View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 14, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	FlexShopper, Inc.
Entity Central Index Key	0001397047
Amendment Flag	false
Trading Symbol	FPAY
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,292,281

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash	$ 5,533,396	$ 5,412,495
Accounts receivable, net	2,391,701	2,181,787
Prepaid expenses	472,526	361,777
Lease merchandise, net	13,515,777	18,570,460
Total current assets	21,913,400	26,526,519
PROPERTY AND EQUIPMENT, net	2,755,778	2,540,514
OTHER ASSETS:
Intangible assets, net	18,802	20,340
Security deposits	74,179	68,251
Total other assets	92,981	88,591
Total assets	24,762,159	29,155,624
CURRENT LIABILITIES:
Current portion of loan payable under credit agreement, to beneficial shareholder net of $98,670 of unamortized issuance costs	2,401,330
Accounts payable	2,580,726	3,917,747
Accrued payroll and related taxes	271,021	296,333
Accrued expenses	339,674	259,104
Total current liabilities	5,592,751	4,473,184
Loan payable under credit agreement to beneficial shareholder, net of $296,010 in 2017 and $631,488 in 2016 of unamortized issuance costs	7,203,990	10,156,719
Total liabilities	12,796,741	14,629,903
STOCKHOLDERS' EQUITY
Series 1 Convertible Preferred stock, $0.001 par value- authorized 500,000 shares, issued and outstanding 243,065 shares in 2017 and 2016 at $5.00 stated value	1,215,325	1,215,325
Series 2 Convertible Preferred stock, $0.001 par value- authorized 25,000 shares, issued and outstanding 21,952 shares in 2017 and 2016 at $1,000 stated value	21,952,000	21,952,000
Common stock, $0.0001 par value- authorized 15,000,000 shares, issued and outstanding 5,292,281 shares in 2017 and 5,287,281 in 2016	529	529
Additional paid in capital	22,355,650	22,298,439
Accumulated deficit	(33,558,086)	(30,940,572)
Total stockholders' equity	11,965,418	14,525,721
Total liabilities and stockholder's equity	$ 24,762,159	$ 29,155,624

Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Loan payable unamortized issuance costs	$ 98,670
Unamortized issuance costs	$ 296,010	$ 631,488
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	5,292,281	5,287,281
Common stock, shares outstanding	5,292,281	5,287,281
Series 1 Convertible Preferred Stock
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	500,000	500,000
Convertible preferred stock, shares issued	243,065	243,065
Convertible preferred stock, shares outstanding	243,065	243,065
Convertible preferred stock, stated value	$ 5.00	$ 5.00
Series 2 Convertible Preferred Stock
Convertible preferred stock, par value	$ 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
Convertible preferred stock, stated value	$ 1,000	$ 1,000

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Lease revenues and fees	$ 16,363,033	$ 10,512,537	$ 33,313,925	$ 20,432,851
Lease merchandise sold	324,227	218,895	814,952	492,316
Total revenues	16,687,260	10,731,432	34,128,877	20,925,167
Costs and expenses:
Cost of lease revenues, consisting of depreciation and impairment of lease merchandise	8,126,839	5,601,362	16,587,622	11,291,315
Cost of lease merchandise sold	226,310	138,815	535,928	315,715
Provision for doubtful accounts	4,759,879	3,194,712	9,675,629	5,759,446
Marketing	818,609	2,269,777	1,630,791	3,744,175
Salaries and benefits	1,898,005	1,444,070	3,666,157	2,774,861
Operating expenses	1,869,317	1,119,576	3,542,969	2,199,897
Total costs and expenses	17,698,959	13,768,312	35,639,096	26,085,409
Operating loss	(1,011,699)	(3,036,880)	(1,510,219)	(5,160,242)
Interest expense including amortization of debt issuance costs	551,304	495,842	1,107,295	986,182
Net loss	(1,563,003)	(3,532,722)	(2,617,514)	(6,146,424)
Dividends on Series 2 Convertible Preferred Shares	560,236	114,364	1,109,036	114,364
Net loss attributable to common shareholders	$ (2,123,239)	$ (3,647,086)	$ (3,726,550)	$ (6,260,788)
Basic and diluted (loss) income per common share:
Net loss	$ (0.40)	$ (0.70)	$ (0.70)	$ (1.20)
WEIGHTED AVERAGE COMMON SHARES:
Basic and diluted	5,290,670	5,223,741	5,288,975	5,217,075

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Total	Series 1 Convertible Preferred Stock	Series 2 Convertible Preferred Stock	Common Stock	Additional Paid in Capital	Accumulated Deficit
Balance at Dec. 31, 2016	$ 14,525,721	$ 1,215,325	$ 21,952,000	$ 529	$ 22,298,439	$ (30,940,572)
Balance, shares at Dec. 31, 2016		243,065	21,952	5,287,281
Provision for compensation expense related to stock options	42,211				42,211
Exercise of stock options	15,000				15,000
Exercise of stock options, shares				5,000
Net loss	(2,617,514)					(2,617,514)
Balance at Jun. 30, 2017	$ 11,965,418	$ 1,215,325	$ 21,952,000	$ 529	$ 22,355,650	$ (33,558,086)
Balance, shares at Jun. 30, 2017		243,065	21,952	5,292,281

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,617,514)	$ (6,146,424)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation and impairment of lease merchandise	16,587,622	11,291,315
Other depreciation and amortization	1,002,644	697,235
Compensation expense related to issuance of stock options	42,211	78,381
Provision for doubtful accounts	9,675,629	5,759,446
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(9,885,543)	(6,088,922)
(Increase) in prepaid expenses and other	(110,749)	(320,114)
(Increase) in lease merchandise	(11,532,939)	(9,581,954)
(Increase) in security deposits	(5,928)	(143)
(Decrease) increase in accounts payable	(1,337,021)	1,364,345
(Decrease) increase in accrued payroll and related taxes	(25,312)	28,710
Increase in accrued expenses	80,570	41,049
Net cash provided by (used in) operating activities	1,873,670	(2,877,076)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment, including capitalized software costs	(979,562)	(918,289)
Net cash (used in) investing activities	(979,562)	(918,289)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds of loans from shareholder		1,000,000
Repayment of loans from shareholder		(1,000,000)
Proceeds from loan payable under credit agreement		1,941,359
Repayment of loan payable under credit agreement	(788,207)	(4,172,714)
Proceeds from exercise of stock options	15,000	42,500
Proceeds from sale of Series 2 Convertible Preferred Stock, net of related costs of $1,548,249		20,403,751
Net cash (used in) provided by financing operations	(773,207)	18,214,896
INCREASE IN CASH	120,901	14,419,531
CASH, beginning of period	5,412,495	3,396,206
CASH, end of period	5,533,396	17,815,737
Supplemental cash flow information:
Interest paid	416,407	780,303
Warrants issued to placement agent in conjunction with sale of Series 2 Preferred Stock		$ 150,451

Consolidated Statements of Cash Flows (Unaudited) (Parentheticals)	6 Months Ended
	Jun. 30, 2017 USD ($)
Statement of Cash Flows [Abstract]
Payments from sale of series 2 convertible preferred stock	$ 1,548,249

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2017
Basis of Presentation [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION Our interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information. Accordingly, the information presented in our interim financial statements does not include all information and disclosures necessary for a fair presentation of our financial position, results of operations and cash flows in conformity with GAAP for annual financial statements. In the opinion of management, these financial statements reflect all adjustments consisting of normal recurring accruals, necessary for a fair statement of our financial position, results of operations and cash flows for such periods. The results of operations for any interim period are not necessarily indicative of the results for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The Company has experienced significant historical operating losses and negative operating cash flows to date. For the six months ended June 30, 2017, the Company incurred a net loss of approximately $2.6 million. For the year ended December 31, 2016, the Company incurred a net loss of approximately $12.3 million and used approximately $17.4 million in cash flows for operations. Despite such events, management believes that the Company will be able to meet its obligations as they become due through August 14, 2018 based on (1) positive working capital of approximately $16.3 million at June 30, 2017, (2) the ability, to the extent required, to limit or eliminate discretionary spending related to marketing and advertising, (3) borrowing availability under its existing credit agreement to finance the purchase of new leased merchandise through April 1, 2018 (see Note 7), (4) amending or extending the current agreement, and (5) refinance the existing credit agreement with a new credit facility prior to April 1, 2018, the date whereby periodic payments are due to the lender in the current credit facility. There can be no assurance that the Company will be successful in renegotiating or replacing its existing credit agreement on terms acceptable to the Company. If the Company is unable to complete these plans it could have a material adverse effect on the Company. The consolidated balance sheet as of December 31, 2016 contained herein has been derived from audited financial statements.

Business	6 Months Ended
Business	Jun. 30, 2017
Business [Abstract]
BUSINESS	2. BUSINESS FlexShopper, Inc. (the “Company”) is a corporation organized under the laws of the State of Delaware on August 16, 2006. The Company owns 100% of FlexShopper, LLC, a limited liability company incorporated under the laws of North Carolina on June 24, 2013. The Company is a holding corporation with no operations except for those conducted by FlexShopper, LLC. FlexShopper, LLC provides through e-commerce sites, certain types of durable goods to consumers on a lease-to-own basis (“LTO”), including consumers of third party retailers and e-tailers. In January 2015, in connection with the credit agreement entered into 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, LLC together with its subsidiaries is hereafter referred to as “FlexShopper.”

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. 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 period. Actual results could differ from those estimates.

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 for ownership either through a 90 day same as cash option, an early purchase option, or through payments 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. Accordingly, customer agreements are accounted for as operating leases with lease revenues recognized in the month they are due on the accrual basis of accounting. Merchandise sales revenue is recognized when the customer exercises the purchase option and pays the purchase price. Revenue from processing fees earned upon exercise by the customer of the 90 day purchase option is recorded upon recognition of the related merchandise sales. Commencing in the quarter ended June 30, 2016, the Company discontinued charging a separate fee upon exercise of such option. Revenue for lease payments received prior to their due date is deferred and recognized as revenue in the period to which the payments relate. Revenues from leases and sales are reported net of sales taxes.

Accounts Receivable and Allowance for Doubtful Accounts – FlexShopper seeks to collect amounts owed under its leases from each customer on a weekly basis by charging their bank accounts or credit cards. Accounts receivable are principally comprised of lease payments currently owed to FlexShopper which are past due, as FlexShopper has been unable to successfully collect in the manner described above. Through June 30, 2016, an allowance for doubtful accounts was estimated by reserving all accounts in excess of four payments in arrears, adjusted for subsequent collections. Commencing in the quarter ended September 30, 2016, the estimate was revised to provide for doubtful accounts based upon revenues and historical experience of balances charged off as a percentage of revenues. The accounts receivable balances consisted of the following as of June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016

Accounts receivable	$	7,954,507	$	11,690,495
Allowance for doubtful accounts		5,562,806		9,508,708
Accounts receivable, net	$	2,391,701	$	2,181,787

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. In addition, while collections are pursued, the same delinquent customers will continue to accrue weekly charges until they are charged off, with such charges being fully reserved for. Accounts receivable balances charged off against the allowance were $7,162,533 and $13,580,054 for the three and six months ended June 30, 2017, respectively, and $1,580,673 and $1,743,217 for the three and six months ended June 30, 2016, respectively.

Lease Merchandise – 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 related cost and accumulated depreciation are eliminated from lease merchandise. For lease merchandise returned or anticipated to be 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 cost of lease revenue. The cost, accumulated depreciation and impairment reserve related to such merchandise are written off upon determination that no salvage value is obtainable. The impairment charge amounted to approximately $1,782,000 and $3,284,000 for the three and six months ended June 30, 2017, respectively, and $571,000 and $1,011,000 for the three and six months ended June 30, 2016, respectively. The net leased merchandise balances consisted of the following as of June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016
Lease merchandise at cost	$	28,360,438	$	33,264,810
Accumulated depreciation		(12,825,641)		(11,578,267)
Impairment reserve		(2,019,020)		(3,116,083)
Lease merchandise, net	$	13,515,777	$	18,570,460

Cost of lease merchandise sold represents the undepreciated cost of rental merchandise at the time of sale.

Deferred Debt Issuance Costs - Debt issuance costs incurred in conjunction with the Credit Agreement entered into on March 6, 2016 (see Note 7) are offset against the outstanding balance of the loan payable and are amortized using the straight line method over the remaining term of the credit facility. Amortization, which is included in interest expense, was computed using the straight line method over the term of the related debt, which approximates the effective interest method, was $118,404 and $236,808 for the three and six months ended June 30, 2017, respectively, and $116,953 and $214,495 for the three and six months ended June 30, 2016, respectively.

Intangible Assets - Intangible assets consist of a pending patent on the Company’s LTO payment method at check-out for third party e-commerce sites. Patents are 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 10 years.

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 $498,049 and $937,967 for the three and six months ended June 30, 2017, respectively, and $467,092 and $847,449 for the three and six months ended June 30, 2016, respectively.

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

Marketing costs, which primarily consist of advertising, are charged to expense as incurred.

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 Company’s 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 income from continuing operations and from net income. Loss attributable to common shareholders is computed by increasing loss from continuing operations and net loss by such dividends. Where the Company has undistributed net income available to common shareholders, basic earnings per common share is computed based on the total of any dividends paid or declared per common share plus undistributed income per common share, determined by dividing net income 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 plus the weighted average number of common shares issuable upon conversion of outstanding participating Series 1 Convertible Preferred Stock during the period. Where the Company has a net loss, basic per share data (including income from continuing operations) is computed based solely on the weighted average number of common shares outstanding during the period. As the convertible participating preferred stock has no contractual obligation to share in the losses of the Company, common shares issuable upon conversion of such preferred stock are not included in such computations.

Diluted earnings per share is based on the more dilutive of the if-converted method (which assumes conversion of the participating preferred stock as of the beginning of the period) or the two-class method (which assumes that the participating preferred stock is not converted) plus the potential impact of dilutive non-participating Series 2 Convertible Preferred Stock, options and warrants. The dilutive effect of stock options and warrants is 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 and warrants will have a dilutive effect when the average price of common stock during the period exceeds the exercise price of options 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.

In computing diluted loss per share, no effect has been given to the issuance of common stock upon conversion or exercise of the following securities as their effect is anti-dilutive:

	Six Months ended
	June 30,
	2017		2016
Series 1 Convertible Preferred Stock		147,417		199,048
Series 2 Convertible Preferred Stock		2,710,124		2,710,124
Series 2 Convertible Preferred Stock issuable upon exercise of warrants		54,217		54,217
Common Stock Options		297,900		411,800
Common Stock Warrants		511,553		511,553
		3,721,211		3,886,742

Amounts of common stock set forth in the above table have been adjusted for the Reverse Split (see Note 4).

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

Compensation expense is determined by reference to the fair value of an award on the date of grant and is amortized on a straight-line basis over the vesting period. We have elected to use the Black-Scholes-Merton (BSM) pricing model to determine the fair value of all stock option awards (see Note 9).

Fair Value of Financial Instruments – The carrying value of certain financial instruments such as accounts receivable, accounts payable and accrued expenses approximates their fair value due to the short-term nature of their underlying terms. The carrying value of loans payable under the Credit Agreement increased by unamortized issuance costs (see Note 7) approximates fair value based upon its interest rate which approximates current market interest rates.

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 June 30, 2017 and December 31, 2016, the Company has not recorded any unrecognized tax benefits.

Interest and penalties related to liabilities for uncertain tax positions, if any will be charged to interest and operating expenses, respectively.

Recent Accounting Pronouncements –

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of the standard. The Company is currently evaluating the impact of the new guidance including method of adoption and related financial statement disclosures, but preliminarily does not anticipate a material impact on its financial statements as a majority of the Company’s revenue generating activities are leasing arrangements which are outside the scope of the guidance.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 with early adoption permitted. Under ASU 2016-02, lessees will be required to recognize for all leases at the commencement date 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. Lessor guidance is largely unchanged. The Company is currently evaluating the effect that the new guidance will have on its financial statements.

Reverse Stock Split	6 Months Ended
Reverse Stock Split	Jun. 30, 2017
Reverse Stock Split [Abstract]
REVERSE STOCK SPLIT	4. REVERSE STOCK SPLIT On October 14, 2016, the Company filed with the Secretary of State of the State of Delaware a certificate of amendment (the “Certificate of Amendment”) to its certificate of incorporation, which Certificate of Amendment effectuated as of October 24, 2016 at 11:59 p.m. Eastern Time (the “Effective Time”) a reverse split of the Company’s common stock by a ratio of one-for-10 (the “Reverse Split”). At the Effective Time, 52,870,398 outstanding shares of the Company’s common stock converted into 5,287,040 shares of the Company’s common stock. All per share amounts and number of shares in the consolidated financial statements and related notes have been retroactively restated to reflect the Reverse Split. The Reverse Split did not change the number of shares of common or preferred stock that the Company is authorized to issue, or the par value of the Company’s common or preferred stock. The Reverse Split resulted in a proportionate adjustment to the per share conversion or exercise price and the number of shares of common stock issuable upon the conversion or exercise of outstanding preferred stock, stock options and warrants, as well as the number of shares of common stock eligible for issuance under the Company’s 2007 Omnibus Equity Compensation Plan and 2015 Omnibus Equity Compensation Plan.

Property and Equipment

6 Months Ended

Jun. 30, 2017

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

	Estimated Useful Lives	June 30, 2017			December 31, 2016
Furniture and fixtures	2-5 years	$	103,702		$	98,564
Website and internal use software	3 years		4,871,566			3,933,600
Computers and software	3-7 years		655,935			619,477
			5,631,203			4,651,641
Less: accumulated depreciation and amortization			(2,875,425	)		(2,111,127	)
		$	2,755,778		$	2,540,514

Depreciation and amortization expense was $393,830 and $258,971 for the three months ended June 30, 2017 and 2016, respectively, and $764,298 and $481,202 for the six months ended June 30, 2017 and 2016, respectively.

Loans Payable to Shareholder	6 Months Ended
Loans Payable to Shareholder	Jun. 30, 2017
Loans Payable to Shareholder and Loan Payable Under Credit Agreement [Abstract]
LOANS PAYABLE TO SHAREHOLDER	6. LOANS PAYABLE TO SHAREHOLDER On December 8, 2014, upon approval of the Company’s Board of Directors, the Company entered into a Promissory Note for $1,000,000 with a shareholder and executive of the Company (the “Promissory Note”). The Promissory Note was payable on demand and earned interest at 15% per annum. The Promissory Note was to assist FlexShopper in purchasing merchandise for lease and was paid in full with interest amounting to $36,250 on March 11, 2015. On February 11, 2016, the Company entered into a secured Promissory Note with a principal stockholder for $1,000,000 at an interest rate of 15% per annum, payable upon demand, secured by substantially all of the Company’s assets. The Promissory Note was paid in full with interest amounting to $51,250 on June 13, 2016.

Loan Payable Under Credit Agreement

6 Months Ended

Jun. 30, 2017

Loans Payable to Shareholder and Loan Payable Under Credit Agreement [Abstract]

LOAN PAYABLE UNDER CREDIT AGREEMENT

7. LOAN PAYABLE UNDER CREDIT AGREEMENT

On March 6, 2015, FlexShopper entered into a credit agreement (as amended from time to time, and including the Fee Letter (as defined therein), 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 as administrative agent and lender (the “Lender”). FlexShopper 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, FlexShopper may borrow up to $25,000,000 from the Lender for a term of two years from the date of the Credit Agreement (which term has since been extended, as described below). The borrowing term may be extended in the sole discretion of the Lender. The Credit Agreement contemplates that the Lender may provide additional debt financing to FlexShopper, up to $100 million in total, under two uncommitted accordions following satisfaction of certain covenants and other terms and conditions. The Lender receives security interests in certain leases as collateral under the Credit Agreement. Prior to the January 2017 amendment described below, amounts borrowed bore interest at the rate of LIBOR plus 15% per annum and a small non-usage fee was assessed on any undrawn amount if the facility is less than 80% drawn on average in any given measurement period. Interest is payable monthly on the outstanding balance of amounts borrowed and, prior to the amendment referred to below, commencing on and after May 6, 2017, principal together with interest thereon was payable periodically through May 6, 2018, the maturity date of the loan, as such date may have been extended in accordance with the Credit Agreement.

In January 2017, the Credit Agreement was amended to reduce the interest being charged on amounts borrowed to be LIBOR plus 14% per annum and reduce the non-usage fee on undrawn amounts if the facility is less than 75% drawn on average. Additionally, the Commitment Termination Date was extended from May 6, 2017 to April 1, 2018. Accordingly, commencing on or after April 1, 2018, principal together with the interest thereon is payable periodically through April 1, 2019, the amended maturity date of the loan, as such date may be extended in accordance with the Credit Agreement.

Principal payable within twelve months of the balance sheet date based on the outstanding loan balance at such date is reflected as a current liability in the accompanying balance sheets. Interest expense incurred under the Credit Agreement amounted to $432,899 and $870,486 for the three and six months ended June 30, 2017, respectively, and $348,055 and $720,436 for the three and six months ended June 30, 2016, respectively. As of June 30, 2017, the outstanding balance under the Credit Agreement was $10,000,000. The Company repaid $788,207 to the Lender in the second quarter of 2017 and $4,172,174 in 2016, resulting primarily from the repayment of the Bridge Loan Amount upon the Equity Raise as described in the fourth amendment to the Credit Agreement.

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 dividends on common stock. 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.

Prior to the amendment described below, the Credit Agreement contained financial covenants requiring the Company and its subsidiaries to maintain as of the last day of each fiscal quarter during the term of the agreement minimum amounts of Unrestricted Cash and Equity Book Value and to achieve Adjusted Operating Cash Flow of not less than certain amounts during such quarters (all such terms as defined in the Credit Agreement). As of December 31, 2015, the Company was in violation of the covenant requiring an Equity Book Value of at least $7.0 million as of such date. Under the fourth amendment to the Credit Agreement, the Lender waived this violation. The covenant also required the Company and its subsidiaries to maintain an Equity Book Value of at least $7 million at each of June 30, March 31 and December 31, 2016, increasing to $10 million at the end of each quarter from March 31 through December 31, 2017. On January 27, 2017, the Equity Book Value covenant was amended as discussed below.

On January 27, 2017, FlexShopper entered into a fifth amendment to the Credit Agreement (the “Omnibus Amendment”). The Omnibus Amendment amended the Credit Agreement to, among other things, (1) extend the Commitment Termination Date (as defined in the Credit Agreement) from May 6, 2017 to April 1, 2018 (with a one-time right of extension by the lenders up to August 31, 2018), (2) require the Borrower to refinance the debt under the Credit Agreement upon a Permitted Change of Control (as defined in the Credit Agreement), subject to the payment of an early termination fee, (3) reduce the interest rate charged on amounts borrowed to be LIBOR plus 14% per annum and reduce the non-usage fee on undrawn amounts if the facility is less than 75% drawn on average, and (4) modify certain permitted debt and financial covenants. These modified covenants consist of a reduction of Equity Book Value to not be less than the sum of $6 million and 20% of any additional equity capital invested into the Company after December 31, 2016; maintaining at least $1.5 million in Unrestricted Cash; and to have the ratio of Consolidated Total Debt to Equity Book Value not exceeding 4.75:1. The Company was in compliance with its covenants as of June 30, 2017.

Capital Structure	6 Months Ended
Capital Structure	Jun. 30, 2017
Capital Structure [Abstract]
CAPITAL STRUCTURE	8. CAPITAL STRUCTURE The Company’s capital structure consists of preferred and common stock as described below: The Company was authorized to issue 10,000,000 shares of $.001 par value preferred stock. On May 10, 2017, the Company’s stockholders approved an amendment to its Certificate of Incorporation to reduce the number of authorized shares of preferred stock to 500,000 shares. The Company’s Board of Directors determines the rights and preferences of the Company’s preferred stock. Series 1 Convertible Preferred Stock – On January 31, 2007, the Company filed a Certificate of Designations with the Secretary of State of Delaware. Effective with this filing, 2,000,000 preferred shares became Series 1 Convertible Preferred Stock. Series 1 Convertible Preferred Stock ranks senior to common stock. As of June 30, 2017, each share of Series 1 Convertible Preferred Stock was convertible into 0.60649 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. During the year ended December 31, 2016, 85,132 shares of Series 1 Convertible Preferred Stock were converted into 51,983 shares of common stock. As of June 30, 2017, there were 243,065 shares of Series 1 Convertible Preferred Stock outstanding, which are convertible into 147,417 shares of common stock. Series 2 Convertible Preferred Stock – On June 10, 2016, the Company entered into a Subscription Agreement with B2 FIE V LLC (the “Investor”), an entity affiliated with Pacific Investment Management Company LLC, providing for the issuance and sale of 20,000 shares of Series 2 Convertible Preferred Stock for gross proceeds of $20.0 million. The Company sold an additional 1,952 shares of Series 2 Convertible Preferred Stock to a different investor for gross proceeds of $1.95 million at a subsequent closing. Pursuant to the authority expressly granted to the Board of Directors by the provisions of the Company’s Certificate of Incorporation, the Board of Directors of the Company created and designated 25,000 shares of Series 2 Convertible Preferred Stock, par value $.001 per share (“Series 2 Preferred Shares”), by filing a Certificate of Designations with the Delaware Secretary of State (the “Series 2 Certificate of Designations”). 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 dividends in arrears totaled $2,321,001 at June 30, 2017. Each Series 2 Preferred Share is convertible at a conversion price of $8.10 into approximately 124 shares of common stock; provided, the conversion price is subject to reduction pursuant to a weighted average anti-dilution provision contained in the Series 2 Certificate of Designations. The holders of the Series 2 Preferred Shares 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, during the two year period commencing on the date of issuance, the average closing price during any 45 consecutive trading day period equals or exceeds $17.50 per common share, or a change of control transaction (as defined in the Series 2 Certificate of Designations) values the Company’s common stock at $17.50 per share or greater; or after this two year period 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 in the Series 2 Certificate of Designations), holders of Series 2 Preferred Shares 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 Series 2 Preferred Shares been converted to common stock immediately before the Liquidation Event or Deemed Liquidation Event. Common Stock – The Company was authorized to issue 100,000,000 shares of $.0001 par value common stock. On May 10, 2017, at the Company’s annual meeting of stockholders, the Company’s stockholders approved an amendment to the Certificate of Incorporation to reduce the Company’s authorized shares of common stock to 15,000,000. Each share of common stock entitles the holder to one vote at all stockholder meetings. In connection with entering into the Credit Agreement on March 6, 2016, the Company raised approximately $8.6 million in net proceeds through direct sales of 1.7 million shares of its common stock to certain affiliates of the Lender and other accredited investors for a purchase price of $5.50 per share. As a result of the sale to certain affiliates, the Lender is considered a beneficial shareholder of the Company. On March 17, 2016, the Company’s stockholders, acting by written consent, approved an amendment to the Certificate of Incorporation to effect a reverse stock split of the Company’s common stock. On October 14, 2016, the Company filed with the Secretary of State of the State of Delaware a certificate of amendment (the “Certificate of Amendment”) to its certificate of incorporation, which Certificate of Amendment effectuated as of October 24, 2016 at 11:59 p.m. Eastern Time the Reverse Split by a ratio of one-for-10 (see Note 4). All share and per share data in these financial statements and footnotes have been retrospectively adjusted to account for the Reverse Split.

Stock Options

6 Months Ended

Jun. 30, 2017

Stock Options [Abstract]

STOCK OPTIONS

9. STOCK OPTIONS

On January 31, 2007, the Board of Directors adopted our 2007 Omnibus Equity Compensation Plan (the “2007 Plan”), with 210,000 common shares authorized for issuance under the 2007 Plan. In October 2009, the Company’s stockholders approved an increase in the number of shares covered by the 2007 Plan to 420,000 shares. On March 26, 2015, the Board adopted our 2015 Omnibus Equity Compensation Plan (the “2015 Plan”), with 400,000 common shares authorized for issuance under the 2015 Plan, which was ratified by the Company’s stockholders on March 15, 2015. The 2007 Plan and 2015 Plan are collectively referred to as the “Plans.” Grants under the Plans may consist of incentive stock options, non-qualified stock options, stock appreciation rights, stock awards, stock unit awards, dividend equivalents and other stock based awards. Employees, directors and consultants and other service providers are eligible to participate in the Plans. Options granted under the Plans vest over periods ranging from immediately upon grant to a three year period and expire ten years from date of grant.

Activity in stock options for the six months ended June 30, 2017 follows:

	Number of shares			Weighted average exercise price		Weighted average contractual term (years)		Aggregate intrinsic value
Outstanding at January 1, 2017		411,600		$	8.63
Granted		68,000			4.31
Forfeited		(16,700	)		6.01
Expired		(160,000	)		12.50
Exercised		(5,000	)		3.00
Outstanding at June 30, 2017		297,900		$	5.80		7.36	$	86,500
Vested and exercisable at June 30, 2017		200,734		$	6.33		6.39	$	67,500
Vested and exercisable at June 30, 2017 and expected to vest thereafter		293,000		$	6.33		7.36	$	86,500

The weighted average grant date fair value of options granted during the six month period ending June 30, 2017 was $1.70 per share. The Company measured the fair value of each option award on the date of grant using the Black-Scholes-Merton (BSM) pricing model with the following assumptions:

	2017
Exercise price		$4.02 to $5.25
Expected life		6 years
Expected volatility		38%
Dividend yield		0%
Risk-free interest rate		1.98% to 2.06%

The expected dividend yield is based on the Company’s historical dividend yield. The expected volatility was based on the average of historical volatilities for a period comparable to the expected life of the options of certain entities considered to be similar to the Company. The expected life is based on the simplified expected term calculation permitted by the Securities and Exchange Commission (the “SEC”), 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.

The value of stock options is recognized as compensation expense by the straight line method over the vesting period. Compensation expense recorded for options in the statements of operations was $19,321 and $42,211, for the three and six months ended June 30, 2017, respectively and $57,943 and $78,381 for the three and six months ended June 30, 2016, respectively. Unrecognized compensation cost related to non-vested options at June 30, 2017 amounted to approximately $140,800, which is expected to be recognized over a weighted average period of 2.2 years.

Warrants

6 Months Ended

Jun. 30, 2017

Warrants [Abstract]

WARRANTS

10. WARRANTS

On June 24, 2016, the Company granted warrants to one of the Company’s placement agents to purchase 439 shares of the Company’s Series 2 Convertible Preferred Stock at an initial exercise price of $1,250 per share. The exercise price and aggregate number of shares are subject to adjustment as set forth in the agreement.

The following information was input into the Black Scholes pricing model to compute a total fair value of $150,451.

Exercise price	$	1,250
Expected life		7 years
Expected volatility		38	%
Dividend yield		0	%
Risk-free interest rate		1.35	%

The following table summarizes information about outstanding stock warrants as of June 30, 2017, all of which are exercisable:

				Series 2 Preferred		Weighted Average
Exercise		Common Stock Warrants		Stock Warrants		Remaining
Price		Outstanding		Outstanding		Contractual Life

$	11.00		134,250			2 years
$	10.00		200,000			4 years
$	5.50		177,303			5 years
$	1,250		-		439	7 years
			511,553		439

Income Taxes

6 Months Ended

Jun. 30, 2017

Income Taxes [Abstract]

INCOME TAXES

11. INCOME TAXES

As of December 31, 2016, the Company has federal net operating loss carryforwards of approximately $15,075,000 and state net operating loss carryforwards of approximately $10,109,000 available to offset future taxable income, which expire from 2023 to 2036.

The Company expects its effective tax rate for the year ending December 31, 2017 to be zero due to its history of net operating losses and recording a full valuation allowance on deferred tax assets. As a result the Company estimated its effective tax rate for the three and six months ended June 30, 2017 to be zero.

The Company’s use of net operating loss carryforwards may be subject to limitations imposed by the Internal Revenue Code. Management believes that the deferred tax asset as of June 30, 2017 does not satisfy the realization criteria and has recorded a valuation allowance to offset the tax asset.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

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

Revenue Recognition

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 for ownership either through a 90 day same as cash option, an early purchase option, or through payments 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. Accordingly, customer agreements are accounted for as operating leases with lease revenues recognized in the month they are due on the accrual basis of accounting. Merchandise sales revenue is recognized when the customer exercises the purchase option and pays the purchase price. Revenue from processing fees earned upon exercise by the customer of the 90 day purchase option is recorded upon recognition of the related merchandise sales. Commencing in the quarter ended June 30, 2016, the Company discontinued charging a separate fee upon exercise of such option. Revenue for lease payments received prior to their due date is deferred and recognized as revenue in the period to which the payments relate. Revenues from leases and sales are reported net of sales taxes.

Accounts Receivable and Allowance for Doubtful Accounts

	June 30, 2017		December 31, 2016

Accounts receivable	$	7,954,507	$	11,690,495
Allowance for doubtful accounts		5,562,806		9,508,708
Accounts receivable, net	$	2,391,701	$	2,181,787

Lease Merchandise

	June 30, 2017		December 31, 2016
Lease merchandise at cost	$	28,360,438	$	33,264,810
Accumulated depreciation		(12,825,641)		(11,578,267)
Impairment reserve		(2,019,020)		(3,116,083)
Lease merchandise, net	$	13,515,777	$	18,570,460

Cost of lease merchandise sold represents the undepreciated cost of rental merchandise at the time of sale.

Deferred Debt Issuance Costs

Deferred Debt Issuance Costs – Debt issuance costs incurred in conjunction with the Credit Agreement entered into on March 6, 2016 (see Note 7) are offset against the outstanding balance of the loan payable and are amortized using the straight line method over the remaining term of the credit facility. Amortization, which is included in interest expense, was computed using the straight line method over the term of the related debt, which approximates the effective interest method, was $118,404 and $236,808 for the three and six months ended June 30, 2017, respectively, and $116,953 and $214,495 for the three and six months ended June 30, 2016, respectively.

Intangible Assets

Intangible Assets – Intangible assets consist of a pending patent on the Company’s LTO payment method at check-out for third party e-commerce sites. Patents are 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 10 years.

Software Costs

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 $498,049 and $937,967 for the three and six months ended June 30, 2017, respectively, and $467,092 and $847,449 for the three and six months ended June 30, 2016, respectively.

Operating Expenses

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

Marketing costs, which primarily consist of advertising, are charged to expense as incurred.

Per Share Data

In computing diluted loss per share, no effect has been given to the issuance of common stock upon conversion or exercise of the following securities as their effect is anti-dilutive:

	Six Months ended
	June 30,
	2017		2016
Series 1 Convertible Preferred Stock		147,417		199,048
Series 2 Convertible Preferred Stock		2,710,124		2,710,124
Series 2 Convertible Preferred Stock issuable upon exercise of warrants		54,217		54,217
Common Stock Options		297,900		411,800
Common Stock Warrants		511,553		511,553
		3,721,211		3,886,742

Amounts of common stock set forth in the above table have been adjusted for the Reverse Split (see Note 4).

Stock-Based Compensation

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

Fair Value of Financial Instruments

Income Taxes

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.

Interest and penalties related to liabilities for uncertain tax positions, if any will be charged to interest and operating expenses, respectively.

Recent Accounting Pronouncements

Recent Accounting Pronouncements– In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of the standard. The Company is currently evaluating the impact of the new guidance including method of adoption and related financial statement disclosures, but preliminarily does not anticipate a material impact on its financial statements as a majority of the Company’s revenue generating activities are leasing arrangements which are outside the scope of the guidance.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Summary of Significant Accounting Policies [Abstract]

Schedule of accounts receivable

	June 30, 2017		December 31, 2016

Accounts receivable	$	7,954,507	$	11,690,495
Allowance for doubtful accounts		5,562,806		9,508,708
Accounts receivable, net	$	2,391,701	$	2,181,787

Schedule of lease merchandise

	June 30, 2017		December 31, 2016
Lease merchandise at cost	$	28,360,438	$	33,264,810
Accumulated depreciation		(12,825,641)		(11,578,267)
Impairment reserve		(2,019,020)		(3,116,083)
Lease merchandise, net	$	13,515,777	$	18,570,460

Schedule of antidilutive securities excluded from computation of earnings per share

	Six Months ended
	June 30,
	2017		2016
Series 1 Convertible Preferred Stock		147,417		199,048
Series 2 Convertible Preferred Stock		2,710,124		2,710,124
Series 2 Convertible Preferred Stock issuable upon exercise of warrants		54,217		54,217
Common Stock Options		297,900		411,800
Common Stock Warrants		511,553		511,553
		3,721,211		3,886,742

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2017

Property and Equipment [Abstract]

Schedule of property and equipment

	Estimated Useful Lives	June 30, 2017			December 31, 2016
Furniture and fixtures	2-5 years	$	103,702		$	98,564
Website and internal use software	3 years		4,871,566			3,933,600
Computers and software	3-7 years		655,935			619,477
			5,631,203			4,651,641
Less: accumulated depreciation and amortization			(2,875,425	)		(2,111,127	)
		$	2,755,778		$	2,540,514

Stock Options (Tables)

6 Months Ended

Jun. 30, 2017

Stock Options [Abstract]

Schedule of information about stock options

	Number of shares			Weighted average exercise price		Weighted average contractual term (years)		Aggregate intrinsic value
Outstanding at January 1, 2017		411,600		$	8.63
Granted		68,000			4.31
Forfeited		(16,700	)		6.01
Expired		(160,000	)		12.50
Exercised		(5,000	)		3.00
Outstanding at June 30, 2017		297,900		$	5.80		7.36	$	86,500
Vested and exercisable at June 30, 2017		200,734		$	6.33		6.39	$	67,500
Vested and exercisable at June 30, 2017 and expected to vest thereafter		293,000		$	6.33		7.36	$	86,500

Schedule of option input into a Black Scholes option pricing model

	2017
Exercise price		$4.02 to $5.25
Expected life		6 years
Expected volatility		38%
Dividend yield		0%
Risk-free interest rate		1.98% to 2.06%

Warrants (Tables)

6 Months Ended

Jun. 30, 2017

Warrants [Abstract]

Schedule of warrants, valuation assumptions

Exercise price	$	1,250
Expected life		7 years
Expected volatility		38	%
Dividend yield		0	%
Risk-free interest rate		1.35	%

Summary of outstanding stock warrants

				Series 2 Preferred		Weighted Average
Exercise		Common Stock Warrants		Stock Warrants		Remaining
Price		Outstanding		Outstanding		Contractual Life

$	11.00		134,250			2 years
$	10.00		200,000			4 years
$	5.50		177,303			5 years
$	1,250		-		439	7 years
			511,553		439

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Basis of Presentation (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Basis of Presentation (Details) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Basis of Presentation [Abstract]
Net loss	$ (1,563,003)	$ (3,532,722)	$ (2,617,514)	$ (6,146,424)	$ 12,300,000
Cash flows for operations			$ 1,873,670	$ (2,877,076)
Agreement, description			(1) positive working capital of approximately $16.3 million at June 30, 2017, (2) the ability, to the extent required, to limit or eliminate discretionary spending related to marketing and advertising, (3) borrowing availability under its existing credit agreement to finance the purchase of new leased merchandise through April 1, 2018 (see Note 7), (4) amending or extending the current agreement, and (5) refinance the existing credit agreement with a new credit facility prior to April 1, 2018, the date whereby periodic payments are due to the lender in the current credit facility.

Business (Details)	6 Months Ended
Business (Details)	Jun. 30, 2017
Business (Textual)
Limited liability percentage of FlexShopper, LLC	100.00%

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Accounts receivable	$ 7,954,507	$ 11,690,495
Allowance for doubtful accounts	5,562,806	9,508,708
Accounts receivable, net	$ 2,391,701	$ 2,181,787

Summary of Significant Accounting Policies (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Lease merchandise at cost	$ 28,360,438	$ 33,264,810
Accumulated depreciation	(12,825,641)	(11,578,267)
Impairment reserve	(2,019,020)	(3,116,083)
Lease merchandise, net	$ 13,515,777	$ 18,570,460

Summary of Significant Accounting Policies (Details 2) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,721,211	3,886,742
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	147,417	199,048
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	2,710,124	2,710,124
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	54,217	54,217
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	297,900	411,800
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	511,553	511,553

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of Significant Accounting Policies (Textual)
Amortization method			Straight line method
Accounts receivable charged off against allowance	$ 7,162,533	$ 1,580,673	$ 13,580,054	$ 1,743,217
Impairment charge	1,782,000	571,000	3,284,000	1,011,000
Capitalized software costs	498,049	467,092	937,967	847,449
Amortization	$ 118,404	$ 116,953	$ 236,808	$ 214,495
Useful life of patent			10 years
Concentration risk, percentage			50.00%
Flexible options to obtain ownership, description			<div>Customers have the option to cancel the agreement in accordance with lease terms and return the merchandise. Accordingly, customer agreements are accounted for as operating leases with lease revenues recognized in the month they are due on the accrual basis of accounting. Merchandise sales revenue is recognized when the customer exercises the purchase option and pays the purchase price.</div>
Revenue recognition, description			<div>Through a 90 day same as cash option, an early purchase option, or through payments of all required lease payments, generally 52 weeks.</div>

Reverse Stock Split (Details) - shares	1 Months Ended
Reverse Stock Split (Details) - shares	Oct. 24, 2016	Jun. 30, 2017	Dec. 31, 2016
Reverse Stock Split (Textual)
Reverse stock split, description	One-for-10
Common stock, shares outstanding	52,870,040	5,292,281	5,287,281
Outstanding shares	52,870,398

Property and Equipment (Details) - USD ($)	6 Months Ended
Property and Equipment (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,631,203	$ 4,651,641
Less: accumulated depreciation and amortization	(2,875,425)	(2,111,127)
Property and equipment, net	2,755,778	2,540,514
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 103,702	98,564
Furniture and fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	5 years
Furniture and fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	2 years
Website and internal use software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,871,566	3,933,600
Estimated Useful Lives	3 years
Computers and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 655,935	$ 619,477
Computers and software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	7 years
Computers and software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years

Property and Equipment (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property and Equipment (Textual)
Depreciation and amortization expense	$ 393,830	$ 258,971	$ 764,298	$ 481,202

Loans Payable to Shareholder (Details) - USD ($)			6 Months Ended
Loans Payable to Shareholder (Details) - USD ($)	Jun. 13, 2016	Mar. 11, 2015	Jun. 30, 2017	Jun. 30, 2016	Feb. 11, 2016	Dec. 08, 2014
Loans Payable Shareholder (Textual)
Interest paid			$ 416,407	$ 780,303
Promissory Note [Member]
Loans Payable Shareholder (Textual)
Promissory note, face amount					$ 1,000,000	$ 1,000,000
Interest rate of promissory note					15.00%	15.00%
Interest paid	$ 51,250	$ 36,250

Loan Payable Under Credit Agreement (Details) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
Loan Payable Under Credit Agreement (Details) - USD ($)	Mar. 06, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2015
Loan Payable Under Credit Agreement (Textual)
Interest expense		$ 551,304	$ 495,842	$ 1,107,295	$ 986,182
Repayment of loans payable				$ 788,207	4,172,714
Commitment termination, description				In January 2017, the Credit Agreement was amended to reduce the interest being charged on amounts borrowed to be LIBOR plus 14% per annum and reduce the non-usage fee on undrawn amounts if the facility is less than 75% drawn on average. Additionally, the Commitment Termination Date was extended from May 6, 2017 to April 1, 2018. Accordingly, commencing on or after April 1, 2018, principal together with the interest thereon is payable periodically through April 1, 2019, the amended maturity date of the loan, as such date may be extended in accordance with the Credit Agreement.
Credit Agreement [Member]
Loan Payable Under Credit Agreement (Textual)
Borrowed from lender	$ 25,000,000
Term of debt	2 years
Additional debt financing to FlexShopper	$ 100,000,000
Percentage of average undrawn amount	Less than 80
Percentage of interest rate	15.00%
Maturity date of loan				May 06, 2018
Interest expense		432,899	348,055	$ 870,486	$ 720,436
Funded amount		10,000,000		$ 10,000,000
Description of violation or event of debt default						Company was in violation of the covenant requiring an Equity Book Value of at least $7.0 million as of such date. Under the fourth amendment to the Credit Agreement, the Lender waived this violation. The covenant also required the Company and its subsidiaries to maintain an Equity Book Value of at least $7 million at each of June 30, March 31 and December 31, 2016, increasing to $10 million at the end of each quarter from March 31 through December 31, 2017.
Fifth amendment to credit agreement, description				On January 27, 2017, FlexShopper entered into a fifth amendment to the Credit Agreement (the "Omnibus Amendment"). The Omnibus Amendment amended the Credit Agreement to, among other things, (1) extend the Commitment Termination Date (as defined in the Credit Agreement) from May 6, 2017 to April 1, 2018 (with a one-time right of extension by the lenders up to August 31, 2018), (2) require the Borrower to refinance the debt under the Credit Agreement upon a Permitted Change of Control (as defined in the Credit Agreement), subject to the payment of an early termination fee, (3) reduce the interest rate charged on amounts borrowed to be LIBOR plus 14% per annum and reduce the non-usage fee on undrawn amounts if the facility is less than 75% drawn on average, and (4) modify certain permitted debt and financial covenants. These modified covenants consist of a reduction of Equity Book Value to not be less than the sum of $6 million and 20% of any additional equity capital invested into the Company after December 31, 2016; maintaining at least $1.5 million in Unrestricted Cash; and to have the ratio of Consolidated Total Debt to Equity Book Value not exceeding 4.75:1. The Company was in compliance with its covenants as of June 30, 2017.
Repayment of loans payable		$ 788,207	$ 4,172,174

Capital Structure (Details) - USD ($)			1 Months Ended	6 Months Ended	12 Months Ended
Capital Structure (Details) - USD ($)	Jun. 10, 2016	Mar. 06, 2016	Oct. 24, 2016	Jun. 30, 2017	Dec. 31, 2016	May 10, 2017
Capital Structure (Textual)
Preferred stock conversion into common stock, shares			52,870,398
Common stock, shares authorized (in shares)				15,000,000	15,000,000
Common stock, par value				$ 0.0001	$ 0.0001
Common stock voting rights, description				Each share of Common Stock entitles the holder to one vote at all stockholder meetings.
Reverse stock split, description			One-for-10
Director [Member]
Capital Structure (Textual)
Preferred stock, par value (in dollars per share)				$ 0.001
Preferred stock, shares authorized (in shares)				10,000,000		500,000
Common Stock [Member]
Capital Structure (Textual)
Common stock, shares authorized (in shares)						15,000,000
Common stock shares, description				The Company was authorized to issue 100,000,000 shares of $.0001 par value common stock.
Conversion of preferred stock to common stock, shares					51,983
Credit Agreement [Member]
Capital Structure (Textual)
Proceeds from sale of stock		$ 8,600,000
Sale of common stock shares		1,700,000
Purchase price per share		$ 5.50
Series 1 Convertible Preferred Stock [Member]
Capital Structure (Textual)
Convertible preferred stock, terms of conversion, description				243,065 shares of Series 1 Convertible Preferred Stock outstanding, which are convertible into 147,417 shares of common stock.
Convertible, conversion price per share				$ 0.60649
Conversion of preferred stock to common stock, shares					85,132
Series 2 Convertible Preferred Stock [Member]
Capital Structure (Textual)
Preferred stock, par value (in dollars per share)				$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)				25,000	25,000
Preferred stock, shares outstanding				21,952	21,952
Proceeds from sale of stock	$ 20,000,000
Convertible preferred stock, terms of conversion, description	Each Series 2 Preferred Share is convertible at a conversion price of $8.10 into approximately 124 shares of common stock; provided, the conversion price is subject to reduction pursuant to a weighted average anti-dilution provision contained in the Series 2 Certificate of Designations. The holders of the Series 2 Preferred Shares 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, during the two year period commencing on the date of issuance, the average closing price during any 45 consecutive trading day period equals or exceeds $17.50 per common share, or a change of control transaction (as defined in the Series 2 Certificate of Designations) values the Company's common stock at $17.50 per share or greater; or after this two year period 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.
Convertible preferred stock, shares issued upon conversion	20,000
Convertible preferred stock, stated value				$ 1,000	$ 1,000
Additional gross proceeds from sale of stock	$ 1,950,000
Additional sale of shares	1,952
Cumulative dividends				$ 2,321,001

Stock Options (Details) - Stock option [Member]	6 Months Ended
Stock Options (Details) - Stock option [Member]	Jun. 30, 2017 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Outstanding \| shares	411,600
Number of shares, Granted \| shares	68,000
Number of shares, Forfeited \| shares	(16,700)
Number of shares, Expired \| shares	(160,000)
Number of shares, Exercised \| shares	(5,000)
Number of shares, Outstanding \| shares	297,900
Number of shares, vested and exercisable \| shares	200,734
Number of shares, vested and exercisable expected to vest thereafter \| shares	293,000
Weighted average exercise price, Balance \| $ / shares	$ 8.63
Weighted average exercise price, Granted \| $ / shares	4.31
Weighted average exercise price, Forfeited \| $ / shares	6.01
Weighted average exercise price, Expired \| $ / shares	12.50
Weighted average exercise price, Exercised \| $ / shares	3.00
Weighted average exercise price, Balance \| $ / shares	5.80
Weighted average exercise price vested and exercisable \| $ / shares	6.33
Weighted average exercise price, vested and exercisable expected to vest thereafter \| $ / shares	$ 6.33
Weighted average contractual term (years)	7 years 4 months 9 days
Weighted average contractual term, vested and exercisable (years)	6 years 4 months 20 days
Weighted average contractual term, vested and exercisable expected to vest thereafter (years)	7 years 4 months 9 days
Aggregate intrinsic value, Outstanding \| $	$ 86,500
Aggregate intrinsic value, vested and exercisable \| $	67,500
Aggregate intrinsic value, vested and exercisable expected to vest thereafter \| $	$ 86,500

Stock Options (Details 1) - Stock option [Member]	6 Months Ended
Stock Options (Details 1) - Stock option [Member]	Jun. 30, 2017 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	6 years
Expected volatility	38.00%
Dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 4.02
Risk-free interest rate	1.98%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 5.25
Risk-free interest rate	2.06%

Stock Options (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Stock Options (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 15, 2015	Oct. 31, 2009	Jan. 31, 2007
Stock Options (Textual)
Weighted average grant date fair value of options granted			$ 1.70
Unrecognized compensation cost related to non vested options			$ 140,800
Remaining Contractual Life			2 years 2 months 12 days
Compensation expense	$ 19,321	$ 57,943	$ 42,211	$ 78,381
Stock options granted period, description			Options granted under the Plans vest over periods ranging from immediately upon grant to a three year period and expire ten years from date of grant.
2015 Stock Option Plan [Member]
Stock Options (Textual)
Common shares authorized for issuance (in shares)					400,000
2007 Omnibus Equity Compensation Plan [Member]
Stock Options (Textual)
Common shares authorized for issuance (in shares)						420,000	210,000

Warrants (Details) - Warrant [Member]	6 Months Ended
Warrants (Details) - Warrant [Member]	Jun. 30, 2017 $ / shares
Class of Warrant or Right [Line Items]
Exercise price	$ 1,250
Expected life	7 years
Expected volatility	38.00%
Dividend yield	0.00%
Risk-free interest rate	1.35%

Warrants (Details 1) - Common Stock Warrants [Member]	6 Months Ended
Warrants (Details 1) - Common Stock Warrants [Member]	Jun. 30, 2017 $ / shares shares
Class of Warrant or Right [Line Items]
Common Stock Warrants Outstanding	511,553
Series 2 Preferred Stock Warrants Outstanding	439
Exercise Price $ 11.00 [Member]
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 11.00
Common Stock Warrants Outstanding	134,250
Weighted Average Remaining Contractual Life	2 years
Series 2 Preferred Stock Warrants Outstanding
Exercise Price $ 10.00 [Member]
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 10.00
Common Stock Warrants Outstanding	200,000
Weighted Average Remaining Contractual Life	4 years
Series 2 Preferred Stock Warrants Outstanding
Exercise price $ 5.50 [Member]
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 5.50
Common Stock Warrants Outstanding	177,303
Weighted Average Remaining Contractual Life	5 years
Series 2 Preferred Stock Warrants Outstanding
Exercise price 1,250 [Member]
Class of Warrant or Right [Line Items]
Exercise Price \| $ / shares	$ 1,250
Common Stock Warrants Outstanding
Weighted Average Remaining Contractual Life	7 years
Series 2 Preferred Stock Warrants Outstanding	439

Warrants (Details Textual) - Warrant [Member] - USD ($)		6 Months Ended
Warrants (Details Textual) - Warrant [Member] - USD ($)	Jun. 24, 2016	Jun. 30, 2017
Warrants (Textual)
Warrant total fair value		$ 150,451
Series 2 preferred stock warrants outstanding		439
Series 2 Convertible Preferred Stock [Member]
Warrants (Textual)
Exercise price	$ 1,250
Series 2 preferred stock warrants outstanding	439

Income Taxes (Details)	12 Months Ended
Income Taxes (Details)	Dec. 31, 2016 USD ($)
Income Taxes (Textual)
Operating loss carryforwards expiration period	2023 to 2036
Federal [Member]
Income Taxes (Textual)
Net operating loss carryforwards	$ 15,075,000
State [Member]
Income Taxes (Textual)
Net operating loss carryforwards	$ 10,109,000