Paysign (PAYS) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We may be unable to grow our business in future periods, and if our revenue growth slows, or our revenues decline further, our business and financial conditions could be adversely affected
2. 02We operate in a highly regulated environment, and failure by us or business partners to comply with applicable laws and regulations could have an adverse effect on our business, financial position and results of operations
3. 03Changes in the laws, regulations, credit card association rules or other industry standards affecting our business may impose costly compliance burdens and negatively impact our business
4. 04A data security breach could expose us to liability and protracted and costly litigation, and could adversely affect our reputation and operating results
5. 05Security and privacy breaches of our electronic transactions may damage customer relations and inhibit our growth
6. 06The industry in which we compete is highly competitive, which could adversely affect our operating results and financial condition
7. 07We rely on relationships with card issuing banks to conduct our business, and our results of operations and financial position could be materially and adversely affected if we fail to maintain these relationships or we maintain them under new terms that are less favorable to us
8. 08We receive important services from third-party vendors, and replacing them could entail unexpected integration costs68% rewritten
9. 09Changes in credit card association or other network rules or standards set by Visa and MasterCard, or changes in card association and debit network fees or products or interchange rates, could adversely affect our business, financial position and results of operations
10. 10We may not be able to successfully manage our intellectual property or may be subject to infringement claims23% rewritten
11. 11The market for electronic commerce services is evolving and may not continue to develop or grow rapidly enough for us to maintain profitability
12. 12If we do not respond to rapid technological change or changes in industry standards, our products and services could become obsolete and we could lose our customers
13. 13Our ability to adapt our existing products and services to use artificial intelligence (“AI”) could adversely impact our business
14. 14Acquisitions and the integration of new businesses create risks and may affect operating results. Failure to successfully complete, manage or integrate strategic transactions can adversely affect our business, financial condition and results of operations
15. 15Changes in the Bank Secrecy Act and/or the USA PATRIOT Act could impede our ability to circulate cards that can be easily loaded or issued
16. 16Internal processing errors could result in our failing to appropriately reflect transactions in customer accounts79% rewritten
17. 17Our business is dependent on the efficient and uninterrupted operation of computer network systems and data centers
18. 18The soundness of other institutions and companies could adversely affect us
19. 19Additional equity or debt financing may be dilutive to existing stockholders or impose terms that are unfavorable to us or our existing stockholders
20. 20Global and regional economic conditions could harm our business
21. 21We depend on key personnel and may be harmed by the loss of their services or our inability to attract, develop, integrate, incentivize and retain qualified employeesNew

Risks Related to Ownership of Our Common Stock

1. 22Our stock price is volatile, and you may not be able to sell your shares at a price higher than what was paid29% rewritten
2. 23If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our common stock, the trading price of our common stock could decline
3. 24We do not intend to pay dividends for the foreseeable future
4. 25Concentration of ownership among our existing directors, executive officers and principal stockholders may prevent new investors from influencing significant corporate decisions
5. 26Our stock price could decline due to the large number of outstanding shares of our common stock eligible for future sale
6. 27We incur significant costs as a result of operating as a public company. We may not have sufficient personnel for our financial reporting responsibilities, which may result in the untimely close of our books and records and delays in the preparation of financial statements and related disclosures
7. 28Our operating results may fluctuate in the future, which could cause our stock price to decline