FlexShopper, Inc. (NASDAQ:FPAY) Q4 2021 Earnings Conference Call March 31, 2022 9:00 AM ET Company Participants Jeremy Hellman - The Equity Group Rich House - Chief Executive Officer Russ Heiser - Chief Financial Officer Conference Call Participants Scott Buck - H.C. Wainwright Operator Greetings and welcome to the FlexShopper Fourth Quarter and Fiscal Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operat ...

Financial Performance - Total revenues for the year ended December 31, 2021, were $125,426,756, an increase of 23.0% compared to $102,084,514 in 2020[186] - Net income attributable to common and Series 1 Convertible Preferred shareholders for 2021 was $833,675, a significant improvement from a net loss of $3,492,096 in 2020[186] - Operating income for 2021 was $7,364,819, compared to $4,625,715 in 2020, reflecting a 59.7% increase[186] - Net income for the year ended December 31, 2021, was $3,272,774, compared to a net loss of $339,896 for the year ended December 31, 2020[191] - The company reported a basic and diluted income per common share of $0.04 for 2021, compared to a loss of $0.17 per share in 2020[186] Assets and Liabilities - Total assets increased to $84,812,056 as of December 31, 2021, up from $68,249,379 in 2020, representing a growth of 24.3%[184] - Current liabilities decreased to $12,586,724 in 2021 from $17,067,745 in 2020, a reduction of 26.5%[184] - Accounts receivable increased to $57,602,269 as of December 31, 2021, from $32,171,255 as of December 31, 2020, with an allowance for doubtful accounts of $27,703,278[199] - Total stockholders' equity increased to $16,143,619 as of December 31, 2021, from $11,154,046 as of December 31, 2020[188] Cash Flow and Operating Activities - The company’s cash position decreased to $5,094,642 in 2021 from $8,541,232 in 2020, a decline of 40.5%[184] - Net cash used in operating activities for the year ended December 31, 2021, was $(11,256,031), compared to $(5,207,547) in 2020[191] - Cash at the end of the period decreased to $5,094,642 as of December 31, 2021, from $8,541,232 at the end of 2020[191] Revenue Sources - Lease revenues and fees, net, for 2021 were $118,355,184, up from $96,939,767 in 2020, marking a 22.0% increase[186] - Lease billings and accruals increased to $158,844,724 in 2021 from $128,870,481 in 2020, representing a growth of approximately 23.3%[202] - Lease revenues and fees rose to $118,355,184 in 2021, up from $96,939,767 in 2020, marking an increase of about 22.1%[202] Expenses - Marketing expenses rose to $9,129,062 in 2021, compared to $5,880,063 in 2020, an increase of 55.5%[186] - Depreciation and impairment of lease merchandise for 2021 was $73,616,293, compared to $63,308,210 in 2020[191] - Total operating and finance lease expenses amounted to $401,463 in 2021, compared to $433,654 in 2020, reflecting a decrease of about 7.4%[230] Debt and Financing - Proceeds from loan payable under credit agreement for 2021 were $19,850,000, compared to $15,033,000 in 2020[191] - The outstanding balance under the Credit Agreement increased from $37,195,696 in 2020 to $50,475,000 in 2021, an increase of approximately 35.6%[247] - Interest expense under the Credit Agreement rose to $4,323,830 in 2021 from $3,192,019 in 2020, an increase of about 35.4%[247] Stock and Equity - The Company raised gross proceeds of $20.0 million from the sale of 20,000 shares of Series 2 Convertible Preferred Stock, with an additional $1.95 million from 1,952 shares sold to another investor[251] - As of December 31, 2021, the Company had outstanding warrants exercisable for 2,255,184 shares of common stock at an exercise price of $1.25 per share[261] - The number of outstanding stock options increased from 2,595,700 at the beginning of 2021 to 3,080,904 by the end of 2021, reflecting a growth of approximately 18.6%[268] Tax and Deferred Tax - The effective tax rate for the year ended December 31, 2021 was impacted by a valuation allowance against net deferred tax assets, with total income tax expense recorded at $785,310 compared to $663,050 in 2020[273] - The total gross deferred tax assets as of December 31, 2021 were $11,923,332, with a valuation allowance of $12,418,498, resulting in a net deferred tax liability of $(495,166)[271] Other Financial Metrics - The provision for bad debt for the year ended December 31, 2021, was $40,489,540, up from $31,930,714 in 2020[199] - The company recognized a gain of $1,931,825 from the forgiveness of a Paycheck Protection Program loan in 2021[284] - The federal net operating loss carryforwards available to offset future income as of December 31, 2021 amounted to approximately $56,375,431[272]

Financial Data and Key Metrics Changes - Year-over-year revenue increased by 25% and EBITDA more than doubled, showing strong topline growth and improved bottom line profitability [4] - Gross margin expanded to 41% from 36% in the same quarter last year, primarily due to a reduction in early payoffs [10][18] - Net lease merchandise balance at the end of the third quarter was $33.3 million, up 7.8% from $30.7 million the prior year [12] Business Line Data and Key Metrics Changes - Originations decreased by almost 30% year-over-year due to the impact of stimulus programs on demand, but year-to-date originations are still up compared to last year [9] - Marketing expense was $1.8 million in the third quarter, a slight increase from $1.7 million in the same quarter of 2020 [12] Market Data and Key Metrics Changes - The company noted that the demand for rent-to-own services was artificially suppressed due to stimulus payments, but this trend is beginning to diminish as the fourth quarter progresses [5][11] - The company is optimistic about the normalization of operations for retail partners as COVID rates decline, which is expected to increase throughput [4] Company Strategy and Development Direction - The company continues to emphasize core priorities: underwriting, liquidity, and distribution, while maintaining a disciplined approach to marketing investments based on internal rate of return [15][16] - The company has signed two additional retail partners, which are expected to drive growth in the fourth quarter and into 2022 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming holiday shopping season, indicating that conditions in the industry appear to be normalizing [14] - The company has not experienced significant supply chain issues in its primary category of consumer electronics, which positions it well for the holiday season [14][23] Other Important Information - The company is seeing a return to more normal customer behavior regarding early payoffs, which is favorable for earnings moving forward [5][10] - Average customer acquisition cost for the trailing 12 months was $96, which remains sustainable for returns on capital [13] Q&A Session Summary Question: Impact of store closures on originations - Management indicated that originations were approximately 20% less than forecasted due to COVID-related store closures [17] Question: Improvement in gross margin expectations - The increase in gross margin was primarily driven by a reduction in early payoffs, with expectations for margins to return to the high 30s in the long term [18] Question: Year-over-year decline in originations by product group - The decline in originations was broad across all categories, with management noting a recent pickup in demand in the fourth quarter [19] Question: Marketing spend expectations for the fourth quarter - Marketing spend is expected to be similar to the previous year, aligning with the current demand levels [20] Question: Competition from buy now, pay later services - Management clarified that while competition has increased in online marketing, buy now, pay later services operate in a different market segment and are not direct competitors [22] Question: Supply chain issues and their impact - Management reported no significant supply chain issues affecting their business, particularly in consumer electronics [23] Question: Impact of inflation on the business - Management believes inflation could be neutral or even favorable, as it may lead to higher prices, but they remain cautious about potential affordability issues [24]

Investor Presentation Nov 2021 Safe Harbor Statement & Use of Non-GAAP Information Forward Looking Statements This presentation includes forward looking statements that are made pursuant to the "safe harbor" provisions of the private securities litigation reform act of 1995 Forward looking statements reflect our current views with respect to future events and involve inherent risks and uncertainties which could cause actual results to differ materially from our historical experience and present expectations ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents FlexShopper, Inc.'s unaudited consolidated financial statements for Q3 and nine months ended September 30, 2021, covering balance sheets, operations, cash flows, and notes [Consolidated Balance Sheets](index=4&type=section&id=FLEXSHOPPER%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) As of September 30, 2021, FlexShopper's total assets decreased to $64.6 million from $68.2 million, while total liabilities decreased to $49.3 million from $57.1 million, leading to an increase in total stockholders' equity to $15.2 million from $11.2 million Consolidated Balance Sheet Highlights (unaudited) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $3,147,926 | $8,541,232 | | Accounts receivable, net | $19,651,250 | $10,032,714 | | Lease merchandise, net | $33,332,854 | $42,822,340 | | **Total Assets** | **$64,555,540** | **$68,249,379** | | **Liabilities & Equity** | | | | Total current liabilities | $12,387,089 | $17,067,745 | | Loan payable under credit agreement | $34,205,693 | $37,134,009 | | **Total Liabilities** | **$49,319,353** | **$57,095,333** | | **Total Stockholders' Equity** | **$15,236,187** | **$11,154,046** | [Consolidated Statements of Operations](index=5&type=section&id=FLEXSHOPPER%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q3 2021, total revenues increased 25.6% to $30.9 million, with net income rising significantly to $1.7 million; for the nine months, revenues grew 27.6% to $94.3 million, and net income reached $2.6 million, boosted by a $1.9 million gain on debt extinguishment Key Operating Results (unaudited) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $30,860,935 | $24,570,064 | $94,333,158 | $73,942,941 | | Operating Income | $3,865,869 | $1,240,696 | $6,477,116 | $3,293,066 | | Net Income | $1,696,023 | $289,360 | $2,639,454 | $78,983 | | Diluted EPS | $0.05 | $(0.02) | $0.03 | $(0.12) | [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=FLEXSHOPPER%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS%27%20EQUITY) For the nine months ended September 30, 2021, total stockholders' equity increased from $11.2 million to $15.2 million, driven by net income and stock-based compensation expenses - Total stockholders' equity grew to **$15,236,187** as of September 30, 2021, up from **$11,154,046** at the beginning of the year[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=FLEXSHOPPER%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the nine months ended September 30, 2021, net cash provided by operating activities was $1.2 million, while investing and financing activities used $3.5 million and $3.1 million respectively, resulting in a $5.4 million decrease in cash Cash Flow Summary (Nine Months Ended Sep 30, 2021) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,159,828 | | Net cash used in investing activities | $(3,459,424) | | Net cash used in financing activities | $(3,093,710) | | **Decrease in Cash** | **$(5,393,306)** | [Notes To Consolidated Financial Statements](index=10&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, LTO business model, revenue recognition, debt, capital structure, and PPP loan forgiveness - The company's business involves providing durable goods to consumers on a lease-to-own (LTO) basis through e-commerce sites, with revenue recognized as operating lease income[24](index=24&type=chunk)[27](index=27&type=chunk) - On June 21, 2021, the company's **$1.914 million** Paycheck Protection Program (PPP) loan was forgiven, resulting in a recognized gain of **$1,931,825**[104](index=104&type=chunk) - The company is subject to a regulatory inquiry from the California Department of Financial Protection and Innovation (DFPI) regarding compliance with state consumer protection laws[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, revenue growth, key metrics, operational results, liquidity, capital resources, COVID-19 impact, and critical accounting policies [Executive Overview](index=30&type=section&id=Executive%20Overview) FlexShopper operates a lease-to-own (LTO) business model, providing durable goods to consumers through its direct-to-consumer website, a patent-pending LTO payment method for third-party e-commerce sites, and in-store terminals - FlexShopper's business model is centered on providing durable goods to consumers on a lease-to-own (LTO) basis[108](index=108&type=chunk) - The company's sales channels include the FlexShopper.com marketplace, an LTO payment method for e-commerce checkouts, and in-store LTO solutions for retail partners[108](index=108&type=chunk) [Key Performance Metrics](index=32&type=section&id=Key%20Performance%20Metrics) The company's key performance metrics showed significant improvement, with gross profit and Adjusted EBITDA increasing substantially for both Q3 and the nine-month period of 2021 compared to the prior year Q3 2021 vs Q3 2020 Performance Metrics | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Gross Profit | $12,688,960 | $8,919,538 | 42.3% | | Adjusted EBITDA | $4,815,632 | $2,100,746 | 129.2% | Nine Months 2021 vs 2020 Performance Metrics | Metric | Nine Months 2021 | Nine Months 2020 | % Change | | :--- | :--- | :--- | :--- | | Gross Profit | $34,031,579 | $24,275,340 | 40.2% | | Adjusted EBITDA | $9,390,413 | $6,163,023 | 52.4% | [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Strong revenue growth in Q3 and nine months 2021 from larger lease portfolio and higher origination values, despite fewer new leases; operating and net income significantly increased - For Q3 2021, total revenues grew **25.6%** to **$30.9 million**, and operating income more than doubled to **$3.9 million** from **$1.2 million** in Q3 2020[121](index=121&type=chunk) - For the nine months ended Sep 30, 2021, total revenues increased **27.6%** to **$94.3 million**, and operating income grew **96.7%** to **$6.5 million**[129](index=129&type=chunk) - Lease originations decreased in Q3 2021 to **30,407** from **47,317** in Q3 2020, partly due to the impact of government stimulus programs reducing demand for financing; however, the average origination value increased from **$480** to **$522**[121](index=121&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2021, the company had **$3.1 million** cash, with primary liquidity from a **$47.5 million** credit facility, sufficient for the next 12 months, following a **$1.9 million** PPP loan forgiveness - The company's cash position was **$3.1 million** as of September 30, 2021[143](index=143&type=chunk) - The primary credit facility allows for borrowing up to **$47.5 million**, with a commitment termination date of April 1, 2024; as of September 30, 2021, **$165,417** was available under the agreement[145](index=145&type=chunk)[148](index=148&type=chunk) - A **$1.9 million** PPP loan was forgiven in June 2021, resulting in a gain of **$1,931,825**[155](index=155&type=chunk) [Financial Impact of COVID-19 Pandemic](index=43&type=section&id=Financial%20Impact%20of%20COVID-19%20Pandemic) COVID-19 had mixed effects, initially reducing customer acquisition and tightening underwriting, but government stimulus improved payment patterns and early payoffs, with enhanced performance waning by Q3 2021 - The pandemic limited new customer acquisition from B2B retail channels due to store closures and operational disruptions[164](index=164&type=chunk) - Government stimulus programs reduced demand for financing products but positively impacted customer payment behavior, increasing early payoffs and improving asset performance[166](index=166&type=chunk) - By the end of Q3 2021, the company observed that the enhanced payment performance was starting to wane, indicating a potential return to a pre-COVID environment[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the company for this reporting period - The company has indicated that this section is not applicable[171](index=171&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[172](index=172&type=chunk) - No material changes were made to the company's internal controls over financial reporting during the most recent fiscal quarter[173](index=173&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any pending legal proceedings that are expected to have a material adverse effect on its business, financial condition, or results of operations - The company is not currently involved in any material legal proceedings[176](index=176&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2020 have been reported[177](index=177&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2021, the company issued warrants for 80,000 shares of common stock to XLR8 Capital Partners LLC as part of a consulting agreement, exempt from registration under Section 4(a)(2) of the Securities Act of 1933 - The company issued warrants for **80,000** shares of common stock to XLR8 Capital Partners LLC during Q3 2021[178](index=178&type=chunk) Warrants Granted in Q3 2021 | Grant Date | Warrants Granted | | :--- | :--- | | July 31, 2021 | 40,000 | | August 31, 2021 | 40,000 | | **Total** | **80,000** | [Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[180](index=180&type=chunk) [Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[181](index=181&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this period - None[182](index=182&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files [Signatures](index=47&type=section&id=Signatures) The report is duly signed by Richard House Jr., Chief Executive Officer, and H. Russell Heiser, Chief Financial Officer, on November 15, 2021

FlexShopper, Inc. (NASDAQ:FPAY) Q2 2021 Earnings Conference Call August 10, 2021 9:00 AM ET Company Participants Jeremy Hellman - IR Rich House - CEO Russ Heiser - CFO Conference Call Participants Scott Buck - H.C, Wainwright Michael Diana - Maxim Group, LLC Ed Woo - Ascendiant Capital Markets Operator Greetings and welcome to the FlexShopper LLC Second quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentatio ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Financial statements show decreased assets and liabilities, with revenue growth and net income turnaround from debt extinguishment [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased to $62.9 million, driven by reduced cash and lease merchandise, while liabilities decreased and equity rose Consolidated Balance Sheet Data (unaudited) | | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $56,975,114 | $62,265,367 | | **Total assets** | $62,916,829 | $68,249,379 | | **Total current liabilities** | $12,051,891 | $17,067,745 | | **Total liabilities** | $49,767,891 | $57,095,333 | | **Total stockholders' equity** | $13,148,937 | $11,154,046 | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Total revenues increased significantly for both three and six-month periods, resulting in net income from debt extinguishment gain Statement of Operations Highlights (unaudited) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | | | **2021** | **2020** | **2021** | **2020** | | **Total revenues** | $30,688,553 | $24,530,130 | $63,472,223 | $49,372,877 | | **Operating income** | $1,211,013 | $789,058 | $2,611,247 | $2,052,370 | | **Gain on extinguishment of debt** | $1,931,825 | - | $1,931,825 | - | | **Net income/(loss)** | $942,194 | $(262,062) | $943,431 | $(210,377) | | **Diluted EPS** | $0.01 | $(0.04) | $(0.01) | $(0.10) | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash used in operating activities significantly decreased, with cash also used in investing and financing, leading to cash reduction Cash Flow Summary (unaudited) | | For the six months ended June 30, | | :--- | :--- | :--- | | | **2021** | **2020** | | **Net cash used in/provided by operating activities** | $(34,366) | $5,794,941 | | **Net cash used in investing activities** | $(1,367,154) | $(1,399,360) | | **Net cash used in financing activities** | $(1,992,499) | $(1,413,044) | | **Increase/(Decrease) in cash** | $(3,394,019) | $2,982,537 | | **Cash, end of period** | $5,147,213 | $9,851,009 | [Notes To Consolidated Financial Statements](index=9&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) Notes detail LTO business, doubtful accounts, credit and related-party debt, capital structure, PPP loan forgiveness, and DFPI inquiry - The company operates a lease-to-own (LTO) model for durable goods, primarily through its e-commerce site, by approving consumers via a proprietary underwriting model[25](index=25&type=chunk) - The allowance for doubtful accounts is significant (**$31.9M** against **$45.1M** in receivables) because the company pursues all collection efforts before charging off accounts, during which time delinquent customers continue to accrue charges[29](index=29&type=chunk) - On June 21, 2021, the company's **$1.9 million** Paycheck Protection Program (PPP) loan was forgiven, resulting in a gain from debt extinguishment of **$1,931,825**[99](index=99&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[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth from lease originations improved gross profit margin, but operating expenses increased, with liquidity managed via credit facility [Key Performance Metrics](index=29&type=section&id=Key%20Performance%20Metrics) Gross profit and margin significantly improved for both Q2 and six-month periods, with modest Adjusted EBITDA growth on higher revenues Key Performance Metrics - Three Months Ended June 30 | | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **Gross billings** | $40,659,909 | $32,411,401 | 25.4% | | **Net revenues** | $30,688,553 | $24,530,130 | 25.1% | | **Gross profit** | $11,085,902 | $7,340,785 | 51.0% | | **Gross profit margin** | 36% | 30% | - | | **Adjusted EBITDA** | $2,132,891 | $2,002,075 | 6.5% | Key Performance Metrics - Six Months Ended June 30 | | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **Gross billings** | $82,276,928 | $64,937,075 | 26.7% | | **Net revenues** | $63,472,223 | $49,372,877 | 28.6% | | **Gross profit** | $21,342,619 | $15,355,802 | 39.0% | | **Gross profit margin** | 34% | 31% | - | | **Adjusted EBITDA** | $4,574,782 | $4,062,277 | 12.6% | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Revenue growth driven by increased lease originations, but operating expenses, especially marketing, rose significantly for both periods - In Q2 2021, the company originated **38,531** gross leases, up from **33,941** in Q2 2020, with the average origination value increasing from **$452** to **$516**[114](index=114&type=chunk) Operating Expense Changes (Q2 2021 vs Q2 2020) | Expense Category | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **Marketing** | $1,914,095 | $938,049 | 104.1% | | **Salaries and benefits** | $2,747,005 | $2,276,516 | 20.7% | | **Other operating expenses** | $5,213,789 | $3,337,162 | 56.2% | - For the six months ended June 30, 2021, the company originated **77,830** gross leases, an increase from **70,068** in the prior year period, with average origination value rising to **$524** from **$464**[123](index=123&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is primarily managed through an extended credit agreement and related-party notes, with management confident in future needs - The company's credit agreement commitment termination date was extended to April 1, 2024, with a borrowing limit of **$47.5 million**. As of June 30, 2021, **$988,192** was available[136](index=136&type=chunk)[139](index=139&type=chunk) - Maturity dates for related-party subordinated promissory notes totaling **$4.75 million** were extended to April 1, 2022[140](index=140&type=chunk)[141](index=141&type=chunk) - The company's **$1.9 million** PPP loan was forgiven in June 2021, resulting in a gain of **$1,931,825**[146](index=146&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the registrant - Not applicable[163](index=163&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2021[164](index=164&type=chunk) - No material changes to internal controls over financial reporting occurred during the most recently completed fiscal quarter[165](index=165&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any pending legal proceedings expected to have a material adverse effect - The company is not currently a party to any pending legal proceedings that it believes will have a material adverse effect on its business[168](index=168&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for 2020 - There have been no material changes to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2020[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued warrants for 120,000 common shares to XLR8 Capital Partners LLC, exempt from registration under Section 4(a)(2) - In the quarter ended June 30, 2021, the Company issued warrants for **120,000** shares of common stock to XLR8 Capital Partners LLC pursuant to a consulting agreement[170](index=170&type=chunk)[171](index=171&type=chunk) [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None reported - None[172](index=172&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[173](index=173&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) None reported - None[174](index=174&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including officer certifications and Inline XBRL documents

| --- | --- | |---------------------------------------------------------------------------|--------------------------------| | | | | FPAY The Omni-Channel Lease-to-Own Provider for Consumers and Businesses | Investor Presentation May 2021 | | | | Confidential & Proprietary Safe Harbor Statement & Use on Non-GAAP Information Forward Looking Statements: This presentation includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the private securities litigation reform act o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Delaware 20-5456087 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 901 Yamato Road, Suite 260, Boca Raton, Florida 33431 (Address of Principal Executive Offices) (Zip Code) (855) 353-9289 (Registrant's Telephone Number, Including Area Code) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ...

FlexShopper Inc. (NASDAQ:FPAY) Q4 2020 Earnings Conference Call March 9, 2021 9:00 AM ET Company Participants Rich House - Chief Executive Officer Russ Heiser - Chief Financial Officer Jeremy Hellman - The Equity Group Conference Call Participants Scott Buck - HC Wainwright Ed Wu - Ascendiant Capital Operator Greetings and welcome to the FlexShopper LLC Q4 and full year 2020 earnings conference call. At this time, all participants are in a listen-only mode. If anyone should require Operator assistance, plea ...