Financial Performance - Total revenues for Q2 2024 reached 24,532,036 in Q2 2023[11] - Lease revenues and fees for Q2 2024 were 22,906,843 in Q2 2023[11] - Loan revenues and fees increased to 1,625,193 in Q2 2023, representing a 103.5% growth[11] - Operating income for Q2 2024 was 2,031,323 in Q2 2023[11] - Net loss for Q2 2024 was 5,297,655 in Q2 2023, indicating a reduction in losses[11] - Gross profit for the six months ended June 30, 2024, was 21,997,555 in 2023[143] - Adjusted EBITDA for the six months ended June 30, 2024, was 6,696,501 in 2023[144] - For the six months ended June 30, 2024, the net loss attributable to common shares was 7,492,596 for the same period in 2023, representing a 46.5% improvement[47] - Basic and diluted earnings per share for the six months ended June 30, 2024, were both (0.34) for the same period in 2023, indicating a reduction in losses[48] Assets and Liabilities - Total current assets increased to 117,434,627 in 2023, reflecting a growth of 12.7%[10] - Total liabilities rose to 127,259,604 in 2023, marking a 13.8% increase[10] - Cash balance improved to 4,413,130 in 2023, showing a 10.8% increase[10] - The company reported a total stockholders' equity of 29,230,773 in 2023, a decrease of 6.0%[10] - The company reported principal and accrued interest outstanding on the NRNS Note of 20,529,695, compared to a cash used of 28,534,788 in depreciation and impairment of lease merchandise for the six months ended June 30, 2024, slightly down from 22,361,690 under the 2024 Credit Agreement for the six months ended June 30, 2024, compared to 4,137,318 for the six months ended June 30, 2024, compared to 118,816,690 as of June 30, 2024[177] - The company expects to meet liquidity needs for future growth through cash flow from operations and/or additional borrowings against the Credit Agreement[184] Marketing and Expenses - Marketing expenses for Q2 2024 were 1,488,578 in Q2 2023[11] - Salaries and benefits increased by 42.0% to 2,976,008 in Q2 2023, attributed to hiring for new initiatives[152] - Marketing expenses increased by 66.6% to 2,587,767 in the previous year, as the company ramped up efforts to generate more originations[162] Credit Quality and Receivables - The company reported a provision for doubtful accounts of 22,085,828 in 2023, reflecting improved credit quality[16] - The allowance for doubtful accounts rose to 19,954,828 at the end of 2023, indicating an increase of about 65.5%[26] - The net charge-off for the six months ended June 30, 2024, was (11,041,155) for the year ended December 31, 2023, reflecting improved credit quality[60] - The provision for doubtful accounts as a percentage of gross lease billings decreased to 23% in Q2 2024 from 33% in Q2 2023[147] Shareholder Information - The total number of common shares outstanding as of June 30, 2024, was 21,527,869, a slight decrease from 21,751,807 shares in the same period of 2023[47] - The Company has 170,332 shares of Series 1 Convertible Preferred Stock outstanding, convertible into 225,231 shares of common stock[96] - Cumulative accrued dividends for Series 2 Preferred Stock totaled 2 million of the Company's common stock, with a term of 18 months[194] Strategic Initiatives - The company plans to continue its market expansion and product development strategies to enhance its financial performance moving forward[19] - FlexShopper launched a new initiative in Q1 2024 to offer alternative lenders payment options on its marketplace, expanding its customer reach[134] - The company is actively working on onboarding a new bank partner for its unsecured consumer loan product after its previous partner exited the high APR business in 2023[132] Miscellaneous - The company is not currently experiencing any material impact from the COVID-19 pandemic as of August 6, 2024[185] - The company recognized a tax benefit from uncertain tax positions only if it is more likely than not that the position will be sustained, with no unrecognized tax benefits recorded as of June 30, 2024[64]
FlexShopper(FPAY) - 2024 Q2 - Quarterly Report