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]
FlexShopper(FPAY) - 2021 Q4 - Annual Report