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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Summary of Significant Accounting Policies [Abstract]

Schedule of Lease Receivables Balances

The lease receivables balances consisted of the following as of June 30, 2024 and December 31, 2023:

		June 30, 2024				December 31, 2023
Lease receivables		$	90,159,481			$	64,749,918
Allowance for doubtful accounts			(33,008,354	)			(19,954,828	)
Lease receivables, net		$	57,151,127			$	44,795,090

Schedule of Lease Receivables Balances Charged Off Against the Allowance

		Six Months Ended June 30, 2024				Year Ended December 31, 2023
Beginning balance		$	19,954,828			$	13,078,800
Provision			17,290,476				42,505,647
Accounts written off			(4,236,950	)			(35,629,619	)
Ending balance		$	33,008,354			$	19,954,828

Schedule of Net Lease Merchandise Balances

The net lease merchandise balances consisted of the following as of June 30, 2024 and December 31, 2023:

		June 30, 2024				December 31, 2023
Lease merchandise at cost		$	48,811,580			$	49,687,498
Accumulated depreciation and impairment reserve			(22,955,038	)			(20,556,058	)
Lease merchandise, net		$	25,856,542			$	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 consolidated statements of operations is shown below:

		Three Months ended June 30,								Six Months ended June 30,
		2024				2023				2024				2023
Lease billings and accruals		$	34,686,893			$	32,501,656			$	69,971,769			$	66,756,740
Provision for doubtful accounts			(7,806,427	)			(10,847,413	)			(17,290,476	)			(22,085,828	)
Gain on sale of lease receivables			28,525				1,252,600				61,434				2,950,089
Lease placement collections			165,057				-				165,057				-
Lease revenues and fees		$	27,074,048			$	22,906,843			$	52,907,784			$	47,621,001

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,
		2024				2023
Series 1 Convertible Preferred Stock			225,231				225,231
Series 2 Convertible Preferred Stock			5,845,695				5,845,695
Common Stock Options			4,397,447				5,435,572
Common Stock Warrants			2,255,184				2,255,184
Performance Share Units			937,499				1,250,000
			13,661,056				15,011,682

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 six months ended June 30, 2024 and 2023:

		Six Months ended
		June 30,
		2024				2023
Numerator
Net loss		$	(1,817,238	)		$	(5,527,870	)
Series 2 Convertible Preferred Stock dividends			(2,161,198	)			(1,964,726	)
Net loss attributable to common and Series 1 Convertible Preferred Stock			(3,978,436	)			(7,492,596	)
Net income attributable to Series 1 Convertible Preferred Stock			-				-
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock			-				-
Net loss attributable to common shares- Numerator for basic EPS			(3,978,436	)		$	(7,492,596	)
Effect of dilutive securities:
Series 2 Convertible Preferred Stock dividends			-				-
Net loss attributable to common shares after assumed conversions- Numerator for diluted EPS			(3,978,436	)			(7,492,596	)
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS			21,527,869				21,751,807
Effect of dilutive securities:
Series 2 Convertible Preferred Stock			-				-
Series 1 Convertible Preferred Stock			-				-
Common stock options and performance share units			-				-
Common stock warrants			-				-
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS			21,527,869				21,751,807
Basic EPS		$	(0.18	)		$	(0.34	)
Diluted EPS		$	(0.18	)		$	(0.34	)

The following table sets forth the computation of basic and diluted earnings per common share for the three months ended June 30, 2024 and 2023:

		Three Months ended
		June 30,
		2024				2023
Numerator
Net loss		$	(1,603,059	)		$	(5,297,655	)
Series 2 Convertible Preferred Stock dividends			(1,091,742	)			(992,493	)
Net loss attributable to common and Series 1 Convertible Preferred Stock			(2,694,801	)			(6,290,148	)
Net income attributable to Series 1 Convertible Preferred Stock			-				-
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock			-				-
Net loss attributable to common shares- Numerator for basic EPS			(2,694,801	)			(6,290,148	)
Effect of dilutive securities:
Series 2 Convertible Preferred Stock dividends			-				-
Net loss attributable to common shares after assumed conversions – Numerator for diluted EPS		$	(2,694,801	)		$	(6,290,148	)
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS			21,469,720				21,752,304
Effect of dilutive securities
Series 2 Convertible Preferred Stock			-				-
Series 1 Convertible Preferred Stock			-				-
Common stock options and performance share units			-				-
Common stock warrants			-				-
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator for diluted EPS			21,469,720				21,752,304
Basic EPS		$	(0.13	)		$	(0.29	)
Diluted EPS		$	(0.13	)		$	(0.29	)

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 June 30, 2024 and December 31, 2023 is as follows:

		Fair Value Measurement Using												Carrying
Financial instruments – As of June 30, 2024 (1)		Level 1				Level 2				Level 3				Amount
Loan receivables at fair value		$	-			$	-			$	40,085,656			$	48,618,482

		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 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

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 six months ended June 30, 2024 and  the year ended December 31, 2023:

		Six Months Ended June 30, 2024				Year Ended December 31, 2023
Beginning balance		$	35,794,290			$	32,932,504
Purchases of loan participation			1,058,998				389,949
Obligation of loan participation			-				(12,931	)
Loan originations			26,200,446				57,554,746
Interest and fees(1)			5,746,776				14,801,188
Collections			(32,554,732	)			(80,089,020	)
Net charge off (1)			(2,411,225	)			(11,041,155	)
Net change in fair value(1)			6,251,103				21,259,009
Ending balance		$	40,085,656			$	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 June 30, 2024 and December 31, 2023:

		June 30, 2024												December 31, 2023
		Minimum				Maximum				Weighted Average(2)				Minimum				Maximum				Weighted Average
Estimated losses(1)			0	%			92.4	%			21.4	%			0	%			92.5	%			28.9	%
Servicing costs			-				-				4.4	%			-				-				4.7	%
Discount rate			-				-				20.5	%			-				-				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 June 30, 2024 and December 31, 2023 concerning loan receivables at fair value are as follows:

		June 30, 2024				December 31, 2023
Aggregate fair value of loan receivables that are 90 days or more past due		$	33,104,613			$	27,828,083
Unpaid principal balance of loan receivables that are 90 days or more past due			42,613,754				41,208,009
Aggregate fair value of loan receivables in non-accrual status			33,119,327				27,764,926

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