Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 29, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | WESTERN CAPITAL RESOURCES, INC. | ||
Entity Central Index Key | 0001363958 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Reporting Status Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity File Number | 000-52015 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11,533,000 | ||
Entity Common Stock, Shares Outstanding | 9,249,900 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 32,054,935 | $ 27,132,540 |
Short-term investments | 17,088,073 | 14,756,665 |
Loans receivable (less allowance for credit losses of $315,000 and $673,000, respectively) | 1,941,180 | 3,860,411 |
Accounts receivable (less allowance for credit losses of $18,000 and $13,000, respectively) | 632,665 | 517,476 |
Inventory (less reserve of $847,000 and $1,065,000, respectively) | 8,729,368 | 8,330,691 |
Prepaid income taxes | 293,560 | |
Prepaid expenses and other | 2,877,699 | 2,679,859 |
TOTAL CURRENT ASSETS | 63,617,480 | 57,277,642 |
INVESTMENTS | 250,000 | 1,500,000 |
PROPERTY AND EQUIPMENT, net | 8,282,446 | 9,725,043 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 10,892,409 | 12,344,894 |
INTANGIBLE ASSETS, net | 3,573,802 | 4,041,650 |
LOANS RECEIVABLE | 368,071 | 694,987 |
OTHER | 471,991 | 525,884 |
GOODWILL | 5,796,528 | 5,796,528 |
TOTAL ASSETS | 93,252,727 | 91,906,628 |
CURRENT LIABILITIES | ||
Accounts payable | 7,073,640 | 7,710,222 |
Accrued payroll | 3,282,237 | 2,572,331 |
Current portion operating lease liabilities | 4,714,975 | 5,079,745 |
Other current liabilities | 1,371,930 | 1,276,613 |
Income taxes payable | 243,149 | |
Current portion notes payable | 65,414 | |
Current portion finance lease obligations | 1,161 | |
Contract liabilities | 685,454 | 794,830 |
TOTAL CURRENT LIABILITIES | 17,128,236 | 17,743,465 |
LONG-TERM LIABILITIES | ||
Notes payable, net of current portion | 1,019,837 | |
Operating lease liabilities, net of current portion | 6,696,418 | 7,444,789 |
Deferred income taxes | 370,000 | 385,000 |
TOTAL LONG-TERM LIABILITIES | 7,066,418 | 8,849,626 |
TOTAL LIABILITIES | 24,194,654 | 26,593,091 |
COMMITMENTS AND CONTINGENCIES (Note 21) | ||
WESTERN SHAREHOLDERS' EQUITY | ||
Common stock, $0.0001 par value, 12,500,000 shares authorized, 8,841,900 and 9,265,778 issued and outstanding as of December 31, 2020 and December 31, 2019, respectively. | 884 | 927 |
Additional paid-in capital | 29,031,741 | 29,031,741 |
Retained earnings | 38,470,323 | 33,706,035 |
TOTAL WESTERN SHAREHOLDERS' EQUITY | 67,502,948 | 62,738,703 |
NONCONTROLLING INTERESTS | 1,555,125 | 2,574,834 |
TOTAL EQUITY | 69,058,073 | 65,313,537 |
TOTAL LIABILITIES AND EQUITY | $ 93,252,727 | $ 91,906,628 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance for credit losses | $ 315,000 | $ 673,000 |
Accounts receivable, allowance for credit losses | 18,000 | 13,000 |
Inventory, allowance for losses | $ 847,000 | $ 1,065,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 12,500,000 | 12,500,000 |
Common stock, issued | 8,841,900 | 9,265,778 |
Common stock, outstanding | 8,841,900 | 9,265,778 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | ||
Total Revenues | $ 135,066,285 | $ 116,914,541 |
COST OF REVENUES | ||
Cost of sales | 59,289,750 | 50,043,585 |
Provisions for loans receivable credit losses | 274,049 | 975,938 |
Total Cost of Revenues | 59,563,799 | 51,019,523 |
GROSS PROFIT | 75,502,486 | 65,895,018 |
OPERATING EXPENSES | ||
Salaries, wages and benefits | 33,498,187 | 33,289,036 |
Occupancy | 10,827,695 | 11,038,556 |
Advertising, marketing and development | 5,933,500 | 6,857,809 |
Depreciation | 1,867,009 | 1,811,918 |
Amortization | 701,868 | 699,636 |
Other | 9,904,650 | 8,448,241 |
Total Operating Expenses | 62,732,909 | 62,145,196 |
OPERATING INCOME | 12,769,577 | 3,749,822 |
OTHER INCOME (EXPENSES): | ||
Dividend and interest income | 310,241 | 729,166 |
Interest expense | (41,396) | (115,438) |
Total Other Income (Expenses) | 268,845 | 613,728 |
INCOME BEFORE INCOME TAXES | 13,038,422 | 4,363,550 |
PROVISION FOR INCOME TAX EXPENSE | 2,790,305 | 908,000 |
NET INCOME | 10,248,117 | 3,455,550 |
LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (2,034,893) | (1,135,174) |
NET INCOME ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | $ 8,213,224 | $ 2,320,376 |
EARNINGS PER SHARE ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | ||
Basic and diluted (in dollars per share) | $ 0.9 | $ 0.25 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic and diluted (in shares) | 9,099,524 | 9,369,891 |
Sales and Associated Fees [Member] | ||
REVENUES | ||
Total Revenues | $ 108,696,878 | $ 91,769,074 |
Financing Fees and Interest [Member] | ||
REVENUES | ||
Total Revenues | 5,958,844 | 8,513,084 |
Other Revenue [Member] | ||
REVENUES | ||
Total Revenues | $ 20,410,563 | $ 16,632,383 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Noncontrolling Interests [Member] | Total |
Balance at beginning at Dec. 31, 2018 | $ 939 | $ 29,031,741 | $ 33,774,293 | $ 1,876,908 | $ 64,683,881 |
Balance at beginning (in shares) at Dec. 31, 2018 | 9,388,677 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,320,376 | 1,135,174 | 3,455,550 | ||
Noncontrolling interest equity contributions | 499,352 | (281,906) | |||
Distributions to noncontrolling interests | (936,600) | 936,600 | |||
Stock redemptions | $ (12) | (513,419) | (513,431) | ||
Stock redemptions (in shares) | (122,899) | ||||
Dividends paid | (1,875,215) | (1,875,215) | |||
Balance at end at Dec. 31, 2019 | $ 927 | 29,031,741 | 33,706,035 | 2,574,834 | 65,313,537 |
Balance at end (in shares) at Dec. 31, 2019 | 9,265,778 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,213,224 | 2,034,893 | 10,248,117 | ||
Noncontrolling interest equity contributions | |||||
Distributions to noncontrolling interests | (3,054,602) | (3,054,602) | |||
Stock redemptions | $ (43) | (2,305,063) | (2,305,106) | ||
Stock redemptions (in shares) | (423,878) | ||||
Dividends paid | (1,143,873) | (1,143,873) | |||
Balance at end at Dec. 31, 2020 | $ 884 | $ 29,031,741 | $ 38,470,323 | $ 1,555,125 | $ 69,058,073 |
Balance at end (in shares) at Dec. 31, 2020 | 8,841,900 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net Income | $ 10,248,117 | $ 3,455,550 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,867,009 | 1,811,918 |
Amortization | 701,868 | 699,636 |
Amortization of operating lease right-of-use assets | 5,476,851 | 5,710,933 |
Deferred income taxes | (15,000) | (410,000) |
Loss (gain) on disposal of assets | 683,810 | (86,467) |
Changes in operating assets and liabilities: | ||
Loans receivable | 1,683,699 | 251,431 |
Accounts receivable | (115,189) | (780) |
Inventory | (317,257) | 366,704 |
Prepaid expenses and other assets | (469,492) | 1,259,354 |
Operating lease liabilities | (6,285,700) | (6,352,423) |
Accounts payable and accrued expenses | 238,452 | (1,648,156) |
Contract liabilities and other current liabilities | (14,059) | (233,042) |
Net cash and cash equivalents provided by operating activities | 13,683,109 | 4,824,658 |
INVESTING ACTIVITIES | ||
Purchases of investments | (38,279,813) | (20,907,047) |
Proceeds from redemption of investments | 37,167,921 | 28,045,130 |
Purchases of property and equipment | (480,510) | (712,469) |
Acquisition of stores, net of cash acquired | (566,586) | (602,200) |
Net advances on notes receivable | (5,996) | (694,987) |
Release of escrowed funds | 3,312,984 | |
Proceeds from the disposal of assets | 630,998 | 1,307,500 |
Net cash and cash equivalents provided by (used in) investing activities | (1,533,986) | 9,748,911 |
FINANCING ACTIVITIES | ||
Payments on notes payable - long-term | (1,085,251) | (1,072,622) |
Common stock redemptions | (2,305,106) | (513,431) |
Payments on finance leases | (1,161) | (50,050) |
Contributions from noncontrolling interests | 281,906 | |
Distributions to noncontrolling interests | (2,691,337) | (936,600) |
Payments of dividends | (1,143,873) | (1,875,215) |
Net cash and cash equivalents used in financing activities | (7,226,728) | (4,166,012) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 4,922,395 | 10,407,557 |
CASH AND CASH EQUIVALENTS | ||
Beginning of year | 27,132,540 | 16,724,983 |
End of year | 32,054,935 | 27,132,540 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 3,326,783 | 575,501 |
Interest paid | 46,563 | 94,723 |
Noncash investing and financing activities: | ||
Right-of-use assets obtained, operating lease obligations incurred | 4,561,682 | 5,786,575 |
Right-of-use asset disposals | 678,519 | 2,218,787 |
Right-of-use liability disposals | 293,096 | 2,218,787 |
Distribution to noncontrolling interests applied to loans receivable | $ 363,265 |
Basis of Presentation, Nature o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 / Nature of Business Western Capital Resources, Inc. (“WCR”) is a parent company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below. ● Cellular Retail ○ PQH Wireless, Inc. (“PQH”) (100%) – operates 205 cellular retail stores as of December 31, 2020 (102 100% owned plus 103 through its controlled but less than 100% owned subsidiaries), exclusively as an authorized retailer of the Cricket brand. ● Direct to Consumer ○ J&P Park Acquisitions, Inc. (“JPPA”) (100%) – an online and direct marketing distribution retailer of 1) live plants, seeds, holiday gifts and garden accessories selling its products under Park Seed, Jackson & Perkins, and Wayside Gardens brand names and 2) home improvement and restoration products operating under the Van Dyke’s Restorers brand, as well as a seed wholesaler under the Park Wholesale brand. ○ J&P Real Estate, LLC (“JPRE”) (100%) – owns real estate utilized as JPPA’s distribution and warehouse facility and the corporate offices of JPPA. ● Consumer Finance ○ Wyoming Financial Lenders, Inc. (“WFL”) (100%) – owns and operates “payday” stores (19 as of December 31, 2020) in four states (Iowa, Kansas, North Dakota, 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. ○ Express Pawn, Inc. (“EPI”) (100%) – owns and operates retail pawn stores (three as of December 31, 2020) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. 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 as” “PQH,” “JPPA,” “JPRE,” “WFL,” or “EPI” are references only to those companies. Basis of Consolidation The consolidated financial statements include the accounts of 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, applicable to reporting the equity and net income or loss attributable to noncontrolling interests. 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 various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the loans receivable allowance for credit losses, carrying value and impairment of goodwill and other long-lived assets, right-of-use assets and related liabilities (including the applicable discount rate), inventory valuation and obsolescence, estimated useful lives of intangible assets and property and equipment, gift certificate and merchandise credits liability and deferred taxes and tax uncertainties. Revenue Recognition The Company follows the provisions of ASC 606, Revenue from Contracts with Customers, as further disclosed later in this Note 1. Also refer to Notes 17, "Revenue," and 20, “Segment Information,” for additional information, including the disaggregation of revenue by segment. Revenue generated from short-term lending agreements in the Consumer Finance segment and from Company investments are recognized in accordance with ASC 825, Financial Instruments. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three-level hierarchy is as follows: Level 1 – Quoted market prices in active markets for identical assets or liabilities. Level 2 – Observable market-based inputs or inputs that are corroborated by market data. Level 3 - Unobservable inputs that are not corroborated by market date. The Company’s held to maturity securities are comprised of U.S Treasury zero coupon T-Bills. Receivables and Allowance for Credit Losses Cellular Retail Receivables for noncash sales are recorded when possession of products is taken by the customer or services are completed, represent claims against third parties that will be settled in cash, include unsettled credit card charges, and are included in accounts receivable. The carrying value of accounts receivables, net of the allowance for credit losses, represents their estimated net realizable value. Direct to Consumer Receivables for noncash sales are recorded when orders are shipped, represent claims against third parties that will be settled in cash, include unsettled credit card charges and wholesales sales on terms, and are included in accounts receivable. The carrying value of accounts receivable is net of an allowance for credit losses. The allowance for credit losses represents an estimate of expected lifetime credit losses on the asset considering economic conditions and future economic trends. Past due receivable balances are written-off when internal collection efforts have been unsuccessful in collecting the amount due. Consumer Finance Included in loans receivable are unpaid principal, interest and fee balances of payday, installment and pawn loans that have not reached their maturity date, and “late” payday loans that have reached maturity within the last 180 days and have remaining outstanding balances. Late payday loans generally are unpaid loans where a customer’s personal check has been deposited and the check has been returned due to non-sufficient funds in the customer’s account, a closed account, or other reasons. All returned items are charged-off after 180 days, as the present value of future collections after that date is not expected to be significant. Loans are carried at cost plus accrued interest or fees less payments made and an allowance for credit losses. We do not specifically reserve for any individual payday or installment loan. Instead, we aggregate loan types for purposes of estimating the allowance for credit losses using a methodology that estimates expected lifetime credit losses on the asset considering economic conditions and future economic trends. In addition, this methodology takes into account current and expected collection patterns, recent trends noted in the portfolio and charge off patterns from loans that originated during the last 24 months, which assists management in estimating future recoveries. Credit losses for pawn loans are not recorded because the value of the collateral exceeds the loan amount. Inventory Cellular Retail Inventory, consisting of phones and accessories, is stated at cost, determined on the specific identification and weighted-average cost basis, respectively. Direct to Consumer Inventory is valued at the lower of cost or market using the weighted-average method of determining cost. Consumer Finance Merchandise inventory is stated at the lower of cost or market. The principal amount of an unpaid loan becomes the inventory cost for forfeited collateral. Long-Lived Assets Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets as follows: • Computer equipment and software 3 – 10 years • Improvements and equipment 3 – 15 years • Building 39 years The cost of maintenance and repairs is charged to operations as incurred while renewals and betterments are capitalized. The Company capitalizes certain internal costs, including payroll costs, incurred in connection with the development of software for internal use. These costs are capitalized beginning when the Company has entered the application development stage. The capitalization of these costs ceases when the software is substantially complete and ready for its intended use. Only costs incurred for enhancements that are expected to result in additional features or functionality are capitalized and expensed over the estimated useful life of the enhancements. Finite-lived intangible assets represent the fair values management assigned to assets acquired through business acquisitions, are amortized over periods of three to 15 years based on management’s estimates of the useful life of the asset and are subject to impairment evaluations. The Company assesses the possibility of impairment of long-lived assets, other than goodwill, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include significant underperformance relative to expected historical or projected future cash flows, significant changes in the manner of use of acquired assets or the strategy for the overall business, and significant negative industry events or trends. Operating Leases The Company applies the provision of ASC 842, Leases, applicable to the recognition, presentation and disclosure of leases. Operating lease payment terms may include fixed payment terms and variable payments. Fixed payment terms and variable payments that depend on an index (i.e., Consumer Price Index, or “CPI”) or rate are considered in the determination of the operating lease right-of-use assets and liabilities. Variable payments that do not depend on an index or rate are not included in the lease right-of-use assets and liabilities determination. Expenses related to leases with a lease term of one month or less are recognized as variable lease expense when incurred. Other lease payments terms may include lease and non-lease components together in fixed payment terms. Lease and non-lease components aggregated in fixed payment terms are treated entirely as lease components (election applies to the leased real property asset class). We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. A number of our lease agreements contain options to renew. The lease term used to calculate ROU assets and lease liabilities only includes renewal options that are deemed reasonably certain to be exercised. Goodwill We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination to goodwill. We base the fair value of identifiable intangible assets acquired in a business combination on valuations that use information and assumptions that a market participant would use, including assumptions for estimated revenue projections, growth rates, cash flows, discount rates, useful life, and other relevant assumptions. We test our goodwill for impairment annually as of October 1, or more frequently if events or changes in circumstances indicate potential impairment. The Company tests for goodwill impairment at the reporting unit level, which aligns with the Company’s segments. The Company performs a qualitative assessment to determine if a quantitative impairment test is necessary. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value. During our annual test of goodwill balances in 2020, which was completed during the fourth quarter of 2020, we determined that the fair value of each reporting unit with goodwill exceeded the carrying amount by a significant amount. Merchandise Credits and Gift Card Liabilities Direct to Consumer The Company maintains a liability for unredeemed gift cards, gift certificates and merchandise credits until the earlier of redemption, escheatment or a maximum of two years. Based on historical redemption trends, the Company has concluded that the likelihood of these liabilities being redeemed beyond two years from the date of issuance is remote. The liability is also reserved for estimated redemption rates which management bases on historical trends. Advertising, Marketing and Development Costs Direct to Consumer The Company expenses advertising costs as they are incurred, except for direct-response advertising, which is capitalized until distributed. Direct-response advertising consists primarily of catalog production, printing, and postage costs. Prepaid advertising costs as of December 31, 2020 and 2019 were $0.48 million and $0.67 million, respectively. Consumer Finance The costs of advertising and marketing are expensed as incurred. Stock-based Compensation The Company recognizes the fair value compensation cost relating to stock-based payment transactions in accordance with ASC 718, Stock Compensation. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period. The fair value of our stock options is estimated using a Black-Scholes option valuation model. Income Taxes Deferred income taxes reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts, based on enacted tax laws and statutory tax rates applicable in the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes represents taxes paid or payable for the current year and changes during the year in deferred tax assets and liabilities. Earnings Per Common Share The Company computes basic earnings per common share in accordance with ASC 260, Earnings Per Share (“EPS”), which is computed by dividing the income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period, as calculated using the treasury stock method. In computing diluted EPS, the weighted average market price for the period is used in determining the number of common shares assumed to be purchased from the exercise of stock options. As of December 31, 2020 and December 31, 2019, 65,000 of potential common shares equivalents from stock options were excluded from the diluted EPS calculations as their effect is anti-dilutive. Fair Value of Financial Instruments The amounts reported in the balance sheets for cash, accounts and loans receivable, inventory, and accounts payable are short-term in nature and their carrying values approximate fair values. The amounts reported in the balance sheets for notes payable are both long-term and short-term and their carrying value approximates fair value. Reclassifications Certain Statement of Income reclassifications have been made to the presentation of Cost of sales and Salaries, wages and benefits in our prior financial statements to conform to the presentation as of and for the year ended December 31, 2020. Recent Accounting Pronouncements In April, 2020 the staff of the FASB issued a question-and-answer document that states entities may elect not to evaluate whether a concession provided by a lessor to a lessee in response to the effects of the coronavirus pandemic is a lease modification. Retailers may make the elections for any lessor-provided concessions related to the effects of the coronavirus pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company has made such election. The Company has received minimal rent concessions and has not entered into any related lease modifications to date. As such, the Company does not believe this election will have a material impact on its financial condition, results of operations or consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the existing guidance for income taxes related to the approach for intra-period tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU also simplifies the accounting for income taxes by clarifying and amending existing guidance related to the effects of enacted changes in tax laws or rates in the effective tax rate computation, the recognition of franchise tax and the evaluation of a step-up in the tax basis of goodwill, among other clarifications. ASU 2019-12 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements but does not believe the adoption of ASU 2019-12 will have a material impact on its 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 | 12 Months Ended |
Dec. 31, 2020 | |
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 federal, state, and local 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 and regulatory action to prohibit or severely restrict sub-prime lending activities of the kind conducted by the Company. After several years of research, debate, and public hearings, in October 2017 the U.S. Consumer Financial Protection Bureau (“CFPB”) adopted a new rule for payday lending. The 2017 rule, originally scheduled to go into effect in August 2019, would have imposed significant restrictions on the industry, and it was expected that a large number of lenders would be forced to close their stores. The CFPB’s studies projected a reduction in the number of lenders by 50%, while industry studies forecasted a much higher attrition rate if the rule is implemented as originally adopted. However, in January 2018, the CFPB issued a statement that it intends to “reconsider” the regulation. In July 2020, the CFPB issued a final rule applicable to the 2017 rule. The final rule rescinds the mandatory underwriting provisions of the 2017 rule but does not rescind or alter the payments provisions of the 2017 rule. The CFPB will seek to have these rules go into effect with a reasonable period for entities to come into compliance. The implementation of the final rule is likely to result in a reduction of in-house bad debt collections, higher collection costs and thus a negative impact and further contraction of our Consumer Finance segment. The above rule or any other adverse change in present federal, state, or local 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, closure of one or more store locations 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, or a 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, additional state or local laws and regulations or changes in interpretations of them could, at any point, essentially prohibit 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 Consumer Finance segment. Concentrations The Company has demand deposits at financial institutions, often times in excess of the limit for insurance by the Federal Deposit Insurance Corporation. As of December 31, 2020, the Company had demand deposits in excess of insurance amounts of approximately $10.51 million. Loans receivable in the Consumer Finance segment are concentrated in the sub-prime market and geographically, primarily in the Midwest. For the years ended December 31, 2020 and 2019, the Consumer Finance segment had geographic economic and regulatory risk concentrations (shown as a percentage of the Consumer Finance segment’s revenue by state when 10% or more) as follows: Consumer Finance Segment 2020 % of Revenues 2019 % of Revenues Nebraska 1 35% 35% North Dakota 25% 25% Iowa 17% 16% Wyoming 16% 14% 1 The Company’s Cellular Retail segment is an authorized retailer for Cricket Wireless. As an authorized retailer operating exclusively for a single carrier, the Company is subject to a number of concentrations, including revenues from a single brand, a single supplier for phones, a single operating system provider and select third party processors. Our Direct to Consumer subsidiary JPPA has an agreement with a third-party wholesale grower that is in effect until 2022. The grower has agreed to perform research for JPPA and maintain JPPA's research crop for product to be sold through 2022. In exchange, this grower/researcher (also a direct-to-consumer competitor) is allowed to sell certain Jackson & Perkins branded roses in their wholesale division. |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents And Investments | |
Cash and Cash Equivalents and Investments | 3. Cash and Cash Equivalents and Investments – The following table shows the Company’s cash and cash equivalents, held-to-maturity investments and other investments, by significant investment category, recorded as cash and cash equivalents or short- and long-term investments: December 31, 2020 December 31, 2019 Cash and cash equivalents Operating accounts $ 16,089,852 $ 10,163,845 Money Market – U.S. Treasury obligations 2,565,296 4,450,433 U.S. Treasury obligations 13,399,787 12,518,262 Subtotal 32,054,935 27,132,540 Investments Certificates of deposit (4 – 24 month maturities, FDIC insured) 17,338,073 9,049,787 U.S. Treasury obligations (less than one year maturities) — 7,206,878 Subtotal 17,338,073 16,256,665 TOTAL $ 49,393,008 $ 43,389,205 Investments consisted of the following: December 31, 2020 Level 1 Level 2 Level 3 Amortized Unrealized Estimated Certificates of Deposit $ — $ 17,338,073 $ — $ 17,338,073 $ (23,814 ) $ 17,314,259 U.S. Treasuries — — — — — — $ — $ 17,338,073 $ — $ 17,338,073 $ (23,814 ) $ 17,314,259 December 31, 2019 Level 1 Level 2 Level 3 Amortized Unrealized Estimated Certificates of Deposit $ — $ 9,049,787 $ — $ 9,049,787 $ (32,429 ) $ 9,017,358 U.S. Treasuries - Held to Maturity 7,206,878 — — 7,206,878 2,883 7,209,761 $ 7,206,878 $ 9,049,787 $ — $ 16,256,665 $ (29,546 ) $ 16,227,119 Interest income recognized on held-to-maturity investments and other sources was as follows: 2020 2019 Held-to-maturity $ 66,769 $ 241,721 Other $ 243,472 $ 487,445 $ 310,241 $ 729,166 The Company has deposited in aggregate $2.79 million of cash across seven different accounts at financial institutions as an accommodation to its majority stockholder, who has other business relationships with the financial institution. The funds in these accounts can be withdrawn at any time, do not serve as collateral in any way, and are held on market terms. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans Receivable | 4. Loans Receivable – The Consumer Finance segment’s outstanding loans receivable aging was as follows: December 31, 2020 Payday Installment Pawn Total Current $ 1,558,292 $ 11,718 $ 272,669 $ 1,842,679 1-30 117,747 3,547 — 121,294 31-60 94,135 1,434 — 95,569 61-90 59,263 370 — 59,633 91-120 46,777 — — 46,777 121-150 38,422 — — 38,422 151-180 51,806 — — 51,806 1,966,442 17,069 272,669 2,256,180 Less Allowance for Credit Losses (315,000 ) — — (315,000 ) $ 1,651,442 $ 17,069 $ 272,669 $ 1,941,180 December 31, 2019 Payday Installment Pawn Total Current $ 3,322,131 $ 67,891 $ 309,934 $ 3,699,956 1-30 216,753 10,590 — 227,343 31-60 140,872 6,234 — 147,106 61-90 117,544 2,649 — 120,193 91-120 118,626 840 — 119,466 121-150 110,278 395 — 110,673 151-180 108,674 — — 108,674 4,134,878 88,599 309,934 4,533,411 Less Allowance for Credit Losses (673,000 ) — — (673,000 ) $ 3,461,878 $ 88,599 $ 309,934 $ 3,860,411 |
Allowance for Credit Losses on
Allowance for Credit Losses on Loans Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Provision for Loan and Lease Losses [Abstract] | |
Allowance for Credit Losses on Loans Receivable | 5. Allowance for Credit Losses on Loans Receivable A rollforward of the Company’s loans receivable allowance is as follows: Year Ended December 31, 2020 2019 Allowance for credit losses on loans receivable, beginning of year $ 673,000 $ 818,000 Provision for loans receivable credit losses charged to expense 274,049 975,938 Charge-offs, net (632,049 ) (1,120,938 ) Allowance for credit losses on loans receivable, end of year $ 315,000 $ 673,000 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 6. Accounts Receivable – A breakdown of accounts receivables by segment are as follows: December 31, 2020 Cellular Retail Direct to Consumer Consumer Finance Total Accounts receivable $ 325,041 $ 271,742 $ 53,882 $ 650,665 Less allowance for credit losses — (18,000 ) — (18,000 ) Net account receivable $ 325,041 $ 253,742 $ 53,882 $ 632,665 December 31, 2019 Cellular Retail Direct to Consumer Consumer Finance Total Accounts receivable $ 184,519 $ 318,235 $ 27,722 $ 530,476 Less allowance for credit losses — (13,000 ) — (13,000 ) Net account receivable $ 184,519 $ 305,235 $ 27,722 $ 517,476 A portion of accounts receivable are unsettled credit card sales from the prior one to five business days. This makes up 74% and 68% of the net accounts receivable balance as of December 31, 2020 and December 31, 2019, respectively. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 7. Inventory – Inventories consist of: 2020 2019 Finished Goods Cellular Retail $ 5,405,993 $ 5,687,771 Direct to Consumer 3,433,460 2,888,483 Consumer Finance 736,915 819,437 Reserve (847,000 ) (1,065,000 ) TOTAL $ 8,729,368 $ 8,330,691 As a result of changes in the market for certain Company products and the resulting deteriorating value, carrying amounts for those inventories were reduced by approximately $847,000 and $1,065,000 during the year ended December 31, 2020 and 2019, respectively. These inventory write-downs have been reflected in cost of goods sold in the statement of operations. Management believes that these reductions properly reflect inventory values, and no additional losses will be incurred upon disposition. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment – A rollforward of the Company’s property and equipment is as follows: December 31, 2019 Acquisitions Additions Deletions December 31, 2020 Property, equipment and sales floor $ 8,479,156 $ 293,054 $ 164,977 $ (1,153,885 ) $ 7,783,302 Software 1,884,481 — 276,627 — 2,161,108 Building - owned 5,488,222 — 38,905 — 5,527,127 Land 1,200,000 — — — 1,200,000 17,051,859 293,054 480,509 (1,153,885 ) 16,671,537 Accumulated depreciation (7,326,816 ) — (1,867,009 ) 804,734 (8,389,091 ) $ 9,725,043 $ 293,054 $ (1,386,500 ) $ (349,151 ) $ 8,282,446 December 31, 2018 Acquisitions Additions Deletions December 31, 2019 Property, equipment and sales floor $ 8,182,321 $ 1,606,331 $ 531,028 $ (1,840,524 ) $ 8,479,156 Software 1,736,669 — 159,137 (11,325 ) 1,884,481 Building (owned) 5,458,008 — 30,214 — 5,488,222 Land 1,200,000 — — — 1,200,000 16,576,998 1,606,331 720,379 (1,851,849 ) 17,051,859 Accumulated depreciation (6,631,172 ) — (1,811,918 ) 1,116,274 (7,326,816 ) $ 9,945,826 $ 1,606,331 $ (1,091,539 ) $ (735,575 ) $ 9,725,043 As of December 31, 2020, estimated future depreciation expense for property and equipment (in thousands) is as follows: 2020 $ 1,578 2021 996 2022 540 2023 344 2024 234 Thereafter 4,590 $ 8,282 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases – The Company has many retail and office space lease agreements and insignificant equipment lease agreements which are accounted for as operating leases. The real property leases typically are for three- to five-year terms with many containing options for similar renewal periods. Total components of operating lease expense for the real property asset class (in thousands) were as follows: 2020 2019 Operating lease expense $ 6,078 $ 5,701 Variable lease expense 2,354 2,708 Total lease expense $ 8,432 $ 8,409 Other information related to operating leases as of December 31 was as follows: 2020 2019 Weighted average remaining lease term, in years 2.88 3.00 Weighted average discount rate 5.1 % 5.8 % Future minimum lease payments under operating leases as of December 31, 2020 (in thousands) were as follows: 2021 $ 5,179 2022 3,733 2023 2,107 2024 996 2025 308 2026 62 Thereafter 12 Total minimum lease payments 12,397 Less: Imputed interest (986 ) Total present value of minimum lease payments $ 11,411 Current portion operating lease liabilities $ 4,715 Non-Current operating lease liabilities 6,696 Total operating lease liabilities $ 11,411 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets – During the fourth quarter of 2020, the Company completed the annual impairment assessments for goodwill and intangible assets, determining there was no impairment. A rollforward of the carrying amount of goodwill is as follows: Cellular Retail Segment Direct to Consumer Segment Consumer Finance Segment Total Balance December 31, 2018 Goodwill $ 5,765,284 $ 31,244 $ 7,559,063 $ 13,355,591 Accumulated impairment losses — — (7,559,063 ) (7,559,063 ) Goodwill, net of impairment losses 5,765,284 31,244 — 5,796,528 2019 Activity: Goodwill acquired during year — — — — Impairment losses — — — — Balance December 31, 2019 Goodwill 5,765,284 31,244 7,559,063 13,355,591 Accumulated impairment losses — — (7,559,063 ) (7,559,063 ) Goodwill, net of impairment losses 5,765,284 31,244 — 5,796,528 2020 Activity: Goodwill acquired during year — — — — Impairment losses — — — — Balance December 31, 2020 Goodwill 5,765,284 31,244 7,559,063 13,355,591 Accumulated impairment losses — — (7,559,063 ) (7,559,063 ) Goodwill, net of impairment losses $ 5,765,284 $ 31,244 $ — $ 5,796,528 A rollforward of the Company’s intangible assets is as follows: December 31, 2019 Acquisitions Additions Deletions December 31, 2020 Customer relationships $ 10,002,031 $ 234,020 $ — $ (2,508,997 ) $ 7,727,054 Other 227,000 — — — 227,000 Amortizable Intangible assets 10,229,031 234,020 — (2,508,997 ) 7,954,054 Less accumulated amortization (6,187,381 ) — (701,868 ) 2,508,997 (4,380,252 ) Net Amortizable Intangible Assets 4,041,650 234,020 (701,868 ) — 3,573,802 Non-amortizable trademarks — — — — — Intangible Assets, net $ 4,041,650 $ 234,020 $ (701,868 ) $ — $ 3,573,802 December 31, 2018 Acquisitions Additions Deletions December 31, 2019 Customer relationships $ 10,142,533 $ 747,903 $ — $ (888,405 ) $ 10,002,031 Other 227,000 — — — 227,000 Amortizable Intangible assets 10,369,533 747,903 — (888,405 ) 10,229,031 Less accumulated amortization (6,202,423 ) — (699,636 ) 714,678 (6,187,381 ) Net Amortizable Intangible Assets 4,167,110 747,903 (699,636 ) (173,727 ) 4,041,650 Non-amortizable trademarks — — — — — Intangible Assets, net $ 4,167,110 $ 747,903 $ (699,636 ) $ (173,727 ) $ 4,041,650 As of December 31, 2020, estimated future amortization expense for the amortizable intangible assets is as follows: 2021 $ 618,403 2022 568,663 2023 548,039 2024 515,649 2025 472,474 Thereafter 850,574 $ 3,573,802 |
Loans Receivable - Non-Current
Loans Receivable - Non-Current | 12 Months Ended |
Dec. 31, 2020 | |
Loans Receivable Noncurrent [Abstract] | |
Loans Receivable - Non-Current | 11. Loans Receivable – Non-Current – The Company has two non-current loans receivable from noncontrolling interests. The loans include a 5% annual interest rate, include no prepayment penalties and the Company, at its option, has the right to apply non-tax related distributions to the outstanding balances. |
Contract Liabilities and Other
Contract Liabilities and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue Disclosure [Abstract] | |
Contract Liabilities and Other Liabilities | 12. Contract Liabilities and Other Liabilities – Contract liabilities and other liabilities consisted of the following: December 31, 2020 2019 Deferred financing fees $ 113,255 $ 218,113 Merchandise credits and gift card liability 572,199 576,717 Total $ 685,454 $ 794,830 |
Notes Payable - Long Term
Notes Payable - Long Term | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable - Long Term | 13. Notes Payable – Long Term – The Company’s long-term debt was as follows: December 31, 2020 2019 Subsidiary subordinated note pa yab le to seller with monthly interest only payments at 6%, guaranteed by PQH , with a maturity date of August 5 22. The note was repaid in full in August 2020. $ — $ 789,216 Subsidiary note payable to a financial institution, with monthly principal and interest payments of $6,692, bearing interest at 5.5%, secured by substantially all assets of the subsidiary, and maturing January 4, 2024. The note was repaid in full in September 2020 and refinanced internally. — 296,035 Total — 1,085,251 Less current maturities — (65,414 ) $ — $ 1,019,837 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes – The Company’s provision for income tax expense (benefit) was as follows for the year ended December 31: 2020 2019 Current: Federal $ 2,294,000 $ 1,026,000 State 511,305 292,000 2,805,305 1,318,000 Deferred: Federal (14,000 ) (319,000 ) State (1,000 ) (91,000 ) (15,000 ) (410,000 ) $ 2,790,305 $ 908,000 Deferred income tax assets (liabilities) are summarized as follows: December 31, 2020 2019 Allowance for accounts and loans receivable $ 86,000 $ 179,000 Inventory capitalization 61,000 57,000 Inventory reserve 169,000 139,000 Accrued expenses 99,000 147,000 Prepaid expense (149,000 ) (209,000 ) Property and equipment (487,000 ) (587,000 ) Goodwill and intangible assets (149,000 ) (111,000 ) Net deferred income tax liability $ (370,000 ) $ (385,000 ) Reconciliations from the statutory federal income tax rate to the effective income tax rate are as follows for the year ended December 31: 2020 2019 Income tax expense using the statutory federal rate of 21% $ 2,738,000 $ 917,000 State income taxes, net of federal benefit 486,305 235,000 Non-deductible meals and entertainment 6,000 12,000 Noncontrolling interests’ pass through income (504,000 ) (270,000 ) Other non-deductible expenses 64,000 14,000 Income tax expense $ 2,790,305 $ 908,000 It is the Company’s practice to recognize penalties and/or interest related to income tax matters in interest expense. As of December 31, 2020 and December 31, 2019, the Company had an immaterial amount of accrued interest and penalties. The Company is subject to income taxes in the U.S. federal jurisdiction and various U.S. states and local jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by the Company and recognize a tax liability (or asset) if the Company has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. Management has analyzed the tax positions taken by the Company and has concluded that as of December 31, 2020, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the consolidated financial statements. The Company is subject to routine audits by taxing jurisdictions. Currently the Company has no federal or state audits in progress. Management believes the Company is no longer subject to income tax examinations for years prior to 2017. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity | 15. Equity – WCR 2015 Stock Incentive Plan Effective February 6, 2015, the Board of Directors adopted the Company’s 2015 Stock Incentive Plan, allowing 100,000 options to be granted. As of December 31, 2020 and December 31, 2019 65,000 options had been granted and 35,000 are available under the plan. The Board of Directors, or a committee of the Board, administers the 2015 Stock Incentive Plan and has complete authority to award incentives, to interpret the plan and to make any other determination which it believes necessary and advisable for the proper administration of the plan. A total of 100,000 shares of common stock were reserved in connection with the adoption of the 2015 Stock Incentive Plan. The 2015 Stock Incentive plan permits the granting of incentives in any one or a combination of the following forms: • stock options, including options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, as “qualified” or “incentive” stock options; • stock appreciation rights (often referred to as “SARs”) payable in shares of common stock; • restricted stock and restricted stock units; • performance awards of cash, stock or property; and • stock awards. The following table summarizes nonvested stock option awards outstanding as of December 31, 2020 and the changes for the year then ended: Number of Shares Weighted- Weighted-Average ( in years Aggregate Outstanding and nonvested at December 31, 2019 — $ — $ — Granted — — — Vested — — — Forfeited — — — Outstanding and nonvested at December 31, 2020 — $ — $ — Exercisable at December 31, 2020 and December 31, 2019 65,000 $ 6.00 4.11 $ 48,750 The vested options were granted on February 9, 2015 and have a contract life of ten years. The strike price of outstanding vested options exceeded the share value as of December 31, 2020 and December 31, 2019 and thus there was no intrinsic value in outstanding vested options as of December 31, 2020 and December 31, 2019. As of December 31, 2020, there was no unrecognized stock-based compensation expense. Share Repurchase Program The Board of Directors authorized a share repurchase program under which the Company may repurchase up to $4 million of common stock. Repurchases may be made from time to time on the open market or through privately negotiated transactions. As of December 31, 2020, the available balance of share repurchasing authority was approximately $1.17 million. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Dividends [Abstract] | |
Dividends | 16. Dividends – Our Board of Directors declared the following dividends payable in 2020: Date Declared Record Date Dividend Per Share Payment Date Dividend Paid February 13, 2020 February 28, 2020 $0.05 March 9, 2020 $463,289 May 5, 2020 May 22, 2020 $0.025 June 2, 2020 $230,865 August 10, 2020 August 25, 2020 $0.025 September 4, 2020 $228,373 November 3, 2020 November 17, 2020 $0.025 November 30, 2020 $221,346 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 17. Revenue – Cellular Retail Compensation from Cricket Wireless – As a Cricket Wireless authorized retailer, we earn compensation from Cricket Wireless for activating a new customer on the Cricket Wireless network and activating new devices for existing Cricket Wireless customers (“back-end compensation”) and upon an existing Cricket Wireless customer whom we originally activated on the Cricket Wireless GSM network making a continuing service payment (“CSP”). Compensation from Cricket Wireless in 2020 and 2019 was $33.79 million and $29.19 million, respectively. Cellular Retail revenues are recognized per ASC 606 and consist of the following: ● Merchandise – merchandise sales, which exclude sales taxes, reflect the transaction price at point of sale when payment is received or receivable, the customer takes control of the merchandise and, applicable to devices, the device has been activated on the Cricket Wireless network. The sale and activation of a wireless device also correlates to the recording of back-end compensation from Cricket Wireless. Sales returns are not material to our financial statements. Merchandise revenue, which included back-end compensation from Cricket Wireless, from Cellular Retail in 2020 and 2019 was $65.1 million and $52.4 million, respectively, and is recorded in sales and associated fees in the income statement. ● Other revenue – services revenue from customer paid fees is recorded at point of sale when payment is received and the customer receives the benefit of the service. CSP compensation from Cricket Wireless is recorded as of the time certain Cricket Wireless customers make a service payment, as reported to us by Cricket Wireless. Other revenue from Cellular Retail in 2020 and 2019 was $20.1 million and $16.3 million, respectively. Direct to Consumer Direct to Consumer revenue is recognized per ASC 606 and consist of the following: ● Merchandise – merchandise sales, which exclude sales taxes, reflect the transaction price when product is shipped to customers, FOB shipping point, reduced by variable consideration. Shipping and handling fees are also included in total net sales. Variable consideration is comprised of estimated future returns and merchandise credits which are estimated based primarily on historical rates and sales levels. Merchandise revenue from Direct to Consumer in 2020 and 2019 was $42.1 million and $38.0 million, respectively. Consumer Finance Consumer Finance revenue from merchandise sales is recognized per ASC 606 and consist of the following: ● Merchandise – merchandise sales, which exclude sales taxes, reflects the transaction price at point of sale in our pawn stores when payment in full is received and the customer takes control of the merchandise. Sales returns are not material to our financial statements. Merchandise revenue from Consumer Finance in 2020 and 2019 was $1.4 million. ● Other revenue – services revenue from customer paid fees for ancillary services is recorded at point of sale when payment is received and the customer receives the benefit of the service. Other revenue from Consumer Finance retail in 2020 and 2019 was $0.3 million. Consumer finance revenue from loan fees and interest is recognized per ASC 825 and consist of the following: ● Loan fees and interest – loan fees and interest on cash advance loans are recognized on a constant-yield basis ratably over a loan’s term. Installment loan fees and interest are recognized using the interest method, except that installment loan origination fees are recognized as they become non-refundable and installment loan maintenance fees are recognized when earned. The Company recognizes fees on pawn loans on a constant-yield basis ratably over the loans’ terms, less an estimated amount for expected forfeited pawn loans which is based on historical forfeiture rates. Loan and interest fees from consumer finance in 2020 and 2019 was $6.0 million and $8.5 million, respectively. See Note 20, “Segment Information,” for disaggregation of revenue by segment. |
Other Operating Expense
Other Operating Expense | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | 18. Other Operating Expenses – A breakout of other operating expenses is as follows for the year ended December 31: 2020 2019 Bank fees $ 2,192,659 $ 1,956,674 Collection costs 319,623 324,595 Insurance 826,485 805,547 Management and advisory fees 971,912 835,154 Professional and consulting fees 1,411,107 1,406,914 Supplies 795,557 658,500 Disposal loss on closed/sold locations 926,486 75,077 Other 2,460,821 2,385,780 $ 9,904,650 $ 8,448,241 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 19. Acquisitions – Cellular Retail Acquisitions In 2020 and 2019, the Company’s Cellular Retail segment completed numerous small Cricket retail location transactions. The purchase price calculation is as follows: 2020 2019 Cash $ 568 $ 738 Note payable — 18 Noncontrolling interest / equity — 218 $ 568 $ 974 The assets acquired and contributed and liabilities assumed (in thousands) were recorded at their estimated fair values as of the purchase date as follows: 2020 2019 Cash $ 2 $ 136 Inventory 82 458 Property and equipment 272 1,579 Intangible assets 234 748 Operating lease right-of-use assets 1,178 3,606 Other assets 33 582 Other liabilities (55 ) (1,179 ) Notes payable — (1,350 ) Operating lease liabilities (1,178 ) (3,606 ) $ 568 $ 974 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 20. Segment Information – The Company has grouped its operations into four segments – Cellular Retail, Direct to Consumer, Consumer Finance and Corporate. The Cellular Retail segment is an authorized retailer for Cricket Wireless selling cellular phones and accessories, ancillary services and serving as a payment center for customers. The Direct to Consumer segment, which consists of branded online and direct marketing distribution retailer with product offerings including seeds, live goods and garden accessories operating in the retail market under Park Seed, Jackson & Perkins and Wayside Gardens, and in the wholesale market under Park Wholesale, and an online retail seller of home improvement and restoration products operating over the internet through the domain name of www.Vandykes.com and through direct mail catalogs. The Consumer Finance segment provides financial and ancillary services. The Corporate segment includes the parent company activities, inclusive of the acquisitions department and management of acquired subsidiaries. Segment information related to the year ended December 31, 2020 and 2019 is as follows: December 31, 2020 (in thousands) Cellular Direct to Consumer Corporate Total Revenue from external customers $ 85,209 $ 42,114 $ 1,784 $ — $ 129,107 Fees and interest income $ — $ — $ 5,959 $ — $ 5,959 Total Revenue $ 85,209 $ 42,114 $ 7,743 $ — $ 135,066 Depreciation and amortization $ 2,014 $ 531 $ 20 $ 4 $ 2,569 Interest expense $ 41 $ — $ — $ — $ 41 Income tax expense (benefit) $ 1,474 $ 1,456 $ 162 $ (302 ) $ 2,790 Net income (loss) $ 5,934 $ 4,947 $ 440 $ (1,073 ) $ 10,248 Total segment assets $ 35,347 $ 15,778 $ 6,720 $ 35,408 $ 93,253 Expenditures for segmented assets $ 234 $ 358 $ — $ — $ 592 December 31, 2019 (in thousands) Cellular Direct to Consumer Corporate Total Revenue from external customers $ 68,682 $ 38,024 $ 1,696 $ — $ 108,402 Fees and interest income $ — $ — $ 8,513 $ — $ 8,513 Total Revenue $ 68,682 $ 38,024 $ 10,209 $ — $ 116,915 Depreciation and amortization $ 1,961 $ 513 $ 31 $ 7 $ 2,512 Interest expense $ 62 $ 2 $ — $ 51 $ 115 Income tax expense (benefit) $ 490 $ 175 $ 381 $ (138 ) $ 908 Net income (loss) $ 2,502 $ 588 $ 1,066 $ (700 ) $ 3,456 Total segment assets $ 35,816 $ 12,397 $ 8,582 $ 35,112 $ 91,907 Expenditures for segmented assets $ 1,007 $ 308 $ — $ — $ 1,315 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies – Employment Agreements The Company is party to an employment agreement with its Chief Executive Officer, Mr. John Quandahl. The agreement runs from November 1, 2019 through November 2022. The agreement provides an annual base salary and eligibility for an annual performance-based cash bonus pool for management and contains customary non-solicitation and non-competition provisions as well as provisions for severance payments upon termination by the Company without cause or upon termination by Mr. Quandahl with good reason. The Company has also entered into several employment agreements with certain members of subsidiary management. The terms of each agreement are different. However, some of these agreements include stipulated base salary and bonus potential. The agreements also contain customary non-solicitation and non-competition provisions as well as provisions for severance payments upon termination by the Company without cause. Pursuant to the numerous employment agreements, bonuses of approximately $1,696,000 and $881,000 were accrued for the year ended December 31, 2020 and 2019, respectively. Assigned Leases The Company’s Cellular Retail segment has transferred operations of many locations to other dealers and remains contingently liable under many lease agreements. Minimum lease payments of assigned or assumed non-cancelable operating leases related to transferred locations in which a release has not been obtained from the lessor are approximately $1.02 million as of December 31, 2020. Legal Proceedings The Company is party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. The Company does not believe that such normal and routine litigation will have a material impact on its consolidated financial results. |
Management and Advisory Agreeme
Management and Advisory Agreement | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Management and Advisory Agreement | 22. Management and Advisory Agreement – The Company is party to a Second Amended and Restated Management and Advisory Agreement dated November 1, 2017 with Blackstreet Capital Management, LLC (“Blackstreet”) under which Blackstreet provides certain financial, managerial, strategic and operating advice and assistance to the Company. The agreement requires the Company to pay Blackstreet a fee in an amount equal to $400,000 upon the closing of an acquisition in consideration for Blackstreet’s referral to the Company of such acquisition opportunity, and Blackstreet’s assistance in the performance of due diligence services relating thereto. The annual fees under the agreement equal the greater of (i) $674,840 (subject to annual increases of five percent) or (ii) five percent of Western Capital’s “EBITDA” as defined under the agreement. Finally, the agreement may only be terminated by mutual consent of the parties. Upon any termination, the Company shall pay a termination fee equal to three times the previous 12-month annual fee. The annual management and advisory fees related to the management and advisory agreement with Blackstreet for the years ended December 31, 2020 and 2019 were $871,912 and $735,154, respectively and the balances due Blackstreet as of December 31, 2020 and 2019 were $100,000 and $0, respectively. |
Committees of the Board of Dire
Committees of the Board of Directors | 12 Months Ended |
Dec. 31, 2020 | |
Committees Of Board Of Directors [Abstract] | |
Committees of the Board of Directors | 23. Committees of the Board of Directors – The Board of Directors has appointed Mr. Ellery Roberts to various committees of the Board. Annual Director and committee fees expense was $62,000 and $42,000 for the year ended December 31, 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 24. Related Party Transactions – Leases The Company leases or leased three properties from an officer of the Company and another party under operating leases, one that is month-to-month, requiring monthly lease payments of $1,680 (property disposed of in 2020), one that month-to-month, requiring monthly lease payments of $1,200 (lease terminated in 2020), and one that has a term expiring in November 2022, requiring monthly lease payments of $5,500. On August 31, 2011, the Company entered into two operating leases for property owned by Ladary, LLC (“Ladary”). Ladary, which acquired the two properties in foreclosure sales, is partially owned by the Chief Executive Officer and Chief Financial Officer of the Company, two current or past directors and one employee of the management company that manages the Company’s largest shareholder. One lease, which replaced an earlier lease that the Company had entered into with the prior landlord, is currently month-to-month, requiring monthly lease payments of $2,310, and is on terms and conditions substantially similar to those contained in the replaced lease. In 2018, Ladary sold the properties subject to the second lease agreement and acquired another in which the Company had two existing leases in place. The leases that the Company had entered into with the prior landlord have five-year terms expiring in 2020 and two five-year extension options and currently require aggregate monthly lease payments of $7,141. Annual rent expense to related parties for the retail locations for 2020 and 2019 was approximately $208,000 and $209,000, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25. Subsequent Events – Dividend Our Board of Directors declared the following dividends payable in 2021: Date Declared Record Date Dividend Per Share Payment Date February 15, 2021 February 23, 2021 $0.025 March 5, 2021 Acquisition On January 8, 2021, we closed on a Merger Agreement with Swisher Acquisition, Inc. (“Swisher”), a manufacturer of lawn and garden power equipment and emergency safety shelters, and provider of turn-key manufacturing services to third parties. The Company issued 408,000 shares of our common stock in exchange for all of the equity interest of Swisher resulting in Swisher becoming a wholly-owned subsidiary of the Company. We evaluated all events or transactions that occurred after December 31, 2020 up through the date we issued these financial statements. During this period we did not have any other material subsequent events that impacted our financial statements. |
Basis of Presentation, Nature_2
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation / Nature of Business | Basis of Presentation / Nature of Business Western Capital Resources, Inc. (“WCR”) is a parent company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below. ● Cellular Retail ○ PQH Wireless, Inc. (“PQH”) (100%) – operates 205 cellular retail stores as of December 31, 2020 (102 100% owned plus 103 through its controlled but less than 100% owned subsidiaries), exclusively as an authorized retailer of the Cricket brand. ● Direct to Consumer ○ J&P Park Acquisitions, Inc. (“JPPA”) (100%) – an online and direct marketing distribution retailer of 1) live plants, seeds, holiday gifts and garden accessories selling its products under Park Seed, Jackson & Perkins, and Wayside Gardens brand names and 2) home improvement and restoration products operating under the Van Dyke’s Restorers brand, as well as a seed wholesaler under the Park Wholesale brand. ○ J&P Real Estate, LLC (“JPRE”) (100%) – owns real estate utilized as JPPA’s distribution and warehouse facility and the corporate offices of JPPA. ● Consumer Finance ○ Wyoming Financial Lenders, Inc. (“WFL”) (100%) – owns and operates “payday” stores (19 as of December 31, 2020) in four states (Iowa, Kansas, North Dakota, 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. ○ Express Pawn, Inc. (“EPI”) (100%) – owns and operates retail pawn stores (three as of December 31, 2020) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. 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 as” “PQH,” “JPPA,” “JPRE,” “WFL,” or “EPI” are references only to those companies. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, applicable to reporting the equity and net income or loss attributable to noncontrolling interests. 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 various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the loans receivable allowance for credit losses, carrying value and impairment of goodwill and other long-lived assets, right-of-use assets and related liabilities (including the applicable discount rate), inventory valuation and obsolescence, estimated useful lives of intangible assets and property and equipment, gift certificate and merchandise credits liability and deferred taxes and tax uncertainties. |
Revenue Recognition | Revenue Recognition The Company follows the provisions of ASC 606, Revenue from Contracts with Customers, as further disclosed later in this Note 1. Also refer to Notes 17, "Revenue," and 20, “Segment Information,” for additional information, including the disaggregation of revenue by segment. Revenue generated from short-term lending agreements in the Consumer Finance segment and from Company investments are recognized in accordance with ASC 825, Financial Instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three-level hierarchy is as follows: Level 1 – Quoted market prices in active markets for identical assets or liabilities. Level 2 – Observable market-based inputs or inputs that are corroborated by market data. Level 3 - Unobservable inputs that are not corroborated by market date. The Company’s held to maturity securities are comprised of U.S Treasury zero coupon T-Bills. |
Receivables and Allowance for Credit Losses | Receivables and Allowance for Credit Losses Cellular Retail Receivables for noncash sales are recorded when possession of products is taken by the customer or services are completed, represent claims against third parties that will be settled in cash, include unsettled credit card charges, and are included in accounts receivable. The carrying value of accounts receivables, net of the allowance for credit losses, represents their estimated net realizable value. Direct to Consumer Receivables for noncash sales are recorded when orders are shipped, represent claims against third parties that will be settled in cash, include unsettled credit card charges and wholesales sales on terms, and are included in accounts receivable. The carrying value of accounts receivable is net of an allowance for credit losses. The allowance for credit losses represents an estimate of expected lifetime credit losses on the asset considering economic conditions and future economic trends. Past due receivable balances are written-off when internal collection efforts have been unsuccessful in collecting the amount due. Consumer Finance Included in loans receivable are unpaid principal, interest and fee balances of payday, installment and pawn loans that have not reached their maturity date, and “late” payday loans that have reached maturity within the last 180 days and have remaining outstanding balances. Late payday loans generally are unpaid loans where a customer’s personal check has been deposited and the check has been returned due to non-sufficient funds in the customer’s account, a closed account, or other reasons. All returned items are charged-off after 180 days, as the present value of future collections after that date is not expected to be significant. Loans are carried at cost plus accrued interest or fees less payments made and an allowance for credit losses. We do not specifically reserve for any individual payday or installment loan. Instead, we aggregate loan types for purposes of estimating the allowance for credit losses using a methodology that estimates expected lifetime credit losses on the asset considering economic conditions and future economic trends. In addition, this methodology takes into account current and expected collection patterns, recent trends noted in the portfolio and charge off patterns from loans that originated during the last 24 months, which assists management in estimating future recoveries. Credit losses for pawn loans are not recorded because the value of the collateral exceeds the loan amount. |
Inventory | Inventory Cellular Retail Inventory, consisting of phones and accessories, is stated at cost, determined on the specific identification and weighted-average cost basis, respectively. Direct to Consumer Inventory is valued at the lower of cost or market using the weighted-average method of determining cost. Consumer Finance Merchandise inventory is stated at the lower of cost or market. The principal amount of an unpaid loan becomes the inventory cost for forfeited collateral. |
Long-Lived Assets | Long-Lived Assets Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the related assets as follows: • Computer equipment and software 3 – 10 years • Improvements and equipment 3 – 15 years • Building 39 years The cost of maintenance and repairs is charged to operations as incurred while renewals and betterments are capitalized. The Company capitalizes certain internal costs, including payroll costs, incurred in connection with the development of software for internal use. These costs are capitalized beginning when the Company has entered the application development stage. The capitalization of these costs ceases when the software is substantially complete and ready for its intended use. Only costs incurred for enhancements that are expected to result in additional features or functionality are capitalized and expensed over the estimated useful life of the enhancements. Finite-lived intangible assets represent the fair values management assigned to assets acquired through business acquisitions, are amortized over periods of three to 15 years based on management’s estimates of the useful life of the asset and are subject to impairment evaluations. The Company assesses the possibility of impairment of long-lived assets, other than goodwill, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include significant underperformance relative to expected historical or projected future cash flows, significant changes in the manner of use of acquired assets or the strategy for the overall business, and significant negative industry events or trends. |
Operating Leases | Operating Leases The Company applies the provision of ASC 842, Leases, applicable to the recognition, presentation and disclosure of leases. Operating lease payment terms may include fixed payment terms and variable payments. Fixed payment terms and variable payments that depend on an index (i.e., Consumer Price Index, or “CPI”) or rate are considered in the determination of the operating lease right-of-use assets and liabilities. Variable payments that do not depend on an index or rate are not included in the lease right-of-use assets and liabilities determination. Expenses related to leases with a lease term of one month or less are recognized as variable lease expense when incurred. Other lease payments terms may include lease and non-lease components together in fixed payment terms. Lease and non-lease components aggregated in fixed payment terms are treated entirely as lease components (election applies to the leased real property asset class). We estimate our incremental borrowing rate, which is defined as the interest rate we would pay to borrow on a collateralized basis, considering such factors as length of lease term and the risks of the economic environment in which the leased asset operates. A number of our lease agreements contain options to renew. The lease term used to calculate ROU assets and lease liabilities only includes renewal options that are deemed reasonably certain to be exercised. |
Goodwill | Goodwill We allocate any excess purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination to goodwill. We base the fair value of identifiable intangible assets acquired in a business combination on valuations that use information and assumptions that a market participant would use, including assumptions for estimated revenue projections, growth rates, cash flows, discount rates, useful life, and other relevant assumptions. We test our goodwill for impairment annually as of October 1, or more frequently if events or changes in circumstances indicate potential impairment. The Company tests for goodwill impairment at the reporting unit level, which aligns with the Company’s segments. The Company performs a qualitative assessment to determine if a quantitative impairment test is necessary. The quantitative assessment considers whether the carrying amount of a reporting unit exceeds its fair value, in which case an impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value. During our annual test of goodwill balances in 2020, which was completed during the fourth quarter of 2020, we determined that the fair value of each reporting unit with goodwill exceeded the carrying amount by a significant amount. |
Merchandise Credits and Gift Card Liabilities | Merchandise Credits and Gift Card Liabilities Direct to Consumer The Company maintains a liability for unredeemed gift cards, gift certificates and merchandise credits until the earlier of redemption, escheatment or a maximum of two years. Based on historical redemption trends, the Company has concluded that the likelihood of these liabilities being redeemed beyond two years from the date of issuance is remote. The liability is also reserved for estimated redemption rates which management bases on historical trends. |
Advertising, Marketing and Development Costs | Advertising, Marketing and Development Costs Direct to Consumer The Company expenses advertising costs as they are incurred, except for direct-response advertising, which is capitalized until distributed. Direct-response advertising consists primarily of catalog production, printing, and postage costs. Prepaid advertising costs as of December 31, 2020 and 2019 were $0.48 million and $0.67 million, respectively. Consumer Finance The costs of advertising and marketing are expensed as incurred. |
Stock-based Compensation | Stock-based Compensation The Company recognizes the fair value compensation cost relating to stock-based payment transactions in accordance with ASC 718, Stock Compensation. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period. The fair value of our stock options is estimated using a Black-Scholes option valuation model. |
Income Taxes | Income Taxes Deferred income taxes reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts, based on enacted tax laws and statutory tax rates applicable in the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The provision for income taxes represents taxes paid or payable for the current year and changes during the year in deferred tax assets and liabilities. |
Earnings Per Common Share | Earnings Per Common Share The Company computes basic earnings per common share in accordance with ASC 260, Earnings Per Share (“EPS”), which is computed by dividing the income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period, as calculated using the treasury stock method. In computing diluted EPS, the weighted average market price for the period is used in determining the number of common shares assumed to be purchased from the exercise of stock options. As of December 31, 2020 and December 31, 2019, 65,000 of potential common shares equivalents from stock options were excluded from the diluted EPS calculations as their effect is anti-dilutive. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The amounts reported in the balance sheets for cash, accounts and loans receivable, inventory, and accounts payable are short-term in nature and their carrying values approximate fair values. The amounts reported in the balance sheets for notes payable are both long-term and short-term and their carrying value approximates fair value. |
Reclassifications | Reclassifications Certain Statement of Income reclassifications have been made to the presentation of Cost of sales and Salaries, wages and benefits in our prior financial statements to conform to the presentation as of and for the year ended December 31, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April, 2020 the staff of the FASB issued a question-and-answer document that states entities may elect not to evaluate whether a concession provided by a lessor to a lessee in response to the effects of the coronavirus pandemic is a lease modification. Retailers may make the elections for any lessor-provided concessions related to the effects of the coronavirus pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company has made such election. The Company has received minimal rent concessions and has not entered into any related lease modifications to date. As such, the Company does not believe this election will have a material impact on its financial condition, results of operations or consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which eliminates certain exceptions to the existing guidance for income taxes related to the approach for intra-period tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This ASU also simplifies the accounting for income taxes by clarifying and amending existing guidance related to the effects of enacted changes in tax laws or rates in the effective tax rate computation, the recognition of franchise tax and the evaluation of a step-up in the tax basis of goodwill, among other clarifications. ASU 2019-12 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements but does not believe the adoption of ASU 2019-12 will have a material impact on its 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. |
Basis of Presentation, Nature_3
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of property and equipment estimated useful lives | Depreciation is provided on the straight-line method over the estimated useful lives of the related assets as follows: • Computer equipment and software 3 – 10 years • Improvements and equipment 3 – 15 years • Building 39 years |
Risks Inherent in the Operati_2
Risks Inherent in the Operating Environment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of geographic economic and regulatory risk concentrations | For the years ended December 31, 2020 and 2019, the Consumer Finance segment had geographic economic and regulatory risk concentrations (shown as a percentage of the Consumer Finance segment’s revenue by state when 10% or more) as follows: Consumer Finance Segment 2020 % of Revenues 2019 % of Revenues Nebraska 1 35% 35% North Dakota 25% 25% Iowa 17% 16% Wyoming 16% 14% 1 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents And Investments | |
Schedule of cash equivalents or short and long-term investments | The following table shows the Company’s cash and cash equivalents, held-to-maturity investments and other investments, by significant investment category, recorded as cash and cash equivalents or short- and long-term investments: December 31, 2020 December 31, 2019 Cash and cash equivalents Operating accounts $ 16,089,852 $ 10,163,845 Money Market – U.S. Treasury obligations 2,565,296 4,450,433 U.S. Treasury obligations 13,399,787 12,518,262 Subtotal 32,054,935 27,132,540 Investments Certificates of deposit (4 – 24 month maturities, FDIC insured) 17,338,073 9,049,787 U.S. Treasury obligations (less than one year maturities) — 7,206,878 Subtotal 17,338,073 16,256,665 TOTAL $ 49,393,008 $ 43,389,205 |
Schedule of held to maturity investments | Investments consisted of the following: December 31, 2020 Level 1 Level 2 Level 3 Amortized Unrealized Estimated Certificates of Deposit $ — $ 17,338,073 $ — $ 17,338,073 $ (23,814 ) $ 17,314,259 U.S. Treasuries — — — — — — $ — $ 17,338,073 $ — $ 17,338,073 $ (23,814 ) $ 17,314,259 December 31, 2019 Level 1 Level 2 Level 3 Amortized Unrealized Estimated Certificates of Deposit $ — $ 9,049,787 $ — $ 9,049,787 $ (32,429 ) $ 9,017,358 U.S. Treasuries - Held to Maturity 7,206,878 — — 7,206,878 2,883 7,209,761 $ 7,206,878 $ 9,049,787 $ — $ 16,256,665 $ (29,546 ) $ 16,227,119 |
Schedule of interest income recognized on held-to-maturity investments | Interest income recognized on held-to-maturity investments and other sources was as follows: 2020 2019 Held-to-maturity $ 66,769 $ 241,721 Other $ 243,472 $ 487,445 $ 310,241 $ 729,166 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of outstanding loans receivable aging | The Consumer Finance segment’s outstanding loans receivable aging was as follows: December 31, 2020 Payday Installment Pawn Total Current $ 1,558,292 $ 11,718 $ 272,669 $ 1,842,679 1-30 117,747 3,547 — 121,294 31-60 94,135 1,434 — 95,569 61-90 59,263 370 — 59,633 91-120 46,777 — — 46,777 121-150 38,422 — — 38,422 151-180 51,806 — — 51,806 1,966,442 17,069 272,669 2,256,180 Less Allowance for Credit Losses (315,000 ) — — (315,000 ) $ 1,651,442 $ 17,069 $ 272,669 $ 1,941,180 December 31, 2019 Payday Installment Pawn Total Current $ 3,322,131 $ 67,891 $ 309,934 $ 3,699,956 1-30 216,753 10,590 — 227,343 31-60 140,872 6,234 — 147,106 61-90 117,544 2,649 — 120,193 91-120 118,626 840 — 119,466 121-150 110,278 395 — 110,673 151-180 108,674 — — 108,674 4,134,878 88,599 309,934 4,533,411 Less Allowance for Credit Losses (673,000 ) — — (673,000 ) $ 3,461,878 $ 88,599 $ 309,934 $ 3,860,411 |
Allowance for Credit Losses o_2
Allowance for Credit Losses on Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provision for Loan and Lease Losses [Abstract] | |
Schedule of loans receivable allowance | A rollforward of the Company’s loans receivable allowance is as follows: Year Ended December 31, 2020 2019 Allowance for credit losses on loans receivable, beginning of year $ 673,000 $ 818,000 Provision for loans receivable credit losses charged to expense 274,049 975,938 Charge-offs, net (632,049 ) (1,120,938 ) Allowance for credit losses on loans receivable, end of year $ 315,000 $ 673,000 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable | A breakdown of accounts receivables by segment are as follows: December 31, 2020 Cellular Retail Direct to Consumer Consumer Finance Total Accounts receivable $ 325,041 $ 271,742 $ 53,882 $ 650,665 Less allowance for credit losses — (18,000 ) — (18,000 ) Net account receivable $ 325,041 $ 253,742 $ 53,882 $ 632,665 December 31, 2019 Cellular Retail Direct to Consumer Consumer Finance Total Accounts receivable $ 184,519 $ 318,235 $ 27,722 $ 530,476 Less allowance for credit losses — (13,000 ) — (13,000 ) Net account receivable $ 184,519 $ 305,235 $ 27,722 $ 517,476 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consist of: 2020 2019 Finished Goods Cellular Retail $ 5,405,993 $ 5,687,771 Direct to Consumer 3,433,460 2,888,483 Consumer Finance 736,915 819,437 Reserve (847,000 ) (1,065,000 ) TOTAL $ 8,729,368 $ 8,330,691 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | A rollforward of the Company’s property and equipment is as follows: December 31, 2019 Acquisitions Additions Deletions December 31, 2020 Property, equipment and sales floor $ 8,479,156 $ 293,054 $ 164,977 $ (1,153,885 ) $ 7,783,302 Software 1,884,481 — 276,627 — 2,161,108 Building - owned 5,488,222 — 38,905 — 5,527,127 Land 1,200,000 — — — 1,200,000 17,051,859 293,054 480,509 (1,153,885 ) 16,671,537 Accumulated depreciation (7,326,816 ) — (1,867,009 ) 804,734 (8,389,091 ) $ 9,725,043 $ 293,054 $ (1,386,500 ) $ (349,151 ) $ 8,282,446 December 31, 2018 Acquisitions Additions Deletions December 31, 2019 Property, equipment and sales floor $ 8,182,321 $ 1,606,331 $ 531,028 $ (1,840,524 ) $ 8,479,156 Software 1,736,669 — 159,137 (11,325 ) 1,884,481 Building (owned) 5,458,008 — 30,214 — 5,488,222 Land 1,200,000 — — — 1,200,000 16,576,998 1,606,331 720,379 (1,851,849 ) 17,051,859 Accumulated depreciation (6,631,172 ) — (1,811,918 ) 1,116,274 (7,326,816 ) $ 9,945,826 $ 1,606,331 $ (1,091,539 ) $ (735,575 ) $ 9,725,043 |
Schedule of estimated future depreciation expense for property and equipment | As of December 31, 2020, estimated future depreciation expense for property and equipment (in thousands) is as follows: 2020 $ 1,578 2021 996 2022 540 2023 344 2024 234 Thereafter 4,590 $ 8,282 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of components of lease expense | Total components of operating lease expense for the real property asset class (in thousands) were as follows: 2020 2019 Operating lease expense $ 6,078 $ 5,701 Variable lease expense 2,354 2,708 Total lease expense $ 8,432 $ 8,409 |
Schedule of weighted average remaining lease terms and discount rates held | Other information related to operating leases as of December 31 was as follows: 2020 2019 Weighted average remaining lease term, in years 2.88 3.00 Weighted average discount rate 5.1 % 5.8 % |
Schedule of future minimum lease payments under leases | Future minimum lease payments under operating leases as of December 31, 2020 (in thousands) were as follows: 2021 $ 5,179 2022 3,733 2023 2,107 2024 996 2025 308 2026 62 Thereafter 12 Total minimum lease payments 12,397 Less: Imputed interest (986 ) Total present value of minimum lease payments $ 11,411 Current portion operating lease liabilities $ 4,715 Non-Current operating lease liabilities 6,696 Total operating lease liabilities $ 11,411 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill | A rollforward of the carrying amount of goodwill is as follows: Cellular Retail Segment Direct to Consumer Segment Consumer Finance Segment Total Balance December 31, 2018 Goodwill $ 5,765,284 $ 31,244 $ 7,559,063 $ 13,355,591 Accumulated impairment losses — — (7,559,063 ) (7,559,063 ) Goodwill, net of impairment losses 5,765,284 31,244 — 5,796,528 2019 Activity: Goodwill acquired during year — — — — Impairment losses — — — — Balance December 31, 2019 Goodwill 5,765,284 31,244 7,559,063 13,355,591 Accumulated impairment losses — — (7,559,063 ) (7,559,063 ) Goodwill, net of impairment losses 5,765,284 31,244 — 5,796,528 2020 Activity: Goodwill acquired during year — — — — Impairment losses — — — — Balance December 31, 2020 Goodwill 5,765,284 31,244 7,559,063 13,355,591 Accumulated impairment losses — — (7,559,063 ) (7,559,063 ) Goodwill, net of impairment losses $ 5,765,284 $ 31,244 $ — $ 5,796,528 |
Schedule of intangible assets | A rollforward of the Company’s intangible assets is as follows: December 31, 2019 Acquisitions Additions Deletions December 31, 2020 Customer relationships $ 10,002,031 $ 234,020 $ — $ (2,508,997 ) $ 7,727,054 Other 227,000 — — — 227,000 Amortizable Intangible assets 10,229,031 234,020 — (2,508,997 ) 7,954,054 Less accumulated amortization (6,187,381 ) — (701,868 ) 2,508,997 (4,380,252 ) Net Amortizable Intangible Assets 4,041,650 234,020 (701,868 ) — 3,573,802 Non-amortizable trademarks — — — — — Intangible Assets, net $ 4,041,650 $ 234,020 $ (701,868 ) $ — $ 3,573,802 December 31, 2018 Acquisitions Additions Deletions December 31, 2019 Customer relationships $ 10,142,533 $ 747,903 $ — $ (888,405 ) $ 10,002,031 Other 227,000 — — — 227,000 Amortizable Intangible assets 10,369,533 747,903 — (888,405 ) 10,229,031 Less accumulated amortization (6,202,423 ) — (699,636 ) 714,678 (6,187,381 ) Net Amortizable Intangible Assets 4,167,110 747,903 (699,636 ) (173,727 ) 4,041,650 Non-amortizable trademarks — — — — — Intangible Assets, net $ 4,167,110 $ 747,903 $ (699,636 ) $ (173,727 ) $ 4,041,650 |
Schedule of estimated future amortization expense | As of December 31, 2020, estimated future amortization expense for the amortizable intangible assets is as follows: 2021 $ 618,403 2022 568,663 2023 548,039 2024 515,649 2025 472,474 Thereafter 850,574 $ 3,573,802 |
Contract Liabilities and Othe_2
Contract Liabilities and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of contract liabilities and other liabilities | Contract liabilities and other liabilities consisted of the following: December 31, 2020 2019 Deferred financing fees $ 113,255 $ 218,113 Merchandise credits and gift card liability 572,199 576,717 Total $ 685,454 $ 794,830 |
Notes Payable - Long Term (Tabl
Notes Payable - Long Term (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The Company’s long-term debt was as follows: December 31, 2020 2019 Subsidiary subordinated note pa yab le to seller with monthly interest only payments at 6%, guaranteed by PQH , with a maturity date of August 5 22. The note was repaid in full in August 2020. $ — $ 789,216 Subsidiary note payable to a financial institution, with monthly principal and interest payments of $6,692, bearing interest at 5.5%, secured by substantially all assets of the subsidiary, and maturing January 4, 2024. The note was repaid in full in September 2020 and refinanced internally. — 296,035 Total — 1,085,251 Less current maturities — (65,414 ) $ — $ 1,019,837 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The Company’s provision for income tax expense (benefit) was as follows for the year ended December 31: 2020 2019 Current: Federal $ 2,294,000 $ 1,026,000 State 511,305 292,000 2,805,305 1,318,000 Deferred: Federal (14,000 ) (319,000 ) State (1,000 ) (91,000 ) (15,000 ) (410,000 ) $ 2,790,305 $ 908,000 |
Schedule of deferred income tax assets (liabilities) | Deferred income tax assets (liabilities) are summarized as follows: December 31, 2020 2019 Allowance for accounts and loans receivable $ 86,000 $ 179,000 Inventory capitalization 61,000 57,000 Inventory reserve 169,000 139,000 Accrued expenses 99,000 147,000 Prepaid expense (149,000 ) (209,000 ) Property and equipment (487,000 ) (587,000 ) Goodwill and intangible assets (149,000 ) (111,000 ) Net deferred income tax liability $ (370,000 ) $ (385,000 ) |
Schedule of effective income tax rate | Reconciliations from the statutory federal income tax rate to the effective income tax rate are as follows for the year ended December 31: 2020 2019 Income tax expense using the statutory federal rate of 21% $ 2,738,000 $ 917,000 State income taxes, net of federal benefit 486,305 235,000 Non-deductible meals and entertainment 6,000 12,000 Noncontrolling interests’ pass through income (504,000 ) (270,000 ) Other non-deductible expenses 64,000 14,000 Income tax expense $ 2,790,305 $ 908,000 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of nonnvested stock option awards outstanding | The following table summarizes nonvested stock option awards outstanding as of December 31, 2020 and the changes for the year then ended: Number of Shares Weighted- Weighted-Average ( in years Aggregate Outstanding and nonvested at December 31, 2019 — $ — $ — Granted — — — Vested — — — Forfeited — — — Outstanding and nonvested at December 31, 2020 — $ — $ — Exercisable at December 31, 2020 and December 31, 2019 65,000 $ 6.00 4.11 $ 48,750 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Dividends [Abstract] | |
Schedule of dividends | Our Board of Directors declared the following dividends payable in 2020: Date Declared Record Date Dividend Per Share Payment Date Dividend Paid February 13, 2020 February 28, 2020 $0.05 March 9, 2020 $463,289 May 5, 2020 May 22, 2020 $0.025 June 2, 2020 $230,865 August 10, 2020 August 25, 2020 $0.025 September 4, 2020 $228,373 November 3, 2020 November 17, 2020 $0.025 November 30, 2020 $221,346 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expenses | A breakout of other operating expenses is as follows for the year ended December 31: 2020 2019 Bank fees $ 2,192,659 $ 1,956,674 Collection costs 319,623 324,595 Insurance 826,485 805,547 Management and advisory fees 971,912 835,154 Professional and consulting fees 1,411,107 1,406,914 Supplies 795,557 658,500 Disposal loss on closed/sold locations 926,486 75,077 Other 2,460,821 2,385,780 $ 9,904,650 $ 8,448,241 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of purchase price | The purchase price calculation is as follows: 2020 2019 Cash $ 568 $ 738 Note payable — 18 Noncontrolling interest / equity — 218 $ 568 $ 974 |
Schedule of assets acquired and liabilities assumed | The assets acquired and contributed and liabilities assumed (in thousands) were recorded at their estimated fair values as of the purchase date as follows: 2020 2019 Cash $ 2 $ 136 Inventory 82 458 Property and equipment 272 1,579 Intangible assets 234 748 Operating lease right-of-use assets 1,178 3,606 Other assets 33 582 Other liabilities (55 ) (1,179 ) Notes payable — (1,350 ) Operating lease liabilities (1,178 ) (3,606 ) $ 568 $ 974 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information related to the year ended December 31, 2020 and 2019 is as follows: December 31, 2020 (in thousands) Cellular Direct to Consumer Corporate Total Revenue from external customers $ 85,209 $ 42,114 $ 1,784 $ — $ 129,107 Fees and interest income $ — $ — $ 5,959 $ — $ 5,959 Total Revenue $ 85,209 $ 42,114 $ 7,743 $ — $ 135,066 Depreciation and amortization $ 2,014 $ 531 $ 20 $ 4 $ 2,569 Interest expense $ 41 $ — $ — $ — $ 41 Income tax expense (benefit) $ 1,474 $ 1,456 $ 162 $ (302 ) $ 2,790 Net income (loss) $ 5,934 $ 4,947 $ 440 $ (1,073 ) $ 10,248 Total segment assets $ 35,347 $ 15,778 $ 6,720 $ 35,408 $ 93,253 Expenditures for segmented assets $ 234 $ 358 $ — $ — $ 592 December 31, 2019 (in thousands) Cellular Direct to Consumer Corporate Total Revenue from external customers $ 68,682 $ 38,024 $ 1,696 $ — $ 108,402 Fees and interest income $ — $ — $ 8,513 $ — $ 8,513 Total Revenue $ 68,682 $ 38,024 $ 10,209 $ — $ 116,915 Depreciation and amortization $ 1,961 $ 513 $ 31 $ 7 $ 2,512 Interest expense $ 62 $ 2 $ — $ 51 $ 115 Income tax expense (benefit) $ 490 $ 175 $ 381 $ (138 ) $ 908 Net income (loss) $ 2,502 $ 588 $ 1,066 $ (700 ) $ 3,456 Total segment assets $ 35,816 $ 12,397 $ 8,582 $ 35,112 $ 91,907 Expenditures for segmented assets $ 1,007 $ 308 $ — $ — $ 1,315 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Schedule of declared dividends payable | Our Board of Directors declared the following dividends payable in 2021: Date Declared Record Date Dividend Per Share Payment Date February 15, 2021 February 23, 2021 $0.025 March 5, 2021 |
Basis of Presentation, Nature_4
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Useful lives | P39Y |
Minimum [Member] | Improvements And Equipment [Member] | |
Useful lives | P3Y |
Minimum [Member] | Computer Equipment And Software [Member] | |
Useful lives | P3Y |
Maximum [Member] | Improvements And Equipment [Member] | |
Useful lives | P15Y |
Maximum [Member] | Computer Equipment And Software [Member] | |
Useful lives | P10Y |
Basis of Presentation, Nature_5
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020USD ($)Numbershares | Dec. 31, 2019USD ($)shares | |
Prepaid advertising costs | $ | $ 480,000 | $ 670,000 |
Increase in right-of-use assets and associated lease liabilities | $ | $ 4,561,682 | $ 5,786,575 |
PQH Wireless, Inc. [Member] | Cellular Retail [Member] | ||
Number of stores | 205 | |
Percentage of equity method investment | 100.00% | |
PQH Wireless, Inc. [Member] | Cellular Retail [Member] | PQH South LLC. [Member] | ||
Number of stores | 102 | |
Percentage of equity method investment | 100.00% | |
PQH Wireless, Inc. [Member] | Cellular Retail [Member] | PQH Other Subsidiary [Member] | ||
Number of stores | 103 | |
Percentage of equity method investment | 100.00% | |
Wyoming Financial Lenders, Inc. [Member] | Consumer Finance [Member] | ||
Number of stores | 19 | |
Percentage of equity method investment | 100.00% | |
Number of states in which entity operates | 4 | |
Express Pawn, Inc. [Member] | Consumer Finance [Member] | ||
Number of stores | 3 | |
Percentage of equity method investment | 100.00% | |
JPPA [Member] | Direct to Consumer [Member] | ||
Percentage of equity method investment | 100.00% | |
JPRE [Member] | Direct to Consumer [Member] | ||
Percentage of equity method investment | 100.00% | |
2015 Stock Incentive Plan [Member] | ||
Number of shares, granted | shares | 65,000 | 65,000 |
Minimum [Member] | ||
Finite-lived intangible asset, useful life | 3 years | |
Minimum [Member] | Wyoming Financial Lenders, Inc. [Member] | Consumer Finance [Member] | Payday [Member] | ||
Number of states in which entity operates | 100 | |
Minimum [Member] | Wyoming Financial Lenders, Inc. [Member] | Consumer Finance [Member] | Installment [Member] | ||
Number of states in which entity operates | 300 | |
Maximum [Member] | ||
Finite-lived intangible asset, useful life | 15 years | |
Maximum [Member] | Wyoming Financial Lenders, Inc. [Member] | Consumer Finance [Member] | Payday [Member] | ||
Number of states in which entity operates | 500 | |
Maximum [Member] | Wyoming Financial Lenders, Inc. [Member] | Consumer Finance [Member] | Installment [Member] | ||
Number of states in which entity operates | 800 |
Risks Inherent in the Operati_3
Risks Inherent in the Operating Environment (Details) - Consumer Finance Segment [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Nebraska [Member] | |||
Percentage of revenues | [1] | 35.00% | 35.00% |
North Dakota [Member] | |||
Percentage of revenues | 25.00% | 25.00% | |
Iowa [Member] | |||
Percentage of revenues | 17.00% | 16.00% | |
Wyoming [Member] | |||
Percentage of revenues | 16.00% | 14.00% | |
[1] | On November 3, 2020, Nebraska voters passed a ballot initiative that limits all fees charged by payday lenders in Nebraska to an annual interest rate of 36%. In anticipation of such passage, we ceased writing new payday loans in Nebraska in late October 2020 and closed all Nebraska payday loan centers by year end. Payday operation in Nebraska generated approximately 19% of the segment's revenue in 2020. |
Risks Inherent in the Operati_4
Risks Inherent in the Operating Environment (Details Narrative) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Description of attrition rate | The CFPB’s studies projected a reduction in the number of lenders by 50%, while industry studies forecasted a much higher attrition rate if the rule is implemented as originally adopted. |
WCRS Cash,Excess Over FDIC Insured Amount | $ 10,510,000 |
Payday Lending Revenue [Member] | |
Percentage of consumer finance segment revenue | 10.00% |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Investments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | |||
Cash and cash equivalents | $ 32,054,935 | $ 27,132,540 | $ 16,724,983 |
Investments | |||
TOTAL | 49,393,008 | 43,389,205 | |
Operating Accounts [Member] | |||
Cash and cash equivalents | |||
Cash and cash equivalents | 16,089,852 | 10,163,845 | |
Money Markets [Member] | |||
Cash and cash equivalents | |||
Cash and cash equivalents | 2,565,296 | 4,450,433 | |
U.S. Treasuries [Member] | |||
Cash and cash equivalents | |||
Cash and cash equivalents | 13,399,787 | 12,518,262 | |
Investments | |||
Investments | $ 7,206,878 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Investments (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amortized Cost | $ 17,338,073 | $ 16,256,665 |
Unrealized Gain (Loss) | (23,814) | (29,546) |
Estimated Fair Value | 17,314,259 | 16,227,119 |
Level 1 [Member] | ||
Amortized Cost | 7,206,878 | |
Level 2 [Member] | ||
Amortized Cost | 17,338,073 | 9,049,787 |
Level 3 [Member] | ||
Amortized Cost | ||
Certificates of Deposit [Member] | ||
Amortized Cost | 17,338,073 | 9,049,787 |
Unrealized Gain (Loss) | (23,814) | (32,429) |
Estimated Fair Value | 17,314,259 | 9,017,358 |
Certificates of Deposit [Member] | Level 1 [Member] | ||
Amortized Cost | ||
Certificates of Deposit [Member] | Level 2 [Member] | ||
Amortized Cost | 17,338,073 | 9,049,787 |
Certificates of Deposit [Member] | Level 3 [Member] | ||
Amortized Cost | ||
U.S. Treasuries [Member] | ||
Amortized Cost | ||
Unrealized Gain (Loss) | ||
Estimated Fair Value | ||
U.S. Treasuries [Member] | Level 1 [Member] | ||
Amortized Cost | ||
U.S. Treasuries [Member] | Level 2 [Member] | ||
Amortized Cost | ||
U.S. Treasuries [Member] | Level 3 [Member] | ||
Amortized Cost | ||
U.S. Treasuries - Held to Maturity [Member] | ||
Amortized Cost | 7,206,878 | |
Unrealized Gain (Loss) | 2,883 | |
Estimated Fair Value | 7,209,761 | |
U.S. Treasuries - Held to Maturity [Member] | Level 1 [Member] | ||
Amortized Cost | 7,206,878 | |
U.S. Treasuries - Held to Maturity [Member] | Level 2 [Member] | ||
Amortized Cost | ||
U.S. Treasuries - Held to Maturity [Member] | Level 3 [Member] | ||
Amortized Cost |
Cash and Cash Equivalents and_5
Cash and Cash Equivalents and Investments (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash And Cash Equivalents And Investments | ||
Held-to-maturity | $ 66,769 | $ 241,721 |
Other | 243,472 | 487,445 |
Dividend and interest income | $ 310,241 | $ 729,166 |
Cash and Cash Equivalents and_6
Cash and Cash Equivalents and Investments (Details Narrative) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Aggregate deposite | $ 2,790,000 |
Certificates of Deposit [Member] | Minimum [Member] | |
Maturity terms | 4 months |
Certificates of Deposit [Member] | Maximum [Member] | |
Maturity terms | 24 months |
U.S. Treasury Obligations [Member] | Maximum [Member] | |
Maturity terms | 1 year |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Notes, Loans and Financing Receivable, Gross, Current | $ 2,256,180 | $ 4,533,411 |
Less Allowance for Credit Losses | (315,000) | (673,000) |
Notes, Loans and Financing Receivable, Net, current | 1,941,180 | 3,860,411 |
Current [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 1,842,679 | 3,699,956 |
1 To 30 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 121,294 | 227,343 |
31 to 60 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 95,569 | 147,106 |
61 To 90 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 59,633 | 120,193 |
91 To 120 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 46,777 | 119,466 |
121 To 150 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 38,422 | 110,673 |
151 To 180 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 51,806 | 108,674 |
Payday and Title Loans [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 1,966,442 | 4,134,878 |
Less Allowance for Credit Losses | (315,000) | (673,000) |
Notes, Loans and Financing Receivable, Net, current | 1,651,442 | 3,461,878 |
Payday and Title Loans [Member] | Current [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 1,558,292 | 3,322,131 |
Payday and Title Loans [Member] | 1 To 30 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 117,747 | 216,753 |
Payday and Title Loans [Member] | 31 to 60 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 94,135 | 140,872 |
Payday and Title Loans [Member] | 61 To 90 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 59,263 | 117,544 |
Payday and Title Loans [Member] | 91 To 120 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 46,777 | 118,626 |
Payday and Title Loans [Member] | 121 To 150 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 38,422 | 110,278 |
Payday and Title Loans [Member] | 151 To 180 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 51,806 | 108,674 |
Installment Loans [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 17,069 | 88,599 |
Less Allowance for Credit Losses | ||
Notes, Loans and Financing Receivable, Net, current | 17,069 | 88,599 |
Installment Loans [Member] | Current [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 11,718 | 67,891 |
Installment Loans [Member] | 1 To 30 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,547 | 10,590 |
Installment Loans [Member] | 31 to 60 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 1,434 | 6,234 |
Installment Loans [Member] | 61 To 90 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 370 | 2,649 |
Installment Loans [Member] | 91 To 120 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 840 | |
Installment Loans [Member] | 121 To 150 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 395 | |
Installment Loans [Member] | 151 To 180 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 272,669 | 309,934 |
Less Allowance for Credit Losses | ||
Notes, Loans and Financing Receivable, Net, current | 272,669 | 309,934 |
Pawn [Member] | Current [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | 272,669 | 309,934 |
Pawn [Member] | 1 To 30 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn [Member] | 31 to 60 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn [Member] | 61 To 90 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn [Member] | 91 To 120 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn [Member] | 121 To 150 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn [Member] | 151 To 180 Days [Member] | ||
Notes, Loans and Financing Receivable, Gross, Current |
Allowance for Credit Losses o_3
Allowance for Credit Losses on Loans Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses on loans receivable, beginning of year | $ 673,000 | $ 818,000 |
Provision for loans receivable credit losses charged to expense | 274,049 | 975,938 |
Charge-offs, net | (632,049) | (1,120,938) |
Allowance for credit losses on loans receivable, end of year | $ 315,000 | $ 673,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable | $ 650,665 | $ 530,476 |
Less allowance for credit losses | (18,000) | (13,000) |
Net accounts receivable | 632,665 | 517,476 |
Cellular Retail [Member] | ||
Accounts receivable | 325,041 | 184,519 |
Less allowance for credit losses | ||
Net accounts receivable | 325,041 | 184,519 |
Direct to Consumer [Member] | ||
Accounts receivable | 271,742 | 318,235 |
Less allowance for credit losses | (18,000) | (13,000) |
Net accounts receivable | 253,742 | 305,235 |
Consumer Finance [Member] | ||
Accounts receivable | 53,882 | 27,722 |
Less allowance for credit losses | ||
Net accounts receivable | $ 53,882 | $ 27,722 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narratve) | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Net accounts receivable unsettled of credit card | 74.00% | 68.00% |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finished Goods | ||
TOTAL | $ 8,729,368 | $ 8,330,691 |
Reserve | (847,000) | (1,065,000) |
Cellular Retail [Member] | ||
Finished Goods | ||
TOTAL | 5,405,993 | 5,687,771 |
Direct to Consumer [Member] | ||
Finished Goods | ||
TOTAL | 3,433,460 | 2,888,483 |
Consumer Finance [Member] | ||
Finished Goods | ||
TOTAL | 736,915 | 819,437 |
Reserve [Member] | ||
Finished Goods | ||
Reserve | $ (847,000) | $ (1,065,000) |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Reduction in inventory | $ 847,000 | $ 1,065,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment, gross | $ 17,051,859 | $ 16,576,998 |
Property, plant and equipment, acquisitions, gross | 293,054 | 1,606,331 |
Property, plant and equipment, additions, gross | 480,509 | 720,379 |
Property, plant and equipment, deletions, gross | (1,153,885) | (1,851,849) |
Accumulated depreciation | (7,326,816) | (6,631,172) |
Accumulated depreciation, additions | (1,867,009) | (1,811,918) |
Accumulated depreciation, deletions | 804,734 | 1,116,274 |
Property, plant and equipment, net | 8,282,446 | 9,725,043 |
Property, plant and equipment, acquisitions, net | 293,054 | 1,606,331 |
Property, plant and equipment, additions, net | (1,386,500) | (1,091,539) |
Property, plant and equipment, deletions, net | (349,151) | (735,575) |
Property, Equipment And Sales Floor [Member] | ||
Property, plant and equipment, gross | 8,479,156 | 8,182,321 |
Property, plant and equipment, acquisitions, gross | 293,054 | 1,606,331 |
Property, plant and equipment, additions, gross | 164,977 | 531,028 |
Property, plant and equipment, deletions, gross | (1,153,885) | (1,840,524) |
Property, plant and equipment, net | 7,783,302 | 8,479,156 |
Software [Member] | ||
Property, plant and equipment, gross | 1,884,481 | 1,736,669 |
Property, plant and equipment, acquisitions, gross | ||
Property, plant and equipment, additions, gross | 276,627 | 159,137 |
Property, plant and equipment, deletions, gross | (11,325) | |
Property, plant and equipment, net | 2,161,108 | 1,884,481 |
Building [Member] | ||
Property, plant and equipment, gross | 5,488,222 | 5,458,008 |
Property, plant and equipment, acquisitions, gross | ||
Property, plant and equipment, additions, gross | 38,905 | 30,214 |
Property, plant and equipment, deletions, gross | ||
Property, plant and equipment, net | 5,527,127 | 5,488,222 |
Land [Member] | ||
Property, plant and equipment, gross | 1,200,000 | 1,200,000 |
Property, plant and equipment, acquisitions, gross | ||
Property, plant and equipment, additions, gross | ||
Property, plant and equipment, deletions, gross | ||
Property, plant and equipment, net | $ 1,200,000 | $ 1,200,000 |
Property and Equipment (Detai_2
Property and Equipment (Details 1) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Abstract] | |
2020 | $ 1,578 |
2021 | 996 |
2022 | 540 |
2023 | 344 |
2024 | 234 |
Thereafter | 4,590 |
Total | $ 8,282 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 6,078 | $ 5,701 |
Variable lease expense | 2,354 | 2,708 |
Total lease expense | $ 8,432 | $ 8,409 |
Leases (Details 1)
Leases (Details 1) | Dec. 31, 2020 | Dec. 31, 2019 |
Other Information: | ||
Weighted average remaining lease term for operating leases | 2 years 10 months 17 days | 3 years |
Weighted average discount rate | 5.10% | 5.80% |
Leases (Details 2)
Leases (Details 2) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 5,179 | |
2022 | 3,733 | |
2023 | 2,107 | |
2024 | 996 | |
2025 | 308 | |
2026 | 62 | |
Thereafter | 12 | |
Total future minimum lease payments | 12,397 | |
Less: imputed interest | (986) | |
Total | 11,411 | |
Current portion operating lease liabilities | 4,714,975 | $ 5,079,745 |
Non-Current operating lease liabilities | 6,696,418 | $ 7,444,789 |
Total | $ 11,411 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
ROU operating lease assets | $ 10,892,409 | $ 12,344,894 |
ROU operating lease liability | $ 11,411 | |
Minimum [Member] | ||
Real property leases | 3 years | |
Maximum [Member] | ||
Real property leases | 5 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | $ 13,355,591 | $ 13,355,591 | $ 13,355,591 |
Accumulated impairment losses | (7,559,063) | (7,559,063) | (7,559,063) |
Goodwill, net of impairment losses | 5,796,528 | 5,796,528 | 5,796,528 |
Goodwill acquired (disposed) during year | |||
Impairment losses | |||
Consumer Finance Segment [Member] | |||
Goodwill | 7,559,063 | 7,559,063 | 7,559,063 |
Accumulated impairment losses | (7,559,063) | (7,559,063) | (7,559,063) |
Goodwill, net of impairment losses | |||
Goodwill acquired (disposed) during year | |||
Impairment losses | |||
Direct to Consumer Segment [Member] | |||
Goodwill | 31,244 | 31,244 | 31,244 |
Accumulated impairment losses | |||
Goodwill, net of impairment losses | 31,244 | 31,244 | 31,244 |
Goodwill acquired (disposed) during year | |||
Impairment losses | |||
Cellular Retail [Member] | |||
Goodwill | 5,765,284 | 5,765,284 | 5,765,284 |
Accumulated impairment losses | |||
Goodwill, net of impairment losses | 5,765,284 | 5,765,284 | $ 5,765,284 |
Goodwill acquired (disposed) during year | |||
Impairment losses |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross amortizable intangible assets | $ 7,954,054 | $ 10,229,031 | $ 10,369,533 |
Acquisitions, Gross | 234,020 | 747,903 | |
Acquisitions, accumulated amortization | |||
Acquisitions | 234,020 | 747,903 | |
Additions, accumulated amortization | (701,868) | (699,636) | |
Additions | (701,868) | (699,636) | |
Deletions, gross | (2,508,997) | (888,405) | |
Deletions, accumulated amortization | 2,508,997 | 714,678 | |
Deletions | (173,727) | ||
Acquisition Non-amortizable trademarks | |||
Less accumulated amortization | (4,380,252) | (6,187,381) | (6,202,423) |
Net Amortizable Intangible Assets | 3,573,802 | 4,041,650 | 4,167,110 |
Non-amortizable trademarks | |||
Intangible Assets, net | 3,573,802 | 4,041,650 | 4,167,110 |
Customer Relationships [Member] | |||
Gross amortizable intangible assets | 7,727,054 | 10,002,031 | 10,142,533 |
Acquisitions, Gross | 234,020 | 747,903 | |
Additions, gross | |||
Deletions, gross | (2,508,997) | (888,405) | |
Other Intangible Assets [Member] | |||
Gross amortizable intangible assets | 227,000 | 227,000 | $ 227,000 |
Acquisitions, Gross | |||
Additions, gross | |||
Deletions, gross |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 2) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2021 | $ 618,403 | ||
2022 | 568,663 | ||
2023 | 548,039 | ||
2024 | 515,649 | ||
2025 | 472,474 | ||
Thereafter | 850,574 | ||
Finite-Lived Intangible Assets, Net | $ 3,573,802 | $ 4,041,650 | $ 4,167,110 |
Loans Receivable - Non-Current
Loans Receivable - Non-Current (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Loans Receivable Noncurrent [Abstract] | |
Loans receivable interest rate | 0.05 |
Contract Liabilities and Othe_3
Contract Liabilities and Other Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred financing fees | $ 113,255 | $ 218,113 |
Merchandise credits and gift card liability | 572,199 | 576,717 |
Total | $ 685,454 | $ 794,830 |
Notes Payable - Long Term (Deta
Notes Payable - Long Term (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 1,085,251 | |
Less current maturities | (65,414) | |
Notes payable, noncurrent | 1,019,837 | |
Note Payable to Seller [Member] | ||
Debt Instrument [Line Items] | ||
Total | 789,216 | |
Note Payable to Seller Two [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 296,035 |
Notes Payable - Long Term (De_2
Notes Payable - Long Term (Details Narrative) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Note Payable to Seller [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Aug. 5, 2022 |
Stated interest rate | 6.00% |
Note Payable to Seller Two [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Jan. 4, 2024 |
Principal periodic payment | $ 6,692 |
Stated interest rate | 5.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | ||
Federal | $ 2,294,000 | $ 1,026,000 |
State | 511,305 | 292,000 |
Current Income Tax Expense (Benefit) | 2,805,305 | 1,318,000 |
Deferred: | ||
Federal | (14,000) | (319,000) |
State | (1,000) | (91,000) |
Deferred Income Tax Expense (Benefit) | (15,000) | (410,000) |
Income tax expense (benefit) | $ 2,790,305 | $ 908,000 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Allowance for accounts and loans receivable | $ 86,000 | $ 179,000 |
Inventory capitalization | 61,000 | 57,000 |
Inventory reserve | 169,000 | 139,000 |
Accrued expenses | 99,000 | 147,000 |
Prepaid expense | (149,000) | (209,000) |
Property and equipment | (487,000) | (587,000) |
Goodwill and intangible assets | (149,000) | (111,000) |
Net deferred income tax asset (liability) | $ (370,000) | $ (385,000) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Income tax expense (benefit) using the statutory federal rate of 21% | $ 2,738,000 | $ 917,000 |
State income taxes, net of federal benefit | 486,305 | 235,000 |
Non-deductible meals and entertainment | 6,000 | 12,000 |
Noncontrolling interest's pass through income | (504,000) | (270,000) |
Other non-deductible expenses | 64,000 | 14,000 |
Income tax expense (benefit) | $ 2,790,305 | $ 908,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Statutory federal income tax rate | 21.00% |
Equity (Details)
Equity (Details) - WCR 2015 Stock Incentive Plan [Member] | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding and nonvested at beginning | shares | |
Granted | shares | |
Vested | shares | |
Forfeited | shares | |
Outstanding and nonvested at ending | shares | |
Exercisable at ending | shares | 65,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding and nonvested at beginning | |
Granted | |
Vested | |
Forfeited | |
Outstanding and nonvested at ending | |
Exercisable at ending | $ 6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Roll Forward] | |
Exercisable at ending | 4 years 1 month 10 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value [Roll Forward] | |
Outstanding and nonvested at beginning | $ | |
Granted | |
Vested | $ | |
Forfeited | |
Outstanding and nonvested at ending | $ | |
Exercisable at ending | $ | $ 48,750 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Feb. 06, 2015 | |
Share Repurchase Program [Member] | |||
Stock repurchase amount | $ 4,000,000 | ||
Available balance of share repurchasing authority | $ 1,170,000 | ||
WCR 2015 Stock Incentive Plan [Member] | |||
Number of shares reserved for future issuance (in shares) | 100,000 | ||
Options granted | |||
Vested option | |||
Unrecognized stock-based compensation expense | $ 0 | ||
2015 Stock Incentive Plan [Member] | |||
Options granted | 65,000 | 65,000 | |
Number of options available under plan | 35,000 | ||
Vesting option granted date | Feb. 9, 2015 | ||
Expiration period | 10 years |
Dividends (Details)
Dividends (Details) | 12 Months Ended |
Dec. 31, 2020USD ($)$ / shares | |
Dividends One [Member] | |
Date Declared | Feb. 13, 2020 |
Record Date | Feb. 28, 2020 |
Dividend Per Share | $ / shares | $ 0.05 |
Payment Date | Mar. 9, 2020 |
Dividend Paid | $ | $ 463,289 |
Dividends Two [Member] | |
Date Declared | May 5, 2020 |
Record Date | May 22, 2020 |
Dividend Per Share | $ / shares | $ 0.025 |
Payment Date | Jun. 2, 2020 |
Dividend Paid | $ | $ 230,865 |
Dividends Three [Member] | |
Date Declared | Aug. 10, 2020 |
Record Date | Aug. 25, 2020 |
Dividend Per Share | $ / shares | $ 0.025 |
Payment Date | Sep. 4, 2020 |
Dividend Paid | $ | $ 228,373 |
Dividends [Member] | |
Date Declared | Nov. 3, 2020 |
Record Date | Nov. 17, 2020 |
Dividend Per Share | $ / shares | $ 0.025 |
Payment Date | Nov. 30, 2020 |
Dividend Paid | $ | $ 221,346 |
Revenue (Details Narrative)
Revenue (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from external customers | $ 129,107,000 | $ 108,402,000 |
Fees and interest income | 5,959,000 | 8,513,000 |
Cellular Retail [Member] | ||
Compensation expense | 3,379,000 | 29,190,000 |
Revenue from external customers | 85,209,000 | 68,682,000 |
Cellular Retail [Member] | Merchandise Revenue [Member] | ||
Revenue from external customers | 65,100,000 | 52,400,000 |
Cellular Retail [Member] | Other Revenue [Member] | ||
Revenue from external customers | 20,100,000 | 16,300,000 |
Direct to Consumer [Member] | ||
Revenue from external customers | 42,114,000 | 38,024,000 |
Direct to Consumer [Member] | Merchandise Revenue [Member] | ||
Revenue from external customers | 42,100,000 | 38,000,000 |
Consumer Finance [Member] | ||
Revenue from external customers | 1,784,000 | 1,696,000 |
Fees and interest income | 5,959,000 | 8,513,000 |
Consumer Finance [Member] | Merchandise Revenue [Member] | ||
Revenue from external customers | 1,400,000 | 1,400,000 |
Consumer Finance [Member] | Other Revenue [Member] | ||
Revenue from external customers | $ 300,000 | $ 300,000 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Bank fees | $ 2,192,659 | $ 1,956,674 |
Collection costs | 319,623 | 324,595 |
Insurance | 826,485 | 805,547 |
Management and advisory fees | 971,912 | 835,154 |
Professional and consulting fees | 1,411,107 | 1,406,914 |
Supplies | 795,557 | 658,500 |
Disposal loss on closed/sold locations | 926,486 | 75,077 |
Other | 2,460,821 | 2,385,780 |
Total other expenses | $ 9,904,650 | $ 8,448,241 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Cash | $ 568 | $ 738 |
Note payable | 18 | |
Noncontrolling interests / equity | 218 | |
Purchase price | $ 568 | $ 974 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property and equipment | $ 293,054 | $ 1,606,331 |
Cellular Retail Segment [Member] | Asset Purchase Agreement [Member] | ||
Cash | 2 | 136 |
Inventory | 82 | 458 |
Property and equipment | 272 | 1,579 |
Intangible assets | 234 | 748 |
Operating lease right-of-use assets | 1,178 | 3,606 |
Other assets | 33 | 582 |
Other liabilities | (55) | (1,179) |
Notes payable | (1,350) | |
Operating lease liabilities | (1,178) | (3,606) |
Net assets acquired | $ 568 | $ 974 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from external customers | $ 129,107,000 | $ 108,402,000 |
Fees and interest income | 5,959,000 | 8,513,000 |
Total Revenue | 135,066,285 | 116,914,541 |
Depreciation and amortization | 2,569,000 | 2,512,000 |
Interest expense | 41,396 | 115,438 |
Income tax expense (benefit) | 2,790,305 | 908,000 |
Net income (loss) | 10,248,117 | 3,455,550 |
Total segment assets | 93,252,727 | 91,906,628 |
Expenditures for segmented assets | 592,000 | 1,315,000 |
Cellular Retail [Member] | ||
Revenue from external customers | 85,209,000 | 68,682,000 |
Total Revenue | 85,209,000 | 68,682,000 |
Depreciation and amortization | 2,014,000 | 1,961,000 |
Interest expense | 41,000 | 62,000 |
Income tax expense (benefit) | 1,474,000 | 490,000 |
Net income (loss) | 5,934,000 | 2,502,000 |
Total segment assets | 35,347,000 | 35,816,000 |
Expenditures for segmented assets | 234,000 | 1,007,000 |
Direct to Consumer [Member] | ||
Revenue from external customers | 42,114,000 | 38,024,000 |
Total Revenue | 42,114,000 | 38,024,000 |
Depreciation and amortization | 531,000 | 513,000 |
Interest expense | 2,000 | |
Income tax expense (benefit) | 1,456,000 | 175,000 |
Net income (loss) | 4,947,000 | 588,000 |
Total segment assets | 15,778,000 | 12,397,000 |
Expenditures for segmented assets | 358,000 | 308,000 |
Consumer Finance [Member] | ||
Revenue from external customers | 1,784,000 | 1,696,000 |
Fees and interest income | 5,959,000 | 8,513,000 |
Total Revenue | 7,743,000 | 10,209,000 |
Depreciation and amortization | 20,000 | 31,000 |
Income tax expense (benefit) | 162,000 | 381,000 |
Net income (loss) | 440,000 | 1,066,000 |
Total segment assets | 6,720,000 | 8,582,000 |
Corporate [Member] | ||
Depreciation and amortization | 4,000 | 7,000 |
Interest expense | 51,000 | |
Income tax expense (benefit) | (302,000) | (138,000) |
Net income (loss) | (1,073,000) | (700,000) |
Total segment assets | $ 35,408,000 | $ 35,112,000 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2020Number | |
Segment Reporting [Abstract] | |
Number of operating segment | 4 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Employment Agreement [Member] | ||
Bonus arrangement current | $ 1,696,000 | $ 881,000 |
Cellular Retail [Member] | ||
Non-cancelable operating leases | $ 1,020,000 |
Management and Advisory Agree_2
Management and Advisory Agreement (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other fee payable description | The second amended and restated management requires the Company to pay Blackstreet a fee in an amount equal to $400,000 upon the closing of an acquisition in consideration for Blackstreet’s referral to the Company of such acquisition opportunity, and Blackstreet’s assistance in the performance of due diligence services relating thereto. | |
Management fee payable description | The annual fees under the agreement equal the greater of (i) $674,840 (subject to annual increases of five percent) or (ii) five percent of Western Capital’s “EBITDA” as defined under the agreement. | |
Investment Advisory, Management and Administrative Service [Member] | ||
Total Revenues | $ 871,912 | $ 735,154 |
Investment Advisory, Management and Administrative Service [Member] | Blackstreet Capital Management, LLC [Member] | ||
Balance due | $ 100,000 | $ 0 |
Committees of the Board of Di_2
Committees of the Board of Directors (Details Narrative) - Employment Agreements [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued bonuses | $ 1,696,000 | $ 881,000 |
Non-cancelable operating leases | $ 10,200,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Aug. 31, 2011USD ($)Number | Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($) |
Other Related Party [Member] | |||
Number of properties | Number | 3 | ||
Related Party [Member] | |||
Lease payments | $ 208,000 | $ 209,000 | |
Lease Property Month-To-Month [Member] | Other Related Party [Member] | |||
Lease payments | 1,680 | ||
LeasePropertyMember | Other Related Party [Member] | |||
Lease payments | 1,200 | ||
LeaseProperty2Member | Other Related Party [Member] | |||
Lease payments | 5,500 | ||
Latter Lease [Member] | Related Party [Member] | |||
Lease payments | $ 7,141 | ||
Lease term | 5 years | ||
Ladary Inc [Member] | New Lease Property [Member] | |||
Number of properties | Number | 2 | ||
Lease payments | $ 2,310 | ||
Lease term | 4 years | ||
Number of operating leases | Number | 2 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Feb. 15, 2021$ / shares |
Subsequent Event [Line Items] | |
Date Declared | Feb. 15, 2021 |
Record Date | Feb. 23, 2021 |
Dividend Per Share | $ 0.025 |
Payment Date | Mar. 5, 2021 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jan. 08, 2021shares |
Subsequent Event [Member] | Swisher Acquisition, Inc. [Member] | Merger Agreement [Member] | |
Subsequent Event [Line Items] | |
Number of share issued | 408,000 |