Paysign Inc (PAYS)

[ebrie014]

Here's my summary of the CC - Lots of Positives:

- Dan Henry remains as Chairman and continues to be committed to PAYS even with new role as Greendot CEO
- Note the Auditors did not provide a qualified opinion on the financial results, numbers were accepted as reported, and SOX audit resulted in significant operational improvements internally (improved documentation, improved systems, and controls)
- While no guidance was provided; Q1 is expected to come in at $10.4-10.5M, representing a ~44% increase yoy; pharma cash loaded up 70% over last year; restricted cash up significantly ending the Q1 with 54-55M unrestricted and peaking in Feb with ~60M.
- Ended the year with 8 Pharma programs: Onboarded 7 new ones on top of the 3 they ended last year with and 2 ended; onboarded 2 new ones in Q1 but should bolster next Q's - large pipeline which they are currently in discussion with.
- Expect meaningful Pharma growth in 2020 where mix will further diversify to ~60% Plasma/5-10% Other/30% pharma
- Expect conversion rates to remain similar to 2019 but they did negotiate improved terms with their bank partners improving gross margins
- CAPEX spend expected to be close to the same as last year (3.2-3.3M) with 2020 expected in the range of $3.2-3.7M
-Have sensitized all worst-case scenarios and remain CF positive in all of them
- Despite Covid-19 situation, both Pharma and Plasma are quite countercyclical with no meaningful change in plasma volumes to date (and if anything with plasma being touted as a cure and more people out of work it could result in an increase later on but TBD/ Pharma has continued to grow despite the Virus)

This was helpful in providing improved transparency to the analyst and retail investor commmunity alike and will show that the large cdrop in stock price was unwarranted given their continued growth (at a time when everyone else is reporting negative growth rates!).

E.