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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________________________
FORM 10-Q
__________________________________________________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________to__________
Commission File Number 001-39550
__________________________________________________________________
OppFi_Logo_PRIMARY (1).gif
OppFi Inc.
(Exact name of registrant as specified in its charter)
__________________________________________________________________
 
Delaware
(State or other jurisdiction of incorporation or organization)
85-1648122
(I.R.S. Employer Identification No.)
130 E. Randolph Street. Suite 3400
Chicago, IL
(Address of principal executive offices)
60601
(Zip Code)
(312) 212-8079
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities Registered Pursuant to Section 12(b) of the Act:
 
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Class A common stock, par value $0.0001 per share OPFINew York Stock Exchange
Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per shareOPFI WSNew York Stock Exchange
__________________________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
 
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of November 7, 2023, there were 110,669,080 shares of common stock, including 17,725,951 shares of Class A common stock, par value $0.0001 per share, 0 shares of Class B common stock, par value $0.0001 per share and 92,943,129 shares of Class V common stock, par value $0.0001 per share, outstanding.

Table of Contents

i
CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q including, without limitation, statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "possible," "continue,"and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected.

A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, but are not limited to, the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions and a tightening of credit markets, on our business; the impact of challenging macroeconomic and marketplace conditions, including lingering effects of COVID-19 on our business; the impact of stimulus or other government programs; whether we will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether we will be subject to AB 539; whether our bank partners will continue to lend in California and whether our financing sources will continue to finance the purchase of participation rights in loans originated by our bank partners in California; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults or non-performance, may have on our business; risks related to the material weakness in our internal controls over financial reporting; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, our ability to grow and manage growth profitably and retain our key employees; risks related to new products; concentration risk; costs related to the business combination; changes in applicable laws or regulations; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; risks related to the restatement of our financial statements and any accounting deficiencies or weaknesses related thereto and other risks contained in the section captioned “Risk Factors” in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on March 29, 2023 (“2022 Annual Report”). Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.


1
PART I. FINANCIAL INFORMATION
ITEM 1.     FINANCIAL STATEMENTS
OppFi Inc. and Subsidiaries    
Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
September 30,December 31,
20232022
Assets
Cash(1)$31,125 $16,239 
Restricted cash(1)34,90233,431
Total cash and restricted cash66,02749,670
Finance receivables at fair value(1)466,465457,296
Finance receivables at amortized cost, net of allowance for credit losses of $2,083 and $96 as of September 30, 2023 and December 31, 2022, respectively, and unearned income of $66 as of September 30, 2023
209643
Settlement receivable(1)2,9022,000
Assets held for sale—550
Debt issuance costs, net(1)4,2174,049
Property, equipment and software, net11,09814,039
Operating lease right of use asset12,58713,587
Deferred tax asset24,69126,758
Other assets(1)12,39611,247
Total assets$600,592 $579,839 
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable(1)$3,569 $6,338 
Accrued expenses(1)21,90323,220
Operating lease liability15,50416,558
Secured borrowing payable(1)—756
Senior debt, net(1)342,172344,688
Notes payable2,1731,616
Warrant liabilities1,0501,888
Tax receivable agreement liability24,38825,625
Total liabilities410,759420,689
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock, $0.0001 par value (1,000,000 shares authorized with no shares issued and outstanding as of September 30, 2023 and December 31, 2022)
——
Class A common stock, $0.0001 par value (379,000,000 shares authorized with 18,115,756 shares issued and 17,411,842 shares outstanding as of September 30, 2023 and 15,464,480 shares issued and 14,760,566 shares outstanding as of December 31, 2022)
22
Class B common stock, $0.0001 par value (6,000,000 shares authorized with no shares issued and outstanding as of September 30, 2023 and December 31, 2022)
——
Class V voting stock, $0.0001 par value (115,000,000 shares authorized with 93,180,736 and 94,937,285 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively)
99
Additional paid-in capital72,38365,501
Accumulated deficit(58,521)(63,546)
Treasury stock at cost, 703,914 shares as of September 30, 2023 and December 31, 2022
(2,460)(2,460)
Total OppFi Inc.'s stockholders' equity (deficit)11,413(494)
Noncontrolling interest178,420159,644
Total stockholders' equity189,833159,150
Total liabilities and stockholders' equity$600,592 $579,839 
(1) Includes amounts in consolidated variable interest entities ("VIEs") presented separately in the table below.
Continued on next page
2
OppFi Inc. and Subsidiaries    
Consolidated Balance Sheets (Unaudited) - Continued
(in thousands)
The following table summarizes the consolidated assets and liabilities of VIEs, which are included in the Consolidated Balance Sheets. The assets below may only be used to settle obligations of VIEs and are in excess of those obligations.
September 30,December 31,
20232022
Assets of consolidated VIEs, included in total assets above
Cash$258 $— 
Restricted cash25,881 24,577 
Total cash and restricted cash26,139 24,577 
Finance receivables at fair value445,968 417,476 
Settlement receivable2,902 2,000 
Debt issuance costs, net4,217 4,049 
Other assets60 108 
Total assets$479,286 $448,210 
Liabilities of consolidated VIEs, included in total liabilities above
Accounts payable$10 $109 
Accrued expenses3,550 3,428 
Secured borrowing payable — 756 
Senior debt, net292,827 295,734 
Total liabilities$296,387 $300,027 
See notes to consolidated financial statements.
3
OppFi Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Revenue:
Interest and loan related income$132,090 $123,605 $373,615 $331,814 
Other revenue1,075 639 2,410 1,015 
133,165 124,244 376,025 332,829 
Change in fair value of finance receivables(57,302)(70,601)(164,463)(162,280)
Provision for credit losses on finance receivables(195)(1,017)(4,131)(2,043)
Net revenue75,668 52,626 207,431 168,506 
Expenses:
Salaries and employee benefits14,761 14,600 45,407 46,747 
Direct marketing costs14,075 12,861 38,003 45,828 
Interest expense and amortized debt issuance costs12,077 9,095 34,679 24,421 
Professional fees5,067 3,443 13,984 8,957 
Depreciation and amortization3,119 3,452 9,827 10,056 
Technology costs3,141 3,301 9,587 9,723 
Payment processing fees2,989 2,772 7,762 7,738 
Occupancy1,108 1,091 3,322 3,231 
Lower of cost or market adjustment on transfer of finance receivables from held for sale to held for investment— — (2,983)— 
General, administrative and other3,750 2,980 10,198 8,533 
Total expenses60,087 53,595 169,786 165,234 
Income (loss) from operations15,581 (969)37,645 3,272 
Other income:
Change in fair value of warrant liabilities334 1,323 838 7,024 
Other income80 — 352 — 
Income before income taxes15,995 354 38,835 10,296 
Income tax expense463 1,015 1,297 1,757 
Net income (loss)15,532 (661)37,538 8,539 
Net income (loss) attributable to noncontrolling interest13,363 (90)32,976 4,576 
Net income (loss) attributable to OppFi Inc.$2,169 $(571)$4,562 $3,963 
Earnings (loss) per share attributable to OppFi Inc.:
Earnings (loss) per common share:
Basic$0.13 $(0.04)$0.29 $0.29 
Diluted$0.13 $(0.04)$0.29 $0.09 
Weighted average common shares outstanding:
Basic16,772,27513,972,97115,820,26213,694,733
Diluted17,057,77813,972,97116,046,83184,277,277
See notes to consolidated financial statements.

4
OppFi Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity (Unaudited)
(in thousands, except share data)
Class A Common StockClass V Voting StockAdditional Paid-AccumulatedTreasuryNoncontrollingTotal Stockholders’
SharesAmountSharesAmountin CapitalDeficitStockInterestEquity
Balance, June 30, 202316,280,397 $2 94,037,840$9 $70,889 $(60,993)$(2,460)$169,543 $176,990 
Exchange of Class V shares857,104 — (857,104)— 1,453 303 — (1,756)— 
Vesting of restricted stock units311,125 — — — — — — — — 
Issuance of common stock under employee stock purchase plan99,503 — — — 171 — — — 171 
Stock-based compensation— — — — 1,086 — — — 1,086 
Tax withholding on vesting of restricted stock units(136,287)— — — (280)— — — (280)
Member distributions— — — — — — — (2,730)(2,730)
Tax receivable agreement— — — — (21)— — — (21)
Deferred tax asset— — — — (915)— — — (915)
Net income— — — — — 2,169 — 13,363 15,532 
Balance, September 30, 202317,411,842 $2 93,180,736 $9 $72,383 $(58,521)$(2,460)$178,420 $189,833 
Balance, June 30, 202213,632,260$1 95,729,696$10 $64,330 $(66,164)$(2,153)$169,474 $165,498 
Exchange of Class V shares570,596—(570,596)—48454—(538)—
Vesting of restricted stock units82,201————————
Issuance of common stock under employee stock purchase plan44,627———125———125
Stock-based compensation————762———762
Purchase of treasury stock(88,262)—————(307)—(307)
Member distributions———————(152)(152)
Tax receivable agreement————185———185
Net loss—————(571)—(90)(661)
Balance, September 30, 202214,241,422$1 95,159,100 $10 $65,886 $(66,681)$(2,460)$168,694 $165,450 
Balance, December 31, 202214,760,566 $2 94,937,285$9 $65,501 $(63,546)$(2,460)$159,644 $159,150 
Exchange of Class V shares1,756,549 — (1,756,549)— 3,497 463 — (3,960)— 
Vesting of restricted stock units841,392 — —— — — — — — 
Issuance of common stock under employee stock purchase plan189,622 — —— 328 — — — 328 
Stock-based compensation— — —— 3,070 — — — 3,070 
Tax withholding on vesting of restricted stock units(136,287)— —— (280)— — — (280)
Member distributions— — —— — — — (10,240)(10,240)
Tax receivable agreement— — — — 938 — — — 938 
Deferred tax asset— — —— (671)— — — (671)
Net income— — —— — 4,562 — 32,976 37,538 
Balance, September 30, 202317,411,842 $2 93,180,736$9 $72,383 $(58,521)$(2,460)$178,420 $189,833 
Balance, December 31, 202113,631,484$1 96,338,474$10 $61,672 $(70,723)$— $166,918 $157,878 
Exchange of Class V shares1,179,374—(1,179,374)—1,40679—(1,485)— 
Vesting of restricted stock units89,851———————— 
Issuance of common stock under employee stock purchase plan44,627———125———125 
Stock-based compensation————2,391———2,391 
Purchase of treasury stock(703,914)—————(2,460)—(2,460)
Member distributions———————(1,315)(1,315)
Tax receivable agreement————292———292 
Net income—————3,963—4,5768,539 
Balance, September 30, 202214,241,422$1 95,159,100$10 $65,886 $(66,681)$(2,460)$168,694 $165,450 
See notes to consolidated financial statements.
5
OppFi Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Nine Months Ended September 30,
20232022
Cash flows from operating activities:
Net income $37,538 $8,539 
Adjustments to reconcile net income to net cash provided by operating activities:
Change in fair value of finance receivables164,463 162,280 
Provision for credit losses on finance receivables4,131 2,043 
Depreciation and amortization9,827 10,056 
Debt issuance cost amortization1,872 1,626 
Stock-based compensation expense3,070 2,391 
Loss on disposition of equipment1 2 
Lower of cost or market adjustment on transfer of finance receivables from held for sale to held for investment(2,983)— 
Deferred income taxes248 1,475 
Tax receivable agreement liability— 625 
Change in fair value of warrant liabilities(838)(7,024)
Gain on forgiveness of debt(113)— 
Changes in assets and liabilities:
Accrued interest and fees receivable(600)(4,637)
Settlement receivable(902)— 
Operating lease, net(54)8 
Other assets1,398 1,131 
Accounts payable(2,769)580 
Accrued expenses(701)(6,832)
Net cash provided by operating activities213,588 172,263 
Cash flows from investing activities:
Finance receivables originated and acquired(540,313)(556,441)
Finance receivables repayments367,217 323,146 
Purchases of equipment and capitalized technology(6,887)(10,150)
Net cash used in investing activities(179,983)(243,445)
Cash flows from financing activities:
Member distributions(10,240)(1,315)
Net payments of secured borrowing payable(643)(20,685)
Net (payments) advances of senior debt (2,907)86,464 
Net payments of note payable(1,857)(735)
Payments for debt issuance costs(1,649)(2,105)
Proceeds from employee stock purchase plan328 125 
Payments of tax withholding on vesting of restricted stock units(280)— 
Repurchases of common stock— (2,460)
Net cash (used in) provided by financing activities(17,248)59,289 
Net increase (decrease) in cash and restricted cash16,357 (11,893)
Cash and restricted cash
Beginning49,670 62,362 
Ending$66,027 $50,469 
Supplemental disclosure of cash flow information:
Interest paid on borrowed funds$32,276 $22,296 
Income taxes paid$73 $337 
Supplemental disclosure of non-cash activities:
Adjustments to additional paid-in capital as a result of tax receivable agreement$938 $292 
Adjustments to additional paid-in capital as a result of adjustment to deferred tax asset$(671)$— 
Operating lease right of use asset recognized $159 $— 
Operating lease liability recognized$159 $— 
Operating lease right of use asset recognized from adoption of ASU 2016-02$— $15,459 
Operating lease liability recognized from adoption of ASU 2016-02$— $17,972 
Reclassification of finance receivables held for sale to held for investment$2,637 $— 
Prepaid insurance financed with promissory notes$2,414 $3,243 
See notes to consolidated financial statements.
6
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)

Note 1. Organization and Nature of Operations

OppFi Inc. (“OppFi”), formerly FG New America Acquisition Corp. (“FGNA”), collectively with its subsidiaries (“Company”), is a tech-enabled, mission-driven specialty fintech platform that broadens the reach of community banks to extend credit access to everyday Americans. OppFi’s primary products are offered by its installment loan product, OppLoans. OppFi’s products also include its payroll deduction secured installment loan product, SalaryTap, and credit card product, OppFi Card.

On July 20, 2021 (the “Closing Date”), the Company completed a business combination pursuant to the Business Combination Agreement (“Business Combination Agreement”), dated as of February 9, 2021, by and among Opportunity Financial, LLC (“OppFi-LLC”), a Delaware limited liability company, OppFi Shares, LLC (“OFS”), a Delaware limited liability company, and Todd Schwartz (the “Members’ Representative”), in his capacity as the representative of the members of OppFi-LLC (“Members”) immediately prior to the closing (the “Closing”). The transactions contemplated by the Business Combination Agreement are referred to herein as the “Business Combination.” At the Closing, FGNA changed its name to “OppFi Inc.” OppFi’s Class A common stock, par value $0.0001 per share (“Class A Common Stock”) and redeemable warrants exercisable for Class A Common Stock (“Public Warrants”) are listed on the New York Stock Exchange (“NYSE”) under the symbols “OPFI” and “OPFI WS,” respectively.

Following the Closing, the Company is organized in an “Up-C” structure in which substantially all of the assets and the business of the Company are held by OppFi-LLC and its subsidiaries, and OppFi’s only direct assets consist of Class A common units of OppFi-LLC (“OppFi Units”). As of September 30, 2023 and December 31, 2022, OppFi owned approximately 15.7% and 13.5% of the OppFi Units, respectively, and controls OppFi-LLC as the sole manager of OppFi-LLC in accordance with the terms of the Third Amended and Restated Limited Liability Company Agreement of OppFi-LLC (“OppFi A&R LLCA”). All remaining OppFi Units (“Retained OppFi Units”) are beneficially owned by the Members. OFS holds a controlling voting interest in OppFi through its ownership of shares of Class V common stock, par value $0.0001 per share, of OppFi (“Class V Voting Stock”) in an amount equal to the number of Retained OppFi Units and therefore has the ability to control OppFi-LLC.

Note 2. Significant Accounting Policies

Basis of presentation and consolidation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been omitted if they substantially duplicate the disclosures contained in the Company’s annual audited consolidated financial statements pursuant to such rules and regulations.

These unaudited consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements and the related notes as of and for the year ended December 31, 2022 included in the 2022 Annual Report. In the opinion of the Company’s management, these unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results of operations that may be expected for the full year ending December 31, 2023.

The accompanying unaudited consolidated financial statements include the accounts of OppFi and OppFi-LLC with its wholly-owned subsidiaries and variable interest entities (“VIEs”) in which the Company is the primary beneficiary. The Company is considered to be the primary beneficiary of a VIE when it has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. All intercompany transactions and balances have been eliminated in consolidation.

On April 26, 2023, Opportunity Funding SPE X, LLC changed its name to OppWin BPI, LLC.

Segments: Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. OppFi’s Chief Executive Officer is considered to be the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s operations constitute a single reportable segment.

7
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Use of estimates: The preparation of the unaudited consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

The judgements, assumptions, and estimates used by management are based on historical experience, management’s experience and qualitative factors. The areas subject to significant estimation techniques are the determination of fair value of installment finance receivables and warrants, the adequacy of the allowance for credit losses on finance receivables, valuation allowance of deferred tax assets, stock-based compensation expense and income tax provision. For the aforementioned estimates, it is reasonably possible the recorded amounts or related disclosures could significantly change in the near future as new information is available.

Accounting Policies: There have been no changes to the Company's significant accounting policies from those described in Part II, Item 8 - Financial Statements and Supplementary Data in the 2022 Annual Report.

Participation rights purchase obligations: OppFi-LLC has entered into bank partnership arrangements with certain banks insured by the FDIC. As part of these bank partnership arrangements, the banks have the ability to retain a percentage of the finance receivables they have originated, and OppFi-LLC’s participation rights are reduced by the percentage of the finance receivables retained by the banks. For the nine months ended September 30, 2023 and 2022, finance receivables originated through the bank partnership arrangements totaled 96% and 94%, respectively. As of September 30, 2023 and December 31, 2022, the unpaid principal balance of finance receivables outstanding for purchase was $10.8 million and $11.2 million, respectively.

Troubled debt restructurings: As the terms of the receivables are typically not renegotiated and settlement offers are not typically made until after a receivable stops accruing interest income (up to 60 days delinquent), the only receivables considered to be impaired, or troubled debt restructurings, are: 1) those receivables where a settlement offer is made after receivables cease accruing interest, which may result in a modification of contractual terms, 2) the Company has received notification that a borrower is working with a third party to settle debt on his/her behalf and 3) customers who have entered into the Company’s short-term or long-term hardship programs. As of December 31, 2022, management determined the balance of troubled debt restructuring receivables to be immaterial to the consolidated financial statements as a whole. As such, substantially all disclosures relating to impaired finance receivables, and troubled debt restructuring, have been omitted from these consolidated financial statements.

Assets held for sale: Assets held for sale are assets which management has the intent to sell in the foreseeable future, and are carried at the lower of aggregate cost or fair value, less estimated costs to sell, in the period in which the held for sale criteria are met and every subsequent period until the asset is sold. The carrying amount of the asset is adjusted for subsequent increases or decreases in its fair value, less estimated cost to sell, except that any subsequent increase cannot exceed the cumulative loss previously recognized. Such assets are not depreciated or amortized while they are classified as held for sale. Realized gains and losses on the sale of the asset are recognized when the asset is sold and are determined by the difference between the sale proceeds and the carrying value of the asset. Assets classified as held for sale as of December 31, 2022 comprised the Company’s OppFi Card finance receivables. In May 2023, the Company made the decision to wind down the OppFi Card business; accordingly, the Company has discontinued its marketing of the OppFi Card finance receivables for sale. The OppFi Card finance receivables will no longer meet the held for sale criteria and have been reclassified from held for sale to held for investment, which is included in finance receivables at amortized cost in the consolidated balance sheets. Upon transfer of the Company’s OppFi Card finance receivables from held for sale to held for investment, the Company reversed its previously recorded valuation allowance on being held for sale totaling $2.3 million and established an allowance for credit losses on being held for investment totaling $2.6 million.

Capitalized technology: The Company capitalized software costs associated with application development totaling $2.2 million and $3.1 million for the three months ended September 30, 2023 and 2022, respectively, and $6.7 million and $9.9 million for the nine months ended September 30, 2023 and 2022, respectively. Amortization expense, which is included in depreciation and amortization on the consolidated statements of operations, totaled $2.9 million and $3.3 million for three months ended September 30, 2023 and 2022, respectively, and $9.2 million and $9.4 million for the nine months ended September 30, 2023 and 2022, respectively.

Noncontrolling interests: Noncontrolling interests are held by the Members, who retained 84.3% and 86.5% of the economic ownership percentage of OppFi-LLC as of September 30, 2023 and December 31, 2022, respectively. In accordance with the provisions of Accounting Standards Codification (“ASC”) 810, Consolidation, the Company classifies the noncontrolling interests as a component of stockholders’ equity in the consolidated balance sheets. Additionally, the Company has presented the net income attributable to OppFi and the noncontrolling ownership interests separately in the consolidated statements of operations.

8
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Emerging growth company: The Company is an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). The Company is permitted to delay the adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements apply to private companies. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Accounting pronouncements issued and adopted: In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of ASU No. 2022-02 is to provide guidance on troubled debt restructuring accounting model for creditors that have adopted Topic 326. Additionally, the guidance expands on vintage disclosure requirements. The guidance is effective for annual reporting periods beginning after December 15, 2022, including interim periods within the annual reporting period. The adoption of ASU No. 2022-02 did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Accounting pronouncements issued and not yet adopted: In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The purpose of ASU No. 2020-04 is to provide optional guidance for a period of time related to accounting for reference rate reform on financial reporting. It is intended to reduce the potential burden of reviewing contract modifications related to discontinued rates. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope. The purpose of ASU No. 2021-01 is to expand guidance on contract modifications and hedge accounting. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The purpose of ASU No. 2022-06 is to defer the effective date of the provisions of ASU 2020-04 from December 31, 2022 to December 31, 2024. The amendments and expedients in these updates are effective as of March 12, 2020 through December 31, 2024 and may be elected by topic. The Company is currently evaluating the impact of ASU No. 2020-04, 2021-01 and 2022-06 on the Company’s consolidated financial statements.

Note 3. Finance Receivables

Finance receivables at fair value: The components of installment finance receivables at fair value as of September 30, 2023 and December 31, 2022 were as follows (in thousands):

September 30, 2023December 31, 2022
Unpaid principal balance of finance receivables - accrual$385,893 $369,643 
Unpaid principal balance of finance receivables - non-accrual30,040 32,537 
Unpaid principal balance of finance receivables$415,933 $402,180 
Finance receivables at fair value - accrual$445,139 $436,552 
Finance receivables at fair value - non-accrual4,920 4,944 
Finance receivables at fair value, excluding accrued interest and fees receivable450,059 441,496 
Accrued interest and fees receivable16,406 15,800 
Finance receivables at fair value$466,465 $457,296 
Difference between unpaid principal balance and fair value$34,126 $39,316 

The Company’s policy is to discontinue and reverse the accrual of interest income on installment finance receivables at the earlier of 60 days past due on a recency basis or 90 days past due on a contractual basis. As of September 30, 2023, the aggregate unpaid principal balance and fair value of installment finance receivables 90 days or more past due on a contractual basis was $15.9 million and $2.5 million, respectively. As of December 31, 2022, the aggregate unpaid principal balance and fair value of installment finance receivables 90 days or more past due on a contractual basis was $17.6 million and $2.7 million, respectively.

9
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Changes in the fair value of installment finance receivables at fair value for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Balance at the beginning of the period$446,956 $450,703 $457,296 $383,890 
Originations192,906 185,092 539,152 550,483 
Repayments(118,411)(109,519)(366,126)(318,677)
Accrued interest and fees receivable2,316 2,390 606 4,649 
Charge-offs, net (1)(56,315)(67,709)(159,273)(161,479)
Net change in fair value (1)(987)(2,892)(5,190)(801)
Balance at the end of the period$466,465 $458,065 $466,465 $458,065 
(1) Included in "Change in fair value of finance receivables" in the consolidated statements of operations.

Finance receivables at amortized cost, net: The components of finance receivables at amortized cost as of September 30, 2023 and December 31, 2022 were as follows (in thousands):

September 30, 2023December 31, 2022
Finance receivables$2,355 $730 
Accrued interest and fees3 9 
Unearned annual fee income(66)— 
Allowance for credit losses(2,083)(96)
Finance receivables at amortized cost, net$209 $643 

Changes in the allowance for credit losses on finance receivables at amortized cost for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Beginning balance $2,411 $1,045 $96 $803 
Provisions for credit losses on finance receivables195 1,017 4,131 2,043 
Finance receivables charged off(535)(831)(2,159)(1,615)
Recoveries of charge offs12 1 15 1 
Ending balance$2,083 $1,232 $2,083 $1,232 

10
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
The following is an assessment of the credit quality of finance receivables at amortized cost and presents the recency and contractual delinquency of the finance receivable portfolio as of September 30, 2023 and December 31, 2022 (in thousands):

September 30, 2023December 31, 2022
Recency delinquencyContractual delinquencyRecency delinquencyContractual delinquency
Current$1,697 $1,659 $638 $585 
Delinquency
30-59 days130 132 45 44 
60-89 days97 104 47 59 
90+ days431 460 — 42 
Total delinquency658 696 92 145 
Finance receivables$2,355 $2,355 $730 $730 

In accordance with the Company’s income recognition policy, finance receivables at amortized cost in non-accrual status as of September 30, 2023 and December 31, 2022 were $38 thousand and $0.1 million, respectively.

Note 4. Property, Equipment and Software, Net

Property, equipment and software consisted of the following (in thousands):
September 30, 2023December 31, 2022
Capitalized technology$53,443 $46,760 
Furniture, fixtures and equipment3,825 3,680 
Leasehold improvements979 979 
Total property, equipment and software58,247 51,419 
Less accumulated depreciation and amortization(47,149)(37,380)
Property, equipment and software, net$11,098 $14,039 

Depreciation and amortization expense was $3.1 million and $3.5 million for the three months ended September 30, 2023 and 2022, respectively, and $9.8 million and $10.1 million for the nine months ended September 30, 2023 and 2022, respectively.

Note 5. Accrued Expenses

Accrued expenses consisted of the following (in thousands):
September 30, 2023December 31, 2022
Accrual for services rendered and goods purchased$9,518 $8,589 
Accrued payroll and benefits5,737 8,646 
Other6,648 5,985 
Total$21,903 $23,220 

Note 6. Leases

In April 2023, the Company entered into a lease agreement under a non-cancelable operating lease agreement with an unrelated party, expiring on May 31 2024. The lease provides for monthly lease payments of $12 thousand. The Company recognized a right-to-use asset of $0.2 million and lease liability of $0.2 million related to this lease agreement.

Operating lease cost, which is included in occupancy expense in the consolidated statements of operations, totaled $1.1 million and $1.1 million, respectively, of which $0.5 million and $0.5 million were related to variable lease payments, for the three months ended September 30, 2023 and 2022, respectively. Operating lease cost totaled $3.3 million and $3.2 million, of which $1.5 million and $1.5 million was related to variable lease payments, for the nine months ended September 30, 2023 and 2022, respectively. Cash paid for amounts included in the measurement of lease liabilities was $0.6 million and $1.8 million for three
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OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
and nine months ended September 30, 2023, respectively. Cash paid for amounts included in the measurement of lease liabilities totaled $0.6 million and $1.7 million for the three and nine months ended September 30, 2022, respectively.

In connection with its operating lease agreement for office facilities through September 2030, the Company executed a letter of credit. As of September 30, 2023 and December 31, 2022, there were no outstanding balances on the letter of credit.

Sublease income, which is included in other income in the consolidated statements of operations, totaled $0.1 million and $0.2 million for three and nine months ended September 30, 2023, respectively.

The components of lease costs are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Operating lease cost$1,101 $1,084 $3,299 $3,209 
Sublease income(80)— (239)— 
Total lease cost$1,021 $1,084 $3,060 $3,209 

Future minimum lease payments as of September 30, 2023 are as follows (in thousands):

Year Amount
Remainder of 2023$633 
20242,470 
20252,482 
20262,557 
20272,633 
20282,712 
Thereafter4,937 
Total lease payments18,424 
Less: imputed interest(2,920)
Operating lease liability$15,504 

The weighted average remaining lease term and discount rate as of September 30, 2023 are as follows:

Weighted average remaining lease term (in years)7.0
Weighted average discount rate5 %


12
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7.    Borrowings

The following is a summary of the Company’s outstanding borrowings as of September 30, 2023 and December 31, 2022, including borrowing capacity as of September 30, 2023 (in thousands):

PurposeBorrowerBorrowing CapacitySeptember 30, 2023December 31, 2022
Interest Rate as of September 30, 2023
Maturity Date
Secured borrowing payableOpportunity Funding SPE II, LLC$— $— $756 15.00%—
Senior debt, net
Revolving line of creditOpportunity Funding SPE V, LLC; Opportunity Funding SPE VII, LLC (Tranche A)$— $— $37,500 
SOFR plus 7.36%
April 2024(1)
Revolving line of creditOpportunity Funding SPE V, LLC (Tranche B)125,000 109,300 121,647 
SOFR plus 6.75%
June 2026(2)
Revolving line of creditOpportunity Funding SPE V, LLC (Tranche C)125,000 37,500 — 
SOFR plus 7.50%
July 2027
Revolving line of creditOpportunity Funding SPE IV, LLC; SalaryTap Funding SPE, LLC— — — 
SOFR plus 0.11% plus 3.85%
February 2024(3)
Revolving line of creditOpportunity Funding SPE IX, LLC150,000 93,871 91,871 
SOFR plus 7.50%
December 2026
Revolving line of creditGray Rock SPV LLC75,000 52,156 44,716 
SOFR plus 7.25%
April 2025
Total revolving lines of credit475,000 292,827 295,734 
Term loan, netOppFi-LLC50,000 49,345 48,954 
LIBOR plus 10.00%
March 2025
Total senior debt, net$525,000 $342,172 $344,688 
Notes payable
Financed insurance premiumOppFi-LLC$— $— $1,616 7.07%July 2023
Financed insurance premiumOppFi-LLC2,173 2,173 — 9.70%June 2024
Total notes payable$2,173 $2,173 $1,616 

(1) Maturity date as of December 31, 2022 and for the subsequent period until Tranche A of this revolving line of credit was terminated in July 2023.
(2) Borrower included Opportunity Funding SPE VII, LLC until the revolving line of credit was amended in July 2023.
(3) Maturity date as of December 31, 2022 and for the subsequent period until the revolving line of credit was terminated in February 2023.

Secured borrowing payable: On February 16, 2023, the borrowings under this secured borrowing payable were paid in full, of which borrowings totaling $0.1 million were forgiven. Subsequent to repayment, OppFi-LLC terminated the preferred return agreement. As of December 31, 2022, $165.0 million of finance receivables had been purchased with an active secured borrowing balance of $0.8 million.

No interest expense was recognized related to secured borrowings for the three months ended September 30, 2023 as the secured borrowing payable was paid in full and subsequently terminated in February 2023. Interest expense related to this facility was $0.1 million for the three months ended September 30, 2022. Interest expense related to this facility was $10 thousand and $1.3 million for the nine months ended September 30, 2023 and 2022, respectively. Additionally, the Company has capitalized $0.2 million in debt issuance costs related to secured borrowings. There were no amortized debt issuance costs related to secured borrowings for the three and nine months ended September 30, 2023 and 2022. As of September 30, 2023 and December 31, 2022, there were no unamortized debt issuance costs related to secured borrowings.




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OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Senior debt:

Revolving line of credit - Opportunity Funding SPE III, LLC

This facility was paid in full in December 2022. There was no interest expense associated with this facility for the three and nine months ended September 30, 2023. Interest expense related to this facility was $2.8 million and $8.0 million for the three and nine months ended September 30, 2022, respectively. Additionally, the Company previously capitalized $2.2 million in debt issuance costs in connection with this facility. There were no amortized debt issuance costs associated with this facility for the three and nine months ended September 30, 2023. Amortized debt issuance costs associated with this facility were $0.1 million and $0.5 million for the three and nine months ended September 30, 2022, respectively. As of September 30, 2023 and December 31, 2022, there were no unamortized debt issuance costs associated with this facility.

Revolving line of credit - Opportunity Funding SPE V LLC

On July 19, 2023, OppFi-LLC and Opportunity Funding SPE V, LLC, a Delaware limited liability company and wholly owned subsidiary of OppFi-LLC (“OF V Borrower”) entered into an Amended and Restated Revolving Credit Agreement (the “A&R Credit Agreement”), which amended and restated that certain Revolving Credit Agreement, dated as of April 15, 2019 (as previously amended, supplemented or otherwise modified, the “Prior Credit Agreement”), by and among OppFi-LLC, OF V Borrower, Opportunity Funding SPE VII, LLC, the other credit parties and guarantors thereto, Midtown Madison Management LLC as administrative agent and collateral agent, and the lenders party thereto.

The A&R Credit Agreement amended the Prior Credit Agreement to, among other things, increase the size of the facility under the Prior Credit Agreement from $200 million to $250 million, remove Opportunity Funding SPE VII, LLC, a Delaware limited liability company and indirect wholly owned subsidiary of OppFi-LLC, as a borrower and remove the concept of pledging OppFi Card receivables under the A&R Credit Agreement, including removing OppWin Card, LLC as a seller. The $250 million of availability under the A&R Credit Agreement is comprised of $125 million under the existing Tranche B and $125 million under a new Tranche C. In addition, OF V Borrower may request, at any time during the Tranche C commitment period, one (1) increase in the Tranche C committed amount in an amount equal to $25 million, resulting in an aggregate Tranche C commitment equal to $150 million. Loans under Tranche C bear interest at the Term Secured Overnight Financing Rate plus 7.5% with a commitment period until July 19, 2026 and a maturity date of July 19, 2027. A portion of the proceeds of the A&R Credit Agreement were used to repay in full the outstanding Tranche A loans under the Prior Credit Agreement.

Interest expense related to this facility was $4.7 million and $2.9 million for the three months ended September 30, 2023 and 2022, respectively, and $13.6 million and $5.5 million for the nine months ended September 30, 2023 and 2022, respectively. Additionally, the Company previously capitalized $4.1 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.2 million and $0.1 million for the three months ended September 30, 2023 and 2022, respectively, and $0.5 million and $0.4 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, the remaining balance of unamortized debt issuance costs associated with this facility was $2.2 million and $1.3 million, respectively.

Revolving line of credit - Opportunity Funding SPE VI, LLC

This facility was paid in full in June 2022. There were no interest expense associated with this facility for the three and nine months ended September 30, 2023. Interest expense related to this facility was $1.6 million for the nine months ended September 30, 2022. Additionally, the Company previously capitalized $0.9 million in debt issuance costs in connection with this facility. There were no amortized debt issuance costs associated with this facility for the three and nine months ended September 30, 2023. Amortized debt issuance costs associated with this facility were $0.1 million for the nine months ended September 30, 2022, respectively. As of September 30, 2023 and December 31, 2022, there was no unamortized debt issuance costs associated with this facility.

Revolving line of credit - Opportunity Funding SPE IV, LLC and SalaryTap Funding SPE, LLC

On February 15, 2023, the Company terminated the revolving line of credit agreement upon the end of the revolving commitment period.

There was no interest expense related to this facility for the three months ended September 30, 2023. Interest expense related to this facility was $0.1 million for the three months ended September 30, 2022. Interest expense related to this facility was $6 thousand and $0.3 million for the nine months ended September 30, 2023 and 2022, respectively. Additionally, the Company previously capitalized $1.1 million in debt issuance costs in connection with this facility. There were $9 thousand and $0.1 million amortized debt issuance costs associated with this facility for three months ended September 30, 2023 and 2022, respectively. Amortized debt issuance costs associated with this facility were $0.2 million and $0.2 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, there was no unamortized debt issuance costs
14
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
associated with this facility. As of December 31, 2022, unamortized debt issuance costs associated with this facility were $0.2 million.

Revolving line of credit - Opportunity Funding SPE IX, LLC

Interest expense related to this facility was $3.1 million and $8.9 million for the three and nine months ended September 30, 2023, respectively. Additionally, the Company previously capitalized $2.5 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.2 million and $0.6 million for the three and nine months ended September 30, 2023, respectively. As of September 30, 2023 and December 31, 2022, the remaining balance of unamortized debt issuance costs associated with this facility was $1.8 million and $2.2 million, respectively.

Revolving line of credit - Gray Rock SPV LLC

Interest expense related to this facility was $1.7 million and $1.0 million for the three months ended September 30, 2023 and 2022, respectively, and $4.4 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively. Additionally, the Company previously capitalized $0.5 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $39 thousand and $0.1 million for the three months ended September 30, 2023 and 2022, respectively, and $0.1 million and $0.1 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, the remaining balance of unamortized debt issuance costs associated with this facility was $0.2 million and $0.4 million, respectively.

Term loan, net

As of September 30, 2023 and December 31, 2022, the outstanding balance of $50.0 million was net of unamortized debt issuance costs of $0.7 million and $1.0 million, respectively.

On June 30, 2023, LIBOR was phased out. As such, the senior secured multi-draw term loan agreement is subject to the synthetic LIBOR rates until the senior secured multi-draw term loan agreement is amended.

Interest expense related to this facility was $2.0 million and $1.6 million for the three months ended September 30, 2023 and 2022, respectively, and $5.7 million and $4.6 million for the nine months ended September 30, 2023 and 2022, respectively. Additionally, the Company previously capitalized $2.4 million in debt issuance costs in connection with this facility. Amortized debt issuance costs associated with this facility were $0.2 million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively, and $0.4 million and $0.4 million for the nine months ended September 30, 2023 and 2022, respectively.

Notes payable: In August 2023, OppFi entered into a financing agreement for the financing of new insurance premiums totaling $2.4 million payable in ten monthly installments of $0.2 million through June 15, 2024.

Interest expense related to these notes payable was $26 thousand and $2 thousand for the three months ended September 30, 2023 and 2022, respectively, and $77 thousand and $4 thousand for the nine months ended September 30, 2023 and 2022, respectively.

As of September 30, 2023, required payments for all borrowings, excluding revolving lines of credit, for each of the next five years are as follows (in thousands):

YearAmount
Remainder of 2023$724 
20241,449 
202550,000 
2026— 
2027— 
2028— 
Total$52,173 





15
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8. Warrant Liabilities

As of September 30, 2023 and December 31, 2022, there were 11,887,500 Public Warrants and 3,451,937 Private Placement Warrants outstanding. As of September 30, 2023 and December 31, 2022, the Company recorded warrant liabilities of $1.1 million and $1.9 million, respectively, in the consolidated balance sheets. The change in fair value of the Public Warrants and Private Placement Warrants was decreased by $0.2 million and $0.1 million, respectively, for the three months ended September 30, 2023 and was decreased by $0.6 million and $0.2 million, respectively, for the nine months ended September 30, 2023. The change in fair value of the Public Warrants and Private Placement Warrants was decreased by $0.9 million and $0.4 million, respectively, for the three months ended September 30, 2022 and was decreased by $5.2 million and $1.8 million, respectively, for the nine months ended September 30, 2022.

Note 9. Stockholders’ Equity

Share repurchase: On January 6, 2022, OppFi announced that its Board of Directors (“Board”) had authorized a program to repurchase (“Repurchase Program”) up to $20.0 million in the aggregate of shares of Class A Common Stock. Repurchases under the Repurchase Program may be made from time to time, on the open market, in privately negotiated transactions, or by other methods, at the discretion of the management of the Company and in accordance with the limitations set forth in Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, and other applicable legal requirements. The timing and amount of the repurchases will depend on market conditions and other requirements. The Repurchase Program does not obligate the Company to repurchase any dollar amount or number of shares and the Repurchase Program may be extended, modified, suspended, or discontinued at any time. For each share of Class A Common Stock that the Company repurchases under the Repurchase Program, OppFi-LLC will redeem one Class A common unit of OppFi-LLC held by OppFi, decreasing the percentage ownership of OppFi-LLC by OppFi and relatively increasing the ownership by the Members. The Repurchase Program will expire in December 2023.

There were no repurchase activities during the three and nine months ended September 30, 2023. During the three months ended September 30, 2022, OppFi repurchased 88,262 shares of Class A Common Stock, which were held as treasury stock as of September 30, 2022, at an average purchase price of $3.46 per share for an aggregate purchase price of $0.3 million. During the nine months ended September 30, 2022, OppFi repurchased 703,914 shares of Class A Common Stock, which were held as treasury stock as of September 30, 2022, at an average purchase price of $3.47 per share for an aggregate purchase price of $2.5 million. As of September 30, 2023, $17.5 million of the repurchase authorization under the Repurchase Program remained available.

Note 10.    Stock-Based Compensation

On July 20, 2021, OppFi established the OppFi Inc. 2021 Equity Incentive Plan (“Plan”), which provides for the grant of awards in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards, and other stock-based awards to employees, non-employee directors, officers, and consultants. As of September 30, 2023, the maximum aggregate number of shares of Class A Common Stock that may be issued under the Plan (including from outstanding awards) was 17,257,521 shares. As of September 30, 2023, OppFi had only granted awards in the form of options, restricted stock units (“RSU”), and performance stock units (“PSU”).

Stock options: A summary of the Company’s stock option activity for the nine months ended September 30, 2023 is as follows:

Stock OptionsWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Outstanding as of December 31, 2022
1,978,972$12.99 8.7$— 
   Granted—— —— 
   Exercised—— —— 
   Forfeited(89,218)4.03 —— 
Outstanding as of September 30, 2023
1,889,754$13.41 7.8$— 
Exercisable as of September 30, 2023
1,373,245$14.18 7.8$— 

The Company recognized stock-based compensation expense related to stock options of $0.2 million and negative stock-based compensation expense related to stock options of $0.1 million due to forfeitures for the three months ended September 30, 2023
16
OppFi Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
and 2022, respectively. The Company recognized stock-based compensation expense related to stock options of $0.5 million and negative stock-based compensation expense related to stock options of $0.1 million due to forfeitures for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, the Company had unrecognized stock-based compensation related to stock options of $1.1 million and $1.7 million, respectively, that is expected to be recognized over an estimated weighted average period of approximately 2.0 years and 2.8 years, respectively.

Restricted stock units: A summary of the Company’s RSU activity for the nine months ended September 30, 2023 is as follows:

SharesWeighted- Average Grant Date Fair Value
Unvested as of December 31, 2022
2,174,842$4.23 
Granted665,3932.32 
Vested