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v3.22.2.2

Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2022
Accounting Policies [Abstract] |
Schedule of reconciliation of cash and restricted cash |
|  | September 30, 2022 |  |  | December 31, 2021 |
Cash |  | $ | 5,274,219 |  |  | $ | 4,986,559 |
Restricted cash |  |  | 481,867 |  |  |  | 108,083 |
Total cash and restricted cash |  | $ | 5,756,086 |  |  | $ | 5,094,642 |
Schedule of accounts receivable |
|  | September 30, 2022 |  |  | December 31, 2021 |
Lease receivables |  | $ | 46,790,076 |  |  | $ | 53,176,432 |
Allowance for doubtful accounts |  |  | (13,364,953 | ) |  |  | (27,703,278 | )
Lease receivables, net |  | $ | 33,425,123 |  |  | $ | 25,473,154 |
Schedule of allowance for doubtful accounts |
|  | Nine Months Ended September 30, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 27,703,278 |  |  | $ | 22,138,541 |
Provision |  |  | 42,639,102 |  |  |  | 40,342,618 |
Accounts written off |  |  | (56,977,427 | ) |  |  | (34,777,881 | )
Ending balance |  | $ | 13,364,953 |  |  | $ | 27,703,278 |
Schedule of net leased merchandise |
|  | September 30, 2022 |  |  | December 31, 2021 |
Lease merchandise at cost |  | $ | 68,329,607 |  |  | $ | 72,159,063 |
Accumulated depreciation |  |  | (34,037,173 | ) |  |  | (29,505,431 | )
Impairment reserve |  |  | (3,639,610 | ) |  |  | (1,711,520 | )
Lease merchandise, net |  | $ | 30,652,824 |  |  | $ | 40,942,112 |
Schedule of lessor revenues and fees |
|  | Three Months ended September 30, |  |  | Nine Months ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Lease billings and accruals |  | $ | 38,580,116 |  |  | $ | 42,528,079 |  |  | $ | 117,774,390 |  |  | $ | 124,720,272 |
Provision for doubtful accounts |  |  | (15,075,109 | ) |  |  | (11,787,960 | ) |  |  | (42,639,102 | ) |  |  | (30,566,352 | )
Gain on sale of lease receivables |  |  | 1,007,079 |  |  |  | - |  |  |  | 7,611,586 |  |  |  | - |
Lease revenues and fees |  | $ | 24,512,086 |  |  | $ | 30,740,119 |  |  | $ | 82,746,874 |  |  | $ | 94,153,920 |
Schedule of series 2 convertible preferred stock as their effect is anti-dilutive |
|  | September 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 |  |  | 3,834,047 |  |  |  | 3,113,715 |
Common Stock Warrants |  |  | 2,255,184 |  |  |  | 2,432,488 |
Performance Share Units |  |  | 790,327 |  |  |  | - |
|  |  | 13,067,387 |  |  |  | 11,734,032 |
Schedule of basic and diluted earnings per share |
|  | Nine Months ended |
|  | September 30, |
|  | 2022 |  |  | 2021 |
Numerator |  |  |  |  |  |
Net income |  | $ | 5,727,852 |  |  | $ | 2,639,454 |
Series 2 Convertible Preferred Stock dividends |  |  | (1,829,332 | ) |  |  | (1,829,322 | )
Net income attributable to common and Series 1 Convertible Preferred Stock |  |  | 3,898,520 |  |  |  | 810,132 |
Net income attributable to Series 1 Convertible Preferred Stock |  |  | (59,078 | ) |  |  | (27,518 | )
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock |  |  | 18,868 |  |  |  | 19,072 |
Net income attributable to common shares - Numerator for basic and diluted EPS |  | $ | 3,858,310 |  |  | $ | 801,686 |
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic EPS |  |  | 21,611,879 |  |  |  | 21,377,978 |
Effect of dilutive securities: |  |  |  |  |  |  |  |
Series 1 Convertible Preferred Stock |  |  | 225,231 |  |  |  | 225,231 |
Common stock options and performance share units |  |  | 323,166 |  |  |  | 1,244,353 |
Common stock warrants |  |  | 243,171 |  |  |  | 834,703 |
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS |  |  | 22,403,447 |  |  |  | 23,682,265 |
Basic EPS |  | $ | 0.18 |  |  | $ | 0.04 |
Diluted EPS |  | $ | 0.17 |  |  | $ | 0.03 |
|  | Three Months ended |
|  | September 30, |
|  | 2022 |  |  | 2021 |
Numerator |  |  |  |  |  |
Net (loss)/income |  | $ | (6,280,434 | ) |  | $ | 1,696,023 |
Series 2 Convertible Preferred Stock dividends |  |  | (609,778 | ) |  |  | (609,777 | )
Net income attributable to common and Series 1 Convertible Preferred Stock |  |  | (6,890,212 | ) |  |  | 1,086,246 |
Net income attributable to Series 1 Convertible Preferred Stock |  |  | - |  |  |  | (17,678 | )
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock |  |  | - |  |  |  | 6,356 |
Net (loss)/income attributable to common shares - Numerator for basic and diluted EPS |  | $ | (6,890,212 | ) |  | $ | 1,074,924 |
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic EPS |  |  | 21,681,853 |  |  |  | 21,383,647 |
Effect of dilutive securities |  |  |  |  |  |  |  |
Series 1 Convertible Preferred Stock |  |  | - |  |  |  | 225,231 |
Common stock options and performance share units |  |  | - |  |  |  | 1,112,537 |
Common stock warrants |  |  | - |  |  |  | 855,764 |
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator for diluted EPS |  |  | 21,681,853 |  |  |  | 23,577,179 |
Basic earnings/ (loss) per share |  | $ | (0.32 | ) |  | $ | 0.05 |
Diluted earnings/ (loss) per share |  | $ | (0.32 | ) |  | $ | 0.05 |
Schedule of fair value assets measured on recurring basis |
|  | Fair Value Measurement Using |  |  | Carrying |
Financial instruments – As of September 30, 2022 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Amount |
Loan receivables at fair value |  | $ | - |  |  | $ | - |  |  | $ | 26,591,546 |  |  | $ | 20,784,782 |
|  | Fair Value Measurement Using |  |  | Carrying |
Financial instruments – As of December 31, 2021 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Amount |
Loan receivables at fair value |  | $ | - |  |  | $ | - |  |  | $ | 3,560,108 |  |  | $ | 3,151,184 |
Schedule of fair value assets measured on recurring basis, unobservable input reconciliation |
|  | Nine months Ended September 30, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 3,560,108 |  |  | $ | 89,445 |
Purchases of loan participation |  |  | 26,844,927 |  |  |  | 3,309,732 |
Obligation of loan participation |  |  | 467,266 |  |  |  | 163,307 |
Interest and fees(1) |  |  | 10,836,534 |  |  |  | 672,272 |
Collections |  |  | (13,178,721 | ) |  |  | (907,169 | )
Net charge off (1) |  |  | (4,450,274 | ) |  |  | (146,923 | )
Net change in fair value(1) |  |  | 2,511,706 |  |  |  | 379,444 |
Ending balance |  | $ | 26,591,546 |  |  | $ | 3,560,108 |
Schedule of quantitative information about the inputs used in fair value measurement |
|  | September 30, 2022 |  |  | December 31, 2021 |
|  | Minimum |  |  | Maximum |  |  | Weighted Average(2) |  |  | Minimum |  |  | Maximum |  |  | Weighted Average |
Estimated losses(1) |  |  | 3.3 | % |  |  | 39.2 | % |  |  | 19.6 | % |  |  | 26.0 | % |  |  | 35.0 | % |  |  | 34.6 | %
Servicing costs |  |  | - |  |  |  | - |  |  |  | 3.9 | % |  |  | - |  |  |  | - |  |  |  | 4.6 | %
Discount rate |  |  | - |  |  |  | - |  |  |  | 20.3 | % |  |  | - |  |  |  | - |  |  |  | 11.1 | %
Schedule of concerning loan receivables at fair value |
|  | September 30, 2022 |  |  | December 31, 2021 |
Aggregate fair value of loan receivables that are 90 days or more past due |  | $ | 507,897 |  |  | $ | - |
Unpaid principal balance of loan receivables that are 90 days or more past due |  |  | 510,625 |  |  |  | - |
Aggregate fair value of loan receivables in non-accrual status |  |  | - |  |  |  | - |

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