XML 37 R27.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Summary of Significant Accounting Policies (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2024
Summary of Significant Accounting Policies [Abstract] |
Schedule of Lease Receivables Balances | The lease receivables balances consisted of the following as of March 31, 2024 and December 31, 2023:
|  | March 31, 2024 |  |  | December 31, 2023 |
Lease receivables |  | $ | 76,748,221 |  |  | $ | 64,749,918 |
Allowance for doubtful accounts |  |  | (27,432,189 | ) |  |  | (19,954,828 | )
Lease receivables, net |  | $ | 49,316,032 |  |  | $ | 44,795,090 |
Schedule of Lease Receivables Balances Charged Off Against the Allowance | Lease receivables balances charged off against the allowance were $2,006,688 for the three months ended March 31, 2024, and $18,971,772 for the three months ended March 31, 2023.
|  | Three Months Ended March 31, 2024 |  |  | Year Ended December 31, 2023 |
Beginning balance |  | $ | 19,954,828 |  |  | $ | 13,078,800 |
Provision |  |  | 9,484,049 |  |  |  | 42,505,647 |
Accounts written off |  |  | (2,006,688 | ) |  |  | (35,629,619 | )
Ending balance |  | $ | 27,432,189 |  |  | $ | 19,954,828 |
Schedule of Net Lease Merchandise Balances | The net lease merchandise balances consisted of the following as of March 31, 2024 and December 31, 2023:
|  | March 31, 2024 |  |  | December 31, 2023 |
Lease merchandise at cost |  | $ | 48,102,424 |  |  | $ | 49,687,498 |
Accumulated depreciation and impairment reserve |  |  | (22,205,914 | ) |  |  | (20,556,058 | )
Lease merchandise, net |  | $ | 25,896,510 |  |  | $ | 29,131,440 |
Schedule of Lessor Revenues and Fees | The breakout of lease revenues and fees, net of lessor bad debt expense, that ties to the condensed consolidated statements of operations is shown below:
|  | Three Months ended March 31, |
|  | 2024 |  |  | 2023 |
Lease billings and accruals |  | $ | 35,284,876 |  |  | $ | 34,255,083 |
Provision for doubtful accounts |  |  | (9,484,049 | ) |  |  | (11,238,415 | )
Gain on sale of lease receivables |  |  | 32,909 |  |  |  | 1,697,490 |
Lease revenues and fees |  | $ | 25,833,736 |  |  | $ | 24,714,158 |
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.
|  | Three Months ended |
|  | March 31, |
|  | 2024 |  |  | 2023 |
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 |  |  | 4,397,447 |  |  |  | 3,917,728 |
Common Stock Warrants |  |  | 2,255,184 |  |  |  | 2,255,184 |
Performance Share Units |  |  | 1,250,000 |  |  |  | 790,327 |
|  |  | 13,973,557 |  |  |  | 13,151,068 |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2024 and 2023:
|  | Three Months ended |
|  | March 31, |
|  | 2024 |  |  | 2023 |
Numerator |  |  |  |  |  |
Net loss |  | $ | (214,179 | ) |  | $ | (230,215 | )
Series 2 Convertible Preferred Stock dividends |  |  | (1,069,456 | ) |  |  | (972,233 | )
Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS |  | $ | (1,283,635 | ) |  | $ | (1,202,448 | )
Denominator |  |  |  |  |  |  |  |
Weighted average of common shares outstanding- Denominator for basic and diluted EPS |  |  | 21,586,019 |  |  |  | 21,751,304 |
Basic EPS |  | $ | (0.06 | ) |  |  | (0.06 | )
Diluted EPS |  | $ | (0.06 | ) |  |  | (0.06 | )
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The Company’s financial instruments that are measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 is as follows:
|  | Fair Value Measurement Using |  |  | Carrying |
Financial instruments – As of March 31, 2024 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Amount |
Loan receivables at fair value |  | $ | - |  |  | $ | - |  |  | $ | 39,457,230 |  |  | $ | 46,958,727 |
|  | Fair Value Measurement Using |  |  | Carrying |
Financial instruments – As of December 31, 2023 (1) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Amount |
Loan receivables at fair value |  | $ | - |  |  | $ | - |  |  | $ | 35,794,290 |  |  | $ | 48,076,705 |
(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 loan 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 | For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents a reconciliation of the beginning and ending balances for the three months period ended March 31, 2024 and the year ended December 31, 2023:
|  | Three Months Ended March 31, 2024 |  |  | Year Ended December 31, 2023 |
Beginning balance |  | $ | 35,794,290 |  |  | $ | 32,932,504 |
Purchases of loan participation |  |  | - |  |  |  | 389,949 |
Obligation of loan participation |  |  | - |  |  |  | (12,931 | )
Loan originations |  |  | 13,520,686 |  |  |  | 57,554,746 |
Interest and fees(1) |  |  | 3,154,357 |  |  |  | 14,801,188 |
Collections |  |  | (17,223,499 | ) |  |  | (80,089,020 | )
Net charge off (1) |  |  | (812,410 | ) |  |  | (11,041,155 | )
Net change in fair value(1) |  |  | 5,023,806 |  |  |  | 21,259,009 |
Ending balance |  | $ | 39,457,230 |  |  | $ | 35,794,290 |
(1) | Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statements of operations.
Schedule of Quantitative Information About the Inputs Used in Fair Value Measurement | For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents quantitative information about the inputs used in the fair value measurement as of March 31, 2024 and December 31, 2023:
|  | March 31, 2024 |  |  | December 31, 2023 |
|  | Minimum |  |  | Maximum |  |  | Weighted Average(2) |  |  | Minimum |  |  | Maximum |  |  | Weighted Average |
Estimated losses(1) |  |  | 0.0 | % |  |  | 92.5 | % |  |  | 20.1 | % |  |  | 0 | % |  |  | 92.5 | % |  |  | 28.9 | %
Servicing costs |  |  | - |  |  |  | - |  |  |  | 4.7 | % |  |  | - |  |  |  | - |  |  |  | 4.7 | %
Discount rate |  |  | - |  |  |  | - |  |  |  | 20.0 | % |  |  | - |  |  |  | - |  |  |  | 20.1 | %
(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 | Other relevant data as of March 31, 2024 and December 31, 2023 concerning loan receivables at fair value are as follows:
|  | March 31, 2024 |  |  | December 31, 2023 |
Aggregate fair value of loan receivables that are 90 days or more past due |  | $ | 32,430,470 |  |  | $ | 27,828,083 |
Unpaid principal balance of loan receivables that are 90 days or more past due |  |  | 40,942,867 |  |  |  | 41,208,009 |
Aggregate fair value of loan receivables in non-accrual status |  |  | 32,438,737 |  |  |  | 27,764,926 |

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 entire disclosure of lessor revenues and fees. + References No definition available. + Details
Name: | fpay_ScheduleOfLessorRevenuesAndFeesTableTextBlock
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://www.xbrl.org/2009/role/commonPracticeRef -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 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -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://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + 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 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 -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -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