
	December 31,
	2025		2024
Current	$	8,173,364	$	5,386,074
30-59 Days	56,831		83,105
60-89 days	24,233		41,861
> 90 days	12,882		27,120
Loans held for investment	8,267,310		5,538,160
Allowance for credit losses	(929,406)		(816,045)
Loans held for investment, net	$	7,337,904	$	4,722,115

These loans have a variety of lending terms and have original maturities ranging from six weeks to 36 months. Because the Company’s loan portfolio focuses on unsecured installment loans, the Company evaluates the portfolio as a single homogeneous loan portfolio and performs further analysis by product type as needed.

The Company closely monitors credit quality for its loans held for investment to manage and evaluate exposure to credit risk. Credit risk management begins with initial underwriting, where a consumer is assessed based on the Company’s underwriting and credit policy. This includes Know Your Customer identification, traditional credit scoring models, and various Fair Credit Reporting Act permissible consumer credit and risk data. Credit quality is monitored subsequent to underwriting based on performance metrics that include, but are not limited to, delinquency and default metrics.

The Company uses proprietary forecasting combining Austrian Business Cycle Theory with real-time data to help detect economic inflection points earlier than using past behavior alone. This forecasting approach helps mitigate issues commonly attributed to behavior-driven credit scores. The Company's forecasting directly shapes underwriting, lending and risk strategies, delivering resilient, future-ready financial tools to merchants and their customers.

The Company evaluates the credit risk of its portfolio by grouping it into four buckets that range from A to D, with receivables having an “A” rating representing the highest credit quality and lowest likelihood of loss. As part of the Company’s credit risk management activities, on an ongoing basis, the Company assesses overall credit quality by reviewing information related to the performance of a customer’s account with the Company, including delinquency information.

The following tables present an analysis of the credit quality of the amortized cost basis excluding accrued interest receivable, by calendar year of origination on loans held for investment for the December 31, 2025 and 2024:


	December 31, 2025
	Amortization Costs Basis by Calendar Year of Origination
	2025		2024		Prior		Total
A	$	3,366,828	$	104,402	$	506	$	3,471,736
B	2,639,049		118,046		7,976		2,765,071
C	1,384,930		153,755		34,452		1,573,137
D	445,093		5,102		7,171		457,366
Total amortized cost basis	$	7,835,900	$	381,305	$	50,105	$	8,267,310


	December 31, 2024
	Amortization Costs Basis by Calendar Year of Origination
	2024		2023		Prior		Total
A	$	1,435,804	$	20,208	$	23,177	$	1,479,189
B	1,455,063		99,787		43,053		1,597,903
C	1,471,577		334,434		109,422		1,915,433
D	331,563		18,158		26,307		376,028
Total amortized cost basis	4,694,007		472,587		201,959		5,368,553
Fair value step-up in loans held for investment	169,607		—		—		169,607
	$	4,863,614	$	472,587	$	201,959	$	5,538,160

The Company maintains an allowance for credit losses at a level sufficient to absorb expected credit losses based on evaluating known and inherent risks in its loan portfolio. The allowance for credit losses reflects the Company's estimate of expected lifetime credit losses, which consider the remaining contractual term, historical credit losses, consumer payment trends, and future payment expectations as of each balance sheet date. Adjustments to the allowance for changes in the Company's estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented within the Company's Consolidated Statements of Operations. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged off against the allowance for credit losses. Loans are charged off in accordance with our charge-off policy, as the contractual principal becomes 120 days past due. Subsequent recoveries of the unpaid principal balance, if any, are credited to the allowance for credit losses.


Balance at January 1, 2025	$	816,045
Charge-offs	(901,450)
Provision for credit losses	1,014,811
Balance at December 31, 2025	$	929,406

Balance at January 1, 2024	$	—
Balance acquired from Credova Merger	1,130,515
Charge-offs	(1,367,121)
Provision for credit losses	1,052,651
Balance at December 31, 2024	$	816,045