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NATURE OF BUSINESS
12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF BUSINESS

Paybox Corp (“Paybox” or the “Company”) operates as a Software as a Service provider (“SaaS”), providing financial supply chain automation and workflow efficiencies within the Procure-to-Pay and Order-to-Cash processes. Specifically, Paybox’s global electronic invoice (“e-invoice”) management services automate complex manual business processes such as invoice validation, order matching, consolidation, dispute handling, and e-payment processing in a business-to-business transaction based “fee for services” business model.

 

On September 26, 2016, the Company changed its name from Direct Insite Corp. to Paybox Corp to align the corporate name and brand with the Company’s globally deployed Working Capital Management Platform, PAYBOX®.

 

The Company’s revenue comes from (i) recurring, on-going services that are billed monthly and (ii) non-recurring, professional services derived from the configuration of the Company’s software platform.

 

Throughout the year, the Company operated redundant data centers in Miami, Florida and Amsterdam, Netherlands.

 

As described in Note 9, the Company has four major customers (one of which had separate contracts with multiple companies) that accounted for 88.0% and 88.3% of the Company’s revenue for the years ended December 31, 2016 and 2015, respectively. Loss of any of these customers, or any of the separate contracts under a main customer, could have a material effect on the Company.

 

In November 2015, the Company was notified by HP Enterprise Services (“HPE”) that one of its clients, representing approximately 3.0% and 14.7% of our revenue for the years ended December 31, 2016 and 2015, respectively, was terminating its contract with HPE effective February 23, 2016. Despite efforts to negotiate a direct contractual agreement with this client, the client ultimately decided to terminate its use of the Company’s services, and accordingly, the Company has not recorded revenue from this client after February 2016. The Company was further notified by HPE in August 2016 that another of its clients, representing 4.5% and 6.3% of our revenue for the years ended December 31, 2016 and 2015, respectively, was terminating its contract with HPE effective August 15, 2016, and accordingly, the Company has not recorded revenue from this client after August 2016.

 

In February 2017, the Company was notified by International Business Machine Corporation (“IBM”) that IBM was terminating the larger of two agreements with the Company effective September 1, 2017. The agreement had been scheduled to expire on December 31, 2017, and IBM exercised its right under the agreement to terminate on 180 days advance notice. Approximately 35.1% and 31.3% of the Company’s revenue in 2016 and 2015, respectively, was attributable to this agreement. Although there can be no assurances, it is possible that the Company may continue to provide certain services in this agreement on a month-to-month basis following termination.

 

During 2016 and the early part of 2017, the Company has signed several contracts to provide its services to new customers. Management believes that our current cash balance along with cash generated from operations, will meet our liquidity needs for a minimum of the next twelve months from the filing of this annual report.