공시 • Sep 25

FlexShopper, Inc. Faces Nasdaq Compliance Challenge Amid Stock Price Deficiency

On September 18, 2025, FlexShopper, Inc. received a deficiency letter from the Nasdaq Listing Qualifications Department of the Nasdaq Stock Market LLC notifying the Company that, for a period of 30 consecutive business days, the bid price for the Company’s common stock, $0.0001 par value per share (the “Common Stock”) had closed below the $1.00 per share minimum required for continued listing on The Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1). The letter has no immediate effect on the listing of the Common Stock, which continues to trade on The Nasdaq Global Market under the symbol “FPAY” at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has until March 17, 2026 to regain compliance with the Minimum Bid Price Requirement. To regain compliance, the closing bid price for the Common Stock must be at least $1.00 per share for a minimum of ten consecutive business days during the Initial Compliance Period, unless the Staff exercises its discretion to extend this ten-day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H). If the Company does not regain compliance with the Minimum Bid Price Requirement by March 17, 2026, the Company may be eligible for an additional 180 calendar day period to regain compliance (the “Second Compliance Period”). To qualify for the Second Compliance Period, the Company would be required to transfer to The Nasdaq Capital Market (the “Capital Market”) and meet the continued listing requirement for market value of publicly held shares on the Capital Market and all other applicable requirements for initial listing on the Capital Market, except for the Capital Market’s bid price requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the deficiency during the Second Compliance Period. As part of its review process to determine whether the Second Compliance Period would be granted to the Company, the Staff would make a determination about whether it believes the Company will be able to cure the deficiency. If the Staff concludes that the Company will not be able to cure the deficiency, or if the Company does not regain compliance within the allotted compliance period(s), including any extensions that may be granted by the Staff, the Staff will provide written notice to the Company that the Common Stock will be subject to delisting. At that time, the Company may appeal the Staff’s delisting determination to a Nasdaq Hearings Panel. There can be no assurance that the Company will be able to regain compliance with the Minimum Bid Price Requirement. As previously disclosed, on April 17, 2025 the Company received a notice from the Staff of Nasdaq indicating that, as a result of not having timely filed its Annual Report on Form 10-K for the period ended December 31, 2024 (the “Form 10-K”), the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission. The Company is required to file its Form 10-K. along with its Forms 10-Q for the quarters ended March 31, 2025 and June 30, 2025, by October 13, 2025 to regain compliance with the listing rule. There can be no assurance that the Company will be able to make those SEC filings by such date.

Seeking Alpha • Sep 07

FlexShopper Is An Interesting Business But Currently Overvalued

Summary FPAY offers lease-to-own agreements to subprime customers. These leases look a lot like loans but circumvent state rate caps. The company model is centered around its own website and incorporating its payment system with vendors. It does not have stores. The sky-high interest charged to customers allows the company to face tremendously high default rates of up to 25%, while being profitable. The lease-to-own accounting is difficult. I detail my own reaccomodation of the financials to estimate true profitability. The stock is expensive right now, but the company is worth following. FlexShopper (FPAY) is an American lease-to-own financing provider. The company allows sub-prime credit consumers to pay for furniture, electric appliances and electronics in 52 weekly installments charging very high interest rates. Catering to sub-prime consumers, FPAY has high default levels. Added to its complicated lease accounting model, FPAY financial statements are difficult to understand to find out real profits. My own calculations, taking some precautions, shows that the model seems profitable. Being a risky business, FPAY pays sky-high interest rates on its also complicated financing, high as 16%. Besides its risks, industry analysis does not reveal FPAY has a significant moat. If the equity investor wants demands a correspondingly high rate of return, the current share price is too high. Additionally, the company might present moral concerns to some investors, given that it charges sky-high interest to sub-prime customers allowing them to purchase sometimes unnecessary goods. Note: Unless otherwise stated, all information has been obtained from FPAY's filings with the SEC. FPAY's competitive position and industry FPAY provides consumer financing to very sub-prime customers. The company allows a consumer to pay for furniture, electrical appliances or electronics in 52 weekly installments. For that service, it charges sky-high interest rates, of at least 100% annually. FPAY's business model is considered lease-to-own or rent-to-own. Technically, the customer is not asking for a loan, but rather renting the object, paying weekly lease installments, after which the customer gains ownership of the object. The customer has the option of returning the object at any time and cancel any future lease payments. However, in reality, the leased products lose most of their value while in charge of the lesee, therefore these leases are actually high-risk loans. I consider FPAY to be a company that provides financing, independently of when the transfer of rights occurs. It is true that it provides financing to a special group of customers in a special way, but it is financing anyway. Let's analyze the competitive characteristics of the industry. In terms of bargaining power with customers, FPAY is in a good position. The sub-prime customer that, unable to afford a less than necessary good like an iPhone or a TV set, pays for it in installments while absorbing 100% interest, is not likely very financially savvy. This customer will not be looking at the lease covenants and comparing among financial options. In my opinion the trick in this segment is availability. FPAY has to be where the customer generates the want for the object, that is either on an online or brick-and-mortar store, providing the financing quickly to close the deal. FPAY seems to believe the same, because it has several methods to quickly allow the customer to splurge on an item. For example, the company claims that its proprietary rating system can provide a credit limit for a new user in minutes. The company also offers pre-approved credit limits in a FlexShopper Wallet, and provides retailers with digital systems to quickly check credit availability. If the store is not connected with FPAY, users can send a picture of the object they want to acquire to FPAY, that will check credit availability and send the object to the customer. Another advantage for FPAY is that it does not own stores, a difference from competitors like CONN, AAN or RCII. First, this concentrates the business model around the financing aspect. Second, it allows FPAY to provide financing to customers from many retailers. FPAY could eventually find a lot of competition from two groups of bigger players. First, big retailers like Amazon could develop their own buy now pay later systems, and some actually have. They will compete with FPAY if they start lending or leasing to sub-prime consumers. A second group is other financial institutions with experience in sub-prime lending. FPAY is still a small player, would not be able to compete with these. Financial businesses face a problem most businesses do not have, and that is filtering their own customers. In order for FPAY's operations to be profitable, it has to maintain a somewhat contained default level, which means saying no to some people asking for leases. As we mentioned, FPAY has to decide whether or not to lend/lease and how much quickly, on an automatized fashion. According to the company, one of its competitive advantages is a good credit rating algorithm to decide how much to lend to whom. Of course the extreme interest rates charged by FPAY cover for enormous default losses, usually above 30% of leases. In terms of supply, FPAY's main raw material is capital. I will detail a section for capital structure exclusively but suffice is to say now that FPAY faces interest rates above 15% yearly, showing that the business is very risky. As mentioned, the financial industry is competitive, therefore we can assume that FPAY is getting a rate that closely represents its risk. Regulation is a final problem of this market. To many, what FPAY does is morally questionable, given that it lends to financially unprepared people at extremely high rates. FPAY argues that if it was not for them, no one would lend to those customers. Independently of what anyone thinks, someone could push for regulations restricting FPAY business, or FPAY's maximum rates. In fact, FPAY is not in the business of lending but in the business of leasing to avoid maximum rates in most US states. According to the NCLC, the median maximum rate on a 6-month $500 loan in the 45 states that have a limit is 35%. FPAY charges above 100%. If it branded itself as a lender, it would not be able to operate in all but 9 states. FPAY's capital structure and cost Like most financing institutions, FPAY makes uses of significant leverage. As of 2Q22, the company owed $69 million on its credit facility, $12 million in notes and $22 million in preferred cumulative stock that looks a lot like debt. That is a total of $103 million. FPAY's credit facility allows it to borrow up to $82.5 million based on its level of leased merchandise. The facility was extended in March from a previous $63 million, and matures in April 2025. The interest rate charged is 1-month LIBOR + 11%. That means the company is currently paying about 13% for this debt. Then FPAY has $12 million in notes with two lenders that are related to the company's management. These notes are subordinated to the credit facility and charge 5% above the rate of that facility. An LLC where FPAY's CFO is a member lent $1 million, with a constantly renewing maturity that now stands at April 2023. In the same fashion, but maturing in 2024, a company where FPAY's Chairman is manager lent first $4 million and now $11 million. In both cases the interest rate now stands at 18%. Finally, FPAY issued $22 million in preferred cumulative stock that pays 10% annually. Although the stock does not have a redeemable date, and can be converted into common stock at an approximate price of $3.75, it still adds to the financing cost because its dividend is cumulative. The preferred stock votes as common stock, and therefore the lender (a subsidiary of PIMCO), owns 20% of the company's votes. The weighted average interest rate is currently about 13.5%, but growing with the LIBOR rate. Given that the credit facility seems to be the most available source of funds for growth, considering it as an anchor is useful. What we can learn from FPAY's capital structure is twofold. First, its lenders know it is extremely risky. Otherwise they would not be charging 11% + LIBOR; it is the highest I have seen in all of the companies I have analyzed. Second, the company has about one chance, because all of its financing is short term. If it ever falls in disgrace because of heightened defaults, it has no long term financing to fall on, besides the preferred stock and $6 million in common equity remaining. Untangling FPAY's profitability Usually, financial businesses present their financial statements in a specific fashion that considers interest expense as the cost of goods sold. Even some leasing companies move interest to cost of goods sold. Also in most cases, financial businesses do not own the good purchased with the lent money, but rather a promise of payment. FPAY's income statement is very different because it is a lessor. In my opinion, the leasing thing is just a workaround for the maximum interest rates established in many US states. FPAY would be easier to understand if it simply considered its products as loans. What is the problem with leasing? First, the leased object is kept in the books and depreciated during the year in a straight-line. But the objects leased by FPAY do not depreciate in a straight-line. Once you open an iPhone box, it is no longer the same, even if you only had it for ten minutes. The same is true at the end of the contract, say for example on a piece of furniture used for a year that can be easily used longer but is already depreciated. Second, there is no promise of payment asset like a loan. FPAY only registers a receivable once the customer became due on a payment, and then it keeps accumulating revenue on the lease until it writes the receivable off. In the meantime, FPAY recognizes an allowance on receivables that is netted from that year's revenue. The company does not mention how much of those allowed receivables are written-back to P&L if the company recovers the object or makes the customer pay. All of this complicates understanding the true profitability of the company. Are those receivables' allowances correct? How many people defaulted on their l leases this year? How much is recovered from the repossessed objects? All of this is left unanswered. In my opinion there is an easier way to make the calculations, that is also more conservative. It is based on a few conditions. First, once the object was paid for, it is gone, its value expensed immediately. This eliminates the complication of comparing real value to depreciation. It is conservative because if the company recovers some value from the merchandise, then it is added on top of our calculations. Second, all receivables are defaulted and they are not recoverable. They will eventually be written down. According to FPAY any receivable belongs to a past due account. How many people, having the money, will stop paying a $100 a month TV set or iPhone? If FPAY's customers are not paying once, they will probably not pay at all. Also, FPAY does not disclose how much in receivables is recovered each year, only how much is written down. To find out how many receivables where generated I add current period's receivables, plus receivables written down from allowances, less previous period's receivables. Again, this supposition is conservative, because if a customer ends up paying back, then it is added on top of our calculations. For revenues, I consider gross revenues, not netted revenues, FPAY's net revenues already include a provision for receivables irrecoverability, and I simply expense all receivables. Gross revenues is the money FPAY has the right to receive, and includes some receivables. With that, FPAY has to at least pay for the merchandise it leased. Therefore I remove average gross (undepreciated) cost of leased merchandise for the year. This implies the merchandise recovery value is zero. This assumption is possible because FPAY leases ideally last 52 weeks, or a year. Then I remove all generated receivables. This is necessary because gross revenue includes receivables that I consider defaulted and irrecoverable. Expensing those two items I find the effective interest charged on the leases, discounting the principal and the defaults. The ratio of effective interest to average cost of merchandise is the effective interest rate. The calculations for the past 7 years are shown below. The calculations for 1H22 are annualized by multiplying 1H22 revenue and receivables generated by two. FPAY's reordered financial metrics (Own, based on FPAY's filings with the SEC) Net effective interest is the money that can be used to pay for SG&A, operating expenses, interest, taxes, and return to shareholders. As we considered in the financing section, debts (included cumulative preferred shares) stands at $103 million. If we remove the preferred we get close to $80 million. As the chart below shows, FPAY's financial debts are not only financing inventories. If they were, the chart would show a 2 to 1 relationship (given that inventories are shown net in here). Fundamental Chart data by YCharts But, in a profitable and long term scenario, similar to other financial businesses, the financing should match the loan book, which in this case is the lease book, or gross cost of merchandise. That is my assumption for long term debt levels. I consider a cost of debt of around 14%, that is, current 11% plus a LIBOR (or prime rate replacement next year) of 3%. If we join those two assumptions, we can remove the cost of debt from the net rate obtained by FPAY, instead of removing it as a figure. This assumes that FPAY is not replacing debt with equity, and that its cost of debt does not move. They should be reviewed in future visits but for now they suffice. FPAY Total Operating Expenses ((TTM)) data by YCharts Total operating expenses, above, includes both SG&A and operating expenses, I think $40 million is a valid estimate of forward operating expenses, although it is trending upwards. For many financial businesses, operational expense efficiency is one of the most important competitive advantages. In a competitive market, only the most efficient generate profits. Therefore operating expenses have to be followed closely in future reviews, but for now we consider $40 million going forward. FPAY has a market capitalization of $50 million. The stockholder needs a 14% rate of return, just to match what debt holders get. To generate 14% on $50 million, FPAY should generate $7 million in net income. I do not consider growth, but I am also considering a low required rate of return, given that equity usually requires more return than debt. Adding back taxes that at about 26% between federal and state (Florida), we find pre-tax income of $9.5 million to generate $7 million in net income. FPAY has NOLs for $60 million that do not expire and therefore could avoid some of those taxes for years, but we are avoiding that in a long term calculation. Therefore, after subtracting interest expenses and before operating expenses and taxes (kind of how a bank orders its income statement), FPAY should generate around $50 million. That is, $40 million for operating expenses, $2.5 million in taxes, and $7 million in net income. As I mentioned, we can consider FPAY like a bank, that earns a net interest margin on its assets. FPAY's interest earning assets are its leased products. As the table with the reordered financial statements shows, the effective rate that FPAY gets after expensing defaults has moved a lot, from 25% in 2016 to 80% in 2020, back to 27% this year. A big factor influencing these effective returns is the level of defaults. A reduction from 43% to 38% in the default rate this year would move the effective rate from 27% to 40%. Therefore, determining a long term effective rate of return, or the mean around which it would move around the business cycle, is difficult. Just to show the calculations that follow to reach a value for the company, let us define the effective rate at 40%. That is, after expensing all receivables, which we consider irrecoverable defaults, FPAY can repay all of its inventory and has 40% of the inventory value left as interest. In the banking industry this would be called gross interest, from which FPAY should remove the interest it pays on its own debt. We assume a 15% rate for debt. Given that we considered that the debt level should follow the gross cost of merchandise, and that FPAY's gross interest is also derived from gross merchandise, it is possible to subtract the debt rate from the gross rate to find something akin to the net interest margin. In this case, assuming 40% and 15% debt, we arrive to a 25% net interest margin. Going back to the rate of return and necessary net income section, we mentioned that to cover operational expenses, taxes and generate a $7 million yearly net income, FPAY needed $50 million in net interest. Assuming a net interest margin of 25%, calculated above, FPAY needs to lease merchandise for a gross value of $200 million. The problem is that FPAY currently only has $70 million in leased merchandise. With the assumptions provided, FPAY is far from being able to provide a decent return on its current stock price.

스노우플레이크 점수
가치 평가	2/6
미래 성장	0/6
과거 실적	0/6
재무 건전성	2/6
배당	0/6

과거 주가
현재 주가	US$0.000001
52주 최고가	US$1.45
52주 최저가	US$0.000001
베타	-15.28
1개월 변동	0%
3개월 변동	-99.00%
1년 변동	-99.90%
3년 변동	-99.90%
5년 변동	-99.90%
IPO 이후 변동	-99.90%

	FPAY.Q	US Diversified Financial	US 시장
7D	0%	-0.6%	1.2%
1Y	-99.9%	-8.6%	28.7%

FPAY.Q volatility
FPAY.Q Average Weekly Movement	n/a
Diversified Financial Industry Average Movement	6.1%
Market Average Movement	7.2%
10% most volatile stocks in US Market	16.4%
10% least volatile stocks in US Market	3.1%

FPAY.Q 기초 통계
시가총액	US$24.00
순이익 (TTM)	-US$4.69m
매출 (TTM)	US$139.80m

FPAY.Q 손익계산서 (TTM)
매출	US$139.80m
매출원가	US$20.36m
총이익	US$119.44m
기타 비용	US$124.13m
순이익	-US$4.69m

주당순이익(EPS)	-0.19
총이익률	85.44%
순이익률	-3.36%
부채/자본 비율	488.8%

데이터	최종 업데이트 (UTC 시간)
기업 분석	2026/05/26 20:12
종가	2026/05/19 00:00
수익	2024/12/31
연간 수익	2024/12/31

패키지	데이터	기간	미국 소스 예시 ^*
기업 재무제표	10년	손익계산서 현금흐름표 대차대조표	SEC 양식 10-K SEC 양식 10-Q
분석가 컨센서스 추정치	+3년	재무 예측 분석가 목표주가	분석가 리서치 보고서 Blue Matrix
시장 가격	30년	주가 배당, 분할 및 기타 조치	ICE 시장 데이터 SEC 양식 S-1
지분 구조	10년	주요 주주 내부자 거래	SEC 양식 4 SEC 양식 13D
경영진	10년	리더십 팀 이사회	SEC 양식 10-K SEC 양식 DEF 14A
주요 개발	10년	회사 공시	SEC 양식 8-K

FlexShopper (FPAY.Q) 주식 개요

강점

위험 분석

FlexShopper, Inc. 경쟁사

Wisdomtree Issuer X

Hold Me

Eason Technology

SHF Holdings

가격 이력 및 성과

최근 뉴스 및 업데이트

First Motion for Exclusivity Period Extension Approved For FlexShopper, Inc.

Motion for Joint Administration Approved for FlexShopper, Inc.

FlexShopper, Inc. Filed for Bankruptcy

FlexShopper, Inc.(OTCPK:FPAY) dropped from Russell 3000E Index

FlexShopper, Inc.(OTCPK:FPAY) dropped from NASDAQ Composite Index

Price target decreased by 80% to US$0.50

Recent updates

First Motion for Exclusivity Period Extension Approved For FlexShopper, Inc.

Motion for Joint Administration Approved for FlexShopper, Inc.

FlexShopper, Inc. Filed for Bankruptcy

FlexShopper, Inc.(OTCPK:FPAY) dropped from Russell 3000E Index

FlexShopper, Inc.(OTCPK:FPAY) dropped from NASDAQ Composite Index

Price target decreased by 80% to US$0.50

FlexShopper, Inc. Announces Executive and Board Resignations

FlexShopper, Inc. Faces Nasdaq Compliance Challenge Amid Stock Price Deficiency

FlexShopper, Inc. announced delayed 10-Q filing

FlexShopper, Inc. announced delayed 10-Q filing

FlexShopper, Inc. announced delayed annual 10-K filing

FlexShopper, Inc. (NASDAQ:FPAY) Screens Well But There Might Be A Catch

Price target increased by 44% to US$3.25

FlexShopper, Inc. Announces Board Changes

FlexShopper, Inc. announced delayed 10-Q filing

New major risk - Revenue and earnings growth

FlexShopper, Inc. to Report Q3, 2024 Results on Nov 13, 2024

Price target decreased by 23% to US$2.25

Investors Still Aren't Entirely Convinced By FlexShopper, Inc.'s (NASDAQ:FPAY) Revenues Despite 26% Price Jump

FlexShopper, Inc., Annual General Meeting, Oct 07, 2024

FlexShopper, Inc. (NASDAQ:FPAY) Might Not Be As Mispriced As It Looks

New major risk - Revenue and earnings growth

Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind

FlexShopper, Inc. to Report Q2, 2024 Results on Aug 06, 2024

New minor risk - Share price stability

Chairman of the Board recently bought US$83k worth of stock

Chairman of the Board recently bought US$106k worth of stock

Consensus revenue estimates increase by 14%

First quarter 2024 earnings: EPS and revenues exceed analyst expectations

New minor risk - Profitability

FlexShopper, Inc. (NASDAQ:FPAY) Might Not Be As Mispriced As It Looks After Plunging 31%

Full year 2023 earnings: EPS exceeds analyst expectations

FlexShopper, Inc. to Report Q4, 2023 Results on Apr 01, 2024

Not Many Are Piling Into FlexShopper, Inc. (NASDAQ:FPAY) Stock Yet As It Plummets 36%

Growth Investors: Industry Analysts Just Upgraded Their FlexShopper, Inc. (NASDAQ:FPAY) Revenue Forecasts By 13%

Consensus revenue estimates increase by 12%

New minor risk - Profitability

Third quarter 2023 earnings: EPS and revenues exceed analyst expectations

FlexShopper, Inc. to Report Q3, 2023 Results on Nov 14, 2023

FlexShopper, Inc., Annual General Meeting, Nov 01, 2023

Consensus revenue estimates fall by 21%

Price target decreased by 14% to US$3.17

New minor risk - Profitability

Second quarter 2023 earnings: EPS and revenues miss analyst expectations

New major risk - Share price stability

Investor sentiment deteriorates as stock falls 43%

Insufficient new directors

Investor sentiment improves as stock rises 30%

Investor sentiment improves as stock rises 27%

FlexShopper Regains Compliance with Nasdaq’s Minimum Bid Price Requirement

FlexShopper, Inc. (NasdaqCM:FPAY) announces an Equity Buyback for $2 million worth of its shares.

Investor sentiment improves as stock rises 9.2%

Consensus estimates of losses per share improve by 42%

Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind

Investor sentiment improved over the past week

Consensus revenue estimates fall by 17%

FlexShopper, Inc. (NASDAQ:FPAY) Analysts Just Slashed Next Year's Estimates

Price target decreased to US$3.67

Third quarter 2022 earnings: EPS and revenues miss analyst expectations

Investor sentiment deteriorated over the past week

FlexShopper stock jumps 16% after hours on exclusive partnership with Liberty Tax

Investor sentiment deteriorated over the past week

FlexShopper Is An Interesting Business But Currently Overvalued