Item 1.01 Entry into a Material Definitive Agreement.
On September 30, 2021, Opportunity Financial, LLC, a Delaware limited liability company (“OppFi-LLC”) and subsidiary of OppFi Inc., a Delaware corporation (the “Company”), Opportunity Funding SPE IV, LLC, a Delaware limited liability company and wholly owned subsidiary of OppFi-LLC (“OF IV Borrower”), SalaryTap Funding SPE, LLC, a Delaware limited liability company and indirect wholly owned subsidiary of OppFi-LLC (“STF Borrower”), and the other credit parties and guarantors thereto, entered into Amendment No. 6 (the “Amendment”) to that certain Revolving Credit Agreement, dated as of August 19, 2019 (the “Credit Agreement”), by and among OppFi-LLC, OF IV Borrower, the other credit parties and guarantors thereto, BMO Harris Bank N.A. as administrative agent and collateral agent, and the lenders party thereto.
The Amendment amends the Credit Agreement to, among other things, add STF Borrower as an additional borrower under the Credit Agreement, permit the pledge of SalaryTap receivables under the Credit Agreement, increase the size of the facility under the Credit Agreement from $25 million to $45 million, increase the accordion feature under the Credit Agreement from $20 million to $30 million and extend the revolving period of the Credit Agreement to August 19, 2023.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 4.01 Changes in Registrant’s Certifying Accountant.
As previously disclosed, on July 20, 2021 the Company, completed the transactions contemplated by that certain Business Combination Agreement, dated as of February 9, 2021 (the “Business Combination Agreement”), by and among the Company, OppFi-LLC, OppFi Shares, LLC, a Delaware limited liability company and Todd Schwartz, in his capacity as the representative of the members of OppFi-LLC immediately prior to the closing of the transactions contemplated by the Business Combination Agreement (“Business Combination”). For accounting purposes, OppFi-LLC was considered the accounting acquirer in the Business Combination. RSM US LLP (“RSM”) was the independent registered public accounting firm for OppFi-LLC and its consolidated subsidiaries prior to the Business Combination.
On October 4, 2021, the Audit Committee of the Board of Directors of the Company (the “Audit Committee”) dismissed Plante & Moran, PLLC (“Plante”) as the Company’s independent registered public accounting firm. Plante was the independent registered public accounting firm for the Company prior to the Business Combination.
During the period from June 24, 2020 (inception) through October 4, 2021, there were no (i) disagreements with Plante on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to their satisfaction, would have caused them to make reference in connection with their opinion to the subject matter of the disagreement or (ii) reportable events under Item 304(a)(1)(v) of Regulation S-K. The report of Plante on the Company’s balance sheet as of December 31, 2020, and the related statements of income, changes in stockholder’s equity and cash flows for the period from June 24, 2020 (inception) through December 31, 2020, did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainties, audit scope or accounting principles. A letter from Plante is filed as Exhibit 16.1 to this Current Report on Form 8-K.
On October 4, 2021, the Audit Committee engaged RSM as the Company’s independent registered public accounting firm. During the period from June 24, 2020 (inception) through October 4, 2021, neither the Company nor anyone on the Company’s behalf consulted RSM with respect to: (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and neither a written report nor oral advice was provided to the Company by RSM that RSM concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement under paragraph 304(a)(1)(iv) of Regulation S-K or a reportable event under paragraph 304(a)(1)(v) of Regulation S-K.
