Other Receivables

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Other Receivables

Other Receivables

As of September 30, 2024 and December 31, 2023, the balance of other receivables, net, on the consolidated balance sheets was comprised of the following:

As of	September 30, 2024		December 31, 2023
Late payment fees receivable, net	$	1,362,289	$	548,649
Receivables from merchants, net	589,751		1,023,079
Receivables from originating partner	1,871,240		—
Other receivables, net	$	3,823,280	$	1,571,728

Late payment fees are applied to principal installments that are delinquent, subject to regulations within specific state jurisdictions. Any late payment fees associated with a delinquent payment are considered to be the same number of days delinquent as the principal payment. Late payment fees receivable, net, is comprised of outstanding late payment fees that we reasonably expect to collect from our consumers. As of September 30, 2024 and December 31, 2023, gross late payment fees receivable totaled $3,955,290 and $1,821,002, respectively.

We maintain an allowance for other credit losses at a level necessary to absorb expected credit losses on late payment fees receivable from our consumers. Any amounts delinquent after 90 days are charged off with an offsetting reversal to the allowance for other credit losses. Any adjustment to the allowance for other credit losses is recognized in net income through an offset to total revenue on our consolidated statements of operations and comprehensive income. Payments recovered after 90 days are recognized as a reduction to the allowance for other credit losses in the period the receivable is recovered.

The activity in the allowance for other credit losses related to late payment fees, including the provision for other credit losses, charge-offs, and recoveries for the three and nine months ended September 30, 2024 and 2023 was as follows:

	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Balance at beginning of period	$	1,525,889	$	768,602	$	1,272,353	$	980,713
Provision for other credit losses	2,340,716		917,226		4,939,580		2,067,268
Charge-offs	(1,381,418)		(783,784)		(3,994,062)		(2,539,804)
Recoveries of charged-off receivables	107,814		114,396		375,130		508,263
Balance at end of period	$	2,593,001	$	1,016,440	$	2,593,001	$	1,016,440

Receivables from merchants primarily represent amounts due to us from our long-term lending partners for processing applications and referring potential consumers to them. Such transactions are settled with the merchant for the full purchase price at the point of sale and we separately invoice our long-term lending partners for the fees due to us. Expected losses on merchant fees receivable are minimal, therefore, there is no allowance for credit losses recorded.

Receivables from originating partner represents amounts due to us from our originating partner that will be used to settle outstanding merchant accounts payable on orders originated by them.