$PAYS

3PEA INTERNATIONAL, INC.

CIK:0001496443|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Total revenues	$ 28,252,071	$ 19,078,353	$ 56,290,495	$ 37,676,502
Cost of revenues	10,355,048	7,323,188	20,174,527	14,230,509
Gross profit	17,897,023	11,755,165	36,115,968	23,445,993
Operating expenses
Selling, general and administrative	8,546,278	8,197,461	17,460,932	15,598,220
Depreciation and amortization	2,339,829	2,120,097	4,975,985	3,921,100
Total operating expenses	10,886,107	10,317,558	22,436,917	19,519,320
Income from operations	7,010,916	1,437,607	13,679,051	3,926,673
Other income
Interest income, net	894,203	605,160	1,695,066	1,367,358
Income before income tax provision	7,905,119	2,042,767	15,374,117	5,294,031
Income tax provision	1,148,582	655,006	3,178,662	1,320,170
Net income	$ 6,756,537	$ 1,387,761	$ 12,195,455	$ 3,973,861
Net income per share
Basic	$ 0.12	$ 0.03	$ 0.22	$ 0.07
Diluted	$ 0.11	$ 0.02	$ 0.20	$ 0.07
Weighted average common shares
Basic	55,864,262	54,228,027	55,265,671	53,903,829
Diluted	61,975,531	57,872,318	61,388,853	56,312,252
Plasma Industry [Member]
Revenues
Total revenues	$ 13,040,540	$ 10,743,924	$ 24,789,151	$ 20,153,804
Pharma Industry [Member]
Revenues
Total revenues	14,649,133	7,753,906	30,328,585	16,372,559
Other Revenue [Member]
Revenues
Total revenues	$ 562,398	$ 580,523	$ 1,172,759	$ 1,150,139

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 12,195,455	$ 3,973,861
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	2,536,259	1,626,718
Depreciation and amortization	4,975,985	3,921,100
Noncash lease expense	416,029	219,837
Change in fair value of contingent consideration	(990,000)	0
Deferred income taxes, net	359,127	674,512
Changes in operating assets and liabilities:
Accounts receivable	(30,975,966)	(8,691,128)
Other receivables	581,301	554,107
Prepaid expenses and other current assets	(1,076,944)	(164,323)
Accounts payable and accrued liabilities	27,369,982	5,276,312
Operating lease liability	(315,097)	(206,354)
Customer card funding	5,004,943	(9,576,918)
Net cash provided by (used in) operating activities	20,081,074	(2,392,276)
Cash flows from investing activities:
Purchase of fixed assets	(369,687)	(164,913)
Capitalization of internally developed software	(2,741,174)	(4,067,947)
Purchase of intangible assets	(407,246)	(20,675)
Net assets acquired in business combination	0	(2,000,000)
Net cash used in investing activities	(3,518,107)	(6,253,535)
Cash flows from financing activities:
Proceeds from exercise of options	125,400	591,534
Payments on other liability	(2,000,000)	0
Repurchase of shares for tax withholding	(3,190,539)	0
Repurchase of common stock	0	(375,786)
Net cash (used in) provided by financing activities	(5,065,139)	215,748
Net change in cash and restricted cash	11,497,828	(8,430,063)
Cash and restricted cash, beginning of period	164,984,711	122,343,186
Cash and restricted cash, end of period	176,482,539	113,913,123
Cash and restricted cash reconciliation:
Cash	27,372,858	11,753,184
Restricted cash	149,109,681	102,159,939
Total cash and restricted cash	176,482,539	113,913,123
Supplemental cash flow information:
Non-cash assets acquired in business combination	0	13,558,637
Non-cash liabilities incurred in business combination	0	(7,608,637)
Common stock issued in business combination	0	(5,950,000)
Cash paid for taxes	$ 1,979,355	$ 379,491

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash	$ 27,372,858	$ 21,067,651
Restricted cash	149,109,681	143,917,060
Accounts receivable, net	103,167,960	72,191,994
Other receivables	345,228	926,529
Prepaid expenses and other current assets	3,030,661	1,953,717
Total current assets	283,026,388	240,056,951
Fixed assets, net	1,948,202	1,897,892
Intangible assets, net	20,838,025	22,346,213
Goodwill	4,487,637	4,487,637
Operating lease right-of-use asset	5,313,512	5,729,541
Deferred tax asset, net	1,375,842	1,734,969
Total assets	316,989,606	276,253,203
Current liabilities
Accounts payable and accrued liabilities	97,675,379	70,542,803
Customer card funding	148,196,011	143,191,068
Operating lease liability, current portion	890,846	751,503
Other liabilities, current portion	1,686,507	1,863,116
Total current liabilities	248,448,743	216,348,490
Operating lease liability, long-term portion	4,819,451	5,273,891
Other liabilities, long-term portion	3,564,666	6,140,651
Total liabilities	256,832,860	227,763,032
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock: $0.001 par value; 25,000,000 shares authorized; none issued and outstanding	0	0
Common stock; $0.001 par value; 150,000,000 shares authorized, 57,902,271 and 56,021,596 issued at June 30, 2026 and December 31, 2025, respectively	57,902	56,022
Additional paid-in capital	38,163,032	35,503,253
Treasury stock at cost, 1,459,689 and 934,708 shares, respectively	(5,339,254)	(2,148,715)
Retained earnings	27,275,066	15,079,611
Total stockholders’ equity	60,156,746	48,490,171
Total liabilities and stockholders’ equity	$ 316,989,606	$ 276,253,203