Notes Receivable (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Notes Receivable

As of September 30, 2021 and December 31, 2020, Sezzle’s notes receivable, related allowance for uncollectible accounts, and deferred net origination fees are recorded within the consolidated balance sheets as follows:

As of	September 30, 2021		December 31, 2020
Notes receivable, gross	$	135,147,310	$	95,398,668
Less allowance for uncollectible accounts:
Balance at beginning of year	(11,133,146)		(3,461,837)
Provision	(32,880,630)		(19,587,918)
Charge-offs, net of recoveries totaling $4,479,376 and $648,799, respectively	27,108,580		11,916,609
Total allowance for uncollectible accounts	(16,905,196)		(11,133,146)
Notes receivable, net of allowance	118,242,114		84,265,522
Deferred Sezzle income	(4,536,345)		(3,458,222)
Notes receivable, net	$	113,705,769	$	80,807,300

As of September 30, 2021 and December 31, 2020, the balance of other receivables, net, on the consolidated balance sheets is comprised of the following:

As of	September 30, 2021		December 31, 2020
Account reactivation fees receivable, net	$	675,320	$	804,060
Receivables from merchants	786,238		599,246
Other receivables, net	$	1,461,558	$	1,403,306

As of September 30, 2021 and December 31, 2020, Sezzle’s account reactivation fees receivable and related allowance for uncollectible accounts are recorded within the consolidated balance sheets as follows:

As of	September 30, 2021		December 31, 2020
Account reactivation fees receivable, gross	$	1,941,884	$	1,875,648
Less allowance for uncollectible accounts:
Balance at start of period	(1,071,588)		(483,518)
Provision	(3,433,610)		(2,347,733)
Charge-offs, net of recoveries totaling $935,163 and $71,110, respectively	3,238,634		1,759,663
Total allowance for uncollectible accounts	(1,266,564)		(1,071,588)
Account reactivation fees receivable, net	$	675,320	$	804,060

Schedule of Gross Notes Receivable and Related Allowance by Aging

The following table summarizes Sezzle’s gross notes receivable and related allowance for uncollectible accounts as of September 30, 2021 and December 31, 2020:

As of	September 30, 2021						December 31, 2020
	Gross Receivables		Less Allowance		Net Receivables		Gross Receivables		Less Allowance		Net Receivables
Current	$	112,384,616	$	(4,032,714)	$	108,351,902	$	79,673,073	$	(2,692,254)	$	76,980,819
Days past due:
1–28	11,088,499		(3,712,417)		7,376,082		9,574,902		(3,616,327)		5,958,575
29–56	5,851,547		(4,051,641)		1,799,906		3,576,255		(2,646,627)		929,628
57–90	5,822,648		(5,108,424)		714,224		2,574,438		(2,177,938)		396,500
Total	$	135,147,310	$	(16,905,196)	$	118,242,114	$	95,398,668	$	(11,133,146)	$	84,265,522