Paysign, Inc. — Call Transcript 2025

Ladies and gentlemen in attendance and to our webinar guests around the world, welcome back to the 2025 MicroCap Rodeo. Next up, it is the CFO of Paysign Inc. I give you Mr. Jeff Baker. Jeff, come on up here. Thank you very much. Jeff, as I said, my name is Jeff Baker, CFO of Paysign. I've been with the company just over four years. Happy to present, the company is listed on the NASDAQ under the symbol PAYS. Some forward-looking statements. I'm not gonna read this, but you should read this, as part of the housekeeping details, as well as, management uses non-GAAP financial measures. Most of the companies that follow us look at adjusted EBITDA, which is EBITDA plus stockholders' comp. So what does Paysign do? We effectively, what this slide says, is that we are a program manager, processor. We do everything soup to nuts. One throat to choke, so to speak. We do charge our own chargebacks. We do our own customer service, 24/7, 365 bilingual customer service. We're not relying on third parties. When we need to make a change to our software, we do it ourselves. We do not have to wait in line three, six, nine months for processors to do what we need to do to be successful. The company was incorporated in 1995. We are headquartered in Southern Nevada. Actually, we are just a suburb of Las Vegas. We have been around for more than 20 years, mostly providing payment services to the healthcare industry. We also do other prepaid areas, where, you know, we are replacing checks and cash just like other prepaid companies. Like I said, the predominant piece of our business is in healthcare payments and two vertical markets. I will talk about those in a moment. Some quick milestones here. In 2007, we actually entered the pharmaceutical prepaid space where we were providing electronic payments for other customers like hub service providers in the industry. One that everybody is pretty familiar with is called McKesson. I'm sure most people have heard of that company. They have a division called CoverMyMeds, where we were doing prepaid payments. In 2011, we moved into the plasma industry, where people, when they go give plasma, used to, they used to pay them with cash and check, and now they put it on an open-loop debit card, Visa branded card. We entered that space. The company went public through a reverse merger in 2018. In 2019, we rebranded Paysign, again, symbol PAYS. At the end of the fourth quarter, some metrics here, we had 480 plasma centers that we did payments for. There's about a little over 1,200 in the U.S. The U.S., ironically, provides over 75% of the world's plasma. Plasma is used, that's the clear liquid that comes out of the blood. You can get plasma twice a week, eight times a month. I think you can get blood like every six weeks. You sit in a machine and they separate the plasma from the red blood cells and put the red blood cells back in your body. Anyway, we have about 40% market share today in that business. We exited the year also with 76 patient affordability programs. That's the other side of our business. Patient affordability is also known as copay. What happens is, you get a script from your doctor, you go to the pharmacist, you're trying to get that script filled. 80% is gonna be paid by your health insurance, usually with most health plans. The other 20%, they're gonna say, "Jeff, I need, you know, 20, 20% from you." A lot of these, especially pharma drugs, there's over 800 in the country, in the market today. Like I said, with the end of the year, we had 76, but they're very expensive drugs, and most people can't afford a $200 copay. What will happen at that point is that the pharmaceutical company will be willing to pay that because the abandonment rate for drugs for them filling a prescription at the pharmacy is like 60%-over 65%. The pharmaceutical company would rather have 80% of something rather than 0% of nothing. They also realize that eventually you're gonna reach a point where you're gonna reach your maximum out-of-pocket expenditure, and then the health insurance company's gonna pay 100%. This happens every year. At January 1st every year, your benefits reset, as you know. Some investment highlights. On our financials, we have strong cash flow. It's been continuing to improve. We had heavy investments in the patient affordability business over the past three years, 2022, 2023, and 2024, and we're starting to show that that investment's paying off and you're starting to see margin expansion, and, you know, good cash flow. Like I said, we have zero debt. Both businesses, the plasma business in a normal world grows about 5% a year. It's a good cash cow. Last year did about $43 million-$44 million in revenue. And then the pharma patient affordability business, it's our real growth driver. And I've already given guidance this year that it'll grow at least 135% over last year. Last year it did $12.7 million, and that's kind of putting it in at $28 million-$30 million camp this year. We have great technology in the cloud. The platform continues to be developed and improved. We have superior products and services and really good, you know, sales and delivery and service. That's one thing. I mean, the plasma and patient affordability or pharmaceutical customers, they have zero appetite for systems to go down. That's the best way I can say it. Uptime, service, and delivery is extremely important. We can move very fast when things change or when our customers need to change. From a leadership perspective, if you look at our senior leadership, it's people either out of the banking industry, the payments industry like myself, or out of the patient affordability industry. So a lot of great domain expertise. That's one thing our CEO's done a really good job over the last, I'd say, five to six years is bring in good quality, senior leadership. Paysign at a glance. The stock closed just over $4.40 on, I think this is Monday. Market cap, just over $240 million. Fully diluted shares outstanding 55 million. Our 2024 revenue was $58 million. Trailing 12-month revenue was $64 million. You'll see that here on the, in the bottom slide with the green representing the first quarter. Fully diluted EPS was $0.07. Yes, we are profitable, both from an earnings perspective, from a net income perspective as well as an adjusted EBITDA perspective. My gross margins at the end of the first quarter was 62.9%. That's up from 53% the same period last year. You know, like I said, I have no debt and I've got $111 million of cash, of which $7 million roughly is unrestricted. The rest is restricted cash, about half of that is the dollars that are sitting in a bank account waiting to be spent. These are people that have paid, gone and given plasma, and they've gotten paid $60-$70 per instance as they use those funds by going to buy groceries, gas, getting money off ATM. I make money, and that's, you know, that's our card-based revenue. This is just a quick screenshot of our, you know, 12-month chart. You'll see it was in a downtrend, for whatever reason. I have no idea. It rallied after we reported first quarter earnings 'cause I think the street is starting to recognize the leverage that we now have that we're showing with that patient affordability business, that investment that was made. I think there was a lot of doubt from investors whether or not we could actually turn that into a leverageable business. We started to demonstrate that in the first quarter. By the numbers, I mentioned 2024 revenue $58.4 million. The trailing 12-month revenue $64 million. We've got trailing 12-month adjusted EBITDA of $13 million and total assets of $105 million. On the left here, you'll see revenue by segment, and the light blue is the plasma business. The darker blue is the patient affordability business. The green is kind of the other. We have other prepaid programs that we use. We've got a payroll business. We've got a metal recycling business. We've got AAA where I do gift cards for them. It's a very small piece of our business. The chart on the right shows you our annual revenue growth from 2022, 2021, 2021, through 2024, and then trailing 12 months. I mentioned down here earlier the revenue drivers we have, the cardholder fees, which I already explained. I also get interchange when those cards are used. I also get interchange from my patient affordability business because we'll pay some of those claims with a virtual debit card. I get interchange there. I get monthly management fees in the patient affordability business. and then I get other fees like call center fees, etc. Very interesting point is that we've got to the point where we basically run our call center at breakeven. In other words, I'm able to bill out as much as it costs me to pay for the call center employees. That that's a very unique business, from us. And then the other thing I mentioned, I didn't mention claim fees. So in the patient affordability, it's also transactional. I get paid based on the number of claims that I settle. And it doesn't matter if the claim is for $1,000 or $100. I get paid the same amount. and, the, the first quarter, the first half of the year is always the strongest from a claims perspective because people haven't reached their maximum out-of-pocket yet. Like I said, in the second half of the year, claims go down, because your insurance company usually picks up that 100%. The patient affordability business, I mentioned it a little bit. There are kind of two areas. One of them is pharmacy benefit copay, just like what it says. You go to a pharmacy, Walgreens, Rite Aid, you know, independent pharmacy, you get your prescription filled, and we're gonna pay that claim. The other one is the medical benefit copay solutions, which is the same thing. It's if it's, you know, intravenous drugs delivered at hospitals or urgent care facilities, etc. Again, you know, the pharmaceutical companies pay these on your behalf because they want you on the drug. One of the things that we have in this business that has really helped our success is this thing called Dynamic Business Rules. Dynamic Business Rules, it's a proprietary technology that we're able to see in the transaction flow where we can identify on first fill whether or not a claim is being paid by or should be paid by from a copay program or whether it's gonna be paid by, into these maximizers that are out there. I don't wanna lose people through the weeds here, but these maximizers are like SaveOn, PrudentRx. We can identify a transaction and stop that transaction. In 2024, we saved our customers over $100 million in claims that they would have made if they weren't using this technology. This year, it'll be at least double that. It is real money, real dollars. We've had, you know, we've had customers who are, you know, marquee customers for us who have agreed to be referenced. And they've said, "Paysign, is no longer a call center for us. They're a revenue-generating center for us." That is very powerful, especially as we are able to add more customers. The numbers speak for themselves. I mean, this is the patient affordability business. The green again is the first quarter of this year versus last year. It's somewhat kind of the growth is masked a little bit. Like I said earlier, you know, in a normal world, the revenues would kind of fall off at the end of the second half of the year. We've been adding so many programs. Exited 2024, like I said, with 76 programs. I exited the first quarter with 90 programs. There's more coming, that we'll add throughout the year and stage it for when the clock switches on January 1 and everything resets. Now, all those programs and all those claims will then, you know, hit in the first quarter of next year. The other part of our business, the plasma donor solutions, you know, pretty self-explanatory. You know, 40% market share. Told you how we make money on that. This business is, you know, grows about 5% a year, in a normal world. Come out of COVID, inventory levels were so depressed because the biggest risk of this business are people that sit at home and get free money from the government. People get plasma because they're using it to supplement their income, not because they like sitting in a chair for two hours to give, you know, have a needle in their arm. Coming out of COVID, the inventory levels were low. You know, plasma companies were trying to build those inventory levels back up. Like anything else, they overcorrected. In about the fourth quarter of last year, we started to see plasma companies starting to cut their hours. They do not shut the centers because you have to get, it is a six-month process to get a center certified by the FDA to be selling plasma. What they did is, you know, if they were open seven days a week, now they are open five days a week. They have cut the weekend staff out. This business, you know, we have told the street that we expect it to be down 8%-10% this year. It is a good variable business. My revenues go down, my costs go down. You know, still a nice margin, nice cash cow business. This will all abate. You know, plasma has a limited shelf life of it, but this will all abate over the next, you know, by the end of this year, first half of next year. This is, plasma by the numbers. Plasma, usually the first quarter is the weakest quarter because what happens? Tax refunds, right? People getting free money from the government. It usually builds throughout the rest of the year. It is, there's some seasonality with it when you're looking at the business and trying to compare year-over-year. We recently bought a company named Gamma Innovation. I'm really excited about this. We paid $60 million in cash and stock, structured it over four years, both the cash component and the stock vesting component of it. We bought three software applications that were really built for the plasma industry. The TAM in the plasma market is about $100 million just on the payment side. We have 40% market share. It's, you know, that's kind of somewhat limited. The TAM on the patient affordability side, just on the payment side, is like over $500 million, and we're early days on that. This acquisition, by bringing in three more software applications, expands the TAM, our opportunity in plasma in general. The plasma industry is dominated from a software and hardware perspective by one company out of Canada named Haemonetics, and there really hasn't been a lot of development from them. There hasn't been a lot of, you know, disruption in the plasma space. But with these applications now, there are international hardware companies that are in the process of getting FDA approval for their machines to come to the U.S. They would like nothing more than to have an integrated software application that they could help sell into other plasma companies. We were in Poland two weeks ago. I wasn't, but my CEO and other individuals from the company were there. The receptivity on these products was extremely positive. We'll see how that develops going forward. Even without that, if I don't sell one, I'm already happy with this acquisition because it came with a guy who has a great development shop. He was formerly with Google, Citibank, and he came in and immediately recognized over $4 million-$5 million in cash savings from just improving our development activities or our development. We told the street exiting the second quarter we will be on that $4 million-$5 million annual run rate in cash savings. Now, it will not all drop to the bottom line because I was capitalizing on a lot of those costs, but it will improve my cash flow. These are some of the other, I mentioned, you know, the payroll. I mentioned, you know, AAA for their gift card business and others. We have kind of these small other prepaid areas that we go after that are still paying people in cash or checks. Our main focus is in the healthcare payments. Every prepaid company has this probably same slide. This is a huge market opportunity. And on the far right, you see all of the products that we have that we could sell if we wanted to go after some of these. I mean, I'll be very honest. I came from one of the largest retail prepaid companies in the world. We're not going into retail. It's a pay-to-play game. It's dominated by two companies, Blackhawk and InComm. You know, if you're small like us, then you find these little niches where you can make a difference, you can provide great service, and you can beat the competition based on innovation. Like I said, most of our stuff comes from the corporate-funded incentive and rebates, is what that area is called, with the healthcare. Some financial highlights. As I mentioned, if you look here on the second line, net income, we are profitable. You have to look at really, same period this year versus same period last year. So Q1 versus Q1, Q2 versus Q2, etc. And we do have, you know, benefit from a really nice, sponsorship deal, where we get, you know, interest income on the balances that we keep at the bank. You know, our depreciation amortization has been climbing, due to the investment, like I mentioned, in the patient affordability business, that capitalized software development. But if you, you know, go all the way down to the bottom, you'll see our adjusted EBITDA is growing. You'll see our adjusted EBITDA margins growing. You see our net income is growing and our net income margin is growing. I think it's a testament to the vision that Mark had, you know, five years ago when he started back into the patient affordability business, built out a team, invested the company's capital knowing that it wasn't gonna happen overnight. We're finally reaching a point where we're starting to see that operating leverage. We're covered by five companies. They all have buy or buy equivalent ratings on us. Their target price is anywhere from $6-$8. You know, there's some good analyst coverage here, some resources. If you go to our website, our investor relations website, you can download this presentation. It's very important because I put this in here. If you wanna know whatever you wanna know about the plasma industry, you can click on the top row here, those three areas. It'll tell you how many plasma centers there are. It'll tell you what plasma therapies are used, you know, what therapies use plasma, etc. The bottom section here, due to the complexity in the patient affordability business and copay, it's not as easy as I just told you. If you're interested, go do the research. You'll find out why PBMs are not good. You'll find out why maximizers are not good. You'll find out, you know, how complex and how inefficient our entire drug system is. People ask me, "Is this, you know, can you expand this outside the U.S.?" I'm like, "No, it doesn't exist outside the U.S. It's socialist medicine, and the government pays for most of everything. In the U.S., the government doesn't." By the way, and I did mention this, copay is only applicable to non-government health plans. If you're on Medicare or Medicaid, you can't, you're not even associated. You can't even be a part of a copay program. This is the 170 million, roughly, individuals who aren't on government programs, which is unfortunate because I have parents who I would love to be able to subsidize their drug costs, but, you know, they're on Medicare. Unfortunately, they don't, they don't qualify. The leadership team I mentioned here are, you can look at these wonderful mug shots at your own leisure. Trust me when I say 90% of the people on this page either came out of the three areas: banking, payments, or healthcare, patient affordability. We have a really good group of independent directors. Dan Henry is an icon in the payments industry. He used to be the president of Euronet Worldwide, a public company. He then went on to be the CEO of Netspend, which is another prepaid company, and then went on to be the CEO of Green Dot. Great payment domain expertise. Dennis Triplett, he was at UMB Health, he was the CEO of the healthcare side of UMB Bank. He comes out of banking. Jeff Newman used to work with Dan at Euronet. He was the general counsel there for many years. Bruce Mina, our audit chair, has his own CPA firm. With that, I will turn it over for questions. We're now sort of working, like something changed internally? Yeah. The question is, what happened in the pharma prepaid space is what we used to call it back in the early 2000s. The prepaid space is just that. We were the electronic or prepaid, the prepaid provider for hubs, like McKesson I mentioned. Before Paysign stepped into this market, the industry repaid claims using checks. That's all it is. Check, check, check, check. They would send a flat file to a check processor. They mail out checks. In steps Paysign. We knew that we were only getting a fraction of the opportunity for that business. In 2022, September 2022, the contract that we had with the big hub provider, we exited out of that contract and ended up actually going to other hub providers that did not have payment capabilities, saying, "Let's partner up. You do your hub stuff. We'll do the payment stuff." And then, you know, here, here now we sit, with that. The other thing we did is we went direct to pharma. Before that, we didn't have any way to go direct to pharma. Now we've gone direct to pharma to do, you know, the bigger companies, payments for them. That's what happened. Correct. Yep. That was a big change when we moved from just doing the electronic payments for one customer and little bitty pieces of the business to going, boom, now we can do payments for everybody. We can do payments for hubs, and they act as kind of like our indirect salespeople. They bring us their customers, and then we can go direct to pharma, which we could not do before. We do all their payments. I do check, I do ACH, I do virtual debit card. That is how I pay. Most of my payments are electronic, ACH and virtual debit card. I hate checks. I wish they would go away, but they are not. You have to take the good to get the bad, so. Yeah. The other important thing is we open booked the pharmaceutical companies. In the past, it was a big black box. They did all these services. Payments was one of them. We went in and said, "Listen, here's how much you're gonna pay per claim." Boom. You can figure out if you're getting an ROI by paying those monies to cover that copay. Totally different mentality. I'm getting the yank. Thank you very much for your time. I appreciate it. Please let me know if you have any questions. Thank you very much. Yeah, appreciate it. Folks, once again, the CFO of Paysign, Jeff Baker. On deck, everybody, it's ZenaTech coming up in just a couple of minutes. That will be followed by Sally's Apizza. ZenaTech is next.

Speaker 2: Ladies and gentlemen in attendance and to our webinar guests around the world, welcome back to the 2025 MicroCap Rodeo. Next up, it is the CFO of Paysign Inc. I give you Mr. Jeff Baker. Jeff, come on up here. Ladies and gentlemen in attendance and to our webinar guests around the world, welcome back to the 2025 MicroCap Rodeo. ladies and gentlemen in attendance and to our webinar guests around the world welcome back to the 2025 microcap rodeo Next up, it is the CFO of Paysign Inc. next up it is the cfo of paysign inc I give you Mr. Jeff Baker. i give you mr jeff baker Jeff, come on up here. jeff come on up here

Speaker 1: Thank you very much. Jeff, as I said, my name is Jeff Baker, CFO of Paysign. I've been with the company just over four years. Happy to present, the company is listed on the NASDAQ under the symbol PAYS. Some forward-looking statements. I'm not gonna read this, but you should read this, as part of the housekeeping details, as well as, management uses non-GAAP financial measures. Most of the companies that follow us look at adjusted EBITDA, which is EBITDA plus stockholders' comp. So what does Paysign do? We effectively, what this slide says, is that we are a program manager, processor. We do everything soup to nuts. One throat to choke, so to speak. We do charge our own chargebacks. We do our own customer service, 24/7, 365 bilingual customer service. We're not relying on third parties. Thank you very much. thank you very much Jeff, as I said, my name is Jeff Baker, CFO of Paysign. jeff as i said my name is jeff baker cfo of paysign I've been with the company just over four years. i've been with the company just over four years Happy to present, the company is listed on the NASDAQ under the symbol PAYS. happy to present the company is listed on the nasdaq under the symbol pays Some forward-looking statements. some forward-looking statements I'm not gonna read this, but you should read this, as part of the housekeeping details, as well as, management uses non-GAAP financial measures. i'm not gonna read this but you should read this as part of the housekeeping details as well as management uses non-gaap financial measures Most of the companies that follow us look at adjusted EBITDA, which is EBITDA plus stockholders' comp. most of the companies that follow us look at adjusted ebitda which is ebitda plus stockholders' comp So what does Paysign do? so what does paysign do We effectively, what this slide says, is that we are a program manager, processor. we effectively what this slide says is that we are a program manager processor We do everything soup to nuts. we do everything soup to nuts One throat to choke, so to speak. one throat to choke so to speak We do charge our own chargebacks. we do charge our own chargebacks We do our own customer service, 24/7, 365 bilingual customer service. we do our own customer service 24/7 365 bilingual customer service We're not relying on third parties. we're not relying on third parties When we need to make a change to our software, we do it ourselves. We do not have to wait in line three, six, nine months for processors to do what we need to do to be successful. The company was incorporated in 1995. We are headquartered in Southern Nevada. Actually, we are just a suburb of Las Vegas. We have been around for more than 20 years, mostly providing payment services to the healthcare industry. We also do other prepaid areas, where, you know, we are replacing checks and cash just like other prepaid companies. Like I said, the predominant piece of our business is in healthcare payments and two vertical markets. I will talk about those in a moment. Some quick milestones here. In 2007, we actually entered the pharmaceutical prepaid space where we were providing electronic payments for other customers like hub service providers in the industry. When we need to make a change to our software, we do it ourselves. when we need to make a change to our software we do it ourselves We do not have to wait in line three, six, nine months for processors to do what we need to do to be successful. we do not have to wait in line three six nine months for processors to do what we need to do to be successful The company was incorporated in 1995. We are headquartered in Southern Nevada. Actually, we are just a suburb of Las Vegas. the company was incorporated in 1995. we are headquartered in southern nevada. actually we are just a suburb of las vegas We have been around for more than 20 years, mostly providing payment services to the healthcare industry. we have been around for more than 20 years mostly providing payment services to the healthcare industry We also do other prepaid areas, where, you know, we are replacing checks and cash just like other prepaid companies. we also do other prepaid areas where you know we are replacing checks and cash just like other prepaid companies Like I said, the predominant piece of our business is in healthcare payments and two vertical markets. I will talk about those in a moment. like i said the predominant piece of our business is in healthcare payments and two vertical markets. i will talk about those in a moment Some quick milestones here. some quick milestones here In 2007, we actually entered the pharmaceutical prepaid space where we were providing electronic payments for other customers like hub service providers in the industry. in 2007 we actually entered the pharmaceutical prepaid space where we were providing electronic payments for other customers like hub service providers in the industry One that everybody is pretty familiar with is called McKesson. I'm sure most people have heard of that company. They have a division called CoverMyMeds, where we were doing prepaid payments. In 2011, we moved into the plasma industry, where people, when they go give plasma, used to, they used to pay them with cash and check, and now they put it on an open-loop debit card, Visa branded card. We entered that space. The company went public through a reverse merger in 2018. In 2019, we rebranded Paysign, again, symbol PAYS. At the end of the fourth quarter, some metrics here, we had 480 plasma centers that we did payments for. There's about a little over 1,200 in the U.S. The U.S., ironically, provides over 75% of the world's plasma. One that everybody is pretty familiar with is called McKesson. one that everybody is pretty familiar with is called mckesson I'm sure most people have heard of that company. i'm sure most people have heard of that company They have a division called Cover My Meds, where we were doing prepaid payments. they have a division called cover my meds where we were doing prepaid payments In 2011, we moved into the plasma industry, where people, when they go give plasma, used to, they used to pay them with cash and check, and now they put it on an open-loop debit card, Visa branded card. in 2011 we moved into the plasma industry where people when they go give plasma used to they used to pay them with cash and check and now they put it on an open-loop debit card visa branded card We entered that space. we entered that space The company went public through a reverse merger in 2018. the company went public through a reverse merger in 2018 In 2019, we rebranded Paysign, again, symbol PAYS. in 2019 we rebranded paysign again symbol pays At the end of the fourth quarter, some metrics here, we had 480 plasma centers that we did payments for. at the end of the fourth quarter some metrics here we had 480 plasma centers that we did payments for There's about a little over 1,200 in the U.S. there's about a little over 1,200 in the u.s The U.S., ironically, provides over 75% of the world's plasma. the u.s ironically provides over 75% of the world's plasma Plasma is used, that's the clear liquid that comes out of the blood. You can get plasma twice a week, eight times a month. I think you can get blood like every six weeks. You sit in a machine and they separate the plasma from the red blood cells and put the red blood cells back in your body. Anyway, we have about 40% market share today in that business. We exited the year also with 76 patient affordability programs. That's the other side of our business. Patient affordability is also known as copay. What happens is, you get a script from your doctor, you go to the pharmacist, you're trying to get that script filled. 80% is gonna be paid by your health insurance, usually with most health plans. Plasma is used, that's the clear liquid that comes out of the blood. plasma is used that's the clear liquid that comes out of the blood You can get plasma twice a week, eight times a month. you can get plasma twice a week eight times a month I think you can get blood like every six weeks. i think you can get blood like every six weeks You sit in a machine and they separate the plasma from the red blood cells and put the red blood cells back in your body. you sit in a machine and they separate the plasma from the red blood cells and put the red blood cells back in your body Anyway, we have about 40% market share today in that business. anyway we have about 40% market share today in that business We exited the year also with 76 patient affordability programs. we exited the year also with 76 patient affordability programs That's the other side of our business. that's the other side of our business Patient affordability is also known as copay. patient affordability is also known as copay What happens is, you get a script from your doctor, you go to the pharmacist, you're trying to get that script filled. 80% is gonna be paid by your health insurance, usually with most health plans. what happens is you get a script from your doctor you go to the pharmacist you're trying to get that script filled 80% is gonna be paid by your health insurance usually with most health plans The other 20%, they're gonna say, "Jeff, I need, you know, 20, 20% from you." A lot of these, especially pharma drugs, there's over 800 in the country, in the market today. Like I said, with the end of the year, we had 76, but they're very expensive drugs, and most people can't afford a $200 copay. What will happen at that point is that the pharmaceutical company will be willing to pay that because the abandonment rate for drugs for them filling a prescription at the pharmacy is like 60%-over 65%. The pharmaceutical company would rather have 80% of something rather than 0% of nothing. The other 20%, they're gonna say, "Jeff, I need, you know, 20, 20% from you." A lot of these, especially pharma drugs, there's over 800 in the country, in the market today. the other 20% they're gonna say "jeff i need you know 20 20% from you." a lot of these especially pharma drugs there's over 800 in the country in the market today Like I said, with the end of the year, we had 76, but they're very expensive drugs, and most people can't afford a $200 copay. like i said with the end of the year we had 76 but they're very expensive drugs and most people can't afford a $200 copay What will happen at that point is that the pharmaceutical company will be willing to pay that because the abandonment rate for drugs for them filling a prescription at the pharmacy is like 60%-over 65%. what will happen at that point is that the pharmaceutical company will be willing to pay that because the abandonment rate for drugs for them filling a prescription at the pharmacy is like 60%-over 65% The pharmaceutical company would rather have 80% of something rather than 0% of nothing. the pharmaceutical company would rather have 80% of something rather than 0% of nothing They also realize that eventually you're gonna reach a point where you're gonna reach your maximum out-of-pocket expenditure, and then the health insurance company's gonna pay 100%. This happens every year. At January 1st every year, your benefits reset, as you know. Some investment highlights. On our financials, we have strong cash flow. It's been continuing to improve. We had heavy investments in the patient affordability business over the past three years, 2022, 2023, and 2024, and we're starting to show that that investment's paying off and you're starting to see margin expansion, and, you know, good cash flow. Like I said, we have zero debt. Both businesses, the plasma business in a normal world grows about 5% a year. It's a good cash cow. Last year did about $43 million-$44 million in revenue. They also realize that eventually you're gonna reach a point where you're gonna reach your maximum out-of-pocket expenditure, and then the health insurance company's gonna pay 100%. they also realize that eventually you're gonna reach a point where you're gonna reach your maximum out-of-pocket expenditure and then the health insurance company's gonna pay 100% This happens every year. this happens every year At January 1st every year, your benefits reset, as you know. at january 1st every year your benefits reset as you know Some investment highlights. some investment highlights On our financials, we have strong cash flow. on our financials we have strong cash flow It's been continuing to improve. it's been continuing to improve We had heavy investments in the patient affordability business over the past three years, 2022, 2023, and 2024, and we're starting to show that that investment's paying off and you're starting to see margin expansion, and, you know, good cash flow. we had heavy investments in the patient affordability business over the past three years 2022 2023 and 2024 and we're starting to show that that investment's paying off and you're starting to see margin expansion and you know good cash flow Like I said, we have zero debt. like i said we have zero debt Both businesses, the plasma business in a normal world grows about 5% a year. both businesses the plasma business in a normal world grows about 5% a year It's a good cash cow. it's a good cash cow Last year did about $43 million-$44 million in revenue. last year did about $43 million-$44 million in revenue And then the pharma patient affordability business, it's our real growth driver. And I've already given guidance this year that it'll grow at least 135% over last year. Last year it did $12.7 million, and that's kind of putting it in at $28 million-$30 million camp this year. We have great technology in the cloud. The platform continues to be developed and improved. We have superior products and services and really good, you know, sales and delivery and service. That's one thing. I mean, the plasma and patient affordability or pharmaceutical customers, they have zero appetite for systems to go down. That's the best way I can say it. Uptime, service, and delivery is extremely important. We can move very fast when things change or when our customers need to change. And then the pharma patient affordability business, it's our real growth driver. and then the pharma patient affordability business it's our real growth driver And I've already given guidance this year that it'll grow at least 135% over last year. and i've already given guidance this year that it'll grow at least 135% over last year Last year it did $12.7 million, and that's kind of putting it in at $28 million-$30 million camp this year. last year it did $12.7 million and that's kind of putting it in at $28 million-$30 million camp this year We have great technology in the cloud. we have great technology in the cloud The platform continues to be developed and improved. the platform continues to be developed and improved We have superior products and services and really good, you know, sales and delivery and service. we have superior products and services and really good you know sales and delivery and service That's one thing. that's one thing I mean, the plasma and patient affordability or pharmaceutical customers, they have zero appetite for systems to go down. i mean the plasma and patient affordability or pharmaceutical customers they have zero appetite for systems to go down That's the best way I can say it. that's the best way i can say it Uptime, service, and delivery is extremely important. uptime service and delivery is extremely important We can move very fast when things change or when our customers need to change. we can move very fast when things change or when our customers need to change From a leadership perspective, if you look at our senior leadership, it's people either out of the banking industry, the payments industry like myself, or out of the patient affordability industry. So a lot of great domain expertise. That's one thing our CEO's done a really good job over the last, I'd say, five to six years is bring in good quality, senior leadership. Paysign at a glance. The stock closed just over $4.40 on, I think this is Monday. Market cap, just over $240 million. Fully diluted shares outstanding 55 million. Our 2024 revenue was $58 million. Trailing 12-month revenue was $64 million. You'll see that here on the, in the bottom slide with the green representing the first quarter. Fully diluted EPS was $0.07. From a leadership perspective, if you look at our senior leadership, it's people either out of the banking industry, the payments industry like myself, or out of the patient affordability industry. from a leadership perspective if you look at our senior leadership it's people either out of the banking industry the payments industry like myself or out of the patient affordability industry So a lot of great domain expertise. so a lot of great domain expertise That's one thing our CEO's done a really good job over the last, I'd say, five to six years is bring in good quality, senior leadership. that's one thing our ceo's done a really good job over the last i'd say five to six years is bring in good quality senior leadership Paysign at a glance. paysign at a glance The stock closed just over $4.40 on, I think this is Monday. the stock closed just over $4.40 on i think this is monday Market cap, just over $240 million. market cap just over $240 million Fully diluted shares outstanding 55 million. fully diluted shares outstanding 55 million Our 2024 revenue was $58 million. our 2024 revenue was $58 million Trailing 12-month revenue was $64 million. trailing 12-month revenue was $64 million You'll see that here on the, in the bottom slide with the green representing the first quarter. you'll see that here on the in the bottom slide with the green representing the first quarter Fully diluted EPS was $0.07. fully diluted eps was $0.07 Yes, we are profitable, both from an earnings perspective, from a net income perspective as well as an adjusted EBITDA perspective. My gross margins at the end of the first quarter was 62.9%. That's up from 53% the same period last year. You know, like I said, I have no debt and I've got $111 million of cash, of which $7 million roughly is unrestricted. The rest is restricted cash, about half of that is the dollars that are sitting in a bank account waiting to be spent. These are people that have paid, gone and given plasma, and they've gotten paid $60-$70 per instance as they use those funds by going to buy groceries, gas, getting money off ATM. I make money, and that's, you know, that's our card-based revenue. Yes, we are profitable, both from an earnings perspective, from a net income perspective as well as an adjusted EBITDA perspective. yes we are profitable both from an earnings perspective from a net income perspective as well as an adjusted ebitda perspective My gross margins at the end of the first quarter was 62.9%. my gross margins at the end of the first quarter was 62.9% That's up from 53% the same period last year. that's up from 53% the same period last year You know, like I said, I have no debt and I've got $111 million of cash, of which $7 million roughly is unrestricted. you know like i said i have no debt and i've got $111 million of cash of which $7 million roughly is unrestricted The rest is restricted cash, about half of that is the dollars that are sitting in a bank account waiting to be spent. the rest is restricted cash about half of that is the dollars that are sitting in a bank account waiting to be spent These are people that have paid, gone and given plasma, and they've gotten paid $60-$70 per instance as they use those funds by going to buy groceries, gas, getting money off ATM. these are people that have paid gone and given plasma and they've gotten paid $60-$70 per instance as they use those funds by going to buy groceries gas getting money off atm I make money, and that's, you know, that's our card-based revenue. i make money and that's you know that's our card-based revenue This is just a quick screenshot of our, you know, 12-month chart. You'll see it was in a downtrend, for whatever reason. I have no idea. It rallied after we reported first quarter earnings 'cause I think the street is starting to recognize the leverage that we now have that we're showing with that patient affordability business, that investment that was made. I think there was a lot of doubt from investors whether or not we could actually turn that into a leverageable business. We started to demonstrate that in the first quarter. By the numbers, I mentioned 2024 revenue $58.4 million. The trailing 12-month revenue $64 million. We've got trailing 12-month adjusted EBITDA of $13 million and total assets of $105 million. On the left here, you'll see revenue by segment, and the light blue is the plasma business. This is just a quick screenshot of our, you know, 12-month chart. this is just a quick screenshot of our you know 12-month chart You'll see it was in a downtrend, for whatever reason. you'll see it was in a downtrend for whatever reason I have no idea. i have no idea It rallied after we reported first quarter earnings 'cause I think the street is starting to recognize the leverage that we now have that we're showing with that patient affordability business, that investment that was made. it rallied after we reported first quarter earnings 'cause i think the street is starting to recognize the leverage that we now have that we're showing with that patient affordability business that investment that was made I think there was a lot of doubt from investors whether or not we could actually turn that into a leverageable business. i think there was a lot of doubt from investors whether or not we could actually turn that into a leverageable business We started to demonstrate that in the first quarter. we started to demonstrate that in the first quarter By the numbers, I mentioned 2024 revenue $58.4 million. by the numbers i mentioned 2024 revenue $58.4 million The trailing 12-month revenue $64 million. the trailing 12-month revenue $64 million We've got trailing 12-month adjusted EBITDA of $13 million and total assets of $105 million. we've got trailing 12-month adjusted ebitda of $13 million and total assets of $105 million On the left here, you'll see revenue by segment, and the light blue is the plasma business. on the left here you'll see revenue by segment and the light blue is the plasma business The darker blue is the patient affordability business. The green is kind of the other. We have other prepaid programs that we use. We've got a payroll business. We've got a metal recycling business. We've got AAA where I do gift cards for them. It's a very small piece of our business. The chart on the right shows you our annual revenue growth from 2022, 2021, 2021, through 2024, and then trailing 12 months. I mentioned down here earlier the revenue drivers we have, the cardholder fees, which I already explained. I also get interchange when those cards are used. I also get interchange from my patient affordability business because we'll pay some of those claims with a virtual debit card. I get interchange there. I get monthly management fees in the patient affordability business. The darker blue is the patient affordability business. the darker blue is the patient affordability business The green is kind of the other. the green is kind of the other We have other prepaid programs that we use. we have other prepaid programs that we use We've got a payroll business. we've got a payroll business We've got a metal recycling business. we've got a metal recycling business We've got AAA where I do gift cards for them. we've got aaa where i do gift cards for them It's a very small piece of our business. it's a very small piece of our business The chart on the right shows you our annual revenue growth from 2022, 2021, 2021, through 2024, and then trailing 12 months. the chart on the right shows you our annual revenue growth from 2022 2021 2021 through 2024 and then trailing 12 months I mentioned down here earlier the revenue drivers we have, the cardholder fees, which I already explained. i mentioned down here earlier the revenue drivers we have the cardholder fees which i already explained I also get interchange when those cards are used. i also get interchange when those cards are used I also get interchange from my patient affordability business because we'll pay some of those claims with a virtual debit card. i also get interchange from my patient affordability business because we'll pay some of those claims with a virtual debit card I get interchange there. i get interchange there I get monthly management fees in the patient affordability business. i get monthly management fees in the patient affordability business and then I get other fees like call center fees, etc. Very interesting point is that we've got to the point where we basically run our call center at breakeven. In other words, I'm able to bill out as much as it costs me to pay for the call center employees. That that's a very unique business, from us. And then the other thing I mentioned, I didn't mention claim fees. So in the patient affordability, it's also transactional. I get paid based on the number of claims that I settle. And it doesn't matter if the claim is for $1,000 or $100. I get paid the same amount. and, the, the first quarter, the first half of the year is always the strongest from a claims perspective because people haven't reached their maximum out-of-pocket yet. and then I get other fees like call center fees, etc. Very interesting point is that we've got to the point where we basically run our call center at breakeven. and then i get other fees like call center fees etc very interesting point is that we've got to the point where we basically run our call center at breakeven In other words, I'm able to bill out as much as it costs me to pay for the call center employees. in other words i'm able to bill out as much as it costs me to pay for the call center employees That that's a very unique business, from us. that that's a very unique business from us And then the other thing I mentioned, I didn't mention claim fees. and then the other thing i mentioned i didn't mention claim fees So in the patient affordability, it's also transactional. so in the patient affordability it's also transactional I get paid based on the number of claims that I settle. i get paid based on the number of claims that i settle And it doesn't matter if the claim is for $1,000 or $100. and it doesn't matter if the claim is for $1,000 or $100 I get paid the same amount. and, the, the first quarter, the first half of the year is always the strongest from a claims perspective because people haven't reached their maximum out-of-pocket yet. i get paid the same amount and the the first quarter the first half of the year is always the strongest from a claims perspective because people haven't reached their maximum out-of-pocket yet Like I said, in the second half of the year, claims go down, because your insurance company usually picks up that 100%. The patient affordability business, I mentioned it a little bit. There are kind of two areas. One of them is pharmacy benefit copay, just like what it says. You go to a pharmacy, Walgreens, Rite Aid, you know, independent pharmacy, you get your prescription filled, and we're gonna pay that claim. The other one is the medical benefit copay solutions, which is the same thing. It's if it's, you know, intravenous drugs delivered at hospitals or urgent care facilities, etc. Again, you know, the pharmaceutical companies pay these on your behalf because they want you on the drug. Like I said, in the second half of the year, claims go down, because your insurance company usually picks up that 100%. like i said in the second half of the year claims go down because your insurance company usually picks up that 100% The patient affordability business, I mentioned it a little bit. There are kind of two areas. the patient affordability business i mentioned it a little bit. there are kind of two areas One of them is pharmacy benefit copay, just like what it says. one of them is pharmacy benefit copay just like what it says You go to a pharmacy, Walgreens, Rite Aid, you know, independent pharmacy, you get your prescription filled, and we're gonna pay that claim. you go to a pharmacy walgreens rite aid you know independent pharmacy you get your prescription filled and we're gonna pay that claim The other one is the medical benefit copay solutions, which is the same thing. the other one is the medical benefit copay solutions which is the same thing It's if it's, you know, intravenous drugs delivered at hospitals or urgent care facilities, etc. Again, you know, the pharmaceutical companies pay these on your behalf because they want you on the drug. it's if it's you know intravenous drugs delivered at hospitals or urgent care facilities etc again you know the pharmaceutical companies pay these on your behalf because they want you on the drug One of the things that we have in this business that has really helped our success is this thing called Dynamic Business Rules. Dynamic Business Rules, it's a proprietary technology that we're able to see in the transaction flow where we can identify on first fill whether or not a claim is being paid by or should be paid by from a copay program or whether it's gonna be paid by, into these maximizers that are out there. I don't wanna lose people through the weeds here, but these maximizers are like SaveOn, PrudentRx. We can identify a transaction and stop that transaction. In 2024, we saved our customers over $100 million in claims that they would have made if they weren't using this technology. This year, it'll be at least double that. It is real money, real dollars. One of the things that we have in this business that has really helped our success is this thing called Dynamic Business Rules. one of the things that we have in this business that has really helped our success is this thing called dynamic business rules Dynamic Business Rules, it's a proprietary technology that we're able to see in the transaction flow where we can identify on first fill whether or not a claim is being paid by or should be paid by from a copay program or whether it's gonna be paid by, into these maximizers that are out there. dynamic business rules it's a proprietary technology that we're able to see in the transaction flow where we can identify on first fill whether or not a claim is being paid by or should be paid by from a copay program or whether it's gonna be paid by into these maximizers that are out there I don't wanna lose people through the weeds here, but these maximizers are like SaveOn, PrudentRx. i don't wanna lose people through the weeds here but these maximizers are like saveon prudentrx We can identify a transaction and stop that transaction. we can identify a transaction and stop that transaction In 2024, we saved our customers over $100 million in claims that they would have made if they weren't using this technology. in 2024 we saved our customers over $100 million in claims that they would have made if they weren't using this technology This year, it'll be at least double that. this year it'll be at least double that It is real money, real dollars. it is real money real dollars We've had, you know, we've had customers who are, you know, marquee customers for us who have agreed to be referenced. And they've said, "Paysign, is no longer a call center for us. They're a revenue-generating center for us." That is very powerful, especially as we are able to add more customers. The numbers speak for themselves. I mean, this is the patient affordability business. The green again is the first quarter of this year versus last year. It's somewhat kind of the growth is masked a little bit. Like I said earlier, you know, in a normal world, the revenues would kind of fall off at the end of the second half of the year. We've been adding so many programs. Exited 2024, like I said, with 76 programs. I exited the first quarter with 90 programs. We've had, you know, we've had customers who are, you know, marquee customers for us who have agreed to be referenced. we've had you know we've had customers who are you know marquee customers for us who have agreed to be referenced And they've said, "Paysign, is no longer a call center for us. and they've said "paysign is no longer a call center for us They're a revenue-generating center for us." That is very powerful, especially as we are able to add more customers. they're a revenue-generating center for us." that is very powerful especially as we are able to add more customers The numbers speak for themselves. the numbers speak for themselves I mean, this is the patient affordability business. i mean this is the patient affordability business The green again is the first quarter of this year versus last year. the green again is the first quarter of this year versus last year It's somewhat kind of the growth is masked a little bit. it's somewhat kind of the growth is masked a little bit Like I said earlier, you know, in a normal world, the revenues would kind of fall off at the end of the second half of the year. like i said earlier you know in a normal world the revenues would kind of fall off at the end of the second half of the year We've been adding so many programs. we've been adding so many programs Exited 2024, like I said, with 76 programs. exited 2024 like i said with 76 programs I exited the first quarter with 90 programs. i exited the first quarter with 90 programs There's more coming, that we'll add throughout the year and stage it for when the clock switches on January 1 and everything resets. Now, all those programs and all those claims will then, you know, hit in the first quarter of next year. The other part of our business, the plasma donor solutions, you know, pretty self-explanatory. You know, 40% market share. Told you how we make money on that. This business is, you know, grows about 5% a year, in a normal world. Come out of COVID, inventory levels were so depressed because the biggest risk of this business are people that sit at home and get free money from the government. People get plasma because they're using it to supplement their income, not because they like sitting in a chair for two hours to give, you know, have a needle in their arm. There's more coming, that we'll add throughout the year and stage it for when the clock switches on January 1 and everything resets. there's more coming that we'll add throughout the year and stage it for when the clock switches on january 1 and everything resets Now, all those programs and all those claims will then, you know, hit in the first quarter of next year. now all those programs and all those claims will then you know hit in the first quarter of next year The other part of our business, the plasma donor solutions, you know, pretty self-explanatory. the other part of our business the plasma donor solutions you know pretty self-explanatory You know, 40% market share. you know 40% market share Told you how we make money on that. told you how we make money on that This business is, you know, grows about 5% a year, in a normal world. this business is you know grows about 5% a year in a normal world Come out of COVID, inventory levels were so depressed because the biggest risk of this business are people that sit at home and get free money from the government. come out of covid inventory levels were so depressed because the biggest risk of this business are people that sit at home and get free money from the government People get plasma because they're using it to supplement their income, not because they like sitting in a chair for two hours to give, you know, have a needle in their arm. people get plasma because they're using it to supplement their income not because they like sitting in a chair for two hours to give you know have a needle in their arm Coming out of COVID, the inventory levels were low. You know, plasma companies were trying to build those inventory levels back up. Like anything else, they overcorrected. In about the fourth quarter of last year, we started to see plasma companies starting to cut their hours. They do not shut the centers because you have to get, it is a six-month process to get a center certified by the FDA to be selling plasma. What they did is, you know, if they were open seven days a week, now they are open five days a week. They have cut the weekend staff out. This business, you know, we have told the street that we expect it to be down 8%-10% this year. It is a good variable business. My revenues go down, my costs go down. Coming out of COVID, the inventory levels were low. coming out of covid the inventory levels were low You know, plasma companies were trying to build those inventory levels back up. you know plasma companies were trying to build those inventory levels back up Like anything else, they overcorrected. like anything else they overcorrected In about the fourth quarter of last year, we started to see plasma companies starting to cut their hours. in about the fourth quarter of last year we started to see plasma companies starting to cut their hours They do not shut the centers because you have to get, it is a six-month process to get a center certified by the FDA to be selling plasma. they do not shut the centers because you have to get it is a six-month process to get a center certified by the fda to be selling plasma What they did is, you know, if they were open seven days a week, now they are open five days a week. what they did is you know if they were open seven days a week now they are open five days a week They have cut the weekend staff out. they have cut the weekend staff out This business, you know, we have told the street that we expect it to be down 8%-10% this year. this business you know we have told the street that we expect it to be down 8%-10% this year It is a good variable business. it is a good variable business My revenues go down, my costs go down. my revenues go down my costs go down You know, still a nice margin, nice cash cow business. This will all abate. You know, plasma has a limited shelf life of it, but this will all abate over the next, you know, by the end of this year, first half of next year. This is, plasma by the numbers. Plasma, usually the first quarter is the weakest quarter because what happens? Tax refunds, right? People getting free money from the government. It usually builds throughout the rest of the year. It is, there's some seasonality with it when you're looking at the business and trying to compare year-over-year. We recently bought a company named Gamma Innovation. I'm really excited about this. We paid $60 million in cash and stock, structured it over four years, both the cash component and the stock vesting component of it. You know, still a nice margin, nice cash cow business. you know still a nice margin nice cash cow business This will all abate. this will all abate You know, plasma has a limited shelf life of it, but this will all abate over the next, you know, by the end of this year, first half of next year. you know plasma has a limited shelf life of it but this will all abate over the next you know by the end of this year first half of next year This is, plasma by the numbers. this is plasma by the numbers Plasma, usually the first quarter is the weakest quarter because what happens? plasma usually the first quarter is the weakest quarter because what happens Tax refunds, right? tax refunds right People getting free money from the government. people getting free money from the government It usually builds throughout the rest of the year. it usually builds throughout the rest of the year It is, there's some seasonality with it when you're looking at the business and trying to compare year- over- year. it is there's some seasonality with it when you're looking at the business and trying to compare year- over- year We recently bought a company named Gamma Innovation. we recently bought a company named gamma innovation I'm really excited about this. i'm really excited about this We paid $60 million in cash and stock, structured it over four years, both the cash component and the stock vesting component of it. we paid $60 million in cash and stock structured it over four years both the cash component and the stock vesting component of it We bought three software applications that were really built for the plasma industry. The TAM in the plasma market is about $100 million just on the payment side. We have 40% market share. It's, you know, that's kind of somewhat limited. The TAM on the patient affordability side, just on the payment side, is like over $500 million, and we're early days on that. This acquisition, by bringing in three more software applications, expands the TAM, our opportunity in plasma in general. The plasma industry is dominated from a software and hardware perspective by one company out of Canada named Haemonetics, and there really hasn't been a lot of development from them. There hasn't been a lot of, you know, disruption in the plasma space. We bought three software applications that were really built for the plasma industry. we bought three software applications that were really built for the plasma industry The TAM in the plasma market is about $100 million just on the payment side. the tam in the plasma market is about $100 million just on the payment side We have 40% market share. we have 40% market share It's, you know, that's kind of somewhat limited. it's you know that's kind of somewhat limited The TAM on the patient affordability side, just on the payment side, is like over $500 million, and we're early days on that. the tam on the patient affordability side just on the payment side is like over $500 million and we're early days on that This acquisition, by bringing in three more software applications, expands the TAM, our opportunity in plasma in general. this acquisition by bringing in three more software applications expands the tam our opportunity in plasma in general The plasma industry is dominated from a software and hardware perspective by one company out of Canada named Haemonetics, and there really hasn't been a lot of development from them. the plasma industry is dominated from a software and hardware perspective by one company out of canada named haemonetics and there really hasn't been a lot of development from them There hasn't been a lot of, you know, disruption in the plasma space. there hasn't been a lot of you know disruption in the plasma space But with these applications now, there are international hardware companies that are in the process of getting FDA approval for their machines to come to the U.S. They would like nothing more than to have an integrated software application that they could help sell into other plasma companies. We were in Poland two weeks ago. I wasn't, but my CEO and other individuals from the company were there. The receptivity on these products was extremely positive. We'll see how that develops going forward. Even without that, if I don't sell one, I'm already happy with this acquisition because it came with a guy who has a great development shop. He was formerly with Google, Citibank, and he came in and immediately recognized over $4 million-$5 million in cash savings from just improving our development activities or our development. But with these applications now, there are international hardware companies that are in the process of getting FDA approval for their machines to come to the U.S. but with these applications now there are international hardware companies that are in the process of getting fda approval for their machines to come to the u.s They would like nothing more than to have an integrated software application that they could help sell into other plasma companies. they would like nothing more than to have an integrated software application that they could help sell into other plasma companies We were in Poland two weeks ago. we were in poland two weeks ago I wasn't, but my CEO and other individuals from the company were there. i wasn't but my ceo and other individuals from the company were there The receptivity on these products was extremely positive. the receptivity on these products was extremely positive We'll see how that develops going forward. we'll see how that develops going forward Even without that, if I don't sell one, I'm already happy with this acquisition because it came with a guy who has a great development shop. even without that if i don't sell one i'm already happy with this acquisition because it came with a guy who has a great development shop He was formerly with Google, Citibank, and he came in and immediately recognized over $4 million-$5 million in cash savings from just improving our development activities or our development. he was formerly with google citibank and he came in and immediately recognized over $4 million-$5 million in cash savings from just improving our development activities or our development We told the street exiting the second quarter we will be on that $4 million-$5 million annual run rate in cash savings. Now, it will not all drop to the bottom line because I was capitalizing on a lot of those costs, but it will improve my cash flow. These are some of the other, I mentioned, you know, the payroll. I mentioned, you know, AAA for their gift card business and others. We have kind of these small other prepaid areas that we go after that are still paying people in cash or checks. Our main focus is in the healthcare payments. Every prepaid company has this probably same slide. This is a huge market opportunity. We told the street exiting the second quarter we will be on that $4 million-$5 million annual run rate in cash savings. we told the street exiting the second quarter we will be on that $4 million-$5 million annual run rate in cash savings Now, it will not all drop to the bottom line because I was capitalizing on a lot of those costs, but it will improve my cash flow. now, it will not all drop to the bottom line because i was capitalizing on a lot of those costs but it will improve my cash flow These are some of the other, I mentioned, you know, the payroll. these are some of the other i mentioned you know the payroll I mentioned, you know, AAA for their gift card business and others. i mentioned you know aaa for their gift card business and others We have kind of these small other prepaid areas that we go after that are still paying people in cash or checks. we have kind of these small other prepaid areas that we go after that are still paying people in cash or checks Our main focus is in the healthcare payments. our main focus is in the healthcare payments Every prepaid company has this probably same slide. every prepaid company has this probably same slide This is a huge market opportunity. this is a huge market opportunity And on the far right, you see all of the products that we have that we could sell if we wanted to go after some of these. I mean, I'll be very honest. I came from one of the largest retail prepaid companies in the world. We're not going into retail. It's a pay-to-play game. It's dominated by two companies, Blackhawk and InComm. You know, if you're small like us, then you find these little niches where you can make a difference, you can provide great service, and you can beat the competition based on innovation. Like I said, most of our stuff comes from the corporate-funded incentive and rebates, is what that area is called, with the healthcare. Some financial highlights. And on the far right, you see all of the products that we have that we could sell if we wanted to go after some of these. and on the far right you see all of the products that we have that we could sell if we wanted to go after some of these I mean, I'll be very honest. i mean i'll be very honest I came from one of the largest retail prepaid companies in the world. i came from one of the largest retail prepaid companies in the world We're not going into retail. we're not going into retail It's a pay-to-play game. it's a pay-to-play game It's dominated by two companies, Blackhawk and InComm. it's dominated by two companies blackhawk and incomm You know, if you're small like us, then you find these little niches where you can make a difference, you can provide great service, and you can beat the competition based on innovation. you know if you're small like us then you find these little niches where you can make a difference you can provide great service and you can beat the competition based on innovation Like I said, most of our stuff comes from the corporate-funded incentive and rebates, is what that area is called, with the healthcare. like i said most of our stuff comes from the corporate-funded incentive and rebates is what that area is called with the healthcare Some financial highlights. some financial highlights As I mentioned, if you look here on the second line, net income, we are profitable. You have to look at really, same period this year versus same period last year. So Q1 versus Q1, Q2 versus Q2, etc. And we do have, you know, benefit from a really nice, sponsorship deal, where we get, you know, interest income on the balances that we keep at the bank. You know, our depreciation amortization has been climbing, due to the investment, like I mentioned, in the patient affordability business, that capitalized software development. But if you, you know, go all the way down to the bottom, you'll see our adjusted EBITDA is growing. You'll see our adjusted EBITDA margins growing. You see our net income is growing and our net income margin is growing. As I mentioned, if you look here on the second line, net income, we are profitable. as i mentioned if you look here on the second line net income we are profitable You have to look at really, same period this year versus same period last year. you have to look at really same period this year versus same period last year So Q1 versus Q1, Q2 versus Q2, etc. And we do have, you know, benefit from a really nice, sponsorship deal, where we get, you know, interest income on the balances that we keep at the bank. so q1 versus q1 q2 versus q2 etc and we do have you know benefit from a really nice sponsorship deal where we get you know interest income on the balances that we keep at the bank You know, our depreciation amortization has been climbing, due to the investment, like I mentioned, in the patient affordability business, that capitalized software development. you know our depreciation amortization has been climbing due to the investment like i mentioned in the patient affordability business that capitalized software development But if you, you know, go all the way down to the bottom, you'll see our adjusted EBITDA is growing. but if you you know go all the way down to the bottom you'll see our adjusted ebitda is growing You'll see our adjusted EBITDA margins growing. you'll see our adjusted ebitda margins growing You see our net income is growing and our net income margin is growing. you see our net income is growing and our net income margin is growing I think it's a testament to the vision that Mark had, you know, five years ago when he started back into the patient affordability business, built out a team, invested the company's capital knowing that it wasn't gonna happen overnight. We're finally reaching a point where we're starting to see that operating leverage. We're covered by five companies. They all have buy or buy equivalent ratings on us. Their target price is anywhere from $6-$8. You know, there's some good analyst coverage here, some resources. If you go to our website, our investor relations website, you can download this presentation. It's very important because I put this in here. If you wanna know whatever you wanna know about the plasma industry, you can click on the top row here, those three areas. I think it's a testament to the vision that Mark had, you know, five years ago when he started back into the patient affordability business, built out a team, invested the company's capital knowing that it wasn't gonna happen overnight. i think it's a testament to the vision that mark had you know five years ago when he started back into the patient affordability business built out a team invested the company's capital knowing that it wasn't gonna happen overnight We're finally reaching a point where we're starting to see that operating leverage. we're finally reaching a point where we're starting to see that operating leverage We're covered by five companies. we're covered by five companies They all have buy or buy equivalent ratings on us. they all have buy or buy equivalent ratings on us Their target price is anywhere from $6-$8. their target price is anywhere from $6-$8 You know, there's some good analyst coverage here, some resources. you know there's some good analyst coverage here some resources If you go to our website, our investor relations website, you can download this presentation. if you go to our website our investor relations website you can download this presentation It's very important because I put this in here. it's very important because i put this in here If you wanna know whatever you wanna know about the plasma industry, you can click on the top row here, those three areas. if you wanna know whatever you wanna know about the plasma industry you can click on the top row here those three areas It'll tell you how many plasma centers there are. It'll tell you what plasma therapies are used, you know, what therapies use plasma, etc. The bottom section here, due to the complexity in the patient affordability business and copay, it's not as easy as I just told you. If you're interested, go do the research. You'll find out why PBMs are not good. You'll find out why maximizers are not good. You'll find out, you know, how complex and how inefficient our entire drug system is. People ask me, "Is this, you know, can you expand this outside the U.S.?" I'm like, "No, it doesn't exist outside the U.S. It's socialist medicine, and the government pays for most of everything. In the U.S., the government doesn't." By the way, and I did mention this, copay is only applicable to non-government health plans. It'll tell you how many plasma centers there are. it'll tell you how many plasma centers there are It'll tell you what plasma therapies are used, you know, what therapies use plasma, etc. The bottom section here, due to the complexity in the patient affordability business and copay, it's not as easy as I just told you. it'll tell you what plasma therapies are used you know what therapies use plasma etc the bottom section here due to the complexity in the patient affordability business and copay it's not as easy as i just told you If you're interested, go do the research. if you're interested go do the research You'll find out why PBMs are not good. you'll find out why pbms are not good You'll find out why maximizers are not good. you'll find out why maximizers are not good You'll find out, you know, how complex and how inefficient our entire drug system is. you'll find out you know how complex and how inefficient our entire drug system is People ask me, "Is this, you know, can you expand this outside the U.S.?" I'm like, "No, it doesn't exist outside the U.S. people ask me "is this you know can you expand this outside the u.s.?" i'm like "no it doesn't exist outside the u.s It's socialist medicine, and the government pays for most of everything. it's socialist medicine and the government pays for most of everything In the U.S., the government doesn't." By the way, and I did mention this, copay is only applicable to non-government health plans. in the u.s the government doesn't." by the way and i did mention this copay is only applicable to non-government health plans If you're on Medicare or Medicaid, you can't, you're not even associated. You can't even be a part of a copay program. This is the 170 million, roughly, individuals who aren't on government programs, which is unfortunate because I have parents who I would love to be able to subsidize their drug costs, but, you know, they're on Medicare. Unfortunately, they don't, they don't qualify. The leadership team I mentioned here are, you can look at these wonderful mug shots at your own leisure. Trust me when I say 90% of the people on this page either came out of the three areas: banking, payments, or healthcare, patient affordability. We have a really good group of independent directors. Dan Henry is an icon in the payments industry. He used to be the president of Euronet Worldwide, a public company. If you're on Medicare or Medicaid, you can't, you're not even associated. if you're on medicare or medicaid you can't you're not even associated You can't even be a part of a copay program. you can't even be a part of a copay program This is the 170 million, roughly, individuals who aren't on government programs, which is unfortunate because I have parents who I would love to be able to subsidize their drug costs, but, you know, they're on Medicare. this is the 170 million roughly individuals who aren't on government programs which is unfortunate because i have parents who i would love to be able to subsidize their drug costs but you know they're on medicare Unfortunately, they don't, they don't qualify. unfortunately they don't they don't qualify The leadership team I mentioned here are, you can look at these wonderful mug shots at your own leisure. the leadership team i mentioned here are you can look at these wonderful mug shots at your own leisure Trust me when I say 90% of the people on this page either came out of the three areas: banking, payments, or healthcare, patient affordability. trust me when i say 90% of the people on this page either came out of the three areas banking payments or healthcare patient affordability We have a really good group of independent directors. we have a really good group of independent directors Dan Henry is an icon in the payments industry. dan henry is an icon in the payments industry He used to be the president of Euronet Worldwide, a public company. he used to be the president of euronet worldwide a public company He then went on to be the CEO of Netspend, which is another prepaid company, and then went on to be the CEO of Green Dot. Great payment domain expertise. Dennis Triplett, he was at UMB Health, he was the CEO of the healthcare side of UMB Bank. He comes out of banking. Jeff Newman used to work with Dan at Euronet. He was the general counsel there for many years. Bruce Mina, our audit chair, has his own CPA firm. With that, I will turn it over for questions. He then went on to be the CEO of Netspend, which is another prepaid company, and then went on to be the CEO of Green Dot. he then went on to be the ceo of netspend which is another prepaid company and then went on to be the ceo of green dot Great payment domain expertise. great payment domain expertise Dennis Triplett, he was at UMB Health, he was the CEO of the healthcare side of UMB Bank. dennis triplett he was at umb health he was the ceo of the healthcare side of umb bank He comes out of banking. he comes out of banking Jeff Newman used to work with Dan at Euronet. jeff newman used to work with dan at euronet He was the general counsel there for many years. he was the general counsel there for many years Bruce Mina, our audit chair, has his own CPA firm. bruce mina our audit chair has his own cpa firm With that, I will turn it over for questions. with that i will turn it over for questions

Speaker 3: We're now sort of working, like something changed internally? We're now sort of working, like something changed internally? we're now sort of working like something changed internally

Speaker 1: Yeah. The question is, what happened in the pharma prepaid space is what we used to call it back in the early 2000s. The prepaid space is just that. We were the electronic or prepaid, the prepaid provider for hubs, like McKesson I mentioned. Before Paysign stepped into this market, the industry repaid claims using checks. That's all it is. Check, check, check, check. They would send a flat file to a check processor. They mail out checks. In steps Paysign. We knew that we were only getting a fraction of the opportunity for that business. In 2022, September 2022, the contract that we had with the big hub provider, we exited out of that contract and ended up actually going to other hub providers that did not have payment capabilities, saying, "Let's partner up. You do your hub stuff. Yeah. yeah The question is, what happened in the pharma prepaid space is what we used to call it back in the early 2000s. the question is what happened in the pharma prepaid space is what we used to call it back in the early 2000s The prepaid space is just that. the prepaid space is just that We were the electronic or prepaid, the prepaid provider for hubs, like McKesson I mentioned. we were the electronic or prepaid the prepaid provider for hubs like mckesson i mentioned Before Paysign stepped into this market, the industry repaid claims using checks. before paysign stepped into this market the industry repaid claims using checks That's all it is. that's all it is Check, check, check, check. check check check check They would send a flat file to a check processor. they would send a flat file to a check processor They mail out checks. they mail out checks In steps Paysign. in steps paysign We knew that we were only getting a fraction of the opportunity for that business. we knew that we were only getting a fraction of the opportunity for that business In 2022, September 2022, the contract that we had with the big hub provider, we exited out of that contract and ended up actually going to other hub providers that did not have payment capabilities, saying, "Let's partner up. in 2022 september 2022 the contract that we had with the big hub provider we exited out of that contract and ended up actually going to other hub providers that did not have payment capabilities saying "let's partner up You do your hub stuff. you do your hub stuff We'll do the payment stuff." And then, you know, here, here now we sit, with that. The other thing we did is we went direct to pharma. Before that, we didn't have any way to go direct to pharma. Now we've gone direct to pharma to do, you know, the bigger companies, payments for them. That's what happened. We'll do the payment stuff." And then, you know, here, here now we sit, with that. we'll do the payment stuff." and then you know here here now we sit with that The other thing we did is we went direct to pharma. the other thing we did is we went direct to pharma Before that, we didn't have any way to go direct to pharma. before that we didn't have any way to go direct to pharma Now we've gone direct to pharma to do, you know, the bigger companies, payments for them. now we've gone direct to pharma to do you know the bigger companies payments for them That's what happened. that's what happened Correct. Correct. correct Yep. That was a big change when we moved from just doing the electronic payments for one customer and little bitty pieces of the business to going, boom, now we can do payments for everybody. We can do payments for hubs, and they act as kind of like our indirect salespeople. They bring us their customers, and then we can go direct to pharma, which we could not do before. We do all their payments. I do check, I do ACH, I do virtual debit card. That is how I pay. Most of my payments are electronic, ACH and virtual debit card. I hate checks. I wish they would go away, but they are not. You have to take the good to get the bad, so. Yeah. Yep. yep That was a big change when we moved from just doing the electronic payments for one customer and little bitty pieces of the business to going, boom, now we can do payments for everybody. that was a big change when we moved from just doing the electronic payments for one customer and little bitty pieces of the business to going boom now we can do payments for everybody We can do payments for hubs, and they act as kind of like our indirect salespeople. we can do payments for hubs and they act as kind of like our indirect salespeople They bring us their customers, and then we can go direct to pharma, which we could not do before. they bring us their customers and then we can go direct to pharma which we could not do before We do all their payments. we do all their payments I do check, I do ACH, I do virtual debit card. That is how I pay. i do check i do ach i do virtual debit card. that is how i pay Most of my payments are electronic, ACH and virtual debit card. most of my payments are electronic ach and virtual debit card I hate checks. i hate checks I wish they would go away, but they are not. i wish they would go away but they are not You have to take the good to get the bad, so. you have to take the good to get the bad so Yeah. yeah The other important thing is we open booked the pharmaceutical companies. In the past, it was a big black box. They did all these services. Payments was one of them. We went in and said, "Listen, here's how much you're gonna pay per claim." Boom. You can figure out if you're getting an ROI by paying those monies to cover that copay. Totally different mentality. I'm getting the yank. Thank you very much for your time. I appreciate it. Please let me know if you have any questions. The other important thing is we open booked the pharmaceutical companies. the other important thing is we open booked the pharmaceutical companies In the past, it was a big black box. in the past it was a big black box They did all these services. they did all these services Payments was one of them. payments was one of them We went in and said, "Listen, here's how much you're gonna pay per claim." Boom. we went in and said "listen here's how much you're gonna pay per claim." boom You can figure out if you're getting an ROI by paying those monies to cover that copay. you can figure out if you're getting an roi by paying those monies to cover that copay Totally different mentality. totally different mentality I'm getting the yank. i'm getting the yank Thank you very much for your time. thank you very much for your time I appreciate it. i appreciate it Please let me know if you have any questions. please let me know if you have any questions

Speaker 3: Thank you very much. Yeah, appreciate it. Thank you very much. thank you very much Yeah, appreciate it. yeah appreciate it

Speaker 2: Folks, once again, the CFO of Paysign, Jeff Baker. On deck, everybody, it's ZenaTech coming up in just a couple of minutes. That will be followed by Sally's Apizza. ZenaTech is next. Folks, once again, the CFO of Paysign, Jeff Baker. folks once again the cfo of paysign jeff baker On deck, everybody, it's ZenaTech coming up in just a couple of minutes. on deck everybody it's zenatech coming up in just a couple of minutes That will be followed by Sally's Apizza. that will be followed by sally's apizza ZenaTech is next. zenatech is next