FlexShopper CEO Suspended, New Executive Officer Appointed Amid Financial Challenges

FlexShopper has suspended its CEO and CFO, H. Russell Heiser Jr., and appointed John Davis as principal executive officer. The company also entered into a Forbearance and Fourth Amendment to its Credit Agreement, delaying financial statement delivery and extending the draw period under the credit facility. FlexShopper faces significant financial challenges, including negative cash flow, high debt, and no profitability, but the credit agreement amendment is a positive step.

FlexShopper Inc., a Delaware corporation, has recently announced significant changes in its executive leadership and financial arrangements. The company has suspended its CEO and CFO, H. Russell Heiser Jr., and appointed John Davis as the principal executive officer. Additionally, FlexShopper has entered into a Forbearance and Fourth Amendment to its Credit Agreement, delaying the delivery of its financial statements and extending the draw period under the credit facility [1].

The amendment to the credit agreement, effective as of July 31, 2025, provides a forbearance period until August 30, 2025, during which the Administrative Agent and Lenders will not take any action based on the existing event of default. This forbearance period allows FlexShopper to address its financial challenges without immediate consequences from its lenders [1].

FlexShopper faces significant financial challenges, including negative cash flow, high debt, and no profitability. The company's recent financial performance has been a source of concern for investors and stakeholders. However, the credit agreement amendment is seen as a positive step, providing the company with some breathing room to address its financial issues [1].

The amendment also extends the draw period, which is the period during which FlexShopper can draw funds from the credit facility. This extension allows the company to continue accessing capital to meet its financial obligations and support its operations [1].

In the wake of these changes, investors and financial professionals will be closely monitoring FlexShopper's performance and progress in addressing its financial challenges. The company's ability to navigate these challenges and implement effective strategies to improve its financial health will be critical to its long-term success.

References:
[1] https://www.sec.gov/Archives/edgar/data/1397047/000121390025072168/ea025186701ex10-1_flex.htm