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v3.22.1

Summary of Significant Accounting Policies (Tables) | 3 Months Ended
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Mar. 31, 2022
Accounting Policies [Abstract] |
Schedule of accounts receivable |
|  | March 31, 2022 |  |  | December 31, 2021 |
Accounts receivable |  | $ | 51,988,768 |  |  | $ | 54,042,161 |
Allowance for doubtful accounts |  |  | (22,450,828 | ) |  |  | (27,703,278 | )
Accounts receivable, net |  | $ | 29,537,940 |  |  | $ | 26,338,883 |
Schedule of allowance for doubtful accounts |
|  | Three Months Ended March 31, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 27,703,278 |  |  | $ | 22,138,541 |
Provision |  |  | 11,831,117 |  |  |  | 40,342,618 |
Accounts written off |  |  | (17,083,567 | ) |  |  | (34,777,881 | )
Ending balance |  | $ | 22,450,828 |  |  | $ | 27,703,278 |
Schedule of net leased merchandise |
|  | March 31, 2022 |  |  | December 31, 2021 |
Lease merchandise at cost |  | $ | 68,614,211 |  |  | $ | 72,159,063 |
Accumulated depreciation |  |  | (29,574,842 | ) |  |  | (29,505,431 | )
Impairment reserve |  |  | (2,441,540 | ) |  |  | (1,711,520 | )
Lease merchandise, net |  | $ | 36,597,829 |  |  | $ | 40,942,112 |
Schedule of lessor revenues and fees |
|  | Three Months ended |
|  | March 31, |
|  | 2022 |  |  | 2021 |
Lease billings and accruals |  | $ | 39,597,429 |  |  | $ | 41,584,680 |
Provision for doubtful accounts |  |  | (11,831,117 | ) |  |  | (8,833,349 | )
Lease revenues and fees |  | $ | 27,766,312 |  |  | $ | 32,751,331 |
Schedule of series1 convertible preferred stock and series 2 convertible preferred stock due to anti-dilution |
|  | Three Months ended |
|  | March 31, |
|  | 2022 |  |  | 2021 |
Series 1 Convertible Preferred Stock |  |  | 225,231 |  |  |  | 225,231 |
Series 2 Convertible Preferred Stock |  |  | 5,845,695 |  |  |  | 5,845,695 |
Series 2 Convertible Preferred Stock issuable upon exercise of warrants |  |  | 116,903 |  |  |  | 116,903 |
Common Stock Options |  |  | 3,837,559 |  |  |  | 3,118,730 |
Common Stock Warrants |  |  | 2,255,184 |  |  |  | 2,232,488 |
Performance Share Units |  |  | 790,327 |  |  |  | - |
|  |  | 13,070,899 |  |  |  | 11,539,047 |
Schedule of basic and diluted earnings per share |
|  | Three Months ended |
|  | March 31, |
|  | 2022 |  |  | 2021 |
Numerator |  |  |  |  |  |  |  |
Net (loss)/income |  | $ | (2,380,935 | ) |  | $ | 1,237 |
Convertible Series 2 Preferred Share dividends |  |  | (609,777 | ) |  |  | (609,772 | )
Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS |  | $ | (2,990,712 | ) |  | $ | (608,535 | )
Denominator |  |  |  |  |  |  |  |
Denominator for basic and diluted EPS- weighted average shares |  |  | 21,547,069 |  |  |  | 21,369,904 |
Basic EPS |  | $ | (0.14 | ) |  |  | (0.03 | )
Diluted EPS |  | $ | (0.14 | ) |  |  | (0.03 | )
Schedule of fair value assets measured on recurring basis |
|  | Fair Value Measurement Using |  |  |  |
Financial instruments – As of March 31, 2022 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Carrying Amount |
Loans receivable |  | $ | - |  |  | $ | - |  |  | $ | 7,137,503 |  |  | $ | 7,137,503 |
|  | Fair Value Measurement Using |  |  |  |
Financial instruments – As of December 31, 2021 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Carrying Amount |
Loans receivable |  | $ | - |  |  | $ | - |  |  | $ | 3,560,108 |  |  | $ | 3,560,108 |
| (1) | For cash, accounts receivable, and accounts payable the carrying amount is a reasonable estimate of fair value due to their short-term nature. The carrying value of loans payable under the Credit Agreement increased by unamortized issuance costs and the carrying value of promissory notes to related parties approximates fair value based upon their interest rates, which approximate current market interest rates.
Schedule of fair value assets measured on recurring basis, unobservable input reconciliation |
|  | Three months Ended March 31, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 3,560,108 |  |  | $ | 89,445 |
Purchases of loan participation |  |  | 4,295,401 |  |  |  | 3,473,039 |
Interest and fees (1) |  |  | 1,712,348 |  |  |  | 672,272 |
Collections |  |  | (1,906,930 | ) |  |  | (907,169 | )
Net charge off (1) |  |  | (164,780 | ) |  |  | (146,923 | )
Net change in fair value (1) |  |  | (358,644 | ) |  |  | 379,444 |
Ending balance |  | $ | 7,137,503 |  |  | $ | 3,560,108 |
| (1) | Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statement of operations
Schedule of quantitative information about the inputs used in fair value measurement |
|  | March 31, 2022 |  |  | December 31, 2021 |
|  | Minimum |  |  | Maximum |  |  | Weighted Average (2) |  |  | Minimum |  |  | Maximum |  |  | Weighted Average |
Estimated losses (1) |  |  | 26.0 | % |  |  | 35.0 | % |  |  | 34.8 | % |  |  | 26.0 | % |  |  | 35.0 | % |  |  | 34.6 | %
Servicing costs |  |  | - |  |  |  | - |  |  |  | 4.0 | % |  |  | - |  |  |  | - |  |  |  | 4.6 | %
Discount rate |  |  | - |  |  |  | - |  |  |  | 11.4 | % |  |  | - |  |  |  | - |  |  |  | 11.1 | %
| (1) | Figure disclosed as a percentage of outstanding principal balance.
| (2) | Unobservable inputs were weighted by outstanding principal balance, which are grouped by origination channel (retail and direct-to-consumer).
Schedule of concerning loan receivables at fair value |
|  | March 31, 2022 |  |  | December 31, 2021 |
Aggregate fair value of loans receivables at fair value that are 90 days or more past due |  | $ | 253,418 |  |  | $ | - |
Unpaid principal balance of loans receivables at fair value that are 90 days or more past due |  |  | 372,059 |  |  |  | - |
Aggregate fair value of loans receivables at fair value in non-accrual status |  |  | - |  |  |  | - |

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