XML 33 R24.htm IDEA: XBRL DOCUMENT
v3.23.1

Summary of Significant Accounting Policies (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2023
Summary of Significant Accounting Policies [Abstract] |
Schedule of reconciliation of cash and restricted cash |
|  | March 31, 2023 |  |  | December 31, 2022 |
Cash |  | $ | 9,861,646 |  |  | $ | 6,051,713 |
Restricted cash |  |  | 7,881 |  |  |  | 121,636 |
Total cash and restricted cash |  | $ | 9,869,527 |  |  | $ | 6,173,349 |
Schedule of accounts receivable |
|  | March 31, 2023 |  |  | December 31, 2022 |
Lease receivables |  | $ | 42,499,378 |  |  | $ | 48,618,843 |
Allowance for doubtful accounts |  |  | (5,345,443 | ) |  |  | (13,078,800 | )
Lease receivables, net |  | $ | 37,153,935 |  |  | $ | 35,540,043 |
Schedule of allowance for doubtful accounts |
|  | Three Months Ended March 31, 2023 |  |  | Year Ended December 31, 2022 |
Beginning balance |  | $ | 13,078,800 |  |  | $ | 27,703,278 |
Provision |  |  | 11,238,415 |  |  |  | 57,420,480 |
Accounts written off |  |  | (18,971,772 | ) |  |  | (72,044,958 | )
Ending balance |  | $ | 5,345,443 |  |  | $ | 13,078,800 |
Schedule of net leased merchandise |
|  | March 31, 2023 |  |  | December 31, 2022 |
Lease merchandise at cost |  | $ | 58,037,072 |  |  | $ | 62,379,920 |
Accumulated depreciation and impairment reserve |  |  | (31,128,967 | ) |  |  | (30,829,479 | )
Lease merchandise, net |  | $ | 26,908,105 |  |  | $ | 31,550,441 |
Schedule of lessor revenues and fees |
|  | Three Months ended March 31, |
|  | 2023 |  |  | 2022 |
Lease billings and accruals |  | $ | 34,255,083 |  |  | $ | 39,597,429 |
Provision for doubtful accounts |  |  | (11,238,415 | ) |  |  | (11,831,117 | )
Gain on sale of lease receivables |  |  | 1,697,490 |  |  |  | - |
Lease revenues and fees |  | $ | 24,714,158 |  |  | $ | 27,766,312 |
Schedule of series 2 convertible preferred stock, options, performance share units and warrants |
|  | Three Months ended |
|  | March 31, |
|  | 2023 |  |  | 2022 |
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 |  |  | 3,917,728 |  |  |  | 3,837,559 |
Common Stock Warrants |  |  | 2,255,184 |  |  |  | 2,255,184 |
Performance Share Units |  |  | 790,327 |  |  |  | 790,327 |
|  |  | 13,151,068 |  |  |  | 13,070,899 |
(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 basic and diluted earnings per share |
|  | Three Months ended |
|  | March 31, |
|  | 2023 |  |  | 2022 |
Numerator |  |  |  |  |  |
Net loss |  | $ | (230,215 | ) |  | $ | (2,380,935 | )
Series 2 Convertible Preferred Stock dividends |  |  | (972,233 | ) |  |  | (609,777 | )
Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS |  | $ | (1,202,448 | ) |  | $ | (2,990,712 | )
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic and diluted EPS |  |  | 21,751,304 |  |  |  | 21,547,069 |
Basic EPS |  | $ | (0.06 | ) |  |  | (0.14 | )
Diluted EPS |  | $ | (0.06 | ) |  |  | (0.14 | )
Schedule of fair value assets measured on recurring basis |
|  | Fair Value Measurement Using |  |  | Carrying |
Financial instruments – As of March 31, 2023 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Amount |
Loan receivables at fair value |  | $ | - |  |  | $ | - |  |  | $ | 29,317,948 |  |  | $ | 36,508,938 |
Promissory note related to acquisition |  |  | - |  |  |  | - |  |  |  | 3,063,771 |  |  |  | 3,063,771 |
|  | 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 |
(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 |
|  | Three Months Ended March 31, 2023 |  |  | Year Ended December 31, 2022 |
Beginning balance |  | $ | 32,932,504 |  |  | $ | 3,560,108 |
Purchases of loan participation |  |  | 184,807 |  |  |  | 31,216,406 |
Obligation of loan participation |  |  | (8,023 | ) |  |  | 12,931 |
Purchase of loan portfolio in Revolution Transaction |  |  | - |  |  |  | 13,320,326 |
Loan originations |  |  | 13,949,469 |  |  |  | 5,519,303 |
Interest and fees(1) |  |  | 5,086,965 |  |  |  | 16,680,080 |
Collections |  |  | (23,812,426 | ) |  |  | (27,816,669 | )
Net charge off (1) |  |  | (5,801,252 | ) |  |  | (10,653,751 | )
Net change in fair value(1) |  |  | 6,785,904 |  |  |  | 1,093,770 |
Ending balance |  | $ | 29,317,948 |  |  | $ | 32,932,504 |
(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 |
|  | March 31, 2023 |  |  | December 31, 2022 |
|  | Minimum |  |  | Maximum |  |  | Weighted Average(2) |  |  | Minimum |  |  | Maximum |  |  | Weighted Average |
Estimated losses(1) |  |  | 0.2 | % |  |  | 92.5 | % |  |  | 45.7 | % |  |  | 2.0 | % |  |  | 92.4 | % |  |  | 40.8 | %
Servicing costs |  |  | - |  |  |  | - |  |  |  | 4.5 | % |  |  | - |  |  |  | - |  |  |  | 4.5 | %
Discount rate |  |  | - |  |  |  | - |  |  |  | 20.1 | % |  |  | - |  |  |  | - |  |  |  | 21.0 | %
(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 |
|  | March 31, 2023 |  |  | December 31, 2022 |
Aggregate fair value of loan receivables that are 90 days or more past due |  | $ | 408,738 |  |  | $ | 203,182 |
Unpaid principal balance of loan receivables that are 90 days or more past due |  |  | 1,241,540 |  |  |  | 1,841,812 |
Aggregate fair value of loan receivables in non-accrual status |  |  | 13,758,820 |  |  |  | 6,947,224 |

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
- Definition The entire disclosure for concerning loan receivables at fair value. + References No definition available. + Details
Name: | fpay_ScheduleOfConcerningLoanReceivablesAtFairValueTableTextBlock
Namespace Prefix: | fpay_
Data Type: | dtr:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The table of quantitative information about the inputs used in fair value measurement. + 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: | fpay_SummaryofSignificantAccountingPoliciesTablesLineItems
Namespace Prefix: | fpay_
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 -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + 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 -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479773/842-30-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482964/270-10-50-6A + 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 -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + 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 -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-1 + 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 -Topic 260 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-1 + 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://www.xbrl.org/2009/role/commonPracticeRef -Topic 944 -SubTopic 210 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479440/944-210-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 210 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(1)(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479853/942-210-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 8 -SubTopic 10 -Topic 230 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482913/230-10-50-8 + Details
Name: | us-gaap_ScheduleOfRestrictedCashAndCashEquivalentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration