SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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9 Months Ended |
Sep. 30, 2024 |
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| Accounting Policies [Abstract] |
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| Schedule of Lease Receivables Balances |
The lease receivables balances consisted of the following as of September 30, 2024 and December 31, 2023: | | | | | | | | | | | | | September 30,
2024 | | December 31,
2023 | | | | | | Lease receivables | $ | 104,879,703 | | | $ | 64,749,918 | | | Allowance for doubtful accounts | (38,698,232) | | | (19,954,828) | | | Lease receivables, net | $ | 66,181,471 | | | $ | 44,795,090 | |
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| Schedule of Lease Receivables Balances Charged Off Against the Allowance |
| | | | | | | | | | | | | | Nine Months Ended
September 30,
2024 | | Year Ended
December 31,
2023 | | Beginning balance | $ | 19,954,828 | | | $ | 13,078,800 | | | Provision | 25,373,485 | | | 42,505,647 | | | Accounts written off | (6,630,081) | | | (35,629,619) | | | Ending balance | $ | 38,698,232 | | | $ | 19,954,828 | |
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| Schedule of Net Lease Merchandise Balances |
The net lease merchandise balances consisted of the following as of September 30, 2024 and December 31, 2023: | | | | | | | | | | | | | | September 30,
2024 | | December 31,
2023 | | Lease merchandise at cost | $ | 48,382,621 | | | $ | 49,687,498 | | | Accumulated depreciation and impairment reserve | (24,295,611) | | | (20,556,058) | | | Lease merchandise, net | $ | 24,087,010 | | | $ | 29,131,440 | |
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| 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
September 30, | | Nine Months Ended
September 30, | | 2024 | | 2023 | | 2024 | | 2023 | | Lease billings and accruals | $ | 36,381,080 | | | $ | 31,266,666 | | | $ | 106,352,849 | | | $ | 98,023,406 | | | Provision for doubtful accounts | (8,083,009) | | | (10,038,122) | | | (25,373,485) | | | (32,123,950) | | | Gain on sale of lease receivables | 15,791 | | | (146,345) | | | 77,225 | | | 2,803,745 | | | Lease placement collections | 50,328 | | | - | | | 215,384 | | | - | | | Lease revenues and fees | $ | 28,364,190 | | | $ | 21,082,199 | | | $ | 81,271,973 | | | $ | 68,703,201 | |
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| Schedule of Conversions of Stock |
The following table reflects the number of common shares issuable upon conversion or exercise. | | | | | | | | | | | | | September 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 | 5,073,447 | | 5,435,572 | | Common Stock Warrants | 2,255,184 | | 2,255,184 | | Performance Share Units | 937,499 | | 1,250,000 | | 14,337,056 | | 15,011,682 |
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| 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 nine months ended September 30, 2024 and 2023: | | | | | | | | | | | | | Nine Months Ended
September 30, | | 2024 | | 2023 | | Numerator | | | | | Net income/ (loss) | $ | 549,147 | | | $ | (4,587,769) | | | Series 2 Convertible Preferred Stock dividends | (3,337,600) | | | (3,034,182) | | | Net loss attributable to common and Series 1 Convertible Preferred Stock | (2,788,453) | | | (7,621,951) | | | 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 | (2,788,453) | | | (7,621,951) | | | Effect of dilutive securities: | | | | | Series 2 Convertible Preferred Stock dividends | - | | | - | | | Net loss attributable to common shares after assumed conversions- Numerator for diluted EPS | $ | (2,788,453) | | | $ | (7,621,951) | | | Denominator | | | | | Weighted average of common shares outstanding- Denominator for basic EPS | 21,547,702 | | | 21,740,027 | | | 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 | 21,547,702 | | | 21,740,027 | | | Basic EPS | $ | (0.13) | | | $ | (0.35) | | | Diluted EPS | $ | (0.13) | | | $ | (0.35) | |
The following table sets forth the computation of basic and diluted earnings per common share for the three months ended September 30, 2024 and 2023: | | | | | | | | | | | | | Three Months Ended
September 30, | | 2024 | | 2023 | | Numerator | | | | | Net income | $ | 2,366,384 | | | $ | 940,101 | | | Series 2 Convertible Preferred Stock dividends | (1,176,402) | | | (1,069,456) | | | Net income/ (loss) attributable to common and Series 1 Convertible Preferred Stock | 1,189,982 | | | (129,355) | | | Net income attributable to Series 1 Convertible Preferred Stock | (24,435) | | | - | | | Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock | 12,147 | | | - | | | Net income/ (loss) attributable to common shares- Numerator for basic EPS | 1,177,694 | | | (129,355) | | | Effect of dilutive securities: | | | | | Series 2 Convertible Preferred Stock dividends | - | | | - | | | Net income/ (loss) attributable to common shares after assumed conversions – Numerator for diluted EPS | $ | 1,177,694 | | | $ | (129,355) | | | Denominator | | | | | Weighted average of common shares outstanding- Denominator for basic EPS | 21,586,935 | | | 21,716,852 | | | Effect of dilutive securities | | | | | Series 2 Convertible Preferred Stock | - | | | - | | | Series 1 Convertible Preferred Stock | 225,231 | | | - | | | Common stock options and performance share units | 419,622 | | | - | | | Common stock warrants | - | | | - | | | Adjusted weighted average of common shares outstanding and assumed conversions- Denominator for diluted EPS | 22,231,788 | | | 21,716,852 | | | Basic EPS | $ | 0.05 | | | $ | (0.01) | | | Diluted EPS | $ | 0.05 | | | $ | (0.01) | |
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| 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 September 30, 2024 and December 31, 2023 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement Using | | Carrying
Amount | Unpaid
Principal
Balance | | Financial instruments – As of September 30, 2024 (1) | | Level 1 | | Level 2 | | Level 3 | | | Loan receivables at fair value | | $ | - | | | $ | - | | | $ | 47,116,140 | | | $ | 47,116,140 | | $ | 85,301,661 | |
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Amount | Unpaid
Principal
Balance | | Financial instruments – As of December 31, 2023 (1) | | Level 1 | | Level 2 | | Level 3 | | | Loan receivables at fair value | | $ | - | | | $ | - | | | $ | 35,794,290 | | | $ | 35,794,290 | | $ | 48,076,705 | |
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| 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 nine months ended September 30, 2024 and the year ended December 31, 2023: | | | | | | | | | | | | | | Nine Months Ended
September 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 | 39,193,233 | | | 57,554,746 | | Interest and fees(1) | 8,527,443 | | | 14,801,188 | | | Collections | (47,564,200) | | | (80,089,020) | | Net charge off (1) | (2,833,156) | | | (11,041,155) | | Net change in fair value(1) | 12,939,532 | | | 21,259,009 | | | Ending balance | $ | 47,116,140 | | | $ | 35,794,290 | |
(1)Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statements of operations
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| 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 September 30, 2024 and December 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | | Minimum | | Maximum | | Weighted Average(2) | | Minimum | | Maximum | | Weighted
Average | Estimated losses(1) | 0 | % | | 93.9 | % | | 60.6 | % | | 0 | % | | 92.5 | % | | 28.9 | % | | Servicing costs | - | | | - | | | 4.1 | % | | - | | | - | | | 4.7 | % | | Discount rate | - | | | - | | | 20.3 | % | | - | | | - | | | 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.
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| Schedule of Concerning Loan Receivables at Fair Value |
Other relevant data as of September 30, 2024 and December 31, 2023 concerning loan receivables at fair value are as follows: | | | | | | | | | | | | | September 30,
2024 | | December 31,
2023 | | Aggregate fair value of loan receivables that are 90 days or more past due | $ | 39,728,088 | | | $ | 27,828,083 | | | Unpaid principal balance of loan receivables that are 90 days or more past due | $ | 77,354,984 | | | $ | 29,304,704 | | | Aggregate fair value of loan receivables in non-accrual status | $ | 39,906,943 | | | $ | 27,764,926 | |
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