0001213900-23-032044 | 10-K | XBRL Viewer

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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2022	Apr. 24, 2023	Jun. 30, 2022
Document Information Line Items
Entity Registrant Name	FLEXSHOPPER, INC.
Trading Symbol	FPAY
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		21,752,304
Entity Public Float			$ 11,240,000
Amendment Flag	false
Entity Central Index Key	0001397047
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	false
Document Annual Report	true
Document Transition Report	false
Entity File Number	001-37945
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5456087
Entity Address, Address Line One	901 Yamato Road
Entity Address, Address Line Two	Ste. 260
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	(855)
Local Phone Number	353-9289
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Auditor Firm ID	248
Auditor Name	EisnerAmper LLP
Auditor Location	Iselin, New Jersey

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash	$ 6,051,713	$ 4,986,559
Restricted cash	121,636	108,083
Lease receivables, net	35,540,043	25,473,154
Loan receivables at fair value	32,932,504	3,560,108
Prepaid expenses and other assets	3,489,136	1,823,256
Lease merchandise, net	31,550,441	40,942,112
Total current assets	109,685,473	76,893,272
Property and equipment, net	8,086,862	5,490,434
Right of use asset, net	1,406,270	1,553,330
Intangible assets, net	15,162,349	4,960
Other assets, net	1,934,728	870,060
Deferred tax asset, net	12,013,828
Total assets	148,289,510	84,812,056
CURRENT LIABILITIES:
Accounts payable	6,511,943	7,982,180
Accrued payroll and related taxes	310,820	391,078
Promissory notes to related parties, net of $0 at 2022 and $1,274 at 2021 of unamortized issuance costs, including accrued interest	1,209,455	1,053,088
Accrued expenses	3,988,093	2,987,646
Lease liability - current portion	208,001	172,732
Total current liabilities	12,228,312	12,586,724
Loan payable under credit agreement to beneficial shareholder, net of $352,252 at 2022 and $413,076 at 2021 of unamortized issuance costs	80,847,748	50,061,924
Promissory notes to related parties, net of current portion	10,750,000	3,750,000
Promissory note related to acquisition, net of $1,165,027 discount at 2022	3,158,471
Purchase consideration payable related to acquisition	8,703,684
Deferred income tax liability		495,166
Lease liabilities net of current portion	1,566,622	1,774,623
Total liabilities	117,254,837	68,668,437
STOCKHOLDERS’ EQUITY
Series 1 Convertible Preferred Stock, $0.001 par value - authorized 250,000 shares, issued and outstanding 170,332 shares at $5.00 stated value	851,660	851,660
Series 2 Convertible Preferred Stock, $0.001 par value - authorized 25,000 shares, issued and outstanding 21,952 shares at $1,000 stated value	21,952,000	21,952,000
Common stock, $0.0001 par value- authorized 40,000,000 shares, issued and outstanding 21,750,804 shares at December 31, 2022 and 21,442,278 shares at December 31, 2021	2,176	2,144
Additional paid in capital	39,819,420	38,560,117
Accumulated deficit	(31,590,583)	(45,222,302)
Total stockholders’ equity	31,034,673	16,143,619
Total liabilities and stockholders' equity	$ 148,289,510	$ 84,812,056

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Promissory notes to related parties net unamortized issuance costs (in Dollars)	$ 0	$ 1,274
Loan payable under credit agreement to beneficial shareholder, net (in Dollars)	352,252	$ 413,076
Net of discount (in Dollars)	$ 1,165,027
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	21,750,804	21,442,278
Common stock, shares outstanding	21,750,804	21,442,278
Series 1 Convertible Preferred Stock
Convertible preferred stock, stated value (in Dollars)	$ 5	$ 5
Convertible preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	250,000	250,000
Convertible preferred stock, shares issued	170,332	170,332
Convertible preferred stock, shares outstanding	170,332	170,332
Series 2 Convertible Preferred Stock
Convertible preferred stock, stated value (in Dollars)	$ 1,000	$ 1,000
Convertible preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	25,000	25,000
Convertible preferred stock, shares issued	21,952	21,952
Convertible preferred stock, shares outstanding	21,952	21,952

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Lease revenues and fees, net	$ 105,936,072	$ 124,505,432
Loan revenues and fees, net of changes in fair value	7,120,101	921,324
Total revenues	113,056,173	125,426,756
Costs and expenses:
Depreciation and impairment of lease merchandise	72,556,431	78,669,393
Loan origination costs and fees	3,384,013	508,493
Marketing	11,031,695	9,129,062
Salaries and benefits	10,991,477	11,489,208
Operating expenses	21,395,767	18,265,781
Total costs and expenses	119,359,383	118,061,937
Operating (loss)/ income	(6,303,210)	7,364,819
Gain on extinguishment of debt		1,931,825
Gain on bargain purchase	14,461,274
Interest expense including amortization of debt issuance costs	(11,161,396)	(5,238,560)
(Loss)/income before income taxes	(3,003,332)	4,058,084
Benefit /(expense) from income taxes	16,635,051	(785,310)
Net income	13,631,719	3,272,774
Dividends on Series 2 Convertible Preferred Shares	3,730,580	2,439,099
Net income attributable to common and Series 1 Convertible Preferred shareholders	$ 9,901,139	$ 833,675
Basic and diluted income per common share:
Basic (in Dollars per share)	$ 0.45	$ 0.04
Diluted (in Dollars per share)	$ 0.44	$ 0.04
WEIGHTED AVERAGE COMMON SHARES:
Basic (in Shares)	21,646,896	21,387,960
Diluted (in Shares)	22,425,354	23,227,964

Consolidated Statements of Changes in Stockholders’ Equity - USD ($)	Series 1 Convertible Preferred Stock	Series 2 Convertible Preferred Stock	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2020	$ 851,660	$ 21,952,000	$ 2,136	$ 36,843,326	$ (48,495,076)	$ 11,154,046
Balance (in Shares) at Dec. 31, 2020	170,332	21,952	21,359,945
Provision for compensation expense related to stock-based compensation				1,125,819		1,125,819
Issuance of warrants in connection with consulting agreements				522,808		522,808
Exercise of stock options into common stock			$ 8	68,164		68,172
Exercise of stock options into common stock (in Shares)			82,333
Net income					3,272,774	3,272,774
Balance at Dec. 31, 2021	$ 851,660	$ 21,952,000	$ 2,144	38,560,117	(45,222,302)	16,143,619
Balance (in Shares) at Dec. 31, 2021	170,332	21,952	21,442,278
Provision for compensation expense related to stock-based compensation				997,830		997,830
Exercise of stock options into common stock			$ 32	261,473		261,505
Exercise of stock options into common stock (in Shares)			308,526
Net income					13,631,719	13,631,719
Balance at Dec. 31, 2022	$ 851,660	$ 21,952,000	$ 2,176	$ 39,819,420	$ (31,590,583)	$ 31,034,673
Balance (in Shares) at Dec. 31, 2022	170,332	21,952	21,750,804

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 13,631,719	$ 3,272,774
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and impairment of lease merchandise	72,556,431	78,669,393
Other depreciation and amortization	4,769,614	2,875,902
Amortization of debt issuance costs	228,843	220,816
Amortization of discount on the promissory note related to acquisition	19,747
Compensation expense related to stock-based compensation and warrants	997,830	1,648,627
Provision for doubtful accounts	57,420,480	40,342,618
Gain on sale of lease receivables	8,821,106
Interest in kind added to promissory notes balance	155,093	9,460
Deferred income tax	(17,282,364)	495,166
Gain on debt extinguishment		(1,931,825)
Gain on bargain purchase	(14,461,274)
Net changes in the fair value of loan receivables at fair value	9,559,979	(248,984)
Changes in operating assets and liabilities, net of effects of acquisition:
Lease receivables	(76,308,475)	(56,738,233)
Loan receivables at fair value	(25,612,049)	(3,221,679)
Prepaid expenses and other assets	(1,665,880)	(87,394)
Lease merchandise	(63,164,760)	(76,789,165)
Security deposits	(4,956)	(8,338)
Purchase consideration payable related to acquisition	164,102
Lease liabilities	(14,488)	(5,811)
Accounts payable	(1,976,844)	74,561
Accrued payroll and related taxes	(80,258)	(165,461)
Accrued expenses	1,009,468	331,542
Net cash used in operating activities	(31,236,936)	(11,256,031)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired in business combination	2,938,355
Purchases of property and equipment, including capitalized software costs	(6,498,115)	(4,065,384)
Purchases of data costs	(1,640,885)	(884,160)
Net cash used in investing activities	(5,200,645)	(4,949,544)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loan payable under credit agreement	36,455,000	19,850,000
Repayment of loan payable under credit agreement	(5,730,000)	(6,575,000)
Debt issuance related costs	(166,745)	(565,273)
Proceeds from exercise of stock options	261,505	68,172
Proceeds from promissory notes to related parties	7,000,000
Principal payment under finance lease obligation	(11,184)	(7,707)
Repayment of purchase consideration payable related to acquisition	(283,266)
Repayment of installment loan	(9,022)	(11,207)
Net cash provided by financing activities	37,516,288	12,758,985
INCREASE / (DECREASE) IN CASH and RESTRICTED CASH	1,078,707	(3,446,590)
CASH and RESTRICTED CASH, beginning of period	5,094,642	8,541,232
CASH and RESTRICTED CASH, end of period	6,173,349	5,094,642
Supplemental cash flow information:
Interest paid	10,289,334	$ 4,945,690
Acquisition of loan receivables at fair value	13,320,326
Acquisition of property and equipment	136,249
Acquisition of intangible assets	15,307,894
Acquisition of purchase consideration payable related to acquisition	8,539,582
Acquisition of accounts payable	506,607
Acquisition of deferred tax liability	4,773,370
Issuance of promissory note related to acquisition	$ 3,421,991

Business

12 Months Ended

Dec. 31, 2022

Business Combinations [Abstract]

BUSINESS

1. BUSINESS

FlexShopper, Inc. (the “Company”) is a corporation organized under the laws of the State of Delaware in 2006. The Company owns 100% of FlexShopper, LLC, a North Carolina limited liability company, owns 100% of FlexLending, LLC, a Delaware limited liability company, and owns 100% of Flex Revolution, LLC, a Delaware limited liability company. The Company is a holding corporation with no operations except for those conducted by its subsidiaries FlexShopper, LLC, FlexLending, LLC and Flex Revolution, LLC.

In January 2015, in connection with the Credit Agreement entered in March 2015 (see Note 7), FlexShopper 1 LLC and FlexShopper 2 LLC were organized as wholly owned Delaware subsidiaries of FlexShopper LLC to conduct operations. FlexShopper Inc, together with its subsidiaries, are hereafter referred to as “FlexShopper.”

FlexShopper, LLC provides durable goods to consumers on a lease-to-own basis (“LTO”). After receiving a signed consumer lease, the Company then funds the leased item by purchasing the item from the Company’s merchant partner and leasing it to the consumer.

FlexLending, LLC participates in a consumer finance program offered by a third-party bank partner. The third-party originates unsecured consumer loans through strategic sales channels. Under this program, FlexLending, LLC purchases a participation interest in each of the loans originated by the third-party.

Flex Revolution, LLC operates a direct origination model for consumers in 11 states. In the direct origination model, applicants who apply and obtain a loan through our platform are underwritten, approved, and funded directly by the Company.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation - The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany balances and transactions.

Estimates - The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Segment Information - Operating segments are defined as components of an enterprise about which separate financial information is available between which resources are allocated by the chief operating decision maker. The Company’s chief operating decision maker is the chief executive officer. The Company has one operating and reportable segment that include all the Company’s financial services, which is consistent with the current organizational structure.

Cash and Cash Equivalents – The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company maintains cash and cash equivalents with high-quality financial institutions, which at times exceed the Federal Deposit Insurance Corporation insurance limits. While the Company monitors daily the cash balances in its operating accounts and adjusts the balances as appropriate, these balances could be impacted if one or more of the financial institutions with which the Company deposits fails or is subject to other adverse conditions in the financial or credit markets. To date, the Company has experienced no loss or lack of access to its invested cash or cash equivalents; however, no assurance can be provided that access to invested cash and cash equivalents will not be impacted by adverse conditions in the financial and credit markets. As of December 31, 2022 and 2021, the Company had no cash equivalents.

Restricted Cash – The Company classifies all cash whose use is limited by contractual provisions as restricted cash. Restricted cash as of December 31, 2022 and December 31, 2021 consists primarily of cash required by our third-party banking partner to cover obligations related to loan participation.

The reconciliation of cash and restricted cash is as follows:

	December 31, 2022		December 31, 2021

Cash	$	6,051,713	$	4,986,559
Restricted cash		121,636		108,083
Total cash and restricted cash	$	6,173,349	$	5,094,642

Revenue Recognition - Merchandise is leased to customers pursuant to lease purchase agreements which provide for weekly lease terms with non-refundable lease payments. Generally, the customer has the right to acquire title either through a 90-day same as cash option, an early purchase option, or through completion of all required lease payments, generally 52 weeks. On any current lease, customers have the option to cancel the agreement in accordance with lease terms and return the merchandise. Customer agreements are accounted for as operating leases with lease revenues recognized in the month they are due on the accrual basis of accounting. Revenue for lease payments received prior to their due date is deferred and is recognized as revenue in the period to which the payments relate. Revenues from leases and sales are reported net of sales taxes.

Lease Receivables and Allowance for Doubtful Accounts - FlexShopper seeks to collect amounts owed under its leases from each customer on a weekly or biweekly basis by charging their bank accounts or credit cards. Lease receivables are principally comprised of lease payments currently owed to FlexShopper which are past due, as FlexShopper has been unable to successfully collect in the aforementioned manner and therefore the Company has an in-house and near-shore team to collect on the past due amounts. FlexShopper maintains an allowance for doubtful accounts, under which FlexShopper’s policy is to record an allowance for estimated uncollectible charges, primarily based on historical collection experience that considers both the aging of the lease and the origination channel. Other qualitative factors are considered in estimating the allowance, such as seasonality, underwriting changes and other business trends. We believe our allowance is adequate to absorb all expected losses. The lease receivables balances consisted of the following as of December 31, 2022 and December 31, 2021:

	December 31, 2022			December 31, 2021

Lease receivables	$	48,618,843		$	53,176,432
Allowance for doubtful accounts		(13,078,800	)		(27,703,278	)
Lease receivables, net	$	35,540,043		$	25,473,154

The allowance is a significant percentage of the balance because FlexShopper does not charge off any customer account until it has exhausted all collection efforts with respect to each account, including attempts to repossess items. Lease receivables balances charged off against the allowance were $72,044,958 for twelve months ended December 31, 2022, and $34,777,881 for twelve months ended December 31, 2021.

	Year Ended December 31, 2022			Year Ended December 31, 2021
Beginning balance	$	27,703,278		$	22,138,541
Provision		57,420,480			40,342,618
Accounts written off		(72,044,958	)		(34,777,881	)
Ending balance	$	13,078,800		$	27,703,278

Lease Merchandise, net - Until all payment obligations for ownership are satisfied under the lease agreement, the Company maintains ownership of the lease merchandise. Lease merchandise consists primarily of residential furniture, consumer electronics, computers, appliances and household accessories and is recorded at cost net of accumulated depreciation. The Company depreciates leased merchandise using the straight-line method over the applicable agreement period for a consumer to acquire ownership, generally twelve months with no salvage value. Upon transfer of ownership of merchandise to customers resulting from satisfaction of their lease obligations, the Company reflects the undepreciated portion of the lease merchandise as depreciation expense and the related cost and accumulated depreciation are removed from lease merchandise. For lease merchandise returned either voluntarily or through repossession, the Company provides an impairment reserve for the undepreciated balance of the merchandise net of any estimated salvage value with a corresponding charge to depreciation and impairment of lease merchandise. The cost, accumulated depreciation and impairment reserve related to such merchandise are written off upon determination that no salvage value is obtainable.

The net lease merchandise balances consisted of the following as of December 31, 2022 and December 31, 2021:

	December 31, 2022			December 31, 2021
Lease merchandise at cost	$	62,379,920		$	72,159,063
Accumulated depreciation and impairment reserve		(30,829,479	)		(31,216,951	)
Lease merchandise, net	$	31,550,441		$	40,942,112

Loan receivables at fair value – The Company elected the fair value option on its entire loan and loan participation receivables portfolio. As such, loan receivables are carried at fair value in the consolidated balance sheets with changes in fair value recorded in the consolidated statements of operations. Accrued and unpaid interest and fees are included in loan receivables at fair value in the consolidated balance sheets. Management believes the reporting of these receivables at fair value method closely approximates the true economics of the loan.

Interest and fees are discontinued when loan receivables become contractually 120 or more days past due. The Company charges-off loans at the earlier of when the loans are determined to be uncollectible or when the loans are 120 days contractually past due. Recoveries on loan receivables that were previously charged off are recognized when cash is received. Changes in the fair value of loan receivables include the impact of current period charge offs associated with these receivables.

The Company estimates the fair value of the loan receivables using a discounted cash flow analysis at an individual loan level to more accurately predict future payments. The Company adjusts expected cash flows for estimated losses and servicing costs over the estimated duration of the underlying assets. These adjustments are determined using historical data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Model results may be adjusted by management if the Company does not believe the output reflects the fair value of the instrument, as defined under U.S. GAAP. The models are updated at each measurement date to capture any changes in internal factors such as nature, term, volume, payment trends, remaining time to maturity, and portfolio mix, as well as changes in underwriting or observed trends expected to impact future performance.

Further details concerning loan receivables at fair value are presented within “Fair Value Measurement” section in this Note.

Net changes in the fair value of loan receivables included in the consolidated statements of operations in the line “loan revenues and fees, net of changes in fair value” were a loss of $9,559,979 for the twelve months ended December 31, 2022 and a gain of $248,984 for the twelve months ended December 31, 2021.

Lease Accounting - The Company accounts for leases in accordance with Accounting Standards Codification (ASC) Topic 842 Leases (Topic 842). Under Topic 842, lessees are required to recognize leases at the commencement date as a lease liability, which is a lessee’s obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee’s right to use or control the use of a specified asset for the lease term. For more information on leases for which the Company is lessee, refer to Note 3 to the consolidated financial statements. Under the same Topic, lessors are also required to classify leases. All customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases as a lessor. An operating lease with a customer results in the recognition of lease income on a straight-line basis, while the underlying leased asset remains on the lessor’s balance sheet and continues to depreciate. The breakout of lease revenues and fees, net of lessor bad debt expense, that ties to the consolidated statements of operations is shown below:

	Year ended December 31,
	2022			2021
Lease billings and accruals	$	154,535,446		$	164,848,050
Provision for doubtful accounts		(57,420,480	)		(40,342,618	)
Gain on sale of lease receivables		8,821,106			-
Lease revenues and fees	$	105,936,072		$	124,505,432

Deferred Debt Issuance Costs - Debt issuance costs incurred in conjunction with the Credit Agreement entered into on March 6, 2015 and subsequent amendments are offset against the outstanding balance of the loan payable and are amortized using the straight-line method over the remaining term of the related debt, which approximates the effective interest method. Amortization, which is included in interest expense, was $227,568 for twelve months ended December 31, 2022 and $213,814 for twelve months ended December 31, 2021.

Debt issuance costs incurred in conjunction with the subordinated Promissory Notes to related parties are offset against the outstanding balance of the loan payable and are amortized using the straight-line method over the remaining term of the related debt, which approximates the effective interest method. Amortization, which is included in interest expense, was $1,274 for twelve months ended December 31, 2022 and $7,002 for twelve months ended December 31, 2021

Intangible Assets – Intangible assets consist of a patent on the Company’s LTO payment method at check-out for third party e-commerce sites and of assets acquired in connection with Revolution Transaction (See Note 14). The patent is stated at cost less accumulated amortization. Patent costs are amortized by using the straight-line method over the legal life, or if shorter, the useful life of the patent, which has been estimated to be ten years.

In the Revolution Transaction, the Company identified intangible assets for the franchisee contract-based agreements, the related non-compete agreements, the Liberty Loan brand, the non-contractual customer relationships associated with the corporate locations and the list of previous customers. The franchisee contract-based agreements relate to the assignment of agreements with Liberty Tax franchisees in which their locations and staff are used to assist in the origination and servicing of a loan portfolio in exchange for a share of the net revenue. In addition, there is non-compete embedded in these agreements. The Liberty Loan brand intangible asset relates to the value associated with the established brands acquired in the transaction that would otherwise need to be licensed. The non-contractual customer relationship intangible asset is the value of the customer relationships for the corporate stores acquired in the transaction. The customer list intangible asset relates to the value of valuable customers information that will be used to market additional products. The franchisee contract-based agreement, the Liberty Loan brand and the non-compete intangible assets are amortized on a straight-line basis over the expected useful life of the assets of ten years. The non-contractual customer relationship intangible asset is amortized on a straight-line basis over a five-year estimated useful life. The customer list is amortized on a straight-line basis over a three-year estimated useful life.

For intangible assets with definite lives, tests for impairment must be performed if conditions exist that indicate the carrying amount may not be recoverable. Intangible assets amortization expense was $150,505 for the twelve months ended December 31, 2022 and $3,076 for the twelve months ended December 31, 2021.

Property and Equipment - Property and equipment are recorded at cost less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the respective assets on a straight-line basis, ranging from 2 to 7 years. Repairs and maintenance expenditures are expensed as incurred, unless such expenses extend the useful life of the asset, in which case they are capitalized. Depreciation and amortization expense for property and equipment was $4,037,936 and $2,786,109 for the twelve months ended December 31, 2022 and 2021, respectively

Software Costs – Costs related to developing or obtaining internal-use software incurred during the preliminary project and post-implementation stages of an internal use software project are expensed as incurred and certain costs incurred in the project’s application development stage are capitalized as property and equipment. The Company expenses costs related to the planning and operating stages of a website. Costs associated with minor enhancements and maintenance for the website are included in expenses as incurred. Direct costs incurred in the website’s development stage are capitalized as property and equipment. Capitalized software costs amounted to $5,240,437 for twelve months ended December 31, 2022 and $2,816,939 for twelve months ended December 31, 2021. The Company wrote off $4,361 of capitalized development costs in 2021. Capitalized software amortization expense was $2,907,435 for twelve months ended December 31, 2022 and $2,317,626 twelve months ended December 31, 2021.

Data Costs - The Company buys data from different vendors upon receipt of an application. The data costs directly used to make underwriting decisions are expensed as incurred. Certain data costs that are probable to provide future economic benefit to the Company are capitalized and amortized on a straight-line basis over their estimated useful lives. The probability to provide future economic benefit of the data cost assets is estimated based upon future usage of the information in different areas and products of the Company. At the beginning of the third quarter of 2021, the Company made several changes including the implementation of a more disciplined process around data procurement and storage. Those improvements triggered a change in the estimate of the probability to provide future economic benefit of some data cost.

Capitalized data costs amounted to $1,640,885 for twelve months ended December 31, 2022 and $884,160 for twelve months ended December 31, 2021. Capitalized data costs amortization expense was $581,173 for twelve months ended December 31, 2022 and $86,717 for twelve months ended December 31, 2021.

Capitalized data costs net of its amortization are included in the consolidated balance sheets in other assets, net.

Operating Expenses - Operating expenses include corporate overhead expenses such as salaries, stock-based compensation, insurance, occupancy, and other administrative expenses.

Marketing Costs - Marketing costs, primarily consisting of advertising, are charged to expense as incurred. Direct acquisition costs, primarily consisting of commissions earned based on lease originations, are capitalized and amortized over the life of the lease.

Per Share Data - Per share data is computed by use of the two-class method as a result of outstanding Series 1 Convertible Preferred Stock, which participates in dividends with the common stock and accordingly has participation rights in undistributed earnings as if all such earnings had been distributed during the period (see Note 8). Under such method income available to common shareholders is computed by deducting both dividends declared or, if not declared, accumulated on Series 2 Convertible Preferred Stock from net income. Loss attributable to common shareholders is computed by increasing net loss by such dividends. Where the Company has a net loss, as the participating Series 1 Convertible Preferred Stock has no contractual obligation to share in the losses of the Company, there is no loss allocation between common stock and Series 1 Convertible Preferred Stock.

Basic earnings per common share is computed by dividing net income/ (loss) available to common shareholders reduced by any dividends paid or declared on common and participating Series 1 Convertible Preferred Stock by the total of the weighted average number of common shares outstanding during the period.

Diluted earnings per share is based on the more dilutive of the if-converted method (which assumes conversion of the participating Series 1 Convertible Preferred Stock as of the beginning of the period) or the two-class method (which assumes that the participating Series 1 Convertible Preferred Stock is not converted) plus the potential impact of dilutive non-participating Series 2 Convertible Preferred Stock, options, performance share units and warrants. The dilutive effect of Series 2 Convertible Preferred Stock is computed using the if-converted method. The dilutive effect of options, performance share units and warrants are computed using the treasury stock method, which assumes the repurchase of common shares at the average market price during the period. Under the treasury stock method, options, performance share units and warrants will have a dilutive effect when the average price of common stock during the period exceeds the exercise price of options, performance share units or warrants. When there is a loss from continuing operations, potential common shares are not included in the computation of diluted loss per share since they have an anti-dilutive effect.

	December 31,
	2022		2021
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		116,903
Common Stock Options		3,919,228		3,080,904
Common Stock Warrants		2,255,184		2,255,184
Performance Share Units		790,327		-
		13,152,568		11,523,917

The following table sets forth the computation of basic and diluted earnings per common share for the twelve months ended December 31, 2022 and 2021:

	Year ended
	December 31,
	2022			2021
Numerator
Net income	$	13,631,719		$	3,272,774
Series 2 Convertible Preferred Stock dividends		(3,730,580	)		(2,439,099	)
Net income attributable to common and Series 1 Convertible Preferred Stock		9,901,139			833,675
Net income attributable to Series 1 Convertible Preferred Stock		(140,374	)		(34,106	)
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock		38,416			25,418
Net income attributable to common shares - Numerator for basic and diluted EPS	$	9,799,181		$	824,987
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS		21,646,896			21,387,960
Effect of dilutive securities:		-
Series 1 Convertible Preferred Stock		225,231			-
Common stock options and performance share units		351,576			978,978
Common stock warrants		201,651			861,026
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS		22,425,354			23,227,964
Basic EPS	$	0.45		$	0.04
Diluted EPS	$	0.44		$	0.04

Stock-Based Compensation - The fair value of transactions in which the Company exchanges its equity instruments for employee and non-employee services (share-based payment transactions) is recognized as a compensation expense in the financial statements as services are performed.

Compensation expense for stock options is determined by reference to the fair value of an award on the date of grant and is recognized on a straight-line basis over the vesting period. The Company has elected to use the Black-Scholes-Merton (BSM) pricing model to determine the fair value of all stock option awards.

Compensation expense for performance share units is recognized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that will be achieved and earned. The fair value of performance share units is based on the fair market value of the Company’s common stock on the date of grant (see Note 9).

Fair Value of Financial Instruments - The carrying value of certain financial instruments such as cash, lease receivable, and accounts payable approximate their fair value due to their short-term nature. The carrying value of loans payable under the 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.

The Company utilizes the fair value option on its entire loan receivables portfolio purchased from its bank partner and for the portfolio acquired in the Revolution Transaction (See Note 14).

Fair Value Measurements- The Company uses a hierarchical framework that prioritizes and ranks the market observability of inputs used in its fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows:

	●	Level 1: Quoted prices in active markets for identical assets or liabilities.

	●	Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable.

●

Level 3: Unobservable inputs for the asset or liability measured.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation.

The Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021 is as follows:

	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

	Fair Value Measurement Using						Carrying
Financial instruments – As of December 31, 2021 (1)	Level 1		Level 2		Level 3		Amount
Loan receivables at fair value	$	-	$	-	$	3,560,108	$	3,151,377

(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 promissory notes to related parties approximates fair value based upon their interest rates, which approximate current market interest rates.

The Company primarily estimates the fair value of its loan receivables portfolio using discounted cash flow models. The models use inputs, such as estimated losses, servicing costs and discount rates, that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. Certain unobservable inputs may, in isolation, have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. An increase to the net loss rate, servicing cost, or discount rate would decrease the fair value of the Company’s loan receivables. When multiple inputs are used within the valuation techniques for loan receivables, a change in one input in a certain direction may be offset by an opposite change from another input.

The company estimates the fair value of the promissory note related to acquisition using discounted cash flow model. The model uses inputs including estimated cash flows and a discount rate.

The following describes the primary inputs to the discounted cash flow models that require significant judgement:

●

Estimated losses are estimates of the principal payments that will not be repaid over the life of the loans, net of the expected principal recoveries on charged-off receivables. FlexShopper systems monitor collections and portfolio performance data that are used to continually refine the analytical models and statistical measures used in making marketing and underwriting decisions. Leveraging the data at the core of the business, the Company utilizes the models to estimate lifetime credit losses for loan receivables. Inputs to the models include expected cash flows, historical and current performance, and behavioral information. Management may also incorporate discretionary adjustments based on the Company’s expectations of future credit performance.

●

Servicing costs – Servicing costs applied to the expected cash flows of the portfolio reflect the Company’s estimate of the amount investors would incur to service the underlying assets for the remainder of their lives. Servicing costs are derived from the Company internal analysis of our cost structure considering the characteristics of the receivables and have been benchmarked against observable information on comparable assets in the marketplace.

●

Discount rates – the discount rates utilized in the cash flow analyses reflect the Company’s estimates of the rates of return that investors would require when investing in financial instruments with similar risk and return characteristics.

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 years ended December 31, 2022 and December 31, 2021:

	Year Ended December 31, 2022			Year Ended December 31, 2021
Beginning balance	$	3,560,108		$	89,445
Purchases of loan participation		31,216,406			3,309,732
Obligation of loan participation		12,931			163,307
Purchase of loan portfolio in Revolution Transaction		13,320,326			-
Loan originations		5,519,303			-
Interest and fees⁽¹⁾		16,680,080			672,340
Collections		(27,816,669	)		(923,700	)
Net charge off ⁽¹⁾		(10,653,751	)		(146,923	)
Net change in fair value⁽¹⁾		1,093,770			395,907
Ending balance	$	32,932,504		$	3,560,108

⁽¹⁾	Included in loan revenues and fees, net of changes in fair value in the consolidated statements of operations

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 December 10, 2022 and December 31, 2021:

	December 31, 2022									December 31, 2021
	Minimum			Maximum			Weighted Average⁽²⁾			Minimum			Maximum			Weighted Average
Estimated losses⁽¹⁾		2.0	%		92.4	%		40.8	%		26.0	%		35.0	%		34.6	%
Servicing costs		-			-			4.5	%		-			-			4.6	%
Discount rate		-			-			21.0	%		-			-			11.1	%

(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.

Other relevant data as of December 31, 2022 and December 31, 2021 concerning loan receivables at fair value are as follows:

	December 31, 2022		December 31, 2021
Aggregate fair value of loan receivables that are 90 days or more past due	$	203,182	$	-
Unpaid principal balance of loan receivables that are 90 days or more past due		1,841,812		-
Aggregate fair value of loan receivables in non-accrual status		6,947,224		-

Income Taxes - Deferred tax assets and liabilities are determined based on the estimated future tax effects of net operating loss carryforwards and temporary differences between the tax bases of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records a valuation allowance for its deferred tax assets when management concludes that it is not more likely than not that such assets will be recognized.

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of December 31, 2022, and 2021, the Company had not recorded any unrecognized tax benefits. Interest and penalties related to liabilities for uncertain tax positions will be charged to interest and operating expenses.

Reclassifications

Certain prior year balances have been reclassified to conform with the current year presentation. These reclassifications primarily include separating the prepaid expenses, right of use asset and loan revenues and fees, net of changes in fair value as separate line items.

Recent Accounting Pronouncements

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, as amended “Financial Instruments - Credit Losses (Topic 326)” revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The effective date of Topic 326 for public companies that are considered smaller reporting companies as defined by the SEC as for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard on January 1, 2023. The Company does not expect the provisions of Topic 326 to have a material effect on its Consolidated Financial Statements as this Topic does not cover operating lease receivables.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The standard provides temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the cessation of the publication of certain tenors of the London Interbank Overnight (“LIBOR”) rate on December 31, 2021, with complete elimination of the publication of the LIBOR rate by June 30, 2023. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts referencing the LIBOR rate.

On October 21, 2022, the Amendment No 16 to Credit Agreement between FlexShopper 2, LLC, as borrower, and Powerscourt Investments 32, LP, as administrative agent and lender, replaced LIBOR reference in the Credit Agreement with SOFR (Secured Overnight Financing Rate), as the basis for the interest payments under the Credit Agreement. Therefore, there is no impact on the Consolidated Financial Statements of the Company related to the adoption of ASU 2020-04. The Company does not expect this standard to have a material effect on its Consolidated Financial Statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which requires contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination to be recognized and measured in accordance with ASC Topic 606, Revenue from Contracts with Customers, rather than at its assumed acquisition date fair value. For public companies, this ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and an early adoption is permitted. The Company does not expect this standard to have a material effect on its Consolidated Financial Statements.

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

3. LEASES

Refer to Note 2 to these consolidated financial statements for further information about the Company’s revenue generating activities as a lessor. All the Company’s customer agreements are considered operating leases, and the Company currently does not have any sales-type or direct financing leases as a lessor.

Lease Commitments

FlexShopper had a lease for retail store space in West Palm Beach, Florida. The term of the lease was to December 30, 2021. In March 2021, FlexShopper and the lessor agreed on the early termination of the lease for this property. The monthly rent for this space was approximately $2,300 per month.

In January 2019, FlexShopper entered into a 108-month lease with an option for one additional five-year term for 21,622 square feet of office space in Boca Raton, FL to accommodate FlexShopper’s business and its employees. The monthly rent for this space is approximately $31,500 with annual three percent increases throughout the initial 108-month lease term beginning on the anniversary of the commencement date.

In September 2021, FlexShopper entered into a 12-month lease for an office space for approximately 18 people at the Battery at SunTrust Park at Georgia, Atlanta mainly to expand the sales team. This lease was renewed for another twelve month period with a monthly rent of approximately $8,800. This lease is accounted for under the practical expedient for leases with initial terms for 12 months or less, and as such no related right of use asset or liability was recorded.

The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are included in the Company’s consolidated balance sheets.

Supplemental balance sheet information related to leases is as follows:

	Balance Sheet Classification	December 31, 2022		December 31, 2021
Assets
Operating Lease Asset	Right of use asset, net	$	1,395,741	$	1,534,512
Finance Lease Asset	Right of use asset, net		10,529		18,818
Total Lease Assets		$	1,406,270	$	1,553,330

Liabilities
Operating Lease Liability – current portion	Current Lease Liabilities	$	199,535	$	163,939
Finance Lease Liability – current portion	Current Lease Liabilities		8,466		8,793
Operating Lease Liability – net of current portion	Long Term Lease Liabilities		1,562,022		1,761,558
Finance Lease Liability – net of current portion	Long Term Lease Liabilities		4,600		13,065
Total Lease Liabilities		$	1,774,623	$	1,947,355

Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company uses its incremental borrowing rate as the discount rate for its leases, as the implicit rate in the lease is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Operating lease assets also include any prepaid lease payments and lease incentives. The lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company generally uses the base, non-cancelable, lease term when determining the lease assets and liabilities. Under the short-term lease exception provided within ASC 842, the Company does not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement.

Below is a summary of the weighted-average discount rate and weighted-average remaining lease term for the Company’s leases:

	Weighted Average Discount Rate			Weighted Average Remaining Lease Term (in years)
Operating Leases		13.03	%		6
Finance Leases		13.38	%		1

Operating lease expense is recognized on a straight-line basis over the lease term within operating expenses in the Company’s consolidated statements of operations. Finance lease expense is recognized over the lease term within interest expense and amortization in the Company’s consolidated statements of operations. The Company’s total operating and finance lease expense all relate to lease costs and amounted to $389,647 and $401,463 for the twelve months ended December 31, 2022 and December 31, 2021, respectively.

Supplemental cash flow information related to operating leases is as follows:

	Twelve Months ended
	December 31,
	2022		2021
Cash payments for operating leases	$	405,443	$	400,771
Cash payments for finance leases		11,184		11,184

Below is a summary of undiscounted operating lease liabilities as of December 31, 2022. The table also includes a reconciliation of the future undiscounted cash flows to the present value of the operating lease liabilities included in the consolidated balance sheet.

	Operating Leases
2023	$	417,606
2024		430,134
2025		443,038
2026		456,330
2027		470,019
2028 and thereafter		303,574
Total undiscounted cash flows		2,520,701
Less: interest		(759,144	)
Present value of lease liabilities	$	1,761,557

Below is a summary of undiscounted finance lease liabilities as of December 31, 2022. The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance lease liabilities included in the consolidated balance sheet.

	Finance Leases
2023	$	9,699
2024		4,782
Total undiscounted cash flows		14,481
Less: interest		(1,415	)
Present value of lease liabilities	$	13,066

Property and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

	Estimated Useful Lives	December 31, 2022			December 31, 2021
Furniture, fixtures and vehicle	2-5 years	$	395,468		$	391,669
Website and internal use software	3 years		20,542,457			15,302,020
Computers and software	3-7 years		3,672,103			2,281,975
			24,610,028			17,975,664
Less: accumulated depreciation and amortization			(16,523,166	)		(12,485,230	)
		$	8,086,862		$	5,490,434

Depreciation and amortization expense for property and equipment was $4,037,936 and $2,786,109 for the twelve months ended December 31, 2022 and 2021, respectively

Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

5. INTANGIBLE ASSETS

The following table provides a summary of our intangible assets:

	December 31, 2022
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patent	10 years	$	30,760	$	(28,876	)	$	1,884
Franchisee contract-based agreements	10 years		12,744,367		(106,203	)		12,638,164
Liberty Loan brand	10 years		340,218		(2,835	)		337,383
Non-compete agreements	10 years		86,113		(718	)		85,395
Non contractual customer relationships	5 years		1,952,371		(32,540	)		1,919,831
Customer list	3 years		184,825		(5,133	)		179,692
		$	15,338,654	$	(176,305	)	$	15,162,349

	December 31, 2021
	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patent		10 years	$	30,760	$	(25,800	)	$	4,960
			$	30,760	$	(25,800	)	$	4,960

Intangible assets amortization expense was $150,505 for the twelve months ended December 31, 2022 and $3,076 for twelve months ended December 31, 2021.

Promissory Notes-Related Parties

12 Months Ended

Dec. 31, 2022

Promissory Notes-Related Parties [Abstract]

PROMISSORY NOTES-RELATED PARTIES

6. PROMISSORY NOTES-RELATED PARTIES

122 Partners Note- On January 25, 2019, FlexShopper, LLC (the “Borrower”) entered into a subordinated debt financing letter agreement with 122 Partners, LLC, as lender, pursuant to which FlexShopper, LLC issued a subordinated promissory note to 122 Partners, LLC (the “122 Partners Note”) in the principal amount of $1,000,000. H. Russell Heiser, Jr., FlexShopper’s Chief Financial Officer, is a member of 122 Partners, LLC. Payment of the principal amount and accrued interest under the 122 Partners Note was due and payable by the borrower on April 30, 2020 and the borrower can prepay principal and interest at any time without penalty. At December 31, 2022, amounts outstanding under the 122 Partners Note bear interest at a rate of 20.45%. Obligations under the 122 Partners Note are subordinated to obligations under the Credit Agreement. The 122 Partners Note is subject to customary representations and warranties and events of default. If an event of default occurs and is continuing, the Borrower may be required to repay all amounts outstanding under the 122 Partners Note. Obligations under the 122 Partners Note are secured by substantially all of the Borrower’s assets, subject to the senior rights of the lenders under the Credit Agreement. On April 30, 2020, pursuant to an amendment to the subordinated debt financing letter agreement, the Borrower and 122 Partners, LLC agreed to extend the maturity date of the 122 Partners Note to April 30, 2021. On March 22, 2021, FlexShopper, LLC executed a second amendment to the 122 Partners Note such that the maturity date of the 122 Partners Note was extended to April 1, 2022. On March 31, 2022, FlexShopper, LLC executed a third amendment to the 122 Partners Note such that the maturity date of the 122 Partners Note was extended to April 1, 2023. On March 30, 2023, FlexShopper, LLC executed a fourth amendment to the 122 Partners Note such that the maturity date of the 122 Partners Note was extended from April 1, 2023 to October 1, 2023. No other changes were made to the 122 Partners Note. Principal and accrued and unpaid interest outstanding on the 122 Partners Note was $1,017,826 as of December 31, 2022 and $1,011,439 as of December 31, 2021.

Interest paid for the 122 Partner Note was $196,338 and $148,011 for the twelve months ended December 31, 2022 and 2021, respectively.

Interest expensed for the 122 Partner Note was $211,349 and $143,940 for the twelve months ended December 31, 2022 and 2021, respectively.

NRNS Note- FlexShopper LLC (the “Borrower”) previously entered into letter agreements with NRNS Capital Holdings LLC (“NRNS”), the manager of which is the Chairman of the Company’s Board of Directors, pursuant to which the Borrower issued subordinated promissory notes to NRNS (the “NRNS Note”) in the total principal amount of $3,750,000. Payment of principal and accrued interest under the NRNS Note was due and payable by the Borrower on June 30, 2021 and FlexShopper, LLC can prepay principal and interest at any time without penalty. At December 31, 2022, amounts outstanding under the NRNS Note bear interest at a rate of 20.45%. Obligations under the NRNS Note are subordinated to obligations under the Credit Agreement. The NRNS Note is subject to customary representations and warranties and events of default. If an event of default occurs and is continuing, the Borrower may be required to repay all amounts outstanding under the NRNS Note. Obligations under the NRNS Note is secured by substantially all of the Borrower’s assets, subject to rights of the lenders under the Credit Agreement. On March 22, 2021, FlexShopper, LLC executed an amendment to the NRNS Note such that the maturity date was extended to April 1, 2022. On February 2, 2022, FlexShopper LLC executed another amendment to the NRNS Note. This last amendment extended the maturity date from April 1, 2022 to July 1, 2024 and increased the credit commitment from $3,750,000 to $11,000,000. No other changes were made to such NRNS Note. Principal and accrued and unpaid interest outstanding on the NRNS Note was $10,941,629 as of December 31, 2022 and $3,792,923 as of December 31, 2021.

Interest paid for the NRNS Note was $1,541,493 and $555,749 for the twelve months ended December 31, 2022 and 2021, respectively.

Interest expensed for the NRNS Note was $1,677,103 and $540,360 for the twelve months ended December 31, 2022 and 2021, respectively.

Amounts payable under the promissory notes are as follows:

	Debt Principal		Interest
2023	$	1,000,000	$	209,455
2024	$	10,750,000	$	-

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Loan Payable Under Credit Agreement

12 Months Ended

Dec. 31, 2022

Loan Payable Under Credit Agreement [Abstract]

LOAN PAYABLE UNDER CREDIT AGREEMENT

7. LOAN PAYABLE UNDER CREDIT AGREEMENT

On March 6, 2015, FlexShopper, through a wholly-owned subsidiary (“Borrower”), entered into a credit agreement (as amended from time-to-time, the “Credit Agreement”) with Wells Fargo Bank, National Association as paying agent, various lenders from time to time party thereto and WE 2014-1, LLC, an affiliate of Waterfall Asset Management, LLC, as administrative agent and lender (“Lender”). The Borrower is permitted to borrow funds under the Credit Agreement based on FlexShopper’s cash on hand and the Amortized Order Value of its Eligible Leases (as such terms are defined in the Credit Agreement) less certain deductions described in the Credit Agreement. Under the terms of the Credit Agreement, subject to the satisfaction of certain conditions, the Borrower may borrow up to $57,500,000 from the Lender until the Commitment Termination Date and must repay all borrowed amounts one year thereafter, on the date that is 12 months following the Commitment Termination Date (unless such amounts become due or payable on an earlier date pursuant to the terms of the Credit Agreement). The Lender was granted a security interest in certain leases and loans as collateral under this Agreement.

On January 29, 2021, the Company and the Lender signed an Omnibus Amendment to the Credit Agreement. This Amendment extended the Commitment Termination Date to April 1, 2024, amended other covenant requirements, partially removed indebtedness covenants and amended eligibility rules. The interest rate charged on amounts borrowed is LIBOR plus 11% per annum. The Company paid the lender a fee of $237,000 in consideration of the execution of this Omnibus Amendment. At December 31, 2022, amounts borrowed bear interest at 15.45%.

On March 8, 2022, pursuant to Amendment No. 15 to Credit Agreement, the Commitment Amount was increased to be up to $82,500,000. The incremental increase in the Commitment Amount was provided by WE 2022-1, LLC, as an additional lender under the Credit Agreement. WE 2022-1, LLC is an affiliate of Waterfall Asset Management, LLC. No other changes were made to the credit agreement. As of July 1, 2022, WE 2022-1, LLC assigned 100% of its Commitment and all Loans to WE 2014-1, LLC. Effective September 27, 2022, WE 2014-1, LLC assigned 100% of its Commitments and all Loans to Powerscourt Investments 32, LP, an affiliate of Waterfall Asset Management, LLC.

The Credit Agreement provides that FlexShopper may not incur additional indebtedness (other than expressly permitted indebtedness) without the permission of the Lender and also prohibits payments of cash dividends on common stock. Additionally, the Credit Agreement includes covenants requiring FlexShopper to maintain a minimum amount of Equity Book Value, maintain a minimum amount of liquidity and cash and maintain a certain ratio of Consolidated Total Debt to Equity Book Value (each capitalized term, as defined in the Credit Agreement). Upon a Permitted Change of Control (as defined in the Credit Agreement), FlexShopper must refinance the debt under the Credit Agreement, subject to the payment of an early termination fee. A summary of the covenant requirements, and FlexShopper’s actual results at December 31, 2022, follows:

	December 31, 2022
	Required Covenant		Actual Position
Equity Book Value not less than	$	9,636,387	$	31,034,673
Liquidity greater than		1,500,000		6,051,713
Cash greater than		500,000		6,173,350
Consolidated Total Debt to Equity Book Value ratio not to exceed		5.25		3.14

The Credit Agreement includes customary events of default, including, among others, failures to make payment of principal and interest, breaches or defaults under the terms of the Credit Agreement and related agreements entered into with the Lender, breaches of representations, warranties or certifications made by or on behalf of FlexShopper in the Credit Agreement and related documents (including certain financial and expense covenants), deficiencies in the borrowing base, certain judgments against FlexShopper and bankruptcy events.

On October 21, 2022, pursuant to Amendment No. 16 to Credit Agreement, the Commitment Amount was increased to be up to $110,000,000. This amendment also replaced LIBOR references in the Credit Agreement with SOFR (Secured Overnight Financing Rate), as the basis for our interest payments under the Credit Agreement. No other changes were made to the Credit Agreement.

The Company borrowed under the Credit Agreement $36,455,000 for the twelve months ended December 31, 2022, respectively, and $19,850,000 for the twelve ended December 31, 2021. The Company repaid under the Credit Agreement and $5,730,000 for the twelve months ended December 31, 2022 and $6,575,000 for the twelve ended December 31, 2021.

Interest expense incurred under the Credit Agreement amounted to $8,902,935 for the twelve months ended December 31, 2022, and $4,323,830 for the twelve months ended December 31, 2021. The outstanding balance under the Credit Agreement was $81,200,000 as of December 31, 2022 and was $50,475,000 as of December 31, 2021. Such amount is presented in the consolidated balance sheets net of unamortized issuance costs of $352,252 and $413,076 as of December 31, 2022 and December 31, 2021, respectively. Interest is payable monthly on the outstanding balance of the amounts borrowed. No principal is expected to be repaid in the next twelve months due to the Commitment Termination Date having been extended to April 1, 2024, or from reductions in the borrowing base. Accordingly, all principal is shown as a non-current liability at December 31, 2022.

Since October 2022, the Company has been entering into Interest Rate Cap Agreements with AXOS bank, a financial institution not related with the Lender of the Credit Agreement. These agreements cap the variable portion (one month SOFR) of the Credit Agreement interest rate to 4%, which reduce the Company’s exposure to additional increases in interest rates.

Capital Structure

12 Months Ended

Dec. 31, 2022

Capital Structure [Abstract]

CAPITAL STRUCTURE

8. CAPITAL STRUCTURE

The Company’s capital structure consists of preferred and common stock as described below:

Preferred Stock

The Company is authorized to issue 500,000 shares of $0.001 par value preferred stock. Of this amount, 250,000 shares have been designated as Series 1 Convertible Preferred Stock and 25,000 shares have been designated as Series 2 Convertible Preferred Stock. The Company’s Board of Directors determines the rights and preferences of the Company’s preferred stock.

●

Series 1 Convertible Preferred Stock – Series 1 Convertible Preferred Stock ranks senior to common stock upon liquidation.

As of December 31, 2022, each share of Series 1 Convertible Preferred Stock was convertible into 1.32230 shares of the Company’s common stock, subject to certain anti-dilution rights. The holders of the Series 1 Convertible Preferred Stock have the option to convert the shares to common stock at any time. Upon conversion, all accumulated and unpaid dividends, if any, will be paid as additional shares of common stock. The holders of Series 1 Convertible Preferred Stock have the same dividend rights as holders of common stock, as if the Series 1 Convertible Preferred Stock had been converted to common stock.

As of December 31, 2022 and 2021, there were 170,332 shares of Series 1 Convertible Preferred Stock outstanding, which were convertible into 225,231 shares of common stock.

●

Series 2 Convertible Preferred Stock – The Company sold to B2 FIE V LLC (the “Investor”), an entity affiliated with Pacific Investment Management Company LLC, 20,000 shares of Series 2 Convertible Preferred Stock (“Series 2 Preferred Stock”) for gross proceeds of $20.0 million. The Company sold an additional 1,952 shares of Series 2 Preferred Stock to a different investor for gross proceeds of $1.95 million at a subsequent closing.

The Series 2 Preferred Shares were sold for $1,000 per share (the “Stated Value”) and accrue dividends on the Stated Value at an annual rate of 10% compounded annually. Cumulative accrued dividends as of December 31, 2022 totaled $19,084,376. As of December 31, 2022, each Series 2 Preferred Share was convertible into approximately 266 shares of common stock; however, the conversion rate is subject to further increase pursuant to a weighted average anti-dilution provision. The holders of the Series 2 Preferred Stock have the option to convert such shares into shares of common stock and have the right to vote with holders of common stock on an as-converted basis. If the average closing price during any 45-day consecutive trading day period or change of control transaction values the common stock at a price equal to or greater than $23.00 per share, then conversion shall be automatic. Upon a Liquidation Event or Deemed Liquidation Event (each as defined), holders of Series 2 Preferred Stock shall be entitled to receive out of the assets of the Company prior to and in preference to the common stock and Series 1 Convertible Preferred Stock an amount equal to the greater of (1) the Stated Value, plus any accrued and unpaid dividends thereon, and (2) the amount per share as would have been payable had all shares of Series 2 Preferred Stock been converted to common stock immediately before the Liquidation Event or Deemed Liquidation Event.

As the dividends for the Series 2 Preferred Shares have not been declared by the Company’s Board of Directors, there is no dividends accrual reflected in the Company's Consolidated Financial Statement. The Series 2 Preferred Shares dividends is reflected on the Consolidated Statement of Operations for purposes of determining the net income attributable to common and Series 1 Convertible Preferred shareholders.

Common Stock

The Company is authorized to issue 40,000,000 shares of common stock, par value $0.0001 per share. Each share of common stock entitles the holder to one vote at all stockholder meetings. The common stock is traded on the Nasdaq Capital Market under the symbol “FPAY.”

Warrants

In September 2018, the Company issued warrants exercisable for 5,750,000 shares of common stock at an exercise price of $1.25 per share (the “Public Warrants”). The warrants were immediately exercisable and expire five years from the date of issuance. The warrants were listed on the Nasdaq Capital Market under the symbol “FPAYW”.

The Company also issued additional warrants exercisable for an aggregate 1,055,184 shares of common stock at an exercise price of $1.25 per warrant to Mr. Heiser and NRNS in connection with partial conversions of their promissory notes. The warrants are exercisable at $1.25 per share of common stock and expire on September 28, 2023.

In connection with the issuance of Series 2 Convertible Preferred Stock in June 2016, the Company issued to the placement agent in such offering warrants exercisable for 439 shares of Series 2 Convertible Preferred Stock at an initial exercise price of $1,250 per share, which expire seven years after the date of issuance.

As part of a consulting agreement with XLR8 Capital Partners LLC (the “Consulting Agreement”), an entity of which the Company’s Chairman is manager, the Company agreed to issue 40,000 warrants to XLR8 Capital Partners LLC monthly for 12 months beginning on March 1, 2019 at an exercise price of $1.25 per share or, if the closing share price on the last day of the month exceeds $1.25, then such exercise price will be 110% of the closing share price. The warrants are immediately exercisable and expire following the close of business on June 30, 2023. In February 2020, this agreement was extended for an additional six months through August 31, 2020. On August 30, 2020, the parties entered into an amendment to the Consulting Agreement to further extend the term for another six-month period through February 28, 2021. The Consulting Agreement automatically renewed for one successive six-month period, therefore the new termination date was August 31, 2021. There are no additional automatic renewals.

The August 2020 amendment also modified the alternative minimum exercise price of the monthly warrant consideration issuable to the Consultant to $1.60 per share going forward, and the expiration date of the warrants to the date that is four years following the last trading day of the calendar month relating to the applicable monthly warrant issuance.

During the twelve months ended December 31, 2021, the Company recorded an expense of $522,808 based on a weighted average grant date fair value of $1.63 per warrant.

	Warrants		Expense		Grant date fair value
Grant Date	Granted		Recorded		Per Warrant
January 31, 2021		40,000	$	73,595	$	1.84
February 29, 2021		40,000		76,318		1.91
March 31, 2021		40,000		63,010		1.58
April 30, 2021		40,000		60,542		1.51
May 31, 2021		40,000		63,156		1.58
June 30, 2021		40,000		68,228		1.71
July 31, 2021		40,000		55,658		1.39
August 31, 2021		40,000		62,301		1.56
		320,000		522,808		1.63

There was no expense recorded during the twelve months ended December 31, 2022 related to warrants.

The following table summarizes information about outstanding stock warrants as of December 31, 2022 and 2021, all of which are exercisable:

	Exercise	Common Stock Warrants	Series 2 Preferred Stock Warrants		Weighted Average Remaining Contractual Life
	Price	Outstanding	Outstanding		Dec 31, 2022	Dec 31, 2021
$	1.25	1,055,184			1 year	2 years
$	1.25	160,000			Less than 1 year	1 year
$	1.34	40,000			Less than 1 year	1 year
$	1.40	40,000			Less than 1 year	1 year
$	1.54	40,000			Less than 1 year	1 year
$	1.62	40,000			Less than 1 year	1 year
$	1.68	40,000			2 years	3 years
$	1.69	40,000			Less than 1 year	1 year
$	1.74	40,000			Less than 1 year	1 year
$	1.76	40,000			Less than 1 year	1 year
$	1.91	40,000			Less than 1 year	1 year
$	1.95	40,000			2 years	3 years
$	2.00	40,000			Less than 1 year	1 year
$	2.01	40,000			Less than 1 year	1 year
$	2.08	40,000			2 years	3 years
$	2.45	40,000			Less than 1 year	1 year
$	2.53	40,000			Less than 1 year	1 year
$	2.57	40,000			2 years	3 years
$	2.70	40,000			3 years	4 years
$	2.78	40,000			Less than 1 year	1 year
$	2.79	40,000			2 years	3 years
$	2.89	40,000			2 years	3 years
$	2.93	40,000			Less than 1 year	1 year
$	2.97	40,000			2 years	3 years
$	3.09	40,000			2 years	3 years
$	3.17	40,000			2 years	3 years
$	3.19	40,000			3 years	4 years
$	3.27	40,000			2 years	3 years
$	1,250		439	*	Less than 1 year	1 year
		2,255,184	439

(*)	At December 31, 2022 and 2021, these warrants were exercisable into Series 2 Preferred Stock which, in turn, were convertible into 116,903 shares of common stock

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Equity Compensation Plans

12 Months Ended

Dec. 31, 2022

Stock Options [Abstract]

EQUITY COMPENSATION PLANS

9. EQUITY COMPENSATION PLANS

In April 2018, the Company adopted the FlexShopper, Inc. 2018 Omnibus Equity Compensation Plan (the “2018 Plan”). The 2018 Plan replaced the Prior Plans. No new awards will be granted under the Prior Plans; however, awards outstanding under the Prior Plans upon approval of the 2018 Plan remain subject to and will be settled with shares under the applicable Prior Plan.

Grants under the 2018 Plan and the Prior Plans consist of incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares, restricted stock units, dividend equivalents and other stock-based awards. Employees, directors and consultants and other service providers are eligible to participate in the 2018 Plan and the Prior Plans. As of December 31, 2022, approximately 494,000 shares remained available for issuance under the 2018 Plan.

Stock-based compensation expense include the following components:

	Year Ended December 31,
	2022		2021
Stock options	$	997,830	$	1,125,819
Performance share units (“PSU”)		-		-
Total stock-based compensation	$	997,830	$	1,125,819

The fair value of stock-based compensation is recognized as compensation expense over the vesting period. Compensation expense recorded for stock-based compensation in the consolidated statements of operations was $997,830 for the twelve months ended December 31, 2022 and $1,125,819 for twelve months ended December 31, 2021. Unrecognized compensation cost related to non-vested options and PSU at December 31, 2022 amounted to $860,070, which is expected to be recognized over a weighted average period of 2.46 years.

Stock options:

The fair value of stock options is recognized as compensation expense using the straight-line method over the vesting period. The Company measured the fair value of each stock option award on the date of grant using the Black-Scholes-Merton (BSM) pricing model with the following weighted average assumptions:

	Year ended December 31, 2022			Year ended December 31, 2021
Exercise price	$	1.45		$	2.52
Expected life		6 years			5 years
Expected volatility		71	%		91	%
Dividend yield		0	%		0	%
Risk-free interest rate		2.25	%		0.57	%

The expected dividend yield is based on the Company’s historical dividend yield. The expected volatility is based on the historical volatility of the Company’s common stock. The expected life is based on the simplified expected term calculation permitted by the Securities and Exchange Commission, which defines the expected life as the average of the contractual term of the options and the weighted-average vesting period for all option tranches. The risk-free interest rate is based on the annual yield on the grant date of a zero-coupon U.S. Treasury bond the maturity of which equals the option’s expected life.

Activity in stock options for the twelve months period ended December 31, 2022 and December 31, 2021 was as follows:

	Number of options			Weighted average exercise price		Weighted average contractual term (years)		Aggregate intrinsic value
Outstanding at January 1, 2022		3,080,904		$	2.06			$	1,923,642
Granted		1,179,183			1.45				-
Exercised		(308,526	)		0.85				480,029
Forfeited		(7,333	)		2.22				2,273
Expired		(25,000	)		1.70				-
Outstanding at December 31, 2022		3,919,228		$	1.97		6.78	$	52,223
Vested and exercisable at December 31, 2022		3,152,169		$	2.02		6.52	$	52,223

Outstanding at January 1, 2021		2,595,700		$	1.92			$	2,491,026
Granted		626,238			2.52				74,482
Exercised		(82,333	)		0.83				151,544
Forfeited		(58,701	)		2.65				58,285
Outstanding at December 31, 2021		3,080,904		$	2.06		6.72	$	1,923,642
Vested and exercisable at December 31, 2021		2,307,571		$	2.04		6.87	$	1,674,967

The weighted average grant date fair value of options granted during the twelve month period ended December 31, 2022 and December 31, 2021 was $0.90 and $1.75 per share, respectively.

Performance Share Units:

On February 10, 2022, the Compensation Committee of the Board of Directors approved awards of performance share units to certain senior executives of the Company.

For performance share units, which are settled in stock, the number of shares earned is subject to both performance and time-based vesting. For the performance component, the number of shares earned is determined at the end of the periods based upon achievement of specified performance conditions such as the Company’s Adjusted EBITDA. When the performance criteria are met, the award is earned and vests assuming continued employment through the specified service period(s). Shares are issued from the Company’s 2018 Omnibus Equity Compensation Plan upon vesting. The number of performance-based shares which could potentially be issued ranges from 0 up to a maximum of 790,327 of the target awards depending on the specified terms and conditions of the target award.

The fair value of performance share units is based on the fair market value of the Company’s common stock on the date of grant. The compensation expense associated with these awards is amortized on an accelerated basis over the vesting period based on the Company’s projected assessment of the level of performance that will be achieved and earned. In the event the Company determines it is no longer probable that the minimum performance criteria specified in the plan will be achieved, all previously recognized compensation expense is reversed in the period such a determination is made. As of December 31, 2022, the Company determined it was not probable that the minimum performance component would be met and accordingly no expense was recognized in the twelve months period ended December 31, 2022.

Activity in performance share units for the twelve months ended December 31, 2022 was as follows:

	Number of performance share units		Weighted average grant date fair value
Non- vested at January 1, 2022		-		-
Granted		790,327	$	1.53
Forfeited/ unearned		-		-
Vested		-		-
Non- vested at December 31, 2022		790,327	$	1.53

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

INCOME TAXES

10. INCOME TAXES

Reconciliation of the benefit/ (expense) for income taxes from continuing operations recorded in the consolidated statements of operations with the amounts computed at the statutory federal tax rates for each year:

	2022			2021
Federal tax at statutory rate	$	(630,700	)	$	852,198
State tax, net of federal tax		(736,962	)		(487,093	)
Tax impact on gain on bargain purchase		(3,036,868	)		-
Permanent differences		123,933			(259,967	)
Change in statutory rate		7,862			59,168
Change in valuation allowance		(12,525,690	)		614,112
Other		163,374			6,892
Benefit/ (expense) for income taxes	$	(16,635,051	)	$	785,310

Tax affected components of deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 were as follows:

	2022			2021
Deferred tax assets (liabilities):
Equity based compensation	$	428,111		$	479,956
Allowance for doubtful accounts		3,240,968			6,847,189
Fixed assets		(9,153,508	)		(8,085,957	)
Lease impairment		989,120			423,022
Lease Liability		439,758			481,312
Right of use asset		(348,478	)		(383,924	)
Accrued expenses		(16,962	)		-
Change in fair value of loans receivable		2,264,813			-
Tax credit carryforward		32,394			32,394
Sec 163(j) carryforward		2,703,639			-
Federal loss carry-forwards		12,304,134			11,838,840
State loss carry forward		3,860,104			343,914
Intangible assets		(4,730,265	)		-
Other		-			(53,414	)
Gross deferred tax		12,013,828			11,923,332
Valuation allowance		-			(12,418,498	)
Net deferred tax assets/ liability	$	12,013,828		$	(495,166	)

During the second quarter of 2022, the Company released the valuation allowance of the Company’s deferred tax asset recorded as of December 31, 2021. The Company had historical cumulative positive pre-tax income plus permanent differences. The realization of the deferred tax asset as of December 31, 2022 is more likely than not based on the Company’s projected taxable income.

The release of the deferred tax asset valuation allowance resulted in a tax benefit of approximately $12.5 million in the year ended December 31, 2022.

As of December 31, 2022, the Company had federal and state net operating loss carryforwards of $58,591,117 and $8,153,233, respectively available to offset future income. Our federal loss carryforwards do not expire. The Company’s net operating losses may be subject to annual Section 382 of the Internal Revenue Code limitations due to ownership changes that could impact future realization.

The components of income tax expense (benefits) for the years ended December 31, 2021 and 2020 were as follows:

	2022			2021
Current Income Tax:
Federal	$	-		$	-
State		754,505			290,144
Deferred Income Tax:
Federal		(13,439,360	)		495,166
State		(3,950,196	)		-
	$	(16,635,051	)	$	785,310

The Company’s effective tax rate for the year ended December 31, 2022 and 2021 differs from the statutory rate of 21% primarily due to state income taxes, permanent differences and the release of the valuation allowance.

The Company files tax returns in the U.S. federal jurisdiction and various states. At December 31, 2022, federal tax returns remained open for Internal Revenue Service review for tax years after 2018, while state tax returns remain open for review by state taxing authorities for tax years after 2018. The IRS can examine net operating loss carryforwards from earlier years the extent utilized in years after 2018. During 2019, the Company was notified that its 2017 federal income tax return was selected for examination. In the second quarter of 2021, the IRS completed their review with no changes to the reported tax. There were no other federal or state income tax audits being conducted as of December 31, 2022.

The Company completed its analysis and review of all tax positions taken through December 31, 2022 and does not believe that there are any unrecognized tax benefits or liabilities related to tax positions taken on its income tax returns.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Contingencies and Other Uncertainties

12 Months Ended

Dec. 31, 2022

Loss Contingency [Abstract]

CONTINGENCIES AND OTHER UNCERTAINTIES

11. CONTINGENCIES AND OTHER UNCERTAINTIES

Regulatory inquiries

In the first quarter of 2021, FlexShopper, along with a number of other lease-to-own companies, received a subpoena from the California Department of Financial Protection and Innovation (the “DFPI”) requesting the production of documents and information regarding the Company’s compliance with state consumer protection laws. The Company is cooperatively engaging with the DFPI in response to its inquiry. Although the Company believes it is in compliance with all applicable consumer protection laws and regulations in California, this inquiry ultimately could lead to an enforcement action and/or a consent order, and substantial costs, including legal fees, fines, penalties, and remediation expenses.

Litigation

The Company is not involved in any current or pending material litigation. The Company could be involved in litigation incidental to the operation of the business. The Company intends to vigorously defend all matters in which the Company is named defendants, and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect the Company. Although the adequacy of existing insurance coverage of the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, the Company does not believe the ultimate liability associated with known claims or litigation, if any, in which the Company is involved will materially affect the Company’s consolidated financial condition or results of operations.

Employment agreements

Certain executive management entered into employment agreements with the Company. The contracts are for a period of three years and renew for three successive one-year terms unless receipt of written notices by the parties. The contracts provide that such management may earn discretionary cash bonuses and equity awards, based on financial performance metrics defined each year by the Compensation Committee of the Company’s Board of Directors. Additionally, under certain termination conditions, such contracts provide for severance payments and other benefits.

COVID-19 and other similar health crisis

The Company has been, and may in the future, be impacted by COVID-19 or any similar pandemic or health crisis, and this could affect our results of operations, financial condition, or cash flow in the future. The extent and the effects of the impact of any of these events on the operation and financial performance of our business depend on several factors which are highly uncertain and cannot be predicted.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References + Details

Commitments

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

12. COMMITMENTS

The Company does not have any commitments other than real property leases (Note 3).

Promissory Note- Paycheck Protection Program

12 Months Ended

Dec. 31, 2022

Promissory Note- Paycheck Protection Program [Abstract]

PROMISSORY NOTE- PAYCHECK PROTECTION PROGRAM

13. PROMISSORY NOTE- PAYCHECK PROTECTION PROGRAM

FlexShopper, LLC (the “Borrower”) applied for and received a loan (the “Loan”) on May 4, 2020, from Customers Bank (the “Lender”) in the principal amount of $1,914,100, pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020, and administered through the U.S. Small Business Administration.

The Loan was evidenced by a promissory note (the “Note”), dated April 30, 2020, issued by the Borrower to the Lender. The Note matured on April 30, 2022 and bore interest at the rate of 1.00% per annum, payable monthly commencing on November 30, 2020, following an initial deferral period as specified under the PPP. The Note might be prepaid by the Borrower at any time prior to maturity with no prepayment penalty. Proceeds from the Loan were available to the Borrower to fund designated expenses, including certain payroll costs, group health care benefits and other permitted expenses, in accordance with the PPP. Under the terms of the PPP, up to the entire sum of the principal amount and accrued interest might be forgiven to the extent the Loan proceeds were used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the U.S. Small Business Administration under the PPP.

On June 21, 2021 we were notified that effective April 7, 2021, the U.S. Small Business Administration confirmed the waiver of FlexShopper’s repayment of a $1,914,000 Paycheck Protection Program promissory note issued to the Company on May 4, 2020.

As a result of the PPP promissory note forgiveness, the Company recognized in the year ended December 31, 2021 a gain from the extinguishment of the loan, including accrued interest, of $1,931,825.

Revolution Transaction

12 Months Ended

Dec. 31, 2022

REVOLUTION TRANSACTION

14. REVOLUTION TRANSACTION

On December 3, 2022, Flex Revolution, LLC, a wholly-owned subsidiary of FlexShopper, Inc. closed a transaction (“Revolution Transaction”) pursuant to an Asset Purchase Agreement with Revolution Financial, Inc., a provider of consumer loans and credit products (collectively with certain of its subsidiaries, “Revolution”), under which the Company acquired the material net assets of the Revolution business.

In consideration for the sale of the Revolution net assets, the Company issued an adjustable promissory note (“Seller Note”) with an initial principal amount of $5,000,000. The Seller Note matures on December 1, 2027, bears interest at 8% per annum and is subject to adjustment based upon the pre-tax net income of the acquired business in 2023. The fair value of the Seller Note as of the acquisition date was $3,421,991. The Seller Note is included in the Consolidated Balance Sheets in the line Promissory note related to acquisition, net of $1,165,027 discount at December 31, 2022.

The Revolution Transaction includes the Buyer’s assumption of Revolution’s consumer loan portfolio, related cash and its credit facility (“Revolution Credit Facility”) as this facility is backed by the portfolio acquired. As of December 31, 2022, the Revolution Credit Facility was not yet legally transferred to FlexShopper, so this liability is included in the Consolidated Balance Sheet on the line Purchase consideration payable related to acquisition as the Company was obligated for the outstanding balance as of December 31, 2022.

The parties to the Asset Purchase Agreement have each made customary representations and warranties in the Asset Purchase Agreement and have agreed to indemnify each other for breaches of such representations and warranties. The Buyer’s primary recourse in the event of a claim is to offset the Seller Note equal to the indemnifiable losses subject to such claim.

The Revolution Transaction has been accounted for as a business combination in accordance with ASC 805, Business Combination. The Company measured the net assets acquired in Revolution Transaction at fair value on the acquisition date.

The table below summarizes the estimated fair values of the identifiable net assets acquired and the consideration transferred as of the acquisition date.

	Dec 3, 2022 Fair Value
Cash		2,938,355
Loan receivables at fair value		13,320,326
Property and equipment, net		136,249
Intangible assets		15,307,894
Total assets		31,702,824
Purchase consideration payable related to acquisition		8,539,582
Accounts payable		506,607
Deferred tax liability		4,773,370
Total liabilities		13,819,559
Net assets acquired		17,883,265
Promissory note related to acquisition		3,421,991
Purchase price consideration		3,421,991

The Company recorded a bargain purchase gain of $14,461,274 related to the Revolution Transaction as the fair value of the net assets acquired exceed the fair value of the purchase price consideration. The Company believes that the most significant reason its management was able to negotiate a bargain purchase was due to the speed with which the seller wanted to close this transaction which resulted in a non-competitive process akin to a forced sale. The strong desire for a prior to year-end closing was for various reasons, including potential credit facility covenant issues and accelerating operating losses after recent regulatory changes.

The bargain purchase gain is included on the line “Gain on bargain purchase” in the Consolidated Statement of Operation for the twelve months ended December 31, 2022.

Employee Benefit Plan

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLAN

15. EMPLOYEE BENEFIT PLAN

The Company sponsors an employee retirement savings plan that qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute, but not more than statutory limits. The Company makes nondiscretionary 4% Safe Harbor contributions of participants’ eligible earnings who have completed the plan’s eligibility requirements. The contributions are made to the plan on behalf of the employees. Total contributions to the plan were $145,161 and $181,328 for the years ended December 31, 2022 and 2021, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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-SubTopic 20
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

16. SUBSEQUENT EVENTS

Chief Executive Officer

On March 17, 2023, the Company announced that Richard House, Jr., the Company’s Chief Executive Officer and Principal Executive Officer, had passed away on March 16, 2023.

H. Russell Heiser, Jr., who is currently the Chief Financial Officer of the Company, has been appointed by the Company’s Board of Directors to become the Chief Executive Officer of the Company effective March 20, 2023. In such capacity, Mr. Heiser has been designated as the Principal Executive Officer, in addition to temporarily also being the Principal Financial and Accounting Officer of the Company.

Nasdaq Notices

On April 19, 2023, the Company received a notice (the “Notice”) from the Nasdaq Listing Qualifications staff of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, as a result of not having timely filed its Annual Report on Form 10-K for the period ended December 31, 2022 (the “Form 10-K”), the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission. The Notice had no immediate effect on the listing or trading of the Company’s common stock on The Nasdaq Capital Market. The Notice provided that the Company must submit a plan to regain compliance with Nasdaq Listing Rule 5250(c )(1).

As a result of filing the Form 10-K on April 24, 2023, the Company believes it has fully regained compliance with the Nasdaq continued listing requirements.

On April 21, 2023 the Company received a letter (the “Second Notice”) from The Nasdaq Stock Market notifying the Company that, because the closing bid price for its common stock has been below $1.00 per share for 30 consecutive business days, it no longer complies with the minimum bid price requirement for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”), and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive business days.

The Second Notice had no immediate effect on the listing of the Company’s common stock on The Nasdaq Capital Market. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until October 18, 2023 to regain compliance with the Minimum Bid Price Requirement. During the compliance period, the Company’s shares of common stock will continue to be listed and traded on The Nasdaq Capital Market. To regain compliance, the closing bid price of the Company’s common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during the 180 calendar day grace period.

In the event the Company is not in compliance with the Minimum Bid Price Requirement by October 18, 2023, the Company may be afforded a second 180 calendar day grace period. To qualify, the Company would be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement. In addition, the Company would be required to provide written notice of its intention to cure the minimum bid price deficiency during this second 180-day compliance period by effecting a reverse stock split, if necessary.

The Company intends to actively monitor the bid price for its common stock between now and October 18, 2023 and will consider available options to regain compliance with the Minimum Bid Price Requirement.

Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Principles of Consolidation

Estimates

Segment Information

Cash and Cash Equivalents

Restricted Cash

The reconciliation of cash and restricted cash is as follows:

	December 31, 2022		December 31, 2021

Cash	$	6,051,713	$	4,986,559
Restricted cash		121,636		108,083
Total cash and restricted cash	$	6,173,349	$	5,094,642

Revenue Recognition

Lease Receivables and Allowance for Doubtful Accounts

	December 31, 2022			December 31, 2021

Lease receivables	$	48,618,843		$	53,176,432
Allowance for doubtful accounts		(13,078,800	)		(27,703,278	)
Lease receivables, net	$	35,540,043		$	25,473,154

	Year Ended December 31, 2022			Year Ended December 31, 2021
Beginning balance	$	27,703,278		$	22,138,541
Provision		57,420,480			40,342,618
Accounts written off		(72,044,958	)		(34,777,881	)
Ending balance	$	13,078,800		$	27,703,278

Lease Merchandise, net

The net lease merchandise balances consisted of the following as of December 31, 2022 and December 31, 2021:

	December 31, 2022			December 31, 2021
Lease merchandise at cost	$	62,379,920		$	72,159,063
Accumulated depreciation and impairment reserve		(30,829,479	)		(31,216,951	)
Lease merchandise, net	$	31,550,441		$	40,942,112

Loan receivables at fair value

Further details concerning loan receivables at fair value are presented within “Fair Value Measurement” section in this Note.

Lease accounting

	Year ended December 31,
	2022			2021
Lease billings and accruals	$	154,535,446		$	164,848,050
Provision for doubtful accounts		(57,420,480	)		(40,342,618	)
Gain on sale of lease receivables		8,821,106			-
Lease revenues and fees	$	105,936,072		$	124,505,432

Deferred Debt Issuance Costs

Intangible Assets

Property and Equipment

Software Costs

Data Costs

Capitalized data costs net of its amortization are included in the consolidated balance sheets in other assets, net.

Operating Expenses

Operating Expenses - Operating expenses include corporate overhead expenses such as salaries, stock-based compensation, insurance, occupancy, and other administrative expenses.

Marketing Costs

Per Share Data

	December 31,
	2022		2021
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		116,903
Common Stock Options		3,919,228		3,080,904
Common Stock Warrants		2,255,184		2,255,184
Performance Share Units		790,327		-
		13,152,568		11,523,917

The following table sets forth the computation of basic and diluted earnings per common share for the twelve months ended December 31, 2022 and 2021:

	Year ended
	December 31,
	2022			2021
Numerator
Net income	$	13,631,719		$	3,272,774
Series 2 Convertible Preferred Stock dividends		(3,730,580	)		(2,439,099	)
Net income attributable to common and Series 1 Convertible Preferred Stock		9,901,139			833,675
Net income attributable to Series 1 Convertible Preferred Stock		(140,374	)		(34,106	)
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock		38,416			25,418
Net income attributable to common shares - Numerator for basic and diluted EPS	$	9,799,181		$	824,987
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS		21,646,896			21,387,960
Effect of dilutive securities:		-
Series 1 Convertible Preferred Stock		225,231			-
Common stock options and performance share units		351,576			978,978
Common stock warrants		201,651			861,026
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS		22,425,354			23,227,964
Basic EPS	$	0.45		$	0.04
Diluted EPS	$	0.44		$	0.04

Stock-Based Compensation

Fair Value of Financial Instruments

The Company utilizes the fair value option on its entire loan receivables portfolio purchased from its bank partner and for the portfolio acquired in the Revolution Transaction (See Note 14).

Fair Value Measurements

	●	Level 1: Quoted prices in active markets for identical assets or liabilities.

	●	Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable.

●

Level 3: Unobservable inputs for the asset or liability measured.

The Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021 is as follows:

	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

	Fair Value Measurement Using						Carrying
Financial instruments – As of December 31, 2021 (1)	Level 1		Level 2		Level 3		Amount
Loan receivables at fair value	$	-	$	-	$	3,560,108	$	3,151,377

(1)

The company estimates the fair value of the promissory note related to acquisition using discounted cash flow model. The model uses inputs including estimated cash flows and a discount rate.

The following describes the primary inputs to the discounted cash flow models that require significant judgement:

●

	Year Ended December 31, 2022			Year Ended December 31, 2021
Beginning balance	$	3,560,108		$	89,445
Purchases of loan participation		31,216,406			3,309,732
Obligation of loan participation		12,931			163,307
Purchase of loan portfolio in Revolution Transaction		13,320,326			-
Loan originations		5,519,303			-
Interest and fees⁽¹⁾		16,680,080			672,340
Collections		(27,816,669	)		(923,700	)
Net charge off ⁽¹⁾		(10,653,751	)		(146,923	)
Net change in fair value⁽¹⁾		1,093,770			395,907
Ending balance	$	32,932,504		$	3,560,108

⁽¹⁾	Included in loan revenues and fees, net of changes in fair value in the consolidated statements of operations

	December 31, 2022									December 31, 2021
	Minimum			Maximum			Weighted Average⁽²⁾			Minimum			Maximum			Weighted Average
Estimated losses⁽¹⁾		2.0	%		92.4	%		40.8	%		26.0	%		35.0	%		34.6	%
Servicing costs		-			-			4.5	%		-			-			4.6	%
Discount rate		-			-			21.0	%		-			-			11.1	%

(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.

Other relevant data as of December 31, 2022 and December 31, 2021 concerning loan receivables at fair value are as follows:

	December 31, 2022		December 31, 2021
Aggregate fair value of loan receivables that are 90 days or more past due	$	203,182	$	-
Unpaid principal balance of loan receivables that are 90 days or more past due		1,841,812		-
Aggregate fair value of loan receivables in non-accrual status		6,947,224		-

Income Taxes

Reclassifications

Reclassifications

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Significant Accounting Policies [Abstract]

Schedule of reconciliation of cash and restricted cash

	December 31, 2022		December 31, 2021

Cash	$	6,051,713	$	4,986,559
Restricted cash		121,636		108,083
Total cash and restricted cash	$	6,173,349	$	5,094,642

Schedule of accounts receivable

	December 31, 2022			December 31, 2021

Lease receivables	$	48,618,843		$	53,176,432
Allowance for doubtful accounts		(13,078,800	)		(27,703,278	)
Lease receivables, net	$	35,540,043		$	25,473,154

Schedule of allowance for doubtful accounts

	Year Ended December 31, 2022			Year Ended December 31, 2021
Beginning balance	$	27,703,278		$	22,138,541
Provision		57,420,480			40,342,618
Accounts written off		(72,044,958	)		(34,777,881	)
Ending balance	$	13,078,800		$	27,703,278

Schedule of net leased merchandise

	December 31, 2022			December 31, 2021
Lease merchandise at cost	$	62,379,920		$	72,159,063
Accumulated depreciation and impairment reserve		(30,829,479	)		(31,216,951	)
Lease merchandise, net	$	31,550,441		$	40,942,112

Schedule of lessor revenues and fees

	Year ended December 31,
	2022			2021
Lease billings and accruals	$	154,535,446		$	164,848,050
Provision for doubtful accounts		(57,420,480	)		(40,342,618	)
Gain on sale of lease receivables		8,821,106			-
Lease revenues and fees	$	105,936,072		$	124,505,432

Schedule of series 2 convertible preferred stock, options, performance share units and warrants

	December 31,
	2022		2021
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		116,903
Common Stock Options		3,919,228		3,080,904
Common Stock Warrants		2,255,184		2,255,184
Performance Share Units		790,327		-
		13,152,568		11,523,917

Schedule of basic and diluted earnings per share

	Year ended
	December 31,
	2022			2021
Numerator
Net income	$	13,631,719		$	3,272,774
Series 2 Convertible Preferred Stock dividends		(3,730,580	)		(2,439,099	)
Net income attributable to common and Series 1 Convertible Preferred Stock		9,901,139			833,675
Net income attributable to Series 1 Convertible Preferred Stock		(140,374	)		(34,106	)
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock		38,416			25,418
Net income attributable to common shares - Numerator for basic and diluted EPS	$	9,799,181		$	824,987
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS		21,646,896			21,387,960
Effect of dilutive securities:		-
Series 1 Convertible Preferred Stock		225,231			-
Common stock options and performance share units		351,576			978,978
Common stock warrants		201,651			861,026
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS		22,425,354			23,227,964
Basic EPS	$	0.45		$	0.04
Diluted EPS	$	0.44		$	0.04

Schedule of fair value assets measured on recurring basis

	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

	Fair Value Measurement Using						Carrying
Financial instruments – As of December 31, 2021 (1)	Level 1		Level 2		Level 3		Amount
Loan receivables at fair value	$	-	$	-	$	3,560,108	$	3,151,377

(1)

Schedule of fair value assets measured on recurring basis, unobservable input reconciliation

	Year Ended December 31, 2022			Year Ended December 31, 2021
Beginning balance	$	3,560,108		$	89,445
Purchases of loan participation		31,216,406			3,309,732
Obligation of loan participation		12,931			163,307
Purchase of loan portfolio in Revolution Transaction		13,320,326			-
Loan originations		5,519,303			-
Interest and fees⁽¹⁾		16,680,080			672,340
Collections		(27,816,669	)		(923,700	)
Net charge off ⁽¹⁾		(10,653,751	)		(146,923	)
Net change in fair value⁽¹⁾		1,093,770			395,907
Ending balance	$	32,932,504		$	3,560,108

⁽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

	December 31, 2022									December 31, 2021
	Minimum			Maximum			Weighted Average⁽²⁾			Minimum			Maximum			Weighted Average
Estimated losses⁽¹⁾		2.0	%		92.4	%		40.8	%		26.0	%		35.0	%		34.6	%
Servicing costs		-			-			4.5	%		-			-			4.6	%
Discount rate		-			-			21.0	%		-			-			11.1	%

(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

	December 31, 2022		December 31, 2021
Aggregate fair value of loan receivables that are 90 days or more past due	$	203,182	$	-
Unpaid principal balance of loan receivables that are 90 days or more past due		1,841,812		-
Aggregate fair value of loan receivables in non-accrual status		6,947,224		-

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of balance sheet information related to leases

	Balance Sheet Classification	December 31, 2022		December 31, 2021
Assets
Operating Lease Asset	Right of use asset, net	$	1,395,741	$	1,534,512
Finance Lease Asset	Right of use asset, net		10,529		18,818
Total Lease Assets		$	1,406,270	$	1,553,330

Liabilities
Operating Lease Liability – current portion	Current Lease Liabilities	$	199,535	$	163,939
Finance Lease Liability – current portion	Current Lease Liabilities		8,466		8,793
Operating Lease Liability – net of current portion	Long Term Lease Liabilities		1,562,022		1,761,558
Finance Lease Liability – net of current portion	Long Term Lease Liabilities		4,600		13,065
Total Lease Liabilities		$	1,774,623	$	1,947,355

Schedule of weighted-average discount rate and weighted-average remaining lease term

	Weighted Average Discount Rate			Weighted Average Remaining Lease Term (in years)
Operating Leases		13.03	%		6
Finance Leases		13.38	%		1

Schedule of supplemental cash flow information related to operating leases

	Twelve Months ended
	December 31,
	2022		2021
Cash payments for operating leases	$	405,443	$	400,771
Cash payments for finance leases		11,184		11,184

Schedule of undiscounted operating lease liabilities

	Operating Leases
2023	$	417,606
2024		430,134
2025		443,038
2026		456,330
2027		470,019
2028 and thereafter		303,574
Total undiscounted cash flows		2,520,701
Less: interest		(759,144	)
Present value of lease liabilities	$	1,761,557

Schedule of undiscounted finance lease liabilities

	Finance Leases
2023	$	9,699
2024		4,782
Total undiscounted cash flows		14,481
Less: interest		(1,415	)
Present value of lease liabilities	$	13,066

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	Estimated Useful Lives	December 31, 2022			December 31, 2021
Furniture, fixtures and vehicle	2-5 years	$	395,468		$	391,669
Website and internal use software	3 years		20,542,457			15,302,020
Computers and software	3-7 years		3,672,103			2,281,975
			24,610,028			17,975,664
Less: accumulated depreciation and amortization			(16,523,166	)		(12,485,230	)
		$	8,086,862		$	5,490,434

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

	December 31, 2022
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patent	10 years	$	30,760	$	(28,876	)	$	1,884
Franchisee contract-based agreements	10 years		12,744,367		(106,203	)		12,638,164
Liberty Loan brand	10 years		340,218		(2,835	)		337,383
Non-compete agreements	10 years		86,113		(718	)		85,395
Non contractual customer relationships	5 years		1,952,371		(32,540	)		1,919,831
Customer list	3 years		184,825		(5,133	)		179,692
		$	15,338,654	$	(176,305	)	$	15,162,349

	December 31, 2021
	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patent		10 years	$	30,760	$	(25,800	)	$	4,960
			$	30,760	$	(25,800	)	$	4,960

Promissory Notes-Related Parties (Tables)

12 Months Ended

Dec. 31, 2022

Promissory Notes-Related Parties [Abstract]

Schedule of amounts payable under the promissory notes

	Debt Principal		Interest
2023	$	1,000,000	$	209,455
2024	$	10,750,000	$	-

Loan Payable Under Credit Agreement (Tables)

12 Months Ended

Dec. 31, 2022

Loan Payable Under Credit Agreement [Abstract]

Schedule of covenant requirements, and flexshopper's actual results

	December 31, 2022
	Required Covenant		Actual Position
Equity Book Value not less than	$	9,636,387	$	31,034,673
Liquidity greater than		1,500,000		6,051,713
Cash greater than		500,000		6,173,350
Consolidated Total Debt to Equity Book Value ratio not to exceed		5.25		3.14

Capital Structure (Tables)

12 Months Ended

Dec. 31, 2022

Capital Structure [Abstract]

Schedule of weighted average grant date fair value

	Warrants		Expense		Grant date fair value
Grant Date	Granted		Recorded		Per Warrant
January 31, 2021		40,000	$	73,595	$	1.84
February 29, 2021		40,000		76,318		1.91
March 31, 2021		40,000		63,010		1.58
April 30, 2021		40,000		60,542		1.51
May 31, 2021		40,000		63,156		1.58
June 30, 2021		40,000		68,228		1.71
July 31, 2021		40,000		55,658		1.39
August 31, 2021		40,000		62,301		1.56
		320,000		522,808		1.63

Schedule of outstanding stock warrants

	Exercise	Common Stock Warrants	Series 2 Preferred Stock Warrants		Weighted Average Remaining Contractual Life
	Price	Outstanding	Outstanding		Dec 31, 2022	Dec 31, 2021
$	1.25	1,055,184			1 year	2 years
$	1.25	160,000			Less than 1 year	1 year
$	1.34	40,000			Less than 1 year	1 year
$	1.40	40,000			Less than 1 year	1 year
$	1.54	40,000			Less than 1 year	1 year
$	1.62	40,000			Less than 1 year	1 year
$	1.68	40,000			2 years	3 years
$	1.69	40,000			Less than 1 year	1 year
$	1.74	40,000			Less than 1 year	1 year
$	1.76	40,000			Less than 1 year	1 year
$	1.91	40,000			Less than 1 year	1 year
$	1.95	40,000			2 years	3 years
$	2.00	40,000			Less than 1 year	1 year
$	2.01	40,000			Less than 1 year	1 year
$	2.08	40,000			2 years	3 years
$	2.45	40,000			Less than 1 year	1 year
$	2.53	40,000			Less than 1 year	1 year
$	2.57	40,000			2 years	3 years
$	2.70	40,000			3 years	4 years
$	2.78	40,000			Less than 1 year	1 year
$	2.79	40,000			2 years	3 years
$	2.89	40,000			2 years	3 years
$	2.93	40,000			Less than 1 year	1 year
$	2.97	40,000			2 years	3 years
$	3.09	40,000			2 years	3 years
$	3.17	40,000			2 years	3 years
$	3.19	40,000			3 years	4 years
$	3.27	40,000			2 years	3 years
$	1,250		439	*	Less than 1 year	1 year
		2,255,184	439

(*)	At December 31, 2022 and 2021, these warrants were exercisable into Series 2 Preferred Stock which, in turn, were convertible into 116,903 shares of common stock

Equity Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense

	Year Ended December 31,
	2022		2021
Stock options	$	997,830	$	1,125,819
Performance share units (“PSU”)		-		-
Total stock-based compensation	$	997,830	$	1,125,819

Schedule of measured the fair value of each stock option award on the date of grant using the black-scholes-merton

	Year ended December 31, 2022			Year ended December 31, 2021
Exercise price	$	1.45		$	2.52
Expected life		6 years			5 years
Expected volatility		71	%		91	%
Dividend yield		0	%		0	%
Risk-free interest rate		2.25	%		0.57	%

Schedule of stock option

	Number of options			Weighted average exercise price		Weighted average contractual term (years)		Aggregate intrinsic value
Outstanding at January 1, 2022		3,080,904		$	2.06			$	1,923,642
Granted		1,179,183			1.45				-
Exercised		(308,526	)		0.85				480,029
Forfeited		(7,333	)		2.22				2,273
Expired		(25,000	)		1.70				-
Outstanding at December 31, 2022		3,919,228		$	1.97		6.78	$	52,223
Vested and exercisable at December 31, 2022		3,152,169		$	2.02		6.52	$	52,223

Outstanding at January 1, 2021		2,595,700		$	1.92			$	2,491,026
Granted		626,238			2.52				74,482
Exercised		(82,333	)		0.83				151,544
Forfeited		(58,701	)		2.65				58,285
Outstanding at December 31, 2021		3,080,904		$	2.06		6.72	$	1,923,642
Vested and exercisable at December 31, 2021		2,307,571		$	2.04		6.87	$	1,674,967

Schedule of activity in performance share units

	Number of performance share units		Weighted average grant date fair value
Non- vested at January 1, 2022		-		-
Granted		790,327	$	1.53
Forfeited/ unearned		-		-
Vested		-		-
Non- vested at December 31, 2022		790,327	$	1.53

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Schedule of the benefit for income taxes from continuing operations

	2022			2021
Federal tax at statutory rate	$	(630,700	)	$	852,198
State tax, net of federal tax		(736,962	)		(487,093	)
Tax impact on gain on bargain purchase		(3,036,868	)		-
Permanent differences		123,933			(259,967	)
Change in statutory rate		7,862			59,168
Change in valuation allowance		(12,525,690	)		614,112
Other		163,374			6,892
Benefit/ (expense) for income taxes	$	(16,635,051	)	$	785,310

Schedule of deferred tax assets and deferred tax liabilities

	2022			2021
Deferred tax assets (liabilities):
Equity based compensation	$	428,111		$	479,956
Allowance for doubtful accounts		3,240,968			6,847,189
Fixed assets		(9,153,508	)		(8,085,957	)
Lease impairment		989,120			423,022
Lease Liability		439,758			481,312
Right of use asset		(348,478	)		(383,924	)
Accrued expenses		(16,962	)		-
Change in fair value of loans receivable		2,264,813			-
Tax credit carryforward		32,394			32,394
Sec 163(j) carryforward		2,703,639			-
Federal loss carry-forwards		12,304,134			11,838,840
State loss carry forward		3,860,104			343,914
Intangible assets		(4,730,265	)		-
Other		-			(53,414	)
Gross deferred tax		12,013,828			11,923,332
Valuation allowance		-			(12,418,498	)
Net deferred tax assets/ liability	$	12,013,828		$	(495,166	)

Schedule of income tax expense (benefits)

	2022			2021
Current Income Tax:
Federal	$	-		$	-
State		754,505			290,144
Deferred Income Tax:
Federal		(13,439,360	)		495,166
State		(3,950,196	)		-
	$	(16,635,051	)	$	785,310

Revolution Transaction (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of summarizes the fair value of the identifiable net assets acquired

	Dec 3, 2022 Fair Value
Cash		2,938,355
Loan receivables at fair value		13,320,326
Property and equipment, net		136,249
Intangible assets		15,307,894
Total assets		31,702,824
Purchase consideration payable related to acquisition		8,539,582
Accounts payable		506,607
Deferred tax liability		4,773,370
Total liabilities		13,819,559
Net assets acquired		17,883,265
Promissory note related to acquisition		3,421,991
Purchase price consideration		3,421,991

Business (Details)	Dec. 31, 2022
FlexShopper, LLC [Member]
Business (Details) [Line Items]
Ownership percentage	100.00%
FlexLending, LLC [Member]
Business (Details) [Line Items]
Ownership percentage	100.00%
Flex Revolution, LLC [Member]
Business (Details) [Line Items]
Ownership percentage	100.00%

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies (Details) [Line Items]
Accounts receivable charged off against allowance	$ 72,044,958	$ 34,777,881
Net of changes in fair value of gain	9,559,979	248,984
Amortization included in interest expense	$ 227,568	213,814
Intangible assets, terms	10 years
Amortization of intangible assets	$ 150,505
Amortization of intangible assets	$ 150,505	3,076
Estimated useful lives	7 years
Property and equipment	$ 4,037,936	2,786,109
Capitalized software costs	5,240,437	2,816,939
Capitalized development		4,361
Capitalized software amortization expense	2,907,435	2,317,626
Capitalized data costs	1,640,885	884,160
Capitalized data costs amortization expense	$ 581,173	86,717
Largest benefit percentage	50.00%
Promissory Notes [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Amortization included in interest expense	$ 1,274	$ 7,002

Summary of Significant Accounting Policies (Details) - Schedule of reconciliation of cash and restricted cash - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Reconciliation of Cash and Restricted Cash [Abstract]
Cash	$ 6,051,713	$ 4,986,559
Restricted cash	121,636	108,083
Total cash and restricted cash	$ 6,173,349	$ 5,094,642

Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Accounts Receivable [Abstract]
Lease receivables	$ 48,618,843	$ 53,176,432
Allowance for doubtful accounts	(13,078,800)	(27,703,278)
Lease receivables, net	$ 35,540,043	$ 25,473,154

Summary of Significant Accounting Policies (Details) - Schedule of allowance for doubtful accounts - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Allowance for Doubtful Accounts [Abstract]
Beginning balance	$ 27,703,278	$ 22,138,541
Provision	57,420,480	40,342,618
Accounts written off	(72,044,958)	(34,777,881)
Ending balance	$ 13,078,800	$ 27,703,278

Summary of Significant Accounting Policies (Details) - Schedule of net leased merchandise - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Net Leased Merchandise [Abstract]
Lease merchandise at cost	$ 62,379,920	$ 72,159,063
Accumulated depreciation and impairment reserve	(30,829,479)	(31,216,951)
Lease merchandise, net	$ 31,550,441	$ 40,942,112

Summary of Significant Accounting Policies (Details) - Schedule of lessor revenues and fees - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Lessor Revenues and Fees [Abstract]
Lease billings and accruals	$ 154,535,446	$ 164,848,050
Provision for doubtful accounts	(57,420,480)	(40,342,618)
Gain on sale of lease receivables	8,821,106
Lease revenues and fees	$ 105,936,072	$ 124,505,432

Summary of Significant Accounting Policies (Details) - Schedule of series 2 convertible preferred stock, options, performance share units and warrants - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	13,152,568	11,523,917
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,919,228	3,080,904
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,255,184	2,255,184
Performance Share Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	790,327
Series 1 Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	225,231	225,231
Series 2 Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	5,845,695	5,845,695
Series 2 Convertible Preferred Stock issuable upon exercise of warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	116,903	116,903

Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted earnings per share - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Numerator
Net income	$ 13,631,719	$ 3,272,774
Series 2 Convertible Preferred Stock dividends	(3,730,580)	(2,439,099)
Net income attributable to common and Series 1 Convertible Preferred Stock	9,901,139	833,675
Net income attributable to Series 1 Convertible Preferred Stock	(140,374)	(34,106)
Series 2 Convertible Preferred Stock dividends attributable to Series 1 Convertible Preferred Stock	38,416	25,418
Net income attributable to common shares - Numerator for basic and diluted EPS	$ 9,799,181	$ 824,987
Denominator
Weighted average of common shares outstanding- Denominator for basic EPS (in Shares)	21,646,896	21,387,960
Effect of dilutive securities:
Series 1 Convertible Preferred Stock	$ 225,231
Common stock options and performance share units (in Shares)	351,576	978,978
Common stock warrants (in Shares)	201,651	861,026
Adjusted weighted average of common shares outstanding and assumed conversions- Denominator diluted EPS (in Shares)	22,425,354	23,227,964
Basic EPS (in Dollars per share)	$ 0.45	$ 0.04
Diluted EPS (in Dollars per share)	$ 0.44	$ 0.04

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis - Carrying Amount [Member] - USD ($)

Dec. 31, 2022

Dec. 31, 2021

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]

Loan receivables at fair value

^[1]

$ 42,747,668

$ 3,151,377

Promissory note related to acquisition

3,158,471

Level 1 [Member]

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]

Loan receivables at fair value

^[1]

Level 2 [Member]

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]

Loan receivables at fair value

^[1]

Level 3 [Member]

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]

Loan receivables at fair value

^[1]

32,932,504

$ 3,560,108

Promissory note related to acquisition

$ 3,158,471

[1]

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis, unobservable input reconciliation - Level 3 [Member] - USD ($)

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Schedule of Fair Value Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]

Beginning balance

$ 3,560,108

$ 89,445

Purchases of loan participation

31,216,406

3,309,732

Obligation of loan participation

12,931

163,307

Purchase of loan portfolio in Revolution Transaction

13,320,326

Loan originations

5,519,303

Interest and fees

^[1]

16,680,080

672,340

Collections

(27,816,669)

(923,700)

Net charge off

^[1]

(10,653,751)

(146,923)

Net change in fair value

^[1]

1,093,770

395,907

Ending balance

$ 32,932,504

$ 3,560,108

[1]	Included in loan revenues and fees, net of changes in fair value in the consolidated statements of operations

Summary of Significant Accounting Policies (Details) - Schedule of quantitative information about the inputs used in fair value measurement

Dec. 31, 2022

Dec. 31, 2021

Minimum [Member]

Summary of Significant Accounting Policies (Details) - Schedule of quantitative information about the inputs used in fair value measurement [Line Items]

Estimated losses

^[1]

2.00%

26.00%

Servicing costs

Discount rate

Maximum [Member]

Summary of Significant Accounting Policies (Details) - Schedule of quantitative information about the inputs used in fair value measurement [Line Items]

Estimated losses

^[1]

92.40%

35.00%

Servicing costs

Discount rate

Weighted Average [Member]

Summary of Significant Accounting Policies (Details) - Schedule of quantitative information about the inputs used in fair value measurement [Line Items]

Estimated losses

^[1]

40.80%

^[2]

34.60%

Servicing costs

4.50%

^[2]

4.60%

Discount rate

21.00%

^[2]

11.10%

[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.

Summary of Significant Accounting Policies (Details) - Schedule of concerning loan receivables at fair value - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Concerning Loan Receivables at Fair Value [Abstract]
Aggregate fair value of loan receivables that are 90 days or more past due	$ 203,182
Unpaid principal balance of loan receivables that are 90 days or more past due	1,841,812
Aggregate fair value of loan receivables in non-accrual status	$ 6,947,224

Leases (Details)		1 Months Ended	12 Months Ended
Leases (Details)	Jan. 31, 2019 USD ($) m²	Sep. 30, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Leases [Abstract]
Rent expanses			$ 2,300
Term of lease	108 months		12 months
Area of land (in Square Meters) \| m²	21,622
Exercise of stock options into common stock	$ 31,500
Annual percentage	3.00%
Monthly rent		$ 8,800
Lease costs			$ 389,647	$ 401,463

Leases (Details) - Schedule of balance sheet information related to leases - USD ($)	12 Months Ended
	Jan. 31, 2019	Dec. 31, 2022	Dec. 31, 2021
Assets
Operating Lease Asset		$ 1,406,270	$ 1,553,330
Total Lease Assets		1,406,270	1,553,330
Liabilities
Total Lease Liabilities		1,774,623	1,947,355
Right of use asset, net [Member]
Assets
Balance Sheet Classification, Operating Lease Asset	Right of use asset, net
Operating Lease Asset		1,395,741	1,534,512
Balance Sheet Classification, Finance Lease Asset	Right of use asset, net
Finance Lease Asset		10,529	18,818
Current Lease Liabilities [Member]
Liabilities
Balance Sheet Classification, Operating Lease Liability – current portion	Current Lease Liabilities
Operating Lease Liability - current portion		199,535	163,939
Balance Sheet Classification, Finance Lease Liability – current portion	Current Lease Liabilities
Finance Lease Liability - current portion		8,466	8,793
Long Term Lease Liabilities [Member]
Liabilities
Balance Sheet Classification, Operating Lease Liability – net of current portion	Long Term Lease Liabilities
Operating Lease Liability - net of current portion		1,562,022	1,761,558
Balance Sheet Classification, Finance Lease Liability – net of current portion	Long Term Lease Liabilities
Finance Lease Liability - net of current portion		$ 4,600	$ 13,065

Leases (Details) - Schedule of weighted-average discount rate and weighted-average remaining lease term	Dec. 31, 2022
Operating Leases [Member]
Leases (Details) - Schedule of weighted-average discount rate and weighted-average remaining lease term [Line Items]
Weighted Average Discount Rate	13.03%
Weighted Average Remaining Lease Term (in years)	6 years
Finance Leases [Member]
Leases (Details) - Schedule of weighted-average discount rate and weighted-average remaining lease term [Line Items]
Weighted Average Discount Rate	13.38%
Weighted Average Remaining Lease Term (in years)	1 year

Leases (Details) - Schedule of supplemental cash flow information related to operating leases - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Supplemental Cash Flow Information Related to Operating Leases [Abstract]
Cash payments for operating leases	$ 405,443	$ 400,771
Cash payments for finance leases	$ 11,184	$ 11,184

Leases (Details) - Schedule of undiscounted operating lease liabilities	Dec. 31, 2022 USD ($)
Schedule of Undiscounted Operating Lease Liabilities [Abstract]
2023	$ 417,606
2024	430,134
2025	443,038
2026	456,330
2027	470,019
2028 and thereafter	303,574
Total undiscounted cash flows	2,520,701
Less: interest	(759,144)
Present value of lease liabilities	$ 1,761,557

Leases (Details) - Schedule of undiscounted finance lease liabilities	12 Months Ended
	Dec. 31, 2022 USD ($)
Schedule of undiscounted finance lease liabilities [Abstract]
2023	$ 9,699
2024	4,782
Total undiscounted cash flows	14,481
Less: interest	(1,415)
Present value of lease liabilities	$ 13,066

Property and Equipment (Details) - USD ($)	12 Months Ended
Property and Equipment (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 4,037,936	$ 2,786,109

Property and Equipment (Details) - Schedule of property and equipment - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,610,028	$ 17,975,664
Less: accumulated depreciation and amortization	(16,523,166)	(12,485,230)
Property and equipment, net	8,086,862	5,490,434
Furniture, fixtures and vehicle [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 395,468	391,669
Furniture, fixtures and vehicle [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	2 years
Furniture, fixtures and vehicle [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years
Website and internal use software [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Property and equipment, gross	$ 20,542,457	15,302,020
Computers and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,672,103	$ 2,281,975
Computers and software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Computers and software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	7 years

Intangible Assets (Details) - USD ($)	12 Months Ended
Intangible Assets (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense	$ 150,505	$ 3,076

Intangible Assets (Details) - Schedule of intangible assets - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years
Gross Carrying Amount	$ 15,338,654	$ 30,760
Accumulated Amortization	(176,305)	(25,800)
Net Carrying Amount	$ 15,162,349	$ 4,960
Patent [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years	10 years
Gross Carrying Amount	$ 30,760	$ 30,760
Accumulated Amortization	(28,876)	(25,800)
Net Carrying Amount	$ 1,884	$ 4,960
Franchisee contract-based agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years
Gross Carrying Amount	$ 12,744,367
Accumulated Amortization	(106,203)
Net Carrying Amount	$ 12,638,164
Liberty Loan brand [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years
Gross Carrying Amount	$ 340,218
Accumulated Amortization	(2,835)
Net Carrying Amount	$ 337,383
Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years
Gross Carrying Amount	$ 86,113
Accumulated Amortization	(718)
Net Carrying Amount	$ 85,395
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	5 years
Gross Carrying Amount	$ 1,952,371
Accumulated Amortization	(32,540)
Net Carrying Amount	$ 1,919,831
Customer list [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years
Gross Carrying Amount	$ 184,825
Accumulated Amortization	(5,133)
Net Carrying Amount	$ 179,692

Promissory Notes-Related Parties (Details) - USD ($)	12 Months Ended
Promissory Notes-Related Parties (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Jan. 25, 2019
Promissory Notes-Related Parties (Details) [Line Items]
Principal accrued unpaid interest outstanding	$ 1,017,826	$ 1,011,439
Interests paid	196,338	148,011
Interests expensed	$ 211,349	143,940
Description of notes	This last amendment extended the maturity date from April 1, 2022 to July 1, 2024 and increased the credit commitment from $3,750,000 to $11,000,000.
NRNS [Member]
Promissory Notes-Related Parties (Details) [Line Items]
Principal amount	$ 3,750,000
Principal accrued unpaid interest outstanding	10,941,629	3,792,923
Interests paid	1,541,493	555,749
Interests expensed	$ 1,677,103	$ 540,360
Bear interest rate	20.45%
Chief Financial Officer [Member]
Promissory Notes-Related Parties (Details) [Line Items]
Principal amount			$ 1,000,000
Bear interest rate	20.45%

Promissory Notes-Related Parties (Details) - Schedule of amounts payable under the promissory notes	12 Months Ended
	Dec. 31, 2022 USD ($)
2023 [Member]
Schedule of Amounts Payable Under the Promissory Notes [Abstract]
Debt Principal	$ 1,000,000
Interest	209,455
2024 [Member]
Schedule of Amounts Payable Under the Promissory Notes [Abstract]
Debt Principal	10,750,000
Interest

Loan Payable Under Credit Agreement (Details) - USD ($)			1 Months Ended		12 Months Ended
Loan Payable Under Credit Agreement (Details) - USD ($)	Nov. 10, 2022	Jul. 01, 2022	Sep. 27, 2022	Jan. 29, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 08, 2022	Mar. 06, 2015
Loan Payable Under Credit Agreement (Details) [Line Items]
Lender fee				$ 237,000
Loans percentage		100.00%	100.00%
Borrowed credit agreement					$ 36,455,000	$ 19,850,000
Repaid credit agreement					$ 5,730,000	6,575,000
Percentage of credit agreement interest rate					4.00%
Debt [Member]
Loan Payable Under Credit Agreement (Details) [Line Items]
Outstanding balance under credit agreement					$ 81,200,000	50,475,000
Credit Agreement [Member]
Loan Payable Under Credit Agreement (Details) [Line Items]
Borrow from lender								$ 57,500,000
Description of credit facility				This Amendment extended the Commitment Termination Date to April 1, 2024, amended other covenant requirements, partially removed indebtedness covenants and amended eligibility rules.
Interest rate				11.00%
Bear interest rate					15.45%
Increased commitment amount							$ 82,500,000
Available commitment balance	$ 110,000,000
Interest expense					$ 8,902,935	4,323,830
Credit Agreement [Member] \| Debt [Member]
Loan Payable Under Credit Agreement (Details) [Line Items]
Unamortized issuance costs					$ 352,252	$ 413,076

Loan Payable Under Credit Agreement (Details) - Schedule of covenant requirements, and flexshopper's actual results	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares
Required Covenant [Member]
Loan Payable Under Credit Agreement (Details) - Schedule of covenant requirements, and flexshopper's actual results [Line Items]
Equity Book Value not less than	$ 9,636,387
Liquidity greater than	1,500,000
Cash greater than	$ 500,000
Consolidated Total Debt to Equity Book Value ratio not to exceed (in Dollars per share) \| $ / shares	$ 5.25
Actual Position [Member]
Loan Payable Under Credit Agreement (Details) - Schedule of covenant requirements, and flexshopper's actual results [Line Items]
Equity Book Value not less than	$ 31,034,673
Liquidity greater than	6,051,713
Cash greater than	$ 6,173,350
Consolidated Total Debt to Equity Book Value ratio not to exceed (in Dollars per share) \| $ / shares	$ 3.14

Capital Structure (Details) - USD ($)		1 Months Ended	12 Months Ended
Capital Structure (Details) - USD ($)	Aug. 31, 2020	Sep. 30, 2018	Dec. 31, 2022	Dec. 31, 2021
Capital Structure (Details) [Line Items]
Common stock, share authorized			40,000,000	40,000,000
Common stock, par value (in Dollars per share)			$ 0.0001	$ 0.0001
Warrant exercise price (in Dollars per share)	$ 1.6
Warrants expiration period	4 years
Warrants convertible into common stock			116,903
Preferred Stock [Member]
Capital Structure (Details) [Line Items]
Preferred stock, shares authorized			500,000
Preferred stock, par value (in Dollars per share)			$ 0.001
Common stock [Member]
Capital Structure (Details) [Line Items]
Common stock price per share (in Dollars per share)			$ 23
Common stock, share authorized			40,000,000
Common stock, par value (in Dollars per share)			$ 0.0001
Series 1 Convertible Preferred Stock [Member]
Capital Structure (Details) [Line Items]
Convertible preferred stock conversion basis, description			As of December 31, 2022, each share of Series 1 Convertible Preferred Stock was convertible into 1.32230 shares of the Company’s common stock, subject to certain anti-dilution rights.
Convertible preferred stock, terms of conversion, description			As of December 31, 2022 and 2021, there were 170,332 shares of Series 1 Convertible Preferred Stock outstanding, which were convertible into 225,231 shares of common stock.
Series 1 Convertible Preferred Stock [Member] \| Preferred Stock [Member]
Capital Structure (Details) [Line Items]
Preferred stock, shares authorized			250,000
Series 2 Convertible Preferred Stock [Member]
Capital Structure (Details) [Line Items]
Preferred stock, designated			25,000
Convertible preferred stock, shares issued upon conversion			20,000
Gross proceeds from sale of shares (in Dollars)			$ 20,000,000
Additional sale of shares			1,952
Gross proceeds (in Dollars)			$ 1,950,000
Preferred shares sold per share (in Dollars per share)			$ 1,000
Stated value, percentage			10.00%
Cumulative accrued dividends (in Dollars)			$ 19,084,376
Preferred stock conversion into common stock, shares			266
Description of warrants expiration			In connection with the issuance of Series 2 Convertible Preferred Stock in June 2016, the Company issued to the placement agent in such offering warrants exercisable for 439 shares of Series 2 Convertible Preferred Stock at an initial exercise price of $1,250 per share, which expire seven years after the date of issuance.
Warrant [Member]
Capital Structure (Details) [Line Items]
Warrants exercisable for shares of common stock		5,750,000	1,055,184
Warrant exercise price (in Dollars per share)		$ 1.25	$ 1.25
Description of warrants expiration		The warrants were immediately exercisable and expire five years from the date of issuance.	The warrants are exercisable at $1.25 per share of common stock and expire on September 28, 2023.
Issuance of warrants			40,000
Expenses (in Dollars)				$ 522,808
Weighted average grant date fair value (in Dollars per share)				$ 1.63
Warrant [Member] \| Consulting Agreement [Member]
Capital Structure (Details) [Line Items]
Warrant exercise price (in Dollars per share)			$ 1.25
Description of warrants expiration			The warrants are immediately exercisable and expire following the close of business on June 30, 2023.
Warrant, description			As part of a consulting agreement with XLR8 Capital Partners LLC (the “Consulting Agreement”), an entity of which the Company’s Chairman is manager, the Company agreed to issue 40,000 warrants to XLR8 Capital Partners LLC monthly for 12 months beginning on March 1, 2019 at an exercise price of $1.25 per share or, if the closing share price on the last day of the month exceeds $1.25, then such exercise price will be 110% of the closing share price.

Capital Structure (Details) - Schedule of weighted average grant date fair value	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	320,000
Expense Recorded \| $	$ 522,808
Grant date fair value Per Warrant \| $ / shares	$ 1.63
Warrant [Member] \| January 31, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 73,595
Grant date fair value Per Warrant \| $ / shares	$ 1.84
Warrant [Member] \| February 29, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 76,318
Grant date fair value Per Warrant \| $ / shares	$ 1.91
Warrant [Member] \| March 31, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 63,010
Grant date fair value Per Warrant \| $ / shares	$ 1.58
Warrant [Member] \| April 30, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 60,542
Grant date fair value Per Warrant \| $ / shares	$ 1.51
Warrant [Member] \| May 31, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 63,156
Grant date fair value Per Warrant \| $ / shares	$ 1.58
Warrant [Member] \| June 30, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 68,228
Grant date fair value Per Warrant \| $ / shares	$ 1.71
Warrant [Member] \| July 31, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 55,658
Grant date fair value Per Warrant \| $ / shares	$ 1.39
Warrant [Member] \| August 31, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average grant date fair value [Line Items]
Warrants Granted \| shares	40,000
Expense Recorded \| $	$ 62,301
Grant date fair value Per Warrant \| $ / shares	$ 1.56

Capital Structure (Details) - Schedule of outstanding stock warrants - Warrant [Member] - $ / shares

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Class of Warrant or Right [Line Items]

Common Stock Warrants Outstanding

2,255,184

Series 2 Preferred Stock Warrants Outstanding

439

Exercise Price 1.25 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.25

Common Stock Warrants Outstanding

1,055,184

Weighted Average Remaining Contractual Life

1 year

2 years

Exercise Price 1.25 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.25

Common Stock Warrants Outstanding

160,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.34 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.34

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.40 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.4

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.54 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.54

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.62 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.62

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.68 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.68

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 1.69 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.69

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.74 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.74

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.76 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.76

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.91 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.91

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 1.95 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1.95

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 2.00 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 2.01 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.01

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 2.08 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.08

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 2.45 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.45

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 2.53 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.53

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 2.83 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.57

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 2.70 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.7

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

3 years

4 years

Exercise Price 2.78 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.78

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 2.79 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.79

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 2.89 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.89

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 2.93 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.93

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

Exercise Price 2.97 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 2.97

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 3.09 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 3.09

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 3.17 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 3.17

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 3.19 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 3.19

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

3 years

4 years

Exercise Price 3.27 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 3.27

Common Stock Warrants Outstanding

40,000

Weighted Average Remaining Contractual Life

2 years

3 years

Exercise Price 1,250 [Member]

Class of Warrant or Right [Line Items]

Exercise Price

$ 1,250

Series 2 Preferred Stock Warrants Outstanding

^[1]

439

Weighted Average Remaining Contractual Life

Less than 1 year

1 year

[1]	At December 31, 2022 and 2021, these warrants were exercisable into Series 2 Preferred Stock which, in turn, were convertible into 116,903 shares of common stock

Equity Compensation Plans (Details) - USD ($)	12 Months Ended
Equity Compensation Plans (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Equity Compensation Plans (Details) [Line Items]
Compensation expense	$ 997,830	$ 1,125,819
Unrecognized compensation cost related to non-vested options	$ 860,070
Weighted average period	2 years 5 months 15 days
Weighted average grant fair value	$ 0.9	$ 1.75
2018 Plan [Member]
Equity Compensation Plans (Details) [Line Items]
Shares issued	494,000
Minimum [Member]
Equity Compensation Plans (Details) [Line Items]
Performance based shares	0
Maximum [Member]
Equity Compensation Plans (Details) [Line Items]
Performance based shares	790,327

Equity Compensation Plans (Details) - Schedule of stock-based compensation expense - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Stock-Based Compensation Expense [Abstract]
Stock options	$ 997,830	$ 1,125,819
Performance share units (“PSU”)
Total stock-based compensation	$ 997,830	$ 1,125,819

Equity Compensation Plans (Details) - Schedule of measured the fair value of each stock option award on the date of grant using the black-scholes-merton - Minimum [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Equity Compensation Plans (Details) - Schedule of measured the fair value of each stock option award on the date of grant using the black-scholes-merton [Line Items]
Exercise price (in Dollars per share)	$ 1.45	$ 2.52
Expected life	6 years	5 years
Expected volatility	71.00%	91.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate	2.25%	0.57%

Equity Compensation Plans (Details) - Schedule of stock option - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Stock Option [Abstract]
Number of options Outstanding beginning	3,080,904	2,595,700
Weighted average exercise price Outstanding beginning	$ 2.06	$ 1.92
Weighted average contractual term (years) Outstanding beginning
Aggregate intrinsic value Outstanding beginning	$ 1,923,642	$ 2,491,026
Number of options Granted	1,179,183	626,238
Weighted average exercise price Granted	$ 1.45	$ 2.52
Aggregate intrinsic value Granted		$ 74,482
Number of options Exercised	(308,526)	(82,333)
Weighted average exercise price Exercised	$ 0.85	$ 0.83
Aggregate intrinsic value Exercised	$ 480,029	$ 151,544
Number of options Forfeited	(7,333)	(58,701)
Weighted average exercise price Forfeited	$ 2.22	$ 2.65
Aggregate intrinsic value Forfeited	$ 2,273	$ 58,285
Number of options Expired	(25,000)
Weighted average exercise price Expired	$ 1.7
Aggregate intrinsic value Expired
Number of options Outstanding ending	3,919,228	3,080,904
Weighted average exercise price Outstanding ending	$ 1.97	$ 2.06
Weighted average contractual term (years) Outstanding ending	6 years 9 months 10 days	6 years 8 months 19 days
Aggregate intrinsic value Outstanding ending	$ 52,223	$ 1,923,642
Number of options Vested and exercisable	3,152,169	2,307,571
Weighted average exercise price Vested and exercisable	$ 2.02	$ 2.04
Weighted average contractual term (years) Vested and exercisable	6 years 6 months 7 days	6 years 10 months 13 days
Aggregate intrinsic value Vested and exercisable	$ 52,223	$ 1,674,967

Equity Compensation Plans (Details) - Schedule of activity in performance share units	12 Months Ended
	Dec. 31, 2022 shares
Schedule of Activity in Performance Share Units [Abstract]
Number of performance share units, Non- vested
Weighted average grant date fair value, Non- vested
Number of performance share units, Granted	790,327
Weighted average grant date fair value, Granted	1 year 6 months 10 days
Number of performance share units, Forfeited/ unearned
Weighted average grant date fair value, Forfeited/ unearned
Number of performance share units, Vested
Weighted average grant date fair value, Vested
Number of performance share units, Non- vested	790,327
Weighted average grant date fair value, Non- vested	1 year 6 months 10 days

Income Taxes (Details) - USD ($)	12 Months Ended
Income Taxes (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Taxes (Details) [Line Items]
Federal net operating loss carryforwards	$ 58,591,117
State net operating loss carryforwards	$ 8,153,233
Statutory rate	21.00%	21.00%
Deferred Tax Assets [Member]
Income Taxes (Details) [Line Items]
Deferred tax assets valuation allowance	$ 12,500,000

Income Taxes (Details) - Schedule of the benefit for income taxes from continuing operations - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of the Benefit for Income Taxes from Continuing Operations [Abstract]
Federal tax at statutory rate	$ (630,700)	$ 852,198
State tax, net of federal tax	(736,962)	(487,093)
Tax impact on gain on bargain purchase	(3,036,868)
Permanent differences	123,933	(259,967)
Change in statutory rate	7,862	59,168
Change in valuation allowance	(12,525,690)	614,112
Other	163,374	6,892
Benefit/ (expense) for income taxes	$ (16,635,051)	$ 785,310

Income Taxes (Details) - Schedule of deferred tax assets and deferred tax liabilities - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 03, 2022
Deferred tax assets (liabilities):
Equity based compensation	$ 428,111	$ 479,956
Allowance for doubtful accounts	3,240,968	6,847,189
Fixed assets	(9,153,508)	(8,085,957)
Lease impairment	989,120	423,022
Lease Liability	439,758	481,312	$ 4,773,370
Right of use asset	(348,478)	(383,924)
Accrued expenses	(16,962)
Change in fair value of loans receivable	2,264,813
Tax credit carryforward	32,394	32,394
Sec 163(j) carryforward	2,703,639
Federal loss carry-forwards	12,304,134	11,838,840
State loss carry forward	3,860,104	343,914
Intangible assets	(4,730,265)
Other		(53,414)
Gross deferred tax	12,013,828	11,923,332
Valuation allowance		(12,418,498)
Net deferred tax assets/ liability	$ 12,013,828	$ (495,166)

Income Taxes (Details) - Schedule of income tax expense (benefits) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current Income Tax:
Federal
State	754,505	290,144
Deferred Income Tax:
Federal	(13,439,360)	495,166
State	(3,950,196)
Total	$ (16,635,051)	$ 785,310

Contingencies and Other Uncertainties (Details)	12 Months Ended
Contingencies and Other Uncertainties (Details)	Dec. 31, 2022
Loss Contingency [Abstract]
Contracts period	3 years

Promissory Note- Paycheck Protection Program (Details) - USD ($)			12 Months Ended
	Jun. 21, 2021	May 04, 2020	Dec. 31, 2022	Dec. 31, 2021
Promissory Note- Paycheck Protection Program (Details) [Line Items]
Principal amount		$ 1,914,100
Maturity date, description			The Note matured on April 30, 2022 and bore interest at the rate of 1.00% per annum, payable monthly commencing on November 30, 2020, following an initial deferral period as specified under the PPP.
Promissory Notes [Member]
Promissory Note- Paycheck Protection Program (Details) [Line Items]
Promissory note issued	$ 1,914,000
Accrued interest				$ 1,931,825

Revolution Transaction (Details) - USD ($)	12 Months Ended
Revolution Transaction (Details) - USD ($)	Dec. 31, 2022	Dec. 03, 2022
Related Party Transactions [Abstract]
Revolution transaction description	In consideration for the sale of the Revolution net assets, the Company issued an adjustable promissory note (“Seller Note”) with an initial principal amount of $5,000,000. The Seller Note matures on December 1, 2027, bears interest at 8% per annum and is subject to adjustment based upon the pre-tax net income of the acquired business in 2023.
Consideration transferred	$ 3,421,991	$ 3,421,991
Promissory note related to acquisition	1,165,027
Bargain price	$ 14,461,274

Revolution Transaction (Details) - Schedule of summarizes the fair value of the identifiable net assets acquired - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 03, 2022	Dec. 31, 2021
Schedule Of Summarizes The Fair Value Of The Identifiable Net Assets Acquired Abstract
Cash		$ 2,938,355
Loan receivables at fair value		13,320,326
Property and equipment, net		136,249
Intangible assets		15,307,894
Total assets		31,702,824
Purchase consideration payable related to acquisition		8,539,582
Accounts payable		506,607
Deferred tax liability	$ 439,758	4,773,370	$ 481,312
Total liabilities		13,819,559
Net assets acquired	12,013,828	17,883,265
Promissory note related to acquisition		3,421,991
Purchase price consideration	$ 3,421,991	$ 3,421,991

Employee Benefit Plan (Details) - USD ($)	12 Months Ended
Employee Benefit Plan (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Nondiscretionary	4.00%
Total contributions	$ 145,161	$ 181,328

Subsequent Events (Details) - $ / shares	Apr. 21, 2023	Dec. 31, 2022	Dec. 31, 2021
Subsequent Events (Details) [Line Items]
Common stock, per share		$ 0.0001	$ 0.0001
Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Common stock, per share	$ 1
Minimum Bid Price Requirement [Member] \| Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Common stock, per share	$ 1
Nasdaq Notices [Member]
Subsequent Events (Details) [Line Items]
Common stock, per share		$ 1