Usio, Inc. Revenue Disclosure

Revenue Recognition: Revenue consists primarily of fees generated through the electronic processing of payment transactions and related services. Revenue is recognized during the period in which the transactions are processed or when the related services are performed. The Company complies with Accounting Standards Codification ("ASC") 606-10 and reports revenues at gross as a principal versus net as an agent. Although some of the Company's processing agreements vary with respect to specific credit risks, the Company has determined for each agreement it is acting in the principal role. Merchants may be charged for these processing services at a bundled rate based on a percentage of the dollar amount of each transaction and, in some instances, additional fees are charged for each transaction. Certain merchant customers are charged a flat fee per transaction, while others may also be charged miscellaneous fees, including fees for chargebacks or returns, monthly minimums, and other miscellaneous services. Revenues derived from electronic processing of credit, debit, and prepaid card transactions that are authorized and captured through third-party networks are reported gross of amounts paid to sponsor banks as well as interchange and assessments paid to credit card associations. Certain card distributors remit payment of fees earned 45 days after the end of the processing period. Prepaid card distributors have payment terms of 30 days following the end of the month. Sales taxes billed are reported directly as a liability to the taxing authority and are not included in revenue. Usio Output Solutions, Inc. provides bill preparation, presentment and mailing services. Revenue from Output Solutions is recognized when the related services are performed for printing and delivered to USPS for postage. We also earn revenues from interest and fees earned on certain assets underlying customer balances. Interest earned on assets directly related to our core business line operations are recorded in the revenue source underlying the associated customer balances. Customer balances held on which the Company earns interest revenues include balances from our ACH and complementary services, prepaid card services, and Output Solutions business lines.

 

		Year Ended December 31,
		2025				2024				$ Change				% Change
ACH and complementary service revenue		$	22,199,050			$	16,678,324			$	5,520,726				33	%
Credit card revenue			30,012,875				29,267,546				745,329				3	%
Prepaid card services revenue			11,004,704				14,080,650				(3,075,946	)			(22	)%
Output Solutions revenue			20,645,353				20,618,996				26,357				0	%
Interest - ACH and complementary services			745,252				789,717				(44,465	)			(6	)%
Interest - Prepaid card services			615,442				1,345,679				(730,237	)			(54	)%
Interest - Output Solutions			170,950				150,928				20,022				13	%
Total Revenues		$	85,393,626			$	82,931,840			$	2,461,786				3	%