Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | WESTERN CAPITAL RESOURCES, INC. | |
Entity Central Index Key | 1,363,958 | |
Document Type | 10-Q | |
Trading Symbol | WCRS | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,390,997 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash | $ 10,060,406 | $ 14,159,975 |
Loans receivable (less allowance for losses of $729,000 and $1,036,000, respectively) | 3,939,432 | 4,438,276 |
Accounts receivable (less allowance for losses of $124,000 and $96,000, respectively) | 1,800,686 | 1,716,867 |
Inventory | 9,652,531 | 9,095,460 |
Prepaid expenses and other | 3,630,208 | 3,727,284 |
TOTAL CURRENT ASSETS | 29,083,263 | 33,137,862 |
NOTES RECEIVABLE | 3,433,856 | 2,920,112 |
PROPERTY AND EQUIPMENT, net | 10,353,039 | 9,696,620 |
GOODWILL | 5,796,528 | 5,796,528 |
INTANGIBLE ASSETS, net | 7,257,050 | 7,536,945 |
OTHER | 1,310,465 | 1,122,585 |
TOTAL ASSETS | 57,234,201 | 60,210,652 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 9,054,923 | 13,002,381 |
Other current liabilities | 2,195,895 | 2,242,372 |
Income taxes payable | 265,813 | |
Note payable - short-term | 21,064 | 55,819 |
Current portion long-term debt | 1,780,000 | 1,780,000 |
Current portion capital lease obligations | 45,806 | 54,020 |
Deferred revenue | 1,502,252 | 1,427,358 |
TOTAL CURRENT LIABILITIES | 14,599,940 | 18,827,763 |
LONG-TERM LIABILITIES | ||
Notes payable, net of current portion | 6,732,855 | 8,681,545 |
Capital lease obligations, net of current portion | 71,386 | 94,762 |
Deferred income taxes | 1,673,000 | 1,775,000 |
Other | 177,842 | 143,080 |
TOTAL LONG-TERM LIABILITIES | 8,655,083 | 10,694,387 |
TOTAL LIABILITIES | 23,255,023 | 29,522,150 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
WESTERN SHAREHOLDERS' EQUITY | ||
Common stock, $0.001 par value, 12,500,000 shares authorized, 9,390,997 and 9,497,871 shares issued and outstanding. | 939 | 950 |
Additional paid-in capital | 29,015,990 | 28,997,087 |
Retained earnings | 4,934,644 | 1,643,996 |
TOTAL WESTERN SHAREHOLDERS' EQUITY | 33,951,573 | 30,642,033 |
NONCONTROLLING INTERESTS | 27,605 | 46,469 |
TOTAL EQUITY | 33,979,178 | 30,688,502 |
TOTAL LIABILITIES AND EQUITY | $ 57,234,201 | $ 60,210,652 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance | $ 729,000 | $ 1,036,000 |
Accounts receivable, allowance | $ 124,000 | $ 96,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 12,500,000 | 12,500,000 |
Common stock, issued | 9,390,997 | 9,497,871 |
Common stock, outstanding | 9,390,997 | 9,497,871 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Sales and associated fees | $ 24,739,956 | $ 19,064,101 | $ 49,299,086 | $ 39,079,643 |
Financing fees and interest | 2,119,747 | 2,340,968 | 4,353,156 | 4,825,188 |
Royalty and franchise fees, net | 3,021,402 | 2,595,614 | 6,054,028 | 5,390,370 |
Other revenue | 5,909,306 | 3,171,743 | 11,719,147 | 6,312,511 |
Total Revenues | 35,790,411 | 27,172,426 | 71,425,417 | 55,607,712 |
COST OF REVENUES | ||||
Cost of sales | 12,753,066 | 9,377,949 | 24,811,820 | 19,815,834 |
Provisions for loans receivable losses | 250,734 | 428,613 | 488,315 | 731,485 |
Other | 729,476 | 603,667 | 1,377,673 | 1,157,081 |
Total Cost of Revenues | 13,733,276 | 10,410,229 | 26,677,808 | 21,704,400 |
GROSS PROFIT | 22,057,135 | 16,762,197 | 44,747,609 | 33,903,312 |
OPERATING EXPENSES | ||||
Salaries, wages and benefits | 10,252,169 | 6,677,803 | 20,243,560 | 13,426,753 |
Occupancy | 3,172,317 | 1,897,270 | 6,126,373 | 3,871,075 |
Advertising, marketing and development | 2,294,251 | 2,266,522 | 4,303,401 | 4,217,531 |
Depreciation | 374,225 | 295,157 | 724,513 | 571,749 |
Amortization | 139,374 | 140,873 | 279,893 | 281,863 |
Other | 3,073,413 | 2,511,751 | 6,614,080 | 5,250,977 |
Total Operating Expenses | 19,305,749 | 13,789,376 | 38,291,820 | 27,619,948 |
OPERATING INCOME | 2,751,386 | 2,972,821 | 6,455,789 | 6,283,364 |
OTHER INCOME (EXPENSES): | ||||
Interest income | 67,564 | 957 | 131,639 | 2,009 |
Interest expense | (110,415) | (150,714) | (248,567) | (319,725) |
Total Other Income (Expense) | (42,851) | (149,757) | (116,928) | (317,716) |
INCOME BEFORE INCOME TAXES | 2,708,535 | 2,823,064 | 6,338,861 | 5,965,648 |
INCOME TAX EXPENSE | 957,000 | 1,034,000 | 2,320,000 | 2,201,000 |
NET INCOME | 1,751,535 | 1,789,064 | 4,018,861 | 3,764,648 |
Less net income attributable to noncontrolling interests | (7,436) | (4,553) | (12,521) | (8,738) |
NET INCOME ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | $ 1,744,099 | $ 1,784,511 | $ 4,006,340 | $ 3,755,910 |
EARNINGS PER SHARE ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | ||||
Basic and diluted (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.42 | $ 0.4 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Basic and diluted (in shares) | 9,390,997 | 9,497,534 | 9,431,739 | 9,497,534 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net Income | $ 4,018,861 | $ 3,764,648 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 724,513 | 571,749 |
Amortization | 279,893 | 281,863 |
Share based compensation | 18,903 | 35,167 |
Deferred income taxes | (102,000) | 313,000 |
Loss on disposal of property and equipment | 24,530 | 9,953 |
Changes in operating assets and liabilities: | ||
Loans receivable | 498,844 | 459,191 |
Accounts receivable | (83,819) | 445,254 |
Inventory | (557,071) | 380,291 |
Prepaid expenses and other assets | (90,804) | 973,187 |
Accounts payable and accrued expenses | (4,213,269) | (3,118,195) |
Deferred revenue and other current liabilities | 28,417 | (390,943) |
Accrued liabilities and other - long-term | 34,762 | 22,069 |
Net cash provided by operating activities | 581,760 | 3,747,234 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,419,921) | (929,291) |
Acquisition of stores, net of cash acquired | (588,241) | |
Advances on note receivable, net | (513,744) | |
Proceeds from disposal of property and equipment | 14,459 | |
Net cash used by investing activities | (1,919,206) | (1,517,532) |
FINANCING ACTIVITIES | ||
Payments on notes payable - short-term | (34,755) | |
Payments on line of credit, net | (998,426) | |
Advances on notes payable - long-term | 418,301 | |
Payments on notes payable - long-term | (950,264) | (1,801,638) |
Common stock redemption | (480,928) | |
Advances on capital lease | 185,318 | |
Payments on capital lease | (31,590) | (54,542) |
Subsidiary dividends to noncontrolling interests | (31,385) | |
Dividend paid | (234,775) | (237,467) |
Net cash used in financing activities | (2,762,123) | (1,490,028) |
NET INCREASE (DECREASE) IN CASH | (4,099,569) | 739,674 |
CASH | ||
Beginning of period | 14,159,975 | 7,847,669 |
End of period | 10,060,406 | 8,587,343 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 3,401,436 | 1,490,444 |
Interest paid | 239,290 | 451,271 |
Non-cash Investing and Financing Activities: | ||
Long-term debt proceeds used to pay off debt and interest | 3,021,699 | |
Long-term debt proceeds used to pay prepaid financing costs | $ 60,000 |
Basis of Presentation, Nature o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 1. Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies – Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the Condensed Consolidated Financial Statements and footnotes thereto included in our Form 10-K for the year ended December 31, 2016. The condensed consolidated balance sheet at December 31, 2016, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP. Nature of Business Western Capital Resources, Inc. (WCR) is a parent company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below. ● Franchise o AlphaGraphics, Inc. (AGI) (99.2%) – franchisor of 253 domestic and 25 international AlphaGraphics Business Centers which specialize in the planning, production, and management of visual communications for businesses and individuals throughout the world. ● Cellular Retail o PQH Wireless, Inc. (PQH) (100%) – operates cellular retail stores (215 owned and operated plus 53 operated under management agreement as of June 30, 2017), as an exclusive dealer of the Cricket brand. ● Direct to Consumer o J & P Park Acquisitions, Inc. (JPPA) (100%) – an online and direct marketing distribution retailer of live plants, seeds, holiday gifts and garden accessories selling its products under Park Seed, Jackson & Perkins, and Wayside Gardens brand names as well as a wholesaler under the Park Wholesale brand. o Restorers Acquisition, Inc. (RAI) (100%) – an online and direct marketing distribution retailer of home improvement and restoration products operating under Van Dyke’s Restorers. o J & P Real Estate, LLC (JPRE) (100%) – owns real estate utilized as JPPA’s distribution and warehouse facility and the corporate offices of JPPA and RAI. ● Consumer Finance o Wyoming Financial Lenders, Inc. (WFL) (100%) – owns and operates “payday” stores (40 as of June 30, 2017) in seven states (Colorado, Iowa, Kansas, Nebraska, North Dakota, Wisconsin and Wyoming) providing sub-prime short-term uncollateralized non-recourse “cash advance” or “payday” loans typically ranging from $100 to $500 with a maturity of generally two to four weeks, sub-prime short-term uncollateralized non-recourse installment loans typically ranging from $300 to $800 with a maturity of six months, check cashing and other money services to individuals. o Express Pawn, Inc. (EPI) (100%) – owns and operates retail pawn stores (three as of June 30, 2017) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of primarily used merchandise. References in these financial statement notes to “Company” or “we” refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such “AGI,” “PQH,” “JPPA,” “RAI,” “JPRE,” “WFL” or “EPI” are references only to those companies. Basis of Consolidation The consolidated financial statements include the accounts of the WCR, its wholly owned subsidiaries and other entities in which the Company owns a controlling financial interest. For financial interests in which the Company owns a controlling financial interest, the Company applies the provisions of ASC 810 applicable to reporting the equity and net income or loss attributable to noncontrolling interests. All significant intercompany balances and transactions of the Company have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the notes and loans receivable allowance, carrying value and impairment of long-lived goodwill and intangible assets, inventory valuation and obsolescence, estimated useful lives of property and equipment, gift certificate and merchandise credits liability and deferred taxes and tax uncertainties. Reclassifications Certain Statements of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the three and six month periods ended June 30, 2017. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. This converged standard is effective for annual and interim periods beginning after December 15, 2017. The Company is currently assessing the potential effects on our financial condition, results of operations and consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) related to recognition of lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that annual period, with early adoption permitted and to be applied using a modified retrospective approach. The Company is currently evaluating the impact the ASU will have on our financial condition, results of operations and consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) related to the measurement of credit losses on financial instruments. The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. This ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within that annual period, with early adoption permitted and the standard to be applied using a modified retrospective approach. The Company is currently evaluating the impact the ASU will have on our financial condition, results of operations and consolidated financial statements. No other new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the consolidated financial statements. |
Risks Inherent in the Operating
Risks Inherent in the Operating Environment | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Risks Inherent in the Operating Environment | 2. Risks Inherent in the Operating Environment – Regulatory The Company’s Consumer Finance segment activities are highly regulated under numerous local, state, and federal laws, regulations and rules, which are subject to change. New laws, regulations or rules could be enacted or issued, interpretations of existing laws, regulations or rules may change and enforcement action by regulatory agencies may intensify. Over the past several years, consumer advocacy groups and certain media reports have advocated governmental action to prohibit or severely restrict sub-prime lending activities of the kind conducted by the Company. The federal Consumer Financial Protection Bureau has indicated that it will use its authority to further regulate the payday industry and has been actively involved in the enforcement of existing consumer-protection laws applicable to the payday industry. Any adverse change in present local, state, and federal laws or regulations that govern or otherwise affect lending could result in the Consumer Finance segment’s curtailment or cessation of operations in certain or all jurisdictions or locations. Furthermore, any failure to comply with any applicable local, state or federal laws or regulations could result in fines, litigation, store location closure or negative publicity. Any such change or failure would have a corresponding impact on the Company’s and segment’s results of operations and financial condition, primarily through a decrease in revenues resulting from the cessation or curtailment of operations, decrease in operating income through increased legal expenditures or fines, and could also negatively affect the Company’s general business prospects due to lost or decreased operating income or if negative publicity effects its ability to obtain additional financing as needed. In addition, the passage of federal or state laws and regulations or changes in interpretations of them could, at any point, essentially prohibit the business we conduct in the Consumer Finance segment from conducting its lending business in its current form. Any such legal or regulatory change would certainly have a material and adverse effect on the Company, its operating results, financial condition and prospects, and perhaps even the viability of the business we conduct in the Consumer Finance segment. |
Loans Receivable
Loans Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans Receivable | 3. Loans Receivable – The Consumer Finance segment’s outstanding loans receivable aging was as follows: June 30, 2017 Payday Installment Pawn & Total Current $ 3,266,323 $ 224,554 $ 302,681 $ 3,793,558 1-30 250,525 35,028 — 285,553 31-60 152,745 16,978 — 169,723 61-90 104,203 10,381 — 114,584 91-120 94,127 7,164 — 101,291 121-150 77,661 4,855 — 82,516 151-180 117,909 3,298 — 121,207 4,063,493 302,258 302,681 4,668,432 Less Allowance (652,000 ) (77,000 ) — (729,000 ) $ 3,411,493 $ 225,258 $ 302,681 $ 3,939,432 December 31, 2016 Payday Installment Pawn & Total Current $ 3,683,603 $ 272,703 $ 284,460 $ 4,240,766 1-30 253,297 44,433 — 297,730 31-60 201,375 27,905 — 229,280 61-90 185,072 18,747 — 203,819 91-120 159,435 15,737 — 175,172 121-150 176,625 8,889 — 185,514 151-180 134,171 7,824 — 141,995 4,793,578 396,238 284,460 5,474,276 Less Allowance (953,000 ) (83,000 ) — (1,036,000 ) $ 3,840,578 $ 313,238 $ 284,460 $ 4,438,276 |
Loans Receivable Allowance
Loans Receivable Allowance | 6 Months Ended |
Jun. 30, 2017 | |
Provision for Loan and Lease Losses [Abstract] | |
Loans Receivable Allowance | 4. Loans Receivable Allowance – A rollforward of the Consumer Finance segment’s loans receivable allowance is as follows: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Loans receivable allowance, beginning of period $ 1,036,000 $ 1,177,000 Provision for loan losses charged to expense 488,315 1,605,867 Charge-offs, net (795,315 ) (1,746,867 ) Loans receivable allowance, end of period $ 729,000 $ 1,036,000 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | 5. Accounts Receivable – A breakdown of accounts receivables by segment are as follows: June 30, 2017 Franchise Cellular Direct to Consumer Consumer Finance Total Accounts receivable $ 1,427,065 $ 267,494 $ 224,139 $ 5,988 $ 1,924,686 Less allowance (100,000 ) — (24,000 ) — (124,000 ) Net account receivable $ 1,327,065 $ 267,494 $ 200,139 $ 5,988 $ 1,800,686 December 31, 2016 Franchise Cellular Direct to Consumer Consumer Finance Total Accounts receivable $ 1,103,210 $ 333,800 $ 363,426 $ 12,431 $ 1,812,867 Less allowance (83,000 ) — (13,000 ) — (96,000 ) Net account receivable $ 1,020,210 $ 333,800 $ 350,426 $ 12,431 $ 1,716,867 |
Notes Payable - Long Term
Notes Payable - Long Term | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable - Long Term | 6. Notes Payable – Long Term – June 30, 2017 December 31, 2016 Revolving credit facility (with a credit limit of $3,000,000) to a financial institution with monthly payments of interest only at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries, maturing April 21, 2018 $ — $ 998,426 Note pa yab le to a financial institution with monthly principal payment of $58,333 plus interest at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries, maturing April 21, 2021 2,741,667 3,091,667 Note pa yab le to a financial institution with monthly principal payment of $56,667 plus interest at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries, maturing December 1, 2021 2,999,740 3,400,000 Subsidiary note pa yab le to a financial institution with monthly principal payment of $33,334 plus annual paydowns equal to JPRE’s net cash flow from operations due within 120 days of the calendar year end plus interest at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by JPRE assets, maturing June 5, 2019 when remaining principal balance is due 2,771,448 2,971,452 Total 8,512,855 10,461,545 Less current maturities (1,780,000 ) (1,780,000 ) $ 6,732,855 $ 8,681,545 At June 30, 2017 and December 31, 2016, approximately $6,259,000 and $4,510,000 of credit was available under the credit facilities, respectively. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Equity | 7. Equity – In March 2017, the Company redeemed 106,874 shares of common stock for $480,928 in a private and unsolicited transaction |
Cash Dividends
Cash Dividends | 6 Months Ended |
Jun. 30, 2017 | |
Dividends [Abstract] | |
Cash Dividends | 8. Cash Dividends – Date declared February 24, 2017 Record date March 17, 2017 Date paid March 24, 2017 Dividend per share of common stock $ 0.025 Date declared May 12, 2017 Record date July 14, 2017 Date paid July 24, 2017 Dividend per share of common stock $ 0.025 |
Other Operating Expense
Other Operating Expense | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | 9. Other Operating Expense – A breakout of other expense is as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Bank fees $ 594,390 $ 497,084 $ 1,144,739 $ 935,118 Collection costs 91,528 109,963 181,422 226,151 Conference expense 26 29,151 289,232 294,556 Insurance 265,791 173,326 515,799 344,889 Management and advisory fees 201,662 203,504 425,143 424,529 Professional and consulting fees 596,460 447,735 1,407,590 1,042,945 Supplies 420,672 176,650 752,744 359,924 Other 902,884 874,338 1,897,411 1,622,865 $ 3,073,413 $ 2,511,751 $ 6,614,080 $ 5,250,977 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information – Segment information related to the three and six month periods ended June 30, 2017 and 2016 is presented below: Three Months Ended June 30, 2017 (in thousands) Franchise Cellular Retail Direct to Consumer Corporate Total Revenue from external customers $ 4,033 $ 17,087 $ 12,127 $ 2,543 $ — $ 35,790 Net income (loss) $ 930 $ (331 ) $ 1,103 $ 201 $ (151 ) $ 1,752 Expenditures for segmented assets $ 13 $ 531 $ 122 $ — $ — $ 666 Three Months Ended June 30, 2016 (in thousands) Franchise Cellular Retail Direct to Consumer Corporate Total Revenue from external customers $ 3,562 $ 8,083 $ 12,689 $ 2,838 $ — $ 27,172 Net income (loss) $ 568 $ 74 $ 1,103 $ 262 $ (218 ) $ 1,789 Expenditures for segment assets $ 7 $ 580 $ 24 $ 7 $ — $ 618 Six Months Ended June 30, 2017 (in thousands) Franchise Cellular Retail Direct to Consumer Corporate Total Revenue from external customers $ 7,977 $ 34,131 $ 24,031 $ 5,286 $ — $ 71,425 Net income (loss) $ 1,565 $ 289 $ 1,968 $ 455 $ (258 ) $ 4,019 Total segmented assets $ 8,729 $ 23,338 $ 12,520 $ 8,684 $ 3,963 $ 57,234 Expenditures for segment assets $ 13 $ 1,204 $ 203 $ — $ — $ 1,420 Six Months Ended June 30, 2016 (in thousands) Franchise Cellular Retail Direct to Consumer Consumer Finance Corporate Total Revenue from external customers $ 7,174 $ 17,858 $ 24,754 $ 5,822 $ — $ 55,608 Net income (loss) $ 1,083 $ 454 $ 2,007 $ 574 $ (353 ) $ 3,765 Total segment assets $ 9,681 $ 14,779 $ 14,393 $ 15,531 $ 374 $ 54,758 Expenditures for segment assets $ 15 $ 1,447 $ 38 $ 18 $ — $ — |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies – Pursuant to the Company’s numerous employment agreements, bonuses of approximately $112,000 and $443,000 were accrued for the three and six month periods ended June 30, 2017, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events – We evaluated all events or transactions that occurred after June 30, 2017 up through the date we issued these financial statements. During this period we did not have any material subsequent events that impacted our financial statements other than those listed below. Asset Purchase Agreement In 2016, PQH entered into an agreement to acquire 20 Cricket Wireless retail locations, with an option to purchase an additional 33 locations. The aggregate purchase price for all 53 locations was $7,200,000, subject to reduction in the event that the seller exercised an option to retain a 30% ownership in the acquired business. From November 22, 2016 through June 30, 2017, PQH operated the store locations under a management agreement. Effective July 1, 2017, we consummated the acquisition transaction by acquiring all 53 locations through a subsidiary of PQH, and the seller exercised its option to retain a 30% ownership interest in the acquired business. As a result, PQH owns 70% of the newly formed subsidiary and the seller owns the remaining 30% of that subsidiary. Credit Facility In July 2017, the Company made a $1 million payment to pay down the outstanding balance of the term debt which matures April 21, 2021 (see Note 6 for further information). |
Basis of Presentation, Nature18
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the Condensed Consolidated Financial Statements and footnotes thereto included in our Form 10-K for the year ended December 31, 2016. The condensed consolidated balance sheet at December 31, 2016, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP. |
Nature of Business | Nature of Business Western Capital Resources, Inc. (WCR) is a parent company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below. ● Franchise o AlphaGraphics, Inc. (AGI) (99.2%) – franchisor of 253 domestic and 25 international AlphaGraphics Business Centers which specialize in the planning, production, and management of visual communications for businesses and individuals throughout the world. ● Cellular Retail o PQH Wireless, Inc. (PQH) (100%) – operates cellular retail stores (215 owned and operated plus 53 operated under management agreement as of June 30, 2017), as an exclusive dealer of the Cricket brand. ● Direct to Consumer o J & P Park Acquisitions, Inc. (JPPA) (100%) – an online and direct marketing distribution retailer of live plants, seeds, holiday gifts and garden accessories selling its products under Park Seed, Jackson & Perkins, and Wayside Gardens brand names as well as a wholesaler under the Park Wholesale brand. o Restorers Acquisition, Inc. (RAI) (100%) – an online and direct marketing distribution retailer of home improvement and restoration products operating under Van Dyke’s Restorers. o J & P Real Estate, LLC (JPRE) (100%) – owns real estate utilized as JPPA’s distribution and warehouse facility and the corporate offices of JPPA and RAI. ● Consumer Finance o Wyoming Financial Lenders, Inc. (WFL) (100%) – owns and operates “payday” stores (40 as of June 30, 2017) in seven states (Colorado, Iowa, Kansas, Nebraska, North Dakota, Wisconsin and Wyoming) providing sub-prime short-term uncollateralized non-recourse “cash advance” or “payday” loans typically ranging from $100 to $500 with a maturity of generally two to four weeks, sub-prime short-term uncollateralized non-recourse installment loans typically ranging from $300 to $800 with a maturity of six months, check cashing and other money services to individuals. o Express Pawn, Inc. (EPI) (100%) – owns and operates retail pawn stores (three as of June 30, 2017) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of primarily used merchandise. References in these financial statement notes to “Company” or “we” refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such “AGI,” “PQH,” “JPPA,” “RAI,” “JPRE,” “WFL” or “EPI” are references only to those companies. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the WCR, its wholly owned subsidiaries and other entities in which the Company owns a controlling financial interest. For financial interests in which the Company owns a controlling financial interest, the Company applies the provisions of ASC 810 applicable to reporting the equity and net income or loss attributable to noncontrolling interests. All significant intercompany balances and transactions of the Company have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the notes and loans receivable allowance, carrying value and impairment of long-lived goodwill and intangible assets, inventory valuation and obsolescence, estimated useful lives of property and equipment, gift certificate and merchandise credits liability and deferred taxes and tax uncertainties. |
Reclassifications | Reclassifications Certain Statements of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the three and six month periods ended June 30, 2017. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP and IFRS. This converged standard is effective for annual and interim periods beginning after December 15, 2017. The Company is currently assessing the potential effects on our financial condition, results of operations and consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) related to recognition of lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that annual period, with early adoption permitted and to be applied using a modified retrospective approach. The Company is currently evaluating the impact the ASU will have on our financial condition, results of operations and consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) related to the measurement of credit losses on financial instruments. The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. This ASU is effective for annual reporting periods beginning after December 15, 2018 and interim periods within that annual period, with early adoption permitted and the standard to be applied using a modified retrospective approach. The Company is currently evaluating the impact the ASU will have on our financial condition, results of operations and consolidated financial statements. No other new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the consolidated financial statements. |
Loans Receivable (Table)
Loans Receivable (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of outstanding loans receivable aging | The Consumer Finance segment’s outstanding loans receivable aging was as follows: June 30, 2017 Payday Installment Pawn & Total Current $ 3,266,323 $ 224,554 $ 302,681 $ 3,793,558 1-30 250,525 35,028 — 285,553 31-60 152,745 16,978 — 169,723 61-90 104,203 10,381 — 114,584 91-120 94,127 7,164 — 101,291 121-150 77,661 4,855 — 82,516 151-180 117,909 3,298 — 121,207 4,063,493 302,258 302,681 4,668,432 Less Allowance (652,000 ) (77,000 ) — (729,000 ) $ 3,411,493 $ 225,258 $ 302,681 $ 3,939,432 December 31, 2016 Payday Installment Pawn & Total Current $ 3,683,603 $ 272,703 $ 284,460 $ 4,240,766 1-30 253,297 44,433 — 297,730 31-60 201,375 27,905 — 229,280 61-90 185,072 18,747 — 203,819 91-120 159,435 15,737 — 175,172 121-150 176,625 8,889 — 185,514 151-180 134,171 7,824 — 141,995 4,793,578 396,238 284,460 5,474,276 Less Allowance (953,000 ) (83,000 ) — (1,036,000 ) $ 3,840,578 $ 313,238 $ 284,460 $ 4,438,276 |
Loans Receivable Allowance (Tab
Loans Receivable Allowance (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Provision for Loan and Lease Losses [Abstract] | |
Schedule of loans receivable allowance | A rollforward of the Consumer Finance segment’s loans receivable allowance is as follows: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Loans receivable allowance, beginning of period $ 1,036,000 $ 1,177,000 Provision for loan losses charged to expense 488,315 1,605,867 Charge-offs, net (795,315 ) (1,746,867 ) Loans receivable allowance, end of period $ 729,000 $ 1,036,000 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of accounts receivables | A breakdown of accounts receivables by segment are as follows: June 30, 2017 Franchise Cellular Direct to Consumer Consumer Finance Tota Accounts receivable $ 1,427,065 $ 267,494 $ 224,139 $ 5,988 $ 1,924,686 Less allowance (100,000 ) — (24,000 ) — (124,000 ) Net account receivable $ 1,327,065 $ 267,494 $ 200,139 $ 5,988 $ 1,800,686 December 31, 2016 Franchise Cellular Direct to Consumer Consumer Finance Total Accounts receivable $ 1,103,210 $ 333,800 $ 363,426 $ 12,431 $ 1,812,867 Less allowance (83,000 ) — (13,000 ) — (96,000 ) Net account receivable $ 1,020,210 $ 333,800 $ 350,426 $ 12,431 $ 1,716,867 |
Notes Payable - Long Term (Tabl
Notes Payable - Long Term (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | June 30, 2017 December 31, 2016 Revolving credit facility (with a credit limit of $3,000,000) to a financial institution with monthly payments of interest only at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries, maturing April 21, 2018 $ — $ 998,426 Note pa yab le to a financial institution with monthly principal payment of $58,333 plus interest at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries, maturing April 21, 2021 2,741,667 3,091,667 Note pa yab le to a financial institution with monthly principal payment of $56,667 plus interest at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries, maturing December 1, 2021 2,999,740 3,400,000 Subsidiary note pa yab le to a financial institution with monthly principal payment of $33,334 plus annual paydowns equal to JPRE’s net cash flow from operations due within 120 days of the calendar year end plus interest at LIBOR plus 3.5% (4.625% at June 30, 2017), secured by JPRE assets, maturing June 5, 2019 when remaining principal balance is due 2,771,448 2,971,452 Total 8,512,855 10,461,545 Less current maturities (1,780,000 ) (1,780,000 ) $ 6,732,855 $ 8,681,545 |
Cash Dividends (Tables)
Cash Dividends (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Dividends [Abstract] | |
Schedule of cash dividends payable | Date declared February 24, 2017 Record date March 17, 2017 Date paid March 24, 2017 Dividend per share of common stock $ 0.025 Date declared May 12, 2017 Record date July 14, 2017 Date paid July 24, 2017 Dividend per share of common stock $ 0.025 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | A breakout of other expense is as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 Bank fees $ 594,390 $ 497,084 $ 1,144,739 $ 935,118 Collection costs 91,528 109,963 181,422 226,151 Conference expense 26 29,151 289,232 294,556 Insurance 265,791 173,326 515,799 344,889 Management and advisory fees 201,662 203,504 425,143 424,529 Professional and consulting fees 596,460 447,735 1,407,590 1,042,945 Supplies 420,672 176,650 752,744 359,924 Other 902,884 874,338 1,897,411 1,622,865 $ 3,073,413 $ 2,511,751 $ 6,614,080 $ 5,250,977 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information related to the three and six month periods ended June 30, 2017 and 2016 is presented below: Three Months Ended June 30, 2017 (in thousands) Franchise Cellular Retail Direct to Consumer Consumer Finance Corporate Total Revenue from external customers $ 4,033 $ 17,087 $ 12,127 $ 2,543 $ — $ 35,790 Net income (loss) $ 930 $ (331 ) $ 1,103 $ 201 $ (151 ) $ 1,752 Expenditures for segmented assets $ 13 $ 531 $ 122 $ — $ — $ 666 Three Months Ended June 30, 2016 (in thousands) Franchise Cellular Retail Direct to Consumer Consumer Finance Corporate Total Revenue from external customers $ 3,562 $ 8,083 $ 12,689 $ 2,838 $ — $ 27,172 Net income (loss) $ 568 $ 74 $ 1,103 $ 262 $ (218 ) $ 1,789 Expenditures for segment assets $ 7 $ 580 $ 24 $ 7 $ — $ 618 Six Months Ended June 30, 2017 (in thousands) Franchise Cellular Retail Direct to Consumer Consumer Finance Corporate Total Revenue from external customers $ 7,977 $ 34,131 $ 24,031 $ 5,286 $ — $ 71,425 Net income (loss) $ 1,565 $ 289 $ 1,968 $ 455 $ (258 ) $ 4,019 Total segmented assets $ 8,729 $ 23,338 $ 12,520 $ 8,684 $ 3,963 $ 57,234 Expenditures for segment assets $ 13 $ 1,204 $ 203 $ — $ — $ 1,420 Six Months Ended June 30, 2016 (in thousands) Franchise Cellular Retail Direct to Consumer Consumer Finance Corporate Total Revenue from external customers $ 7,174 $ 17,858 $ 24,754 $ 5,822 $ — $ 55,608 Net income (loss) $ 1,083 $ 454 $ 2,007 $ 574 $ (353 ) $ 3,765 Total segment assets $ 9,681 $ 14,779 $ 14,393 $ 15,531 $ 374 $ 54,758 Expenditures for segment assets $ 15 $ 1,447 $ 38 $ 18 $ — $ — |
Basis of Presentation, Nature26
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Narrative) | 6 Months Ended |
Jun. 30, 2017USD ($)Number | |
Franchising [Member] | Alpha Graphics, Inc. [Member] | |
Number of domestic business centers | 253 |
Number of international business centers | 25 |
Percentage of equity method investment | 99.20% |
Cellular Retail [Member] | PQH Wireless, Inc. [Member] | |
Number of stores | 215 |
Percentage of equity method investment | 100.00% |
Cellular Retail [Member] | PQH Wireless, Inc. [Member] | Management Agreement [Member] | |
Number of stores | 53 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Number of stores | 40 |
Percentage of equity method investment | 100.00% |
Number of states in which entity operates | 7 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Minimum [Member] | Payday [Member] | |
Non-recourse debt | $ | $ 100 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Minimum [Member] | Installment [Member] | |
Non-recourse debt | $ | 300 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Maximum [Member] | Payday [Member] | |
Non-recourse debt | $ | 500 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Maximum [Member] | Installment [Member] | |
Non-recourse debt | $ | $ 800 |
Consumer Finance [Member] | Express Pawn, Inc. [Member] | |
Number of stores | 3 |
Percentage of equity method investment | 100.00% |
Number of states in which entity operates | 2 |
Direct to Consumer [Member] | JPPA [Member] | |
Percentage of equity method investment | 100.00% |
Direct to Consumer [Member] | RAI [Member] | |
Percentage of equity method investment | 100.00% |
Direct to Consumer [Member] | JPRE [Member] | |
Percentage of equity method investment | 100.00% |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | $ 4,668,432 | $ 5,474,276 |
Less Allowance | (729,000) | (1,036,000) |
Notes, Loans and Financing Receivable, Net, current | 3,939,432 | 4,438,276 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,793,558 | 4,240,766 |
1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 285,553 | 297,730 |
31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 169,723 | 229,280 |
61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 114,584 | 203,819 |
91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 101,291 | 175,172 |
121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 82,516 | 185,514 |
151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 121,207 | 141,995 |
Payday and Title Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 4,063,493 | 4,793,578 |
Less Allowance | (652,000) | (953,000) |
Notes, Loans and Financing Receivable, Net, current | 3,411,493 | 3,840,578 |
Payday and Title Loans [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,266,323 | 3,683,603 |
Payday and Title Loans [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 250,525 | 253,297 |
Payday and Title Loans [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 152,745 | 201,375 |
Payday and Title Loans [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 104,203 | 185,072 |
Payday and Title Loans [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 94,127 | 159,435 |
Payday and Title Loans [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 77,661 | 176,625 |
Payday and Title Loans [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 117,909 | 134,171 |
Installment Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 302,258 | 396,238 |
Less Allowance | (77,000) | (83,000) |
Notes, Loans and Financing Receivable, Net, current | 225,258 | 313,238 |
Installment Loans [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 224,554 | 272,703 |
Installment Loans [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 35,028 | 44,433 |
Installment Loans [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 16,978 | 27,905 |
Installment Loans [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 10,381 | 18,747 |
Installment Loans [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 7,164 | 15,737 |
Installment Loans [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 4,855 | 8,889 |
Installment Loans [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,298 | 7,824 |
Pawn Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 302,681 | 284,460 |
Less Allowance | ||
Notes, Loans and Financing Receivable, Net, current | 302,681 | 284,460 |
Pawn Title [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 302,681 | 284,460 |
Pawn Title [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current |
Loans Receivable Allowance (Det
Loans Receivable Allowance (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Loans receivable allowance, beginning of period | $ 1,036,000 | $ 1,177,000 |
Provision for loan losses charged to expense | 488,315 | 1,605,867 |
Charge-offs, net | (795,315) | (1,746,867) |
Loans receivable allowance, end of period | $ 729,000 | $ 1,036,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable | $ 1,924,686 | $ 1,812,867 |
Less allowance | (124,000) | (96,000) |
Net account receivable | 1,800,686 | 1,716,867 |
Franchise [Member] | ||
Accounts receivable | 1,427,065 | 1,103,210 |
Less allowance | (100,000) | (83,000) |
Net account receivable | 1,327,065 | 1,020,210 |
Cellular Retail [Member] | ||
Accounts receivable | 267,494 | 333,800 |
Less allowance | ||
Net account receivable | 267,494 | 333,800 |
Direct to Consumer [Member] | ||
Accounts receivable | 224,139 | 363,426 |
Less allowance | (24,000) | (13,000) |
Net account receivable | 200,139 | 350,426 |
Consumer Finance [Member] | ||
Accounts receivable | 5,988 | 12,431 |
Less allowance | ||
Net account receivable | $ 5,988 | $ 12,431 |
Notes Payable - Long Term (Deta
Notes Payable - Long Term (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 8,512,855 | $ 10,461,545 |
Less current maturities | (1,780,000) | (1,780,000) |
Notes payable, noncurrent | 6,732,855 | 8,681,545 |
Note Payable To River City Equity, Inc. [Member] | ||
Debt Instrument [Line Items] | ||
Total | ||
Credit Facilities Overview [Member] | ||
Debt Instrument [Line Items] | ||
Total | 998,426 | |
Note Payable To Financial Institution [Member] | ||
Debt Instrument [Line Items] | ||
Total | ||
Note Payable To Financial Institution Two [Member] | ||
Debt Instrument [Line Items] | ||
Total | 2,741,667 | 3,091,667 |
Note Payable To Financial Institution Three [Member] | ||
Debt Instrument [Line Items] | ||
Total | 2,999,740 | 3,400,000 |
Note Payable To Financial Institution Four [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 2,771,448 | $ 2,971,452 |
Notes Payable - Long Term (De31
Notes Payable - Long Term (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Credit Facilities Overview [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 3,000,000 | |
Remaining maximum borrowing capacity | $ 6,259,000 | $ 4,510,000 |
Note Payable To Financial Institution Two [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 21, 2021 | |
Principal periodic payment | $ 58,333 | |
Description of variable rate | LIBOR plus 3.5% (4.625% at June 30, 2017) | |
Debt collateral | Secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries. | |
Note Payable To Financial Institution Three [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 1, 2021 | |
Principal periodic payment | $ 56,667 | |
Description of variable rate | LIBOR plus 3.5% (4.625% at June 30, 2017) | |
Debt collateral | Secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries. | |
Note Payable To Financial Institution Four [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 5, 2019 | |
Principal periodic payment | $ 33,334 | |
Description of variable rate | LIBOR plus 3.5% (4.625% at June 30, 2017) | |
Debt collateral | secured by JPRE assets | |
Note Payable To Financial Institution [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Apr. 21, 2018 | |
Description of variable rate | LIBOR plus 3.5% (4.625% at June 30, 2017) | |
Debt collateral | Secured by substantially all assets of the Company with stated guarantee amounts by subsidiaries. |
Equity (Details Narrative)
Equity (Details Narrative) | 1 Months Ended |
Mar. 31, 2017USD ($)shares | |
Equity [Abstract] | |
Value of common stock redemption | $ | $ 480,928 |
Number of shares for common stock redemption | shares | 106,874 |
Cash Dividends (Details)
Cash Dividends (Details) | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Dividends [Member] | |
Date declared | Feb. 24, 2017 |
Record date | Mar. 17, 2017 |
Date paid | Mar. 24, 2017 |
Dividend per share of common stock (in dollars per share) | $ 0.025 |
Dividends One [Member] | |
Date declared | May 12, 2017 |
Record date | Jul. 14, 2017 |
Date paid | Jul. 24, 2017 |
Dividend per share of common stock (in dollars per share) | $ 0.025 |
Other Operating Expense (Detail
Other Operating Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Bank fees | $ 594,390 | $ 497,084 | $ 1,144,739 | $ 935,118 |
Collection costs | 91,528 | 109,963 | 181,422 | 226,151 |
Conference expense | 26 | 29,151 | 289,232 | 294,556 |
Insurance | 265,791 | 173,326 | 515,799 | 344,889 |
Management and advisory fees | 201,662 | 203,504 | 425,143 | 424,529 |
Professional and consulting fees | 596,460 | 447,735 | 1,407,590 | 1,042,945 |
Supplies | 420,672 | 176,650 | 752,744 | 359,924 |
Other | 902,884 | 874,338 | 1,897,411 | 1,622,865 |
Total other expenses | $ 3,073,413 | $ 2,511,751 | $ 6,614,080 | $ 5,250,977 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | $ 35,790,411 | $ 27,172,426 | $ 71,425,417 | $ 55,607,712 | |
Net income (loss) | 1,751,535 | 1,789,064 | 4,018,861 | 3,764,648 | |
Total segment assets | 57,234,201 | 54,758,000 | 57,234,201 | 54,758,000 | $ 60,210,652 |
Expenditures for segment assets | 666,000 | 618,000 | 1,420,000 | ||
Franchise [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | 4,033,000 | 3,562,000 | 7,977,000 | 7,174,000 | |
Net income (loss) | 930,000 | 568,000 | 1,565,000 | 1,083,000 | |
Total segment assets | 8,729,000 | 9,681,000 | 8,729,000 | 9,681,000 | |
Expenditures for segment assets | 13,000 | 7,000 | 13,000 | 15,000 | |
Cellular Retail [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | 17,087,000 | 8,083,000 | 34,131,000 | 17,858,000 | |
Net income (loss) | (331,000) | 74,000 | 289,000 | 454,000 | |
Total segment assets | 23,338,000 | 14,779,000 | 23,338,000 | 14,779,000 | |
Expenditures for segment assets | 531,000 | 580,000 | 1,204,000 | 1,447,000 | |
Direct to Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | 12,127,000 | 12,689,000 | 24,031,000 | 24,754,000 | |
Net income (loss) | 1,103,000 | 1,103,000 | 1,968,000 | 2,007,000 | |
Total segment assets | 12,520,000 | 14,393,000 | 12,520,000 | 14,393,000 | |
Expenditures for segment assets | 122,000 | 24,000 | 203,000 | 38,000 | |
Consumer Finance [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | 2,543,000 | 2,838,000 | 5,286,000 | 5,822,000 | |
Net income (loss) | 201,000 | 262,000 | 455,000 | 574,000 | |
Total segment assets | 8,684,000 | 15,531,000 | 8,684,000 | 15,531,000 | |
Expenditures for segment assets | 7,000 | 18,000 | |||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from external customers | |||||
Net income (loss) | (151,000) | (218,000) | (258,000) | (353,000) | |
Total segment assets | 3,963,000 | 374,000 | 3,963,000 | 374,000 | |
Expenditures for segment assets |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Employment Agreement [Member] | ||
Amount of bonus | $ 112,000 | $ 443,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | Jul. 01, 2017USD ($)Number |
Note Payable To Financial Institution Two [Member] | |
Subsequent Event [Line Items] | |
Repayment of debt | $ 1,000,000 |
Asset Purchase Agreement [Member] | PQH Wireless, Inc. [Member] | |
Subsequent Event [Line Items] | |
Number of stores | Number | 53 |
Percentage of equity method investment | 70.00% |
Aggregate purchase price | $ 7,200,000 |
Percentage of equity method investment exercised | 30.00% |