Group 1: Earnings Performance - FlexShopper Inc. reported a quarterly loss of $0.13 per share, better than the Zacks Consensus Estimate of a loss of $0.15, and improved from a loss of $0.22 per share a year ago, representing an earnings surprise of 13.33% [1] - The company posted revenues of $31.76 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.45%, and compared to year-ago revenues of $24.53 million [2] - Over the last four quarters, FlexShopper has exceeded consensus EPS estimates four times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - FlexShopper shares have declined approximately 37.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.07 on revenues of $41.32 million, and for the current fiscal year at -$0.08 on revenues of $158.02 million [7] - The Zacks Rank for FlexShopper is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Financial - Miscellaneous Services industry, to which FlexShopper belongs, is currently in the top 42% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

BOCA RATON, Fla., Aug. 06, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY) ("FlexShopper"), a leading national online lease-to-own ("LTO") retailer and payment solution provider for underserved consumers, today announced its financial results for the quarter ended June 30, 2024. Russ Heiser, Jr, Chief Executive Officer, stated, "Our second-quarter and year-to-date results are encouraging as the long-term growth strategies we are pursuing begin to take hold. Over the past two quarters we have focus ...

FlexShopper Inc. (FPAY) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this company would post a loss of $0.26 per share when it actually produced a loss of $0.03, delivering a surprise of 88.46%. Over the last four quarters, the company has surpasse ...

[Financial Results Overview](index=1&type=section&id=Financial%20Results%20Overview) [Q1 2024 Performance Highlights](index=1&type=section&id=Q1%202024%20Performance%20Highlights) FlexShopper's Q1 2024 saw a 10.1% revenue increase, 30.9% gross profit rise, and Adjusted EBITDA up $1.2 million, with core earnings growing 64.7% Q1 2024 vs. Q1 2023 Key Metrics | Metric | Q1 2024 (USD) | Q1 2023 (USD) | Change (USD) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Fundings | $26.0 million | $26.3 million | $(0.3) million | -1.1% | | Total Revenues | $33.9 million | $30.8 million | +$3.1 million | +10.1% | | Gross Profit | $17.8 million | $13.6 million | +$4.2 million | +30.9% | | Operating Income | $5.0 million | $4.2 million | +$0.8 million | +19.0% | | Adjusted EBITDA | $7.6 million | $6.4 million | +$1.2 million | +18.4% | | Core Earnings | $354 thousand | $215 thousand | +$139 thousand | +64.7% | | Net Loss Attributable to Common Stockholders | $(1.3) million | $(1.2) million | $(0.1) million | - | | Diluted Loss Per Share | $(0.06) | $(0.06) | $0.00 | 0.0% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 total revenues increased 10.1% to $33.9 million, with operating income rising 19.0% to $5.0 million, resulting in a stable net loss Q1 2024 Statement of Operations Summary (vs. Q1 2023) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Total Revenues | 33,944,873 | 30,785,775 | | Operating Income | 5,043,982 | 4,152,573 | | Interest Expense | 5,315,094 | 4,531,327 | | Net Loss | (214,179) | (230,215) | | Net Loss Attributable to Common Shareholders | (1,283,635) | (1,202,448) | | Basic and Diluted Loss per Common Share | (0.06) | (0.06) | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $162.6 million, liabilities to $133.4 million, with stockholders' equity remaining stable Balance Sheet Summary (as of March 31, 2024 vs. Dec 31, 2023) | Account | March 31, 2024 (USD) | December 31, 2023 (USD) | | :--- | :--- | :--- | | Total Current Assets | 123,571,777 | 117,434,627 | | **Total Assets** | **162,613,750** | **156,490,377** | | Total Current Liabilities | 9,021,198 | 12,134,118 | | **Total Liabilities** | **133,386,129** | **127,259,604** | | **Total Stockholders' Equity** | **29,227,621** | **29,230,773** | [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 operating activities used $(5.6) million cash, a reversal from prior year, with financing providing $9.1 million, leading to a $1.2 million net cash increase Q1 2024 Cash Flow Summary (vs. Q1 2023) | Cash Flow Activity | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Cash (Used in)/Provided by Operating Activities | (5,643,178) | 5,599,339 | | Net Cash Used in Investing Activities | (2,279,532) | (1,922,882) | | Net Cash Provided by Financing Activities | 9,103,330 | 19,721 | | **Increase in Cash** | **1,180,620** | **3,696,178** | | **Cash, End of Period** | **5,593,750** | **9,869,527** | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted EBITDA Reconciliation](index=5&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q1 2024 Adjusted EBITDA, a non-GAAP measure, increased 18.4% to $7.6 million, reflecting adjustments to net loss for non-operating items - Adjusted EBITDA is defined as net income before interest, stock-based compensation, taxes, depreciation (other than leased merchandise), amortization, and one-time or non-recurring items[14](index=14&type=chunk) Adjusted EBITDA Reconciliation (Q1 2024 vs. Q1 2023) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Loss | (214,179) | (230,215) | | Adjustments (Taxes, Interest, D&A, etc.) | 7,790,773 | 6,629,693 | | **Adjusted EBITDA** | **7,576,594** | **6,399,478** | [Core Earnings Reconciliation](index=5&type=section&id=Core%20Earnings%20Reconciliation) Q1 2024 core earnings, a non-GAAP metric, grew 64.8% to $354,299, adjusting GAAP net loss for non-recurring items - Core earnings represents GAAP net loss adjusted for special items that are considered extraordinary, unusual, or non-recurring, or do not reflect core business activities[15](index=15&type=chunk) Core Earnings Reconciliation (Q1 2024 vs. Q1 2023) | Line Item | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | GAAP Net Loss | (214,179) | (230,215) | | Acquired intangible assets amortization | 442,334 | 442,334 | | Non recurring employment expenses | 126,144 | 2,826 | | **Core Earnings** | **354,299** | **214,945** | [Company Information and Disclosures](index=6&type=section&id=Company%20Information%20and%20Disclosures) [About FlexShopper](index=6&type=section&id=About%20FlexShopper) FlexShopper is a fintech firm providing lease-to-own solutions for durable goods to underserved consumers via its e-commerce marketplace and technology platforms - FlexShopper's business model focuses on two main areas: a direct-to-consumer LTO e-commerce marketplace and providing its LTO/loan technology platforms to other retail partners[19](index=19&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report includes a safe harbor provision, cautioning that forward-looking statements are subject to inherent risks and uncertainties that could alter actual results - The document contains forward-looking statements concerning business strategy, lease originations, and operating results, which are subject to risks outlined in the company's SEC filings (Form 10-K and 10-Q)[20](index=20&type=chunk)

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2024 financial statements show a 10.3% revenue increase to $33.9 million, a narrowed net loss, and growth in assets and liabilities [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $162.6 million and liabilities to $133.4 million as of March 31, 2024, driven by lease and loan receivables and a new credit agreement Key Balance Sheet Items (unaudited) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $5,593,750 | $4,413,130 | | Lease receivables, net | $49,316,032 | $44,795,090 | | Loan receivables at fair value | $39,457,230 | $35,794,290 | | Total assets | $162,613,750 | $156,490,377 | | **Liabilities & Equity** | | | | Total current liabilities | $9,021,198 | $12,134,118 | | Loan payable under credit agreement, net | $105,566,690 | $96,384,220 | | Total liabilities | $133,386,129 | $127,259,604 | | Total stockholders' equity | $29,227,621 | $29,230,773 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 total revenues increased 10.3% to $33.9 million, operating income grew 21.5% to $5.0 million, and net loss slightly narrowed Q1 2024 vs Q1 2023 Performance (unaudited) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $33,944,873 | $30,785,775 | | Operating income | $5,043,982 | $4,152,573 | | Net loss | ($214,179) | ($230,215) | | Net loss attributable to common shareholders | ($1,283,635) | ($1,202,448) | | Basic and diluted loss per common share | ($0.06) | ($0.06) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $5.6 million in Q1 2024, a shift from prior year, with financing activities providing $9.1 million Cash Flow Summary (unaudited) | Activity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | ($5,643,178) | $5,599,339 | | Net cash used in investing activities | ($2,279,532) | ($1,922,882) | | Net cash provided by financing activities | $9,103,330 | $19,721 | | **Increase in Cash** | **$1,180,620** | **$3,696,178** | [Notes To Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20To%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's LTO and loan business models, key accounting policies, a new 2024 credit agreement, and capital structure - The company operates three main business lines: lease-to-own (LTO) for durable goods, purchasing participation interests in consumer loans originated by a third-party bank, and directly originating consumer loans in 11 states[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - On March 27, 2024, the company entered into a new credit agreement allowing for borrowing up to **$150 million**, with a commitment termination date of April 1, 2026, and an interest rate of SOFR plus 9% per annum[105](index=105&type=chunk) - In Q1 2021, the company received a subpoena from the California Department of Financial Protection and Innovation (DFPI) regarding compliance with state consumer protection laws, and is cooperating with the inquiry[130](index=130&type=chunk) - On May 17, 2023, the Board authorized an 18-month share repurchase program for up to **$2 million** of common stock, with **5,418 shares** repurchased for a net cost of **$6,098** in Q1 2024[149](index=149&type=chunk)[150](index=150&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2024 revenue grew 10.3% due to higher lease and loan revenues, gross profit margin improved to 53%, and Adjusted EBITDA increased 18.4% [Executive Overview](index=30&type=section&id=Executive%20Overview) FlexShopper operates as a fintech company offering LTO and loan products via multiple channels, including a new Q1 2024 retail sales initiative - The company's business model includes lease-to-own (LTO) programs, a bank partner loan model, and a direct loan origination model in 11 states[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - In Q1 2024, FlexShopper launched a new retail sales initiative, selling items directly and making a profit on the product margin by offering alternative lender payment options on its website[156](index=156&type=chunk) - The company's bank partner for its loan model exited the high APR business in 2023, and FlexShopper is actively seeking a new bank partner[154](index=154&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2024 total revenues increased 10.3% to $33.9 million, driven by lease and loan revenue growth, despite higher operating expenses Q1 2024 vs Q1 2023 Operating Results | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $33,944,873 | $30,785,775 | 10.3% | | Gross profit | $17,825,979 | $13,606,360 | 31.0% | | Operating income | $5,043,982 | $4,152,573 | 21.5% | | Net loss | ($214,179) | ($230,215) | (7.0)% | - The provision for doubtful accounts as a percentage of gross lease billings decreased from **33%** in Q1 2023 to **27%** in Q1 2024[166](index=166&type=chunk) - Marketing expenses increased **60.6%** YoY as the company slowly increases spending to generate more originations after a slowdown in 2023[172](index=172&type=chunk) - Salaries and benefits expense rose **49.8%** YoY, largely due to the addition of employees for the state-licensed loan model[173](index=173&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company refinanced its credit facility on March 27, 2024, securing up to $150 million in borrowing capacity until April 2026 at SOFR plus 9% - The company refinanced its credit agreement on March 27, 2024, securing up to **$150 million** in borrowing capacity with a maturity extended to April 2026[193](index=193&type=chunk) - The interest rate on the new 2024 Credit Agreement is SOFR plus **9%** per annum, an improvement from the previous SOFR plus 11%[191](index=191&type=chunk)[193](index=193&type=chunk) - Management believes cash flow from operations and the new credit facility are sufficient to meet liquidity needs for at least the next 12 months[208](index=208&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable - The company states that this section is not applicable[212](index=212&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) A material weakness in internal control over financial reporting was identified regarding tax provision calculations, with remediation efforts underway - A material weakness in internal control over financial reporting was identified as of December 31, 2023, due to a lack of effective controls over the review of tax provision calculations[214](index=214&type=chunk) - Remediation efforts are underway, including changing the tax third-party service provider, with completion expected in Q2 2024[215](index=215&type=chunk) - As a result of the material weakness, the CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of March 31, 2024[215](index=215&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material pending legal proceedings - The company is not currently a party to any material pending legal proceedings[219](index=219&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are disclosed, referring to the Annual Report on Form 10-K for a discussion of important factors - The report refers to the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2023, for a discussion of important factors[220](index=220&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company continued its share repurchase program in Q1 2024, repurchasing 5,418 shares for $6,098 - A share repurchase program for up to **$2 million** was authorized on May 17, 2023, with an 18-month term[221](index=221&type=chunk) Share Repurchases in Q1 2024 | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | February 2024 | 4,318 | $1.10 | | March 2024 | 1,100 | $1.10 | | **Total Q1 2024** | **5,418** | **-** | [Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None reported[223](index=223&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - None reported[225](index=225&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the new Credit Agreement and officer certifications

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 001-37945 FLEXSHOPPER, INC. (Exact name of Registrant as specified in its charter) Delaware 20-5456087 (State or other jurisdicti ...

Low-priced stocks may be risky and volatile, but sometimes this high volatility can work in your favor. Hence, many aggressive investors may be on the search for the best $1 stock to buy.There are scores of stocks that trade at or near $1 per share, both on major U.S. equity markets like the New York Stock Exchange and Nasdaq Exchange, as well as in the over-the-counter market.Most of these names, though, make for questionable investment opportunities. This is due either to poor current fundamentals and/or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-37945 FLEXSHOPPER, INC. (Exact name of registrant as specified in its charter) | Delaware | 20-5456087 | | --- | --- | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number: 001-37945 FLEXSHOPPER, INC. (Exact name of registrant as specified in its charter) Delaware 20-5456087 (State or Other Jurisdictio ...

Financial Data and Key Metrics Changes - In Q1 2023, the company reported net revenue of over $30 million, gross profit of $13 million, and EBITDA exceeding $6 million [8] - Total funded originations increased by 29% year-over-year, with gross profit dollars rising by approximately $4.2 million year-over-year [17] - The gross profit margin improved by approximately 1,200 basis points from Q1 last year [17] - Operating expenses decreased by $283,000 year-over-year while revenue grew by 6% [26] Business Line Data and Key Metrics Changes - Gross profit from loans increased by a net $3.5 million, while gross profit from leases rose by $800,000 year-over-year [17] - Lease bad debt percentage improved by over 800 basis points from Q4 2022, contributing positively to profitability [20] - Lease net billing and fees were approximately $3 million lower year-over-year due to lower origination levels from proactive credit tightening [21] Market Data and Key Metrics Changes - The company observed a decline in early payoffs, attributed to customers having less available liquidity [9][37] - The typical customer experienced a personal recession due to inflation, but with inflation rates dropping, there is potential for more predictable payment rates [12] Company Strategy and Development Direction - The company is focusing on expanding its sales team to target small and medium businesses, complementing its enterprise sales efforts [16] - The Revolution storefront platform is onboarding new virtual locations, which is expected to accelerate growth in the portfolio size [10] - The company aims to adjust its pricing model to attract new customers as traditional providers tighten their underwriting [33] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding economic trends and the potential for improved credit profiles among applicants [13] - The company expects loss rates to continue improving over the next two quarters as they cycle through historical portfolios [9] - Management is focused on leveraging existing platforms to achieve growth efficiently while maintaining expense discipline [27] Other Important Information - The company is experiencing improved efficiency in operations, with a significant reduction in salary and benefit expenses year-over-year [26] - The company is developing a diverse revenue stream through its proprietary lease marketplace, bricks-and-mortar partnerships, and the Revolution loan platform [28] Q&A Session Summary Question: Changes in pricing model to attract new customers - Management indicated that adjustments are being made to attract customers who are currently being denied additional liquidity [33][35] Question: Marketing efficiency and seasonal factors - Management noted that marketing efficiency has improved, with higher conversion rates, and acknowledged the seasonal demand fluctuations [36] Question: Decline in early prepayments - Management attributed the decline in early prepayments to customers having less disposable income and changes in marketing frequency [37]