 BOCA RATON, Fla., Aug. 10, 2020 GLOBE NEWSWIRE -- FlexShopper, Inc. Nasdaq:FPAY FlexShopper, a leading national online lease-to-own LTO retailer and LTO payment solution provider, today announced its financial results for the quarter ended June 30, 2020, highlighted by growth in adjusted EBITDA and net revenues. Results for Quarter Ended June 30, 2020 vs. Quarter Ended June 30, 2019: Net lease revenues and fees increased 15.1 to 22.9 million from 19.9 million FlexShopper originated 33,941 gross leases, up 16.0 from 29,252 Gross lease originations increased 2.1 million, or 15.8, to 15.3 million from 13.2 million The average origination value remained flat at 452 Net loss of 262 thousand compared with a net loss of 310 thousand Net loss attributable to common stockholders of 0.9 million, or 0.04 per diluted share, compared to 0.9 million, or 0.05 per diluted share Gross profit increased 25.8 to 7.4 million from 5.9 million Adjusted EBITDA1 increased to 2.0 million compared to 1.8 millionResults for Six Months Ended June 30, 2020 vs. Six Months Ended June 30, 2019: Net lease revenues and fees increased 11.8 to 46.6 million from 41.7 million FlexShopper originated 70,068 gross leases, up 18.3 from 59,245 Gross lease originations increased 4.8 million, or 17.3, to 32.5 million from 27.7 million The average origination value decreased to 464 from 467 Net loss of 210 thousand compared with net income of 194 thousand Net loss attributable to common stockholders, inclusive of deemed dividend expense of 0.7 million in Q1, of 2.1 million, or 0.10 per diluted share, compared to 1.0 million, or 0.06 per diluted share Gross profit increased 20.0 to 15.4 million from 12.8 million Adjusted EBITDA1 remained flat at 4.1 million1Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure under Non-GAAP Measures.Second Quarter 2020 Highlights and Recent Developments Growth in originations and net revenues. FlexShopper recorded growth in both gross lease originations and net revenues in the second quarter. Retail partner lease originations saw improvement from COVID-19 restriction-driven lows experienced at the end of Q1early in Q2 but remained below pre-pandemic levels. Payments activity remains firm. As of June 30, 2020, FlexShopper observed an improvement in payments activity by its customers compared to the same period last year. The Company continues to closely monitor payments on a weekly basis and intends to modify its marketing and underwriting as needed. Retailer rollouts were delayed due to COVID-19. Previously-planned programs with new retail partners that were originally scheduled for late Q1 andor Q2 were delayed. Since the end of Q2, the Company has been able to move forward with some of these new programs.Rich House, CEO, stated, Over the course of the second quarter we saw states progress through phased economic reopenings. As they did so, we followed suit as we felt an increased marketing push would yield a positive return. On our first quarter earnings call we noted that our payment activity had remained firm and that continues to be the case. Mr. House continued, Our retail partners have seen their store traffic begin to return as states moved through phased reopening of in-person businesses. That has, in turn, led to an increase in leases originated through this channel although activity remains below levels experienced prior to COVID-19. We are now moving forward with new partner trials and rollouts that were delayed earlier in the year.Additionally, Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition of this measure under Non-GAAP Measures.Conference Call Details Date: Time:Tuesday , August 11, 2020 9:00 a.m. Eastern Time Participant Dial-In Numbers: Domestic callers: International callers:877 407-3944 412 902-0038 Access by Webcast The call will also be simultaneously webcast over the Internet via the Investor section of the Companys website at or by clicking on the conference call link: An audio replay of the call will be archived on the Companys website.FLEXSHOPPER, INC. CONSOLIDATED STATEMENTS OF OPERATIONS unaudited For the three months ended June 30, For the six months ended June 30, 2020 2019 2020 2019 Revenues: Lease revenues and fees, net22,900,280 19,901,156 46,597,985 41,685,935 Lease merchandise sold 1,629,850 763,184 2,774,892 1,709,802 Total revenues 24,530,130 20,664,340 49,372,877 43,395,737 Costs and expenses: Cost of lease revenues, consisting of depreciation and impairment of lease merchandise 15,898,255 14,260,308 32,095,204 29,538,247 Cost of lease merchandise sold 1,291,090 498,838 1,921,871 1,063,845 Marketing 938,049 314,229 1,969,194 1,162,775 Salaries and benefits 2,276,516 2,037,081 4,825,385 3,795,168 Operating expenses 3,337,162 2,841,846 6,508,853 5,438,128 Total costs and expenses 23,741,072 19,952,302 47,320,507 40,998,163 Operating income 789,058 712,038 2,052,370 2,397,574 Interest expense including amortization of debt issuance costs 1,051,120 1,021,984 2,262,747 2,203,977 Net loss income 262,062 309,946 210,377 193,597 Deemed dividend from exchange offer of warrants - - 713,212 - Dividends on Series 2 Convertible Preferred Shares 609,728 609,282 1,219,445 1,218,450 Net loss attributable to common shareholders871,790 919,228 2,143,034 1,024,853 Basic and diluted loss per common share: Basic and diluted0.04 0.05 0.10 0.06 WEIGHTED AVERAGE COMMON SHARES: Basic and diluted 21,351,914 17,666,193 20,627,674 17,658,562 FLEXSHOPPER, INC. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2020 2019 unaudited ASSETS CURRENT ASSETS: Cash9,851,009 6,868,472 Accounts receivable, net 7,969,997 8,272,332 Prepaid expenses 591,276 672,242 Lease merchandise, net 26,081,242 31,063,104 Total current assets 44,493,524 46,876,150 PROPERTY AND EQUIPMENT, net 5,489,986 5,260,407 OTHER ASSETS, net 73,854 78,335 50,057,364 52,214,892 LIABILITIES AND STOCKHOLDERS EQUITY CURRENT LIABILITIES: Accounts payable3,079,283 4,567,889 Accrued payroll and related taxes 513,098 513,267 Loan payable under credit agreement to beneficial shareholder, net of 36,838 at 2020 of unamortized issuance costs 8,541,037 - Promissory notes to related parties, net of 16,552 at 2020 and 5,333 at 2019 of unamortized issuance costs, including accrued interest 4,793,918 1,067,740 Promissory note 845,047 - Accrued expenses 1,210,665 1,372,901 Lease liability - current portion 151,146 27,726 Total current liabilities 19,134,194 7,549,523 Loan payable under credit agreement to beneficial shareholder, net of 73,676 at 2020 and 281,138 at 2019 of unamortized issuance costs and current portion 17,082,075 28,904,738 Promissory notes to related parties, net of 24,828 at 2019 of unamortized issuance costs and current portion - 3,725,172 Promissory note 1,072,042 - Accrued payroll and related taxes less current portion 85,091 - Lease liabilities less current portion 2,028,852 2,067,184 Total liabilities 39,402,254 42,246,617 STOCKHOLDERS EQUITY Series 1 Convertible Preferred Stock, 0.001 par value - authorized 250,000 shares, issued and outstanding 170,332 shares at 2020 and 171,191 shares at 2019 at 5.00 stated value 851,660 855,955 Series 2 Convertible Preferred Stock, 0.001 par value - authorized 25,000 shares, issued and outstanding 21,952 shares at 1,000 stated value 21,952,000 21,952,000 Common stock, 0.0001 par value- authorized 40,000,000 shares, issued and outstanding 21,356,112 shares at 2020 and 17,783,960 shares at 2019 2,136 1,779 Additional paid in capital 36,214,871 35,313,721 Accumulated deficit 48,365,557 48,155,180 Total stockholders equity 10,665,110 9,968,275 50,057,364 52,214,892 FLEXSHOPPER, INC. 