XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.22.2

Summary of Significant Accounting Policies (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Accounting Policies [Abstract] |
Schedule of reconciliation of cash and restricted cash |
|  | June 30, 2022 |  |  | December 31, 2021 |
Cash |  | $ | 4,988,308 |  |  | $ | 4,986,559 |
Restricted cash |  |  | 461,649 |  |  |  | 108,083 |
Total cash and restricted cash |  | $ | 5,449,957 |  |  | $ | 5,094,642 |
Schedule of accounts receivable |
|  | June 30, 2022 |  |  | December 31, 2021 |
Accounts receivable |  | $ | 47,515,013 |  |  | $ | 54,042,161 |
Allowance for doubtful accounts |  |  | (14,464,173 | ) |  |  | (27,703,278 | )
Accounts receivable, net |  | $ | 33,050,840 |  |  | $ | 26,338,883 |
Schedule of allowance for doubtful accounts |
|  | Six Months Ended June 30, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 27,703,278 |  |  | $ | 22,138,541 |
Provision |  |  | 27,563,993 |  |  |  | 40,342,618 |
Accounts written off |  |  | (40,803,098 | ) |  |  | (34,777,881 | )
Ending balance |  | $ | 14,464,173 |  |  | $ | 27,703,278 |
Schedule of net leased merchandise |
|  | June 30, 2022 |  |  | December 31, 2021 |
Lease merchandise at cost |  | $ | 69,525,102 |  |  | $ | 72,159,063 |
Accumulated depreciation |  |  | (30,307,129 | ) |  |  | (29,505,431 | )
Impairment reserve |  |  | (3,080,978 | ) |  |  | (1,711,520 | )
Lease merchandise, net |  | $ | 36,136,995 |  |  | $ | 40,942,112 |
Schedule of lessor revenues and fees |
|  | Three Months ended June 30, |  |  | Six Months ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Lease billings and accruals |  | $ | 39,596,845 |  |  | $ | 40,607,513 |  |  | $ | 79,194,274 |  |  | $ | 82,192,193 |
Provision for doubtful accounts |  |  | (15,732,876 | ) |  |  | (9,945,043 | ) |  |  | (27,563,993 | ) |  |  | (18,778,392 | )
Gain on sale of lease receivables |  |  | 6,604,507 |  |  |  | - |  |  |  | 6,604,507 |  |  |  | - |
Lease revenues and fees |  | $ | 30,468,476 |  |  | $ | 30,662,470 |  |  | $ | 58,234,788 |  |  | $ | 63,413,801 |
Schedule of series 2 convertible preferred stock as their effect is anti-dilutive |
|  | June 30, |
|  | 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 |  |  | 3,936,083 |  |  |  | 3,117,310 |
Common Stock Warrants |  |  | 2,255,184 |  |  |  | 2,352,488 |
Performance Share Units |  |  | 790,327 |  |  |  | - |
|  |  | 13,169,423 |  |  |  | 11,657,627 |
Schedule of basic and diluted earnings per share |
|  | Six Months ended |
|  | June 30, |
|  | 2022 |  |  | 2021 |
Numerator |  |  |  |  |  |
Net income |  | $ | 12,008,286 |  |  | $ | 943,431 |
Series 2 Convertible Preferred Stock dividends |  |  | (1,219,554 | ) |  |  | (1,219,545 | )
Net income/(loss) attributable to common and Series 1 Convertible Preferred Stock |  |  | 10,788,732 |  |  |  | (276,114 | )
Net income attributable to Series 1 Convertible Preferred Stock |  |  | (124,057 | ) |  |  | - |
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock |  |  | 12,599 |  |  |  | - |
Net income/(loss) attributable to common shares- Numerator for basic EPS |  |  | 10,677,274 |  |  | $ | (276,114 | )
Effect of dilutive securities: |  |  |  |  |  |  |  |
Series 2 Convertible Preferred Stock dividends |  |  | 1,219,554 |  |  |  | - |
Net income/(loss) attributable to common shares after assumed conversions- Numerator for diluted EPS |  |  | 11,896,828 |  |  |  | (276,114 | )
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic EPS |  |  | 21,576,312 |  |  |  | 21,375,096 |
Effect of dilutive securities: |  |  |  |  |  |  |  |
Series 2 Convertible Preferred Stock |  |  | 5,845,695 |  |  |  | - |
Series 1 Convertible Preferred Stock |  |  | 225,231 |  |  |  | - |
Common stock options and performance share units |  |  | 355,753 |  |  |  | - |
Common stock warrants |  |  | 190,277 |  |  |  | - |
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS |  |  | 28,193,268 |  |  |  | 21,375,096 |
Basic EPS |  | $ | 0.49 |  |  | $ | (0.01 | )
Diluted EPS |  | $ | 0.42 |  |  | $ | (0.01 | )
|  | Three Months ended |
|  | June 30, |
|  | 2022 |  |  | 2021 |
Numerator |  |  |  |  |  |
Net income |  | $ | 14,389,221 |  |  | $ | 942,194 |
Series 2 Convertible Preferred Stock dividends |  |  | (609,777 | ) |  |  | (609,773 | )
Net income attributable to common and Series 1 Convertible Preferred Stock |  |  | 13,779,444 |  |  |  | 332,421 |
Net income attributable to Series 1 Convertible Preferred Stock |  |  | (148,457 | ) |  |  | (9,822 | )
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock |  |  | 6,291 |  |  |  | 6,357 |
Net income attributable to common shares- Numerator for basic EPS |  |  | 13,637,278 |  |  |  | 328,956 |
Effect of dilutive securities: |  |  |  |  |  |  |  |
Series 2 Convertible Preferred Stock dividends |  |  | 609,777 |  |  |  | - |
Net income attributable to common shares after assumed conversions - Numerator for diluted EPS |  | $ | 14,247,055 |  |  | $ | 328,956 |
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic EPS |  |  | 21,605,234 |  |  |  | 21,605,461 |
Effect of dilutive securities |  |  |  |  |  |  |  |
Series 2 Convertible Preferred Stock |  |  | 5,845,695 |  |  |  | - |
Series 1 Convertible Preferred Stock |  |  | 225,231 |  |  |  | - |
Common stock options and performance share units |  |  | 222,664 |  |  |  | 1,156,512 |
Common stock warrants |  |  | - |  |  |  | 841,504 |
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator for diluted EPS |  |  | 27,898,824 |  |  |  | 23,603,477 |
Basic EPS |  | $ | 0.63 |  |  | $ | 0.02 |
Diluted EPS |  | $ | 0.51 |  |  | $ | 0.01 |
Schedule of fair value assets measured on recurring basis |
|  |  | Fair Value Measurement Using |  |  |  |
Financial instruments – As of June 30, 2022 (1) |  |  | Level 1 |  |  |  | Level 2 |  |  |  | Level 3 |  |  | Carrying Amount |
Loans receivable at fair value |  | $ | - |  |  | $ | - |  |  | $ | 22,534,033 |  | $ | 16,487,838 |
|  |  | Fair Value Measurement Using |  |  |  |
Financial instruments – As of December 31, 2021 (1) |  |  | Level 1 |  |  |  | Level 2 |  |  |  | Level 3 |  |  | Carrying Amount |
Loans receivable at fair value |  | $ | - |  |  | $ | - |  |  | $ | 3,560,108 |  | $ | 3,151,184 |
Schedule of fair value assets measured on recurring basis, unobservable input reconciliation |
|  | Six months Ended June 30, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 3,560,108 |  |  | $ | 89,445 |
Purchases of loan participation |  |  | 15,211,553 |  |  |  | 3,309,732 |
Obligation of loan participation |  |  | 2,068,413 |  |  |  | 163,307 |
Interest and fees(1) |  |  | 4,810,748 |  |  |  | 672,272 |
Collections |  |  | (5,574,640 | ) |  |  | (907,169 | )
Net charge off (1) |  |  | (1,522,903 | ) |  |  | (146,923 | )
Net change in fair value(1) |  |  | 3,980,754 |  |  |  | 379,444 |
Ending balance |  | $ | 22,534,033 |  |  | $ | 3,560,108 |
Schedule of quantitative information about the inputs used in fair value measurement |
|  | June 30, 2022 |  |  | December 31, 2021 |
|  | Minimum |  |  | Maximum |  |  | Weighted Average (2) |  |  | Minimum |  |  | Maximum |  |  | Weighted Average |
Estimated losses (1) |  |  | 8.8 | % |  |  | 35.1 | % |  |  | 15.6 | % |  |  | 26.0 | % |  |  | 35.0 | % |  |  | 34.6 | %
Servicing costs |  |  | - |  |  |  | - |  |  |  | 4.0 | % |  |  | - |  |  |  | - |  |  |  | 4.6 | %
Discount rate |  |  | - |  |  |  | - |  |  |  | 19.2 | % |  |  | - |  |  |  | - |  |  |  | 11.1 | %
Schedule of concerning loan receivables at fair value |
|  | June 30, 2022 |  |  | December 31, 2021 |
Aggregate fair value of loans receivables that are 90 days or more past due |  | $ | 217,398 |  |  | $ | - |
Unpaid principal balance of loans receivables that are 90 days or more past due |  |  | 661,727 |  |  |  | - |
Aggregate fair value of loans receivables in non-accrual status |  |  | - |  |  |  | - |

X
- Definition Tabular disclosure of Lease merchandise. + References No definition available. + Details
Name: | fpay_LeaseMerchandiseTableTextBlock
Namespace Prefix: | fpay_
Data Type: | dtr:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allowance for doubtful accounts. + References No definition available. + Details
Name: | fpay_ScheduleOfAllowanceForDoubtfulAccountsTableTextBlock
Namespace Prefix: | fpay_
Data Type: | dtr:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | fpay_ScheduleOfConcerningLoanReceivablesAtFairValueTableTextBlock
Namespace Prefix: | fpay_
Data Type: | dtr:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | fpay_ScheduleOfQuantitativeInformationAboutTheInputsUsedInFairValueMeasurementTableTextBlock
Namespace Prefix: | fpay_
Data Type: | dtr:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of components of income from operating lease. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -Section 50 -Paragraph 5 -URI https://asc.fasb.org/extlink&oid=124258985&loc=SL77919372-209981 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 6A -URI https://asc.fasb.org/extlink&oid=126900988&loc=SL77927221-108306 + Details
Name: | us-gaap_OperatingLeaseLeaseIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
Name: | us-gaap_ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) in the future that were not included in the computation of diluted EPS because to do so would increase EPS amounts or decrease loss per share amounts for the period presented, by antidilutive securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of cash and cash equivalents restricted as to withdrawal or usage. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(1)(a)) -URI https://asc.fasb.org/extlink&oid=126897435&loc=d3e534808-122878 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 8 -URI https://asc.fasb.org/extlink&oid=126999549&loc=SL98516268-108586 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(2)) -URI https://asc.fasb.org/extlink&oid=126734703&loc=d3e572229-122910 + Details
Name: | us-gaap_ScheduleOfRestrictedCashAndCashEquivalentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration