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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Significant Accounting Policies [Abstract]

Schedule of Reconciliation of Cash and Restricted Cash

The reconciliation of cash and restricted cash is as follows:

		June 30, 2023				December 31, 2022
Cash		$	6,372,699			$	6,051,713
Restricted cash			6,285				121,636
Total cash and restricted cash		$	6,378,984			$	6,173,349

Schedule of Lease Receivables Balances

The lease receivables balances consisted of the following as of June 30, 2023 and December 31, 2022:

		June 30, 2023				December 31, 2022
Lease receivables		$	41,663,220			$	48,618,843
Allowance for doubtful accounts			(2,435,821	)			(13,078,800	)
Lease receivables, net		$	39,227,399			$	35,540,043

Schedule of Lease Receivables Balances Charged Off Against the Allowance

		Six Months Ended June 30, 2023				Year Ended December 31, 2022
Beginning balance		$	13,078,800			$	27,703,278
Provision			22,085,828				57,420,480
Accounts written off			(32,728,807	)			(72,044,958	)
Ending balance		$	2,435,821			$	13,078,800

Schedule of Net Lease Merchandise Balances

The net lease merchandise balances consisted of the following as of June 30, 2023 and December 31, 2022:

		June 30, 2023				December 31, 2022
Lease merchandise at cost		$	52,734,813			$	62,379,920
Accumulated depreciation and impairment reserve			(28,136,977	)			(30,829,479	)
Lease merchandise, net		$	24,597,836			$	31,550,441

Schedule of Lessor Revenues and Fees

The breakout of lease revenues and fees, net of lessor bad debt expense, that ties to the consolidated statements of operations is shown below:

		Three Months ended June 30,								Six Months ended June 30,
		2023				2022				2023				2022
Lease billings and accruals		$	32,501,656			$	39,596,845			$	66,756,740			$	79,194,274
Provision for doubtful accounts			(10,847,413	)			(15,732,876	)			(22,085,828	)			(27,563,993	)
Gain on sale of lease receivables			1,252,600				6,604,507				2,950,089				6,604,507
Lease revenues and fees		$	22,906,843			$	30,468,476			$	47,621,001			$	58,234,788

Schedule of Number of Common Shares Issuable Upon Conversion or Exercise

The following table reflects the number of common shares issuable upon conversion or exercise.

		June 30,
		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
Common Stock Options			5,435,572				3,936,083
Common Stock Warrants			2,255,184				2,255,184
Performance Share Units			1,250,000				790,327
			15,011,682				13,169,423

Schedule of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share for the six months ended June 30, 2023 and 2022:

		Six Months ended
		June 30,
		2023				2022
Numerator
Net (loss)/ income		$	(5,527,870	)		$	12,008,286
Series 2 Convertible Preferred Stock dividends			(1,964,726	)			(1,219,554	)
Net (loss)/ income attributable to common and Series 1 Convertible Preferred Stock			(7,492,596	)			10,788,732
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 (loss)/ income attributable to common shares- Numerator for basic EPS			(7,492,596	)		$	10,677,274
Effect of dilutive securities:
Series 2 Convertible Preferred Stock dividends			-				1,219,554
Net (loss)/ income attributable to common shares after assumed conversions- Numerator for diluted EPS			(7,492,596	)			11,896,828
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS			21,751,807				21,576,312
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			21,751,807				28,193,268
Basic EPS		$	(0.34	)		$	0.49
Diluted EPS		$	(0.34	)		$	0.42

The following table sets forth the computation of basic and diluted earnings per common share for the three months ended June 30, 2023 and 2022:

		Three Months ended
		June 30,
		2023				2022
Numerator
Net (loss)/ income		$	(5,297,655	)		$	14,389,221
Series 2 Convertible Preferred Stock dividends			(992,493	)			(609,777	)
Net (loss)/ income attributable to common and Series 1 Convertible Preferred Stock			(6,290,148	)			13,779,444
Net income attributable to Series 1 Convertible Preferred Stock			-				(148,457	)
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock			-				6,291
Net (loss)/ income attributable to common shares- Numerator for basic EPS			(6,290,148	)			13,637,278
Effect of dilutive securities:
Series 2 Convertible Preferred Stock dividends			-				609,777
Net (loss)/ income attributable to common shares after assumed conversions – Numerator for diluted EPS		$	(6,290,148	)		$	14,247,055
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS			28,923,393				21,605,234
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
Common stock warrants			-				-
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator for diluted EPS			28,923,393				27,898,824
Basic EPS		$	(0.22	)		$	0.63
Diluted EPS		$	(0.22	)		$	0.51

Schedule of Fair Value Assets Measured on Recurring Basis

The Company’s financial instruments that are measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 is as follows:

		Fair Value Measurement Using												Carrying
Financial instruments – As of June 30, 2023 (1)		Level 1				Level 2				Level 3				Amount
Loan receivables at fair value		$	-			$	-			$	25,105,046			$	46,133,615
Promissory note related to acquisition			-				-				3,133,617				3,133,617

		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 loans payable under Basepoint Credit Agreement, 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

the following table presents a reconciliation of the beginning and ending balances for the years ended June 30, 2023 and December 31, 2022:

		Six Months Ended June 30, 2023				Year Ended December 31, 2022
Beginning balance		$	32,932,504			$	3,560,108
Purchases of loan participation			311,527				31,216,406
Obligation of loan participation			(7,128	)			12,931
Purchase of loan portfolio in Revolution Transaction			-				13,320,326
Loan originations			27,923,504				5,519,303
Interest and fees(1)			8,528,767				16,680,080
Collections			(43,747,080	)			(27,816,669	)
Net charge off (1)			(8,915,014	)			(10,653,751	)
Net change in fair value(1)			8,077,966				1,093,770
Ending balance		$	25,105,046			$	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

the following table presents quantitative information about the inputs used in the fair value measurement as of June 30, 2023 and December 31, 2022:

		June 30, 2023												December 31, 2022
		Minimum				Maximum				Weighted Average(2)				Minimum				Maximum				Weighted Average
Estimated losses(1)			0.9	%			92.5	%			50.8	%			2.0	%			92.4	%			40.8	%
Servicing costs			-				-				4.9	%			-				-				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

Other relevant data as of June 30, 2023 and December 31, 2022 concerning loan receivables at fair value are as follows:

		June 30, 2023				December 31, 2022
Aggregate fair value of loan receivables that are 90 days or more past due		$	15,308,976			$	7,147,585
Unpaid principal balance of loan receivables that are 90 days or more past due			37,950,094				19,834,547
Aggregate fair value of loan receivables in non-accrual status			15,159,360				6,947,224

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