FlexShopper (FPAY) 10-Q 12 May 22 2022 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 12, 2022
Document Information Line Items
Entity Registrant Name	FlexShopper, Inc.
Trading Symbol	FPAY
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		21,605,234
Amendment Flag	false
Entity Central Index Key	0001397047
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly 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	Suite 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

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash	$ 4,319,701	$ 5,094,642
Accounts receivable, net	29,537,940	26,338,883
Loans receivable	7,137,503	3,560,108
Prepaid expenses	932,019	957,527
Lease merchandise, net	36,597,829	40,942,112
Total current assets	78,524,992	76,893,272
Property and equipment, net	8,423,894	7,841,206
Other assets, net	76,809	77,578
Total assets	87,025,695	84,812,056
CURRENT LIABILITIES:
Accounts payable	4,816,837	7,982,180
Accrued payroll and related taxes	665,024	391,078
Promissory notes to related parties, net of $0 at 2022 and net of $1,274 at 2021 of unamortized issuance costs, including accrued interest	225,127	1,053,088
Accrued expenses	1,579,036	2,987,646
Lease liability - current portion	181,197	172,732
Total current liabilities	7,467,221	12,586,724
Loan payable under credit agreement to beneficial shareholder, net of $450,679 at 2022 and $413,076 at 2021 of unamortized issuance costs and current portion	55,699,321	50,061,924
Promissory notes to related parties, net of current portion	7,750,000	3,750,000
Deferred income tax liability	178,160	495,166
Lease liabilities net of current portion	1,726,023	1,774,623
Total liabilities	72,820,725	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 21,605,234 shares at March 31, 2022 and 21,442,278 shares at December 31, 2021	2,161	2,144
Additional paid in capital	39,002,386	38,560,117
Accumulated deficit	(47,603,237)	(45,222,302)
Total stockholders’ equity	14,204,970	16,143,619
Total liabilities and stockholders' equity	$ 87,025,695	$ 84,812,056

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Promissory notes to related parties net unamortized issuance costs (in Dollars)	$ 0	$ 1,274
Loan payable unamortized issuance costs and current portion (in Dollars)	$ 450,679	$ 413,076
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	21,605,234	21,442,278
Common stock, shares outstanding	21,605,234	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 Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Lease revenues and fees, net	$ 27,766,312	$ 32,751,331
Loan revenues and fees, net of changes in fair value	1,188,924	32,339
Total revenues	28,955,236	32,783,670
Costs and expenses:
Cost of lease revenues, consisting of depreciation and impairment of lease merchandise	19,160,611	22,463,556
Loan origination costs and fees	425,513	63,397
Marketing	2,014,115	1,832,740
Salaries and benefits	2,964,442	2,909,319
Operating expenses	5,673,202	4,114,424
Total costs and expenses	30,237,883	31,383,436
Operating (loss)/income	(1,282,647)	1,400,234
Interest expense including amortization of debt issuance costs	1,958,068	1,398,997
Income before income taxes	(3,240,715)	1,237
Income taxes	(859,780)
Net (loss)/income	(2,380,935)	1,237
Dividends on Series 2 Convertible Preferred Shares	609,777	609,772
Net loss attributable to common and Series 1 Convertible Preferred shareholders	$ (2,990,712)	$ (608,535)
Basic and diluted (in Dollars per share)	$ (0.14)	$ (0.03)
Basic and diluted (in Shares)	21,547,069	21,369,904

Condensed Consolidated Statemen

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - 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				380,263		380,263
Issuance of warrants in connection with consulting agreement				212,923		212,923
Exercise of stock options into common stock			$ 2	12,910		12,912
Exercise of stock options into common stock (in Shares)			16,000
Net income/loss					1,237	1,237
Balance at Mar. 31, 2021	$ 851,660	$ 21,952,000	$ 2,138	37,449,422	(48,493,839)	11,761,381
Balance (in Shares) at Mar. 31, 2021	170,332	21,952	21,375,945
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				305,229		305,229
Issuance of warrants in connection with consulting agreement
Exercise of stock options into common stock			$ 17	137,040		137,057
Exercise of stock options into common stock (in Shares)			162,956
Net income/loss					(2,380,935)	(2,380,935)
Balance at Mar. 31, 2022	$ 851,660	$ 21,952,000	$ 2,161	$ 39,002,386	$ (47,603,237)	$ 14,204,970
Balance (in Shares) at Mar. 31, 2022	170,332	21,952	21,605,234

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/income	$ (2,380,935)	$ 1,237
Adjustments to reconcile net (loss)/income to net cash used in operating activities:
Depreciation and impairment of lease merchandise	19,160,611	22,463,556
Other depreciation and amortization	937,062	651,396
Amortization of debt issuance costs	50,603	91,703
Compensation expense related to stock-based compensation and warrants	305,229	593,186
Provision for doubtful accounts	11,831,117	8,833,349
Interest in kind added to promissory notes balance	170,765	9,098
Deferred income tax	(317,006)
Net changes in the fair value of loans receivable	523,424	16,993
Changes in operating assets and liabilities:
Accounts receivable	(15,030,174)	(9,727,764)
Loans receivable	(4,100,819)	(118,417)
Prepaid expenses and other	25,658	(53,683)
Lease merchandise	(14,816,328)	(18,961,999)
Security deposits		4,280
Lease Liabilities	(2,511)	(1,033)
Accounts payable	(3,165,343)	(4,781,405)
Accrued payroll and related taxes	273,946	208,230
Accrued expenses	(1,405,958)	208,266
Net cash used in operating activities	(7,940,659)	(563,007)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment, including capitalized software costs and data costs	(1,553,810)	(734,122)
Net cash used in investing activities	(1,553,810)	(734,122)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loan payable under credit agreement	6,800,000	3,500,000
Repayment of loan payable under credit agreement	(1,125,000)	(3,910,000)
Debt issuance related costs	(86,931)	(526,565)
Proceeds from exercise of stock options	137,057	12,912
Proceeds from promissory notes, net of fees	3,000,000
Principal payment under finance lease obligation	(2,796)	(1,833)
Repayment of instalment loan	(2,802)	(2,802)
Net cash provided by/used in financing activities	8,719,528	(928,288)
DECREASE IN CASH	(774,941)	(2,225,417)
CASH, beginning of period	5,094,642	8,541,232
CASH, end of period	4,319,701	6,315,815
Supplemental cash flow information:
Interest paid	$ 1,679,296	$ 1,282,781

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The unaudited condensed consolidated 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 the interim financial statements does not include all information and disclosures necessary for a fair presentation of FlexShopper, Inc.’s 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 FlexShopper, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on March 30, 2022. The condensed consolidated balance sheet as of December 31, 2021 contained herein has been derived from audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain prior year amounts have been reclassified to conform to the current year presentation.

Business

Business	3 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
BUSINESS	2. 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 and owns 100% of FlexLending, LLC, a Delaware limited liability company. The Company is a holding corporation with no operations except for those conducted by FlexShopper LLC and its subsidiary FlexLending, 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 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. The Company effects these transactions by first approving consumers through its proprietary, risk analytics-powered underwriting model. 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. The Company then collects payments from consumers under their consumer lease. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation - Estimates - Revenue Recognition Accounts Receivable and Allowance for Doubtful Accounts - March 31, December 31, Accounts receivable $ 51,988,768 $ 54,042,161 Allowance for doubtful accounts (22,450,828 ) (27,703,278 ) Accounts receivable, net $ 29,537,940 $ 26,338,883 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 continue to accrue weekly charges until they are charged off. As the lease ages, the greater the allowance attributable to that account to reflect the decreased likelihood of successful collection efforts. Accounts receivable balances charged off against the allowance were $17,083,567 for the three months ended March 31, 2022 and $7,036,164 for the three months ended March 31, 2021. Three Months Year Beginning balance $ 27,703,278 $ 22,138,541 Provision 11,831,117 40,342,618 Accounts written off (17,083,567 ) (34,777,881 ) Ending balance $ 22,450,828 $ 27,703,278 Lease Merchandise - The net leased merchandise balances consisted of the following as of March 31, 2022 and December 31, 2021: March 31, December 31, Lease merchandise at cost $ 68,614,211 $ 72,159,063 Accumulated depreciation (29,574,842 ) (29,505,431 ) Impairment reserve (2,441,540 ) (1,711,520 ) Lease merchandise, net $ 36,597,829 $ 40,942,112 Cost of lease merchandise sold represents the undepreciated cost of rental merchandise at the time of sale. Loans receivable Interest and fees are discontinued when loans receivable 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 loans receivables that were previously charge off are recognized when cash is received. Changes in the fair value of loans receivable include the impact of current period charge offs associated with these receivables. The Company estimates the fair value of the loans receivable 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 loans receivable are presented within “Fair Value Measurement” section in this Note. A third-party bank partner originates our credit product and initially provides all of the funding for the loans. The third-party retains 5% of the balance of all loans originated and sells a 95% loan participation to the Company. The Company services the loans and remits the corresponding portion to the third party. Loan revenues and fees is representative of the Company’s portion of participation in the loans. 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 for all leases at the commencement date as 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. 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 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 the condensed consolidated statements of operations is shown below: Three Months ended March 31, 2022 2021 Lease billings and accruals $ 39,597,429 $ 41,584,680 Provision for doubtful accounts (11,831,117 ) (8,833,349 ) Lease revenues and fees $ 27,766,312 $ 32,751,331 Deferred Debt Issuance Costs - Debt issuance costs incurred in conjunction with the subordinated Promissory Notes 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 three months ended March 31, 2022 and $3,183 for the three months ended March 31, 2021, respectively. Intangible Assets - Software Costs - Data Costs Capitalized data costs amounted to $293,054 for the three months ended March 31, 2022 and $0 for the three months ended March 31, 2021. Capitalized data costs amortization expense was $88,721 for the three months ended March 31, 2022 and $0 for the three months ended March 31, 2021. Operating Expenses - Marketing Costs - Per Share Data - 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 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. In computing diluted loss per share for the three months ended March 31, 2022 and the three months ended March 31, 2021, no effect has been given to the issuance of common stock upon conversion or exercise of the Series 2 Convertible Preferred stock as their effect is anti-dilutive. Three Months ended March 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 3,837,559 3,118,730 Common Stock Warrants 2,255,184 2,232,488 Performance Share Units 790,327 - 13,070,899 11,539,047 The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021: Three Months ended March 31, 2022 2021 Numerator Net (loss)/income $ (2,380,935 ) $ 1,237 Convertible Series 2 Preferred Share dividends (609,777 ) (609,772 ) Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS $ (2,990,712 ) $ (608,535 ) Denominator Denominator for basic and diluted EPS- weighted average shares 21,547,069 21,369,904 Basic EPS $ (0.14 ) (0.03 ) Diluted EPS $ (0.14 ) (0.03 ) Stock-Based Compensation - 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 Company utilizes the fair value option on its entire loans receivable portfolio purchased from its bank partner. 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. 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 March 31, 2022 and December 31, 2021 is as follows: Fair Value Measurement Using Financial instruments – As of March 31, 2022 (1) Level 1 Level 2 Level 3 Carrying Amount Loans receivable $  - $ - $ 7,137,503 $ 7,137,503 Fair Value Measurement Using Financial instruments – As of December 31, 2021 (1) Level 1 Level 2 Level 3 Carrying Amount Loans receivable $ - $ - $ 3,560,108 $ 3,560,108 (1) For cash, accounts 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 increased by unamortized issuance costs 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 primarily estimates the fair value of its loans receivables portfolio using discounted cash flow models that have been internally developed. 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 loans receivables. When multiple inputs are used within the valuation techniques for loans receivables, a change in one input in a certain direction may be offset by an opposite change from another input. 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 loans 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 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 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 March 31, 2022 and December 31, 2021: Three months Year Beginning balance $ 3,560,108 $ 89,445 Purchases of loan participation 4,295,401 3,473,039 Interest and fees (1) 1,712,348 672,272 Collections (1,906,930 ) (907,169 ) Net charge off (1) (164,780 ) (146,923 ) Net change in fair value (1) (358,644 ) 379,444 Ending balance $ 7,137,503 $ 3,560,108 (1) Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statement 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 March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Minimum Maximum Weighted Average (2) Minimum Maximum Weighted Average Estimated losses (1) 26.0 % 35.0 % 34.8 % 26.0 % 35.0 % 34.6 % Servicing costs - - 4.0 % - - 4.6 % Discount rate - - 11.4 % - - 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 (retail and direct-to-consumer). Other relevant data as of March 31, 2022 and December 31, 2021 concerning loans receivables at fair value are as follows: March 31, December 31, Aggregate fair value of loans receivables at fair value that are 90 days or more past due $ 253,418 $ - Unpaid principal balance of loans receivables at fair value that are 90 days or more past due 372,059 - Aggregate fair value of loans receivables at fair value in non-accrual status - - Income Taxes 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 March 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, respectively.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
LEASES	4. LEASES Refer to Note 3 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. 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 “January 2019 Lease”). 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. The monthly rent for this space is approximately $6,900 per month. 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 rental expense for the three months ended March 31, 2022 and 2021 was approximately $179,000 and $167,000 respectively. At March 31, 2022, the future minimum annual lease payments are approximately as follows: 2022 $ 348,000 2023 427,000 2024 435,000 2025 443,000 2026 456,000 Thereafter 774,000 $ 2,883,000 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 beginning January 1, 2019. Supplemental balance sheet information related to leases is as follows: Balance Sheet Classification March 31, December 31, Assets Operating Lease Asset Property and Equipment, net $ 1,501,756 $ 1,534,512 Finance Lease Asset Property and Equipment, net 16,745 18,818 Total Lease Assets $ 1,518,501 $ 1,553,330 Liabilities Operating Lease Liability - current portion Current Lease Liabilities $ 172,382 $ 163,939 Finance Lease Liability - current portion Current Lease Liabilities 8,815 8,793 Operating Lease Liability - net of current portion Long Term Lease Liabilities 1,715,071 1,761,558 Finance Lease Liability - net of current portion Long Term Lease Liabilities 10,952 13,065 Total Lease Liabilities $ 1,907,220 $ 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 Weighted Operating Leases 13.03 % 6 Finance Leases 13.34 % 2 Operating lease expense is recognized on a straight-line basis over the lease term within operating expenses in the Company’s condensed consolidated statements of operations. Finance lease expense is recognized over the lease term within interest expense and amortization in the Company’s condensed consolidated statements of operations. The Company’s total operating and finance lease expense all relate to lease costs and amounted to $97,592 and $104,031 for the three months ended March 31, 2022 and March 31, 2021, respectively. Supplemental cash flow information related to operating leases is as follows: Three Months ended March 31, 2022 2021 Cash payments for operating leases $ 100,356 $ 104,573 Cash payments for finance leases 2,796 2,796 Below is a summary of undiscounted operating lease liabilities as of March 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 2022 $ 305,086 2023 417,606 2024 430,134 2025 443,038 2026 456,330 2027 and thereafter 773,593 Total undiscounted cash flows 2,825,787 Less: interest (938,334 ) Present value of lease liabilities $ 1,887,453 Below is a summary of undiscounted finance lease liabilities as of March 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 2022 $ 8,388 2023 9,699 2024 4,782 Total undiscounted cash flows 22,869 Less: interest (3,102 ) Present value of lease liabilities $ 19,767

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	5. PROPERTY AND EQUIPMENT Property and equipment consist of the following: Estimated March 31, December 31, Furniture, fixtures and vehicle 2-5 years $ 391,669 $ 391,669 Website, internal use software and data costs 3 years 17,464,227 16,186,179 Computers and software 3-7 years 2,557,737 2,281,975 20,413,633 18,859,823 Less: accumulated depreciation and amortization (13,508,240 ) (12,571,947 ) Right of use assets, net 1,518,501 1,553,330 $ 8,423,894 $ 7,841,206 Depreciation and amortization expense were $936,293 and $650,627 for the three months ended March 31, 2022 and 2021, respectively.

Promissory Notes-Related Partie

Promissory Notes-Related Parties	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
PROMISSORY NOTES-RELATED PARTIES	6. PROMISSORY NOTES-RELATED PARTIES 122 Partners Note- Interests paid for the 122 Partner Note were $32,716 and $39,966 for the three months ended March 31, 2022 and 2021, respectively. Interests expensed for the 122 Partner Note were $62,529 and $36,989 for the three months ended March 31, 2022 and 2021, respectively. NRNS Note- Interests paid for the NRNS Note were $151,286 and $150,087 for the three months ended March 31, 2022 and 2021, respectively. Interests expensed for the NRNS Note were $292,238 and $139,053 for the three months ended March 31, 2022 and 2021, respectively. Amounts payable under the promissory notes are as follows: Debt Interest 2022 $ - $ 225,127 2023 $ 1,000,000 $ - 2024 $ 6,750,000 $ -

Loan Payable Under Credit Agree

Loan Payable Under Credit Agreement	3 Months Ended
	Mar. 31, 2022
Loan Payable Disclosure [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 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 March 31, 2022, amounts borrowed bear interest at 11.40%. 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. 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 March 31, 2022, follows: March 31, 2022 Required Actual Equity Book Value not less than $ 9,636,387 $ 14,204,970 Liquidity greater than 1,500,000 4,319,701 Cash greater than 500,000 4,319,701 Consolidated Total Debt to Equity Book Value ratio not to exceed 5.25 4.48 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. As of March 31, 2022, the Company had $1,735,977 available under the Credit Agreement. Credit availability is subject to a borrowing base which is redetermined from time to time and based on specific advance rates on eligible current assets. As the Company continues to originate lease agreements, new leases will be eligible for the borrowing base and this will open more availability under the Credit Agreement. Interest expense incurred under the Credit Agreement amounted to $1,551,844 for the three months ended March 31, 2022, and $1,125,239 for the three months ended March 31, 2021. The outstanding balance under the Credit Agreement was $56,150,000 as of March 31, 2022 and was $36,790,000 as of March 31, 2021. Such amount is presented in the consolidated balance sheet net of unamortized issuance costs of $450,679 and $499,661 as of March 31, 2022 and 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 March 31, 2022. On March 5, 2021, the applicable regulators announced that LIBOR will cease to be provided and will no longer be representative (i) immediately after December 31, 2021 for all sterling, euro, Swiss franc and Japanese yen settings, and the one-week and two-month U.S. dollar settings and (ii) immediately after June 30,2023 for the remaining U.S. dollar settings. The Company’s debt bears interest based on the one-month LIBOR rate. If there is a LIBOR Disruption Event as defined in the Credit Agreement, LIBOR will be replaced with the Prime Rate.

Capital Structure

Capital Structure	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [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 - As of March 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 March 31, 2022, 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 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 March 31, 2022 totaled approximately $13,880,950. As of March 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. 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 is August 31, 2021. There are no additional automatic renewals. The Consulting Agreement and amendments were approved by the Company’s Compensation Committee. 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 three months ended March 31, 2021, the Company recorded an expense of $212,923 based on a weighted average grant date fair value of $1.77 per warrant. Warrants Expense Grant date fair value Grant Date Granted Recorded Per Warrant January 31, 2021 40,000 $ 73,595 $ 1.84 February 28, 2021 40,000 76,318 1.91 March 31, 2021 40,000 63,010 1.58 120,000 212,923 1.77 The following table summarizes information about outstanding stock warrants as of March 31, 2022, all of which are exercisable: Common Series 2 Preferred Weighted Average Exercise Stock Warrants Stock Warrants Remaining Price Outstanding Outstanding Contractual Life $ 1.25 1,055,184 1 year $ 1.25 160,000 1 year $ 1.34 40,000 1 year $ 1.40 40,000 1 year $ 1.54 40,000 1 year $ 1.62 40,000 1 year $ 1.68 40,000 3 years $ 1.69 40,000 1 year $ 1.74 40,000 1 year $ 1.76 40,000 1 year $ 1.91 40,000 1 year $ 1.95 40,000 3 years $ 2.00 40,000 1 year $ 2.01 40,000 1 year $ 2.08 40,000 3 years $ 2.45 40,000 1 year $ 2.53 40,000 1 year $ 2.57 40,000 3 years $ 2.70 40,000 4 years $ 2.78 40,000 1 year $ 2.79 40,000 4 years $ 2.89 40,000 4 years $ 2.93 40,000 1 year $ 2.97 40,000 4 years $ 3.09 40,000 4 years $ 3.17 40,000 4 years $ 3.19 40,000 4 years $ 3.27 40,000 4 years $ 1,250 439 * 1 year 2,255,184 439 (*) At March 31, 2022, these warrants were convertible into 116,903 shares of common stock

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 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 March 31, 2022, the Company granted under its equity compensation plans, stock options and performance share units (the “PSU”) and, approximately 720,000 shares remained available for issuance under the 2018 Plan. Stock-based compensation expense include the following components: Three months Three months Stock options $ 291,283 $ 380,263 Performance share units 13,946 - Total stock-based compensation 305,229 380,263 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 statement of operations was $305,229 and $380,263 for the three months ended March 31, 2022 and March 31, 2021, respectively. Unrecognized compensation cost related to non-vested options and PSU at March 31, 2022 amounted to approximately $802,271, which is expected to be recognized over a weighted average period of 3.07 years Stock options: The fair value of stock-based compensation is recognized as compensation expense by 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: Three months Three months Exercise price $ 1.53 to 1.71 $ 2.38 to 2.76 Expected life 6 years 5 years Expected volatility 66.7 % 93 % Dividend yield 0 % 0 % Risk-free interest rate 1.8 to 2.4 % 0.31 to 0.93 % 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 (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. Activity in stock options for the three months period ended March 31, 2022 and March 31, 2021 was as follows: Number of Weighted Weighted Aggregate Outstanding at January 1, 2022 3,080,904 $ 2.06 $ 1,923,642 Granted 951,944 1.54 - Exercised (162,956 ) .84 204,030 Forfeited (7,333 ) 2.22 2,273 Expired (25,000 ) 1.70 - Outstanding at March 31, 2022 3,837,559 $ 1.98 7.34 $ 925,306 Vested and exercisable at March 31, 2022 2,508,822 $ 1.25 6.58 $ 731,891 Outstanding at January 1, 2021 2,595,700 $ 1.92 $ - Granted 543,397 2.48 - Exercised (16,000 ) .81 40,010 Forfeited (4,667 ) .82 9,564 Outstanding at March 31, 2021 3,118,730 $ 2.03 7.39 $ 2,681,180 Vested and exercisable at March 31, 2021 1,819,541 $ 1.95 7.68 $ 2,029,793 The weighted average grant date fair value of options granted during the three month period ended March 31, 2022 and March 31, 2021 was $0.92 and $1.76 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 as adjusted EBITDA of the Company. 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. Activity in performance share units for the three months ended March 31, 2022 was as follows: Number of Weighted Non- vested at January 1, 2022 - - Granted 790,327 $ 1.53 Forfeited/ unearned - - Vested - - Non- vested at March 31, 2022 790,327 $ 1.53

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	10. INCOME TAXES Effective income tax rates for interim periods are based on our estimate of the applicable annual income tax rate. The Company’s effective income tax rate varies based upon the estimate of our annual taxable earnings and the allocation of those taxable earnings across the various states in which we operate. Changes in the annual allocation of the Company’s activity among these jurisdictions results in changes to the effective tax rate utilized to measure the Company’s income tax provision and deferred tax assets and liabilities The Company’s effective income tax rate for the three months ended March 31, 2022 was approximately 27%. This was different than the expected federal income tax rate of 21% primarily due to the impact of the valuation allowance provided against our deferred tax assets. Non-taxable income from non-deductible equity compensation and state income taxes also impacted the effective tax rate. Management believes that certain federal and state deferred tax assets as of March 31, 2022 do not satisfy the realization criteria and has recorded a valuation allowance to reduce the carrying value of the Company’s deferred tax assets to the extent that realization is not more likely than not. Deferred tax liabilities are recorded to the extent that reversing taxable temporary differences cannot be offset with existing deferred tax assets.

Contingencies and Other Uncerta

Contingencies and Other Uncertainties	3 Months Ended
	Mar. 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. COVID-19 The extent of the impact and effects of the recent outbreak of the coronavirus (COVID-19) on the operation and financial performance of our business will depend on future developments, including the duration and spread of the outbreak, the recovery time of the disrupted supply chains, or the uncertainty with respect to the accessibility of additional liquidity or capital markets, all of which are highly uncertain and cannot be predicted. If the demand for the Company’s leases is impacted by this outbreak for an extended period, our results of operations may be materially adversely affected.

Commitments

Commitments	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	12. COMMITMENTS The Company does not have any commitments other than real property leases (Note 4).

Promissory Note- Paycheck Prote

Promissory Note- Paycheck Protection Program	3 Months Ended
	Mar. 31, 2022
Pay Check Protection Programs [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.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation -
Estimates	Estimates -
Revenue Recognition	Revenue Recognition
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts - March 31, December 31, Accounts receivable $ 51,988,768 $ 54,042,161 Allowance for doubtful accounts (22,450,828 ) (27,703,278 ) Accounts receivable, net $ 29,537,940 $ 26,338,883 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 continue to accrue weekly charges until they are charged off. As the lease ages, the greater the allowance attributable to that account to reflect the decreased likelihood of successful collection efforts. Accounts receivable balances charged off against the allowance were $17,083,567 for the three months ended March 31, 2022 and $7,036,164 for the three months ended March 31, 2021. Three Months Year Beginning balance $ 27,703,278 $ 22,138,541 Provision 11,831,117 40,342,618 Accounts written off (17,083,567 ) (34,777,881 ) Ending balance $ 22,450,828 $ 27,703,278
Lease Merchandise	Lease Merchandise - The net leased merchandise balances consisted of the following as of March 31, 2022 and December 31, 2021: March 31, December 31, Lease merchandise at cost $ 68,614,211 $ 72,159,063 Accumulated depreciation (29,574,842 ) (29,505,431 ) Impairment reserve (2,441,540 ) (1,711,520 ) Lease merchandise, net $ 36,597,829 $ 40,942,112 Cost of lease merchandise sold represents the undepreciated cost of rental merchandise at the time of sale.
Loans receivable at fair value	Loans receivable Interest and fees are discontinued when loans receivable 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 loans receivables that were previously charge off are recognized when cash is received. Changes in the fair value of loans receivable include the impact of current period charge offs associated with these receivables. The Company estimates the fair value of the loans receivable 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 loans receivable are presented within “Fair Value Measurement” section in this Note. A third-party bank partner originates our credit product and initially provides all of the funding for the loans. The third-party retains 5% of the balance of all loans originated and sells a 95% loan participation to the Company. The Company services the loans and remits the corresponding portion to the third party. Loan revenues and fees is representative of the Company’s portion of participation in the loans.
Lease accounting	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 for all leases at the commencement date as 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. 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 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 the condensed consolidated statements of operations is shown below: Three Months ended March 31, 2022 2021 Lease billings and accruals $ 39,597,429 $ 41,584,680 Provision for doubtful accounts (11,831,117 ) (8,833,349 ) Lease revenues and fees $ 27,766,312 $ 32,751,331
Deferred Debt Issuance Costs	Deferred Debt Issuance Costs - Debt issuance costs incurred in conjunction with the subordinated Promissory Notes 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 three months ended March 31, 2022 and $3,183 for the three months ended March 31, 2021, respectively.
Intangible Assets	Intangible Assets -
Software Costs	Software Costs -
Data Costs	Data Costs Capitalized data costs amounted to $293,054 for the three months ended March 31, 2022 and $0 for the three months ended March 31, 2021. Capitalized data costs amortization expense was $88,721 for the three months ended March 31, 2022 and $0 for the three months ended March 31, 2021.
Operating Expenses	Operating Expenses -
Marketing Costs	Marketing Costs -
Per Share Data	Per Share Data - 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 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. In computing diluted loss per share for the three months ended March 31, 2022 and the three months ended March 31, 2021, no effect has been given to the issuance of common stock upon conversion or exercise of the Series 2 Convertible Preferred stock as their effect is anti-dilutive. Three Months ended March 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 3,837,559 3,118,730 Common Stock Warrants 2,255,184 2,232,488 Performance Share Units 790,327 - 13,070,899 11,539,047 The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021: Three Months ended March 31, 2022 2021 Numerator Net (loss)/income $ (2,380,935 ) $ 1,237 Convertible Series 2 Preferred Share dividends (609,777 ) (609,772 ) Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS $ (2,990,712 ) $ (608,535 ) Denominator Denominator for basic and diluted EPS- weighted average shares 21,547,069 21,369,904 Basic EPS $ (0.14 ) (0.03 ) Diluted EPS $ (0.14 ) (0.03 )
Stock-Based Compensation	Stock-Based Compensation - 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	Fair Value of Financial Instruments The Company utilizes the fair value option on its entire loans receivable portfolio purchased from its bank partner.
Fair Value Measurements	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. 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 March 31, 2022 and December 31, 2021 is as follows: Fair Value Measurement Using Financial instruments – As of March 31, 2022 (1) Level 1 Level 2 Level 3 Carrying Amount Loans receivable $  - $ - $ 7,137,503 $ 7,137,503 Fair Value Measurement Using Financial instruments – As of December 31, 2021 (1) Level 1 Level 2 Level 3 Carrying Amount Loans receivable $ - $ - $ 3,560,108 $ 3,560,108 (1) For cash, accounts 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 increased by unamortized issuance costs 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 primarily estimates the fair value of its loans receivables portfolio using discounted cash flow models that have been internally developed. 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 loans receivables. When multiple inputs are used within the valuation techniques for loans receivables, a change in one input in a certain direction may be offset by an opposite change from another input. 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 loans 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 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 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 March 31, 2022 and December 31, 2021: Three months Year Beginning balance $ 3,560,108 $ 89,445 Purchases of loan participation 4,295,401 3,473,039 Interest and fees (1) 1,712,348 672,272 Collections (1,906,930 ) (907,169 ) Net charge off (1) (164,780 ) (146,923 ) Net change in fair value (1) (358,644 ) 379,444 Ending balance $ 7,137,503 $ 3,560,108 (1) Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statement 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 March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Minimum Maximum Weighted Average (2) Minimum Maximum Weighted Average Estimated losses (1) 26.0 % 35.0 % 34.8 % 26.0 % 35.0 % 34.6 % Servicing costs - - 4.0 % - - 4.6 % Discount rate - - 11.4 % - - 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 (retail and direct-to-consumer). Other relevant data as of March 31, 2022 and December 31, 2021 concerning loans receivables at fair value are as follows: March 31, December 31, Aggregate fair value of loans receivables at fair value that are 90 days or more past due $ 253,418 $ - Unpaid principal balance of loans receivables at fair value that are 90 days or more past due 372,059 - Aggregate fair value of loans receivables at fair value in non-accrual status - -
Income Taxes	Income Taxes 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 March 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, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Schedule of accounts receivable	March 31, December 31, Accounts receivable $ 51,988,768 $ 54,042,161 Allowance for doubtful accounts (22,450,828 ) (27,703,278 ) Accounts receivable, net $ 29,537,940 $ 26,338,883
Schedule of allowance for doubtful accounts	Three Months Year Beginning balance $ 27,703,278 $ 22,138,541 Provision 11,831,117 40,342,618 Accounts written off (17,083,567 ) (34,777,881 ) Ending balance $ 22,450,828 $ 27,703,278
Schedule of net leased merchandise	March 31, December 31, Lease merchandise at cost $ 68,614,211 $ 72,159,063 Accumulated depreciation (29,574,842 ) (29,505,431 ) Impairment reserve (2,441,540 ) (1,711,520 ) Lease merchandise, net $ 36,597,829 $ 40,942,112
Schedule of lessor revenues and fees	Three Months ended March 31, 2022 2021 Lease billings and accruals $ 39,597,429 $ 41,584,680 Provision for doubtful accounts (11,831,117 ) (8,833,349 ) Lease revenues and fees $ 27,766,312 $ 32,751,331
Schedule of series1 convertible preferred stock and series 2 convertible preferred stock due to anti-dilution	Three Months ended March 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 3,837,559 3,118,730 Common Stock Warrants 2,255,184 2,232,488 Performance Share Units 790,327 - 13,070,899 11,539,047
Schedule of basic and diluted earnings per share	Three Months ended March 31, 2022 2021 Numerator Net (loss)/income $ (2,380,935 ) $ 1,237 Convertible Series 2 Preferred Share dividends (609,777 ) (609,772 ) Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS $ (2,990,712 ) $ (608,535 ) Denominator Denominator for basic and diluted EPS- weighted average shares 21,547,069 21,369,904 Basic EPS $ (0.14 ) (0.03 ) Diluted EPS $ (0.14 ) (0.03 )
Schedule of fair value assets measured on recurring basis	Fair Value Measurement Using Financial instruments – As of March 31, 2022 (1) Level 1 Level 2 Level 3 Carrying Amount Loans receivable $  - $ - $ 7,137,503 $ 7,137,503 Fair Value Measurement Using Financial instruments – As of December 31, 2021 (1) Level 1 Level 2 Level 3 Carrying Amount Loans receivable $ - $ - $ 3,560,108 $ 3,560,108 (1) For cash, accounts 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 increased by unamortized issuance costs and the carrying value of promissory notes to related parties approximates fair value based upon their interest rates, which approximate current market interest rates.
Schedule of fair value assets measured on recurring basis, unobservable input reconciliation	Three months Year Beginning balance $ 3,560,108 $ 89,445 Purchases of loan participation 4,295,401 3,473,039 Interest and fees (1) 1,712,348 672,272 Collections (1,906,930 ) (907,169 ) Net charge off (1) (164,780 ) (146,923 ) Net change in fair value (1) (358,644 ) 379,444 Ending balance $ 7,137,503 $ 3,560,108 (1) Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statement of operations
Schedule of quantitative information about the inputs used in fair value measurement	March 31, 2022 December 31, 2021 Minimum Maximum Weighted Average (2) Minimum Maximum Weighted Average Estimated losses (1) 26.0 % 35.0 % 34.8 % 26.0 % 35.0 % 34.6 % Servicing costs - - 4.0 % - - 4.6 % Discount rate - - 11.4 % - - 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 (retail and direct-to-consumer).
Schedule of concerning loan receivables at fair value	March 31, December 31, Aggregate fair value of loans receivables at fair value that are 90 days or more past due $ 253,418 $ - Unpaid principal balance of loans receivables at fair value that are 90 days or more past due 372,059 - Aggregate fair value of loans receivables at fair value in non-accrual status - -

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Schedule of undiscounted finance lease liabilities	2022 $ 348,000 2023 427,000 2024 435,000 2025 443,000 2026 456,000 Thereafter 774,000 $ 2,883,000
Schedule of balance sheet information related to leases	Balance Sheet Classification March 31, December 31, Assets Operating Lease Asset Property and Equipment, net $ 1,501,756 $ 1,534,512 Finance Lease Asset Property and Equipment, net 16,745 18,818 Total Lease Assets $ 1,518,501 $ 1,553,330 Liabilities Operating Lease Liability - current portion Current Lease Liabilities $ 172,382 $ 163,939 Finance Lease Liability - current portion Current Lease Liabilities 8,815 8,793 Operating Lease Liability - net of current portion Long Term Lease Liabilities 1,715,071 1,761,558 Finance Lease Liability - net of current portion Long Term Lease Liabilities 10,952 13,065 Total Lease Liabilities $ 1,907,220 $ 1,947,355
Schedule of weighted-average discount rate and weighted-average remaining lease term	Weighted Weighted Operating Leases 13.03 % 6 Finance Leases 13.34 % 2
Schedule of supplemental cash flow information related to operating leases	Three Months ended March 31, 2022 2021 Cash payments for operating leases $ 100,356 $ 104,573 Cash payments for finance leases 2,796 2,796
Schedule of undiscounted operating lease liabilities	Operating 2022 $ 305,086 2023 417,606 2024 430,134 2025 443,038 2026 456,330 2027 and thereafter 773,593 Total undiscounted cash flows 2,825,787 Less: interest (938,334 ) Present value of lease liabilities $ 1,887,453
Schedule of undiscounted finance lease liabilities	Finance 2022 $ 8,388 2023 9,699 2024 4,782 Total undiscounted cash flows 22,869 Less: interest (3,102 ) Present value of lease liabilities $ 19,767

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Estimated March 31, December 31, Furniture, fixtures and vehicle 2-5 years $ 391,669 $ 391,669 Website, internal use software and data costs 3 years 17,464,227 16,186,179 Computers and software 3-7 years 2,557,737 2,281,975 20,413,633 18,859,823 Less: accumulated depreciation and amortization (13,508,240 ) (12,571,947 ) Right of use assets, net 1,518,501 1,553,330 $ 8,423,894 $ 7,841,206

Promissory Notes-Related Part_2

Promissory Notes-Related Parties (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of amounts payable under the promissory notes	Debt Interest 2022 $ - $ 225,127 2023 $ 1,000,000 $ - 2024 $ 6,750,000 $ -

Loan Payable Under Credit Agr_2

Loan Payable Under Credit Agreement (Tables)	3 Months Ended
	Mar. 31, 2022
Loan Payable Disclosure [Abstract]
Schedule of covenant requirements, and flexshopper's actual results	March 31, 2022 Required Actual Equity Book Value not less than $ 9,636,387 $ 14,204,970 Liquidity greater than 1,500,000 4,319,701 Cash greater than 500,000 4,319,701 Consolidated Total Debt to Equity Book Value ratio not to exceed 5.25 4.48

Capital Structure (Tables)

Capital Structure (Tables)	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Schedule of weighted average valuation	Warrants Expense Grant date fair value Grant Date Granted Recorded Per Warrant January 31, 2021 40,000 $ 73,595 $ 1.84 February 28, 2021 40,000 76,318 1.91 March 31, 2021 40,000 63,010 1.58 120,000 212,923 1.77
Schedule of outstanding stock warrants	Common Series 2 Preferred Weighted Average Exercise Stock Warrants Stock Warrants Remaining Price Outstanding Outstanding Contractual Life $ 1.25 1,055,184 1 year $ 1.25 160,000 1 year $ 1.34 40,000 1 year $ 1.40 40,000 1 year $ 1.54 40,000 1 year $ 1.62 40,000 1 year $ 1.68 40,000 3 years $ 1.69 40,000 1 year $ 1.74 40,000 1 year $ 1.76 40,000 1 year $ 1.91 40,000 1 year $ 1.95 40,000 3 years $ 2.00 40,000 1 year $ 2.01 40,000 1 year $ 2.08 40,000 3 years $ 2.45 40,000 1 year $ 2.53 40,000 1 year $ 2.57 40,000 3 years $ 2.70 40,000 4 years $ 2.78 40,000 1 year $ 2.79 40,000 4 years $ 2.89 40,000 4 years $ 2.93 40,000 1 year $ 2.97 40,000 4 years $ 3.09 40,000 4 years $ 3.17 40,000 4 years $ 3.19 40,000 4 years $ 3.27 40,000 4 years $ 1,250 439 * 1 year 2,255,184 439 (*) At March 31, 2022, these warrants were convertible into 116,903 shares of common stock

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of stock-based compensation expense	Three months Three months Stock options $ 291,283 $ 380,263 Performance share units 13,946 - Total stock-based compensation 305,229 380,263
Schedule of measured fair value of each option award grant using the black-scholes-merton (BSM) pricing model	Three months Three months Exercise price $ 1.53 to 1.71 $ 2.38 to 2.76 Expected life 6 years 5 years Expected volatility 66.7 % 93 % Dividend yield 0 % 0 % Risk-free interest rate 1.8 to 2.4 % 0.31 to 0.93 %
Schedule of stock option	Number of Weighted Weighted Aggregate Outstanding at January 1, 2022 3,080,904 $ 2.06 $ 1,923,642 Granted 951,944 1.54 - Exercised (162,956 ) .84 204,030 Forfeited (7,333 ) 2.22 2,273 Expired (25,000 ) 1.70 - Outstanding at March 31, 2022 3,837,559 $ 1.98 7.34 $ 925,306 Vested and exercisable at March 31, 2022 2,508,822 $ 1.25 6.58 $ 731,891 Outstanding at January 1, 2021 2,595,700 $ 1.92 $ - Granted 543,397 2.48 - Exercised (16,000 ) .81 40,010 Forfeited (4,667 ) .82 9,564 Outstanding at March 31, 2021 3,118,730 $ 2.03 7.39 $ 2,681,180 Vested and exercisable at March 31, 2021 1,819,541 $ 1.95 7.68 $ 2,029,793
Schedule of activity in performance share units	Number of Weighted Non- vested at January 1, 2022 - - Granted 790,327 $ 1.53 Forfeited/ unearned - - Vested - - Non- vested at March 31, 2022 790,327 $ 1.53

Business (Details)

Business (Details)	Mar. 31, 2022
Business (Details) [Line Items]
Ownership percentage	100.00%
FlexLending, LLC [Member]
Business (Details) [Line Items]
Ownership percentage	100.00%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of Significant Accounting Policies (Details) [Line Items]
Accounts receivable charged off against allowance	$ 17,083,567	$ 7,036,164
Loan description	The third-party retains 5% of the balance of all loans originated and sells a 95% loan participation to the Company.
Amortization included in interest expense	$ 49,329	88,521
Intangible assets, terms	10 years
Amortization of intangible assets	$ 769
Capitalized software costs	984,994	588,992
Capitalized software amortization expense	621,694	570,567
Capitalized data costs	293,054	0
Capitalized data costs amortization expense	$ 88,721	0
Largest benefit percentage	50.00%
Promissory Notes [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Amortization included in interest expense	$ 1,274	$ 3,183

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Schedule of accounts receivable [Abstract]
Accounts receivable	$ 51,988,768	$ 54,042,161
Allowance for doubtful accounts	(22,450,828)	(27,703,278)
Accounts receivable, net	$ 29,537,940	$ 26,338,883

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details) - Schedule of allowance for doubtful accounts - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Schedule of allowance for doubtful accounts [Abstract]
Beginning balance	$ 27,703,278	$ 22,138,541
Provision	11,831,117	40,342,618
Accounts written off	(17,083,567)	(34,777,881)
Ending balance	$ 22,450,828	$ 27,703,278

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details) - Schedule of net leased merchandise - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Schedule of net leased merchandise [Abstract]
Lease merchandise at cost	$ 68,614,211	$ 72,159,063
Accumulated depreciation	(29,574,842)	(29,505,431)
Impairment reserve	(2,441,540)	(1,711,520)
Lease merchandise, net	$ 36,597,829	$ 40,942,112

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details) - Schedule of lessor revenues and fees - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of lessor revenues and fees [Abstract]
Lease billings and accruals	$ 39,597,429	$ 41,584,680
Provision for doubtful accounts	(11,831,117)	(8,833,349)
Lease revenues and fees	$ 27,766,312	$ 32,751,331

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Details) - Schedule of series1 convertible preferred stock and series 2 convertible preferred stock due to anti-dilution - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	13,070,899	11,539,047
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,837,559	3,118,730
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	2,232,488
Performance Stock 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 Accoun_9

Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted earnings per share - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator
Net (loss)/income	$ (2,380,935)	$ 1,237
Convertible Series 2 Preferred Share dividends	(609,777)	(609,772)
Net loss attributable to common and Series 1 Convertible Preferred Shareholders - Numerator for basic and diluted EPS	$ (2,990,712)	$ (608,535)
Denominator
Denominator for basic and diluted EPS- weighted average shares (in Shares)	21,547,069	21,369,904
Basic EPS (in Dollars per share)	$ (0.14)	$ (0.03)
Diluted EPS (in Dollars per share)	$ (0.14)	$ (0.03)

Summary of Significant Accou_10

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis - Fair Value, Recurring [Member] - USD ($)		Mar. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]
Loans receivable	[1]	$ 7,137,503	$ 3,560,108
Level 1 [Member]
Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]
Loans receivable	[1]
Level 2 [Member]
Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]
Loans receivable	[1]
Level 3 [Member]
Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis [Line Items]
Loans receivable	[1]	$ 7,137,503	$ 3,560,108
[1]	For cash, accounts 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 increased by unamortized issuance costs and the carrying value of promissory notes to related parties approximates fair value based upon their interest rates, which approximate current market interest rates.

Summary of Significant Accou_11

Summary of Significant Accounting Policies (Details) - Schedule of fair value assets measured on recurring basis, unobservable input reconciliation - Level 3 [Member] - USD ($)		3 Months Ended	12 Months Ended
		Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		$ 3,560,108	$ 89,445
Purchases of loan participation		4,295,401	3,473,039
Interest and fees	[1]	1,712,348	672,272
Collections		(1,906,930)	(907,169)
Net charge off	[1]	(164,780)	(146,923)
Net change in fair value	[1]	(358,644)	379,444
Ending balance		$ 7,137,503	$ 3,560,108
[1]	Included in loan revenues and fees, net of changes in fair value in the condensed consolidated statement of operations

Summary of Significant Accou_12

Summary of Significant Accounting Policies (Details) - Schedule of quantitative information about the inputs used in fair value measurement		Mar. 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]	26.00%		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]	35.00%		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]	34.80%	[2]	34.60%
Servicing costs		4.00%	[2]	4.60%
Discount rate		11.40%	[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 (retail and direct-to-consumer).

Summary of Significant Accou_13

Summary of Significant Accounting Policies (Details) - Schedule of concerning loan receivables at fair value - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of concerning loan receivables at fair value [Abstract]
Aggregate fair value of loans receivables at fair value that are 90 days or more past due	$ 253,418
Unpaid principal balance of loans receivables at fair value that are 90 days or more past due	372,059
Aggregate fair value of loans receivables at fair value in non-accrual status

Leases (Details)

Leases (Details)	Jan. 31, 2019USD ($)m²	Sep. 30, 2021USD ($)	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)
Leases [Abstract]
Monthly rent			$ 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		$ 6,900
Rental expense			179,000	$ 167,000
Operating lease costs			$ 97,592	$ 104,031

Leases (Details) - Schedule of

Leases (Details) - Schedule of the future minimum annual lease payments	Mar. 31, 2022USD ($)
Schedule of the future minimum annual lease payments [Abstract]
2022	$ 348,000
2023	427,000
2024	435,000
2025	443,000
2026	456,000
Thereafter	774,000
Total	$ 2,883,000

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of balance sheet information related to leases - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Assets
Total Lease Assets	$ 1,518,501	$ 1,553,330
Liabilities
Total Lease Liabilities	$ 1,907,220	1,947,355
Property and Equipment, net [Member]
Assets
Balance Sheet Classification, Operating Lease Asset	Property and Equipment, net
Operating Lease Asset	$ 1,501,756	1,534,512
Balance Sheet Classification, Finance Lease Asset	Property and Equipment, net
Finance Lease Asset	$ 16,745	18,818
Current Lease Liabilities [Member]
Liabilities
Balance Sheet Classification, Operating Lease Liability - current portion	Current Lease Liabilities
Operating Lease Liability - current portion	$ 172,382	163,939
Balance Sheet Classification, Finance Lease Liability - current portion	Current Lease Liabilities
Finance Lease Liability - current portion	$ 8,815	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	$ 1,715,071	1,761,558
Balance Sheet Classification, Finance Lease Liability - net of current portion	Long Term Lease Liabilities
Finance Lease Liability - net of current portion	$ 10,952	$ 13,065

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of weighted-average discount rate and weighted-average remaining lease term	Mar. 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	13.34%
Weighted Average Remaining Lease Term (in years)	2 years

Leases (Details) - Schedule o_4

Leases (Details) - Schedule of supplemental cash flow information related to operating leases - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of supplemental cash flow information related to operating leases [Abstract]
Cash payments for operating leases	$ 100,356	$ 104,573
Cash payments for finance leases	$ 2,796	$ 2,796

Leases (Details) - Schedule o_5

Leases (Details) - Schedule of undiscounted operating lease liabilities	Mar. 31, 2022USD ($)
Schedule of undiscounted operating lease liabilities [Abstract]
2022	$ 305,086
2023	417,606
2024	430,134
2025	443,038
2026	456,330
2027 and thereafter	773,593
Total undiscounted cash flows	2,825,787
Less: interest	(938,334)
Present value of lease liabilities	$ 1,887,453

Leases (Details) - Schedule o_6

Leases (Details) - Schedule of undiscounted finance lease liabilities - Finance Leases [Member]	Mar. 31, 2022USD ($)
Leases (Details) - Schedule of undiscounted finance lease liabilities [Line Items]
2022	$ 8,388
2023	9,699
2024	4,782
Total undiscounted cash flows	22,869
Less: interest	(3,102)
Present value of lease liabilities	$ 19,767

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 936,293	$ 650,627

Property and Equipment (Detai_2

Property and Equipment (Details) - Schedule of property and equipment - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 20,413,633	$ 18,859,823
Property plant and equipment other accumulated depreciation	(13,508,240)	(12,571,947)
Right of use assets, net	1,518,501	1,553,330
Property and equipment, net	8,423,894	7,841,206
Furniture, fixtures and vehicle [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 391,669	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, internal use software and data costs [Member]
Property, Plant and Equipment [Line Items]
Estimated Useful Lives	3 years
Property and equipment, gross	$ 17,464,227	16,186,179
Computers and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,557,737	$ 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

Promissory Notes-Related Part_3

Promissory Notes-Related Parties (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jan. 25, 2019
Promissory Notes-Related Parties (Details) [Line Items]
Principal accrued unpaid interest outstanding	$ 1,041,252	$ 1,012,533
Interests paid	32,716	39,966
Interests expensed	$ 62,529	36,989
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]
Debt principal amount	$ 3,750,000
Bear interest rate	5.00%
Principal accrued unpaid interest outstanding	$ 6,933,875	3,797,278
Interests paid	151,286	150,087
Interests expensed	$ 292,238	$ 139,053
Chief Financial Officer [Member]
Promissory Notes-Related Parties (Details) [Line Items]
Debt principal amount			$ 1,000,000
Bear interest rate	5.00%

Promissory Notes-Related Part_4

Promissory Notes-Related Parties (Details) - Schedule of amounts payable under the promissory notes	3 Months Ended
	Mar. 31, 2022USD ($)
2022 [Member]
Promissory Notes-Related Parties (Details) - Schedule of amounts payable under the promissory notes [Line Items]
Debt Principal
Interest	225,127
2023 [Member]
Promissory Notes-Related Parties (Details) - Schedule of amounts payable under the promissory notes [Line Items]
Debt Principal	1,000,000
Interest
2024 [Member]
Promissory Notes-Related Parties (Details) - Schedule of amounts payable under the promissory notes [Line Items]
Debt Principal	6,750,000
Interest

Loan Payable Under Credit Agr_3

Loan Payable Under Credit Agreement (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 29, 2021	Mar. 31, 2022	Mar. 31, 2021	Mar. 08, 2022	Mar. 06, 2015
Loan Payable Under Credit Agreement (Details) [Line Items]
Lender fee	$ 237,000
Increased commitment amount				$ 82,500,000
Credity availability		$ 1,735,977
Outstanding balance under credit agreement			$ 36,790,000
Unamortized issuance costs		$ 450,679	499,661
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		11.40%
Interest expense		$ 1,551,844	$ 1,125,239
Outstanding balance under credit agreement		$ 56,150,000

Loan Payable Under Credit Agr_4

Loan Payable Under Credit Agreement (Details) - Schedule of covenant requirements, and flexshopper's actual results	3 Months Ended
	Mar. 31, 2022USD ($)$ / 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	$ 14,204,970
Liquidity greater than	4,319,701
Cash greater than	$ 4,319,701
Consolidated Total Debt to Equity Book Value ratio not to exceed (in Dollars per share) | $ / shares	$ 4.48

Capital Structure (Details)

Capital Structure (Details) - USD ($)	1 Months Ended		3 Months Ended
	Sep. 30, 2018	Jun. 30, 2016	Mar. 31, 2022	Mar. 31, 2021
Capital Structure (Details) [Line Items]
Warrant 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 (in Dollars per share)			$ 23
Convertible preferred stock, terms of conversion, description			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.
Common stock, share authorized			40,000,000
Common stock par or stated per share value (in Dollars per share)			$ 0.0001
Series 1 Convertible Preferred Stock [Member]
Capital Structure (Details) [Line Items]
Preferred stock conversion basis, description			As of March 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 March 31, 2022, 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
Proceeds from sale of stock (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)			$ 13,880,950
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.
Consulting Agreement [Member]
Capital Structure (Details) [Line Items]
Warrant exercise price (in Dollars per share)			$ 1.6
Warrants expiration period			4 years
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
Valuation expenses (in Dollars)				$ 212,923
Weighted average grant date fair value (in Dollars per share)				$ 1.77
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) - S

Capital Structure (Details) - Schedule of weighted average valuation	3 Months Ended
	Mar. 31, 2022USD ($)$ / sharesshares
Capital Structure (Details) - Schedule of weighted average valuation [Line Items]
Warrants Granted | shares	120,000
Expense Recorded | $	$ 212,923
Grant date fair value Per Warrant | $ / shares	$ 1.77
Warrant [Member] | January 31, 2021 [Member]
Capital Structure (Details) - Schedule of weighted average valuation [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 valuation [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 valuation [Line Items]
Warrants Granted | shares	40,000
Expense Recorded | $	$ 63,010
Grant date fair value Per Warrant | $ / shares	$ 1.58

Capital Structure (Details) -_2

Capital Structure (Details) - Schedule of outstanding stock warrants - Warrant [Member]	3 Months Ended
	Mar. 31, 2022$ / sharesshares
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 (in Dollars per share) | $ / shares	$ 1.25
Common Stock Warrants Outstanding	1,055,184
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.25 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.25
Common Stock Warrants Outstanding	160,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.34 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.34
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.40 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.4
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.54 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.54
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.62 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.62
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.68 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.68
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	3 years
Exercise Price 1.69 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.69
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.74 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.74
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.76 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.76
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.91 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.91
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 1.95 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1.95
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	3 years
Exercise Price 2.00 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 2.01 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.01
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 2.08 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.08
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	3 years
Exercise Price 2.45 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.45
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 2.53 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.53
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 2.57 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.57
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	3 years
Exercise Price 2.70 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.7
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 2.78 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.78
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 2.79 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.79
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 2.89 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.89
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 2.93 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.93
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	1 year
Exercise Price 2.97 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 2.97
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 3.09 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 3.09
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 3.17 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 3.17
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 3.89 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 3.19
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 3.27 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 3.27
Common Stock Warrants Outstanding	40,000
Weighted Average Remaining Contractual Life	4 years
Exercise Price 1,250 [Member]
Class of Warrant or Right [Line Items]
Exercise Price (in Dollars per share) | $ / shares	$ 1,250
Series 2 Preferred Stock Warrants Outstanding	439	[1]
Weighted Average Remaining Contractual Life	1 year
[1]	At March 31, 2022, these warrants were convertible into 116,903 shares of common stock

Equity Compensation Plans (Deta

Equity Compensation Plans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity Compensation Plans (Details) [Line Items]
Compensation expense	$ 305,229	$ 380,263
Unrecognized compensation cost related to non-vested options	$ 802,271
Weighted average period	3 years 25 days
Weighted average grant fair value (in Dollars per share)	$ 0.92	$ 1.76
Issued ranges percentage		0.00%
2018 Plan [Member]
Equity Compensation Plans (Details) [Line Items]
Shares issued (in Shares)	720,000

Equity Compensation Plans (De_2

Equity Compensation Plans (Details) - Schedule of stock-based compensation expense - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of stock-based compensation expense [Abstract]
Stock options	$ 291,283	$ 380,263
Performance share units	13,946
Total stock-based compensation	$ 305,229	$ 380,263

Equity Compensation Plans (De_3

Equity Compensation Plans (Details) - Schedule of measured fair value of each option award grant using the black-scholes-merton (BSM) pricing model - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Equity Compensation Plans (Details) - Schedule of measured fair value of each option award grant using the black-scholes-merton (BSM) pricing model [Line Items]
Expected life	6 years	5 years
Expected volatility	66.70%	93.00%
Dividend yield	0.00%	0.00%
Minimum [Member]
Equity Compensation Plans (Details) - Schedule of measured fair value of each option award grant using the black-scholes-merton (BSM) pricing model [Line Items]
Exercise price (in Dollars per share)	$ 1.53	$ 2.38
Risk-free interest rate	1.80%	0.31%
Maximum [Member]
Equity Compensation Plans (Details) - Schedule of measured fair value of each option award grant using the black-scholes-merton (BSM) pricing model [Line Items]
Exercise price (in Dollars per share)	$ 1.71	$ 2.76
Risk-free interest rate	2.40%	0.93%

Equity Compensation Plans (De_4

Equity Compensation Plans (Details) - Schedule of stock option - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 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
Number of options Granted	951,944	543,397
Weighted average exercise price Granted	$ 1.54	$ 2.48
Aggregate intrinsic value Granted
Number of options Exercised	(162,956)	(16,000)
Weighted average exercise price Exercised	$ 0.84	$ 0.81
Aggregate intrinsic value Exercised	$ 204,030	$ 40,010
Number of options Forfeited	(7,333)	(4,667)
Weighted average exercise price Forfeited	$ 2.22	$ 0.82
Aggregate intrinsic value Forfeited	$ 2,273	$ 9,564
Number of options Expired	(25,000)
Weighted average exercise price Expired	$ 1.7
Number of options Outstanding ending	3,837,559	3,118,730
Weighted average exercise price Outstanding ending	$ 1.98	$ 2.03
Weighted average contractual term (years) Outstanding ending	7 years 4 months 2 days	7 years 4 months 20 days
Aggregate intrinsic value Outstanding ending	$ 925,306	$ 2,681,180
Number of options Vested and exercisable	2,508,822	1,819,541
Weighted average exercise price Vested and exercisable	$ 1.25	$ 1.95
Weighted average contractual term (years) Vested and exercisable	6 years 6 months 29 days	7 years 8 months 4 days
Aggregate intrinsic value Vested and exercisable	$ 731,891	$ 2,029,793

Equity Compensation Plans (De_5

Equity Compensation Plans (Details) - Schedule of activity in performance share units	3 Months Ended
	Mar. 31, 2022shares
Schedule of activity in performance share units [Abstract]
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
Number of performance share units, 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)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	27.00%
Federal income tax rate	21.00%

Promissory Note- Paycheck Pro_2

Promissory Note- Paycheck Protection Program (Details) - USD ($)	May 04, 2020	Jun. 21, 2021	Mar. 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