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Notes Receivable and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

As of December 31, 2023 and 2022, our notes receivable at amortized cost was comprised of the following:


	2023		2022
Notes receivable, gross	$	146,225,832	$	107,650,187
Deferred transaction income	(3,340,150)		(4,068,332)
Notes receivable, amortized cost	$	142,885,682	$	103,581,855

As of December 31, 2023 and 2022, the balance of other receivables, net, on the consolidated balance sheets was comprised of the following:


	2023		2022
Late payment fees receivable, net	$	548,649	$	209,734
Receivables from merchants, net	1,023,079		2,322,976
Other receivables, net	$	1,571,728	$	2,532,710

The activity in the allowance for credit losses related to late payment fees, including the provision for other credit losses, charge-offs, and recoveries for the year ended December 31, 2023 and 2022 is as follows:


	For the years ended December 31,
	2023		2022
Balance at beginning of period	$	980,713	$	1,691,071
Provision for other credit losses	3,351,966		7,588,253
Charge-offs	(3,668,673)		(9,551,048)
Recoveries of charged-off receivables	608,347		1,252,437
Balance at end of period	$	1,272,353	$	980,713

Schedule of Amortized Cost Basis of Our Notes Receivable by Prophet Score and Year of Origination

The amortized cost basis of our notes receivable by Prophet Score and year of origination as of December 31, 2023 is as follows:


	2023
	Amortized cost basis by year of origination
	2023		2022		Total
A	$	47,752,196	$	—	$	47,752,196
B	58,815,920		257		58,816,177
C	35,832,476		2,708		35,835,184
No score	482,125		—		482,125
Total amortized cost	$	142,882,717	$	2,965	$	142,885,682

Schedule of Gross Notes Receivable and Related Allowance by Aging

The amortized cost basis of our notes receivable by delinquency status as of December 31, 2023 is as follows:


	2023
Current	$	129,681,699
1–28 days past due	6,808,467
29–56 days past due	3,015,612
57–90 days past due	3,379,904
Total amortized cost	$	142,885,682

The following table summarizes our gross notes receivable and related allowance for uncollectible accounts as of December 31, 2022 prior to the adoption of ASU 2016-13:


	2022
	Gross Receivables		Less Allowance		Net Receivables
Current	$	96,923,113	$	(3,348,558)	$	93,574,555
Days past due:
1–28	5,516,812		(2,146,103)		3,370,709
29–56	2,513,755		(2,063,131)		450,624
57–90	2,696,507		(2,665,659)		30,848
Total	$	107,650,187	$	(10,223,451)	$	97,426,736

Schedule of Allowance for Credit Loss

The activity in the allowance for credit losses, including the provision for credit losses, charge-offs, and recoveries for the year ended December 31, 2023 and 2022 is as follows:


	For the years ended December 31,
	2023		2022
Balance at beginning of period	$	10,223,451	$	23,114,173
Adoption of Accounting Standards Update No. 2016-13	(878,577)		—
Provision for credit losses	23,186,973		29,437,179
Charge-offs	(24,006,322)		(47,367,942)
Recoveries of charged-off receivables	3,727,516		5,040,041
Balance at end of period	$	12,253,041	$	10,223,451

Net charge-offs by year of origination for the year ended December 31, 2023 is as follows:


	2023		2022		2021		2020		2019		Total
Current period gross charge-offs	$	(15,425,979)	$	(8,561,426)	$	(18,060)	$	(650)	$	(207)	$	(24,006,322)
Current period recoveries	604,292		1,964,853		853,901		231,876		72,594		3,727,516
Current period net charge-offs	$	(14,821,687)	$	(6,596,573)	$	835,841	$	231,226	$	72,387	$	(20,278,806)