8-K
OppFi Inc. (OPFI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 5, 2022
OppFi Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-39550 | 85-1648122 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
130 E. Randolph Street, Suite 3400
Chicago, Illinois 60601
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (312) 212-8079
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br>on which registered |
|---|---|---|
| Class A common stock, $0.0001 par<br>value per share | OPFI | The New York Stock Exchange |
| Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | OPFI WS | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
The information contained in Item 7.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.02.
Item 7.01 Regulation FD Disclosure.
On May 5, 2022, OppFi Inc. (the “Company”) issued a press release announcing the financial results for the first quarter ended March 31, 2022 and provided an earnings presentation to accompany the press release. Copies of the press release and earnings presentation are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
This information and the information contained in Exhibits 99.1 and 99.2 is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in any such filing, regardless of any general incorporation language in the filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Index
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release from OppFi Inc. dated May 5, 2022, entitled "OppFi Reports First Quarter 2022 Financial Results." |
| 99.2 | OppFi Inc. Presentation dated May 5, 2022. |
| 104 | Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: May 5, 2022 | OppFi Inc. | |
|---|---|---|
| By: | /s/ Pamela D. Johnson | |
| Pamela D. Johnson | ||
| Chief Financial Officer |
Document
OppFi Reports First Quarter 2022 Financial Results
Revenue increased 20% year over year to $100.7 million for the first quarter of 2022
Net Originations increased 63% year over year to $162.8 million for the first quarter of 2022
Ending Receivables increased 38% year over year to $338.5 million for the first quarter of 2022
Net loss of $(0.3) million for the first quarter of 2022
Adjusted Net Income of $0.6 million for the first quarter of 2022
Basic and Diluted EPS of $0.08 for the first quarter of 2022
Adjusted Basic and Diluted EPS of $0.01 for the first quarter of 2022
CHICAGO, May 5, 2022— OppFi Inc. (NYSE: OPFI) (“OppFi” or the “Company”), a leading financial technology platform that powers banks to help the everyday consumer gain access to credit, today reported financial results for the first quarter ended March 31, 2022.
“We experienced robust customer demand in the first quarter with a more normalized credit demand environment, achieving a first quarter record 63% origination growth and 38% expansion in ending receivables year over year,” said Todd Schwartz, Chief Executive Officer and Executive Chairman of OppFi. “The current demand environment, coupled with our updated underwriting model, has enabled us to strategically focus on stronger, higher-tier credit segments within our addressable market. While our first quarter profitability was muted as expected, due to elevated charge-off levels from loans originated late last year, our strong origination volume, improved credit performance and enhanced operating efficiencies provide us with confidence for the remainder of the year. As a result, we re-affirm our previously issued full-year 2022 guidance.”
“We remain excited to pursue our mission to facilitate safe, simple and more affordable credit access to the 60 million everyday Americans who currently lack traditional options to rebuild their financial health,” continued Schwartz. “Our strategic growth initiatives are designed to help facilitate affordable credit access to support financial inclusion.”
Financial Summary
The following tables present a summary of OppFi’s results for the three months ended March 31, 2022 and 2021.
| (in thousands, except share and per share data) Unaudited | Three Months Ended March 31, | Change | |
|---|---|---|---|
| 2022 | 2021 | % | |
| Total revenue | $ 100,710 | $ 84,257 | 19.5 % |
| Net (loss) income | $ (297) | $ 24,384 | (101.2) % |
| Adjusted net income | $ 648 | $ 19,255 | (96.6) % |
| Adjusted EBITDA | $ 11,303 | $ 32,360 | (65.1) % |
| Basic and diluted EPS(a) | $ 0.08 | $ — | — % |
| Adjusted basic and diluted EPS(a) | $ 0.01 | $ — | — % |
a.Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.
First Quarter Key Performance Metrics
The following tables represent key quarterly metrics.
| (in thousands, except marketing cost per loan information) Unaudited | As of and for the Three Months Ended | ||
|---|---|---|---|
| March 31, 2022 | December 31, 2021 | March 31, 2021 | |
| Total Net Originations(a) | $ 162,756 | $ 186,685 | $ 99,809 |
| Ending Receivables(b) | $ 338,458 | $ 337,529 | $ 245,293 |
| % of Originations by Bank Partners | 95 % | 94 % | 76 % |
| Net Charge-Offs as % of Average Receivables(c) | 56 % | 53 % | 30 % |
| Auto-Approval Rate(d) | 61 % | 60 % | 41 % |
| Marketing Cost per Funded Loan(e) | $ 76 | $ 89 | $ 56 |
| Marketing Cost per New Funded Loan(f) | $ 221 | $ 260 | $ 266 |
a.Total net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi.
b.Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans.
c.Annualized net charge-offs as a percentage of average receivables (defined as unpaid principal of both on- and off-balance sheet loans) represents total charge offs from the period less recoveries as a percent of average receivables. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.
d.Auto-Approval Rate is calculated by taking the number of approved loans that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved.
e.Marketing Cost per Funded Loan represents marketing cost per funded loan for new and refinanced loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of loans originated during that same period.
f.Marketing Cost per New Funded Loan represents marketing cost for new loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of new loans originated during that same period.
Full Year 2022 Guidance Re-Affirmed
OppFi re-affirms its previously issued full-year 2022 financial guidance. The Company expects:
•Total revenue and ending receivables growth of 20% to 25% year over year
•Net revenue margin (defined as gross revenues less change in fair value divided by total revenue) between 60% and 65%
•Adjusted operating expenses (defined as total expenses excluding interest expenses, add backs and one-time items), as percentage of total revenue between 43% and 47%
•Adjusted EBITDA margin between 20% to 25%
•Adjusted net income margin between 8% and 12%
OppFi’s full-year guidance is based on management’s assumptions that origination volumes remain strong, net charge-off rates stabilize and improve throughout the year, and anticipated benefits are realized from operating expense efficiency initiatives already underway.
Conference Call
Management will host a conference call today at 9:00 a.m. ET to discuss OppFi’s financial results and outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company's website.
The conference call can also be accessed with the following dial-in information:
Domestic: 1-877-337-6181
International: 1-416-981-9011
Conference ID: 22018498
An archived version of the webcast will be available on OppFi's website following the conference call. The dial-in replay will be available through May 19, 2022. To access the replay, dial 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) and enter replay pin number 22018498.
About OppFi
OppFi (NYSE: OPFI) is a leading financial technology platform that powers banks to help the everyday consumer gain access to credit. Through its unwavering commitment to customer service, the Company supports consumers, who are turned away by mainstream options, to build better financial health. In 2021, OppFi was recognized by the Deloitte North America Technology Fast 500 for the fourth consecutive year. OppFi maintains a 4.7/5.0 star rating on Trustpilot with more than 2,700 reviews and an A+ rating from the Better Business Bureau (BBB), making the Company one of the top consumer-rated financial platforms online. For more information, please visit oppfi.com.
Contacts:
Investor Relations: investors@oppfi.com
Media Relations: media@oppfi.com
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements
as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," “possible,” "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations with respect to its full year 2022 guidance, the future performance of OppFi’s platform and expectations for OppFi’s growth. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on OppFi’s business; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; concentration risk; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted Basic and Diluted EPS, Adjusted Net Income (and margin thereof), Adjusted EBITDA (and margin thereof) and Adjusted Operating Expenses. Adjusted Net Income is defined as Net Income, plus (1) recruiting fees, severance and relocation, (2) amortization of debt transaction costs and (3) other addbacks and one-time expenses following the closing of the business combination, including one-time implementation fees, stock compensation expenses, IPO readiness costs and management fees, adjusted for taxes assuming a tax rate of 25% for the three months ended March 31, 2021 and a 23.4% tax rate for the three months ended March 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EBITDA is defined as Adjusted Net Income, plus (1) a tax rate of 25% for the three months ended March 31, 2021 and a 23.4% tax rate for the three months ended March 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies., (2) depreciation and amortization, (3) interest expense and (4) business (non-income) taxes. Adjusted Basic and Diluted EPS is defined as adjusted net income divided by adjusted shares outstanding, which represent shares of both classes of common stock outstanding as of March 31, 2022, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units. Adjusted Operating Expenses is defined as total expenses excluding interest expenses, add backs and one-time items, and is presented as a percentage of Total Revenue. These financial measures are not
prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. A reconciliation for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures is in the table below.
The Non-GAAP financial measures of Adjusted EBITDA Margin, Adjusted Net Income Margin and Adjusted Operating Expense as a percentage of revenue for the full year 2022 are provided in this press release only on a non-GAAP basis because a reconciliation to the most comparable GAAP financial measures, Net Revenue, Net Income, and Total Expenses, is not available without unreasonable effort. OppFi believes that such items and, accordingly, the other items of the reconciliation, would require an unreasonable effort to predict with reasonable certainty the amount or timing of non-GAAP adjustments used to calculate these Non-GAAP financial measures. OppFi believes that any such forecast would result in a broad range of projected values that would not be meaningful to investors.
First Quarter Results of Operations
Consolidated Statements of Operations (Unaudited)
Comparison of the three months ended March 31, 2022 and 2021
| (in thousands, except share and per share data) | Three Months Ended March 31, | |
|---|---|---|
| 2022 | % | |
| Interest and loan related income | 100,336 | 19.3 % |
| Other income | 374 | 142.9 % |
| Total revenue | 100,710 | 19.5 % |
| Provision for credit losses on finance receivables | (457) | 6428.6 % |
| Change in fair value of finance receivables | (49,525) | 121.2 % |
| Net revenue | 50,728 | (18.0) % |
| Expenses: | ||
| Sales and marketing | 13,589 | 71.2 % |
| Customer operations | 10,031 | 4.4 % |
| Technology, products, and analytics | 8,229 | 41.2 % |
| General, administrative, and other | 13,591 | 43.1 % |
| Total expenses before interest expense | 45,440 | 38.2 % |
| Interest expense | 7,449 | 61.6 % |
| (Loss) income from operations | (2,161) | (108.9) % |
| Change in fair value of warrant liability | 2,404 | — % |
| Income before income taxes | 243 | (99.0) % |
| Provision for income taxes | 540 | — % |
| Net (loss) income | (297) | (101.2) % |
| Less: net loss attributable to noncontrolling interest | (1,373) | |
| Net income attributable to OppFi Inc. | 1,076 | |
| Earnings per share attributable to OppFi Inc.: (a) | ||
| Earnings per common share: | ||
| Basic | 0.08 | |
| Diluted | 0.08 | |
| Weighted average common shares outstanding: | ||
| Basic | 13,581,828 | |
| Diluted | 13,635,483 | |
| (a) Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC. |
All values are in US Dollars.
Condensed Balance Sheets
Comparison of the periods ended March 31, 2022 and December 31, 2021
| (in thousands) Unaudited | March 31, 2022 | December 31, 2021 |
|---|---|---|
| Assets | ||
| Cash and restricted cash | $ 59,946 | $ 62,362 |
| Finance receivables at fair value | 381,845 | 383,890 |
| Finance receivables at amortized cost, net | 4,811 | 4,220 |
| Other assets | 65,943 | 51,634 |
| Total assets | $ 512,545 | $ 502,106 |
| Liabilities and stockholders’ equity / members’ equity | ||
| Other liabilities | $ 66,256 | $ 58,967 |
| Total debt | 280,863 | 274,021 |
| Warrant liabilities | 8,836 | 11,240 |
| Total liabilities | 355,955 | 344,228 |
| Total stockholders’ equity / members’ equity | 156,590 | 157,878 |
| Total liabilities and stockholders' equity /members’ equity | $ 512,545 | $ 502,106 |
Total cash and restricted cash decreased by $2.4 million as of March 31, 2022 compared to December 31, 2021, driven by self funding higher receivables growth and one time expenses, partially offset by cash from operations. Finance receivables as of March 31, 2022 decreased compared to December 31, 2021 due to the decrease of fair value of finance receivables. Other assets as of March 31, 2022 increased by $14.3 million compared to December 31, 2021, driven by the addition of an operating lease right of use asset of $15.1 million partially offset by lower debt issuance costs by $0.5 million.
Other liabilities increased by $7.3 million driven by the addition of an operating lease liability of $17.6 million and a decrease of accrued expenses by $11.0 million as of March 31, 2022. Total debt increased by $6.8 million driven by an increase in utilization of leverage facilities of $10.1 million, which was offset by lower secured borrowing payables by $3.3 million. Total equity decreased by $1.3 million driven by a decrease in noncontrolling interest of $1.6 million.
As of March 31, 2022, OppFi had 84.4 million shares of common stock outstanding, excluding 25.5 million shares of common stock associated with earnouts. Earnings per share for the first quarter was $0.08. Earnings per share for the three months ended March 31, 2022 excludes 15.3 million warrants outstanding with exercise prices at $11.50 and $15.00 per share as well as 5.2 million in grants under OppFi’s equity incentive plan, as these securities are anti-dilutive.
Financial Capacity and Capital Resources
As of March 31, 2022, OppFi had $27 million in unrestricted cash and an additional $132 million of unused debt capacity under its financing facilities for future availability, representing a 33% overall undrawn capacity. Including total financing commitments of $395 million and total cash on the balance sheet of $60 million, the Company had approximately $455 million in funding capacity as of March 31, 2022. In addition, the Company’s net debt to equity ratio was well below two times.
Reconciliation of Non-GAAP Financial Measures
| (in thousands, except share and per share data) Unaudited | 2021 |
| Net (loss) income | 24,384 |
| Provision for income taxes | — |
| Debt issuance cost amortization | 521 |
| Other addbacks and one-time expenses, net(a) | 768 |
| Adjusted EBT1 | 25,673 |
| Less: pro forma taxes(b) | (6,418) |
| Adjusted net income1 | 19,255 |
| Pro forma taxes(b) | 6,418 |
| Depreciation and amortization | 2,165 |
| Interest expense | 4,087 |
| Business (non-income) taxes | 435 |
| Adjusted EBITDA1 | 32,360 |
| Adjusted basic EPS1: (c) | — |
| Weighted average adjusted basic shares: | — |
| Adjusted diluted EPS1: (c) | — |
| Weighted average adjusted diluted shares: | — |
| (a) For the three months ended March 31, 2022, addbacks and one-time expense of (0.06 million) included a (2.4 million) addback due to the change in fair value of the warrant liabilities, a 1.5 million expense due to severance, 0.6 million in expenses related to stock compensation, and 0.3 million in other addbacks and one-time expenses. | |
| (b) Assumes a tax rate of 25% for the three months ended March 31, 2021 and a 23.4% tax rate for the three months ended March 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. | |
| (c) Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC. |
All values are in US Dollars.
Adjusted Shares as Reflected in Adjusted Basic and Diluted Earnings Per Share
| Three Months Ended March 31, | ||
|---|---|---|
| (unaudited) | 2022 | 2021 |
| Weighted average Class A common stock outstanding | 13,581,828 | — |
| Weighted average Class V voting stock outstanding | 96,338,474 | — |
| Elimination of earnouts at period end | (25,500,000) | — |
| Weighted average adjusted basic shares | 84,420,302 | — |
| Dilutive impact of unvested restricted stock units | 53,655 | — |
| Weighted average adjusted diluted shares | 84,473,957 | — |
Adjusted Basic and Diluted EPS
| Three Months Ended March 31, | ||
|---|---|---|
| (unaudited) | 2022 | 2021 |
| Adjusted net income (in thousands)1 | $ 648 | $ 19,255 |
| Weighted average adjusted basic shares | 84,420,302 | $ — |
| Adjusted basic EPS:1 | $ 0.01 | $ — |
| Three Months Ended March 31, | ||
| --- | --- | --- |
| (unaudited) | 2022 | 2021 |
| Adjusted net income (in thousands)1 | $ 648 | $ 19,255 |
| Weighted average adjusted diluted shares | 84,473,957 | $ — |
| Adjusted diluted EPS:1 | $ 0.01 | $ — |
[1] Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EBT, Adjusted basic and diluted EPS and Adjusted EBITDA are financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). See the “Note Regarding Non-GAAP Financial Measures” for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures.
oppfi1q22earningspresent
Q1 2022 Earnings Presentation May 5, 2022 A Leading FinTech Platform for the Everyday Consumer
1 Disclaimer This presentation (the “Presentation”) of OppFi Inc. (“OppFi” or the “Company”) is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, the Company makes no representation or warranty with respect to the accuracy of such information. Trademarks and trade names referred to in this Presentation are the property of their respective owners. The information contained herein does not purport to be all-inclusive. This Presentation does not constitute investment, tax, or legal advice. No representation or warranty, express or implied, is or will be given by the Company or any of its respective affiliates, directors, officers, employees or advisers or any other person as to the accuracy or completeness of the information in this Presentation, and no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. The information contained in this Presentation is preliminary in nature and is subject to change, and any such changes may be material. The Company disclaims any duty to update the information contained in this Presentation, which information is given only as of the date of this Presentation unless otherwise stated herein. Forward-Looking Statements This Presentation includes "forward-looking statements'' within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," “possible,” "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations for its full year 2022 guidance, OppFi's expectations with respect to the future performance of OppFi’s platform, OppFi’s expectations for its growth, and including growth of loan automation, and profitability and OppFi's new products and their performance. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on OppFi's business; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; the risk that the business combination disrupts current plans and operations; the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; concentration risk; costs related to the business combination; changes in applicable laws or regulations; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; risks related to management transitions; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section or sections captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Non-GAAP Financial Measures Certain financial information and data contained this Presentation is unaudited and does not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, any periodic filing, information or proxy statement, or prospectus or registration statement to be filed by OppFi with the SEC. Some of the financial information and data contained in this Presentation, such) as Compound Annual Growth Rate (“CAGR”), Adjusted Basic and Diluted EPS, Adjusted Net Income (and margin thereof), Adjusted EBITDA (and margin thereof) and Adjusted Operating Expense. Adjusted Net Income is defined as Net Income plus (1) recruiting fees, severance and relocation, (2) amortization of debt transaction costs and (3) other addbacks and one-time expenses following the closing of the business combination, including one-time implementation fees, stock compensation expenses, IPO readiness costs and management fees, adjusted for taxes assuming a tax rate of 25% for the three months ended March 31, 2021 and a 23.4% tax rate after, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EBITDA is defined as Adjusted Net Income plus (1) a tax rate of 25% for the three months ended March 31, 2021 and a 23.4% tax rate for the three months ended March 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies, (2) depreciation and amortization, (3) interest expense and (4) business (non-income) taxes. Adjusted Basic and Diluted EPS is defined as adjusted net income divided by adjusted shares outstanding, which represent shares of both classes of common stock outstanding as of December 31, 2021, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units. Adjusted Operating Expenses is defined as total expense excluding interest expenses, add backs and one-time items, and is presented as a percentage of Total Revenue. have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non- GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. These non-GAAP measures of financial results are not GAAP measures of our financial results or liquidity and should not be considered as an alternative to net income (loss) as a measure of financial results, cash flows from operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. OppFi believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to OppFi’s financial condition and results of operations. OppFi’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing OppFi’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review the OppFi’s audited financial statements, which have been filed with the SEC. A reconciliation for OppFi's non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix. The Non-GAAP financial measures of Adjusted EBITDA Margin, Adjusted Net Income Margin and Adjusted Operating Expense presented as a percentage of revenue for the full year 2022 are provided in this presentation only on a non-GAAP basis because a reconciliation to the most comparable GAAP financial measures, Net Revenue and Net Income, is not available without unreasonable effort. OppFi believes that such items and, accordingly, the other items of the reconciliation, would require an unreasonable effort to predict with reasonable certainty the amount or timing of non-GAAP adjustments used to calculate these Non-GAAP financial measures. OppFi believes that any such forecast would result in a broad range of projected values that would not be meaningful to investors. Projected Financial Information This Presentation contains financial forecasts, including with respect to the Company’s estimated and projected revenue, receivables growth, Adjusted Net Income, Adjusted EBITDA, and Adjusted Operating Expense and margins with respect to Net Revenue, Adjusted Net Income, Adjusted EBITDA and Adjusted Operating Expense. The Company’s certified public accountant has not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this Presentation, and accordingly, has not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this Presentation. These projections should not be relied upon as being necessarily indicative of future results. Any estimates, forecasts or projections set forth in the Presentation have been prepared by the Company in good faith on a basis believed to be reasonable. Such estimates, forecasts and projections involve significant elements of subjective judgment and analysis and reflect numerous judgments, estimates and assumptions that are inherently uncertain in prospective financial information of any kind. As such, no representation can be made as to the attainability of such estimates, forecasts and projections. The recipient is cautioned that such estimates, forecasts or projections have not been audited and have not been prepared in conformity with GAAP. The estimates, forecasts and projections included in this Presentation are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information, which include, but are not limited to, those mentioned in the prior paragraphs under the caption “Forward-Looking Statements.” The recipient therefore should not rely on the estimates, forecasts or projections contained in the Presentation. No Offer or Solicitation This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act. Website This Presentation contains reproductions and references to the Company’s website and mobile content. The contents of the website and mobile content are not incorporated into this Presentation. Any references to URLs for the websites are intended to be inactive textual references only.
2 Robust Customer Demand More than 2.4 million applications in 2021, ~80% mobile generated Leading Proprietary Credit & Technology Platform Real-time AI drove automation for 82% of decisions in 2021 Exceptional Customer Satisfaction Net Promoter Score of 85; 2,700+ Trustpilot customer reviews with 4.7 / 5.0 average rating Key Company Highlights Solid Revenue Growth 66% 5-year CAGR1 Profitable since 2015 $66 million adjusted net income2 in 2021 Significant Scale Facilitated more than $3.3 billion in gross loan issuance covering over 2 million loans, since inception 1. 2016– 2021 2. Adj. Net Income represents Adj. EBT tax-affected at 21.6% assumed tax rate. Pro forma for conversion for fair market value accounting.
3 A platform that puts you in control The OppFi Advantage: Built for the Future 1. Hamdani, Kausar, et al. “UNEQUAL ACCESS TO CREDIT The Hidden Impact of Credit Constraints.” NewYorkFed.org, 2019 2. Friedman, Zack. “78% Of Workers Live Paycheck To Paycheck.” Forbes.com, January 11, 2019 3. Elkins, Kathleen. “Here’s how much money Americans have in their savings accounts.” CNBC.com, Sept 13, 2017 4. As of 12/31/21 60 million Lack Access to Traditional Credit1 115 million Live Paycheck to Paycheck2 150 million Have less than $1,000 in Savings3 Core product (OppLoans) is a simple interest, amortizing installment loan product with no balloon payments or fees AI-driven underwriting identifies misunderstood credit profiles Superior online reputation with a NPS of 854 Scalable and profitable operating model Typical customer is employed with a median income while having a thick file and no savings
4 Q1 2022 Financial Highlights • Net Originations increased 63% year over year • Ending Receivables increased 38% year over year • Revenue increased 20% year over year • Net Loss was ($0.3) million • Adjusted Net Income was $0.6 million • GAAP and Adjusted EPS1 were $0.08 and $0.01, respectively 1. Adjusted EPS is defined as adjusted net income divided by adjusted shares outstanding, which represent shares of both classes of common stock outstanding as of March 31, 2022, excluding 25,500,000 shares related to earnout obligations and including the impact of unvested restricted stock units
5 $84 $101 $245 $338 $100 $163 Q1 2021 Net Originations ($ Millions) Ending Receivables1 ($ Millions) Total Revenue ($ Millions) 1. Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans. YoY Growth +63% Q1 2022 YoY Growth +38% YoY Growth +20% Q1 2022 Performance Net Originations increased 63%, Ending Receivables increased 38%, and Total Revenue grew 20% year over year.
6 $19 $1 Adj. EBITDA1 ($ Millions) Adj. Net Income1 ($ Millions) 11%38%Margin2 Margin2 1. Adj. EBITDA and Adj. Net Income and margins thereof are not financial measures determined in accordance with GAAP. For a reconciliation to our most directly comparable financial measures calculated and presented in accordance with GAAP, please see the Appendix included within this presentation. 2. Margins depicted as percentage of Total Revenue. 1%23% YoY Growth (65%) YoY Growth $32 $11 Q1 2021 Q1 2022 (97%) Muted Profitability In Q1 2022, In-Line With Expectations Main driver was elevated charge-off rate related to 2H:2021 lower credit quality originations. With higher credit quality originations in 1Q:22, we expect stronger profitability in 2H:2022 than in 1H:2022.
7 • Net originations increased 63% year over year • Ending receivables increased 38% year over year as a result of strong origination growth YoY • Net charge-offs as % of average receivables increased to 56% versus 30% year over year reflecting increased losses from segments that are no longer being approved in 2022 • Yield decreased year over year due to introduction of personalized pricing and increased delinquency • Automatic approval rate increased to 61% from 41% year over year, reflecting the continued application of algorithmic automation projects that streamline the origination process • Total marketing cost per new funded loan decreased by 17% year over year due to reduced investment in direct mail spend combined with higher customer conversion rates Quarterly Key Performance Indicators Unaudited Quarter Ended, ($ in millions), except Total Marketing Cost 3/31/2021 3/31/2022 Net Originations1 $100 $163 Ending Receivables2 $245 $338 % of Originations by Bank Partners 76% 95% Net Charge-Offs as % of Avg. Receivables3 30% 56% Average Yield4 130% 120% Automatic Approval Rate5 41% 61% Total Marketing Cost per Funded Loan6 $56 $76 Total Marketing Cost per New Funded Loan7 $266 $221 1. Net originations include both originations by bank partners on the OppFi platform, as well as direct originations by OppFi. 2. Receivables are defined as unpaid principal balances of both on- and off-balance sheet loans. 3. Net charge-offs as a percentage of average receivables (defined as unpaid principal of both on- and off-balance sheet loans) represents total charge offs from the period less recoveries as a percent of average receivables. OppFi charges off loans after they are more than 90 days delinquent. 4. Average Yield is defined as annualized interest income from the period as a percent of average receivables 5. Auto-Approval Rate is calculated by taking the number of approved loans that are not decisioned by a loan advocate or underwriter (auto-approval) divided by the total number of loans approved. 6. Marketing Cost per Funded Loan represents marketing cost per funded loans (including new and returning customer loans). This metric is the amount of direct marketing costs incurred during a period divided by the number of funded loans originated during that same period. 7. Marketing Cost per New Funded Loan represents marketing cost per funded loan for new loans. This metric is the amount of direct marketing costs incurred during a period divided by the number of new funded loans originated during that same period. Key Highlights
8 • Total cash decrease of $2 million was driven by self funding higher receivables growth and one-time expenses such as transaction costs and tax distributions • Other assets grew by $14 million driven largely by the addition of an operating lease right of use assets of $15 million (corresponding liability in “Other Liabilities”) • Total debt increase of $7 million was driven by an increase in utilization of leverage facilities of $10 million and was partially offset by lower secured borrowing payables by $3 million • Equity decline of $1 million was driven by net loss for the three months of $0.3 million and net loss attributable to noncontrolling interest of $1 million Condensed Balance Sheet Unaudited Period Ended, ($ in millions) 12/31/2021 3/31/2022 Assets Cash and restricted cash $62.4 $59.9 Finance Receivables at Fair Value 383.9 381.8 Finance Receivables at Amortized Cost, Net 4.2 4.8 Other Assets 51.6 66.0 Total Assets $502.1 $512.5 Liabilities and Stockholders’/Members’ Equity Other Liabilities $59.0 $66.3 Total Debt 274.0 280.9 Warrant Liabilities 11.2 8.8 Total Liabilities 344.2 356.0 Total Equity 157.9 156.5 Total Liabilities and Equity $502.1 $512.5 Key Highlights
9 Reaffirming Full Year 2022 Outlook Net Revenue Margin 60% to 65% Adj. Operating Expense1 Margin 43% to 47% Adj. EBITDA Margin 20% to 25% Adj. Net Income Margin 8% to 12% Total revenue and ending receivables growth of 20% to 25% in 2022 year over year 1. Adj. Operating Expense is defined as total expenses excluding interest expense, add backs and one-time items. Adj. Operating Expense is not a financial measure determined in accordance with GAAP. For additional information on addback and one-time expense items, please see the Appendix included within this presentation.
10 Key Investment Highlights Profitable, growing financial technology company Installment loan category disruptor Differentiated business model with low cost spread-based lending creates a competitive advantage and minimizes interest rate risk Potential strategic growth via product extensions and acquisitions Founder, CEO and Executive Chairman as largest shareholder; owner/operator dynamic aligns incentives to maximize shareholder value
11 Appendix
12 Pro Forma Share Count as of March 31, 2022 Shares Share Price Notes$10.00 $12.00 $13.00 $14.00 Class A Common Stock held by Public and Founders 13,349,150 13,349,150 13,349,150 13,349,150 ▪ Shares held by public shareholders, including founders, underwriters and private placements. Class A and Class V Common Stock Held by Pre-Business Combination OppFi Equityholders 70,838,474 70,838,474 70,838,474 70,838,474 ▪ Excludes 25,500,000 shares of Class V Common Stock outstanding with respect to Earn Out Units held by pre- business combination OppFi equityholders, which vest and are subject to forfeiture as discussed below Total Currently Outstanding Shares of Common Stock 84,187,624 84,187,624 84,187,624 84,187,624 ▪ Excludes 25,500,000 shares of Class V Common Stock outstanding with respect to Earn Out Units held by pre- business combination OppFi equityholders, which vest and are subject to forfeiture as discussed below Earn-Out Shares - 8,500,000 17,000,000 (including 8,500,000 units that would have vested at $12) 25,500,000 (including 8,500,000 units that would have vested at each of $12 and $13) ▪ Earn-Out Shares represent shares of Class V Common Stock that related to a total of 25,500,000 Earn Out Units held by pre-business combination OppFi equityholders, which vest in three tranches when the volume weighted average price (VWAP) of the Class A Common Stock equals or exceeds each of $12.00, $13.00 and $14.00 for any 20 out of 30 consecutive trading days over the first 36 months after closing, and with respect to which Class V Common Stock is currently outstanding and subject to vesting and forfeiture ▪ Forfeited after 3-year anniversary of closing date if vesting conditions above are not met Total Outstanding Shares of Common Stock Giving Effect to Earn-Outs 84,187,624 92,687,624 101,187,624 109,687,624 Note: This presentation is not a complete summary of all relevant terms, conditions and information related to the capital structure of OppFi Inc. For more information, see the Company’s filings with the SEC, including the Annual Report on Form 10-K filed by the Company with the SEC on March 11, 2022. This presentation excludes: 14,426,937 warrants to purchase shares of Class A Common Stock at $11.50 per share 912,500 warrants to purchase shares of Class A Common Stock at $15.00 per share 11,500,000 shares of Class A Common Stock issuable under the Company’s 2021 Equity Incentive Plan 1,200,000 shares of Class A Common Stock issuable under the Company’s 2021 Employee Stock Purchase Plan
13 Fair Value First Quarter Valuation Unaudited ($ in thousands) 3/31/2022 12/31/2021 Outstanding Principal $332,517 $332,244 Accrued Interest $10,674 $10,637 Interest Rate 147.7% 147.6% Discount Rate 21.6% 21.8% Servicing Cost1 (5.0)% (5.0)% Remaining Life 0.617 years 0.618 years Default Rate1 18.5% 17.7% Accrued Interest1 3.2% 3.2% Prepayment Rate1 21.3% 21.0% Premium to Principal2 11.6% 12.0% 1. Stated as a percentage of loan receivable. 2. Represent rate applied to on-balance unpaid principal receivables, inclusive of adjustment for accrued interest. Key Highlights • Default rate increased by 80bps due to recent elevated loss rates observed in late 2021 vintages
14 OppFi GAAP Income Statements 1. Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC. (in thousands, except share and per share data) Unaudited Three Months Ended March 31, 2022 2021 Variance (%) Interest and loan related income $ 100,336 $ 84,103 19.3% Other income 374 154 142.9% Total revenue 100,710 84,257 19.5% Provision for credit losses on finance receivables (457) (7) 6428.6% Change in fair value of finance receivables (49,525) (22,389) 121.2% Net revenue 50,728 61,861 (18.0%) Expenses: Sales and marketing 13,589 7,936 71.2% Customer operations 10,031 9,609 4.4% Technology, products, and analytics 8,229 5,827 41.2% General, administrative, and other 13,591 9,496 43.1% Total expenses before interest expense 45,440 32,868 38.2% Interest expense 7,449 4,609 61.6% (Loss) income from operations (2,161) 24,384 (108.9%) Gain of loan forgiveness of Paycheck Protection Program - - - Change in fair value of warrant liability 2,404 - - Income before income taxes 243 24,384 (99.0%) Provision for income taxes 540 - - Net (loss) income (297) $ 24,384 (101.2%) Less: net loss attributable to noncontrolling interest (1,373) Net income attributable to OppFi Inc. $ 1,076 Earnings per share attributable to OppFi Inc. 1: Earnings per common share: Basic $ 0.08 $ - Diluted $ 0.08 $ - Weighted average common shares outstanding: Basic 13,581,828 - Diluted 13,635,483 -
15 OppFi Condensed Balance Sheet (in thousands) Unaudited March 31, 2022 December 31, 2021 Variance (%) Assets Cash and restricted cash $ 59,946 $ 62,362 (3.9%) Finance receivables at fair value 381,845 383,890 (0.5%) Finance receivables at amortized cost, net 4,811 4,220 14.0% Other assets 65,943 51,634 27.7% Total assets $ 512,545 $ 502,106 2.1% Liabilities and stockholders'/members’ equity Other liabilities $ 66,256 $ 58,967 12.4% Total debt 280,863 274,021 2.5% Warrant liability 8,836 11,240 (21.4%) Total liabilities 355,955 344,228 3.4% Total stockholders'/members’ equity 156,590 157,878 (0.8%) Total liabilities and stockholders’ equity $ 512,545 $ 502,106 2.1%
16 OppFi Quarterly Net Income to Adj. EBT and Adj. EBITDA Reconciliation 1. For the three months ended March 31, 2022, addback and one-time expense of ($0.06 million) included a ($2.4 million) addback due to the change in fair value of the warrant liabilities, a $1.5 million expense due to severance, $0.6 million in expenses related to stock compensation, and $0.3 million in other addback and one-time expenses. 2. Assumes a tax rate of 25% for the three months ended March 31, 2021 and a 23.4% tax rate for the three months ended March 31, 2022, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. 3. Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC. (in thousands, except share and per share data) Unaudited Three Months Ended March 31, 2022 2021 Variance (%) Net income $ (297) $ 24,384 (101.2%) Provision for income taxes 540 - - FV adjustments - - - Debt issuance cost amortization 609 521 16.9% Other addback and one-time expense1 (6) 768 (100.8%) Adjusted EBT 846 25,673 (96.7%) Less: pro forma taxes2 (198) (6,418) (96.9%) Adjusted net income 648 19,255 (96.6%) Pro forma taxes2 198 6,418 (96.9%) Depreciation and amortization 3,238 2,165 49.6% Interest expense 6,840 4,087 67.4% Business (non-income) taxes 379 435 (12.9%) Adjusted EBITDA $ 11,303 $ 32,360 (65.1%) Adjusted basic EPS3: $ 0.01 $ - Weighted average adjusted basic shares: 84,420,302 - Adjusted diluted EPS3: $ 0.01 $ - Weighted average adjusted diluted shares: 84,473,957 -
17 OppFi Cash Flows Three Months Ended March 31, (in thousands) Unaudited 2022 2021 Variance (%) Net cash provided by operating activities $ 44,286 $ 45,356 (2.4%) Net cash (used in) investing activities (52,244) (4,642) (1025.5%) Net cash provided by financing activities 5,097 9,594 (46.9%) Net (decrease) increase in cash, cash equivalents and restricted cash $ (2,861) $ 50,308 (105.7%)
18 OppFi Adjusted Shares as Reflected in Adjusted Basic and Diluted Earnings Per Share Three Months Ended March 31, 2022 2021 Weighted average Class A common stock outstanding 13,581,828 - Weighted average Class V voting stock outstanding 96,338,474 - Elimination of earnouts at period end (25,500,000) - Weighted average adjusted basic shares 84,420,302 - Dilutive impact of unvested restricted stock units 53,655 - Weighted average adjusted diluted shares 84,473,957 -
19 OppFi Adjusted Basic and Diluted EPS Three Months Ended March 31, 2022 2021 Adjusted net income (thousands)1 $ 648 $ 19,255 Weighted average adjusted basic shares 84,420,302 - Adjusted basic EPS2: $ 0.01 $ - Three Months Ended March 31, 2022 2021 Adjusted net income (thousands)1 $ 648 $ 19,255 Weighted average adjusted diluted shares 84,473,957 - Adjusted diluted EPS2: $ 0.01 $ - 1. Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EBITDA are financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). See the “Note Regarding Non-GAAP Financial Measures” below for a detailed description and reconciliation of such Non-GAAP financial measures to their most directly comparable GAAP financial measures. 2. Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC.
20 OppFi Net Income to Adj. EBT and Adj. EBITDA Reconciliation 1. Other addback and one-time expense of ($8.5 million) included a ($26.4 million) addback due to the change in fair value of the warrant liabilities, a ($6.4 million) addback due to the gain on forgiveness of PPP Loan, and a $24.4 million impact to the G&A line item in expenses comprised of: $6.6 million in one-time expenses related to the Business Combination, $3.0 million in profit interest and stock compensation, $4.2 million in the change in fair value of warrant units outstanding prior to Business Combination, and $10.6 million in other one-time expenses. 2. Assumes a tax rate of 25% for the year ended December 31, 2020 and a 21.61% tax rate after, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. 3. Prior to the Reverse Recapitalization, all net income was attributable to the noncontrolling interest. For the periods prior to July 20, 2021, earnings per share was not calculated, as net income prior to the Business Combination was attributable entirely to OppFi-LLC. ($ in thousands, except per share values) Unaudited Year Ended December 31, 2021 2020 Variance (%) Net income $ 89,795 $ 77,516 15.8% Provision for income taxes 311 - - FV adjustments - (8,293) (100.0%) Debt amortization 2,310 1,945 18.8% Other addback and one-time expense1 (8,452) 2,439 (446.5%) Adjusted EBT $ 83,964 $ 73,607 14.1% Less: pro forma taxes2 (18,145) (18,402) (1.4%) Adjusted net income $ 65,819 $ 55,205 19.2% Pro forma taxes2 18,145 18,402 (1.4%) Depreciation and amortization 10,282 6,732 52.7% Interest expense 21,946 19,284 13.8% Business (non-income) taxes 665 1,527 (56.5%) Net gain/loss on sale of asset 6 - - Adjusted EBITDA $ 116,863 $ 101,150 15.5% Adjusted basic and diluted EPS3: $ 0.78 $ - Weighted average adjusted basic shares: 84,465,109 - Weighted average adjusted diluted shares: 84,474,039 -