Annual report pursuant to Section 13 and 15(d)

Merchant Account Agreements

v3.20.1
Merchant Account Agreements
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Merchant Account Agreements

NOTE 11: MERCHANT ACCOUNT AGREEMENTS

 

2018

 

During the year ended December 31, 2018, the Company entered into 65 merchant account agreements, whereby the Company agreed to borrow an aggregate of $70,947, net of $25,126 in original issue discounts and $6,914 in deferred financing costs, in exchange for daily repayment funded through the Company’s future receivables. The merchant account agreements are collateralized by the assets of the Company and are due in terms between one and six months. As of December 31, 2018, there were 18 merchant account agreements with an aggregate balance of $11,228, net of original issue discount of $6,746 and deferred financing costs of $2,380.

 

During the years ended December 31, 2018 and 2017, the Company recognized $30,008 and $401, respectively, in amortization of deferred financing costs and debt discounts from the amortization of original issuance discounts and deferred debt issuance costs on the straight-line method over the term of the related merchant account agreement, which approximates the effective interest method.

 

2017

 

During the year ended December 31, 2017, the Company entered into 24 merchant account agreements, whereby the Company agreed to borrow an aggregate of $11,632, net of $3,549 in original issue discounts and $672 in deferred financing costs, in exchange for daily repayment funded through the Company’s future receivables. The merchant account agreements are collateralized by the assets of the Company and are due in terms between one and six months. As of December 31, 2017, there were 12 merchant account agreements outstanding with an aggregate balance of $7,315, net of original issue discount of $2,576 and deferred financing costs of $500.