Schedule of Notes Receivable |
As of December 31, 2021 and 2020, Sezzle’s notes receivable, related allowance for uncollectible accounts, and deferred net origination fees are recorded within the consolidated balance sheets as follows: | | | | | | | | | | 2021 | 2020 | Notes receivable, gross | $ | 162,341,675 | | $ | 95,398,668 | | Less allowance for uncollectible accounts: | | | Balance at beginning of year | (11,133,146) | | (3,461,837) | | Provision | (52,621,682) | | (19,587,918) | | Charge-offs, net of recoveries totaling $6,153,728 and $648,799, respectively | 40,640,655 | | 11,916,609 | | Total allowance for uncollectible accounts | (23,114,173) | | (11,133,146) | | Notes receivable, net of allowance | 139,227,502 | | 84,265,522 | | Deferred Sezzle income | (5,240,919) | | (3,458,222) | | Notes receivable, net | $ | 133,986,583 | | $ | 80,807,300 | |
As of December 31, 2021 and 2020, the balance of other receivables, net, on the consolidated balance sheets is comprised of the following: | | | | | | | | | | 2021 | 2020 | Account reactivation fees receivable, net | $ | 1,325,443 | | $ | 804,060 | | Receivables from merchants, net | 3,758,656 | | 599,246 | | Other receivables, net | $ | 5,084,099 | | $ | 1,403,306 | |
As of December 31, 2021 and 2020, Sezzle’s account reactivation fees receivable and related allowance for uncollectible accounts are recorded within the consolidated balance sheets as follows:
| | | | | | | | | | 2021 | 2020 | Account reactivation fees receivable, gross | $ | 3,016,514 | | $ | 1,875,648 | | Less allowance for uncollectible accounts: | | | Balance at start of period | (1,071,588) | | (483,518) | | Provision | (6,128,851) | | (2,347,733) | | Charge-offs, net of recoveries totaling $1,273,319 and $71,110, respectively | 5,509,368 | | 1,759,663 | | Total allowance for uncollectible accounts | (1,691,071) | | (1,071,588) | | Account reactivation fees receivable, net | $ | 1,325,443 | | $ | 804,060 | |
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Schedule of Gross Notes Receivable and Related Allowance by Aging |
The following table summarizes Sezzle’s gross notes receivable and related allowance for uncollectible accounts as of December 31, 2021 and 2020:
| | | | | | | | | | | | | | | | | | | | | | 2021 | 2020 | | Gross Receivables | Less Allowance | Net Receivables | Gross Receivables | Less Allowance | Net Receivables | Current | $ | 139,024,393 | | $ | (7,989,217) | | $ | 131,035,176 | | $ | 79,673,073 | | $ | (2,692,254) | | $ | 76,980,819 | | Days past due: | | | | | | | 1–28 | 12,263,154 | | (5,126,611) | | 7,136,543 | | 9,574,902 | | (3,616,327) | | 5,958,575 | | 29–56 | 5,266,164 | | (4,267,236) | | 998,928 | | 3,576,255 | | (2,646,627) | | 929,628 | | 57–90 | 5,787,964 | | (5,731,109) | | 56,855 | | 2,574,438 | | (2,177,938) | | 396,500 | | Total | $ | 162,341,675 | | $ | (23,114,173) | | $ | 139,227,502 | | $ | 95,398,668 | | $ | (11,133,146) | | $ | 84,265,522 | |
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