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Business and Liquidity
6 Months Ended
Jun. 30, 2020
Business [Abstract]  
BUSINESS AND LIQUIDITY

2. BUSINESS AND LIQUIDITY

 

FlexShopper, Inc. ("FlexShopper" or the "Company") is a corporation organized under the laws of the State of Delaware in 2006. The Company owns 100% of FlexShopper, LLC, a North Carolina limited liability company, which in turns owns 100% of FlexShopper 1, LLC and FlexShopper 2, LLC. The Company is a holding corporation with no operations except for those conducted by FlexShopper, LLC. FlexShopper, LLC provides through e-commerce sites durable goods to consumers, including customers of third-party retailers and e-tailers, on a lease-to-own ("LTO") basis.

  

To date, funds derived from the sale of FlexShopper's common stock, warrants, Series 1 Convertible Preferred Stock and Series 2 Convertible Preferred Stock and the Company's ability to borrow both funds collateralized by the lease portfolio and from promissory notes have provided the liquidity and capital resources necessary to fund its operations.

 

The Commitment Termination Date of the Credit Agreement (see Note 7) is February 28, 2021 and, accordingly, the Company would then start to repay all borrowed amounts under the facility through February 21, 2022.  Additionally, $ 3,750,000 and $1,000,000 of Promissory Notes (see Note 6) are due by June 30, 2021 and by April 30, 2021, respectively. The Company anticipates either renegotiating the terms of the Credit Agreement and Promissory Notes with the existing lenders or entering into agreements to refinance the existing arrangements with new lenders prior to the maturity of these agreements.  While the Company has been successful in previously refinancing these agreements and the holders of both the Credit Agreement and Promissory Notes are significant equity holders, it cannot provide any assurance that such refinancing's will be available on terms favorable to the Company or available at all.  The inability to refinance the Credit Agreement and/or Promissory Notes could have a material impact to the Company's operations.