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v3.23.1

Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2022
Summary of Significant Accounting Policies [Abstract] |
Schedule of reconciliation of cash and restricted cash |
|  | December 31, 2022 |  |  | December 31, 2021 |
Cash |  | $ | 6,051,713 |  |  | $ | 4,986,559 |
Restricted cash |  |  | 121,636 |  |  |  | 108,083 |
Total cash and restricted cash |  | $ | 6,173,349 |  |  | $ | 5,094,642 |
Schedule of accounts receivable |
|  | December 31, 2022 |  |  | December 31, 2021 |
Lease receivables |  | $ | 48,618,843 |  |  | $ | 53,176,432 |
Allowance for doubtful accounts |  |  | (13,078,800 | ) |  |  | (27,703,278 | )
Lease receivables, net |  | $ | 35,540,043 |  |  | $ | 25,473,154 |
Schedule of allowance for doubtful accounts |
|  | Year Ended December 31, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 27,703,278 |  |  | $ | 22,138,541 |
Provision |  |  | 57,420,480 |  |  |  | 40,342,618 |
Accounts written off |  |  | (72,044,958 | ) |  |  | (34,777,881 | )
Ending balance |  | $ | 13,078,800 |  |  | $ | 27,703,278 |
Schedule of net leased merchandise |
|  | December 31, 2022 |  |  | December 31, 2021 |
Lease merchandise at cost |  | $ | 62,379,920 |  |  | $ | 72,159,063 |
Accumulated depreciation and impairment reserve |  |  | (30,829,479 | ) |  |  | (31,216,951 | )
Lease merchandise, net |  | $ | 31,550,441 |  |  | $ | 40,942,112 |
Schedule of lessor revenues and fees |
|  | Year ended December 31, |
|  | 2022 |  |  | 2021 |
Lease billings and accruals |  | $ | 154,535,446 |  |  | $ | 164,848,050 |
Provision for doubtful accounts |  |  | (57,420,480 | ) |  |  | (40,342,618 | )
Gain on sale of lease receivables |  |  | 8,821,106 |  |  |  | - |
Lease revenues and fees |  | $ | 105,936,072 |  |  | $ | 124,505,432 |
Schedule of series 2 convertible preferred stock, options, performance share units and warrants |
|  | December 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 |  |  | 3,919,228 |  |  |  | 3,080,904 |
Common Stock Warrants |  |  | 2,255,184 |  |  |  | 2,255,184 |
Performance Share Units |  |  | 790,327 |  |  |  | - |
|  |  | 13,152,568 |  |  |  | 11,523,917 |
Schedule of basic and diluted earnings per share |
|  | Year ended |
|  | December 31, |
|  | 2022 |  |  | 2021 |
Numerator |  |  |  |  |  |
Net income |  | $ | 13,631,719 |  |  | $ | 3,272,774 |
Series 2 Convertible Preferred Stock dividends |  |  | (3,730,580 | ) |  |  | (2,439,099 | )
Net income attributable to common and Series 1 Convertible Preferred Stock |  |  | 9,901,139 |  |  |  | 833,675 |
Net income attributable to Series 1 Convertible Preferred Stock |  |  | (140,374 | ) |  |  | (34,106 | )
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock |  |  | 38,416 |  |  |  | 25,418 |
Net income attributable to common shares - Numerator for basic and diluted EPS |  | $ | 9,799,181 |  |  | $ | 824,987 |
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic EPS |  |  | 21,646,896 |  |  |  | 21,387,960 |
Effect of dilutive securities: |  |  | - |  |  |  |  |
Series 1 Convertible Preferred Stock |  |  | 225,231 |  |  |  | - |
Common stock options and performance share units |  |  | 351,576 |  |  |  | 978,978 |
Common stock warrants |  |  | 201,651 |  |  |  | 861,026 |
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS |  |  | 22,425,354 |  |  |  | 23,227,964 |
Basic EPS |  | $ | 0.45 |  |  | $ | 0.04 |
Diluted EPS |  | $ | 0.44 |  |  | $ | 0.04 |
Schedule of fair value assets measured on recurring basis |
|  | Fair Value Measurement Using |  |  | Carrying |
Financial instruments – As of December 31, 2022 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Amount |
Loan receivables at fair value |  | $ | - |  |  | $ | - |  |  | $ | 32,932,504 |  |  | $ | 42,747,668 |
Promissory note related to acquisition |  |  | - |  |  |  | - |  |  |  | 3,158,471 |  |  |  | 3,158,471 |
|  | 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 |  |  | $ | 3,151,377 |
(1) | For cash, lease 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, 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 |
|  | Year Ended December 31, 2022 |  |  | Year Ended December 31, 2021 |
Beginning balance |  | $ | 3,560,108 |  |  | $ | 89,445 |
Purchases of loan participation |  |  | 31,216,406 |  |  |  | 3,309,732 |
Obligation of loan participation |  |  | 12,931 |  |  |  | 163,307 |
Purchase of loan portfolio in Revolution Transaction |  |  | 13,320,326 |  |  |  | - |
Loan originations |  |  | 5,519,303 |  |  |  | - |
Interest and fees(1) |  |  | 16,680,080 |  |  |  | 672,340 |
Collections |  |  | (27,816,669 | ) |  |  | (923,700 | )
Net charge off (1) |  |  | (10,653,751 | ) |  |  | (146,923 | )
Net change in fair value(1) |  |  | 1,093,770 |  |  |  | 395,907 |
Ending balance |  | $ | 32,932,504 |  |  | $ | 3,560,108 |
(1) | Included in loan revenues and fees, net of changes in fair value in the consolidated statements of operations
Schedule of quantitative information about the inputs used in fair value measurement |
|  | December 31, 2022 |  |  | December 31, 2021 |
|  | Minimum |  |  | Maximum |  |  | Weighted Average(2) |  |  | Minimum |  |  | Maximum |  |  | Weighted Average |
Estimated losses(1) |  |  | 2.0 | % |  |  | 92.4 | % |  |  | 40.8 | % |  |  | 26.0 | % |  |  | 35.0 | % |  |  | 34.6 | %
Servicing costs |  |  | - |  |  |  | - |  |  |  | 4.5 | % |  |  | - |  |  |  | - |  |  |  | 4.6 | %
Discount rate |  |  | - |  |  |  | - |  |  |  | 21.0 | % |  |  | - |  |  |  | - |  |  |  | 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.
Schedule of concerning loan receivables at fair value |
|  | December 31, 2022 |  |  | December 31, 2021 |
Aggregate fair value of loan receivables that are 90 days or more past due |  | $ | 203,182 |  |  | $ | - |
Unpaid principal balance of loan receivables that are 90 days or more past due |  |  | 1,841,812 |  |  |  | - |
Aggregate fair value of loan receivables in non-accrual status |  |  | 6,947,224 |  |  |  | - |

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