Paysign, Inc. Common Stock 17th Annual Midwest IDEAS Conference

Thank you very much, and thank you for joining us today, and thank you for your time. This presentation is obviously on the website as well as at the conference location. I am not going to go through this. This is the legal slide everybody has to have. You can read it at your leisure. About Paysign. I will cover the investment highlights and real quick before I get into this, a lot of people ask, are we a payments company? Are we a life sciences company? The answer is both. We have two main healthcare services business, plasma, which is where people can go and give the clear liquid that comes out of your blood. You can give twice a week, and you get paid roughly $60. And we are the processor, the program manager. We do everything for that business, and we do it in-house.

We do not rely on third parties. We have direct connects to Mastercard, Visa, Pulse, et cetera. The other part of our business is patient affordability, also known as pharmaceutical co-pay. It has been around for two decades. And our customers are the pharmaceutical companies who are paying the co-pay on behalf of individuals who are trying to get on therapy, stay on therapy. And we make money by charging for every transaction, whether it is a claim or if it is a call center or whatever. Those are our two primary businesses. And this year, we have done a really good job and continue to do a good job executing against our business plans. We have about 45.5% market share in the plasma business, which makes us the largest payment provider in the country. We built that over, since 2011 when we started with 0% market share.

Our pharma patient affordability business, that co-pay business, that business has been ramping dramatically. We got in that business about, reentered that business about seven years ago. And in the first half, revenues grew over 85%. Our 2025 revenue, $82 million, that is the fifth consecutive year of double top-line growth. And if you look down here at the bottom bullet point there, the guidance right now is to grow that to $114 million-$117 million. So another, call it 40-plus percent growth. Adjusted EBITDA last year was almost $20 million. That was up 107%. And this year, the guidance is $35 million-$38 million. So the business is performing well on both fronts. The plasma business, we have, like I said, a dominant market share, and benefiting from really nice economies of scale.

On the patient affordability business, we continue to add more programs and are really doing a good job expanding that business. We like to talk about how we really have one operational platform and two growing businesses. A lot of people don't realize, for example, in the patient affordability business, we pay claims via ACH. We pay claims with virtual debit card, which is, we use our platform that we use for the plasma side to make those virtual debit card payments. Then we pay checks as well. Our operations, call center, we're utilizing one facility, one center, and servicing both businesses. Basically, we have a fixed infrastructure platform with the processing rails, our contact center I mentioned. It's a highly regulatory business, both of them, whether we're dealing with the FDIC or PCI DSS or FDA for getting approval on our Apherian product, HIPAA compliant.

We have no shortage of regulators that like to come knock on our door. We have issuing bank partners, and we have fraud and dispute handling in-house. All these are very competitive barriers that we benefit from in two really niche businesses. The proof is, like I said, in 2025, revenue growth over 40% combined. SG&A growth only grew 31%, so less than our revenue. Then our operating margins expanded. You're going to continue to see that going forward for the foreseeable future. So our pharma patient affordability solutions business, for those who have had drugs given to them, and this is for the 160, roughly, million people that are on private insurance. What should happen is you go to the doctor, and you end up, doctor says you have colon cancer, and they prescribe you a drug.

You're going to walk out, you're going to go to the pharmacy, you're going to fill that drug, and your insurance company, UnitedHealthcare, Cigna, et cetera, they're going to pay 80%, and then you're going to get stuck with 20%. Most people can't afford a $200 a month co-pay. So in steps the pharmaceutical companies who have spent tens of millions of dollars getting this drug through phase I, phase II, phase III FDA approval, and they have a 15-year window to recoup that investment, that return on investment. You've seen all the commercials, SKYRIZI, DUPIXENT. If you ever watch TV, there are no shortage of pharmaceutical commercials. At the end of every one of those commercials, it'll say, "Ask AbbVie how we can help. Ask Johnson & Johnson how we can help." They're telling you they have a copay program. Why? Because they need you to get on therapy and stay on therapy, and they need to break down the financial barriers that would prevent that.

If you're not on therapy, they're not selling their drug. So what they do is they step in and they know, okay, Jeff, I have colon cancer. I'm going to the doctor. I'm having tests run. I'm having expensive drugs run. They know that eventually, I'm going to reach my maximum out-of-pocket, and that's going to be anywhere for most plans from $6,000, $7,000, $8,000 a year. Then my insurance company's going to pick up 100% of that. So in the interim, what's happening is that they're paying that 20%, they're getting 80%, they're willing to pay 20% because they know that they're going to get 100% eventually, and you're going to stay on therapy and everything's going to be good.

That's where we step in. These copay programs are there for financial assistance. Like I said, it's been around for over two decades. We win because we approach the industry differently. We have transparent pricing. The industry used to be set up on spread pricing, black box. Don't tell anybody what we're making. We have transparent pricing. If I'm going to do a pharmacy claim for you, I'm going to charge you $2.50. If I'm going to send a check and pay a medical benefit claim, I'm going to charge you $30 because I have to pay a check. It's very capital intensive. We have 24/7/365 service and support, and it's onshore. We sign contracts all day. You shall not use AI in your call center, and you shall not offshore because they want the white glove treatment.

They want people to be able to pick up the phone and talk to somebody in English or Spanish, and we do that. We save them money because we tell them, "Hey, you're paying for these services over here, and you don't need to be paying for those services. Stop wasting your money." We help them with that. We have dynamic business rules, which is a leading mitigator for maximizers. Maximizers are companies like PrudentRx or SaveOnSP, and they're trying to effectively steal money from the pharmaceutical companies. We saved our customers last year over $325 million. The year before that, it was $100 million. This year, we've already said we're already at over $300 million. It'll be over half a billion by the time the end of the year is over. That's money that our pharmaceutical customers would have had to pay to these maximizers.

Instead, they take those monies, and they can now use it to reinvest in their marketing programs, these commercials that we all get the benefit from. Nobody has the efficacy that we do. We can identify on first fill at 97% efficacy that that's a maximizer transaction, and that's definitely a benefit and a competitive advantage that we are benefiting from. The revenue model, it's set up in management fees. I get one-time setup fee, and then I get monthly management fees to run that program. I get paid on a per claim or the dynamic business rules. I get paid on a call center. There's nothing that I do not do that I don't get paid. I send an envelope, a letter out, I get paid for that letter. I have a person in the call center that picks up the phone.

I get paid for that per minute. We do have some seasonality in the business. It's higher in the first half of the year, typically, than it is the second half of the year because on January 1st, most insurance programs reset to zero. Everybody's paying claims until they reach their maximum out-of-pocket. As that happens throughout the year, you'll see our claim volume decline. If you look at my revenues, you'll say, "Jeff, your revenues have a decline in the second half of the year. What's going on?" We keep adding more and more programs, and the second half of the year is always a big time to add programs because everybody wants to be ready to go on January 1st of the next year.

Basically, what you are seeing is continued growth in the overall business that is driving us to have flattish revenues in the second half of the year instead of declining on the patient affordability business. I mentioned the maximizer and accumulator problem. I am not going to spend a lot of time due to the time here, but suffice to say, one thing I think it is worth noting is that this happens in real time that is completely agnostic to the patient. The patient does not realize this is going on, so we are not disrupting any of the payment flows or any of the processes between us and the pharmacy or the individual at the pharmacy who is getting their drug. This is the 97% efficacy I mentioned.

Suffice to say, people always ask, "Well, what is the ROI?" It is the highest dollar transaction business that we get or that actually is in the industry. But the ROI that these pharmaceutical companies are getting are well north of triple digits. So it is a win-win for everyone. This slide right here really tells you, it shows what would normally be the seasonality, and it shows you the year-over-year growth. But the best way to look at this business is on Q1 versus Q1 of last year. So Q1 2026, we did $15.7 million last year, $7.8 million. So almost double. Same thing in the second quarter, $14.6 million versus $7.9 million last year. We expect that growth based on our expectations and the guidance.