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FlexShopper(FPAY) - 2021 Q4 - Annual Report
FPAYFlexShopper(FPAY)2022-03-30 20:03
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Financial Performance - Total revenues for the year ended December 31, 2021, were 125,426,756,anincreaseof23.0125,426,756, 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,asignificantimprovementfromanetlossof833,675, a significant improvement from a net loss of 3,492,096 in 2020[186] - Operating income for 2021 was 7,364,819,comparedto7,364,819, 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,comparedtoanetlossof3,272,774, 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 0.04for2021,comparedtoalossof0.04 for 2021, compared to a loss of 0.17 per share in 2020[186] Assets and Liabilities - Total assets increased to 84,812,056asofDecember31,2021,upfrom84,812,056 as of December 31, 2021, up from 68,249,379 in 2020, representing a growth of 24.3%[184] - Current liabilities decreased to 12,586,724in2021from12,586,724 in 2021 from 17,067,745 in 2020, a reduction of 26.5%[184] - Accounts receivable increased to 57,602,269asofDecember31,2021,from57,602,269 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]−Totalstockholders′equityincreasedto27,703,278[199] - Total stockholders' equity increased to 16,143,619 as of December 31, 2021, from 11,154,046asofDecember31,2020[188]CashFlowandOperatingActivities−Thecompany’scashpositiondecreasedto11,154,046 as of December 31, 2020[188] Cash Flow and Operating Activities - The company’s cash position decreased to 5,094,642 in 2021 from 8,541,232in2020,adeclineof40.58,541,232 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)in2020[191]−Cashattheendoftheperioddecreasedto(5,207,547) in 2020[191] - Cash at the end of the period decreased to 5,094,642 as of December 31, 2021, from 8,541,232attheendof2020[191]RevenueSources−Leaserevenuesandfees,net,for2021were8,541,232 at the end of 2020[191] Revenue Sources - Lease revenues and fees, net, for 2021 were 118,355,184, up from 96,939,767in2020,markinga22.096,939,767 in 2020, marking a 22.0% increase[186] - Lease billings and accruals increased to 158,844,724 in 2021 from 128,870,481in2020,representingagrowthofapproximately23.3128,870,481 in 2020, representing a growth of approximately 23.3%[202] - Lease revenues and fees rose to 118,355,184 in 2021, up from 96,939,767in2020,markinganincreaseofabout22.196,939,767 in 2020, marking an increase of about 22.1%[202] Expenses - Marketing expenses rose to 9,129,062 in 2021, compared to 5,880,063in2020,anincreaseof55.55,880,063 in 2020, an increase of 55.5%[186] - Depreciation and impairment of lease merchandise for 2021 was 73,616,293, compared to 63,308,210in2020[191]−Totaloperatingandfinanceleaseexpensesamountedto63,308,210 in 2020[191] - Total operating and finance lease expenses amounted to 401,463 in 2021, compared to 433,654in2020,reflectingadecreaseofabout7.4433,654 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 15,033,000in2020[191]−TheoutstandingbalanceundertheCreditAgreementincreasedfrom15,033,000 in 2020[191] - The outstanding balance under the Credit Agreement increased from 37,195,696 in 2020 to 50,475,000in2021,anincreaseofapproximately35.650,475,000 in 2021, an increase of approximately 35.6%[247] - Interest expense under the Credit Agreement rose to 4,323,830 in 2021 from 3,192,019in2020,anincreaseofabout35.43,192,019 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 1.95millionfrom1,952sharessoldtoanotherinvestor[251]−AsofDecember31,2021,theCompanyhadoutstandingwarrantsexercisablefor2,255,184sharesofcommonstockatanexercisepriceof1.95 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 785,310comparedto785,310 compared to 663,050 in 2020[273] - The total gross deferred tax assets as of December 31, 2021 were 11,923,332,withavaluationallowanceof11,923,332, with a valuation allowance of 12,418,498, resulting in a net deferred tax liability of (495,166)[271]OtherFinancialMetrics−TheprovisionforbaddebtfortheyearendedDecember31,2021,was(495,166)[271] Other Financial Metrics - The provision for bad debt for the year ended December 31, 2021, was 40,489,540, up from 31,930,714in2020[199]−Thecompanyrecognizedagainof31,930,714 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]