2020 Financial Guidance

• Due to the uncertainty surrounding the COVID-19 pandemic the company will refrain from providing 2020 financial guidance at this time, to allow for further evaluation.

2020 First Quarter Financial Results

Revenues for the quarter ended March 31, 2020 were $10,576,473, an increase of $3,319,183, or 46% compared to the quarter ended March 31, 2019, when revenues were $7,257,290. The increase in revenue was primarily due to an increase in the number of new corporate incentive prepaid card programs and growth within our existing programs.

Cost of revenues for the quarter ended March 31, 2020 was $4,855,520, an increase of $1,373,384 compared to the same period in 2019, when cost of revenues was $3,482,136. Cost of revenues was 46% and 48% of total revenues in the first quarter of 2020 and 2019, respectively. Our improvement to this ratio was due to a favorable client mix.

Selling, general and administrative expenses (“SG&A”) in the first quarter of 2020 were $3,827,324, an increase of $1,122,375 compared to the same period in 2019, when SG&A was $2,704,949. The increase in SG&A was primarily attributable to additions to technologies, sales, operations and leadership positions, and to a lesser extent, an increase in stock- based compensation.

Net income attributable to Paysign, Inc. in the first quarter of 2020 was $1,540,965 as compared to $871,671 for the same period in 2019, which represents an increase of $669,294, or 77%. The significant overall improvement in net income is attributable to the aforementioned factors.

Management Commentary

“We are very pleased with the company’s first quarter revenue and earnings, as our results surpassed our internal forecasts, as both plasma and patient affordability programs exhibited healthy year over year revenue growth. We did see some impact related to stay at home mandates and related safety measures in our plasma programs in late March, while our patient affordability programs continued to experience exceptional growth throughout the quarter,” said Mark Newcomer, Chief Executive Officer, Paysign. “From the outset of the COVID-19 pandemic, the Paysign team has worked to prioritize the safety of our employees and provide excellent service to our customers and cardholders. We continue to monitor developments in this unprecedented situation and are pressing forward with our key initiatives in support of Paysign’s long-term growth.”

“Gross Margin in the first quarter of 54.1% improved nicely compared to the same period in 2019, but also versus the 51.8% in quarter four,” stated Mark Attinger, Chief Financial Officer. “This was not only in line with our expectations, but is an important indicator of predictability, as we expect to return to 2019 Gross Margin levels.”

About Paysign, Inc.

Paysign, Inc., (NASDAQ: PAYS), is an experienced and trusted prepaid debit card payment solutions provider as well as an integrated payment processor that has managed millions of prepaid debit cards in its portfolio. Paysign conceptualizes, develops and manages payment solutions, prepaid card programs, and customized payment services. Paysign’s corporate incentive prepaid cards are changing the way corporations reward, motivate, and engage their current and potential customers, employees, and agents. Paysign’s customizable solutions offer significant cost savings while improving brand recognition and customer loyalty. For over 15 years healthcare companies, major pharmaceutical companies, multinationals, prestigious universities, and social media companies have relied on Paysign to provide state of the art prepaid payment programs tailored to their unique requirements. Paysign is a registered trademark of Paysign, Inc. in the United States and other countries. For more information visit us at paysign.com, or follow us on Facebook, Twitter, and LinkedIn.

Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and the company intends that such forward-looking statements be subject to the safe-harbor created thereby. All statements, other than statements of fact, included in this release, are forward-looking statements. Such forward-looking statements include, among others, the company’s belief in its ability to ensure continuity during the COVID-19 outbreak; that the company continues to see growth in our patient affordability solutions; that gross margins are important indicator of predictability; and that the company expects similar gross margins to 2019. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the inability to continue our current growth rate in future periods; identified material weaknesses in our internal control over financial reporting which could, if not remediated, adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner; that a downturn in the economy, including as a result of COVID-19, could reduce our customer base and demand for our products and services, which could have an adverse effect on our business, financial condition, profitability, and cash flows; operating in a highly regulated environment; failure by us or business partners to comply with applicable laws and regulations; changes in the laws, regulations, credit card association rules or other industry standards affecting our business; that a data security breach could expose us to liability and protracted and costly litigation; and other risk factors set forth in our Form 10-K for the year ended December 31, 2019. Except to the extent required by federal securities laws, the company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.

Paysign, Inc. Non-GAAP Measures

To supplement Paysign’s financial results presented on a GAAP basis, we use non-GAAP measures of net income that excludes the following cash and non-cash items – interest, taxes, stock-based compensation, amortization and depreciation. We believe these non-GAAP measures help investors better evaluate our past financial performance and potential future results. Non-GAAP measures should not be considered in isolation or as a substitute for comparable GAAP accounting and investors should read them in conjunction with the company’s financial statements prepared in accordance with GAAP. The non-GAAP measures of net income we use may be different from, and not directly comparable to, similarly titled measures used by other companies.

“EBITDA” is defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude stock-based compensation charges.

Adjusted EBITDA is not intended to represent cash flows from operations, operating income (loss) or net income (loss) as defined by U.S. GAAP as indicators of operating performances. Management cautions that amounts presented in accordance with Paysign’s definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate Adjusted EBITDA in the same manner.