What changed in this filing

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Item 1. Business

2025-03-06 compared with 2024-02-26 · 49 added, 38 removed, 139 unchanged (38% of the section changed)

Asure is a provider of cloud-based Human Capital Management (“HCM”) software solutions delivered as Software-as-a-Service (“SaaS”) for small and medium-sized businesses (“SMBs”).

We offer human resources (“HR”) tools necessary to build a thriving workforce, providing the resources to stay compliant with dynamic federal, state, and local tax jurisdictions and their respective labor laws, freeing cash flows so SMBs can spend their financial capital on growing their businesses rather than administrative overhead that can impede growth.

Our solutions also provide new ways for employers to connect with and to differentiate themselves with their employees in order to enhance their relationships with their talent.

Asure’s HCM suite (“Asure HCM”) includes Payroll & Tax solutions, HR compliance and services, Time & Attendance software and data integrations that enable employers and their employees to enhance efficiencies and take advantage of value-added solutions, which we refer to as AsureMarketplace™.

Asure is a provider of cloud-based Human Capital Management (“HCM”) software solutions delivered as Software-as-a-Service (“SaaS”) to businesses of all sizes.

We offer human resources (“HR”) tools necessary to build a thriving workforce, provide the resources to stay compliant with dynamic federal, state, and local tax jurisdictions and their respective labor laws, freeing cash flows so these businesses can spend their financial capital on growing their businesses rather than administrative overhead that can impede growth.

Our solutions also provide new ways for employers to connect with their employees in order to enhance their relationships with their talent.

Asure’s HCM suite (“Asure HCM”) includes Payroll & Tax solutions, Recruiting, HR compliance and services, Time & Attendance software, Insurance and Benefits Administration, and data integrations that enable employers and their employees to enhance efficiencies and take advantage of value-added solutions, which we refer to as AsureMarketplace™.

AsureMarketplace™ automates interactions between our HCM systems with third-party providers to enhance efficiency, improve accuracy and to extend the range of services offered to employers and their employees.

Our approach to HR compliance services incorporates artificial intelligence technology to enhance scalability and efficiency while prioritizing client interactions.

We offer these services directly and indirectly through our network of Reseller Partners.

From recruitment to retirement, our solutions help more than 100,000 SMBs across the United States.

Our approach to HR compliance services leverages technology and on-demand content to enhance scalability and efficiency while prioritizing client interactions.

We offer our services directly and indirectly through our network of Reseller Partners.

From recruitment to retirement, our solutions help more than 100,000 clients across the United States.

Approximately 20% of our clients are direct with the remaining balance indirect, as they have contracts with Reseller Partners who white label our solutions.

We strive to be the most trusted HCM resource to SMBs.

We target less densely populated U.S.

metropolitan cities where fewer of our competitors have a presence.

We strive to be the most trusted HCM resource.

Our solutions solve three primary challenges that prevent businesses from growing:

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Our solutions reduce the administrative burden on employers and increase employee productivity while managing the employment lifecycle.

The Asure HCM suite includes five product lines:

Asure Payroll & Tax, Asure Tax Management Solutions, Asure Time & Attendance, Asure HR Compliance, and AsureMarketplace™.

The Asure HCM suite includes seven product lines:

Asure Payroll & Tax, Asure Tax Management Solutions, AsureRecruiting™, Asure HR Compliance, Asure Time & Attendance, Asure Insurance and Benefits Administration, and AsureMarketplace™.

We were incorporated in 1985 as a Delaware corporation and our principal executive offices are located at 405 Colorado Street, Suite 1800, Austin, Texas 78701.

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Reports and other information we file with the SEC may also be viewed at the SEC’s website at www.sec.gov.

Our solutions are primarily cloud-based and delivered as SaaS and HR services as well as professional services and hardware (time clocks and data collection devices).

Our solutions are primarily cloud-based and delivered as SaaS, technology-enabled HR services, and hardware (time clocks and data collection devices) as one-time purchases or a Hardware-as-a-Service (“HaaS”) offering.

Payroll and Tax.

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Features include payroll taxes driven by up-to-date federal, state, and local tax tables and filing in a timely and accurate manner;

adhering to annual filing requirements for Form W-2 and forms mandated by the Affordable Care Act;

adhering to annual filing requirements for Form W-2 and forms mandated by the Affordable Care Act (“ACA”);

general ledger integration;

managed garnishments and employee self-service.

Additionally, self-service tools empower employees to manage their payroll and personal data, including AsurePay, a payroll debit card that offers competitive banking features with free on-demand pay capabilities.

With our self-service tools, employees can access pay stubs, update direct deposit preferences, track earnings in real time, and manage their financial information efficiently.

Tax Management Solutions.

Asure provides innovative payroll tax processing software and service solutions for the payroll service industry, mid-market and large corporate employers.

Asure provides innovative payroll tax processing software and service solutions for the payroll service industry and corporate employers.

With several scalable software and service options, from traditional full- service outsourcing to SaaS solutions, the extensive product line offers companies the ability to select a payroll tax solution that suits their needs.

Asure’s Tax Management Solutions also support bulk filing and processing of Employee Retention Tax credits.

Human Resource Compliance.

Asure handles HR complexities that SMBs face, including employee self-service, applicant tracking, onboarding and compliance with federal, state and local regulations.

Asure handles HR complexities that businesses face, including talent management and compliance with federal, state, and local regulations.

Asure provides three core levels of HR services:

(i) HR support, which provides an on-demand HR resource library, phone and email support for any HR issues and compliance and policy updates;

(ii) Strategic HR, which provides more in-depth support for strategic HR decision making;

and (iii) Total HR, which provides a complete HR outsourcing solution.

(ii) Strategic HR, which includes all the capabilities of HR Support while also providing more in-depth support for strategic HR decision making.

This service is designed specifically for managers, helping them stay compliant with employment regulations and enhance their effectiveness in workforce planning, performance management, and compliance strategies;

and (iii) Total HR, which includes all the capabilities of Strategic HR while also acting as HR support for frontline employees.

This service provides a comprehensive HR outsourcing solution that assists managers in staying compliant and optimizing workforce management while ensuring employees have direct support for HR-related needs.

Time and Attendance.

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With our mobile solution, employees can punch in and out from remote locations, as geo-positioning verifies their physical coordinates.

Biometric time clocks, including facial recognition, reduce time theft and assists in the verification of the identities of workers.

Biometric time clocks, including facial recognition, reduce time theft and assist in the verification of the identities of workers.

Automated system notifications, real- time dashboards, and flexible configuration options all work to streamline operations.

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Asure Marketplace.

AsureMarketplace™ automates interactions between our HCM systems with third-party providers to enhance efficiency, improve accuracy, and extend the range of services offered to employers and their employees.

Asure has developed a large set of pre-built applications that businesses can connect with and has developed integrations with partners to exchange capabilities and data.

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Business applications can include income verification and earned wage access.

We are currently developing consumer applications and expect such applications to be a component of AsureMarketplace™ in the future.

AsureRecruiting TM is a robust talent acquisition solution that simplifies and optimizes the hiring process for employers.

The platform provides unlimited job postings, locations, users, and applicant storage.

Job postings are automatically submitted to major job boards, including Indeed, Google Jobs, ZipRecruiter, Monster, LinkedIn, Facebook, and local or regional boards.

AsureRecruiting TM includes automated interview scheduling, an AI-powered job ad writing tool, and a mobile-friendly career site.

Employers can track, score, and communicate with applicants efficiently.

Additionally, the platform offers U.S.-based support with multiple contact options, including click, chat, and call, and provides free training and onboarding for seamless implementation.

Insurance and Benefits Administration.

Asure Insurance and Benefits Administration provides employers with an end-to-end solution for managing employee benefits, including health insurance, retirement plans, and other employer-sponsored benefits.

Asure Insurance and Benefits Administration is a comprehensive solution that enables businesses to both purchase and manage their employee benefits seamlessly.

As a one-stop shop, Asure serves as a Broker of Record (“BOR”), allowing employers to procure health benefits directly while also streamlining benefits administration.

The solution simplifies benefits enrollment, eligibility tracking, regulatory compliance, and carrier integrations.

Employers can manage Affordable Care Act (ACA) reporting, COBRA administration, and other compliance obligations effortlessly.

By integrating purchasing and administration into a single platform, Asure reduces administrative burdens, improves accuracy, and enhances the employee experience with easy access to benefits and support.

PRODUCT DEVELOPMENT

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We seek to simultaneously allow organizations to improve their productivity while reducing the costs associated with those tasks.

We are particularly focused on developing product capabilities that involve the movement and reconciliation of money.

We plan to enhance our Treasury Management software position, which we expect to leverage macro trends in the payroll industry including same-day-pay, pay advances, and employee payments in the currency of their choice – including crypto currencies.

We believe these money movement capabilities will also create new product opportunities similar to stored value cards and an “Asure Wallet” which may allow us to hold and invest larger sums of payroll funds for a longer period of time.

We continually work to automate processes using Robotic Process Automation (“RPA”) by developing “bots” that perform repetitive tasks.

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There are generally two types of Reseller Partners:

regional payroll providers and SMB trusted advisors (CPA, regional banks, and benefit brokers).

regional payroll providers and trusted advisors (e.g., CPAs, regional banks, and benefit brokers).

Regional payroll providers typically focus on a specific geographic area or industry.

They have proven to be attractive alternatives for SMBs’ payroll and HCM needs versus national payroll companies that may not cater to the local needs of SMBs.

Since trusted advisors are relied on by entrepreneurs and executives at SMBs to advise on payroll and HR decisions, white labeling our solutions allows them to provide additional solutions directly to their clients.

They have proven to be attractive alternatives for companies’ payroll and HCM needs.

Since trusted advisors are relied on by entrepreneurs and executives to advise on payroll and HR decisions, white labeling our solutions allows them to provide additional solutions directly to their clients.

Our Reseller Partners are the primary source of our acquisitions.

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Referral Partners.

Referral Partners are typically trusted advisors (e.g., regional banks, CPAs, and benefit brokers) that provide us with SMB leads but do not resell our solutions.

Since SMBs rely on their trusted advisors to guide them in selecting payroll and HCM solutions, we have found this to be a fruitful source of leads.

Referral Partners are typically trusted advisors or referral agents that provide us with client leads but do not resell our solutions.

Since companies rely on their trusted advisors and agents to guide them in selecting payroll and HCM solutions, we have found this to be a fruitful source of leads.

Referral Partners provide qualified leads that convert to clients at a higher rate than non-referral leads.

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Many providers continue to deliver legacy enterprise software, but there is increased competition in the delivery of HCM cloud-based solutions by other SaaS providers.

Competitors in the HCM market tend to fluctuate, however, Asure’s main competitors are ADP, Paychex, UKG, Paylocity, Paycor, Paycom, Ceridian, isolved, and Gusto.

Primary competitors to Asure Time & Attendance include UKG, Paychex, ADP and Time Simplicity.

Primary competitors to our tax management solutions are Ceridian and ADP.

While Asure has the advantage of a flexible, easy to use, cloud-based SaaS-delivered solution that is affordable for SMBs and has a proven deployment methodology, Asure faces several competitive challenges:

Competitors in the HCM market tend to fluctuate and vary by product line.

However, Asure’s main competitors are ADP, Paychex, UKG, Paylocity, Paycor, Paycom, Ceridian, isolved, Gusto, and Time Simplicity.

While Asure has the advantage of a flexible, easy to use, cloud-based SaaS-delivered solution that is affordable and has a proven deployment methodology, Asure faces several competitive challenges:

• Vendors with face-to-face sales contact.

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Such state and federal laws include laws such as the California Consumer Privacy Act of 2018, as amended and the Illinois Biometric Information Privacy Act and rules and regulations promulgated under the Federal Trade Commission.

Other states, including Colorado (effective July 1, 2023), Connecticut (effective July 1, 2023), Delaware (effective January 1, 2025), Indiana, Iowa (effective January 1, 2025), Montana (effective October 1, 2024), New Jersey (effective January 15, 2025), Oregon (effective July 1, 2024), Tennessee (effective July 1, 2025), Texas (effective July 1, 2024), Utah (effective December 31, 2023), and Virginia (effective January 1, 2023) have recently enacted new data privacy laws.

Many other states where we operate have recently enacted new data privacy laws, and we expect other jurisdictions to adopt similar laws in the future.

These new laws track significant portions of existing laws but include differences that may or may not increase our compliance burden.

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Moreover, enforcement actions and investigations by regulatory authorities related to data security incidents and privacy violations continue to increase.

The future enactment of more restrictive laws, rules, or regulations and/or future enforcement actions or investigations could have a materially adverse impact on the Company through increased costs or restrictions on our businesses, and noncompliance could result in regulatory penalties and significant legal liability.

The future enactment of more restrictive laws, rules, or regulations and/or future enforcement actions or investigations could have a materially adverse impact on us through increased costs or restrictions on our businesses, and noncompliance could result in regulatory penalties and significant legal liability.

Failure to comply with data privacy laws and regulations could have a materially adverse effect on our reputation, results of operations, or financial condition;

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We are licensed as a payroll processor in jurisdictions requiring licensure of payroll processors.

We are licensed or are actively pursuing licensure as a money transmitter in jurisdictions that require payroll processors to be licensed under state money transmission laws.

We are licensed as a money transmitter in jurisdictions that require payroll processors to be licensed under state money transmission laws.

Due to the constantly evolving regulatory landscape, we continuously monitor state legislative developments and shifting interpretations of transmission laws, proactively seeking licensure where required.

Money transmission activities may be subject to anti-money laundering laws at the state and federal levels.

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the anti-money laundering and reporting provisions of The Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2000, which apply to money services businesses, and all related laws and regulations, including the requirement to verify customer identification and report suspicious activities to applicable authorities.

As part of our insurance brokerage solutions, we (and applicable employees) are licensed by the insurance regulators in each of the 50 states and the District of Columbia.

Many of our solutions assist clients in complying with certain U.S.

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Our Tax Management Solutions also support bulk filing and processing of Employee Retention Tax Credits, which is legislation that is part of the CARES Act.

Recent legislation makes it possible that the government could make changes to or revoke the ERTC program prior to its scheduled expiration during 2024 and 2025, which may impact future revenue and cash collections.

Recent legislation makes it possible that the government could make changes to or revoke the Employee Retention Tax Credit (“ERTC”) program prior to its scheduled expiration during 2024 and 2025, which may impact future cash collections.

We have registered Asure Software® as a federal trademark with the U.S.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business