FlexShopper Extends Forbearance Agreement to September 3

FlexShopper has entered a limited forbearance agreement extension with Powerscourt Investments 50, LP. The agreement extends the forbearance period to September 3, 2025, or until additional default events occur. The agreement's terms remain unchanged. Analysts have rated FlexShopper a Hold with a $0.50 price target. Spark's AI Analyst rates FlexShopper a Neutral, citing financial performance and technical analysis challenges, including high leverage and negative cash flow.

FlexShopper, Inc. (NASDAQ: FPAY) has extended its forbearance period under its existing credit agreement. 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 September 3, 2025, or until any additional default events occur, maintaining the agreement's terms otherwise unchanged [1].

The forbearance agreement was initially disclosed in a Form 8-K filing with the SEC on August 18. FlexShopper has been facing financial challenges, with its cash burn rate increasing and a current ratio of 7.1, indicating strong liquidity [1].

Analysts have rated FlexShopper a Hold with a $0.50 price target, reflecting the company's ongoing financial struggles. Spark's AI Analyst rates FlexShopper as Neutral, citing significant challenges such as high leverage, negative cash flow, and bearish technical indicators. The company's recent executive changes and financial restructuring attempts have not yet fully addressed these concerns [2].

FlexShopper has also 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. Additionally, the company has appointed John Davis as the principal executive officer, replacing H. Russell Heiser Jr. who served as both CEO and CFO [1].

Despite these developments, FlexShopper continues to face significant financial challenges. Investors should closely monitor the company's progress and any additional disclosures regarding its financial health.

References:
[1] https://www.investing.com/news/sec-filings/flexshopper-extends-forbearance-period-on-credit-agreement-to-september-3-93CH-4209877
[2] https://www.tipranks.com/news/company-announcements/flexshopper-enters-limited-forbearance-agreement-extension