PAYSHIGH SIGNALOPERATIONAL10-K

PAYS has expanded into life science technology solutions with the Apherion brand while experiencing a revenue decline alongside substantially higher profitability.

The company is diversifying beyond traditional payment solutions into blood and plasma collection software, representing a strategic pivot that could reduce dependence on prepaid card markets. The removal of public sector business language suggests a narrowing focus on private sector opportunities, which may indicate either strategic repositioning or market share loss in government payments.

Comparing 2026-03-25 vs 2025-03-26View on EDGAR →
FINANCIAL ANALYSIS

Despite a 30% revenue decline, PAYS achieved substantially higher profitability with net income roughly doubling and gross profit meaningfully expanding. The company's balance sheet grew notably with total assets and stockholders' equity both increasing by more than 50%, suggesting either successful capital raising or significant retained earnings accumulation. The disconnect between declining revenue and expanding profitability indicates either improved operational efficiency, a shift toward higher-margin business lines, or potential one-time gains affecting the bottom line.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+97.9%
$3.8M→$7.6M

Net income grew 97.9% — bottom-line growth signals improving overall business health.

Stockholders Equity
Balance Sheet
+59.3%
$30.4M→$48.5M

Equity base grew 59.3% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Interest Expense
P&L
-59%
$77K→$32K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Total Assets
Balance Sheet
+54.3%
$179.0M→$276.3M

Asset base grew 54.3% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+53.3%
$148.6M→$227.8M

Liabilities grew 53.3% — significant increase in debt or obligations, assess impact on financial flexibility.

Gross Profit
P&L
+51.3%
$32.2M→$48.7M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Current Assets
Balance Sheet
+51.1%
$158.8M→$240.1M

Current assets grew 51.1% — improving short-term liquidity or inventory/receivables build.

Current Liabilities
Balance Sheet
+48.1%
$146.1M→$216.3M

Current liabilities surged 48.1% — significant near-term obligations; verify ability to meet short-term debt.

SG&A Expense
P&L
+31.2%
$25.2M→$33.0M

SG&A up 31.2% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Revenue
P&L
-30.4%
$34.7M→$24.1M

Revenue declined 30.4% — significant demand weakness or market share loss warrants investigation.

LANGUAGE CHANGES
NEW — 2026-03-25
PRIOR — 2025-03-26
ADDED
In addition to our payment solutions, we also offer life science technology solutions targeting blood and plasma collection organizations.
These software solutions are marketed under the Apherion brand, and we derive our revenue from licensing, hosting and consulting fees.
Our suite of product offerings includes solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, demand deposit accounts accessible with a debit card and software solutions targeting blood and plasma collection organizations.
Settlement income is recorded at the expiration of the card or card program and relates primarily to our corporate incentive programs.
Open-Loop Prepaid Card Market Forecast, 2025-2029, shows that open-loop prepaid growth continues to demonstrate strong performance in both the short-term and long-term.
The forecast is led by robust anticipated growth in the cash access market, which remains the largest open-loop segment.
Javelin predicts an 8% compound annual growth rate ( CAGR ) from 2025 through 2029, with total open-loop loads projected to reach approximately $450 billion by 2029.
The cash access category alone is expected to grow at a 9% CAGR, reaching $350 billion by 2026.
Consumers, both banked and unbanked, continue to increase their use of prepaid cards such as general purpose reloadable ("GPR") cards to conduct day-to-day financial transactions including paying bills, depositing checks, and receiving direct deposits.
According to Javelin's 2025 North American Payments Insights survey, the use of open-loop reloadable cards grew significantly from 20% in 2024 to 27% in 2025.
REMOVED
Public sector organizations can utilize our payment solutions to disburse public benefits or for internal payments.
Our suite of product offerings includes solutions for corporate rewards, prepaid gift cards, general purpose reloadable debit cards, employee incentives, consumer rebates, donor compensation, clinical trials, healthcare reimbursement payments and pharmaceutical payment assistance, and demand deposit accounts accessible with a debit card.
Settlement income is recorded at the expiration of the card program and relates predominantly to our pharma prepaid business which ended in 2022.
Open-Loop Prepaid Card Market Forecast, 2023-2027, shows that open-loop prepaid growth in the short-term is strong and forecasted to remain strong in the long-term.
This forecast is led by strong anticipated growth in the cash access market, the largest open-loop market.
Javelin predicts 8% annual growth from 2024 through 2027 with total open-loop loads projected to reach $836 billion by 2027.
Consumers, both banked and unbanked, use prepaid cards such as general purpose reloadable ( GPR ) cards, to conduct their day-to-day financial transactions such as paying bills, depositing checks, and receiving direct deposits.
According to the 2023 Federal Deposit Insurance Corporation (FDIC) National Survey of Unbanked and Underbanked Households, 5.9 percent of all households were using general purpose reloadable prepaid cards in 2023.
Use of prepaid cards was much higher among unbanked households (21.6 percent) than among banked households (5.2 percent).
households, were twice as likely to use prepaid cards or nonbank online payment services to conduct four or more types of transactions compared with banked households.
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