Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 09, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39550 | ||
Entity Registrant Name | OppFi Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 85-1648122 | ||
Entity Address, Address Line One | 130 E. Randolph Street | ||
Entity Address, Address Line Two | Suite 3400 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 312 | ||
Local Phone Number | 212-8079 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 248,678,589 | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K includes references to portions of the registrant’s Definitive Proxy Statement for the 2022 Annual Meeting of Stockholders (“Definitive Proxy Statement”). The Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001818502 | ||
Entity Filer Category | Accelerated Filer | ||
Class A Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | ||
Entity Trading Symbol | OPFI | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 13,631,484 | ||
Warrants | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | ||
Entity Trading Symbol | OPFI WS | ||
Security Exchange Name | NYSE | ||
Class B Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 | ||
Class V Voting Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 96,338,474 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | RSM US LLP |
Auditor Location | Raleigh, North Carolina |
Auditor Firm ID | 49 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |||
Assets | |||||
Cash | [1] | $ 25,064 | $ 25,601 | ||
Restricted cash | [1] | 37,298 | 20,056 | ||
Total cash and restricted cash | 62,362 | 45,657 | |||
Finance receivables at fair value | [1] | 383,890 | 0 | ||
Finance receivables at amortized cost, net of allowance for credit losses of $146 and $55,031 as of September 30, 2021 and December 31, 2020, respectively | [1] | 4,220 | 222,243 | ||
Debt issuance costs, net | [1] | 1,525 | 2,598 | ||
Property, equipment and software, net | 14,643 | 10,558 | |||
Deferred tax asset | 25,593 | 0 | |||
Other assets | 9,873 | [1] | 4,787 | ||
Total assets | 502,106 | 285,843 | |||
Liabilities: | |||||
Accounts payable | [1] | 6,100 | 1,380 | ||
Accrued liabilities | [1] | 29,595 | 22,785 | ||
Reserve for repurchase liability | 0 | 4,241 | [1] | ||
Secured borrowing payable | [1] | 22,443 | 16,025 | ||
Senior debt, net | [1] | 251,578 | 131,726 | ||
Warrant liabilities | 11,240 | 0 | |||
Tax receivable agreement liability | 23,272 | 0 | |||
Subordinated debt - related party | 0 | 4,000 | |||
Other debt | 0 | 6,354 | |||
Total liabilities | 344,228 | 186,511 | |||
Commitments and contingencies (Note 15) | |||||
Stockholders' equity / members' equity: | |||||
Preferred units, no par value (0 and 41,102,500 units authorized, issued, and outstanding as of December 31, 2021 and 2020, respectively) | 0 | 6,660 | |||
Preferred stock, $0.0001 par value (1,000,000 shares authorized with no shares issued and outstanding as of December 31, 2021) | 0 | 0 | |||
Additional paid-in capital | 61,672 | 352 | |||
Accumulated (deficit) earnings | (70,723) | 92,320 | |||
Total OppFi Inc.'s stockholders' equity / members' equity | (9,040) | ||||
Total OppFi Inc.'s stockholders' equity / members' equity | 99,332 | ||||
Noncontrolling interest | 166,918 | ||||
Noncontrolling interest | 0 | ||||
Total stockholders' equity / members' equity | 157,878 | ||||
Total stockholders' equity / members' equity | 99,332 | ||||
Total liabilities and stockholders' equity / members' equity | 502,106 | 285,843 | |||
Variable Interest Entity, Primary Beneficiary | |||||
Assets | |||||
Cash | 46 | 127 | |||
Restricted cash | 25,780 | 12,350 | |||
Total cash and restricted cash | 25,826 | 12,477 | |||
Finance receivables at fair value | 379,512 | 0 | |||
Finance receivables at amortized cost, net of allowance for credit losses of $146 and $55,031 as of September 30, 2021 and December 31, 2020, respectively | 0 | 148,473 | |||
Debt issuance costs, net | 1,525 | 2,576 | |||
Other assets | 34 | 26 | |||
Total assets | 406,897 | 163,552 | |||
Liabilities: | |||||
Accounts payable | 25 | 49 | |||
Accrued liabilities | 2,008 | 1,647 | |||
Secured borrowing payable | 22,443 | 16,025 | |||
Senior debt, net | 203,000 | 112,076 | |||
Total liabilities | 227,476 | 129,797 | |||
Class A Common Stock | |||||
Stockholders' equity / members' equity: | |||||
Common stock, value, issued | 1 | 0 | |||
Class B Common Stock | |||||
Stockholders' equity / members' equity: | |||||
Common stock, value, issued | 0 | 0 | |||
Class V Voting Stock | |||||
Stockholders' equity / members' equity: | |||||
Common stock, value, issued | $ 10 | $ 0 | |||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses | $ 803 | $ 55,031 |
Unearned annual fee income | $ (286) | $ 0 |
Preferred units, par value (in dollars per share) | $ 0 | $ 0 |
Preferred units, authorized (in shares) | 0 | 41,102,500 |
Preferred units, issued (in shares) | 0 | 41,102,500 |
Preferred units, outstanding (in shares) | 0 | 41,102,500 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Variable Interest Entity, Primary Beneficiary | ||
Allowance for credit losses | $ 38,612 | |
Class A Common Stock | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 379,000,000 | |
Common stock, shares, issued (in shares) | 13,631,484 | |
Common stock, shares, outstanding (in shares) | 13,631,484 | |
Class B Common Stock | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 6,000,000 | |
Common stock, shares, issued (in shares) | 0 | |
Common stock, shares, outstanding (in shares) | 0 | |
Class V Voting Stock | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 115,000,000 | |
Common stock, shares, issued (in shares) | 96,338,474 | |
Common stock, shares, outstanding (in shares) | 96,338,474 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Interest and loan related income, net | $ 349,029 | $ 290,225 | $ 228,198 |
Other income | 1,539 | 789 | 924 |
Interest and other income | 350,568 | 291,014 | 229,122 |
Provision for credit losses on finance receivables | (929) | (81,619) | (99,389) |
Provision for repurchase liability | 0 | (9,168) | (14,865) |
Change in fair value of finance receivables | (85,960) | 0 | 0 |
Net revenue | 263,679 | 200,227 | 114,868 |
Expenses: | |||
Salaries and employee benefits | 65,049 | 44,196 | 23,680 |
Direct marketing costs | 52,462 | 18,643 | 11,345 |
Interest expense and amortized debt issuance costs | 24,119 | 20,667 | 21,876 |
Interest expense - related party | 137 | 561 | 560 |
Professional fees | 18,838 | 6,569 | 2,862 |
Depreciation and amortization | 10,282 | 6,732 | 4,281 |
Technology costs | 10,064 | 7,623 | 4,579 |
Payment processing fees | 7,480 | 4,123 | 2,674 |
Occupancy | 3,781 | 3,091 | 2,139 |
Management fees - related party | 350 | 700 | 0 |
General, administrative and other | 13,860 | 9,806 | 7,877 |
Total expenses | 206,422 | 122,711 | 81,873 |
Income from operations | 57,257 | 77,516 | 32,995 |
Other income: | |||
Gain on forgiveness of Paycheck Protection Program loan | 6,444 | 0 | 0 |
Change in fair value of warrant liability | 26,405 | 0 | 0 |
Income before income taxes | 90,106 | 77,516 | 32,995 |
Provision for income taxes | 311 | 0 | 0 |
Net income | 89,795 | $ 77,516 | $ 32,995 |
Less: net income attributable to noncontrolling interest | 64,241 | ||
Net income attributable to OppFi Inc. | $ 25,554 | ||
Earnings Per Share [Abstract] | |||
Basic (in dollars per share) | $ 1.93 | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 1.93 | $ 0 | $ 0 |
Weighted average common shares outstanding: | |||
Basic (in dollars per share) | 13,218,119 | 0 | 0 |
Diluted (in dollars per share) | 13,227,049 | 0 | 0 |
Pro forma: | |||
Pro forma income tax expense (unaudited) | $ 311 | $ 0 | $ 0 |
Pro forma net income (unaudited) | $ 89,795 | 77,516 | 32,995 |
Pro Forma | |||
Other income: | |||
Provision for income taxes | 2,304 | 981 | |
Net income | 75,212 | 32,014 | |
Pro forma: | |||
Pro forma income tax expense (unaudited) | 2,304 | 981 | |
Pro forma net income (unaudited) | $ 75,212 | $ 32,014 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity / Members’ Equity - USD ($) $ in Thousands | Total | Previously Reported | Revision of Prior Period, Adjustment | Warrants | Preferred Units | Preferred UnitsWarrants | Common StockClass A Common Stock | Common StockClass V Voting Stock | Additional Paid-in Capital | Additional Paid-in CapitalWarrants | Accumulated Earnings (Deficit) | Accumulated Earnings (Deficit)Previously Reported | Accumulated Earnings (Deficit)Revision of Prior Period, Adjustment | Noncontrolling Interest | Noncontrolling InterestRevision of Prior Period, Adjustment |
Beginning balance, shares at Dec. 31, 2018 | 41,102,500 | 0 | 0 | ||||||||||||
Beginning balance at Dec. 31, 2018 | $ 13,870 | $ 6,660 | $ 0 | $ 0 | $ 141 | $ 7,069 | $ 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Profit interest compensation | 67 | 67 | |||||||||||||
Member distributions | (9,485) | (9,485) | |||||||||||||
Net income | 32,995 | 32,995 | |||||||||||||
Ending balance, shares at Dec. 31, 2019 | 41,102,500 | 0 | 0 | ||||||||||||
Ending balance at Dec. 31, 2019 | 37,447 | $ 6,660 | $ 0 | $ 0 | 208 | 30,579 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Profit interest compensation | 144 | 144 | |||||||||||||
Member distributions | (15,775) | (15,775) | |||||||||||||
Net income | 77,516 | 77,516 | |||||||||||||
Ending balance, shares at Dec. 31, 2020 | 41,102,500 | 0 | 0 | ||||||||||||
Ending balance at Dec. 31, 2020 | 99,332 | $ 6,660 | $ 0 | $ 0 | 352 | 92,320 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Profit interest compensation | 229 | 229 | |||||||||||||
Member distributions | (51,024) | (50,241) | (783) | ||||||||||||
Net income | 89,795 | $ 44,970 | $ 44,825 | $ 44,970 | $ 25,554 | $ 19,271 | |||||||||
Effects of adopting fair value option | 69,435 | 69,435 | |||||||||||||
Member contribution | 200 | $ 200 | |||||||||||||
Warrant units exercised (in shares) | 486,852 | 486,852 | (486,852) | ||||||||||||
Warrant units exercised | $ 5,517 | $ 5,517 | |||||||||||||
Reverse recapitalization (in shares) | (41,589,352) | 12,977,690 | 96,987,093 | ||||||||||||
Reverse recapitalization | (58,117) | $ (6,860) | $ 1 | $ 10 | 52,830 | (252,791) | 148,693 | ||||||||
Exchange of Class V shares (in shares) | 161,767 | (161,767) | |||||||||||||
Exchange of Class V shares | 0 | 233 | 30 | (263) | |||||||||||
Vesting of restricted stock units (in shares) | 5,175 | ||||||||||||||
Vesting of restricted stock units | 0 | ||||||||||||||
Stock based compensation | 2,511 | 2,511 | |||||||||||||
Ending balance, shares at Dec. 31, 2021 | 0 | 13,631,484 | 96,338,474 | ||||||||||||
Ending balance at Dec. 31, 2021 | $ 157,878 | $ 0 | $ 1 | $ 10 | $ 61,672 | $ (70,723) | $ 166,918 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 89,795 | $ 77,516 | $ 32,995 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Change in fair value of finance receivables | 85,960 | 0 | 0 |
Provision for credit losses on finance receivables | 929 | 81,619 | 99,389 |
Provision for repurchase liability | 0 | 9,168 | 14,865 |
Depreciation and amortization | 10,282 | 6,732 | 4,281 |
Debt issuance cost amortization | 2,310 | 1,945 | 1,785 |
Profit interest and stock-based compensation expense | 3,012 | 144 | 66 |
Loss on disposition of equipment | 6 | 0 | 0 |
Deferred income taxes | (544) | 0 | 0 |
Loss on tax receivable agreement liability | 296 | 0 | 0 |
Change in fair value of warrant units | 4,208 | 0 | 0 |
Change in fair value of warrant liability | (26,405) | 0 | 0 |
Gain on forgiveness of Paycheck Protection Program loan | (6,444) | 0 | 0 |
Changes in assets and liabilities: | |||
Unamortized loan origination costs | 0 | 4,947 | (8,273) |
Accrued interest and fees receivable | (2,751) | 5,892 | (5,057) |
Other assets | (4,969) | 291 | (1,809) |
Accounts payable | 3,437 | (3,370) | 1,144 |
Accrued expenses | 8,224 | 7,228 | 9,533 |
Net cash provided by operating activities | 167,346 | 192,112 | 148,919 |
Cash flows from investing activities: | |||
Finance receivables originated and acquired | (587,639) | (473,403) | (476,315) |
Finance receivables repayments and recoveries | 402,542 | 395,716 | 283,677 |
Net repurchases from third-party lender | 0 | (9,905) | (14,870) |
Purchases of equipment and capitalized technology | (14,373) | (10,720) | (6,642) |
Net cash used in investing activities | (199,470) | (98,312) | (214,150) |
Cash flows from financing activities: | |||
Member distributions | (51,024) | (15,776) | (9,485) |
Member contributions | 200 | 0 | 0 |
Payments to Opportunity Financial, LLC unit holders | (91,646) | 0 | 0 |
Cash received in reverse capitalization | 91,857 | 0 | 0 |
Payment of capitalized transaction costs | (21,591) | 0 | 0 |
Net advances (payments) of secured borrowing payable | 6,418 | (1,383) | 8,328 |
Net advances (payments) of senior debt | 120,943 | (70,944) | 81,479 |
Payment of subordinated debt - related party | (4,000) | 0 | 0 |
Proceeds from other debt | 0 | 6,354 | 0 |
Payment for debt issuance costs | (2,328) | (2,373) | (2,311) |
Net cash provided by (used in) financing activities | 48,829 | (84,122) | 78,011 |
Net increase in cash and restricted cash | 16,705 | 9,678 | 12,780 |
Cash and restricted cash | |||
Beginning | 45,657 | 35,979 | 23,199 |
Ending | 62,362 | 45,657 | 35,979 |
Supplemental disclosure of cash flow information: | |||
Interest paid on borrowed funds | 22,041 | 19,973 | 19,687 |
Non-cash change from adopting the fair value option on finance receivables | 69,435 | 0 | 0 |
Non-cash investing and financing activities: | |||
Warrant liabilities recognized in the reverse recapitalization | 37,645 | 0 | 0 |
Additional paid-in capital recognized in the reverse capitalization | 78,468 | 0 | 0 |
Conversion of warrant unit liability to additional paid-in capital | 5,517 | 0 | 0 |
Forgiveness of Paycheck Protection Program loan | $ 6,444 | $ 0 | $ 0 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations OppFi Inc. (“OppFi”), formerly FG New America Acquisition Corp. (“FGNA”), collectively with its wholly-owned subsidiaries (“Company”), is a leading mission-driven financial technology platform that powers banks to offer accessible lending products to everyday consumers through its proprietary technology and artificial intelligence and a top-rated experience. OppFi’s platform facilitates credit access products primarily through its installment loan product, OppLoans. OppFi’s credit access products also include its payroll deduction secured installment loan product, SalaryTap, and credit card product, OppFi Card. On July 20, 2021 (“Closing Date”), the Company completed a business combination pursuant to the Business Combination Agreement (“Business Combination Agreement”), dated as of February 9, 2021, by and among Opportunity Financial, LLC (“OppFi-LLC”), a Delaware limited liability company, OppFi Shares, LLC (“OFS”), a Delaware limited liability company, and Todd Schwartz (“Members’ Representative”), in his capacity as the representative of the members of OppFi-LLC (“Members”) immediately prior to the closing (“Closing”). The transactions contemplated by the Business Combination Agreement are referred to herein as the “Business Combination.” At the Closing, FGNA changed its name to “OppFi Inc.” OppFi’s Class A common stock, par value $0.0001 per share (“Class A Common Stock”) and redeemable warrants exercisable for Class A Common Stock (“Public Warrants”) are listed on the New York Stock Exchange (“NYSE”) under the symbols “OPFI” and “OPFI WS,” respectively. Following the Closing, the Company is organized in an “Up-C” structure in which substantially all of the assets and the business of the Company are held by OppFi-LLC and its subsidiaries, and OppFi’s only direct assets consist of Class A common units of OppFi-LLC (“OppFi Units”). As of December 31, 2021, OppFi owned approximately 12.4% of the OppFi Units and controls OppFi-LLC as the sole manager of OppFi-LLC in accordance with the terms of the Third Amended and Restated Limited Liability Company Agreement of OppFi-LLC (“OppFi A&R LLCA”). All remaining OppFi Units (“Retained OppFi Units”) are beneficially owned by the Members. OFS holds a controlling voting interest in OppFi through its ownership of shares of Class V common stock, par value $0.0001 per share, of OppFi (“Class V Voting Stock”) in an amount equal to the number of Retained OppFi Units and therefore has the ability to control OppFi-LLC. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The accompanying consolidated financial statements include the accounts of OppFi and OppFi-LLC with its wholly-owned subsidiaries: Opportunity Funding SPE II, LLC, Opportunity Funding SPE III, LLC, Opportunity Funding SPE IV, LLC, Opportunity Funding SPE V, LLC, Opportunity Funding SPE VI, LLC, Opportunity Funding SPE VII, LLC, Opportunity Funding SPE VIII, LLC, OppWin, LLC, Opportunity Manager, LLC, Opportunity Financial Card Company, LLC, OppWin Card, LLC, SalaryTap, LLC, OppWin SalaryTap, LLC and SalaryTap Funding SPE, LLC. In 2017, OppFi-LLC entered into a preferred return agreement with Midtown Madison Management LLC, an unrelated third party, which required OppFi-LLC to create a bankruptcy protected entity named Opportunity Funding SPE II, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary. Under the terms of the agreement, Opportunity Funding SPE II, LLC acquires receivables from OppFi-LLC and OppWin LLC, and the third party receives a future preferred economic interest in these assets. OppFi-LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. This transaction is being accounted for as a secured borrowing payable and the entity holds all assets on its balance sheet, which collateralize the debt. In 2018, OppFi-LLC entered into a credit agreement with Ares Agent Services L.P., which required OppFi-LLC to create a bankruptcy protected entity named Opportunity Funding SPE III, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary. Under the terms of the agreement, Opportunity Funding SPE III, LLC uses the proceeds from the credit facility to acquire receivables from OppFi-LLC and OppWin, LLC, and the lender receives first priority lien on all of the entity’s assets. OppFi-LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. This transaction is accounted for as senior debt in which this bankruptcy protected entity holds all assets on its balance sheet, which collateralize the debt. In 2019, OppFi-LLC entered into a credit agreement with BMO Harris Bank N.A, an unrelated third party, which required OppFi-LLC to create a bankruptcy protected entity named Opportunity Funding SPE IV, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary. Under the terms of the agreement, Opportunity Funding SPE IV, LLC uses the proceeds from the credit facility to acquire receivables from OppFi-LLC and OppWin, LLC, and the lender receives first priority lien on all of the entity’s assets. OppFi-LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. This transaction is accounted for as senior debt in which this bankruptcy protected entity holds all assets on its balance sheet, which collateralize the debt. OppFi-LLC provides a financial guaranty in connection with this credit agreement. On September 30, 2021, the credit agreement with BMO Harris Bank N.A. was amended to require OppFi-LLC to create a bankruptcy protected entity named SalaryTap Funding SPE, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary. Under the terms of the agreement, as amended, SalaryTap Funding SPE, LLC uses the proceeds from the existing credit facility to acquire receivables from SalaryTap, LLC and OppWin SalaryTap, LLC, and the lender receives first priority lien on all of the entity’s assets. SalaryTap, LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. This transaction is accounted for as senior debt in which this bankruptcy protected entity holds all assets on its balance sheet, which collateralize the debt. In 2019, OppFi-LLC entered into a credit agreement with Midtown Madison Management LLC which required OppFi-LLC to create a bankruptcy protected entity named Opportunity Funding SPE V, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary. Under the terms of the agreement, Opportunity Funding SPE V, LLC uses the proceeds from the credit facility to acquire receivables from OppFi-LLC and OppWin, LLC, andh the lender receives first priority lien on all of the entity’s assets. OppFi-LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. This transaction is accounted for as senior debt in which this bankruptcy protected entity holds all assets on its balance sheet, which collateralize the debt. On October 13, 2021, the credit agreement with Midtown Madison Management, LLC was amended to add Opportunity Funding SPE VII, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary, as an additional borrower. Under the terms of the agreement, as amended, Opportunity Funding SPE VII, LLC uses the proceeds from the existing credit facility to acquire receivables from Opportunity Financial Card Company, LLC and OppWin Card, LLC, and the lender receives first priority lien on all of the entity’s assets. OppFi-LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. In 2019, OppFi-LLC entered into a credit agreement with Ares Agent Services, L.P., an unrelated third party, which required OppFi-LLC to create a bankruptcy protected entity named Opportunity Funding SPE VI, LLC, a Delaware Limited Liability Company and a wholly owned subsidiary. Under the terms of the agreement, Opportunity Funding SPE VI, LLC uses the proceeds from the credit facility to acquire receivables from OppFi-LLC and OppWin, LLC, and the lender receives first priority lien on all of the entity’s assets. OppFi-LLC continues to service the assets in accordance with the terms of the agreement but is required to maintain a backup servicing agreement. This transaction is accounted for as senior debt in which this bankruptcy protected entity holds all assets on its balance sheet, which collateralize the debt. OppFi-LLC has entered into bank partnership arrangements with certain Utah-chartered banks (“Banks”) insured by the FDIC. Under the terms and conditions of the agreement, the Banks originate finance receivables based on criteria provided by OppFi-LLC. After an initial holding period, OppFi-LLC has committed to acquire the participation rights to the finance receivables originated by the Banks. To facilitate these relationships, OppFi-LLC formed OppWin, LLC, a Delaware Limited Liability Company and a wholly-owned subsidiary of OppFi-LLC; OppWin SalaryTap, LLC, a Delaware Limited Liability Company and a wholly-owned subsidiary of OppFi-LLC; and OppWin Card, LLC, a Delaware Limited Liability Company and a wholly-owned subsidiary of OppFi-LLC. OppWin, LLC acquires the participation rights in the economic interest in installment finance receivables originated by the Banks. Subsequently, OppWin, LLC sells these rights to Opportunity Funding SPE II, LLC, Opportunity Funding SPE III, LLC, Opportunity Funding SPE IV, LLC, Opportunity Funding SPE V, LLC, and Opportunity Funding SPE VI, LLC, which in turn, pledge the participation rights to their respective lenders. OppWin SalaryTap, LLC acquires the participation rights in the economic interest in the SalaryTap finance receivables originated by the Banks. Subsequently, OppWin SalaryTap, LLC sells these rights to SalaryTap Funding SPE, LLC, which in turn, pledges the participation rights to its respective lenders. OppWin Card, LLC acquires the participation rights in the economic interest in the OppFi Card finance receivables originated by the Banks. Subsequently, OppWin Card, LLC sells these rights to Opportunity Funding SPE VII, LLC, which in turn, pledges the participation rights to its respective lenders. The Company accounts for the participation rights as finance receivables. As part of these bank partnership arrangements, the Banks have the ability to retain a percentage of the finance receivables they have originated. OppFi-LLC’s economic interest and acquired participation rights are reduced by the percentage retained by the Banks. In 2019, OppFi-LLC ceased the origination of unsecured lines of credit. As of December 31, 2021 and 2020, OppFi-LLC did not have any outstanding finance receivables relating to lines of credit. Basis of presentation: The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of OppFi Inc. and OppFi-LLC with its wholly-owned subsidiaries (collectively, the “OppFi Subsidiaries”) as of December 31, 2021. In the opinion of the Company’s management, the consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. The Business Combination was accounted for as a reverse recapitalization in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations . Under this method, FGNA was treated as the “acquired” company, and OppFi-LLC, as the accounting acquirer, was assumed to have issued equity for the net assets of FGNA, accompanied by a recapitalization. Principles of consolidation: The consolidated financial statements include the accounts of the above named entities. Opportunity Funding SPE II, LLC, Opportunity Funding SPE III, LLC, Opportunity Funding SPE IV, LLC, Opportunity Funding SPE V, LLC, Opportunity Funding SPE VI, LLC, Opportunity Funding SPE VII, LLC and SalaryTap Funding SPE, LLC are special purpose entities holding finance receivables secured by lenders under a credit or preferred return agreement. OppFi has identified Opportunity Funding SPE II, LLC, Opportunity Funding SPE III, LLC, Opportunity Funding SPE IV, LLC, Opportunity Funding SPE V, LLC, Opportunity Funding SPE VI, LLC, Opportunity Funding SPE VII, LLC and SalaryTap Funding SPE, LLC as VIEs. OppFi-LLC is the sole equity member of all of the aforementioned entities, except for SalaryTap Funding SPE, LLC. SalaryTap, LLC is the sole equity member of SalaryTap Funding SPE, LLC. The Company directs the activities of the VIEs that most significantly impact economic performance. Additionally, the Company has the obligation to absorb losses of the VIEs that could potentially be significant. As the primary beneficiary of the VIEs, the Company has consolidated the financial statements of the VIEs. All significant intercompany transactions and balances have been eliminated in consolidation. Segments: Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. OppFi’s Chief Executive Officer and Chief Financial Officer are collectively considered to be the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s operations constitute a single reportable segment. Use of estimates: The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions, including those impacted by COVID-19, that affect the reported amounts of assets, liabilities and operations and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The judgements, assumptions, and estimates used by management are based on historical experience, management’s experience and qualitative factors. The areas subject to significant estimation techniques are the determination of fair value of installment finance receivables and warrants, and the adequacy of the allowance for credit losses on finance receivables. For the aforementioned estimates, it is reasonably possible the recorded amounts or related disclosures could significantly change in the near future as new information is available. Income recognition: The Company recognizes finance charges on installment, SalaryTap, and lines of credit contracts based on the interest method. Under this method, interest is earned over the lives of the installment, SalaryTap, and lines of credit finance receivables to produce constant rates of interest (yields). Fees for returned payments approximate the cost of services provided and are recognized as incurred, assuming collectability is reasonably assured. For OppFi Card finance receivables, interest is earned as it becomes due and is charged to cardholder accounts. Card-related fees, with the exception of the annual fee, are recognized as incurred. Annual fee revenue is amortized straight-line over the course of 12 months. The Company discontinues and reverses the accrual of interest income on installment and SalaryTap finance receivables at the earlier of 60 days past due based on a recency basis or 90 days past due based on a contractual basis. The Company discontinued and reversed the accrual of interest income on lines of credit finance receivables at 60 days past due based on a recency basis. The accrual of income is not resumed until the account is current on a recency or contractual basis, at which time management considers collectability to be probable. Cash: The Company classifies all cash accounts which are not subject to withdrawal restrictions or penalties as cash. All cash accounts are held in financially insured institutions, which may at times exceed federally insured limits. The Company has not experienced losses in such accounts. Management believes the Company’s exposure to credit risk is minimal for these accounts. Restricted cash: Restricted cash consists of the following: (1) cash required to be held on reserve by the Company’s vendors for purposes of loan processing or funding; (2) cash required to be held for the Company’s guaranty on finance receivables under the terms of the Credit Access Business and Credit Service Organization programs (collectively, the “CSO Program”); (3) cash required to be held in blocked accounts held by the VIEs; and (4) cash required to be held on deposit in connection with the bank partnership arrangements. All cash accounts are held in financially insured institutions, which may at times exceed federally insured limits. The Company has not experienced losses in such accounts. Management believes the Company’s exposure to credit risk is minimal for these accounts. CSO arrangements: In Texas and Ohio, OppFi-LLC previously arranged for consumers to obtain finance receivable products from independent third-party lenders as part of the CSO Program. For the consumer finance receivable products originated by the third-party lenders under the CSO Program, the lenders were responsible for providing the criteria by which the consumer's application was underwritten and, if approved, determining the amount of the finance receivable. When a consumer executed an agreement with OppFi-LLC under the CSO Program, OppFi-LLC agreed, for a fee payable to OppFi-LLC by the consumer, to provide certain services to the consumer, one of which was to guarantee the consumer's obligation to repay the finance receivable obtained by the consumer from the third-party lender if the consumer failed to do so. The guarantees represented an obligation to purchase specific finance receivables that are delinquent, secured by a collateral account established in favor of the respective lenders. On April 23, 2019, the Company discontinued the CSO Program in Ohio, and no new finance receivables were originated through this program after that date. As of December 31, 2021 and 2020, there were no finance receivables remaining under the CSO Program in Ohio. On March 19, 2021, the Company discontinued the CSO Program in Texas. As of December 31, 2021, there were no finance receivables remaining under the CSO Program in Texas. As of December 31, 2020, finance receivables remaining under the CSO Program in Texas totaled $19.7 million. As of December 31, 2020, the unpaid principal balance of off-balance sheet active finance receivables which were guaranteed by the Company was $19.7 million. Upon the election of the fair value option for installment loan finance receivables on January 1, 2021, the Company released the reserve for repurchase liabilities as the income rights and related losses were included in the valuation of finance receivables at fair value, which was included in the fair value adjustment to retained earnings. As of December 31, 2020, the Company recorded a reserve for repurchase liabilities of $4.2 million, which represents the liability for estimated losses on finance receivables guaranteed. The Company used a similar methodology for determining the reserve for repurchase liabilities as it does for calculating the allowance for credit losses on finance receivables. Under the terms of the CSO Program, the Company was required to maintain a restricted cash balance equal to the guaranty, which was determined and settled on a weekly basis. On a daily basis, a receivable and/or payable was recorded to recognize the outstanding settlement balance. As of December 31, 2021, there were no restricted cash balance held in a federally insured bank account related to the CSO Program. As of December 31, 2020, the restricted cash balance held in a federally insured bank account related to the CSO Program was $3.1 million. As of December 31, 2021, there was no outstanding settlement balance related to the CSO Program. As of December 31, 2020, there was a payable balance of $0.8 million, related to settlement which was included in accrued expenses on the consolidated balance sheets. Participation rights purchase obligations : OppFi-LLC has entered into bank partnership arrangements with certain Banks insured by the FDIC. Under the terms and conditions of the bank partnership agreements, the Banks originate finance receivables based on criteria provided by OppFi-LLC. The issuing Bank earns interest during an initial hold period and owns the economic interest in the finance receivables. After the initial holding period, OppFi-LLC is committed to acquire participation rights in the economic interest in the finance receivables originated by the Banks, net of bank partnership retention, plus accrued interest (“Participation Rights”). OppFi-LLC also provides certain services for these receivables in its capacity of sub-servicer pursuant to the terms of the servicing agreement between the Bank and OppFi-LLC. To facilitate these relationships, OppFi-LLC formed OppWin, LLC, OppWin SalaryTap, LLC, and OppWin Card, LLC, which acquire the Participation Rights and sell these rights to certain of the other OppFi Subsidiaries, which in turn, pledge the Participation Rights to their respective lenders. The Company accounts for the Participation Rights as a finance receivable. As part of these bank partnership arrangements, the Banks have the ability to retain a percentage of the finance receivables they have originated, and OppFi-LLC’s Participation Rights are reduced by the percentage of the finance receivables retained by the Banks. For the years ended December 31, 2021 and 2020, finance receivables originated through the bank partnership arrangements totaled 89% and 62%, respectively. As of December 31, 2021 and 2020, the unpaid principal balance of finance receivables outstanding for purchase was $9.5 million and $3.3 million, respectively. Finance receivables: Prior to January 1, 2021, finance receivables, which management has the intent and ability to hold for the foreseeable future or until maturity or payoff, were reported based on outstanding unpaid principal balance net of accrued interest and fees, unamortized loan origination costs and the allowance for credit losses. On January 1, 2021, the Company elected the fair value option on its installment finance receivables upon adoption of ASU 2016-13. Accordingly, the related finance receivables are carried at fair value in the consolidated balance sheets and the changes in fair value are included in the consolidated statements of operations. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses and prepayments over the estimated duration of the underlying assets. Loss and prepayment assumptions are determined using historical loss 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. Accrued interest and fees are included in “Finance receivables at fair value” in the consolidated balance sheets. Interest income is included in “Interest and loan related income, net” in the consolidated statements of operations. The Company did not elect the fair value option on its SalaryTap and OppFi Card finance receivables as these products launched in November 2020 and August 2021, respectively, and inputs for fair value are not yet determined. Accordingly, the related finance receivables are carried at amortized cost, net of allowance for credit losses and unearned fees. Loan origination costs: Direct costs incurred for the origination of finance receivables are deferred and amortized over the average life of the customer using the straight-line method. Prior to the election of the fair value option of its installment loans, direct costs incurred for the origination of these finance receivables included underwriting fees, employee salaries and benefits directly related to the origination of the loan and program fees. Loan origination costs also included direct costs incurred for directly acquiring a customer; these costs were deferred and amortized over the average life of the customer using the straight-line method. With the election of the fair value option, loan origination costs related to the origination of installment finance receivables recognized at fair value are expensed when incurred. Allowance for credit losses on finance receivables: Prior to the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , on January 1, 2021, the Company used a static pool methodology for determining the adequacy of the allowance for credit losses on all finance receivables. Under the static pool methodology, a provision for credit losses on finance receivables was recorded when the allowance for credit losses was determined to be insufficient to absorb estimated losses. Such provisions were charged to income in amounts sufficient to maintain the allowance for losses on finance receivables at an adequate level. The allowance was an amount that management believed would be adequate to absorb estimated losses on existing finance receivables based on an evaluation of the collectability of the finance receivables and prior loss experience. This evaluation also took into consideration such factors as changes in the nature and volume of the finance receivable portfolio, overall portfolio quality and current economic conditions that may affect the borrower's ability to pay. While management used the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in any of the factors. The Company’s charge-off policy is based on a review of delinquent finance receivables on a loan by loan basis. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when the Company receives notification of a customer bankruptcy, or is otherwise deemed uncollectible. The allowance consists of quantitative and qualitative factors. The quantitative factors are based on historical charge-off experience. The qualitative factors are determined based on management’s assessment of internal and/or external influences on credit quality that are not fully reflected in the historical losses. Finance receivables are considered small balance homogeneous receivables and are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual small balance homogeneous receivables for impairment disclosures, unless such receivables are the subject of a restructuring agreement. Effective January 1, 2021, the Company adopted ASU 2016-13. The amendments in ASU 2016-13 replaced the Company’s incurred loss impairment methodology with the current expected credit losses (“CECL”) methodology. Under the CECL methodology, the Company determines the allowance for credit losses and records a provision for credit losses considering all anticipated credit losses over the remaining expected life of its SalaryTap and OppFi Card finance receivables. The Company uses competitive research and considers qualitative factors, such as changes to regulatory requirements, general economic conditions and other events impacting the credit quality of the portfolio for determining the anticipated credit loses of its SalaryTap and OppFi Card finance receivables. The Company will continue to leverage competitive research until sufficient Company performance data exists. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in any of the factors. Delinquency: The Company determines the past due status on a recency basis, which is defined as the last time a qualifying payment is made on an account. Finance receivables are considered delinquent at 30 days or more past due. Prior to May 2020, a qualifying payment was considered to be 50% of the scheduled payment. In May 2020, the policy was changed to consider 90% of the scheduled payment as a qualifying payment. Troubled debt restructurings: As the terms of the receivables are typically not renegotiated and settlement offers are not typically made until after a receivable stops accruing interest income (up to 60 days delinquent), the only receivables considered to be impaired, or troubled debt restructurings, are: 1) those receivables where a settlement offer is made after receivables cease accruing interest, which may result in a modification of contractual terms, 2) the Company has received notification that a borrower is working with a third party to settle debt on his/her behalf and 3) customers who have entered into the Company’s short-term or long-term hardship programs. As of December 31, 2021 and December 31, 2020, management determined the balance of troubled debt restructuring receivables to be immaterial to the consolidated financial statements as a whole. As such, substantially all disclosures relating to impaired finance receivables, and troubled debt restructuring, have been omitted from these consolidated financial statements. Property and equipment: Furniture, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization of furniture, equipment, and leasehold improvements are computed under both straight-line and accelerated methods for financial reporting and income tax purposes, based on the estimated useful lives of the assets which range from three Capitalized technology: Software development costs related to internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Costs incurred during the application development stage that meet the criteria for capitalization are capitalized and amortized, when the software is ready for its intended use, using the straight-line basis, over the estimated useful life of the software, which is generally two years. The Company capitalized software costs associated with application development totaling $13.7 million and $9.0 million for the years ended December 31, 2021 and 2020, respectively. Amortization expense, which is included in depreciation and amortization on the consolidated statements of operations, totaled $9.3 million, $6.0 million, and $3.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. Debt issuance costs: Debt issuance costs are capitalized and amortized based on the contractual terms of the related debt agreements using the interest method for fixed-term debt and the straight-line method for all other debt. Transfer and servicing of financial assets: After a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. The transfers of assets for debt purposes have been accounted for as secured and senior borrowings and the related assets and borrowings are retained on the consolidated balance sheets and no gain or loss has been recognized in the consolidated statements of operations. Stock-based compensation: The Company established the OppFi Inc. 2021 Equity Incentive Plan (“Plan”), which provides for the grant of restricted stock unit awards, incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock units awards, performance units, performance shares, cash-based awards, and other stock-based awards to employees, non-employee directors, officers, and consultants. The Company measures stock-based compensation expense based on the fair value of awards as determined on the date of the grant. The Company recognizes stock-based compensation expense over the requisite service period. The Company accounts for forfeitures when they occur. The Company uses a Black-Scholes-Merton (“Black-Scholes”) option-pricing model to determine the estimated fair value of stock options. The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of stock options. The fair value of restricted stock units and performance stock units is estimated using the market price of the Company’s Class A Common Stock on the date of grant. Earnings per share: The Company calculates basic and diluted earnings per share attributable to common stockholders required for companies with participating securities. Basic earnings per share available to common stockholders is calculated by dividing the net income attributable to OppFi by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share available to common stockholders is computed by giving effect of potentially dilutive common stock equivalents outstanding during the period using the treasury stock method. In periods in which the Company reports a net loss available attributable to OppFi, diluted earnings per share available to common stockholders would be the same as basic earnings per share available to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Warrants: Public Warrants, $11.50 Exercise Price Warrants, $15 Exercise Price Warrants, Private Placement Warrants and Underwriter Warrants do not meet the criteria for equity treatment, due to a provision in the warrant agreement governing such warrants (“Warrant Agreement”) related to certain tender or exchange offer provisions, each warrant must be recorded as a liability. Accordingly, the Company classifies each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations. The Public Warrants are valued at market price based on a quoted price in an active market. The Company utilizes a Monte Carlo simulation model to value the outstanding private placement warrants (“Private Placement Warrants”) issued in connection with FGNA’s initial public offering (“IPO”) at each reporting period. Tax receivable agreement liability: In connection with the Business Combination, OppFi en |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2021 | |
Reverse Recapitalization [Abstract] | |
Business Combination | Business Combination On the Closing Date, OppFi completed the Business Combination with OppFi-LLC pursuant to the Business Combination Agreement. Pursuant to ASC 805, the Business Combination was accounted for as a reverse recapitalization, where FGNA was treated as the “acquired” company and OppFi-LLC, as the accounting acquirer. OppFi-LLC was assumed to have issued equity for the net assets of FGNA, accompanied by a recapitalization. Under this method of accounting, the pre-Business Combination consolidated financial statements of the Company are the historical financial statements of OppFi-LLC. The net assets, consisting of cash, prepaid expenses, accounts payable, and warrant liability, of FGNA were stated at fair value, with no goodwill or other intangible assets recorded in accordance with GAAP and are consolidated with OppFi-LLC’s financial statements on the Closing Date. At the Closing, (i) OppFi-LLC transferred to the Company 12,977,690 OppFi Units, which was equal to the number of shares of Class A Common Stock issued and outstanding as of immediately prior to the Closing (after giving effect to redemptions by FGNA’s public stockholders prior to the Closing and the conversion of FGNA’s Class B common stock, par value $0.0001 per share (“Class B Common Stock”)), (ii) FGNA contributed the Cash Consideration (as defined below) to OppFi-LLC in accordance with the Business Combination Agreement, which was distributed to the Members, and (iii) FGNA issued 96,987,093 shares of newly authorized Class V Voting Stock, which number of shares of Class V Voting Stock was equal to the number of Retained OppFi Units. The aggregate value of the consideration paid to the Members in the Business Combination was approximately $806.5 million, after giving effect to the estimated purchase price adjustments as set forth in the Business Combination Agreement, consisting of: (i) cash consideration in the amount of $91.6 million (“Cash Consideration”), equal to the cash remaining in FGNA’s trust account as of immediately prior to the Closing and (ii) 96,987,093 shares of Class V Voting Stock. Immediately after giving effect to the Business Combination, there were 12,977,690 issued and outstanding shares of Class A Common Stock (giving effect to shares redeemed in connection with the Business Combination and 3,443,750 shares of Class A Common Stock issued upon the conversion of the Class B Common Stock). Shortly after, and as a result of the Business Combination, a lender converted its OppFi Units, resulting in an additional 486,852 shares of Class A Common Stock issued and outstanding for a total of 13,464,542 shares of Class A Common Stock issued and outstanding. On the business day following the Closing, FGNA’s public units automatically separated into their component securities upon consummation of the Business Combination and, as a result, no longer trade as a separate security and were delisted from the NYSE. In connection with the Closing, on the Closing Date, 25,500,000 Retained OppFi Units (“Earnout Units”) held by the Members, and an equal number of shares of Class V Voting Stock distributed to OFS in connection with the Business Combination, are subject to certain restrictions and potential forfeiture pending the achievement (if any) of certain earnout targets pursuant to the terms of the Business Combination Agreement. But for restrictions related to a lock-up (transfer restrictions) and forfeiture (earnout criteria), as such restrictions are more specifically set forth in the Investor Rights Agreement entered into at the Closing, by and among the Company, certain founder holders of FGNA, the Members, the Members’ Representative and/or the OppFi A&R LLCA, as applicable, the Earnout Units have all other economic and voting rights of the other units of OppFi-LLC. With respect to transfers, the Earnout Units are subject to a lock-up until the later of the end of the lock-up period applicable to other OppFi Units or until such Earnout Units are earned in accordance with the Business Combination Agreement. With respect to distributions (other than tax distributions, which in respect of such Earnout Units are treated the same as any other OppFi Unit in accordance with the OppFi A&R LLCA) in relation to the Earnout Units, such distributions (other than tax distributions) are held back until the Earnout Units are earned. If an Earnout Unit is not earned, and therefore forfeited, related distributions are distributed to the other holders of units at such time. In connection with the Business Combination, the Company incurred direct and incremental costs of approximately $30.6 million, consisting primarily of investment banking, legal, accounting and other professional fees. Of these costs, $21.6 million were recorded as a reduction of additional paid-in capital in the accompanying consolidated balance sheets, $0.8 million were recorded as a prepaid expense and included in other assets in the accompanying consolidated balance sheets, and $8.2 million were expensed as professional fees in the accompanying consolidated statements of operations. As a result of the Business Combination, OppFi organized as a C corporation, owns an equity interest in OppFi-LLC in what is commonly referred to as an “Up-C” structure. OppFi-LLC is treated as a partnership for U.S. federal and state income tax purposes. Accordingly, for U.S. federal and state income tax purposes, all income, losses, and other tax attributes pass through to the members’ income tax returns, and no U.S. federal and state and local provision for income taxes has been recorded for these entities in the consolidated financial statements. As a result of the Up-C structure, noncontrolling interests are held by the Members who retained 88.2% of the economic ownership percentage of OppFi-LLC as of the Closing. The Company classifies the noncontrolling interests as a component of stockholders’ equity in the consolidated balance sheets. In connection with the Business Combination, OppFi entered into the TRA with the Members and the Members’ Representative. The TRA provides for payment to the Members of 90% of the U.S. federal, state and local income tax savings realized by the Company as a result of the increases in tax basis and certain other tax benefits related to the transactions contemplated under the Business Combination Agreement and the exchange of Retained OppFi Units for Class A Common Stock or cash. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Finance receivables at fair value: The components of installment finance receivables at fair value as of December 31, 2021 were as follows (in thousands): Unpaid principal balance of finance receivables - accrual $ 307,059 Unpaid principal balance of finance receivables - non-accrual 25,185 Unpaid principal balance of finance receivables $ 332,244 Finance receivables at fair value - accrual $ 369,576 Finance receivables at fair value - non-accrual 3,677 Finance receivables at fair value, excluding accrued interest and fees receivable 373,253 Accrued interest and fees receivable 10,637 Finance receivables at fair value $ 383,890 Difference between unpaid principal balance and fair value $ 41,009 The Company’s policy is to discontinue and reverse the accrual of interest income on installment finances receivables at the earlier of 60 days past due on a recency basis or 90 days past due on a contractual basis. As of December 31, 2021, the aggregate unpaid principal balance and fair value of installment finance receivables 90 days or more past due was $10.5 million and $1.5 million, respectively. Changes in the fair value of installment finance receivables at fair value for the year ended December 31, 2021 were as follows (in thousands): Balance at the beginning of the period $ 289,166 Originations of principal 581,412 Repayments of principal and recoveries (401,638) Accrued interest and fees receivable 2,727 Charge-offs, net (1) (103,385) Adjustment to fair value (1,817) Net change in fair value (1) 17,425 Balance at the end of the period $ 383,890 (1) Included in "Change in fair value of finance receivables" in the Consolidated Statements of Operations. Finance receivables at amortized cost, net: Prior to January 1, 2021, the Company carried all finance receivables at amortized cost, including accrued interest and fees, unamortized loan origination costs, and allowance for credit losses. On January 1, 2021, the Company elected the fair value option for its installment finance receivables. The Company did not elect the fair value option for its SalaryTap and OppFi Card finance receivables, which are carried at amortized cost. The components of finance receivables carried at amortized cost were as follows (in thousands): December 31, 2021 2020 Finance receivables $ 5,285 $ 255,943 Accrued interest and fees 24 7,910 Unearned annual fee income (286) — Unamortized loan origination costs — 13,421 Allowance for credit losses (803) (55,031) Finance receivables at amortized cost, net $ 4,220 $ 222,243 Changes in the allowance for credit losses on finance receivables for the years ended December 31 were as follows (in thousands): 2021 2020 2019 Beginning balance $ 55,031 $ 53,146 $ 27,117 Effects of adopting fair value option (55,031) — — Provisions for credit losses on finance receivables 929 81,619 99,389 Finance receivables charged off (126) (90,174) (78,882) Recoveries of charge offs — 10,440 5,522 Ending balance $ 803 $ 55,031 $ 53,146 Changes in the reserve for repurchase liability for third-party lender losses were as follows for the years ended December 31 (in thousands): 2021 2020 2019 Beginning balance $ 4,241 $ 4,978 $ 4,983 Effects of adopting fair value option (4,241) — — Provision for repurchase liabilities — 9,168 14,865 Finance receivables charged off — (10,755) (15,581) Recoveries of charge offs — 850 711 Ending balance $ — $ 4,241 $ 4,978 The Company released the reserve for repurchase liability for third-party lender losses on January 1, 2021 upon election of the fair value option for its installment finance receivables. As such, there was no reserve for repurchase liability for third-party losses as of January 1, 2021 and thereafter. The following is an assessment of the credit quality of finance receivables at amortized cost and presents the recency and contractual delinquency of the finance receivable portfolio as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Recency delinquency Contractual delinquency Recency delinquency Contractual delinquency Current $ 5,016 $ 4,993 $ 240,623 $ 220,438 Delinquency 30-59 days 152 171 7,760 12,574 60-89 days 102 104 7,560 9,852 90+ days 15 17 — 13,079 Total delinquency 269 292 15,320 35,505 Finance receivables $ 5,285 $ 5,285 $ 255,943 $ 255,943 In accordance with the Company’s income recognition policy, finance receivables in non-accrual status as of December 31, 2021 and 2020 was $0.1 million and $19.3 million, respectively. There were no finance receivables guaranteed by the Company under the CSO Program which were greater than 90 days past due as of December 31, 2021 and 2020, which had not already been repurchased by the Company and included in the totals above. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software consisted of the following (in thousands): December 31, 2021 December 31, 2020 Capitalized technology $ 34,586 $ 20,908 Furniture, fixtures and equipment 3,792 3,228 Leasehold improvements 979 862 Total property, equipment and software 39,357 24,998 Less accumulated depreciation and amortization (24,714) (14,440) Property, equipment and software, net $ 14,643 $ 10,558 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2021 December 31, 2020 Accrued payroll and benefits $ 11,779 $ 9,987 Accrual for services rendered and goods purchased 10,631 5,478 Deferred rent 2,513 2,128 Other 4,672 5,192 Total $ 29,595 $ 22,785 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following is a summary of the Company’s borrowings (in thousands): Purpose Borrower Borrowing Capacity December 31, 2021 December 31, 2020 Interest Rate as of December 31, 2021, Except as Noted Maturity Date Secured borrowing payable Opportunity Funding SPE II, LLC $ 38,500 $ 22,443 $ 16,025 15.00% — (1) Senior debt Revolving line of credit OppFi-LLC $ — $ — $ 5,000 LIBOR plus 2.50% (2) February 2022 Revolving line of credit Opportunity Funding SPE III, LLC 175,000 119,000 59,200 LIBOR plus 6.00% January 2024 Revolving line of credit Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC 75,000 45,900 24,222 LIBOR plus 7.25% April 2024 Revolving line of credit Opportunity Funding SPE VI, LLC 50,000 30,600 16,148 LIBOR plus 7.25% April 2023 Revolving line of credit Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC 45,000 7,500 12,506 LIBOR plus 3.85% February 2024 Total revolving lines of credit 345,000 203,000 117,076 Term loan, net OppFi-LLC 50,000 48,578 14,650 LIBOR plus 10.00% March 2025 Total senior debt $ 395,000 $ 251,578 $ 131,726 Subordinated debt - related party OppFi-LLC $ — $ — $ 4,000 14.00% (2) December 2023 Other debt OppFi-LLC $ — $ — $ 6,354 1.00% (3) April 2022 (1) Maturity date extended indefinitely until borrowing capacity is depleted (2) Interest rate as of December 31, 2020 and for the subsequent period until borrowings were repaid in March 2021 (3) Interest rate as of December 31, 2020 and for the subsequent period until loan was forgiven in September 2021 Secured borrowing payable: During 2017, Opportunity Funding SPE II, LLC entered into a preferred return agreement with Midtown Madison Management LLC. Per the terms of the agreement, the finance receivables are grouped into quarterly pools. Collections are distributed on a pro rata basis after the payout of expenses to back-up servicer, servicer and other relevant parties. This agreement is secured by the assets of Opportunity Funding SPE II, LLC. The receivables are transferred to Opportunity Funding SPE II, LLC and OppWin LLC by OppFi-LLC, which has provided representations and warranties in connection with such sale. The agreement is subject to various financial covenants. During 2018, the preferred return agreement was amended. Opportunity Funding SPE II, LLC sells a 97.5% interest of certain unsecured finance receivables to the unrelated third party. Per the revised agreement, the unrelated third party earns a preferred return of 15% and a performance fee after the preferred return has been satisfied. The initial agreement expired August 1, 2018 and was then extended for one year. The agreement provides for two consecutive options to renew the purchase period for eighteen months. The unrelated third party exercised the first option, which provides a $65.0 million purchase commitment by the unrelated third party. After satisfaction of the purchase commitment, the agreement provides for a third option for an additional $100.0 million purchase commitment. In May 2020, the preferred return agreement was amended. Midtown Madison Management LLC exercised the option, which provided an additional $100.0 million purchase commitment, resulting in a total $165.0 million purchase commitment by the unrelated third party. Prior to the expiration of the second option in December 2021, Midtown Madison Management LLC extended the purchase period indefinitely to the time at which Opportunity Funding SPE II, LLC purchases equal or exceed the purchase commitment. As of December 31, 2021 and 2020, $148.9 million and $79.8 million of finance receivables have been purchased with an active secured borrowing balance of $22.4 million and $16.0 million, respectively. Interest expense related to secured borrowings was $2.7 million, $2.3 million, and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $0.2 million in debt issuance costs related to secured borrowings. Amortized debt issuance costs related to secured borrowings were $29 thousand, $0.1 million, and $0.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, there were no unamortized debt issuance costs related to secured borrowings. As of December 31, 2020, the remaining balance of unamortized debt issuance costs related to secured borrowings was $29 thousand. Senior debt: On August 13, 2018, OppFi-LLC entered into a corporate credit agreement with BMO Harris Bank N.A., which provided a maximum available amount of $10.0 million. Interest was payable monthly. The facility was secured by OppFi-LLC’s assets and certain brokerage assets made available by the Schwartz Capital Group (SCG), a related party. The agreement was subject to various financial covenants. On August 6, 2020, the corporate credit agreement was amended, and the maturity date was extended to February 2022. On March 23, 2021, the borrowings under this revolving credit agreement were paid in full. Subsequent to repayment, OppFi-LLC terminated the revolving credit agreement. Interest expense related to the revolving credit agreement totaled $35 thousand, $0.2 million and $0.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $0.3 million in debt issuance costs in connection with this facility. For the years ended December 31, 2021, 2020 and 2019, amortized debt issuance costs were $21 thousand, $24 thousand, and $0.2 million, respectively. As of December 31, 2021, there were no unamortized debt issuance costs associated with the facility. As of December 31, 2020, the remaining balance of unamortized debt issuance costs associated with the facility was $21 thousand. On January 23, 2018, Opportunity Funding SPE III, LLC entered into a revolving line of credit agreement with Ares Agent Services, L.P. that provides maximum borrowings of $75.0 million. Interest is payable monthly. Borrowings are secured by the assets of Opportunity Funding SPE III, LLC. OppFi-LLC provides certain representations and warranties. The line of credit agreement is subject to a borrowing base threshold and various financial covenants, including maintaining a minimum tangible net worth and maximum senior debt to equity. On January 31, 2020, the revolving line of credit agreement was amended to increase the aggregate commitment to $175.0 million. The amendment also changed the interest rate to one-month LIBOR plus 6% with a 2% LIBOR floor. The agreement matures in January 2024. Interest expense related to this facility was $7.3 million, $7.4 million, and $11.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $2.1 million in debt issuance costs in connection with this facility. Amortized debt issuance costs were $0.7 million, $0.7 million, and $0.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the remaining balance of unamortized debt issuance costs associated with the facility was $0.8 million and $1.5 million, respectively. In April 2019, Opportunity Funding SPE V, LLC entered into a revolving line of credit agreement with Midtown Madison Management LLC (“OppFi-LLC Midtown Credit Agreement”) that provides maximum borrowings of $75.0 million. Interest is payable monthly. Borrowings are secured by the assets of Opportunity Funding SPE V, LLC. OppFi-LLC provides certain representations and warranties related to the debt. The line of credit agreement is subject to a borrowing base and various financial covenants, including maintaining a minimum tangible net worth and restrictions related to dividend payments. On October 13, 2021, OppFi-LLC, certain of the OppFi Subsidiaries and the other credit parties and guarantors thereto entered into Amendment No. 6 to Revolving Credit Agreement and Other Credit Documents (“Atalaya Amendment”), which amends the OppFi-LLC Midtown Credit Agreement. The Atalaya Amendment amends the OppFi-LLC Midtown Credit Agreement to, among other things, add Opportunity Funding SPE VII, LLC as an additional borrower under the OppFi-LLC Midtown Credit Agreement, permit the pledge of OppFi Card receivables under the OppFi-LLC Midtown Credit Agreement, and extend the maturity date of the OppFi-LLC Midtown Credit Agreement to April 15, 2024. Interest expense related to this facility was $3.5 million, $3.4 million, and $2.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $1.5 million in debt issuance costs in connection with this facility. Amortized debt issuance costs were $0.5 million, $0.4 million, and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the remaining balance of unamortized debt issuance costs associated with this facility was $0.4 million and $0.5 million, respectively. In April 2019, Opportunity Funding SPE VI, LLC entered into a revolving line of credit agreement with Ares Agent Services, L.P. that provides maximum borrowings of $50.0 million. Interest is payable monthly. Borrowings are secured by the assets of Opportunity Funding SPE VI, LLC. OppFi-LLC provides certain representations and warranties related to the debt. The line of credit agreement is subject to a borrowing base and various financial covenants, including maintaining a minimum tangible net worth and restrictions related to dividend payments. Interest expense related to this facility was $2.4 million, $2.3 million, and $1.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $0.9 million in debt issuance costs in connection with this facility. Amortized debt issuance costs were $0.3 million, $0.3 million, and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020 , the remaining balance of unamortized debt issuance costs associated with this facility was $0.1 million and $0.4 million, respectively. In August 2019, Opportunity Funding SPE IV, LLC entered into a revolving line of credit agreement with BMO Harris Bank N.A. that provides maximum borrowings of $25.0 million. Interest is payable monthly. Borrowings are secured by the assets of Opportunity Funding SPE IV, LLC. OppFi-LLC provides certain representations and warranties related to the debt, as well as an unsecured guaranty. The line of credit agreement is subject to a borrowing base and various financial covenants, including maintaining a minimum tangible net worth and restrictions related to dividend payments. On September 30, 2021, the revolving line of credit agreement was amended to increase the aggregate commitment to $45.0 million. The amended agreement added SalaryTap Funding SPE, LLC as an additional borrower to the facility. SalaryTap Funding SPE, LLC pledges SalaryTap receivables as eligible collateral. The amendment also changed the interest rate from LIBOR plus 4.25% to LIBOR plus 3.85% with a 0.4% LIBOR floor, and the amended agreement matures in February 2024. Interest expense related to this facility was $0.4 million, $0.5 million, and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $0.9 million in debt issuance costs in connection with this facility. Amortized debt issuance costs were $0.4 million, $0.2 million, and $0.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and 2020, the remaining balance of unamortized debt issuance costs associated with this facility was $0.3 million and $0.1 million, respectively. In November 2018, OppFi-LLC entered into a $25.0 million senior secured multi-draw term loan agreement with Midtown Madison Management LLC (“OppFi-LLC Midtown Term Loan Agreement”), which is secured by a senior secured claim on OppFi-LLC’s assets and a second lien interest in the receivables owned by Opportunity Funding SPE III, LLC, Opportunity Funding SPE V, LLC, and Opportunity Funding SPE VI, LLC. Interest is payable monthly. The loan agreement is subject to various financial covenants. Per the terms of the loan agreement, OppFi-LLC had issued warrants to the lender. In April 2020, OppFi-LLC exercised an option to increase the facility commitment amount to $50.0 million. On March 23, 2021, the senior secured multi-draw term loan agreement was amended to decrease the interest rate from LIBOR plus 14% to LIBOR plus 10% and extend the maturity date to March 23, 2025. On March 30, 2021, OppFi-LLC drew the remaining $35.0 million available commitment. As of December 31, 2021, the outstanding balance of $50.0 million was net of unamortized debt issuance costs of $1.4 million. There was no unamortized discount as of December 31, 2021. As of December 31, 2020, the outstanding balance of $15.0 million was net of unamortized discount of $19 thousand and unamortized debt issuance costs of $0.3 million. Interest expense related to this facility was $5.3 million, $2.6 million, and $2.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Additionally, the Company has capitalized $2.3 million in debt issuance costs in connection with this facility. Amortized debt issuance costs were $0.4 million, $0.2 million, and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Subordinated debt - related party: OppFi-LLC previously had an unsecured line of credit agreement with SCG, a related party, with a maximum available amount of $4.0 million. Interest due on this facility is paid quarterly, and the outstanding balance is due at maturity. Subordinated debt is subject to the same debt covenants as senior debt facilities. On March 30, 2021, the borrowings under this unsecured line of credit agreement were paid in full. Interest expense related to this related party transaction was $0.1 million, $0.6 million, and $0.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Other debt: On April 13, 2020, OppFi-LLC obtained an unsecured loan in the amount of $6.4 million from BMO Harris Bank N.A. in connection with the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP Loan”). Pursuant to the Paycheck Protection Program, all or a portion of the PPP Loan was forgivable if OppFi used the proceeds of the PPP Loan for its payroll costs and other expenses in accordance with the requirements of the Paycheck Protection Program. OppFi-LLC used the proceeds of the PPP Loan for payroll costs and other covered expenses. On November 14, 2020, OppFi-LLC submitted the forgiveness application to the SBA. On September 13, 2021, the Company was notified that the SBA had forgiven repayment of the entire PPP Loan, which consisted of $6.4 million in principal and $0.1 million of accrued interest. The Company recorded the entire amount of the forgiven principal and accrued interest as other income in its statement of operations during the year ended December 31, 2021. As of December 31, 2021, there was no outstanding balance for the PPP Loan. The SBA reserves the right to audit any PPP Loan, for eligibility and other criteria, regardless of size. These audits may occur after forgiveness has been granted. In accordance with the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), all borrowers are required to maintain their PPP loan documentation for six years after the PPP Loan was forgiven and to provide that documentation to the SBA upon request. As of December 31, 2021, required payments for all borrowings, excluding secured borrowing and revolving lines of credit, for each of the next five years are as follows (in thousands): Year Amount 2022 $ — 2023 — 2024 — 2025 50,000 2026 — Total $ 50,000 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants Warrant units: In November 2018, in conjunction with OppFi-LLC entering into a senior secured multi-draw term loan, OppFi-LLC issued warrant units to the lender. The fair value of the warrant units was estimated using an option pricing model that used the following assumptions: December 31, 2020 Expected term 3 years Volatility 52.0 % Discount for lack of marketability 45.0 % Risk free rate 0.2 % The total proceeds were allocated on a relative fair value basis to the two instruments issued in conjunction, and the amount allocated to the warrant units also represented a discount to the debt, which is being amortized into interest expense over the term of the agreement. As of December 31, 2020, the fair value of the warrant unit liability was $1.3 million and is included in accrued expenses in the consolidated balance sheets. Prior to the Closing, the lender exercised the warrant units; accordingly, the warrant unit liability was remeasured to fair value. The fair value of the warrant unit liability was $5.5 million and was reclassified to additional paid-in capital. After the lender exercised the warrant units, there were no warrant units outstanding thereafter. Public Warrants: As of December 31, 2021, there were 11,887,500 Public Warrants outstanding. Each whole Public Warrant entitles the registered holder to purchase one whole share of Class A Common Stock at a price of $11.50 per share. Pursuant to the Warrant Agreement, a holder of Public Warrants may exercise its warrants only for a whole number of shares of Class A Common Stock. This means that only a whole warrant may be exercised at any given time by a warrant holder. The Public Warrants will expire on July 20, 2026, five years after the Closing Date, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. The Company may redeem the Public Warrants under the following conditions: • In whole and not in part; • At a price of $0.01 per warrant; • Upon not less than 30 days’ prior written notice of redemption (“30-day redemption period”) to each warrant holder; and • If, and only if, the reported last sale price of the Class A Common Stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. The last of the redemption criterion discussed above prevent a redemption call unless there is at the time of the call a significant premium to the exercise price of the Public Warrants. If the foregoing conditions are satisfied and the Company issues a notice of redemption of the Public Warrants, each warrant holder will be entitled to exercise its warrant prior to the scheduled redemption date. However, the price of the Class A Common Stock may fall below the $18.00 redemption trigger price (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) as well as the $11.50 warrant exercise price after the redemption notice is issued. Private Placement Warrants: As of December 31, 2021, there were 3,451,937 Private Placement Warrants outstanding, all of which are non-redeemable and may be exercised on a cashless basis so long as they continue to be held by their initial holders or their permitted transferees. The Private Placement Warrants are comprised of 2,539,437 warrants to purchase Class A Common Stock at $11.50 per share (“$11.50 Exercise Price Warrants”) and 912,500 warrants to purchase Class A Common Stock at $15.00 per share (“$15 Exercise Price Warrants”). The $11.50 Exercise Price Warrants expire simultaneously with the Public Warrants, except for certain of the $11.50 Exercise Price Warrants held by underwriters in the IPO (“Underwriter Warrants”) that expire on September 29, 2025 so long as they continue to be held by their initial holders or their permitted transferees. The $15 Exercise Price Warrants expire on July 20, 2031, ten years after the Closing Date, at 5:00 p.m., New York City time, so long as they continue to be held by their initial holders or their permitted transferees, and otherwise expire simultaneously with the Public Warrants. |
Stockholders_ Equity_Members_ E
Stockholders’ Equity/Members’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity/Members’ Equity | Stockholders’ Equity/Members’ Equity Prior to the Business Combination, FGNA was a Special Purpose Acquisition Company or a “blank check company” defined as a development stage company formed for the sole purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. As of the Closing, OppFi held a 11.8% ownership interest in OppFi-LLC. Immediately subsequent to the Closing, a lender exchanged 486,852 shares of previously issued Class V Voting Stock shares for an equal number of Class A Common Stock shares. Additionally, other holders of Class V Voting Stock exchanged 161,767 shares for an equal number of Class A Common Stock shares from the Closing Date through December 31, 2021. OppFi issued 5,175 shares of Class A Common Stock attributed to vesting of restricted stock units from the Closing Date through December 31, 2021. As of December 31, 2021, OppFi held a 12.4% ownership interest in OppFi-LLC. Prior to the Business Combination, OppFi-LLC had two classes of partnership interests, preferred units and profit unit interests, which were recapitalized as OppFi Units in connection with the adoption by the Members of the OppFi A&R LLCA immediately prior to the Closing. The preferred units are reflected as OppFi-LLC’s historical members’ equity in the consolidated balance sheets. Preferred stock: OppFi is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share. OppFi’s Board of Directors has the authority to issue shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time. As of December 31, 2021, there were no shares of preferred stock issued and outstanding. Class A Common Stock: OppFi is authorized to issue 379,000,000 shares of Class A Common Stock with a par value of $0.0001 per share. Holders of Class A Common Stock are entitled to one vote for each share. Additionally, Class A Common Stock is defined as “Economic Common Stock,” and holders are entitled to receive dividends and other distributions (payable in cash, property, or capital stock of the Company) when, as and if declared thereon by OppFi’s Board of Directors from time to time out of any assets or funds of the Company legally available therefor and share equally on a per share basis in such dividends and distributions. As of December 31, 2021, there were 13,631,484 shares of Class A Common Stock issued and outstanding. Class B Common Stock: OppFi is authorized to issue 6,000,000 shares of Class B Common Stock with a par value of $0.0001 per share. Holders of Class B Common Stock are entitled to one vote for each share. Class B Common Stock is defined as Economic Common Stock and holders are entitled to receive the same dividends and other distributions as Class A Common Stock. As of December 31, 2021, there were no shares of Class B Common Stock issued and outstanding. All shares of Class B Common Stock were converted into Class A Common Stock at the Closing. Class V Voting Stock: OppFi is authorized to issue 115,000,000 shares of Class V Voting Stock with a par value of $0.0001 per share. Class V Voting Stock represents voting, non-economic interests in OppFi. Holders of Class V Voting Stock are entitled to one vote for each share. As of December 31, 2021, there were 96,338,474 shares of Class V Voting Stock issued and outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On July 20, 2021, the Company established the OppFi Inc. 2021 Equity Incentive Plan (“Plan”), which provides for the grant of awards in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards, and other stock-based awards to employees, non-employee directors, officers, and consultants. As of December 31, 2021, the maximum aggregate number of shares of Class A Common Stock that may be issued under the Plan shall be equal to 11,500,000 shares. The maximum aggregate number of shares is subject to annual increases beginning on January 1, 2022 and continuing on the first day of each subsequent fiscal year through and including the ten Stock options: Under the terms of the Plan, incentive stock options must have an exercise price at or above the fair market value of the stock on the date of the grant. Stock options granted have service-based vesting conditions only. Stock options generally vest over four years with 25% of stock options vesting on the first anniversary of the grant and the remaining 75% vesting quarterly over the remaining 36 months. Option holders have a 10-year period to exercise the options before they expire. Forfeitures are recognized during the period in which they occur. A summary of the Company’s stock option activity for the year ended December 31, 2021 is as follows: Number of Common Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2020 — $ — — $ — Granted 5,600,000 15.23 — — Exercised — — — — Forfeited (2,225,000) 15.23 — — Outstanding as of December 31, 2021 3,375,000 $ 15.23 9.60 $ — Vested and exercisable as of December 31, 2021 — $ — 0.0 $ — Compensation expense is recorded on a straight-line basis over the vesting period, which is the requisite service period, beginning on the grant date. The compensation expense is based on the fair value of each option grant using the Black-Scholes option pricing model and is recognized as salaries and employee benefits expense in the consolidated statements of operations and an increase to additional paid-in capital. For the year ended December 31, 2021, the Company recognized stock-based compensation of $0.9 million related to stock options. As of December 31, 2021, the Company had unrecognized stock-based compensation of $6.1 million related to unvested stock options that is expected to be recognized over an estimated weighted-average period of approximately 3.5 years. The weighted-average grant date fair value of stock options granted during the year ended December 31, 2021 was $2.45. The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model based on the following assumptions: Volatility 32.50 % Risk-free rate (low) 0.91% - 1.25% Expected term (years) 5.1 - 6.1 years Dividend yield 0.00 % Volatility is the measure by which the Company’s stock price is expected to fluctuate during the expected life of the stock options. Due to the lack of company-specific market data, volatility is based on an estimate of expected volatilities of a representative group of publicly traded companies. Risk-free rate is based on U.S. Treasury Note yields. Expected term represents the weighted-average period over which the granted stock options are expected to remain outstanding. Dividend yield is based on the Company’s history and expectation of dividend payments. Restricted stock units: Under the terms of the Plan, the Company may grant awards to employees, officers and directors in the form of restricted stock units (“RSUs”), which collectively represent contingent rights to receive shares of Class A Common Stock. The RSUs granted to employees and officers generally vest over four years with 25% of the RSUs vesting on the first anniversary of the grant and the remaining 75% vesting quarterly over the remaining 36 months, and the RSUs granted to directors vest on the earlier of the one-year anniversary of grant or the date of the Company’s next annual meeting of stockholders. A summary of the Company’s RSU activity for the year ended December 31, 2021 is as follows: Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested as of December 31, 2020 — $ — Granted 2,109,320 7.59 Vested (11,337) 7.69 Forfeited (279,453) 7.69 Unvested as of December 31, 2021 1,818,530 $ 7.58 If the settlement date with respect to any Class A Common Stock shares issuable upon vesting of RSUs would otherwise occur on a day on which the sale of such shares would violate the provisions of the Company’s Trading Compliance Policy, then the settlement date shall be deferred until the next trading day on which the sale of such shares would not violate the Trading Compliance Policy. In any event, the settlement date shall be no later than the fifteenth day of the third calendar month following the year in which such RSUs vest. In adhering to the Company’s Trading Compliance Policy, there were 6,162 vested RSUs not settled as of December 31, 2021. The fair value of each RSU is based on the fair value of the Company’s Class A Common Stock on the date of grant. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the awards, and forfeitures are recognized during the period in which they occur. For the year ended December 31, 2021, the Company recognized stock-based compensation of $1.5 million related to RSUs. As of December 31, 2021, total unrecognized compensation expense related to RSUs was $12.2 million, which will be recognized over a weighted-average vesting period of approximately 3.6 years. Performance stock units: Under the terms of the Plan, the Company may grant awards to employees, officers, and directors in the form of performance stock units (“PSUs”), which collectively represent the contingent rights to receive shares of Class A Common Stock based on the achievement of pre-established performance targets over the applicable performance period. PSUs generally vest over four years, provided the achievement of specified performance targets. A summary of the Company’s PSU activity for year ended December 31, 2021 is as follows: Number of Performance Stock Units Weighted-Average Grant Date Fair Value Unvested as of December 31, 2020 — $ — Granted 99,868 7.69 Vested — — Forfeited (20,961) 7.69 Unvested as of December 31, 2021 78,907 $ 7.69 The fair value of each PSU is based on the fair value of the Company’s Class A Common Stock on the date of grant. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the awards based on management’s determination of the probable achievement of the pre-established performance targets. If necessary, the Company adjusts the expense recognized to reflect the actual vested shares following the final determination of the achievement of the pre-established performance targets. PSU forfeitures are recognized during the period in which they occur. For the year ended December 31, 2021, the Company recognized stock-based compensation of $0.1 million related to PSUs. As of December 31, 2021, total unrecognized compensation expense related to PSUs was $0.5 million, which will be recognized over a weighted-average vesting period of approximately 3.8 years. Employee Stock Purchase Plan: On July 20, 2021, the Company established the OppFi Inc. 2021 Employee Stock Purchase Plan (“ESPP”). The ESPP permits eligible employees to contribute up to 10% of their compensation, not to exceed the IRS allowable limit, to purchase shares of the Company’s Class A Common Stock during six month offerings. Eligible employees will purchase the shares at a price per share equal to the lesser of 85% of the fair market value of the Company’s Class A Common Stock on the first trading day of the offering period or the last trading day of the offering period. The offering periods begin each January 1 and July 1, with the initial offering period beginning on January 1, 2022. As of December 31, 2021, the maximum aggregate number of shares of Class A Common Stock that may be issued under the ESPP was 1,200,000 and may consist of authorized but unissued or reacquired shares of Class A Common Stock. The maximum aggregate number of shares of Class A Common Stock that may be issued under the ESPP shall be cumulatively increased on January 1, 2022 and on each subsequent January 1, through and including January 1, 2030, by a number of shares equal to the smallest of (a) one percent of the number of shares of Class A Common Stock issued and outstanding on the immediately preceding December 31, (b) 2,400,000 shares, or (c) an amount determined by the Board of Directors. As of December 31, 2021, no shares of the Company’s Class A Common Stock have been purchased under the ESPP. Profit unit interests: Prior to the Business Combination, OppFi-LLC issued profit unit interests, which were recapitalized as OppFi Units in connection with the adoption by the Members of the OppFi A&R LLCA immediately prior to the Closing. Total profit interest compensation expense for the years ended December 31, 2021, 2020 and 2019 was $0.5 million, $0.1 million, and $0.1 million respectively. The compensation expense accounted for all vested units based on the following assumptions: Expected term 3 years Volatility 68.0 % Discount for lack of marketability 45.0 % Risk free rate 0.2 % The following table summarizes the Company’s profit unit interests activity: Avg Fair Value Units at Grant Date Outstanding at December 31, 2018 9,279,761 $ 0.04 Granted 619,597 0.22 Forfeited (100,640) 0.17 Outstanding at December 31, 2019 9,798,718 0.05 Granted 2,413,833 0.17 Forfeited (10,416) 0.03 Outstanding at December 31, 2020 12,202,135 0.08 Granted — — Forfeited (591,078) 0.10 Exchanged in reverse recapitalization (11,611,057) 0.08 Outstanding at December 31, 2021 — $ — The following table summarizes the Company’s non-vested units activity: Avg Fair Value Units at Grant Date Non-vested units at December 31, 2018 4,529,290 $ 0.06 Granted 619,597 0.22 Vested (1,581,500) 0.04 Forfeited (100,640) 0.17 Non-vested units at December 31, 2019 3,466,747 0.10 Granted 2,413,833 0.17 Vested (1,131,831) 0.13 Forfeited (10,416) 0.03 Non-vested units at December 31, 2020 4,738,333 0.12 Granted — — Vested (2,933,300) 0.08 Forfeited (591,078) 0.10 Exchanged in reverse recapitalization (1,213,955) 0.22 Non-vested units at December 31, 2021 — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes OppFi-LLC is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, OppFi-LLC is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by OppFi-LLC is passed through to and included in the taxable income or loss of its members, including OppFi, on a pro rata basis. OppFi is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of OppFi-LLC, as well as any stand-alone income or loss generated by OppFi. For the year ended December 31, 2021, OppFi recorded an income tax expense of $0.3 million and reported consolidated income before taxes of $90.1 million, resulting in a 0.34% effective income tax rate. Prior to the Closing Date, OppFi-LLC was classified as a partnership for income tax purposes, and was therefore not subject to federal income tax and did not record an expense for income taxes. The following table summarizes provision for income taxes for the years ended December 31 (in thousands): 2021 2020 2019 Federal income taxes: Current $ (4) $ — $ — Deferred (225) — — State income taxes: Current 582 — — Deferred (42) — — Provision for income taxes $ 311 $ — $ — The following table summarizes the differences between the effective income tax rate and the federal statutory income tax rate of 21% for the years ended December 31 (dollars in thousands): 2021 2020 2019 Amount Percentage Amount Percentage Amount Percentage Federal income taxes at statutory rate $ 18,922 21.00 % $ — — $ — — State tax expense, net of federal income tax benefit 549 0.61 % — — — — Fair market value adjustment of warrants (5,545) (6.16) % — — — — Effect of flow-through entity (13,615) (15.11) % — — — — Total $ 311 0.34 % $ — — $ — — OppFi’s effective income tax rate for the year ended December 31, 2021 differs from the federal statutory income tax rate of 21% primarily due to the noncontrolling interest in the Up-C partnership structure, warrant fair market value fluctuations, and state income taxes. Deferred tax assets and liabilities are determined based on the difference between financial statement and tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The components of deferred taxes were as follows (in thousands): December 31, 2021 2020 Investment in partnership $ 16,951 $ — Tax receivable agreement liability 5,583 — Net operating loss 1,609 — Intangibles 618 — Stock compensation 603 — Other 229 — Deferred tax asset $ 25,593 $ — As of December 31, 2021, OppFi had approximately $7.7 million of federal net operating loss carryovers and $4.9 million of state net operating loss carryovers. The entirety of the federal net operating loss carryover has no expiration date and the state net operating loss carryovers will expire in varying amounts beginning in 2027. At the time of the Business Combination, OppFi recorded a deferred tax asset of $18.9 million with an offset to additional paid-in capital for the difference between the book value and the tax basis of OppFi’s investment in OppFi-LLC. As of December 31, 2021, the related deferred tax asset was $17.0 million. The decrease was due to additional differences between the book and taxable income in 2021. Based on the Company’s cumulative earnings history and forecasted future sources of taxable income, the Company believes that it will be able to realize the deferred tax assets in the future. As the Company reassesses this position in the future, changes in cumulative earnings history, excluding non-recurring charges, or changes to forecasted taxable income may alter this expectation and may result in an increase in the valuation allowance and an increase in the effective tax rate. The CARES Act was enacted on March 27, 2020 in the United States to provide emergency assistance to individuals and businesses affected by the COVID-19 pandemic. The CARES Act includes temporary changes to both income and non-income based tax laws. For the year ended December 31, 2021, the impact of the CARES Act was immaterial to the Company’s tax provision. However, under the CARES Act, the Company deferred the employer portion of payroll tax payments through December 31, 2021. Future regulatory guidance under the CARES Act or additional legislation enacted by Congress in connection with the COVID-19 pandemic could impact the Company’s tax provision in future periods. In connection with the Business Combination, the Company entered into the TRA, which provides for payment to the Members of 90% of the U.S. federal, state and local income tax savings realized by the Company as a result of the increases in tax basis and certain other tax benefits related to the transactions contemplated under the Business Combination Agreement and the exchange of Retained OppFi Units for Class A Common Stock or cash. The Company has in effect an election under Section 754 of the Internal Revenue Code and will have such an election effective for each taxable year in which a redemption or exchange (including deemed exchange) of OppFi-LLC interests for shares of Class A Common Stock or cash occurs. The Company will retain the benefit of the remaining 10%. For the period from the Closing Date through December 31, 2021, the TRA liability increased by $0.3 million related to exchanges that occurred during that period. There were no unrecognized tax benefits as of December 31, 2021 or December 31, 2020. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. |
Interest and Loan Related Incom
Interest and Loan Related Income, Net | 12 Months Ended |
Dec. 31, 2021 | |
Interest and Fee Income, Loans and Leases [Abstract] | |
Interest and Loan Related Income, Net | Interest and Loan Related Income, Net The following table summarizes interest and loan related income, net, for the years ended December 31 (in thousands): 2021 2020 2019 Interest and loan related income, gross $ 349,029 $ 322,165 $ 267,166 Amortization of loan origination costs — (31,940) (38,968) Interest and loan related income, net $ 349,029 $ 290,225 $ 228,198 |
Interest Expense and Amortized
Interest Expense and Amortized Debt Issuance Costs | 12 Months Ended |
Dec. 31, 2021 | |
Interest Expense And Amortized Debt Issuance Costs [Abstract] | |
Interest Expense and Amortized Debt Issuance Costs | Interest Expense and Amortized Debt Issuance Costs The following table summarizes interest expense and amortized debt issuance costs for the years ended December 31 (in thousands): 2021 2020 2019 Interest expense $ 21,809 $ 18,722 $ 20,091 Amortized debt issuance costs 2,310 1,945 1,785 Interest expense and amortized debt issuance costs $ 24,119 $ 20,667 $ 21,876 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value on a nonrecurring basis : The Company has no assets or liabilities measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Fair value measurement on a recurring basis : Effective January 1, 2021, the Company elected the fair value option to account for its installment finance receivables and measures the installment finance receivables at fair value on a recurring basis. Prior to the Business Combination, OppFi-LLC only had warrant units that were measured at fair market value on a recurring basis. Subsequent to the Business Combination, the Company measures the Public Warrants and Private Placement Warrants at fair value on a recurring basis. The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2021 and 2020 are as follows (in thousands): Carrying Value Fair Value Measurements December 31, 2021 Level 1 Level 2 Level 3 Financial assets: Finance receivables at fair value, excluding accrued interest and fees receivable (1) $ 373,253 $ — $ — $ 373,253 Financial liabilities: Warrant liability - Public Warrants (2) 8,083 8,083 — — Warrant liability - Private Placement Warrants (3) 3,157 — — 3,157 Carrying Value Fair Value Measurements December 31, 2020 Level 1 Level 2 Level 3 Financial liabilities: Warrant units (4) $ 1,309 $ — $ — $ 1,309 During the years ended December 31, 2021 and 2020, there were no transfers of assets or liabilities in or out of Level 3 fair value measurements. (1) The Company primarily estimates the fair value of its installment finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. The following table presents quantitative information about the significant unobservable inputs used for the Company’s installment finance receivables fair value measurements as of December 31, 2021: December 31, 2021 Interest rate on finance receivables 147.60 % Discount rate 21.80 % Servicing cost* 5.00 % Remaining life 0.62 years Default rate* 17.70 % Accrued interest* 3.20 % Prepayment rate* 21.00 % *Stated as a percentage of finance receivables (2) The fair value measurement for the Public Warrants is categorized as Level 1 due to the use of an observable market quote in an active market under the ticker OPFI WS. (3) The fair value of the Private Placement Warrants is measured using a Monte Carlo simulation; accordingly, the fair value measurement for the Private Placement Warrants is categorized as Level 3. The following table presents the significant assumptions used in the simulation at December 31, 2021 and July 20, 2021, the Closing Date: December 31, 2021 July 20, 2021 Input $11.50 Exercise $15 Exercise $11.50 Exercise $15 Exercise Risk-free interest rate 1.19 % 1.50 % 0.69 % 1.23 % Expected term (years) 4.6 9.6 5.0 10.0 Expected volatility 48.40 % 48.40 % 36.50 % 36.00 % Exercise price $ 11.50 $ 15.00 $ 11.50 $ 15.00 Fair value of warrants $ 0.74 $ 1.40 $ 2.80 $ 3.50 The following table presents the changes in the fair value of the warrant liability - Private Placement Warrants (in thousands): $11.50 Exercise $15 Exercise Total Fair value as of December 31, 2020 $ — $ — $ — Reverse recapitalization 7,110 3,194 10,304 Change in fair value (5,231) (1,916) (7,147) Fair value as of December 31, 2021 $ 1,879 $ 1,278 $ 3,157 (4) The estimated fair value of the warrant units is calculated using an option pricing model. The resulting fair value measurement is categorized as Level 3. Upon closing of the Business Combination, the lender exercised the warrant units and the liability was reclassified to additional paid in capital. As such, there is no warrant unit liability at December 31, 2021. For the years ended December 31, 2021, 2020 and 2019, warrant expense was $4.2 million, $1.2 million, and $0.1 million, respectively. Warrant expense is included in general, administrative, and other in the consolidated statements of operations. The following table presents the change in the fair value of the warrant units (in thousands): Fair value as of December 31, 2019 $ 112 Change in fair value 1,197 Fair value as of December 31, 2020 1,309 Change in fair value 4,208 Warrant units exercised (5,517) Fair value as of December 31, 2021 $ — Financial assets and liabilities not measured at fair value : The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy as of December 31, 2021 and 2020 (in thousands): Carrying Value Fair Value Measurements December 31, 2021 Level 1 Level 2 Level 3 Assets: Cash $ 25,064 $ 25,064 $ — $ — Restricted cash 37,298 37,298 — — Accrued interest and fees receivable 10,637 10,637 — — Finance receivables at amortized cost, net 4,220 — — 4,220 Liabilities: Secured borrowing payable 22,443 — — 22,443 Senior debt, net 251,578 — — 251,578 Carrying Value Fair Value Measurements December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash $ 25,601 $ 25,601 $ — $ — Restricted cash 20,056 20,056 — — Finance receivables at amortized cost, net 222,243 — — 287,437 Liabilities: Reserve for repurchase liability 4,241 — — 4,241 Secured borrowing payable 16,025 — — 16,025 Senior debt, net 131,726 — — 131,726 Subordinated debt - related party 4,000 — — 4,000 Other debt 6,354 — — 6,354 |
Commitments, Contingencies and
Commitments, Contingencies and Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Commitments Contingencies And Related Party Transactions [Abstract] | |
Commitments, Contingencies and Related Party Transactions | Commitments, Contingencies and Related Party Transactions Commitment: The Company leases its office facilities under a non-cancelable operating lease agreement with an unrelated party. On November 26, 2019, the Company amended the lease agreement to rent additional office space. The amendment reduced the required deposit of a letter of credit from $1.5 million to $1.0 million, which would be paid to the lessor in the event of default. On June 29, 2021, the required deposit of a letter of credit associated with the agreement was increased to $1.8 million. As of December 31, 2021 and 2020, there were no outstanding balances on the letter of credit. The amendment also extended the expiration date of the lease to September 2030. Rent expense, which is included in occupancy expense in the consolidated statements of operations, totaled $3.8 million, $3.1 million, and $2.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. Future minimum lease payments as of December 31, 2021 are as follows (in thousands): Year Amount 2022 $ 2,271 2023 2,339 2024 2,410 2025 2,482 2026 2,557 Thereafter 10,283 Total $ 22,342 Legal contingencies: Due to the nature of its business activities, the Company is subject to extensive regulations and legal actions and is currently involved in certain legal and regulatory matters, which arise in the normal course of business. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal and regulatory matters when those matters present loss contingencies which are both probable and reasonably estimable. The Company has received inquiries from certain agencies and states on its lending compliance, the validity of the bank partnership model, and its ability to facilitate the servicing of bank originated loans. Management is confident that its lending practices and the bank partnership structure, in addition to the Company’s technologies, services, and overall relationship with its bank partners, complies with state and federal laws. However, the inquiries are still in process and the outcome is unknown at this time, including an ongoing matter involving the California Department of Financial Protection and Innovation. See Note 19 for additional information. Except as described below, management does not believe that the resolution of any currently pending legal and regulatory matters will have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. On November 18, 2021, the Company entered into a Consent Judgement and Order (“Settlement”) with the Attorney General of the District of Columbia (“District”) to resolve all matters in a dispute related to the action previously filed against the Company by the District (“Action”). The Company denies the allegations in the Action and denies that it has violated any law or engaged in any deceptive or unfair practices. The Action was resolved to avoid the expense of protracted litigation. As part of the Settlement, the Company agreed to, among other things, refrain from certain business activities in the District of Columbia, pay $0.3 million to the District of Columbia and provide refunds totaling $1.5 million to certain District of Columbia consumers. As of December 31, 2021, unpaid refunds totaled $1.5 million, which is included in accrued expenses on the consolidated balance sheets. Related party transactions: OppFi-LLC previously had an unsecured line of credit agreement with SCG with a maximum available amount of $4.0 million, which was paid in full on March 30, 2021. Interest expense related to this related party transaction was $0.1 million, $0.6 million, and $0.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. In August 2020, OppFi-LLC entered into a Management Fee Agreement (“Management Fee Agreement”) with SCG. Pursuant to the terms of the Management Fee Agreement, SCG provided board and advisory services. Effective upon the Closing, OppFi-LLC terminated the Management Fee Agreement and incurred $3.0 million in transaction costs, which has been offset against additional paid-in capital in the consolidated balance sheets. For the years ended December 31, 2021 and 2020, management fees under the Management Fee Agreement totaled $0.4 million and $0.7 million, respectively. In connection with the Business Combination, OppFi entered into the TRA with the Members. Severance agreements: The Company entered into Severance Agreements and General Releases (“Severance Agreements”) with the Company’s former Chief Executive Officer and other key employees. In connection with these Severance Agreements, the Company agreed to, among other things, pay certain severance benefits for one year. As of December 31, 2021, $1.3 million in severance benefits remained unpaid, which is included in accrued expenses on the consolidated balance sheets. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of finance receivables. As of December 31, 2021, consumers living primarily in Florida, Texas and California made up approximately 14%, 14%, and 11%, respectively, of the gross amount of the Company’s portfolio of finance receivables. As of December 31, 2021, there were no other states that made up more than 10% or more of the gross amount of the Company’s portfolio of finance receivables. As of December 31, 2020, consumers living primarily in Florida and Illinois made up approximately 14% and 13%, respectively, of the gross amount of the Company’s portfolio of finance receivables. Furthermore, such consumers’ ability to honor their installment contracts may be affected by economic conditions in these areas. The Company is also exposed to a concentration of credit risk inherent in providing alternate financing programs to borrowers who cannot obtain traditional bank financing. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Retirement Plan The Company sponsors a 401(k) retirement plan (“401(k) Plan”) for its employees. Full time employees (except certain non-resident aliens) who are age 21 and older are eligible to participate in the 401(k) Plan. The 401(k) Plan participants may elect to contribute a portion of their eligible compensation to the 401(k) Plan. The Company has elected a matching contribution up to 4% on eligible employee compensation. The Company’s contribution, which is included in salaries and employee benefits in the consolidated statements of operations, totaled $1.5 million, $1.1 million, and $0.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Prior to the reverse recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated because net income prior to the Business Combination was attributable entirely to OppFi-LLC. The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31, 2021 (in thousands, except share and per share data): 2021 Numerator: Net income $ 89,795 Net income attributable to noncontrolling interest 64,241 Net income available to Class A common stockholders - Basic 25,554 Dilutive effect of warrants on net income to Class A common stockholders — Net income available to Class A common stockholders - Diluted $ 25,554 Denominator: Weighted average Class A common stock outstanding - Basic 13,218,119 Effect of dilutive securities: Stock options — Restricted stock units 8,930 Warrants — Dilutive potential common shares 8,930 Weighted average units outstanding - diluted 13,227,049 Earnings per share: Basic EPS $ 1.93 Diluted EPS $ 1.93 The following table presents securities that have been excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive for the year ended December 31, 2021: 2021 Public Warrants 11,887,500 Private Unit Warrants 231,250 $11.50 Exercise Price Warrants 2,248,750 $15 Exercise Price Warrants 912,500 Underwriter Warrants 59,437 Stock Options 3,375,000 Restricted stock units 1,766,714 Performance stock units 78,907 Potential common stock 20,560,058 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the impact of events that have occurred through the date these financial statements were issued and identified the following events that required disclosure. Share repurchase: On January 6, 2022, the Company announced that its Board of Directors (“Board”) had authorized a program to repurchase (“Repurchase Program”) up to $20.0 million in the aggregate of shares of the Company’s Class A Common Stock. Repurchases under the Repurchase Program may be made from time to time, on the open market, in privately negotiated transactions, or by other methods, at the discretion of the management of the Company and in accordance with the limitations set forth in Rule 10b-18 promulgated under the Exchange Act and other applicable legal requirements. The timing and amount of the repurchases will depend on market conditions and other requirements. The Repurchase Program does not obligate the Company to repurchase any dollar amount or number of shares and the Repurchase Program may be extended, modified, suspended, or discontinued at any time. For each share of Class A Common Stock that the Company repurchases under the Repurchase Program, OppFi-LLC will redeem one Class A common unit of OppFi-LLC held by the Company, decreasing the percentage ownership of OppFi-LLC by the Company and relatively increasing the ownership by the other members. The Repurchase Program will expire in December 2023. Chief Executive Officer transition: On February 23, 2022, the Board of the Company appointed Mr. Todd G. Schwartz as the Chief Executive Officer of the Company, effective February 28, 2022 (“Effective Date”). Mr. Schwartz will continue to serve as the Executive Chairman of the Board. Also on February 23, 2022, the Company entered into a separation agreement with Mr. Neville Crawley pursuant to which Mr. Crawley resigned as the Chief Executive Officer and a director of the Company, effective as of the Effective Date. The Company has agreed to continue to pay Mr. Crawley his current base salary and reimbursements for COBRA healthcare expenses for 12 months following the Effective Date, as well as pro rata bonuses for the prior and current fiscal years in the amount of $0.2 million and, $0.1 million, respectively. In addition, the Company has agreed to accelerate the vesting of 175,000 of Mr. Crawley’s outstanding stock options and 25,671 of his outstanding restricted stock units. Mr. Crawley has executed a release of claims in favor of the Company and its affiliates and will be subject to customary restrictive covenants, including non-competition and non-solicitation covenants as set forth in Mr. Crawley’s employment agreement with the Company, dated July 8, 2021. California Financing Law litigation: On March 7, 2022, the Company, through OppFi-LLC, filed a complaint for declaratory and injunctive relief (“Complaint”) against the Commissioner (in her official capacity) of the Department of Financial Protection and Innovation of the State of California (“Defendant”) in the Superior Court of the State of California, County of Los Angeles, Central Division. The Complaint seeks a declaration that the interest rate caps set forth in the California Financing Law, as amended by the Fair Access to Credit Act, a/k/a AB 539 (“CFL”), do not apply to loans that are originated by the Company’s federally-insured state-chartered bank partners and serviced through the Company’s technology and service platform pursuant to a contractual arrangement with each such bank (“Program”). The Complaint further seeks injunctive relief against the Defendant, preventing the Defendant from enforcing interest rate caps under the CFL against the Company based on activities related to the Program. The Company intends to aggressively prosecute the claims set forth in the Complaint. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of OppFi Inc. and OppFi-LLC with its wholly-owned subsidiaries (collectively, the “OppFi Subsidiaries”) as of December 31, 2021. In the opinion of the Company’s management, the consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. The Business Combination was accounted for as a reverse recapitalization in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations . Under this method, FGNA was treated as the “acquired” company, and OppFi-LLC, as the accounting acquirer, was assumed to have issued equity for the net assets of FGNA, accompanied by a recapitalization. |
Principles of consolidation | Principles of consolidation: The consolidated financial statements include the accounts of the above named entities. Opportunity Funding SPE II, LLC, Opportunity Funding SPE III, LLC, Opportunity Funding SPE IV, LLC, Opportunity Funding SPE V, LLC, Opportunity Funding SPE VI, LLC, Opportunity Funding SPE VII, LLC and SalaryTap Funding SPE, LLC are special purpose entities holding finance receivables secured by lenders under a credit or preferred return agreement. OppFi has identified Opportunity Funding SPE II, LLC, Opportunity Funding SPE III, LLC, Opportunity Funding SPE IV, LLC, Opportunity Funding SPE V, LLC, Opportunity Funding SPE VI, LLC, Opportunity Funding SPE VII, LLC and SalaryTap Funding SPE, LLC as VIEs. OppFi-LLC is the sole equity member of all of the aforementioned entities, except for SalaryTap Funding SPE, LLC. SalaryTap, LLC is the sole equity member of SalaryTap Funding SPE, LLC. The Company directs the activities of the VIEs that most significantly impact economic performance. Additionally, the Company has the obligation to absorb losses of the VIEs that could potentially be significant. As the primary beneficiary of the VIEs, the Company has consolidated the financial statements of the VIEs. All significant intercompany transactions and balances have been eliminated in consolidation. |
Segments | Segments: Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. OppFi’s Chief Executive Officer and Chief Financial Officer are collectively considered to be the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s operations constitute a single reportable segment. |
Use of estimates | Use of estimates: The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions, including those impacted by COVID-19, that affect the reported amounts of assets, liabilities and operations and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The judgements, assumptions, and estimates used by management are based on historical experience, management’s experience and qualitative factors. The areas subject to significant estimation techniques are the determination of fair value of installment finance receivables and warrants, and the adequacy of the allowance for credit losses on finance receivables. For the aforementioned estimates, it is reasonably possible the recorded amounts or related disclosures could significantly change in the near future as new information is available. |
Income recognition | Income recognition: The Company recognizes finance charges on installment, SalaryTap, and lines of credit contracts based on the interest method. Under this method, interest is earned over the lives of the installment, SalaryTap, and lines of credit finance receivables to produce constant rates of interest (yields). Fees for returned payments approximate the cost of services provided and are recognized as incurred, assuming collectability is reasonably assured. For OppFi Card finance receivables, interest is earned as it becomes due and is charged to cardholder accounts. Card-related fees, with the exception of the annual fee, are recognized as incurred. Annual fee revenue is amortized straight-line over the course of 12 months. The Company discontinues and reverses the accrual of interest income on installment and SalaryTap finance receivables at the earlier of 60 days past due based on a recency basis or 90 days past due based on a contractual basis. The Company discontinued and reversed the accrual of interest income on lines of credit finance receivables at 60 days past due based on a recency basis. The accrual of income is not resumed until the account is current on a recency or contractual basis, at which time management considers collectability to be probable. |
Cash and cash equivalents | Cash: The Company classifies all cash accounts which are not subject to withdrawal restrictions or penalties as cash. All cash accounts are held in financially insured institutions, which may at times exceed federally insured limits. The Company has not experienced losses in such accounts. Management believes the Company’s exposure to credit risk is minimal for these accounts. |
Restricted cash | Restricted cash: Restricted cash consists of the following: (1) cash required to be held on reserve by the Company’s vendors for purposes of loan processing or funding; (2) cash required to be held for the Company’s guaranty on finance receivables under the terms of the Credit Access Business and Credit Service Organization programs (collectively, the “CSO Program”); (3) cash required to be held in blocked accounts held by the VIEs; and (4) cash required to be held on deposit in connection |
CSO arrangements | CSO arrangements: In Texas and Ohio, OppFi-LLC previously arranged for consumers to obtain finance receivable products from independent third-party lenders as part of the CSO Program. For the consumer finance receivable products originated by the third-party lenders under the CSO Program, the lenders were responsible for providing the criteria by which the consumer's application was underwritten and, if approved, determining the amount of the finance receivable. When a consumer executed an agreement with OppFi-LLC under the CSO Program, OppFi-LLC agreed, for a fee payable to OppFi-LLC by the consumer, to provide certain services to the consumer, one of which was to guarantee the consumer's obligation to repay the finance receivable obtained by the consumer from the third-party lender if the consumer failed to do so. The guarantees represented an obligation to purchase specific finance receivables that are delinquent, secured by a collateral account established in favor of the respective lenders. On April 23, 2019, the Company discontinued the CSO Program in Ohio, and no new finance receivables were originated through this program after that date. As of December 31, 2021 and 2020, there were no finance receivables remaining under the CSO Program in Ohio. On March 19, 2021, the Company discontinued the CSO Program in Texas. As of December 31, 2021, there were no finance receivables remaining under the CSO Program in Texas. As of December 31, 2020, finance receivables remaining under the CSO Program in Texas totaled $19.7 million. As of December 31, 2020, the unpaid principal balance of off-balance sheet active finance receivables which were guaranteed by the Company was $19.7 million. Upon the election of the fair value option for installment loan finance receivables on January 1, 2021, the Company released the reserve for repurchase liabilities as the income rights and related losses were included in the valuation of finance receivables at fair value, which was included in the fair value adjustment to retained earnings. As of December 31, 2020, the Company recorded a reserve for repurchase liabilities of $4.2 million, which represents the liability for estimated losses on finance receivables guaranteed. The Company used a similar methodology for determining the reserve for repurchase liabilities as it does for calculating the allowance for credit losses on finance receivables. |
Participation rights purchase obligation | Participation rights purchase obligations : OppFi-LLC has entered into bank partnership arrangements with certain Banks insured by the FDIC. Under the terms and conditions of the bank partnership agreements, the Banks originate finance receivables based on criteria provided by OppFi-LLC. The issuing Bank earns interest during an initial hold period and owns the economic interest in the finance receivables. After the initial holding period, OppFi-LLC is committed to acquire participation rights in the economic interest in the finance receivables originated by the Banks, net of bank partnership retention, plus accrued interest (“Participation Rights”). OppFi-LLC also provides certain services for these receivables in its capacity of sub-servicer pursuant to the terms of the servicing agreement between the Bank and OppFi-LLC. To facilitate these relationships, OppFi-LLC formed OppWin, LLC, OppWin SalaryTap, LLC, and OppWin Card, LLC, which acquire the Participation Rights and sell these rights to certain of the other OppFi Subsidiaries, which in turn, pledge the Participation Rights to their respective lenders. The Company accounts for the Participation Rights as a finance receivable. As part of these bank partnership arrangements, the Banks have the ability to retain a percentage of the finance receivables they have originated, and OppFi-LLC’s Participation Rights are reduced by the percentage of the finance receivables retained by the Banks. For the years ended December 31, 2021 and 2020, finance receivables originated through the bank partnership arrangements totaled 89% and 62%, respectively. As of December 31, 2021 and 2020, the unpaid principal balance of finance receivables outstanding for purchase was $9.5 million and $3.3 million, respectively. |
Finance receivables | Finance receivables: Prior to January 1, 2021, finance receivables, which management has the intent and ability to hold for the foreseeable future or until maturity or payoff, were reported based on outstanding unpaid principal balance net of accrued interest and fees, unamortized loan origination costs and the allowance for credit losses. On January 1, 2021, the Company elected the fair value option on its installment finance receivables upon adoption of ASU 2016-13. Accordingly, the related finance receivables are carried at fair value in the consolidated balance sheets and the |
Loan origination costs | Loan origination costs: Direct costs incurred for the origination of finance receivables are deferred and amortized over the average life of the customer using the straight-line method. Prior to the election of the fair value option of its installment loans, direct costs incurred for the origination of these finance receivables included underwriting fees, employee salaries and benefits directly related to the origination of the loan and program fees. Loan origination costs also included direct costs incurred for directly acquiring a customer; these costs were deferred and amortized over the average life of the customer using the straight-line method. With the election of the fair value option, loan origination costs related to the origination of installment finance receivables recognized at fair value are expensed when incurred. |
Allowance for credit losses on finance receivables | Allowance for credit losses on finance receivables: Prior to the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , on January 1, 2021, the Company used a static pool methodology for determining the adequacy of the allowance for credit losses on all finance receivables. Under the static pool methodology, a provision for credit losses on finance receivables was recorded when the allowance for credit losses was determined to be insufficient to absorb estimated losses. Such provisions were charged to income in amounts sufficient to maintain the allowance for losses on finance receivables at an adequate level. The allowance was an amount that management believed would be adequate to absorb estimated losses on existing finance receivables based on an evaluation of the collectability of the finance receivables and prior loss experience. This evaluation also took into consideration such factors as changes in the nature and volume of the finance receivable portfolio, overall portfolio quality and current economic conditions that may affect the borrower's ability to pay. While management used the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in any of the factors. The Company’s charge-off policy is based on a review of delinquent finance receivables on a loan by loan basis. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when the Company receives notification of a customer bankruptcy, or is otherwise deemed uncollectible. The allowance consists of quantitative and qualitative factors. The quantitative factors are based on historical charge-off experience. The qualitative factors are determined based on management’s assessment of internal and/or external influences on credit quality that are not fully reflected in the historical losses. Finance receivables are considered small balance homogeneous receivables and are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual small balance homogeneous receivables for impairment disclosures, unless such receivables are the subject of a restructuring agreement. Effective January 1, 2021, the Company adopted ASU 2016-13. The amendments in ASU 2016-13 replaced the Company’s incurred loss impairment methodology with the current expected credit losses (“CECL”) methodology. Under the CECL methodology, the Company determines the allowance for credit losses and records a provision for credit losses considering all |
Delinquency | Delinquency: The Company determines the past due status on a recency basis, which is defined as the last time a qualifying payment is made on an account. Finance receivables are considered delinquent at 30 days or more past due. Prior to May 2020, a qualifying payment was considered to be 50% of the scheduled payment. In May 2020, the policy was changed to consider 90% of the scheduled payment as a qualifying payment. |
Troubled debt restructurings | Troubled debt restructurings: As the terms of the receivables are typically not renegotiated and settlement offers are not typically made until after a receivable stops accruing interest income (up to 60 days delinquent), the only receivables considered to be impaired, or troubled debt restructurings, are: 1) those receivables where a settlement offer is made after receivables cease accruing interest, which may result in a modification of contractual terms, 2) the Company has received notification that a borrower is working with a third party to settle debt on his/her behalf and 3) customers who have entered into the Company’s short-term or long-term hardship programs. As of December 31, 2021 and December 31, 2020, management determined the balance of troubled debt restructuring receivables to be immaterial to the consolidated financial statements as a whole. As such, substantially all disclosures relating to impaired finance receivables, and troubled debt restructuring, have been omitted from these consolidated financial statements. |
Property and equipment | Property and equipment: Furniture, equipment, and leasehold improvements are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization of furniture, equipment, and leasehold improvements are computed under both straight-line and accelerated methods for financial reporting and income tax purposes, based on the estimated useful lives of the assets which range from three |
Capitalized technology | Capitalized technology: Software development costs related to internal use software are incurred in three stages of development: the preliminary project stage, the application development stage, and the post-implementation stage. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. Costs incurred during the application development stage that meet the criteria for capitalization are capitalized and amortized, when the software is ready for its intended use, using the straight-line basis, over the estimated useful life of the software, which is generally two years. The Company capitalized software costs associated with application development totaling $13.7 million and $9.0 million for the years ended December 31, 2021 and 2020, respectively. Amortization expense, which is included in depreciation and amortization on the consolidated statements of operations, totaled $9.3 million, $6.0 million, and $3.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Debt issuance costs | Debt issuance costs: Debt issuance costs are capitalized and amortized based on the contractual terms of the related debt agreements using the interest method for fixed-term debt and the straight-line method for all other debt. |
Transfer and servicing of financial assets | Transfer and servicing of financial assets: After a transfer of financial assets, an entity recognizes the financial and servicing assets it controls and the liabilities it has incurred, derecognizes financial assets when control has been surrendered, and derecognizes liabilities when extinguished. The transfers of assets for debt purposes have been accounted for as secured and senior borrowings and the related assets and borrowings are retained on the consolidated balance sheets and no gain or loss has been recognized in the consolidated statements of operations. |
Stock-based compensation | Stock-based compensation: The Company established the OppFi Inc. 2021 Equity Incentive Plan (“Plan”), which provides for the grant of restricted stock unit awards, incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock units awards, performance units, performance shares, cash-based awards, and other stock-based awards to employees, non-employee directors, officers, and consultants. The Company measures stock-based compensation expense based on the fair value of awards as determined on the date of the grant. The Company recognizes stock-based compensation expense over the requisite service period. The Company accounts for forfeitures when they occur. The Company uses a Black-Scholes-Merton (“Black-Scholes”) option-pricing model to determine the estimated fair value of stock options. The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of stock options. The fair value of restricted stock units and performance stock units is estimated using the market price of the Company’s Class A Common Stock on the date of grant. |
Earnings per share | Earnings per share: The Company calculates basic and diluted earnings per share attributable to common stockholders required for companies with participating securities. Basic earnings per share available to common stockholders is calculated by dividing the net income attributable to OppFi by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share available to common stockholders is computed by giving effect of potentially dilutive common stock equivalents outstanding during the period using the treasury stock method. In periods in which the Company reports a net loss available attributable to OppFi, diluted earnings per share available to common stockholders would be the same as basic earnings per share available to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Warrants | Warrants: Public Warrants, $11.50 Exercise Price Warrants, $15 Exercise Price Warrants, Private Placement Warrants and Underwriter Warrants do not meet the criteria for equity treatment, due to a provision in the warrant agreement governing such warrants (“Warrant Agreement”) related to certain tender or exchange offer provisions, each warrant must be recorded as a liability. Accordingly, the Company classifies each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations. The Public Warrants are valued at market price based on a quoted price in an active market. The Company utilizes a Monte Carlo simulation model to value the |
Tax receivable agreement liability | Tax receivable agreement liability: In connection with the Business Combination, OppFi entered into the Tax Receivable Agreement ("TRA") with the Members and the Members’ Representative. The TRA provides for payment to the Members of 90% of the U.S. federal, state and local income tax savings realized by the Company as a result of the increases in tax basis and certain other tax benefits related to the transactions contemplated under the Business Combination Agreement and the exchange of Retained OppFi Units for Class A Common Stock or cash. OppFi-LLC will have in effect an election under Section 754 of the Internal Revenue Code effective for each taxable year in which an exchange of Retained OppFi Units occurs. The remaining 10% cash tax savings resulting from the basis adjustments will be retained by the Company. In general, cash tax savings result in a year when the tax liability of the Company for the year, computed without regard to the deductions attributable to the amortization or depreciation of the basis increase and other deductions that arise in connection with the payment of the cash consideration under the TRA or the exchange of Retained OppFi Units for Class A Common Stock, would be more than the tax liability for the year taking into account such deductions. Payments under the TRA will not be due until the Company is able to reduce an actual cash tax liability by the amortization of the basis increase on a filed tax return. The payments under the TRA are expected to be substantial. The Company accounts for the effects of the basis increases as follows: • records an increase in deferred tax assets for the income tax effects of the increases in tax basis based on enacted federal and state income tax rates at the date of the exchange; • the Company evaluates the ability to realize the full benefit represented by the deferred tax asset based on an analysis that will consider expectations of future earnings among other things. If the Company determines that the full benefit is not likely to be realized, a valuation allowance is established to reduce the amount of the deferred tax assets to an amount that is likely to be realized. The Company records obligations under the TRA at the gross undiscounted amount of the expected future payments as an increase to liabilities and the realizable deferred tax asset with an offset to additional paid-in capital. |
Income taxes | Income taxes: OppFi-LLC is organized as a partnership for U.S. income tax purposes, and therefore is not subject to tax on its earnings, as the taxable income and deductions are passed to the Members who are responsible for income tax based upon their allocable share of OppFi-LLC's income. Following the Closing, the Company’s consolidated financial statements include the accounts of OppFi and OppFi-LLC. OppFi is subject to corporate income taxes in the United States based upon its activities and its allocable share of taxable income from OppFi-LLC at the federal and state level, therefore the amount of income taxes recorded prior to the Closing are not representative of the expenses expected in the future. The computation of the effective tax rate and provision at each period requires the use of certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income that is subject to tax, and permanent differences between the Company’s GAAP earnings and taxable income. The estimates used to compute the provision for income taxes may change throughout the year as new events occur, additional information is obtained or as tax laws and regulations change. Accordingly, the effective tax rate for future periods may vary. The Company accounts for income taxes pursuant to the asset and liability method which requires the recognition of current tax liabilities or receivables for the amount of taxes it estimates are payable or refundable for the current year, deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns is recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryover or |
Government regulation | Government regulation: The Company is subject to complex regulation, supervision and licensing under various federal, state, local statutes, ordinances, regulations, rules and guidance. The Company must comply with federal laws as well as regulations adopted to implement those laws. In July 2010, the U.S. Congress passed the Dodd-Frank Act, and Title X of the Dodd-Frank Act created the Consumer Financial Protection Bureau (“CFPB”), which regulates U.S. consumer financial products and services, including consumer loans offered by the Company. The CFPB has regulatory, supervisory and enforcement powers over providers of consumer financial products and services, including explicit supervisory authority to examine and require registration of such providers. |
Noncontrolling interests | Noncontrolling interests: Noncontrolling interests are held by the Members, who retained 87.6% of the economic ownership percentage of OppFi-LLC as of December 31, 2021. In accordance with the provisions of ASC 810, Consolidation , the Company classifies the noncontrolling interests as a component of stockholders’ equity in the consolidated balance sheets. Additionally, the Company has presented the net income attributable to the Company and the noncontrolling ownership interests separately in the consolidated statements of operations. |
Fair value disclosure | Fair value disclosure : ASC 820, Fair Value Measurement , established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. ASC 820 provides a framework for measuring fair value under generally accepted accounting principles. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the nature of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the NYSE. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less-active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3 - Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. |
Emerging growth company | Emerging growth company: The Company is an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). The Company is permitted to delay the adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements apply to private companies. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Accounting pronouncements issued and adopted and Accounting pronouncements issued and not yet adopted | Accounting pronouncements issued and adopted: In September 2016, the FASB issued ASU 2016-13. The amendments in ASU 2016‑13 replace the incurred loss impairment methodology in current GAAP with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In April 2019 and November 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , respectively, which provide subsequent amendments to the initial guidance in ASU 2016‑13. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief , which provides entities that have certain instruments within the scope of ASC 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost , with an option to irrevocably elect the fair value option in ASC 825-10, Financial Instruments — Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13. The Company adopted ASU 2016-13 under the modified-retrospective method effective January 1, 2021 and elected the fair value option to account for installment finance receivables. The Company believes that the fair value option better reflects the value of its portfolio and its future economic performance as well as more closely aligns with the Company’s marginal decision-making processes that rely on risk based pricing and discounted cash flow methodologies. In accordance with the transition guidance, the Company (i) released the allowance for estimated losses on installment finance receivables at that date; (ii) released the unamortized net deferred origination costs at that date; (iii) released the reserve for repurchase liability on third-party lender losses; and (iv) measured the installment finance receivables at fair value. As a result of the adoption of this ASU, the Company’s finance receivables are carried at fair value with changes in fair value recognized directly in earnings and origination fees and costs are no longer eligible for deferral. The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2021, as adjusted (in thousands): Fair value adjustment to finance receivables $ 23,584 Allowance for credit losses 55,031 Unamortized loan origination costs (13,421) Reserve for repurchase liability 4,241 Increase in retained earnings $ 69,435 In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which broadens the scope of existing guidance applicable to internal-use software development costs. The update requires costs to be capitalized or expensed based on the nature of the costs and the project stage in which they are incurred subject to amortization and impairment guidance consistent with existing internal-use software development cost guidance. The guidance is effective for annual reporting periods beginning after December 31, 2020, with early adoption permitted. The Company adopted ASU 2018-15 effective January 1, 2021. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles of ASC 740, Income Taxes. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The guidance is effective for annual reporting periods beginning after December 15, 2020 and early adoption is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective, or prospective basis. The Company adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements and related disclosures. Accounting pronouncements issued and not yet adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and issued certain transitional guidance and subsequent amendments between January 2018 and February 2020 within ASU No. 2017-13, ASU No. 2018-01, ASU No. 2018-10, ASU No. 2018-11, ASU No. 2018-20, ASU No. 2019-01, ASU No. 2019-10, ASU No. 2020-02, and ASU No. 2020-05 (collectively, “Topic 842”). Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. Per ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities , issued June 2020, Topic 842, as amended, is effective for private companies for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. As permitted for emerging growth companies, the Company will adopt Topic 842 under the private company transition guidance, which is effective for the Company beginning January 1, 2022. The Company will utilize the effective date method, whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, the Company will elect the package of practical expedients permitted under the transition guidance which, among other things, permits companies to not reassess prior conclusions on lease identification, lease classification, and initial direct costs. The Company will also elect the practical expedient which permits the Company to combine lease and non-lease components and to exclude short-term leases, defined as having an initial term of twelve months or less, from the consolidated balance sheets. Adoption of the new standard is expected to result in recording a right-of-use asset and lease liability related to the Company’s operating lease of its corporate headquarters totaling approximately $15.5 million and $18.0 million, respectively, on the Company’s consolidated balance sheet as of January 1, 2022. A decrease to deferred rent totaling approximately $2.5 million, which would previously be included in accrued expenses on the consolidated balance sheet, will offset the right-of-use asset. The standard will not materially affect the Company's consolidated statements of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The purpose of ASU 2020-04 is to provide optional guidance for a period of time related to accounting for reference rate reform on financial reporting. It is intended to reduce the potential burden of reviewing contract modifications related to discontinued rates. The amendments and expedients in this update are effective as of March 12, 2020 through December 31, 2022 and may be elected by topic. The Company is currently evaluating the impact on the Company’s consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Impact of Adoption on the Consolidated Balance Sheet | The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2021, as adjusted (in thousands): Fair value adjustment to finance receivables $ 23,584 Allowance for credit losses 55,031 Unamortized loan origination costs (13,421) Reserve for repurchase liability 4,241 Increase in retained earnings $ 69,435 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Installment Finance Receivables at Fair Value | The components of installment finance receivables at fair value as of December 31, 2021 were as follows (in thousands): Unpaid principal balance of finance receivables - accrual $ 307,059 Unpaid principal balance of finance receivables - non-accrual 25,185 Unpaid principal balance of finance receivables $ 332,244 Finance receivables at fair value - accrual $ 369,576 Finance receivables at fair value - non-accrual 3,677 Finance receivables at fair value, excluding accrued interest and fees receivable 373,253 Accrued interest and fees receivable 10,637 Finance receivables at fair value $ 383,890 Difference between unpaid principal balance and fair value $ 41,009 |
Schedule of Changes in Fair Value of Installment Finance Receivables | Changes in the fair value of installment finance receivables at fair value for the year ended December 31, 2021 were as follows (in thousands): Balance at the beginning of the period $ 289,166 Originations of principal 581,412 Repayments of principal and recoveries (401,638) Accrued interest and fees receivable 2,727 Charge-offs, net (1) (103,385) Adjustment to fair value (1,817) Net change in fair value (1) 17,425 Balance at the end of the period $ 383,890 (1) Included in "Change in fair value of finance receivables" in the Consolidated Statements of Operations. |
Schedule of Finance Receivables | The components of finance receivables carried at amortized cost were as follows (in thousands): December 31, 2021 2020 Finance receivables $ 5,285 $ 255,943 Accrued interest and fees 24 7,910 Unearned annual fee income (286) — Unamortized loan origination costs — 13,421 Allowance for credit losses (803) (55,031) Finance receivables at amortized cost, net $ 4,220 $ 222,243 |
Summary of Changes in Allowance for Credit Losses on Finance Receivables | Changes in the allowance for credit losses on finance receivables for the years ended December 31 were as follows (in thousands): 2021 2020 2019 Beginning balance $ 55,031 $ 53,146 $ 27,117 Effects of adopting fair value option (55,031) — — Provisions for credit losses on finance receivables 929 81,619 99,389 Finance receivables charged off (126) (90,174) (78,882) Recoveries of charge offs — 10,440 5,522 Ending balance $ 803 $ 55,031 $ 53,146 |
Summary of Changes in Reserve for Repurchase Liability | Changes in the reserve for repurchase liability for third-party lender losses were as follows for the years ended December 31 (in thousands): 2021 2020 2019 Beginning balance $ 4,241 $ 4,978 $ 4,983 Effects of adopting fair value option (4,241) — — Provision for repurchase liabilities — 9,168 14,865 Finance receivables charged off — (10,755) (15,581) Recoveries of charge offs — 850 711 Ending balance $ — $ 4,241 $ 4,978 |
Summary of Credit Quality Finance Receivable Portfolio | The following is an assessment of the credit quality of finance receivables at amortized cost and presents the recency and contractual delinquency of the finance receivable portfolio as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Recency delinquency Contractual delinquency Recency delinquency Contractual delinquency Current $ 5,016 $ 4,993 $ 240,623 $ 220,438 Delinquency 30-59 days 152 171 7,760 12,574 60-89 days 102 104 7,560 9,852 90+ days 15 17 — 13,079 Total delinquency 269 292 15,320 35,505 Finance receivables $ 5,285 $ 5,285 $ 255,943 $ 255,943 |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software | Property, equipment and software consisted of the following (in thousands): December 31, 2021 December 31, 2020 Capitalized technology $ 34,586 $ 20,908 Furniture, fixtures and equipment 3,792 3,228 Leasehold improvements 979 862 Total property, equipment and software 39,357 24,998 Less accumulated depreciation and amortization (24,714) (14,440) Property, equipment and software, net $ 14,643 $ 10,558 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2021 December 31, 2020 Accrued payroll and benefits $ 11,779 $ 9,987 Accrual for services rendered and goods purchased 10,631 5,478 Deferred rent 2,513 2,128 Other 4,672 5,192 Total $ 29,595 $ 22,785 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The following is a summary of the Company’s borrowings (in thousands): Purpose Borrower Borrowing Capacity December 31, 2021 December 31, 2020 Interest Rate as of December 31, 2021, Except as Noted Maturity Date Secured borrowing payable Opportunity Funding SPE II, LLC $ 38,500 $ 22,443 $ 16,025 15.00% — (1) Senior debt Revolving line of credit OppFi-LLC $ — $ — $ 5,000 LIBOR plus 2.50% (2) February 2022 Revolving line of credit Opportunity Funding SPE III, LLC 175,000 119,000 59,200 LIBOR plus 6.00% January 2024 Revolving line of credit Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC 75,000 45,900 24,222 LIBOR plus 7.25% April 2024 Revolving line of credit Opportunity Funding SPE VI, LLC 50,000 30,600 16,148 LIBOR plus 7.25% April 2023 Revolving line of credit Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC 45,000 7,500 12,506 LIBOR plus 3.85% February 2024 Total revolving lines of credit 345,000 203,000 117,076 Term loan, net OppFi-LLC 50,000 48,578 14,650 LIBOR plus 10.00% March 2025 Total senior debt $ 395,000 $ 251,578 $ 131,726 Subordinated debt - related party OppFi-LLC $ — $ — $ 4,000 14.00% (2) December 2023 Other debt OppFi-LLC $ — $ — $ 6,354 1.00% (3) April 2022 (1) Maturity date extended indefinitely until borrowing capacity is depleted (2) Interest rate as of December 31, 2020 and for the subsequent period until borrowings were repaid in March 2021 (3) Interest rate as of December 31, 2020 and for the subsequent period until loan was forgiven in September 2021 |
Summary of Required Payments for Borrowings, Excluding Secured Borrowing and Revolving Lines of Credit | As of December 31, 2021, required payments for all borrowings, excluding secured borrowing and revolving lines of credit, for each of the next five years are as follows (in thousands): Year Amount 2022 $ — 2023 — 2024 — 2025 50,000 2026 — Total $ 50,000 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Fair Value of Warrant Units Estimated at Option Pricing Model | The fair value of the warrant units was estimated using an option pricing model that used the following assumptions: December 31, 2020 Expected term 3 years Volatility 52.0 % Discount for lack of marketability 45.0 % Risk free rate 0.2 % December 31, 2021 Interest rate on finance receivables 147.60 % Discount rate 21.80 % Servicing cost* 5.00 % Remaining life 0.62 years Default rate* 17.70 % Accrued interest* 3.20 % Prepayment rate* 21.00 % *Stated as a percentage of finance receivables The following table presents the significant assumptions used in the simulation at December 31, 2021 and July 20, 2021, the Closing Date: December 31, 2021 July 20, 2021 Input $11.50 Exercise $15 Exercise $11.50 Exercise $15 Exercise Risk-free interest rate 1.19 % 1.50 % 0.69 % 1.23 % Expected term (years) 4.6 9.6 5.0 10.0 Expected volatility 48.40 % 48.40 % 36.50 % 36.00 % Exercise price $ 11.50 $ 15.00 $ 11.50 $ 15.00 Fair value of warrants $ 0.74 $ 1.40 $ 2.80 $ 3.50 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Company's Stock Option, Activity | A summary of the Company’s stock option activity for the year ended December 31, 2021 is as follows: Number of Common Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2020 — $ — — $ — Granted 5,600,000 15.23 — — Exercised — — — — Forfeited (2,225,000) 15.23 — — Outstanding as of December 31, 2021 3,375,000 $ 15.23 9.60 $ — Vested and exercisable as of December 31, 2021 — $ — 0.0 $ — |
Schedule of Valuation Assumptions, Options | The fair value of each option grant was estimated on the grant date using the Black-Scholes option pricing model based on the following assumptions: Volatility 32.50 % Risk-free rate (low) 0.91% - 1.25% Expected term (years) 5.1 - 6.1 years Dividend yield 0.00 % |
Summary of Restricted Stock Unit, Activity | A summary of the Company’s RSU activity for the year ended December 31, 2021 is as follows: Number of Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested as of December 31, 2020 — $ — Granted 2,109,320 7.59 Vested (11,337) 7.69 Forfeited (279,453) 7.69 Unvested as of December 31, 2021 1,818,530 $ 7.58 |
Summary of PSU Activity | A summary of the Company’s PSU activity for year ended December 31, 2021 is as follows: Number of Performance Stock Units Weighted-Average Grant Date Fair Value Unvested as of December 31, 2020 — $ — Granted 99,868 7.69 Vested — — Forfeited (20,961) 7.69 Unvested as of December 31, 2021 78,907 $ 7.69 |
Schedule of Valuation Assumptions, Profit Unit Interests | The compensation expense accounted for all vested units based on the following assumptions: Expected term 3 years Volatility 68.0 % Discount for lack of marketability 45.0 % Risk free rate 0.2 % |
Schedule of Profit Unit Interest | The following table summarizes the Company’s profit unit interests activity: Avg Fair Value Units at Grant Date Outstanding at December 31, 2018 9,279,761 $ 0.04 Granted 619,597 0.22 Forfeited (100,640) 0.17 Outstanding at December 31, 2019 9,798,718 0.05 Granted 2,413,833 0.17 Forfeited (10,416) 0.03 Outstanding at December 31, 2020 12,202,135 0.08 Granted — — Forfeited (591,078) 0.10 Exchanged in reverse recapitalization (11,611,057) 0.08 Outstanding at December 31, 2021 — $ — |
Schedule of Non-vested Units | The following table summarizes the Company’s non-vested units activity: Avg Fair Value Units at Grant Date Non-vested units at December 31, 2018 4,529,290 $ 0.06 Granted 619,597 0.22 Vested (1,581,500) 0.04 Forfeited (100,640) 0.17 Non-vested units at December 31, 2019 3,466,747 0.10 Granted 2,413,833 0.17 Vested (1,131,831) 0.13 Forfeited (10,416) 0.03 Non-vested units at December 31, 2020 4,738,333 0.12 Granted — — Vested (2,933,300) 0.08 Forfeited (591,078) 0.10 Exchanged in reverse recapitalization (1,213,955) 0.22 Non-vested units at December 31, 2021 — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The following table summarizes provision for income taxes for the years ended December 31 (in thousands): 2021 2020 2019 Federal income taxes: Current $ (4) $ — $ — Deferred (225) — — State income taxes: Current 582 — — Deferred (42) — — Provision for income taxes $ 311 $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the differences between the effective income tax rate and the federal statutory income tax rate of 21% for the years ended December 31 (dollars in thousands): 2021 2020 2019 Amount Percentage Amount Percentage Amount Percentage Federal income taxes at statutory rate $ 18,922 21.00 % $ — — $ — — State tax expense, net of federal income tax benefit 549 0.61 % — — — — Fair market value adjustment of warrants (5,545) (6.16) % — — — — Effect of flow-through entity (13,615) (15.11) % — — — — Total $ 311 0.34 % $ — — $ — — |
Schedule of Deferred Taxes | The components of deferred taxes were as follows (in thousands): December 31, 2021 2020 Investment in partnership $ 16,951 $ — Tax receivable agreement liability 5,583 — Net operating loss 1,609 — Intangibles 618 — Stock compensation 603 — Other 229 — Deferred tax asset $ 25,593 $ — |
Interest and Loan Related Inc_2
Interest and Loan Related Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest and Fee Income, Loans and Leases [Abstract] | |
Summary of Interest and Loan Related Income | The following table summarizes interest and loan related income, net, for the years ended December 31 (in thousands): 2021 2020 2019 Interest and loan related income, gross $ 349,029 $ 322,165 $ 267,166 Amortization of loan origination costs — (31,940) (38,968) Interest and loan related income, net $ 349,029 $ 290,225 $ 228,198 |
Interest Expense and Amortize_2
Interest Expense and Amortized Debt Issuance Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest Expense And Amortized Debt Issuance Costs [Abstract] | |
Summary of Interest Expense and Amortized Debt Issuance Costs | The following table summarizes interest expense and amortized debt issuance costs for the years ended December 31 (in thousands): 2021 2020 2019 Interest expense $ 21,809 $ 18,722 $ 20,091 Amortized debt issuance costs 2,310 1,945 1,785 Interest expense and amortized debt issuance costs $ 24,119 $ 20,667 $ 21,876 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2021 and 2020 are as follows (in thousands): Carrying Value Fair Value Measurements December 31, 2021 Level 1 Level 2 Level 3 Financial assets: Finance receivables at fair value, excluding accrued interest and fees receivable (1) $ 373,253 $ — $ — $ 373,253 Financial liabilities: Warrant liability - Public Warrants (2) 8,083 8,083 — — Warrant liability - Private Placement Warrants (3) 3,157 — — 3,157 Carrying Value Fair Value Measurements December 31, 2020 Level 1 Level 2 Level 3 Financial liabilities: Warrant units (4) $ 1,309 $ — $ — $ 1,309 During the years ended December 31, 2021 and 2020, there were no transfers of assets or liabilities in or out of Level 3 fair value measurements. (1) The Company primarily estimates the fair value of its installment finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. The following table presents quantitative information about the significant unobservable inputs used for the Company’s installment finance receivables fair value measurements as of December 31, 2021: (2) The fair value measurement for the Public Warrants is categorized as Level 1 due to the use of an observable market quote in an active market under the ticker OPFI WS. (3) The fair value of the Private Placement Warrants is measured using a Monte Carlo simulation; accordingly, the fair value measurement for the Private Placement Warrants is categorized as Level 3. |
Schedule of Fair Value Measurement Input and Valuation Techniques | The fair value of the warrant units was estimated using an option pricing model that used the following assumptions: December 31, 2020 Expected term 3 years Volatility 52.0 % Discount for lack of marketability 45.0 % Risk free rate 0.2 % December 31, 2021 Interest rate on finance receivables 147.60 % Discount rate 21.80 % Servicing cost* 5.00 % Remaining life 0.62 years Default rate* 17.70 % Accrued interest* 3.20 % Prepayment rate* 21.00 % *Stated as a percentage of finance receivables The following table presents the significant assumptions used in the simulation at December 31, 2021 and July 20, 2021, the Closing Date: December 31, 2021 July 20, 2021 Input $11.50 Exercise $15 Exercise $11.50 Exercise $15 Exercise Risk-free interest rate 1.19 % 1.50 % 0.69 % 1.23 % Expected term (years) 4.6 9.6 5.0 10.0 Expected volatility 48.40 % 48.40 % 36.50 % 36.00 % Exercise price $ 11.50 $ 15.00 $ 11.50 $ 15.00 Fair value of warrants $ 0.74 $ 1.40 $ 2.80 $ 3.50 |
Schedule of Changes in Fair Value of Liabilities | The following table presents the changes in the fair value of the warrant liability - Private Placement Warrants (in thousands): $11.50 Exercise $15 Exercise Total Fair value as of December 31, 2020 $ — $ — $ — Reverse recapitalization 7,110 3,194 10,304 Change in fair value (5,231) (1,916) (7,147) Fair value as of December 31, 2021 $ 1,879 $ 1,278 $ 3,157 The following table presents the change in the fair value of the warrant units (in thousands): Fair value as of December 31, 2019 $ 112 Change in fair value 1,197 Fair value as of December 31, 2020 1,309 Change in fair value 4,208 Warrant units exercised (5,517) Fair value as of December 31, 2021 $ — |
Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities | The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy as of December 31, 2021 and 2020 (in thousands): Carrying Value Fair Value Measurements December 31, 2021 Level 1 Level 2 Level 3 Assets: Cash $ 25,064 $ 25,064 $ — $ — Restricted cash 37,298 37,298 — — Accrued interest and fees receivable 10,637 10,637 — — Finance receivables at amortized cost, net 4,220 — — 4,220 Liabilities: Secured borrowing payable 22,443 — — 22,443 Senior debt, net 251,578 — — 251,578 Carrying Value Fair Value Measurements December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash $ 25,601 $ 25,601 $ — $ — Restricted cash 20,056 20,056 — — Finance receivables at amortized cost, net 222,243 — — 287,437 Liabilities: Reserve for repurchase liability 4,241 — — 4,241 Secured borrowing payable 16,025 — — 16,025 Senior debt, net 131,726 — — 131,726 Subordinated debt - related party 4,000 — — 4,000 Other debt 6,354 — — 6,354 |
Commitments, Contingencies an_2
Commitments, Contingencies and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments Contingencies And Related Party Transactions [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2021 are as follows (in thousands): Year Amount 2022 $ 2,271 2023 2,339 2024 2,410 2025 2,482 2026 2,557 Thereafter 10,283 Total $ 22,342 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31, 2021 (in thousands, except share and per share data): 2021 Numerator: Net income $ 89,795 Net income attributable to noncontrolling interest 64,241 Net income available to Class A common stockholders - Basic 25,554 Dilutive effect of warrants on net income to Class A common stockholders — Net income available to Class A common stockholders - Diluted $ 25,554 Denominator: Weighted average Class A common stock outstanding - Basic 13,218,119 Effect of dilutive securities: Stock options — Restricted stock units 8,930 Warrants — Dilutive potential common shares 8,930 Weighted average units outstanding - diluted 13,227,049 Earnings per share: Basic EPS $ 1.93 Diluted EPS $ 1.93 |
Schedule of Antidilutive Securities Excluded from Calculation of Earnings Per Share | The following table presents securities that have been excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive for the year ended December 31, 2021: 2021 Public Warrants 11,887,500 Private Unit Warrants 231,250 $11.50 Exercise Price Warrants 2,248,750 $15 Exercise Price Warrants 912,500 Underwriter Warrants 59,437 Stock Options 3,375,000 Restricted stock units 1,766,714 Performance stock units 78,907 Potential common stock 20,560,058 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) - $ / shares | Dec. 31, 2021 | Jul. 20, 2021 |
Class of Stock [Line Items] | ||
Ownership interest held, percent | 12.40% | 11.80% |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Class V Voting Stock | ||
Class of Stock [Line Items] | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||||
Dec. 31, 2021USD ($)segment$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2022USD ($) | Jul. 20, 2021 | May 01, 2020 | Apr. 30, 2020 | |
Accounting Policies [Abstract] | |||||||
Number of reportable segments | segment | 1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accrual period for financing receivables | 60 days | ||||||
Off-balance sheet active finance receivables | $ 19,700,000 | ||||||
Reserve for repurchase liabilities | 4,200,000 | ||||||
Restricted cash balance held in a federally insured bank account | 3,100,000 | ||||||
Restricted cash balance payable balance | $ 800,000 | ||||||
Finance receivables originated through the bank partnership arrangements, percentage | 89.00% | 62.00% | |||||
Finance receivables originated through the bank partnership arrangements | $ 9,500,000 | $ 3,300,000 | |||||
Percent of scheduled payment considered as a qualifying payment | 90.00% | 50.00% | |||||
Property, Plant and Equipment [Line Items] | |||||||
Development and capitalized software costs | 13,700,000 | 9,000,000 | |||||
Capitalized software costs, amortization expense | 9,300,000 | 6,000,000 | $ 3,800,000 | ||||
Class of Warrant or Right [Line Items] | |||||||
Percent of tax benefits with provided payment | 0.90 | ||||||
Percent of tax benefits retained by company | 0.10 | ||||||
Tax receivable agreement liability | 23,272,000 | 0 | |||||
Deferred tax asset, tax receivable agreement liability | 5,583,000 | 0 | |||||
Adjustments to additional paid in capital, tax receivable agreement liability | 17,700,000 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease in deferred rent | $ (2,513,000) | (2,128,000) | |||||
Capitalized technology | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Capitalized technology, useful life | 2 years | ||||||
Recency delinquency | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accrual period for financing receivables | 60 days | ||||||
Contractual delinquency | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accrual period for financing receivables | 90 days | ||||||
Minimum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life | 3 years | ||||||
Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Useful life | 5 years | ||||||
Pro Forma | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease, right-of-use asset | $ 15,500,000 | ||||||
Operating lease, liability | 18,000,000 | ||||||
Pro Forma | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease in deferred rent | $ 2,500,000 | ||||||
Ohio | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Finance receivables remaining under CSO program | $ 0 | $ 0 | |||||
Texas | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Finance receivables remaining under CSO program | $ 0 | ||||||
Existing Equity Holders | |||||||
Schedule Of Reverse Recapitalization [Line Items] | |||||||
Ownership interest retained | 87.60% | 88.20% | |||||
$11.50 Exercise Price Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Exercise price of warrants or rights (in dollars per share) | $ / shares | $ 11.50 | ||||||
$15 Exercise Price Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Exercise price of warrants or rights (in dollars per share) | $ / shares | $ 15 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Impact of Adoption on the Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for credit losses | $ 803 | $ 55,031 | $ 53,146 | $ 27,117 | ||
Reserve for repurchase liability | 0 | 4,241 | [1] | |||
Increase in retained earnings | $ (70,723) | $ 92,320 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Fair value adjustment to finance receivables | $ 23,584 | |||||
Allowance for credit losses | 55,031 | |||||
Unamortized loan origination costs | (13,421) | |||||
Reserve for repurchase liability | 4,241 | |||||
Increase in retained earnings | $ 69,435 | |||||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Business Combination (Details)
Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 20, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Reverse Recapitalization [Line Items] | |||||
Aggregate value of consideration paid to Members in Business Combination | $ 806,500 | ||||
Payments for reverse recapitalization | 91,600 | $ 91,646 | $ 0 | $ 0 | |
Direct and incremental costs incurred in connection with the business combination | 30,600 | ||||
Business combination costs recorded as reduction of additional-paid in capital | 21,600 | $ (78,468) | $ 0 | $ 0 | |
Prepaid expense | 800 | ||||
Professional fees | $ 8,200 | ||||
Percent of tax benefits with provided payment | 0.90 | ||||
Deferred tax asset recognized in business combination | $ 24,300 | ||||
Class A Common Stock | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Reverse recapitalization (in shares) | 12,977,690 | ||||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common stock, shares, issued (in shares) | 12,977,690 | 13,631,484 | 13,631,484 | ||
Common stock, shares, outstanding (in shares) | 12,977,690 | 13,631,484 | 13,631,484 | ||
Conversion of stock (in shares) | 3,443,750 | ||||
Unit conversion (in shares) | 161,767 | ||||
Class A Common Stock | OppFi Units Conversion | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Common stock, shares, issued (in shares) | 13,464,542 | ||||
Common stock, shares, outstanding (in shares) | 13,464,542 | ||||
Unit conversion (in shares) | 486,852 | ||||
Class B Common Stock | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common stock, shares, issued (in shares) | 0 | 0 | |||
Common stock, shares, outstanding (in shares) | 0 | 0 | |||
Class V Voting Stock | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Reverse recapitalization (in shares) | 96,987,093 | ||||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Stock issued to shareholders (in shares) | 96,987,093 | ||||
Common stock, shares, issued (in shares) | 96,338,474 | 96,338,474 | |||
Common stock, shares, outstanding (in shares) | 96,338,474 | 96,338,474 | |||
Stock subject to restrictions (in shares) | 25,500,000 | ||||
Earnout Units | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Stock subject to restrictions (in shares) | 25,500,000 | ||||
Existing Equity Holders | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Ownership interest retained | 88.20% | 87.60% | 87.60% |
Finance Receivables - Schedule
Finance Receivables - Schedule of Components of Installment Finance Receivables At Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Unpaid principal balance of finance receivables - accrual | $ 307,059 | ||
Unpaid principal balance of finance receivables - non-accrual | 25,185 | ||
Unpaid principal balance of finance receivables | 332,244 | ||
Finance receivables at fair value - accrual | 369,576 | ||
Finance receivables at fair value - non-accrual | 3,677 | ||
Finance receivables at fair value, excluding accrued interest and fees receivable | 373,253 | ||
Accrued interest and fees receivable | 10,637 | ||
Finance receivables at fair value | [1] | 383,890 | $ 0 |
Difference between unpaid principal balance and fair value | $ 41,009 | ||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accrual period for financing receivables | 60 days | |||||
Aggregate balance of finance receivables | [1] | $ 383,890,000 | $ 0 | |||
Fair value of finance receivables | 332,244,000 | |||||
Reserve for repurchase liability for third-party lender losses | 0 | $ 0 | 4,241,000 | $ 4,978,000 | $ 4,983,000 | |
Finance receivables in non-accrual status | 100,000 | 19,300,000 | ||||
Financing receivables under CSO program which were greater than 90 days past due | $ 0 | $ 0 | ||||
Recency delinquency | ||||||
Accrual period for financing receivables | 60 days | |||||
Contractual delinquency | ||||||
Accrual period for financing receivables | 90 days | |||||
90+ days | ||||||
Aggregate balance of finance receivables | $ 1,500,000 | |||||
Fair value of finance receivables | $ 10,500,000 | |||||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Finance Receivables - Changes i
Finance Receivables - Changes in Fair Value of Finance Installment Receivables (Details) - Financing Receivable $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at the beginning of the period | $ 289,166 |
Originations of principal | 581,412 |
Repayments of principal and recoveries | (401,638) |
Accrued interest and fees receivable | 2,727 |
Charge-offs, net | (103,385) |
Adjustment to fair value | (1,817) |
Net change in fair value | 17,425 |
Balance at the end of the period | $ 383,890 |
Finance Receivables - Schedul_2
Finance Receivables - Schedule of Finance Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Finance receivables | $ 5,285 | $ 255,943 | |||
Accrued interest and fees | 24 | 7,910 | |||
Unearned annual fee income | (286) | 0 | |||
Unamortized loan origination costs | 0 | 13,421 | |||
Allowance for credit losses | (803) | (55,031) | $ (53,146) | $ (27,117) | |
Finance receivables at amortized cost, net | [1] | $ 4,220 | $ 222,243 | ||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Finance Receivables - Summary o
Finance Receivables - Summary of Changes in Allowance for Credit Losses on Finance Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 55,031 | $ 53,146 | $ 27,117 |
Effects of adopting fair value option | (55,031) | 0 | 0 |
Provisions for credit losses on finance receivables | 929 | 81,619 | 99,389 |
Finance receivables charged off | (126) | (90,174) | (78,882) |
Recoveries of charge offs | 0 | 10,440 | 5,522 |
Ending balance | $ 803 | $ 55,031 | $ 53,146 |
Finance Receivables - Summary_2
Finance Receivables - Summary of Changes in Reserve for Repurchase Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Securities Purchased under Agreements to Resell, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 4,241 | $ 4,978 | $ 4,983 |
Effects of adopting fair value option | (4,241) | 0 | 0 |
Provision for repurchase liabilities | 0 | 9,168 | 14,865 |
Finance receivables charged off | 0 | (10,755) | (15,581) |
Recoveries of charge offs | 0 | 850 | 711 |
Ending balance | $ 0 | $ 4,241 | $ 4,978 |
Finance Receivables - Summary_3
Finance Receivables - Summary of Credit Quality Finance Receivable Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Recency delinquency | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 5,285 | $ 255,943 |
Recency delinquency | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 5,016 | 240,623 |
Recency delinquency | Total delinquency | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 269 | 15,320 |
Recency delinquency | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 152 | 7,760 |
Recency delinquency | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 102 | 7,560 |
Recency delinquency | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 15 | 0 |
Contractual delinquency | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 5,285 | 255,943 |
Contractual delinquency | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 4,993 | 220,438 |
Contractual delinquency | Total delinquency | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 292 | 35,505 |
Contractual delinquency | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 171 | 12,574 |
Contractual delinquency | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | 104 | 9,852 |
Contractual delinquency | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Finance receivables | $ 17 | $ 13,079 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software | $ 39,357 | $ 24,998 |
Less accumulated depreciation and amortization | (24,714) | (14,440) |
Property, equipment and software, net | 14,643 | 10,558 |
Capitalized technology | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software | 34,586 | 20,908 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software | 3,792 | 3,228 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software | $ 979 | $ 862 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 10.3 | $ 6.7 | $ 4.3 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |||
Accrued payroll and benefits | $ 11,779 | $ 9,987 | |
Accrual for services rendered and goods purchased | 10,631 | 5,478 | |
Deferred rent | 2,513 | 2,128 | |
Other | 4,672 | 5,192 | |
Total | [1] | $ 29,595 | $ 22,785 |
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) - USD ($) | Dec. 31, 2021 | Mar. 23, 2021 | Mar. 22, 2021 | Jan. 31, 2020 | Aug. 31, 2019 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 29, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Apr. 13, 2020 | Apr. 30, 2019 | Nov. 30, 2018 | Aug. 13, 2018 | Jan. 23, 2018 |
Debt Instrument [Line Items] | |||||||||||||||
Total | $ 50,000,000 | $ 50,000,000 | |||||||||||||
Secured borrowing payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | Opportunity Funding SPE II, LLC | ||||||||||||||
Borrowing Capacity | 38,500,000 | $ 38,500,000 | |||||||||||||
Total | $ 22,443,000 | $ 22,443,000 | $ 16,025,000 | ||||||||||||
Interest rate | 15.00% | 15.00% | |||||||||||||
Senior debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowing Capacity | $ 395,000,000 | $ 395,000,000 | |||||||||||||
Total | 251,578,000 | 251,578,000 | 131,726,000 | ||||||||||||
Senior debt | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrowing Capacity | 345,000,000 | 345,000,000 | |||||||||||||
Total | 203,000,000 | $ 203,000,000 | 117,076,000 | ||||||||||||
Senior debt | Revolving Line Of Credit, Maturing February 2022, OppFi-LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | OppFi-LLC | ||||||||||||||
Borrowing Capacity | 0 | $ 0 | $ 10,000,000 | ||||||||||||
Total | 0 | $ 0 | 5,000,000 | ||||||||||||
Maturity Date | February 2022 | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing February 2022, OppFi-LLC | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.50% | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing January 2024, Opportunity Funding SPE III, LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | Opportunity Funding SPE III, LLC | ||||||||||||||
Borrowing Capacity | 175,000,000 | $ 175,000,000 | $ 175,000,000 | $ 75,000,000 | |||||||||||
Total | 119,000,000 | $ 119,000,000 | 59,200,000 | ||||||||||||
Maturity Date | January 2024 | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing January 2024, Opportunity Funding SPE III, LLC | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 6.00% | 6.00% | |||||||||||||
Senior debt | Revolving Line Of Credit, Maturing October 2023, Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC | ||||||||||||||
Borrowing Capacity | 75,000,000 | $ 75,000,000 | $ 75,000,000 | ||||||||||||
Total | 45,900,000 | $ 45,900,000 | 24,222,000 | ||||||||||||
Maturity Date | April 2024 | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing October 2023, Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 7.25% | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing April 2023, Opportunity Funding SPE VI, LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | Opportunity Funding SPE VI, LLC | ||||||||||||||
Borrowing Capacity | 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||||||||
Total | 30,600,000 | $ 30,600,000 | 16,148,000 | ||||||||||||
Maturity Date | April 2023 | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing April 2023, Opportunity Funding SPE VI, LLC | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 7.25% | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing February 2024, Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC | ||||||||||||||
Borrowing Capacity | 45,000,000 | $ 25,000,000 | $ 45,000,000 | $ 45,000,000 | |||||||||||
Total | $ 7,500,000 | $ 7,500,000 | 12,506,000 | ||||||||||||
Maturity Date | February 2024 | ||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing February 2024, Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 3.85% | 4.25% | 3.85% | ||||||||||||
Senior debt | Term loan, net | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | OppFi-LLC | ||||||||||||||
Borrowing Capacity | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | $ 25,000,000 | |||||||||||
Total | 48,578,000 | $ 48,578,000 | 14,650,000 | ||||||||||||
Maturity Date | March 2025 | ||||||||||||||
Senior debt | Term loan, net | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 10.00% | 14.00% | 10.00% | ||||||||||||
Subordinated debt - related party | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | OppFi-LLC | ||||||||||||||
Borrowing Capacity | 0 | $ 0 | $ 4,000,000 | ||||||||||||
Total | $ 0 | $ 0 | 4,000,000 | ||||||||||||
Interest rate | 14.00% | 14.00% | |||||||||||||
Maturity Date | December 2023 | ||||||||||||||
Other debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Borrower | OppFi-LLC | ||||||||||||||
Borrowing Capacity | $ 0 | $ 0 | $ 6,400,000 | ||||||||||||
Total | $ 0 | $ 0 | $ 6,354,000 | ||||||||||||
Interest rate | 1.00% | 1.00% | |||||||||||||
Maturity Date | April 2022 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | Dec. 31, 2021USD ($) | Sep. 13, 2021USD ($) | Mar. 30, 2021USD ($) | Mar. 29, 2021USD ($) | Mar. 23, 2021 | Mar. 22, 2021 | Jan. 31, 2020USD ($) | Jan. 23, 2018USD ($) | May 31, 2020USD ($) | Aug. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)option | Sep. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 13, 2020USD ($) | Nov. 30, 2018USD ($) | Aug. 13, 2018USD ($) | |
Short-term Debt [Line Items] | |||||||||||||||||||||
Secured debt | [1] | $ 22,443,000 | $ 22,443,000 | $ 16,025,000 | |||||||||||||||||
Interest expense | 21,809,000 | 18,722,000 | $ 20,091,000 | ||||||||||||||||||
Amortized debt issuance costs | 2,310,000 | 1,945,000 | 1,785,000 | ||||||||||||||||||
Debt issuance costs, net | [1] | 1,525,000 | 1,525,000 | 2,598,000 | |||||||||||||||||
Interest expense paid | 22,041,000 | 19,973,000 | 19,687,000 | ||||||||||||||||||
Outstanding debt | 50,000,000 | 50,000,000 | |||||||||||||||||||
Interest expense paid to related party | 137,000 | 561,000 | 560,000 | ||||||||||||||||||
Paycheck Protection Program, CARES Act | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Outstanding debt | 0 | 0 | |||||||||||||||||||
Paycheck Protection Program, CARES Act | Extinguishment of Debt, Principal | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Extinguishment of debt, amount | $ 6,400,000 | ||||||||||||||||||||
Paycheck Protection Program, CARES Act | Extinguishment of Debt, Interest | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Interest expense | $ 100,000 | ||||||||||||||||||||
Secured borrowing payable | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Purchase commitment by the unrelated third party | $ 165,000,000 | $ 65,000,000 | |||||||||||||||||||
Purchase commitment by the unrelated third party, additional commitment | $ 100,000,000 | $ 100,000,000 | |||||||||||||||||||
Finance receivable purchased | 148,900,000 | 148,900,000 | 79,800,000 | ||||||||||||||||||
Secured debt | 22,400,000 | 22,400,000 | 16,000,000 | ||||||||||||||||||
Interest expense | 2,700,000 | 2,300,000 | 1,700,000 | ||||||||||||||||||
Capitalized issuance costs | 200,000 | ||||||||||||||||||||
Amortized debt issuance costs | 29,000 | 100,000 | 100,000 | ||||||||||||||||||
Debt issuance costs, net | 0 | 0 | 29,000 | ||||||||||||||||||
Debt agreement, maximum available amount | 38,500,000 | 38,500,000 | |||||||||||||||||||
Outstanding debt | 22,443,000 | 22,443,000 | 16,025,000 | ||||||||||||||||||
Secured borrowing payable | SPE II, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Percentage of unsecured finance receivable sold | 97.50% | ||||||||||||||||||||
Percentage of preferred return | 15.00% | ||||||||||||||||||||
Term of extension | 1 year | ||||||||||||||||||||
Number of options to renew | option | 2 | ||||||||||||||||||||
Term of purchase period renewal | 18 months | ||||||||||||||||||||
Senior debt | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Debt agreement, maximum available amount | 395,000,000 | 395,000,000 | |||||||||||||||||||
Outstanding debt | 251,578,000 | 251,578,000 | 131,726,000 | ||||||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing February 2022, OppFi-LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Capitalized issuance costs | 300,000 | ||||||||||||||||||||
Amortized debt issuance costs | 21,000 | 24,000 | 200,000 | ||||||||||||||||||
Debt issuance costs, net | 0 | 0 | 21,000 | ||||||||||||||||||
Debt agreement, maximum available amount | 0 | 0 | $ 10,000,000 | ||||||||||||||||||
Interest expense paid | 35,000 | 200,000 | 300,000 | ||||||||||||||||||
Outstanding debt | 0 | 0 | 5,000,000 | ||||||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing January 2024, Opportunity Funding SPE III, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Interest expense | 7,300,000 | 7,400,000 | 11,700,000 | ||||||||||||||||||
Capitalized issuance costs | 2,100,000 | ||||||||||||||||||||
Amortized debt issuance costs | 700,000 | 700,000 | 900,000 | ||||||||||||||||||
Debt issuance costs, net | 800,000 | 800,000 | 1,500,000 | ||||||||||||||||||
Debt agreement, maximum available amount | 175,000,000 | $ 175,000,000 | $ 75,000,000 | 175,000,000 | |||||||||||||||||
Debt agreement, interest payment frequency | monthly | ||||||||||||||||||||
Basis for effective rate | one-month LIBOR plus 6% with a 2% LIBOR floor | ||||||||||||||||||||
Outstanding debt | 119,000,000 | 119,000,000 | 59,200,000 | ||||||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing October 2023, Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Interest expense | 3,500,000 | 3,400,000 | 2,100,000 | ||||||||||||||||||
Capitalized issuance costs | 1,500,000 | ||||||||||||||||||||
Amortized debt issuance costs | 500,000 | 400,000 | 200,000 | ||||||||||||||||||
Debt issuance costs, net | 400,000 | 400,000 | 500,000 | ||||||||||||||||||
Debt agreement, maximum available amount | 75,000,000 | $ 75,000,000 | 75,000,000 | ||||||||||||||||||
Debt agreement, interest payment frequency | monthly | ||||||||||||||||||||
Outstanding debt | 45,900,000 | 45,900,000 | 24,222,000 | ||||||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing April 2023, Opportunity Funding SPE VI, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Interest expense | 2,400,000 | 2,300,000 | 1,400,000 | ||||||||||||||||||
Capitalized issuance costs | 900,000 | ||||||||||||||||||||
Amortized debt issuance costs | 300,000 | 300,000 | 200,000 | ||||||||||||||||||
Debt issuance costs, net | 100,000 | 100,000 | 400,000 | ||||||||||||||||||
Debt agreement, maximum available amount | 50,000,000 | $ 50,000,000 | 50,000,000 | ||||||||||||||||||
Debt agreement, interest payment frequency | monthly | ||||||||||||||||||||
Outstanding debt | 30,600,000 | 30,600,000 | 16,148,000 | ||||||||||||||||||
Senior debt | Revolving Line Of Credit, Maturing February 2024, Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Interest expense | 400,000 | 500,000 | 200,000 | ||||||||||||||||||
Capitalized issuance costs | 900,000 | ||||||||||||||||||||
Amortized debt issuance costs | 400,000 | 200,000 | 100,000 | ||||||||||||||||||
Debt issuance costs, net | 300,000 | 300,000 | 100,000 | ||||||||||||||||||
Debt agreement, maximum available amount | $ 45,000,000 | $ 25,000,000 | 45,000,000 | $ 45,000,000 | |||||||||||||||||
Debt agreement, interest payment frequency | monthly | ||||||||||||||||||||
Basis for effective rate | LIBOR plus 3.85% with a 0.4% LIBOR floor | ||||||||||||||||||||
Outstanding debt | $ 7,500,000 | 7,500,000 | 12,506,000 | ||||||||||||||||||
Senior debt | Term loan, net | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Interest expense | 5,300,000 | 2,600,000 | 2,600,000 | ||||||||||||||||||
Capitalized issuance costs | 2,300,000 | ||||||||||||||||||||
Amortized debt issuance costs | 400,000 | 200,000 | 200,000 | ||||||||||||||||||
Debt issuance costs, net | 1,400,000 | 1,400,000 | 300,000 | ||||||||||||||||||
Debt agreement, maximum available amount | 50,000,000 | 50,000,000 | $ 50,000,000 | $ 25,000,000 | |||||||||||||||||
Principal amount of debt | 50,000,000 | 50,000,000 | 15,000,000 | ||||||||||||||||||
Proceeds from draw down of available commitment | $ 35,000,000 | ||||||||||||||||||||
Outstanding debt | 48,578,000 | 48,578,000 | 14,650,000 | ||||||||||||||||||
Unamortized discount | $ 0 | $ 0 | 19,000 | ||||||||||||||||||
Senior debt | London Interbank Offered Rate (LIBOR) | Revolving Line Of Credit, Maturing February 2022, OppFi-LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 2.50% | ||||||||||||||||||||
Senior debt | London Interbank Offered Rate (LIBOR) | Revolving Line Of Credit, Maturing January 2024, Opportunity Funding SPE III, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 6.00% | 6.00% | |||||||||||||||||||
Basis spread on variable rate floor | 2.00% | ||||||||||||||||||||
Senior debt | London Interbank Offered Rate (LIBOR) | Revolving Line Of Credit, Maturing October 2023, Opportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 7.25% | ||||||||||||||||||||
Senior debt | London Interbank Offered Rate (LIBOR) | Revolving Line Of Credit, Maturing April 2023, Opportunity Funding SPE VI, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 7.25% | ||||||||||||||||||||
Senior debt | London Interbank Offered Rate (LIBOR) | Revolving Line Of Credit, Maturing February 2024, Opportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 3.85% | 4.25% | 3.85% | ||||||||||||||||||
Basis spread on variable rate floor | 0.40% | ||||||||||||||||||||
Senior debt | London Interbank Offered Rate (LIBOR) | Term loan, net | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Basis spread on variable rate | 10.00% | 14.00% | 10.00% | ||||||||||||||||||
Subordinated debt - related party | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Debt agreement, maximum available amount | $ 0 | $ 4,000,000 | $ 0 | ||||||||||||||||||
Debt agreement, interest payment frequency | quarterly | ||||||||||||||||||||
Outstanding debt | 0 | 0 | 4,000,000 | ||||||||||||||||||
Interest expense paid to related party | 100,000 | 600,000 | $ 600,000 | ||||||||||||||||||
Other debt | |||||||||||||||||||||
Short-term Debt [Line Items] | |||||||||||||||||||||
Debt agreement, maximum available amount | 0 | 0 | $ 6,400,000 | ||||||||||||||||||
Outstanding debt | $ 0 | $ 0 | $ 6,354,000 | ||||||||||||||||||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Borrowings - Summary of Require
Borrowings - Summary of Required Payments for Borrowings, Excluding Secured Borrowing and Revolving Lines of Credit (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 50,000 |
2026 | 0 |
Total | $ 50,000 |
Warrants - Summary of Fair Valu
Warrants - Summary of Fair Value of Warrant Units Estimated at Option Pricing Model (Detail) | Dec. 31, 2020yr |
Expected term | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of the warrant | 3 |
Volatility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of the warrant | 0.520 |
Discount for lack of marketability | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of the warrant | 0.450 |
Risk free rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of the warrant | 0.002 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2021USD ($)day$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 20, 2021USD ($) | Jul. 19, 2021USD ($) | |
Class of Warrant or Right [Line Items] | |||||
Derivative liability, Fair value | $ | $ 1,300,000 | $ 0 | $ 5,500,000 | ||
Warrant liabilities | $ | $ 11,240,000 | 0 | |||
Change in fair value of warrant liability | $ | $ 26,405,000 | $ 0 | $ 0 | ||
Public Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in shares) | shares | 11,887,500 | ||||
Exercise price of warrants or rights (in dollars per share) | $ / shares | $ 11.50 | ||||
Expiration period | 5 years | ||||
Redemption price (in dollars per share) | $ / shares | $ 0.01 | ||||
Redemption period | 30 days | ||||
Warrant, number of trading days of sale price of common stock for redemption | day | 20 | ||||
Warrant, number of consecutive trading days | day | 30 | ||||
Change in fair value of warrant liability | $ | $ 19,300,000 | ||||
Public Warrants | Class A Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Number of shares entitled to holders of each whole warrant (in shares) | shares | 1 | ||||
Redemption trigger price (in dollars per share) | $ / shares | $ 18 | ||||
Private Unit Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in shares) | shares | 3,451,937 | ||||
Change in fair value of warrant liability | $ | $ (7,100,000) | ||||
$11.50 Exercise Price Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price of warrants or rights (in dollars per share) | $ / shares | $ 11.50 | ||||
$11.50 Exercise Price Warrants | Class A Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in shares) | shares | 2,539,437 | ||||
$15 Exercise Price Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price of warrants or rights (in dollars per share) | $ / shares | $ 15 | ||||
Expiration period | 10 years | ||||
$15 Exercise Price Warrants | Class A Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in shares) | shares | 912,500 |
Stockholders_ Equity_Members__2
Stockholders’ Equity/Members’ Equity - Additional information (Details) | Jul. 20, 2021$ / sharesshares | Dec. 31, 2021vote$ / sharesshares | Dec. 31, 2021vote$ / sharesshares |
Class of Stock [Line Items] | |||
Ownership interest held, percent | 11.80% | 12.40% | 12.40% |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Unit conversion (in shares) | 161,767 | ||
Common stock, shares authorized (in shares) | 379,000,000 | 379,000,000 | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stocks, number of votes per share | vote | 1 | 1 | |
Common stock, shares, issued (in shares) | 12,977,690 | 13,631,484 | 13,631,484 |
Common stock, shares, outstanding (in shares) | 12,977,690 | 13,631,484 | 13,631,484 |
Class A Common Stock | Common Stock | |||
Class of Stock [Line Items] | |||
Vesting of restricted stock units (in shares) | 5,175 | ||
Class A Common Stock | OppFi Units Conversion | |||
Class of Stock [Line Items] | |||
Unit conversion (in shares) | 486,852 | ||
Common stock, shares, issued (in shares) | 13,464,542 | ||
Common stock, shares, outstanding (in shares) | 13,464,542 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 6,000,000 | 6,000,000 | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stocks, number of votes per share | vote | 1 | 1 | |
Common stock, shares, issued (in shares) | 0 | 0 | |
Common stock, shares, outstanding (in shares) | 0 | 0 | |
Class V Voting Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 115,000,000 | 115,000,000 | |
Common stock, par or stated value per share (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Common stocks, number of votes per share | vote | 1 | 1 | |
Common stock, shares, issued (in shares) | 96,338,474 | 96,338,474 | |
Common stock, shares, outstanding (in shares) | 96,338,474 | 96,338,474 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Jul. 20, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation not yet recognized related to unvested options | $ 6,100,000 | $ 6,100,000 | |||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 2.45 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 900,000 | ||||
Unvested award, cost not yet recognized, period for recognition | 3 years 6 months | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years 7 months 6 days | ||||
Stock-based compensation expense | $ 1,500,000 | ||||
Vested in period, not settled (in shares) | 6,162 | 6,162 | |||
Unrecognized compensation expense | $ 12,200,000 | $ 12,200,000 | |||
Restricted Stock Units (RSUs) | Employees and Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Restricted Stock Units (RSUs) | Director | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One | Employees and Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 25.00% | ||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two | Employees and Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 36 months | ||||
Award vesting percentage | 75.00% | ||||
Performance stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Stock-based compensation expense | $ 100,000 | ||||
Unvested award, cost not yet recognized, period for recognition | 3 years 9 months 18 days | ||||
Unrecognized compensation expense | 500,000 | $ 500,000 | |||
Profit Unit Interest | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 500,000 | $ 100,000 | $ 100,000 | ||
Unrecognized compensation expense | $ 0 | $ 0 | $ 400,000 | ||
Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum eligible employee compensation contribution percentage | 10.00% | ||||
Fair market value share purchase percentage | 85.00% | ||||
Equity Incentive Plan 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period subject to annual increases | 10 years | ||||
Percentage of outstanding stock maximum | 2.00% | ||||
Equity Incentive Plan 2021 | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Award expiration period | 10 years | ||||
Equity Incentive Plan 2021 | Stock Options | Share-based Payment Arrangement, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Award vesting percentage | 25.00% | ||||
Equity Incentive Plan 2021 | Stock Options | Share-based Payment Arrangement, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 36 months | ||||
Award vesting percentage | 75.00% | ||||
Class A Common Stock | Employee Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance (in shares) | 1,200,000 | 1,200,000 | |||
Percentage of outstanding stock maximum | 1.00% | ||||
Outstanding stock maximum (in shares) | 2,400,000 | ||||
Shares purchased under the ESPP (in shares) | 0 | ||||
Class A Common Stock | Equity Incentive Plan 2021 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance (in shares) | 11,500,000 | 11,500,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Common Stock Options | ||
Outstanding beginning balance (in shares) | 0 | |
Granted (in shares) | 5,600,000 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (2,225,000) | |
Outstanding ending balance (in shares) | 3,375,000 | |
Vested and exercisable (in shares) | 0 | |
Weighted-Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 15.23 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 15.23 | |
Outstanding ending balance (in dollars per share) | 15.23 | |
Vested and exercisable (in dollars per share) | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-Average Remaining Contractual Life (Years) | 9 years 7 months 6 days | |
Vested and exercisable, Weighted-Average Remaining Contractual Life (Years) | 0 years | |
Aggregate Intrinsic Value | $ 0 | $ 0 |
Vested and exercisable, Aggregate Intrinsic Value | $ 0 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Valuation Assumptions, Options (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 32.50% |
Risk free rate | 0.91% |
Risk-free rate | 1.25% |
Dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 5 years 1 month 6 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 6 years 1 month 6 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 2,109,320 |
Vested (in shares) | shares | (11,337) |
Forfeited (in shares) | shares | (279,453) |
Outstanding ending balance (in shares) | shares | 1,818,530 |
Weighted-Average Grant Date Fair Value | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 7.59 |
Vested (in dollars per share) | $ / shares | 7.69 |
Forfeited (in dollars per share) | $ / shares | 7.69 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 7.58 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of PSU Activity (Details) - Performance stock units | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares | |
Outstanding beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 99,868 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (20,961) |
Outstanding ending balance (in shares) | shares | 78,907 |
Weighted-Average Grant Date Fair Value | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 7.69 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 7.69 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 7.69 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Valuation Assumptions, Profit Unit Interests (Detail) - Profit Unit Interest | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 3 years |
Volatility | 68.00% |
Discount for lack of marketability | 45.00% |
Risk free rate | 0.20% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Profit Unit Interest (Detail) - Profit Unit Interest - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Units | |||
Outstanding beginning balance (in shares) | 12,202,135 | 9,798,718 | 9,279,761 |
Granted (in shares) | 0 | 2,413,833 | 619,597 |
Forfeited (in shares) | (591,078) | (10,416) | (100,640) |
Exchanged in reverse recapitalization (in shares) | (11,611,057) | ||
Outstanding ending balance (in shares) | 0 | 12,202,135 | 9,798,718 |
Avg Fair Value at Grant Date | |||
Outstanding beginning balance (in dollars per share) | $ 0.08 | $ 0.05 | $ 0.04 |
Granted (in dollars per share) | 0 | 0.17 | 0.22 |
Forfeited (in dollars per share) | 0.10 | 0.03 | 0.17 |
Exchanged in reverse recapitalization (in dollars per share) | 0.08 | ||
Outstanding ending balance (in dollars per share) | $ 0 | $ 0.08 | $ 0.05 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Non-vested Units (Detail) - Non-vested Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Units | |||
Outstanding beginning balance (in shares) | 4,738,333 | 3,466,747 | 4,529,290 |
Granted (in shares) | 0 | 2,413,833 | 619,597 |
Vested (in shares) | (2,933,300) | (1,131,831) | (1,581,500) |
Forfeited (in shares) | (591,078) | (10,416) | (100,640) |
Exchanged in reverse recapitalization (in shares) | (1,213,955) | ||
Outstanding ending balance (in shares) | 0 | 4,738,333 | 3,466,747 |
Avg Fair Value at Grant Date | |||
Outstanding beginning balance (in dollars per share) | $ 0.12 | $ 0.10 | $ 0.06 |
Granted (in dollars per share) | 0 | 0.17 | 0.22 |
Vested (in dollars per share) | 0.08 | 0.13 | 0.04 |
Forfeited (in dollars per share) | 0.10 | 0.03 | 0.17 |
Exchanged in reverse recapitalization (in dollars per share) | 0.22 | ||
Outstanding ending balance (in dollars per share) | $ 0 | $ 0.12 | $ 0.10 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 5 Months Ended | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 20, 2021USD ($) | |
Income Tax Examination [Line Items] | |||||
Provision for income taxes | $ 311,000 | $ 0 | $ 0 | ||
Income before income taxes | $ 90,106,000 | $ 77,516,000 | $ 32,995,000 | ||
Effective income tax rate, percent | 0.34% | 0.00% | 0.00% | ||
Statutory income tax rate, percent | 21.00% | 0.00% | 0.00% | ||
Investment in partnership | $ 16,951,000 | $ 16,951,000 | $ 0 | $ 18,900,000 | |
Percent of tax benefits with provided payment | 0.90 | ||||
Percent of tax benefits retained by company | 0.10 | ||||
Tax receivable agreement liability | 300,000 | ||||
Unrecognized tax benefits | 0 | 0 | $ 0 | ||
Income tax examination, penalties and interest accrued | 0 | 0 | |||
Domestic Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Net operating loss carryovers | 7,700,000 | 7,700,000 | |||
State and Local Jurisdiction | |||||
Income Tax Examination [Line Items] | |||||
Net operating loss carryovers | $ 4,900,000 | $ 4,900,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ (4) | $ 0 | $ 0 |
State | 582 | 0 | 0 |
Deferred: | |||
Federal | (225) | 0 | 0 |
State | (42) | 0 | 0 |
Provision for income taxes | $ 311 | $ 0 | $ 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amount | |||
Federal income taxes at statutory rate | $ 18,922 | $ 0 | $ 0 |
State tax expense, net of federal income tax benefit | 549 | 0 | 0 |
Fair market value adjustment of warrants | (5,545) | 0 | 0 |
Effect of flow-through entity | (13,615) | 0 | 0 |
Provision for income taxes | $ 311 | $ 0 | $ 0 |
Percentage | |||
Federal income taxes at statutory rate | 21.00% | 0.00% | 0.00% |
State tax expense, net of federal income tax benefit | 0.61% | 0.00% | 0.00% |
Fair market value adjustment of warrants | (6.16%) | 0.00% | 0.00% |
Effect of flow-through entity | (15.11%) | 0.00% | 0.00% |
Total | 0.34% | 0.00% | 0.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 20, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||
Investment in partnership | $ 16,951 | $ 18,900 | $ 0 |
Tax receivable agreement liability | 5,583 | 0 | |
Net operating loss | 1,609 | 0 | |
Intangibles | 618 | 0 | |
Stock compensation | 603 | 0 | |
Other | 229 | 0 | |
Deferred tax asset | $ 25,593 | $ 0 |
Interest and Loan Related Inc_3
Interest and Loan Related Income, Net - Summary of Interest and Loan Related Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest and Fee Income, Loans and Leases [Abstract] | |||
Interest and loan related income, gross | $ 349,029 | $ 322,165 | $ 267,166 |
Amortization of loan origination costs | 0 | (31,940) | (38,968) |
Interest and loan related income, net | $ 349,029 | $ 290,225 | $ 228,198 |
Interest Expense and Amortize_3
Interest Expense and Amortized Debt Issuance Costs - Summary of Interest Expense And Amortized Debt Issuance Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Expense And Amortized Debt Issuance Costs [Abstract] | |||
Interest expense | $ 21,809 | $ 18,722 | $ 20,091 |
Amortized debt issuance costs | 2,310 | 1,945 | 1,785 |
Interest expense and amortized debt issuance costs | $ 24,119 | $ 20,667 | $ 21,876 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Dec. 31, 2021 | Jul. 20, 2021 | Jul. 19, 2021 | Dec. 31, 2020 |
Financial assets: | ||||
Finance receivables at fair value, excluding accrued interest and fees receivable | $ 373,253,000 | |||
Financial liabilities: | ||||
Warrant liabilities | 11,240,000 | $ 0 | ||
Warrant units | $ 0 | $ 5,500,000 | 1,300,000 | |
Fair Value, Recurring | Carrying Value | ||||
Financial assets: | ||||
Finance receivables at fair value, excluding accrued interest and fees receivable | 373,253,000 | |||
Financial liabilities: | ||||
Warrant units | 0 | 1,309,000 | ||
Fair Value, Recurring | Carrying Value | Public Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 8,083,000 | |||
Fair Value, Recurring | Carrying Value | Private Placement Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 3,157,000 | |||
Fair Value, Recurring | Fair Value Measurements | Level 1 | ||||
Financial assets: | ||||
Finance receivables at fair value, excluding accrued interest and fees receivable | 0 | |||
Financial liabilities: | ||||
Warrant units | 0 | |||
Fair Value, Recurring | Fair Value Measurements | Level 1 | Public Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 8,083,000 | |||
Fair Value, Recurring | Fair Value Measurements | Level 1 | Private Placement Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 0 | |||
Fair Value, Recurring | Fair Value Measurements | Level 2 | ||||
Financial assets: | ||||
Finance receivables at fair value, excluding accrued interest and fees receivable | 0 | |||
Financial liabilities: | ||||
Warrant units | 0 | |||
Fair Value, Recurring | Fair Value Measurements | Level 2 | Public Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 0 | |||
Fair Value, Recurring | Fair Value Measurements | Level 2 | Private Placement Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 0 | |||
Fair Value, Recurring | Fair Value Measurements | Level 3 | ||||
Financial assets: | ||||
Finance receivables at fair value, excluding accrued interest and fees receivable | 373,253,000 | |||
Financial liabilities: | ||||
Warrant units | $ 1,309,000 | |||
Fair Value, Recurring | Fair Value Measurements | Level 3 | Public Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | 0 | |||
Fair Value, Recurring | Fair Value Measurements | Level 3 | Private Placement Warrants | ||||
Financial liabilities: | ||||
Warrant liabilities | $ 3,157,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Measurement Input and Valuation Techniques of Installment Financing Receivables (Detail) | Dec. 31, 2021 |
Interest rate on finance receivables | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 1.4760 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 0.2180 |
Servicing cost | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 0.0500 |
Remaining life | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 0.62 |
Default rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 0.1770 |
Accrued interest | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 0.0320 |
Prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Installment financing receivables, fair value measurement | 0.2100 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 20, 2021 | Jul. 19, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | $ 1,300,000 | $ 0 | $ 5,500,000 | ||
Level 3 | Warrant units | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant expense | $ 4,208,000 | $ 1,197,000 | $ 100,000 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Fair Value Measurement Input and Valuation Techniques of Private Placement Warrants (Detail) - Level 3 - Warrants | Dec. 31, 2021USD ($) | Jul. 20, 2021USD ($) |
$11.50 Exercise Price Warrants | Risk free rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 0.0119 | 0.0069 |
$11.50 Exercise Price Warrants | Expected term (years) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 4,600 | 5,000 |
$11.50 Exercise Price Warrants | Volatility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 0.4840 | 0.3650 |
$11.50 Exercise Price Warrants | Exercise price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 11.50 | 11.50 |
$11.50 Exercise Price Warrants | Fair value of warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 0.74 | 2.80 |
$15 Exercise Price Warrants | Risk free rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 0.0150 | 0.0123 |
$15 Exercise Price Warrants | Expected term (years) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 9,600 | 10,000 |
$15 Exercise Price Warrants | Volatility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 0.4840 | 0.3600 |
$15 Exercise Price Warrants | Exercise price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 15 | 15 |
$15 Exercise Price Warrants | Fair value of warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants, fair value measurement | 1.40 | 3.50 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Changes in Fair Value of Private Placement Warrants (Detail) - Level 3 - Warrants $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Private Placement Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 0 |
Reverse recapitalization | 10,304 |
Change in fair value | (7,147) |
Ending Balance | 3,157 |
$11.50 Exercise Price Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | 0 |
Reverse recapitalization | 7,110 |
Change in fair value | (5,231) |
Ending Balance | 1,879 |
$15 Exercise Price Warrants | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | 0 |
Reverse recapitalization | 3,194 |
Change in fair value | (1,916) |
Ending Balance | $ 1,278 |
Fair Value Measurements - Sch_5
Fair Value Measurements - Schedule of Changes in Fair Value of Warrant Units (Detail) - Level 3 - Warrant units - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | $ 1,309 | $ 112 | |
Change in fair value | 4,208 | 1,197 | $ 100 |
Warrant units exercised | (5,517) | ||
Ending Balance | $ 0 | $ 1,309 | $ 112 |
Fair Value Measurements - Sch_6
Fair Value Measurements - Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash | [1] | $ 25,064 | $ 25,601 |
Restricted cash | [1] | 37,298 | 20,056 |
Accrued interest and fees receivable | 10,637 | ||
Finance receivables at amortized cost, net | [1] | 4,220 | 222,243 |
Liabilities: | |||
Reserve for repurchase liability | 4,241 | ||
Secured debt | [1] | 22,443 | 16,025 |
Senior debt, net | [1] | 251,578 | 131,726 |
Subordinated debt - related party | 0 | 4,000 | |
Other debt | 0 | 6,354 | |
Level 1 | |||
Assets | |||
Cash | 25,064 | 25,601 | |
Restricted cash | 37,298 | 20,056 | |
Accrued interest and fees receivable | 10,637 | ||
Finance receivables at amortized cost, net | 0 | 0 | |
Liabilities: | |||
Reserve for repurchase liability | 0 | ||
Secured debt | 0 | 0 | |
Senior debt, net | 0 | 0 | |
Subordinated debt - related party | 0 | ||
Other debt | 0 | ||
Level 2 | |||
Assets | |||
Cash | 0 | 0 | |
Restricted cash | 0 | 0 | |
Accrued interest and fees receivable | 0 | ||
Finance receivables at amortized cost, net | 0 | 0 | |
Liabilities: | |||
Reserve for repurchase liability | 0 | ||
Secured debt | 0 | 0 | |
Senior debt, net | 0 | 0 | |
Subordinated debt - related party | 0 | ||
Other debt | 0 | ||
Level 3 | |||
Assets | |||
Cash | 0 | 0 | |
Restricted cash | 0 | 0 | |
Accrued interest and fees receivable | 0 | ||
Finance receivables at amortized cost, net | 4,220 | 287,437 | |
Liabilities: | |||
Reserve for repurchase liability | 4,241 | ||
Secured debt | 22,443 | 16,025 | |
Senior debt, net | $ 251,578 | 131,726 | |
Subordinated debt - related party | 4,000 | ||
Other debt | $ 6,354 | ||
[1] | (1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below. |
Commitments, Contingencies an_3
Commitments, Contingencies and Related Party Transactions - Additional Information (Detail) - USD ($) | Nov. 18, 2021 | Aug. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 29, 2021 | Mar. 29, 2021 | Nov. 26, 2019 | Nov. 25, 2019 |
Loss Contingencies [Line Items] | |||||||||
Letters of credit outstanding, amount | $ 0 | $ 0 | |||||||
Rent expense | 3,800,000 | 3,100,000 | $ 2,100,000 | ||||||
Litigation settlement, amount awarded to other party | $ 300,000 | ||||||||
Unpaid settlement funds | 1,500,000 | ||||||||
Interest expense - related party | 137,000 | 561,000 | 560,000 | ||||||
Management fees | 350,000 | 700,000 | 0 | ||||||
Unpaid severance benefits | 1,300,000 | ||||||||
Subordinated debt - related party | |||||||||
Loss Contingencies [Line Items] | |||||||||
Debt agreement, maximum available amount | 0 | $ 4,000,000 | |||||||
Interest expense - related party | $ 100,000 | $ 600,000 | $ 600,000 | ||||||
Affiliated Entity | Management Fee Agreement Termination | |||||||||
Loss Contingencies [Line Items] | |||||||||
Related party transaction costs | $ 3,000,000 | ||||||||
Letter of Credit | |||||||||
Loss Contingencies [Line Items] | |||||||||
Debt agreement, maximum available amount | $ 1,800,000 | $ 1,000,000 | $ 1,500,000 |
Commitments, Contingencies an_4
Commitments, Contingencies and Related Party Transactions - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments Contingencies And Related Party Transactions [Abstract] | |
2022 | $ 2,271 |
2023 | 2,339 |
2024 | 2,410 |
2025 | 2,482 |
2026 | 2,557 |
Thereafter | 10,283 |
Total | $ 22,342 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Financing Receivable - Geographic Concentration Risk | Dec. 31, 2021 | Dec. 31, 2020 |
Florida | ||
Concentration Risk [Line Items] | ||
Concentration risk, Percentage | 14.00% | 14.00% |
Texas | ||
Concentration Risk [Line Items] | ||
Concentration risk, Percentage | 14.00% | |
California | ||
Concentration Risk [Line Items] | ||
Concentration risk, Percentage | 11.00% | |
Illinois | ||
Concentration Risk [Line Items] | ||
Concentration risk, Percentage | 13.00% |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution, percent of match | 4.00% | ||
Salaries and employee benefits | $ 1.5 | $ 1.1 | $ 0.6 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income | $ 89,795 | $ 77,516 | $ 32,995 |
Less: net income attributable to noncontrolling interest | 64,241 | ||
Net income available to Class A common stockholders - Basic | 25,554 | ||
Dilutive effect of warrants on net income to Class A common stockholders | 0 | ||
Net income available to Class A common stockholders - Diluted | $ 25,554 | ||
Denominator: | |||
Weighted average Class A common stock outstanding - Basic (in shares) | 13,218,119 | 0 | 0 |
Effect of dilutive securities: | |||
Warrants (in shares) | 0 | ||
Dilutive common unit equivalents (in shares) | 8,930 | ||
Weighted average units outstanding - diluted (in shares) | 13,227,049 | 0 | 0 |
Basic EPS (in dollars per share) | $ 1.93 | $ 0 | $ 0 |
Diluted EPS (in dollars per share) | $ 1.93 | $ 0 | $ 0 |
Stock Options | |||
Effect of dilutive securities: | |||
Dilutive securities (in shares) | 0 | ||
Restricted Stock Units (RSUs) | |||
Effect of dilutive securities: | |||
Dilutive securities (in shares) | 8,930 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Securities Excluded from Calculation of Diluted Earnings Per Share (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 20,560,058 |
Warrants | Public Warrants | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 11,887,500 |
Warrants | Private Unit Warrants | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 231,250 |
Warrants | $11.50 Exercise Price Warrants | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 2,248,750 |
Warrants | $15 Exercise Price Warrants | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 912,500 |
Warrants | Underwriter Warrants | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 59,437 |
Stock Options | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 3,375,000 |
Restricted Stock Units (RSUs) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 1,766,714 |
Performance stock units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Potential common stock (in shares) | 78,907 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) $ in Millions | Feb. 28, 2022 | Jan. 06, 2022 |
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 20 | |
Base Salary And COBRA Healthcare Expense Reimbursements | Former Chief Executive Officer | ||
Subsequent Event [Line Items] | ||
Deferred compensation arrangement with individual, maximum contractual term | 12 months | |
Pro Rata Bonus, Prior Fiscal Year | Former Chief Executive Officer | ||
Subsequent Event [Line Items] | ||
Pro rata bonus | $ 0.2 | |
Pro Rata Bonus, Current Fiscal Year | Former Chief Executive Officer | ||
Subsequent Event [Line Items] | ||
Pro rata bonus | $ 0.1 | |
Stock Options | Former Chief Executive Officer | ||
Subsequent Event [Line Items] | ||
Accelerated vesting (in shares) | 175,000 | |
Restricted Stock Units (RSUs) | Former Chief Executive Officer | ||
Subsequent Event [Line Items] | ||
Accelerated vesting (in shares) | 25,671 |