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Loans receivable

12 Months Ended

Dec. 31, 2019

Loans receivable represent unsecured installment loans and lines of credit advanced to customers in the normal course of business. Current loans are defined as loans to customers with terms of one year or less, while non-current loans are those with terms exceeding one year. The Company phased out its legacy short-term loan products from its business in 2018. The breakdown of the Company’s gross loans receivable as at December 31, 2019 and December 31, 2018 are as follows:

	December 31, 2019		December 31, 2018
Current		69,949		62,439
Non-Current		34,726		39,317
		104,675		101,756

The following table provides a breakdown of gross loans receivable and allowance for loan losses by aging bucket, which represents our assessment of credit risk exposure and by their IFRS 9 ECL measurement stage. The entire loan balance of a customer is aged in the same category as its oldest individual past due payment, to align with the stage groupings used in calculating the allowance for loan losses under IFRS 9:

As at December 31, 2019
Risk Category	Days past due	Stage 1			Stage 2			Stage 3			Total
Strong	Not past due		87,910			-			-			87,910
Satisfactory	1-30 days past due		3,240			-			-			3,240
Lower risk	31-60 days past due		-			1,650			-			1,650
Higher risk	61-90 days past due		-			1,289			-			1,289
Non-performing	91+ days past due or bankrupt		-			-			10,586			10,586
	Gross loans receivable		91,150			2,939			10,586			104,675
	Allowance for loan losses		(7,477	)		(1,784	)		(6,759	)		(16,020	)
	Loans receivable, net		83,673			1,155			3,827			88,655

		As at December 31, 2018
Risk Category	Days past due	Stage 1			Stage 2			Stage 3			Total
Strong	Not past due		88,035			-			-			88,035
Satisfactory	1-30 days past due		3,097			-			-			3,097
Lower risk	31-60 days past due		-			1,838			-			1,838
Higher risk	61-90 days past due		-			1,240			-			1,240
Non-performing	91+ days past due or bankrupt		-			-			7,546			7,546
	Gross loans receivable		91,132			3,078			7,546			101,756
	Allowance for loan losses		(6,951	)		(2,118	)		(6,340	)		(15,409	)
	Loans receivable, net		84,181			960			1,206			86,347

The following tables show reconciliations from the opening to the closing balance of the loss allowance:

	As at December 31, 2019
	Stage 1			Stage 2			Stage 3			Total
Balance as at January 1, 2019		6,951			2,118			6,340			15,409
Gross loans originated		4,296			-			-			4,296
Principal payments		(2,536	)		(449	)		(912	)		(3,897	)
Re-measurement of allowance before transfers		523			(197	)		(20	)		306
Re-measurement of amounts transferred between stages		(84	)		1,528			17,750			19,194
Transfer to (from)
Stage 1 – 12 month ECLs		96			(76	)		(20	)		-
Stage 2 - Lifetime ECLs		(238	)		240			(2	)		-
Stage 3 - Lifetime ECLs		(1,529	)		(1,381	)		2,910			-
Net amounts written off against allowance		-			-			(19,288	)		(19,288	)
Balance as at December 31, 2019		7,479			1,783			6,758			16,020

	As at December 31, 2018
	Stage 1			Stage 2			Stage 3			Total
Balance as at January 1, 2018		6,853			1,579			4,137			12,569
Gross loans originated		6,519			-			-			6,519
Principal payments		(2,999	)		348			(1,084	)		(3,735	)
Re-measurement of allowance before transfers		(1,853	)		(525	)		(14	)		(2,392	)
Re-measurement of amounts transferred between stages		(34	)		1,846			16,202			18,014
Transfer to (from)
Stage 1 – 12 month ECLs		39			(24	)		(15	)		-
Stage 2 - Lifetime ECLs		(270	)		270			-			-
Stage 3 - Lifetime ECLs		(1,303	)		(1,377	)		2,680			-
Net amounts written off against allowance		-			-			(15,566	)		(15,566	)
Balance as at December 31, 2018		6,952			2,117			6,340			15,409

The overall changes in the allowance for loan losses are summarized below:

Allowance for loan losses	Year ended December 31, 2019			Year ended December 31, 2018
Balance, beginning of period		15,409			7,434
January 1, 2018 IFRS 9 adjustment		-			5,135
Provision for loan losses		19,899			18,406
Charge offs		(19,288	)		(15,566	)
Balance, end of period		16,020			15,409

The provision for loan losses in the consolidated statement of operations and comprehensive loss is recorded net of recoveries of $1,737 (2018- $2,039).