in 2024. the question i would have is you had i think 16 centers added this in 2024 You're expecting to add 10-15 centers in 2025, which I assume are all these independents. you're expecting to add 10-15 centers in 2025 which i assume are all these independents Are these new centers competitive takeaways? are these new centers competitive takeaways I mean, if we're getting into a situation where there's an oversupply, what incentive is there for an independent to put up a site? i mean if we're getting into a situation where there's an oversupply what incentive is there for an independent to put up a site

Speaker 6: I mean, and first of all, they're not all independents. That makeup of centers is across the board. I can't speak to their incentive to throw up new sites, but 10-15, we certainly feel that we will see at least those 10-15 that will be onboarded. There's nothing that, to the point I made earlier, I think I mentioned or Jeff mentioned, that four of those centers have already gone live this year of the 10-15. I don't think we're going to have a problem hitting those numbers. I mean, and first of all, they're not all independents. i mean and first of all they're not all independents That makeup of centers is across the board. that makeup of centers is across the board I can't speak to their incentive to throw up new sites, but 10-15, we certainly feel that we will see at least those 10-15 that will be onboarded. i can't speak to their incentive to throw up new sites but 10-15 we certainly feel that we will see at least those 10-15 that will be onboarded There's nothing that, to the point I made earlier, I think I mentioned or Jeff mentioned, that four of those centers have already gone live this year of the 10-15. there's nothing that to the point i made earlier i think i mentioned or jeff mentioned that four of those centers have already gone live this year of the 10-15 I don't think we're going to have a problem hitting those numbers. i don't think we're going to have a problem hitting those numbers

Speaker 3: Even if there's an oversupply, they're still wanting to put up—or maybe I'm not misunderstanding. Are these competitive takeaways, Mark? Even if there's an oversupply, they're still wanting to put up—or maybe I'm not misunderstanding. even if there's an oversupply they're still wanting to put up—or maybe i'm not misunderstanding Are these competitive takeaways, Mark? are these competitive takeaways mark

Speaker 6: No. They're all from our existing client base. No. no They're all from our existing client base. they're all from our existing client base

Speaker 3: Okay. This is expansion. That is what I'm getting at. I mean, it's a little hard to conceptualize that. All right. Okay. okay This is expansion. this is expansion That is what I'm getting at. that is what i'm getting at I mean, it's a little hard to conceptualize that. i mean it's a little hard to conceptualize that All right. all right

Speaker 4: They are all from our existing customer base. I mean, look, this is just like anything else with inventory. If you are in retail or whatever, this hopefully is just a temporary phenomenon, and it will work through in the industry, and it will come back the other way. People that are making the investments today are going to benefit from that, and people that are not, then they are not. They are all from our existing customer base. they are all from our existing customer base I mean, look, this is just like anything else with inventory. i mean look this is just like anything else with inventory If you are in retail or whatever, this hopefully is just a temporary phenomenon, and it will work through in the industry, and it will come back the other way. if you are in retail or whatever this hopefully is just a temporary phenomenon and it will work through in the industry and it will come back the other way People that are making the investments today are going to benefit from that, and people that are not, then they are not. people that are making the investments today are going to benefit from that and people that are not then they are not There are different strategies between our customers where they are opening centers. They may focus on smaller towns, or they may focus on colleges, or they may focus on whatever it is. It is clearly not going to be the 40-plus centers we had coming out of COVID when everybody opened to spigot and interest rates were low and the cost of capital was low. Now the cost of capital has come back up. There are different strategies between our customers where they are opening centers. there are different strategies between our customers where they are opening centers They may focus on smaller towns, or they may focus on colleges, or they may focus on whatever it is. they may focus on smaller towns or they may focus on colleges or they may focus on whatever it is It is clearly not going to be the 40-plus centers we had coming out of COVID when everybody opened to spigot and interest rates were low and the cost of capital was low. it is clearly not going to be the 40-plus centers we had coming out of covid when everybody opened to spigot and interest rates were low and the cost of capital was low Now the cost of capital has come back up. now the cost of capital has come back up The industry is rationalizing, and that's kind of what we're getting. The good news, Gary, is that most of our costs—and we've said this before—50% variable costs in this product. When it delevers, we should see the cost drop along with it. On the revenue side, when that delevers, the costs—we're not going to—it shouldn't be hit as bad as if somebody had high fixed cost infrastructure in a business. The costs and the revenues are going to ebb and flow together, I guess, is the best way to say it. The industry is rationalizing, and that's kind of what we're getting. the industry is rationalizing and that's kind of what we're getting The good news, Gary, is that most of our costs—and we've said this before—50% variable costs in this product. the good news gary is that most of our costs—and we've said this before—50% variable costs in this product When it delevers, we should see the cost drop along with it. when it delevers we should see the cost drop along with it On the revenue side, when that delevers, the costs—we're not going to—it shouldn't be hit as bad as if somebody had high fixed cost infrastructure in a business. on the revenue side when that delevers the costs—we're not going to—it shouldn't be hit as bad as if somebody had high fixed cost infrastructure in a business The costs and the revenues are going to ebb and flow together, I guess, is the best way to say it. the costs and the revenues are going to ebb and flow together i guess is the best way to say it

Speaker 3: Okay. That helps. In terms of switching to the patient affordability, you added 33 programs this year or last year. You did not mention anything about how many you anticipate adding this year. I mean, you mentioned what you were going to add on the plasma side. Can you give us any idea of what you think you are going to add this year? Okay. okay That helps. that helps In terms of switching to the patient affordability, you added 33 programs this year or last year. in terms of switching to the patient affordability you added 33 programs this year or last year You did not mention anything about how many you anticipate adding this year. you did not mention anything about how many you anticipate adding this year I mean, you mentioned what you were going to add on the plasma side. i mean you mentioned what you were going to add on the plasma side Can you give us any idea of what you think you are going to add this year? can you give us any idea of what you think you are going to add this year

Speaker 4: The only thing we can say is that we added 14 already that went live in the Q1. Some of them were teed up at the end of the year, but they went live. I mean. The only thing we can say is that we added 14 already that went live in the Q1 . the only thing we can say is that we added 14 already that went live in the q1 Some of them were teed up at the end of the year, but they went live. some of them were teed up at the end of the year but they went live I mean. i mean

Speaker 6: That's pretty much all we're ready to talk about at this point. That's pretty much all we're ready to talk about at this point. that's pretty much all we're ready to talk about at this point

Speaker 4: Yeah, I mean, yeah. Yeah, I mean, yeah. yeah i mean yeah

Speaker 3: Okay. All right. Okay. okay All right. all right

Speaker 6: I mean, we'll certainly get more color to that as the year goes on. At this point, I think representing a 77% increase last year over the prior year, we're trying to target at least double numbers again. We'll be going at the same thing, same pace, I expect. I mean, we'll certainly get more color to that as the year goes on. i mean we'll certainly get more color to that as the year goes on At this point, I think representing a 77% increase last year over the prior year, we're trying to target at least double numbers again. at this point i think representing a 77% increase last year over the prior year we're trying to target at least double numbers again We'll be going at the same thing, same pace, I expect. we'll be going at the same thing same pace i expect

Speaker 3: Okay. If you added 33 and you're going to add 14 in the Q1, 47 over the last 15 months or so, are the majority of those programs with existing pharmaceutical customers, or are you getting a healthy blend of new pharmaceutical customers coming on board? Okay. okay If you added 33 and you're going to add 14 in the Q1 , 47 over the last 15 months or so, are the majority of those programs with existing pharmaceutical customers, or are you getting a healthy blend of new pharmaceutical customers coming on board? if you added 33 and you're going to add 14 in the q1 47 over the last 15 months or so are the majority of those programs with existing pharmaceutical customers or are you getting a healthy blend of new pharmaceutical customers coming on board

Speaker 5: Yeah. Hi, Gary. This is Matt Turner. I think we're getting a healthy blend. We obviously focus heavily on the farming aspect of what we do. Once we're in with a client and we know they have other business there, if they're a portfolio-sized pharmaceutical manufacturer, we focus heavily on farming there. If you were to look across last year, we took somewhere around 20% of all new drug launches. Yeah. yeah Hi, Gary. hi gary This is Matt Turner. this is matt turner I think we're getting a healthy blend. i think we're getting a healthy blend We obviously focus heavily on the farming aspect of what we do. we obviously focus heavily on the farming aspect of what we do Once we're in with a client and we know they have other business there, if they're a portfolio-sized pharmaceutical manufacturer, we focus heavily on farming there. once we're in with a client and we know they have other business there if they're a portfolio-sized pharmaceutical manufacturer we focus heavily on farming there If you were to look across last year, we took somewhere around 20% of all new drug launches. if you were to look across last year we took somewhere around 20% of all new drug launches We won those programs. This year, so far, I think we're trending higher than that as far as new drug launches. Some of those are from brand new pharma companies that this is their first commercial product, and some of them are from the top 20 Goliaths. I think it's certainly a mix across the board, and we don't have a sole focus on just trying to grow existing business lines. We are heavily invested in continuing to bring on new clients as well as new programs. We won those programs. we won those programs This year, so far, I think we're trending higher than that as far as new drug launches. this year so far i think we're trending higher than that as far as new drug launches Some of those are from brand new pharma companies that this is their first commercial product, and some of them are from the top 20 Goliaths. some of those are from brand new pharma companies that this is their first commercial product and some of them are from the top 20 goliaths I think it's certainly a mix across the board, and we don't have a sole focus on just trying to grow existing business lines. i think it's certainly a mix across the board and we don't have a sole focus on just trying to grow existing business lines We are heavily invested in continuing to bring on new clients as well as new programs. we are heavily invested in continuing to bring on new clients as well as new programs

Speaker 3: Okay. Thank you. I'll let somebody else go. Okay. okay Thank you. thank you I'll let somebody else go. i'll let somebody else go

Speaker 7: Thank you. Next question is coming from Peter Heckmann from D.A. Davidson. Your line is now live. Thank you. thank you Next question is coming from Peter Heckmann from D.A. next question is coming from peter heckmann from d.a Davidson. davidson Your line is now live. your line is now live

Speaker 2: Hey, good afternoon. Thanks for taking the question. I haven't seen the 10-K yet. Can you quantify the cash portion of the purchase price related to Gamma? Hey, good afternoon. hey good afternoon Thanks for taking the question. thanks for taking the question I haven't seen the 10-K yet. i haven't seen the 10-k yet Can you quantify the cash portion of the purchase price related to Gamma? can you quantify the cash portion of the purchase price related to gamma

Speaker 4: Pete, we did not disclose that. What we did disclose is that it is paid out over five years. Obviously, we do not have a huge amount of unrestricted cash on our balance sheet. I think adjusted cash, we had about $11.1 million at the end of the year. We certainly are very cognizant of our cash position. We still have no debt. I was able to pay the consideration out of current cash flow, out of our current cash balance, and plan on doing that for the next four years. Pete, we did not disclose that. pete we did not disclose that What we did disclose is that it is paid out over five years. what we did disclose is that it is paid out over five years Obviously, we do not have a huge amount of unrestricted cash on our balance sheet. obviously we do not have a huge amount of unrestricted cash on our balance sheet I think adjusted cash, we had about $11.1 million at the end of the year. i think adjusted cash we had about $11.1 million at the end of the year We certainly are very cognizant of our cash position. we certainly are very cognizant of our cash position We still have no debt. we still have no debt I was able to pay the consideration out of current cash flow, out of our current cash balance, and plan on doing that for the next four years. i was able to pay the consideration out of current cash flow out of our current cash balance and plan on doing that for the next four years

Speaker 2: Okay. Okay. Both the cash will be paid out over five years. The shares vest over four years, and then there's an earn-out. Depending upon the success of the business, we can make some calculations around that. I guess certainly it's your expectation that the app that they have, the CRM system, some of the other solutions, I guess, where do you see—do you see direct applicability to current customers, or do you feel like it's just a skill set that you can use to then build new solutions for your customers? Okay. okay Okay. okay Both the cash will be paid out over five years. both the cash will be paid out over five years The shares vest over four years, and then there's an earn-out. the shares vest over four years and then there's an earn-out Depending upon the success of the business, we can make some calculations around that. depending upon the success of the business we can make some calculations around that I guess certainly it's your expectation that the app that they have, the CRM system, some of the other solutions, I guess, where do you see—do you see direct applicability to current customers, or do you feel like it's just a skill set that you can use to then build new solutions for your customers? i guess certainly it's your expectation that the app that they have the crm system some of the other solutions i guess where do you see—do you see direct applicability to current customers or do you feel like it's just a skill set that you can use to then build new solutions for your customers

Speaker 6: No. We absolutely see existing paths to both sides of the business utilizing the donor, what we would call the application, the engagement app, the CRM, and the donor management system. No. no We absolutely see existing paths to both sides of the business utilizing the donor, what we would call the application, the engagement app, the CRM, and the donor management system. we absolutely see existing paths to both sides of the business utilizing the donor what we would call the application the engagement app the crm and the donor management system

Speaker 2: Okay. All right. That's very helpful. Just clarifying it, the guidance for the Q1 just suggests that pharma has a very significant Q1 and then falls off significantly. Would you expect it to decline sequentially every quarter in 2025? Okay. okay All right. all right That's very helpful. that's very helpful Just clarifying it, the guidance for the Q1 just suggests that pharma has a very significant Q1 and then falls off significantly. just clarifying it the guidance for the q1 just suggests that pharma has a very significant q1 and then falls off significantly Would you expect it to decline sequentially every quarter in 2025? would you expect it to decline sequentially every quarter in 2025

Speaker 4: I wouldn't characterize it like that. I don't look for it to decline significantly. Q1 will be the highest, more than likely, just with what we loaded in. Then it'll decline in the second, third, and Q4. I mean, looking at my crystal ball, which is cloudy- right now as we try to figure out what's going to happen with the plasma business, I think you're kind of looking at three quarters of similar revenue, and then the Q4, maybe seeing the lowest for the year. It's really hard. Patient affordability is so heavily weighted, relatively speaking, in the Q1 versus the Q4. We're just dealing with the plasma trends rolling through the model. Patient affordability should—we've said that it'll at least double, and we feel very good about that number. I wouldn't characterize it like that. i wouldn't characterize it like that I don't look for it to decline significantly. i don't look for it to decline significantly Q1 will be the highest, more than likely, just with what we loaded in. q1 will be the highest more than likely just with what we loaded in Then it'll decline in the second, third, and Q4 . then it'll decline in the second third and q4 I mean, looking at my crystal ball, which is cloudy- right now as we try to figure out what's going to happen with the plasma business, I think you're kind of looking at three quarters of similar revenue, and then the Q4 , maybe seeing the lowest for the year. i mean looking at my crystal ball which is cloudy- right now as we try to figure out what's going to happen with the plasma business i think you're kind of looking at three quarters of similar revenue and then the q4 maybe seeing the lowest for the year It's really hard. it's really hard Patient affordability is so heavily weighted, relatively speaking, in the Q1 versus the Q4 . patient affordability is so heavily weighted relatively speaking in the q1 versus the q4 We're just dealing with the plasma trends rolling through the model. we're just dealing with the plasma trends rolling through the model Patient affordability should—we've said that it'll at least double, and we feel very good about that number. patient affordability should—we've said that it'll at least double and we feel very good about that number

Speaker 2: Okay. Okay. That helps. Anything notable going on with the other programs? I think you've called out the payroll card as a help, but a couple of initiatives in there. Anything that's popping out as maybe having more potential than you thought? Okay. okay Okay. okay That helps. that helps Anything notable going on with the other programs? anything notable going on with the other programs I think you've called out the payroll card as a help, but a couple of initiatives in there. i think you've called out the payroll card as a help but a couple of initiatives in there Anything that's popping out as maybe having more potential than you thought? anything that's popping out as maybe having more potential than you thought

Speaker 1: Hey, Peter. This is Matt Lanford. I mean, no, not really. I mean, they're fairly steady programs. They're moving along. We continue to look at other areas to utilize our capabilities, and we'll continue to do that going forward to see what else we can bring on. Hey, Peter. hey peter This is Matt Lanford. this is matt lanford I mean, no, not really. i mean no not really I mean, they're fairly steady programs. i mean they're fairly steady programs They're moving along. they're moving along We continue to look at other areas to utilize our capabilities, and we'll continue to do that going forward to see what else we can bring on. we continue to look at other areas to utilize our capabilities and we'll continue to do that going forward to see what else we can bring on

Speaker 2: Okay. Great. I appreciate it. Okay. okay Great. great I appreciate it. i appreciate it

Speaker 7: Thank you. As a reminder, that is Star 1 to be placed into the question queue. One moment, please, while we poll for further questions. We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further closing comments. Thank you. thank you As a reminder, that is Star 1 to be placed into the question queue. as a reminder that is star 1 to be placed into the question queue One moment, please, while we poll for further questions. one moment please while we poll for further questions We've reached the end of our question-and-answer session. we've reached the end of our question-and-answer session I'd like to turn the floor back over for any further closing comments. i'd like to turn the floor back over for any further closing comments

Speaker 6: Thank you, Kevin. Thank you, everyone, for joining today's call. We believe 2025 will be a watershed year for Paysign, and we're very much looking forward to updating everyone on upcoming calls. Thank you, and have a great day. Thank you, Kevin. thank you kevin Thank you, everyone, for joining today's call. thank you everyone for joining today's call We believe 2025 will be a watershed year for Paysign, and we're very much looking forward to updating everyone on upcoming calls. we believe 2025 will be a watershed year for paysign and we're very much looking forward to updating everyone on upcoming calls Thank you, and have a great day. thank you and have a great day

Speaker 7: Thank you. That does conclude today's teleconference. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today. Thank you. thank you That does conclude today's teleconference. that does conclude today's teleconference You may disconnect your line at this time and have a wonderful day. you may disconnect your line at this time and have a wonderful day We thank you for your participation today. we thank you for your participation today