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    Steve Silva • Argus Research

    Steve Silva's questions to FlexShopper Inc (FPAY) leadership

    Steve Silva's questions to FlexShopper Inc (FPAY) leadership • Q3 2024

    Question

    Asked for details on the retail partner pipeline's accelerated growth and future outlook, and also inquired about the potential to use profits to reduce debt independent of the rights offering.

    Answer

    The company attributed the pipeline's success to closing several large 'homerun' deals this year and expects the momentum to continue. Regarding debt reduction, the primary plan is to use the rights offering proceeds to delever. Future profits, particularly from the less capital-intensive B2B business, could be used for further deleveraging once marketing spend for the consumer site reaches a point of inefficiency.

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    Steve Silva's questions to FlexShopper Inc (FPAY) leadership • Q3 2024

    Question

    Steve Silva asked for color on the acceleration in the B2B retail pipeline and its outlook for 2025. He also inquired about the implications of returning to GAAP profitability on the company's ability to reduce debt independent of the proposed rights offering.

    Answer

    Executive Harold Heiser explained that the pipeline acceleration was due to successfully closing two large 'homerun' retail partners in one year, exceeding their typical pace and creating momentum. Regarding debt, Heiser stated that post-rights offering, the priority would be to delever and use internally generated capital to fund growth in the less capital-intensive B2B business, rather than inefficiently spending on marketing, while also exploring lower-cost debt capital options.

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