FlexShopper extends forbearance period on credit agreement to September 3

FlexShopper, Inc. (NASDAQ:FPAY) reported Monday that the forbearance period under its existing credit agreement has been extended. According to a press release statement based on a recent SEC filing, the company’s subsidiaries, FlexShopper 2, LLC and FlexShopper, LLC, along with Powerscourt Investments 50, LP, the administrative agent, agreed to the extension on August 22.

The forbearance period now runs through the earlier of September 3, 2025, or the occurrence of any additional event of default under the credit agreement or servicer default under the servicing agreement, excluding previously specified defaults. The terms of the limited forbearance and reaffirmation agreement, initially dated August 16, 2025, otherwise remain unchanged and in effect. While InvestingPro data shows the company is quickly burning through cash, it maintains strong liquidity with a current ratio of 7.1.

The company had previously disclosed the original forbearance arrangement in a current report filed with the SEC on August 18. The filing did not specify additional financial terms or amendments beyond the extension of the forbearance period.

FlexShopper, Inc. is based in Boca Raton, Florida, and its common stock is listed on the Nasdaq Stock Market under the symbol FPAY. The company generated revenue of $139.8 million with an impressive gross profit margin of 85.44%, though it wasn’t profitable over the last twelve months. The information in this article is based on a press release statement and details provided in a Form 8-K filing with the Securities and Exchange Commission. Discover 10+ additional key insights about FPAY with an InvestingPro subscription.

In other recent news, FlexShopper, Inc. has made several significant announcements. The company has amended its credit agreement to allow interim financing for immediate working capital needs, with Powerscourt Investments 50, LP acting as the administrative agent and lender. Additionally, FlexShopper has received a 180-day extension from Nasdaq to file its delayed financial reports, allowing the company until October 13 to submit its 2024 annual report and first-quarter 2025 financial statements.

In a notable leadership change, FlexShopper’s Board of Directors has terminated the employment of H. Russell Heiser Jr., who served as both CEO and CFO, and appointed John Davis as the principal executive officer. Davis, who was already serving as the company’s President and COO, has also been appointed to the additional role of President, effective July 8. Furthermore, the company has engaged North Country Capital LLC for interim management and restructuring advisory services, with Matthew A. Doheny appointed as Chief Restructuring Officer.

In board-related news, Denis Echtchenko has resigned from the Board of Directors, with Steven Varner appointed as his successor. FlexShopper has expressed disagreement with the assessments in Echtchenko’s resignation letter. These developments highlight the company’s ongoing efforts to address financial and leadership challenges.

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