FlexShopper board member Denis Echtchenko resigns, Steven Varner appointed

FlexShopper, Inc. (NASDAQ:FPAY), a $30.5 million market cap company with annual revenue of $139.8 million, announced the resignation of Denis Echtchenko from its Board of Directors, effective Sunday. According to InvestingPro data, the company maintains a FAIR financial health score, though its stock has shown high price volatility this year. The company stated that Echtchenko’s resignation will take effect upon receipt of a letter designating his successor from B2 FIE V LLC, a stakeholder with board nomination rights under an investor agreement.

According to a statement included in a press release, Echtchenko’s resignation letter outlined his reasons for stepping down. FlexShopper indicated that it disagrees with the substantive assessments and characterizations in Echtchenko’s letter. Echtchenko did not serve on any committee of the Board.

On Sunday, FlexShopper received a letter from B2 FIE V LLC designating Steven Varner as its representative to the Board. Varner will serve until the next annual or special meeting of shareholders. Varner, age 64, is the founder and principal of SG Varner Advisors, a business and financial advisory firm. He previously held senior roles at Alvarez & Marsal, Deloitte, and Arthur Andersen LLP, according to the company.

Varner’s appointment is pursuant to the B2 FIE Investor Rights Agreement, which grants B2 FIE and its affiliates the right to nominate one director as long as their ownership of FlexShopper’s outstanding common stock, on a fully diluted basis, exceeds 10%. FlexShopper reported that there are no arrangements or understandings with Varner outside of this agreement, and that he has not participated in any transactions with the company that would require disclosure under SEC rules. There are also no family relationships between Varner and any FlexShopper executive officers or directors.

With Varner’s appointment, the total number of Board members remains at five.

This information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, FlexShopper, Inc. has been granted a 180-day extension by Nasdaq to file its delayed financial reports. This extension allows the company until October 13 to submit its 2024 annual report and first-quarter 2025 financial statements, ensuring continued trading on Nasdaq during this period. Additionally, FlexShopper announced the appointment of John Davis as president, alongside his role as chief operating officer, effective July 8. Davis has been with the company since November 2020 and brings experience from his previous roles in the financial sector.

In another development, FlexShopper has partnered with ICON Vehicle Dynamics to provide lease-to-own financing options for ICON’s performance suspension systems and off-road vehicle components. This strategic collaboration enables ICON customers to access vehicle parts with flexible weekly payments, facilitated by FlexShopper’s technology platform. These recent developments reflect FlexShopper’s ongoing efforts to expand its services and maintain compliance with financial reporting requirements.

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