short term – A Camet http://acamet.org/ Sun, 20 Mar 2022 20:32:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://acamet.org/wp-content/uploads/2021/04/a-camet-icon-150x150.png short term – A Camet http://acamet.org/ 32 32 There are ten crucial things to keep in mind https://acamet.org/there-are-ten-crucial-things-to-keep-in-mind/ Sun, 20 Mar 2022 20:32:31 +0000 https://acamet.org/there-are-ten-crucial-things-to-keep-in-mind/

The market had another robust week, ending March 17 with benchmarks up 4% on lower oil prices and hopes that the Ukraine-Russia conflict would be resolved through ongoing peace talks. . The US Federal Reserve’s announcement of an expected 25 basis point rate hike came as no shock, and foreign institutional investors (FIIs) turned net buyers cheered. During the week, the BSE Sensex rose 2,314 points to 57,864 and the Nifty50 rose 657 points to 17,287, bringing the total rally to 10% from recent lows. All industries rebounded except metals, which fell half a percent.

Overall, he suggests maintaining a positive but cautious approach while keeping the focus on day-to-day risk management. Absent a positive trigger, market moves should remain limited and investors should continue to invest in selective and fundamentally resilient stocks, says Yesha Shah, head of equity research at Samco Securities. Going forward, the cause of stock market volatility would be the war between Ukraine and Russia which has entered the fourth week now despite the sanctions imposed on Russia by the Western world. Russian and Ukrainian officials have made rounds for peace talks but there is no resolution yet, while Ukrainian President Volodymyr Zelenskyy has urged Russia to come to the table for talks significant peace and security.

But broader markets underperformed benchmarks. The BSE Midcap and Smallcap indices gained 2% each. Given the significant rally over the past eight trading sessions, the market could experience some volatility and limited trading, but any escalation in the war in Ukraine and a COVID spike in China could spoil the bulls’ party, believe the experts. “The recent rebound has certainly eased some pressures, but sustainability will largely depend on global signals. Any news of an escalation in the Russia-Ukraine fight and a deteriorating COVID situation in China could shake sentiment again,” says Ajit Mishra, VP of Research at Religare Broking.

Moscow failed to achieve the goals it set before the start of the military operation to invade Ukraine due to strong resistance from Ukrainians and military forces. As a result, Russian forces began using primarily artillery bombardments in key cities in Ukraine, including kyiv, increasing heavy casualties, rendering people homeless and destroying infrastructure. On the other hand, Ukraine will soon receive American weapons, including Javelin and Stinger missiles. The fear created by the war has completely chilled feelings and forced millions of Ukrainians to flee to countries like Poland, Romania, Hungary, Solvakia and Moldova.

Industrial metals also corrected sharply after Russia and Ukraine stepped up efforts to end the war and virus cases rose in China. Experts expect commodities to remain volatile in the coming days given supply issues, rising COVID cases in China, economic numbers and the stance of central banks. China, the world’s second-largest economy, has suddenly caught the eye, especially after rapidly rising COVID cases led to shutdowns in several cities, fueling fears that economic activity could be affected. Chinese tech stocks, including Alibaba and JD.com, fell quite sharply on fears of delisting from US stock exchanges if accounting standards are not met, but rebounded very strongly on authorities’ promises that more measures could be taken to support the economy.

Oil prices continued to correct in the second week after hitting a 14-year high of around $139 a barrel, but the price movement seems to indicate that they have found a floor above 100 dollars per barrel, which is always a sign of expected equity volatility. market and a risk for oil-importing countries like India, as they have to shell out more money to buy oil from producing countries. Fears of an expected tight supply, given that there is no replacement for Russian oil, have kept prices above $100 a barrel, with Russia the third largest oil exporter. International benchmark Brent crude futures ended the week at $107.9 a barrel, correcting 4% from the previous week’s closing levels.

Concerns about China could prevail unless there is an improvement in the virus situation or concrete efforts are made to stimulate growth, said Ravindra Rao, chief research vice president. on commodities at Kotak Securities. FII’s change in mood is also one of the main reasons for the stock market rally. FIIs were net buyers for the second session on March 17 after consistent selling over the past month. They bought Rs 2,800 crore net of shares on March 17 against Rs 312 crore in the previous session, which instilled confidence among market participants, although FII remained net sellers at Rs 41 617 crore in March so far, in addition to strong sales in the previous five months. US investment adviser The Vanguard Group, Inc., part of the Vanguard Emerging Markets Stock Index Fund, acquired a stake in a total of 19 companies on Thursday by paying Rs 2,277.2 crore, although Integrated Core Strategies (Asia), based in Singapore, sold a stake in 8 companies for Rs 590.4 net. crore.

If FIIs continue to buy in the coming sessions, there could be a good chance the market will head back to an all-time high, experts believe. The Nifty50 formed a significant bullish candle on the daily charts and a robust bullish candle for the second week as it gained almost 2% on Thursday and 4% for the week to close well above its 200 moving average. days (around 16,990), indicating positive bias at Dalal Street and the market appears to have bottomed out at 15,671 for now. The index decisively broke above its significant overhead resistance at 16,800-17,000 levels, indicating that the market is likely to have further positive momentum ahead. Therefore, experts believe there could be another round of buying support in the coming week. “Previously, the area of ​​the 16,800-17,000 level has acted as strong support for the market in the past and its recent downside breakout has resulted in a 1,000 point decline in a short time. Therefore, the current decisive bullish breakout of this area could indicate the continuation of strong short-term bullish momentum,” said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

He adds that potential upside targets to watch are around 17,800-18,000 levels in the coming weeks: “Immediate support is placed at 17,050 levels.” Options data indicated that the Nifty50 could consolidate above the crucial 17,000 mark, while the trading range could be between 16,800 and 17,700 levels for the sessions ahead. Experts believe the data also indicates that 17,500 could be a near-term hurdle for the Nifty50, followed by crucial resistance at 17,800. On weekly expiry, peak open interest for calls was seen at 17,300 strikes followed by 17,500, 17,400 and 17,600 strikes. Writing calls at 17,300 strikes, then 17,600 and 17,400 strikes, while the maximum course of the call was observed at 17,000 strikes, then 18,000 and 16,900 strikes. The maximum open interest for the put was observed at 17,200 strikes followed by 16,500, 17,000 and 16,700 strikes. Put writing was observed at 17,200 moves then 17,100 and 17,300 moves, while there was unwinding put at 16,300 moves then 16,400 and 16,900 moves. “Due to a sharp rise, the call bases have distorted significantly over the past two sessions. However, given the highest sell base of 17,000 strikes where the continued addition is visible, we believe that the Nifty should find support around these levels and we can use any dips towards 17,000 to create new longs,” says ICICI Direct. On the higher side, “while immediate resistance may be encountered around 17 500, the main hurdle for the Nifty remains near 17,800,” the brokerage said. Expectations of short coverage in the banking and cement sectors have materialized. With significant short-term open interest still placed in these stocks , any downside appears to be limited and should provide support for markets in the event of an intermediate decline, the brokerage says.Volatility has seen a considerable drop in recent days, helping the market to get gain more stability.

Experts believe that if volatility falls below the 20 mark, the bulls will be able to enjoy the party even more in the coming sessions. India VIX, the so-called fear index, closed the week at 22.61 levels, down almost 11% from the previous week and 33% from the recent high of 34 levels on February 24. Growth in bank deposits and loans for the fortnight ended March 11 and exchange rate reserves for the week ended March 18 will be published next Friday.

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How financial companies got into the payday loan business https://acamet.org/how-financial-companies-got-into-the-payday-loan-business/ Sun, 13 Mar 2022 07:40:26 +0000 https://acamet.org/how-financial-companies-got-into-the-payday-loan-business/ How financial companies got into the payday loan business

Within the Obama administration, the Bureau of Consumer Economic Security has worked to contain abusive payday financing, certainly one of the other strategies, forcing lenders to ensure that some borrowers find how to get their money back. The new Trump administration, under the meanwhile leadership of CFPB director Mick Mulvaney, wants to roll back the people laws and provide payday lenders, which since the market has given a lot of currency, so you can Mulvaney when he’s a great congressman, no more room to run. A prominent reputational signal offered by the CFPB to govern payday loans is significantly lower than the feedback, and Mulvaney’s CFPB even offers a decrease in cases the new agency has pursued against payday lenders in the past.

Payday loan providers have taken the time to find and are already adapting their business to help you avoid scrutiny. At the same time, small-dollar, high-concentration lending continues to shift for other elements of the newer financial community, in addition to old-school financial institutions. Financial institutions do not really come into contact with the “payday loan” fund – preferring brands like “Easy Financing” – but the problems, also the significant costs therefore the possibility of achieving a crippling journey on personal debt, are in fact essentially comparable.

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Cash advance try quick cash, so called because they are supposed to be reduced each time this new debtor brings in the daughter’s second paycheck. The eye costs of these finances are significant, running at 400% or more. (For comparison, a borrower pays from the 5 % call on a prime mortgage today, and you can between fifteen and you can 20% on a credit card.) Payday loan providers often cluster when looking at areas where citizens have a disproportionate budget or people of color, tackling finance insecurity and those getting conventional finance and you will have unavailable or reduced financial characteristics.

Not only are these high rates producing the new finance worth having loan providers and destroying individuals. Much of the funds that payday loan providers derive comes from small-society storytelling activity among borrowers who take out a loan once the loan immediately after the mortgage, entering the so-called “turn” . As far as the CFPB is concerned, more than 75% of mortgage costs come from people who use ten or more financings per year. These types of people rack up higher fees to definitely outgrow the business work provided with the loans and remain trapped in a personal debt routine.

This is very big money the public is talking about: Before the Obama administration tried to better manage the new world, payday lenders generated some $9.5 million a year. You are in total following about $5 billion today, before the legislation of this new Obama team is completely outdated. At the same time, many states have also taken positive steps in modern times to deal with payday loans. (Newer funds are also blocked outright in some states.)

For one thing, the old payday lenders have revamped their products, offering funds that are paid out payments — instead of the old cash advance which will be immediately reduced — but still bring high rates. Revenue from this type of funding increased by more than $2 million between 2012 and May 2016. The CFPB’s new bylaws do not guarantee funding established by payment.

“They claim that this financing varies, is safe, is a little more reasonable, when in reality they all carry the same markers out of predatory finance,” explained Diane Standaert, director of the unconditional plan at the In control center. Credit. . These indicators are its high costs, the art of lenders accessing borrowers’ bank accounts, and they are arranged to save consumers when looking at the debt cycle. “We come across all these equivalent services having affected payday money,” Standaert told you.

At the same time, big finance companies are launching so you can test small-dollar short-title funds. US Financial is the base to deploy fast payday loan including product for its consumers, financing it around $1100 short id, which have interest levels you can go up to 70% and more. (Think $12 for $15 for the cost of every $100 lent.)

Previously, large U.S. creditors were indeed significantly discouraged from engaging in low-cost, high-attention financing. When many major US financial institutions, as well as Wells Fargo and you’ll be 5th 3rd, rolled out short title loan products just before 2013, these were abandoned by any office of the comptroller of money, and that regulates the federal banks. “[These] The situations show many properties that have old cash advances, as well as higher fees, short spending periods, and insufficient focus on repayment capacity. As a result, these things normally trap users during the cycle of the most expensive loans they are unable to pay,” the new OCC said at the time.

How financial institutions slipped into payday loan providers

For the , however, the new OCC – now under the auspices of your Trump administration – reversed that decision. When you watch the , after that, he seriously advised national banks to access this new fast-tag credit team, arguing that it was much nicer to have banks to compete with almost every other lending provider short term. “Personally, I accept that the banks also have a less dangerous, healthy, therefore much more economically efficient style for you,” said the spirit of OCC.

Although this is not the case, in a page to several of Washington’s financial organizations, a large coalition of user and civil rights advocacy teams warned against the change, arguing that “payday loans financials are the highest rate bond barriers, identical to payday loans at low finance companies’. Although the regards to these financings are certainly much better than those of the timeless payday lenders, this does not guarantee that they are as well as fair possibilities.

For every current survey, more than fifty percent of millennials have had the opportunity to have fun with a quick payday loan, while 13 percent have used one. This amount is reasonable in a scene where the costs of traditional banking institutions are rising and more and more workers are being pushed into very titled “gig discounts” or other choice work arrangements that don’t give you a good bi -each. agenda of the week. A simple infusion of cash to blow up a statement or else a bundle of urgent bills is going to be appealing even with all the drawbacks of the payday loan.

Payday lenders seem well aware of your own state of regulatory flow in which it finds itself; he earned more than $3 billion in political donations ahead of the 2018 midterm elections, by far the most in 12 weak presidency months, according to the Heart to Have Receptive Government.

Which is real money, but it’s not a place for borrowers to heal if payday credit keeps happening the same way. In fact, a 2016 study found that in-country consumers instead of payday loans reduced costs by $2.0 million per year. Which is dos.dos billions of reasons to ensure that small lenders, large and small, are unable to return to business as usual.


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HDFC Bank share price | stocks to buy: Accumulate HDFC Bank; Indian Hotels, PVR, Trent Good Buys Now: Sandip Sabharwal https://acamet.org/hdfc-bank-share-price-stocks-to-buy-accumulate-hdfc-bank-indian-hotels-pvr-trent-good-buys-now-sandip-sabharwal/ Thu, 10 Mar 2022 06:13:00 +0000 https://acamet.org/hdfc-bank-share-price-stocks-to-buy-accumulate-hdfc-bank-indian-hotels-pvr-trent-good-buys-now-sandip-sabharwal/ “National election results will create very short-term volatility and that is not expected to happen as expectations seem largely well set,” said Sandip Sabharwal of asksandipsabharwal.com.

As we play for a massive recovery in line with global signals, are national elections factored in? Will the market even react if it plays as the exit polls indicated?
Historically, state election results had little impact on markets beyond a day or two. I think the impact of these results will not be much. So even if it had gone the other way, the impact would not have been very significant. There are much bigger global factors at play today and macroeconomic factors related to inflation, interest rates, etc., and it is these elements that will determine valuations.

The national election results will create very short-term volatility and this is unlikely to happen as expectations seem largely well set.

What happens now? Do we forget what happened in the past 15 days? Did we make a sustainable background? Can we start buying in this short pressure?
This is clearly a short squeeze and what happened is that previously there was a short squeeze that played out in the commodity markets. Now that commodities have moved to the other side, in the short term, very bearish positions could be liquidated. But the challenge is to assess whether, from a macroeconomic point of view and in terms of revenue growth, we are on the way to a return to normal like a few months ago. It seems unlikely.

Brokerages have already started to scale back earnings expectations in many sectors. I just read reports on consumer goods, automotive, etc. Crude rose to $130. Nobody really bought rough at $130. Today it’s $110-112. So that volatility will play out, but over $100 is still high and most commodities are still high.

Look at coal, metals, steel, etc. These challenges will not disappear very quickly. So it will be good if the markets stabilize, settle for a while and absorb this news. Otherwise, these volatile up and down swings will be difficult for many investors.

What would you recommend doing with HDFC Bank at current levels?
I believe that HDFC Bank’s premium over all other private sector banks as well as major PSU banks like SBI has fallen to almost unheard of levels. I think there is value at this price. As the stock has fallen to the Rs 1300 or Rs 1350-1360 level, I don’t think long-term investors will risk much by hoarding it at current prices. I would say they are hoarding so they can buy maybe half now and wait to see if the markets give another leg down which based on macro factors is a possibility over the next few weeks. The downside of HDFC Bank in my opinion is quite limited because usually even if the cycle of interest rate hikes starts etc. HDFC Bank holds up against it very well compared to most other banks especially PSU banks .

Should we buy Indian Hotels, PVR, Trent after the recent fall they suffered?
I would agree with that. The unlock theme is going to be very strong. There were two waves during this exercise; First it started with Delta, then came Omicron. Despite this, many of these companies have been very successful. These businesses can actually withstand increases in input prices better than most other businesses that were operating normally. Unlock themes will continue to work just fine. There are choices ranging from multiplexes to hotels to catering businesses. All these themes should do very well in the next two or three years.

Is the best of metallic gains behind us? For those who own metals stocks, there was a 5-7% rise and a 20% drop. Is the risk-reward ratio stacked that way?
Yes, the risk-reward is high for metal stock companies as it is now believed that due to the type of commodity price spikes inflationary pressures are possible leading to higher interest rates etc. . Eventually, central bank actions that follow once the Ukraine question ends could lead to a recession two or three quarters later.

So in this scenario playing metals might not make sense. Now, from the perspective of the user industries as well, the challenge now is that everyone is trying to say it’s worse in terms of input costs and now things will get better.

Let’s play on this theme but the pricing pressures for these companies have not abated per se. And now many companies, from everything I’ve interacted with, are saying that we’re not going to accept any more immediate price increases, even if we have to cut our margins because consumers just can’t absorb this type of price increases. So that’s the challenge. There may be some moderation in input prices, but this will not be fully passed on to consumers. Margin compression is unlikely to disappear for at least the next two or three quarters.

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Brief interest in the decline – Traders Magazine https://acamet.org/brief-interest-in-the-decline-traders-magazine/ Mon, 07 Mar 2022 05:30:00 +0000 https://acamet.org/brief-interest-in-the-decline-traders-magazine/

By Phil Mackintosh, Chief Economist, Nasdaq

Stock activity even in January 2021 shed light on short selling, spurring an SEC report and new proposals for rule changes from the SEC and FINRA.

But what’s interesting when we look at the data is that short-term interest was actually down long before the MEME stock squeeze happened.

What is the difference between short selling and short interest?

Short selling occurs when a trader sells a stock that he does not already own. This is done by borrowing shares of those shares and (effectively) selling the borrowed shares in the market. When the short seller closes his position, he buys back the stock. Shares received in settlement are returned to the stock lender and loan collateral is returned to the short seller.

Short interest represents the total amount of shares sold short. Regulators require total short shares held in each security to be disclosed twice a month. Since not all companies are the same size, just looking at total shares doesn’t make for good comparisons. Instead, we typically compare short interest ratios which view shorts as a percentage of outstanding float (short float) or average daily liquidity (days to hedge).

Today we look at short-term interest as a percentage of shares outstanding (short-term float) over time.

Declining short interest

Over the past decade, median levels of short-term interest have been relatively constant. For example, typical (median) short interest on S&P 500 stocks has ranged from 1.6% to 2.9% (blue line in Chart 1).

Despite this narrow range, short-term interest ratios peaked in March 2016 for all enterprise size groups and have since generally declined. Interestingly, short-term interest in the S&P 500 fell the fastest right after the COVID-19 lockdowns, falling to around 1.6% in 2020, roughly in line with their current level.

Chart 1: Short-term interest has generally declined since 2016

Some of the short interest in S&P 500 stocks is needed to maintain arbitrage. S&P 500 stocks are the most liquid ETF in the United States, along with futures, which trade even more than the entire stock market with significant open interest. There are also liquid options markets on the S&P 500 index as well as swaps. A certain amount of stock shorting is necessary only to cover arbitrage positions against these index products.

Given this, it is interesting to note that typical short interest for large-cap stocks is about half of the normal short-interest levels for mid- and small-cap stocks throughout the period. Short-term interest on small and mid caps also remains above record lows for the Chart 1 period.

What about the best-selling stocks?

Of course, stock trading even in January 2021 was, at least initially, focused on a few very high short-term stocks. GME initially had a short interest rate of almost 100%, although as we explained, that’s not as short as it looks.

In Chart 2, we focus on the average short interest of the top 10 shorted stocks in each group. This shows a dramatic drop in the top shorted stocks in January 2021, likely impacted by the meme stock squeeze. For example, short-term interest in mid-cap stocks, which includes the majority of meme stocks, fell from 60% to 25% in just a few weeks.

Chart 2: Average short interest for the 10 best-selling stocks (in each group)

Average of the 10 largest short floats

It is also interesting to compare the left axis on the two graphs. Top-selling stocks have more of their market capitalization held short than the typical level for all stocks. For example, the best-selling S&P 500 stocks now have an average short interest of 11% of shares outstanding, compared to 1.6% for the median stock (in Chart 1). It also suggests that short sellers are primarily focused on just a few stocks.

Regulators take action

As markets have sold off due to COVID, several countries have banned short selling of certain stocks, despite research that consistently shows that short selling bans are bad for the market – spreads widen and liquidity decreases. Sometimes the inability to hedge makes the market sell more than when short selling is permitted. At the time, the US resisted, with former SEC Chairman Jay Clayton saying, “We shouldn’t ban short selling; you need to be able to be on the short side of the market in order to facilitate trading in the regular market.

However, the same equity trading in January 2021 has refocused regulators – particularly on stocks with high short yields. Since then, regulators have advanced many new investigations and proposals:

  • the DOJ East would have investigated professional investorslooking for signs that some companies might be staging stock declines or engaging in insider trading.
  • The Financial Sector Regulatory Authority (FINRA) offered more frequent reports to the public of short data of interest that it collects. FINRA suggests moving Rule 4560 from the current biweekly to weekly or daily, as well as shortening the timeframe for submitting and publishing short data of interest to the public.
  • FINRA has also proposed additional collection account-level data, including synthetic shorts (those that use derivatives), loan obligations resulting from stock borrowing, and daily non-delivery positions. However, this should be for their own monitoring of the SHO regulation, not public
  • the SEC GME Report concluded that “improved reporting of short selling would allow regulators to better track” the interplay of short selling and price hedging.
  • The SEC proposed a shorter settlement cycle. By modifying Rule 15c6-1, the settlement period would change to T+1. This would reduce non-delivery positions from a short sale closing date to T+2.
  • In 2021, the SEC proposed what is essentially a “strip” for stock lending. Known as the Exchange Act’s 10c-1 rule, it would require all loans of a security to be reported within 15 minutes to FINRA – including details such as issuer, symbol, time, location, amount loaned, securities lending fees, other fees, collateral used, and type of borrower entity. Information on securities available and on loan would ultimately be required; it would be aggregated and made public the next business day by FINRA.
  • the SECOND also voted to amend the CAT plan to require CAT reporting firms to report “buy to hedge” information to CAT, including indicating where shorts were a bona fide market exception under of the SHO regulation.
  • Last week, the SEC proposed a new short position disclosure rule. Proposed Rule 13f-2 and corresponding Form SHO would require institutional investors to report their short positions to the SEC on a monthly basis (14 days after the end of each month) if their gross position was greater than $10 million. The SEC would then make available to the public for each individual title.

The SEC’s latest proposal is somewhat similar to what is happening in Europe, where hedge funds are required to report short positions once they sell more than 0.1% of outstanding shares, compared to 0.2 % in January 2022, where the data is established. public when the shorts exceed 0.5% of the outstanding shares.

Interestingly, this is still not consistent with how US investors report long positions, which are mostly reported quarterly, by account, on Form 13F. Although the SEC at also proposed expanding US long position reporting to “examine” swap positions, which is similar to FINRA’s proposal to include synthetic short positions in their data collection.

Shedding new light on short sellers

Although research suggests that short sellers provide significant price discovery and liquidity to the market, recent trading activity has prompted FINRA and the SEC to offer more granular and frequent short sale reports.

These rules are not yet final, but the fact that they have been proposed marks a change from historical rules on short selling – even as total levels of short selling are on the decline.

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ELEVATE CREDIT, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-K) https://acamet.org/elevate-credit-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-k/ Fri, 25 Feb 2022 18:34:05 +0000 https://acamet.org/elevate-credit-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-k/
The following Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") is intended to help the reader understand our
business, our results of operations and our financial condition. The MD&A is
provided as a supplement to, and should be read in conjunction with our
consolidated financial statements and the related notes and other financial
information included elsewhere in this Annual Report on Form 10-K.

Some of the information contained in this discussion and analysis, including
information with respect to our plans and strategy for our business, includes
forward-looking statements that involve risks and uncertainties. You should
review the "Risk Factors" and "Note About Forward-Looking Statements" sections
of this Annual Report on Form 10-K for a discussion of important factors that
could cause actual results to differ materially from the results described in or
implied by the forward-looking statements contained in the following discussion
and analysis. We generally refer to loans, customers and other information and
data associated with each of our brands (Rise, Elastic and Today Card) as
Elevate's loans, customers, information and data, irrespective of whether
Elevate directly originates the credit to the customer or whether such credit is
originated by a third party.

OVERVIEW

We provide online credit solutions to consumers in the US who are not
well-served by traditional bank products and who are looking for better options
than payday loans, title loans, pawn and storefront installment loans. Non-prime
consumers now represent a larger market than prime consumers but are risky to
underwrite and serve with traditional approaches. We're succeeding at it - and
doing it responsibly - with best-in-class advanced technology and proprietary
risk analytics honed by serving more than 2.7 million customers with $9.8
billion in credit. Our current online credit products, Rise, Elastic and Today
Card, reflect our mission to provide customers with access to competitively
priced credit and services while helping them build a brighter financial future
with credit building and financial wellness features. We call this mission "Good
Today, Better Tomorrow."

Prior to June 29, 2020, we provided services in the United Kingdom ("UK")
through our wholly-owned subsidiary, Elevate Credit International Limited
("ECIL") under the brand name 'Sunny.' During the year ended December 31, 2018,
ECIL began to receive an increased number of customer complaints initiated by
claims management companies ("CMCs") related to the affordability assessment of
certain loans. The CMCs' campaign against the high cost lending industry
increased significantly during the third and fourth quarters of 2018 and
continued through 2019 and into the first half of 2020, resulting in a
significant increase in affordability claims against all companies in the
industry over this period. The Financial Conduct Authority ("FCA"), a regulator
in the UK financial services industry, began regulating the CMCs in April 2019
in order to ensure that the methods used by the CMCs are in the best interests
of the consumer and the industry. Separately, the FCA asked all industry
participants to review their lending practices to ensure that such companies are
using an appropriate affordability and creditworthiness analysis. However, there
continued to be a lack of clarity within the regulatory environment in the UK.
This lack of clarity, coupled with the ongoing impact of the Coronavirus Disease
2019 ("COVID-19") on the UK market for Sunny, led the ECIL board of directors to
place ECIL into administration under the UK Insolvency Act 1986 and appoint
insolvency practitioners from KPMG LLP to take control and management of the UK
business. As a result, we have deconsolidated ECIL and are presenting its
results as discontinued operations.

We earn revenues on the Rise installment loans, on the Rise and Elastic lines of
credit and on the Today Card credit card product. Our revenue primarily consists
of finance charges and line of credit fees. Finance charges are driven by our
average loan balances outstanding and by the average annual percentage rate
("APR") associated with those outstanding loan balances. We calculate our
average loan balances by taking a simple daily average of the ending loan
balances outstanding for each period. Line of credit fees are recognized when
they are assessed and recorded to revenue over the life of the loan. We present
certain key metrics and other information on a "combined" basis to reflect
information related to loans originated by us and by our bank partners that
license our brands, Republic Bank, FinWise Bank and Capital Community Bank
("CCB"), as well as loans originated by third-party lenders pursuant to CSO
programs, which loans originated through CSO programs are not recorded on our
balance sheets in accordance with US GAAP. See "-Key Financial and Operating
Metrics" and "-Non-GAAP Financial Measures."

We use our working capital and our credit facility with Victory Park Management,
LLC ("VPC" and the "VPC Facility") to fund the loans we directly make to our
Rise customers. The VPC Facility has a maximum total borrowing amount available
of $200 million at December 31, 2021. See "-Liquidity and Capital Resources-Debt
facilities."
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We also license our Rise installment loan brand to two banks. FinWise Bank
originates Rise installment loans in 17 states. This bank initially provides all
of the funding, retains 4% of the balances of all of the loans originated and
sells the remaining 96% loan participation in those Rise installment loans to a
third-party SPV, EF SPV, Ltd. ("EF SPV"). These loan participation purchases are
funded through a separate financing facility (the "EF SPV Facility"), and
through cash flows from operations generated by EF SPV. The EF SPV Facility has
a maximum total borrowing amount available of $250 million. We do not own EF
SPV, but we have a credit default protection agreement with EF SPV whereby we
provide credit protection to the investors in EF SPV against Rise loan losses in
return for a credit premium. Elevate is required to consolidate EF SPV as a
variable interest entity ("VIE") under US GAAP and the consolidated financial
statements include revenue, losses and loans receivable related to the 96% of
the Rise installment loans originated by FinWise Bank and sold to EF SPV.

Beginning in the third quarter of 2020, we also license our Rise installment
loan brand to an additional bank, CCB, which originates Rise installment loans
in three different states than FinWise Bank. Similar to the relationship with
FinWise Bank, CCB initially provides all of the funding, retains 5% of the
balances of all of the loans originated and sells the remaining 95% loan
participation in those Rise installment loans to a third-party SPV, EC SPV, Ltd.
("EC SPV"). These loan participation purchases are funded through a separate
financing facility (the "EC SPV Facility"), and through cash flows from
operations generated by EC SPV. The EC SPV Facility has a maximum total
borrowing amount available of $100 million. We do not own EC SPV, but we have a
credit default protection agreement with EC SPV whereby we provide credit
protection to the investors in EC SPV against Rise loan losses in return for a
credit premium. Elevate is required to consolidate EC SPV as a VIE under US GAAP
and the consolidated financial statements include revenue, losses and loans
receivable related to the 95% of the Rise installment loans originated by CCB
and sold to EC SPV.

The Elastic line of credit product is originated by a third-party lender,
Republic Bank, which initially provides all of the funding for that product.
Republic Bank retains 10% of the balances of all loans originated and sells a
90% loan participation in the Elastic lines of credit. An SPV structure was
implemented such that the loan participations are sold by Republic Bank to
Elastic SPV, Ltd. ("Elastic SPV") and Elastic SPV receives its funding from VPC
in a separate financing facility (the "ESPV Facility"), which was finalized on
July 13, 2015. We do not own Elastic SPV but we have a credit default protection
agreement with Elastic SPV whereby we provide credit protection to the investors
in Elastic SPV against Elastic loan losses in return for a credit premium. Per
the terms of this agreement, under US GAAP, we are the primary beneficiary of
Elastic SPV and are required to consolidate the financial results of Elastic SPV
as a VIE in our consolidated financial results. The ESPV Facility has a maximum
total borrowing amount of $350 million as of December 31, 2021.

Today Card is a credit card product designed to meet the spending needs of
non-prime consumers by offering a prime customer experience. Today Card is
originated by CCB under the licensed MasterCard brand, and a 95% participation
interest in the credit card receivable is sold to us. These credit card
receivable purchases are funded through a separate financing facility (the "TSPV
Facility"), and through cash flows from operations generated by the Today Card
portfolio. The TSPV Facility has a maximum commitment amount of $50 million,
which may be increased up to $100 million. As the lowest APR product in our
portfolio, Today Card allows us to serve a broader spectrum of non-prime
Americans. The Today Card experienced significant growth in its portfolio size
despite the pandemic due to the success of our direct mail campaigns, the
primary marketing channel for acquiring new Today Card customers. We are
following a specific growth plan to grow the product while monitoring customer
responses and credit quality. Customer response to the Today Card is very
strong, as we continue to see extremely high response rates, high customer
engagement, and positive customer satisfaction scores.

Our management evaluates our financial performance and our future strategic objectives using key indicators based primarily on the following three themes:


•Revenue growth.   Key metrics related to revenue growth that we monitor by
product include the ending and average combined loan balances outstanding, the
effective APR of our product loan portfolios, the total dollar value of loans
originated, the number of new customer loans made, the ending number of customer
loans outstanding and the related customer acquisition costs ("CAC") associated
with each new customer loan made. We include CAC as a key metric when analyzing
revenue growth (rather than as a key metric within margin expansion).

•Stable credit quality.   Since the time they were managing our legacy US
products, our management team has maintained stable credit quality across the
loan portfolio they were managing. Additionally, in the periods covered in this
Management's Discussion and Analysis of Financial Condition and Results of
Operations, we have maintained our strong credit quality. The credit quality
metrics we monitor include net charge-offs as a percentage of revenues, the
combined loan loss reserve as a percentage of outstanding combined loans, total
provision for loan losses as a percentage of revenues and the percentage of past
due combined loans receivable - principal.
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•Margin expansion.   We aim to manage our business to achieve a long-term
operating margin of 20%. In periods of significant loan portfolio growth, our
margins may become compressed due to the upfront costs associated with marketing
and credit provisioning expense associated with this growth. As we continue to
rebuild and scale our portfolio from the impacts of COVID-19, we anticipate that
our direct marketing costs primarily associated with new customer acquisitions
will be approximately 10% of revenues and our operating expenses will decline to
20% of revenues. While our operating margins may exceed 20% in certain years,
such as in 2020 when we incurred lower levels of direct marketing expense and
materially lower credit losses due to a lack of customer demand for loans
resulting from the effects of COVID-19, we do not expect our operating margin to
increase beyond that level over the long-term, as we intend to pass on any
improvements over our targeted margins to our customers in the form of lower
APRs. We believe this is a critical component of our responsible lending
platform and over time will also help us continue to attract new customers and
retain existing customers.

Impact of COVID-19

The COVID-19 pandemic and related restrictive measures taken by governments,
businesses and individuals caused unprecedented uncertainty, volatility and
disruption in financial markets and in governmental, commercial and consumer
activity in the United States, including the markets that we serve. As the
restrictive measures have been eased in certain geographic locations, the U.S.
economy has begun to recover, and with the availability and distribution of
COVID-19 vaccines, we anticipate continued improvements in commercial and
consumer activity and the U.S. economy. While positive signs exist, we recognize
that certain of our customers are experiencing varying degrees of financial
distress, which may continue, especially if new COVID-19 variant infections
increase and new economic restrictions are mandated.

In 2020, we experienced a significant decline in the loan portfolio due to a
lack of customer demand for loans resulting from the effects of COVID-19 and
related government stimulus programs. These impacts resulted in a lower level of
direct marketing expense and materially lower credit losses during 2020 and
continuing into early 2021. Beginning in the second quarter of 2021, we
experienced a return of demand for the loan products that we, and the bank
originators we support, offer, resulting in significant growth in the loan
portfolio from that point. This significant loan portfolio growth is resulting
in compressed margins in 2021 due to the upfront costs associated with marketing
and credit provisioning expense related to growing and "rebuilding" the loan
portfolio from the impacts of COVID-19. We continue to target loan portfolio
originations within our target CACs of $250-$300 and credit quality metrics of
45-55% of revenue which, when combined with our expectation of continuing
customer loan demand for our portfolio products, we believe will allow us to
return to our historical performance levels prior to COVID-19 after initially
resulting in earnings compression.

Both we and the bank originators are closely monitoring the key credit quality
indicators such as payment defaults, continued payment deferrals, and line of
credit utilization. While we initially anticipated that the COVID-19 pandemic
would have a negative impact on our credit quality, instead the monetary
stimulus programs provided by the US government to our customer base have
generally allowed customers to continue making payments on their loans. At the
beginning of the pandemic, we expected an increase in net charge-offs as
compared to prior periods but experienced historically low net charge-offs as a
percentage of revenue in the second half of 2020 and early 2021. With the
increased volume of new customer loans expected to be originated as we grow our
loan portfolio back to our pre-pandemic size and the ending of government
assistance, we expect an initial increase in net charge-offs in excess of our
targeted range with a return of net charge-offs to our targeted range of 45-55%
of revenue as the portfolio becomes more seasoned with a balance of new and
returning customers. Further, we believe that the allowance for loan losses is
adequate to absorb the losses inherent in the portfolio as of December 31, 2021.

We have implemented a hybrid remote environment where employees may choose to
work primarily from the office or from home and gather collectively in the
office on a limited basis. We have sought to ensure our employees feel secure in
their jobs, have flexibility in their work location and have the resources they
need to stay safe and healthy. As a 100% online lending solutions provider, our
technology and underwriting platform has continued to serve our customers and
the bank originators that we support without any material interruption in
services.

COVID-19 has had a significant adverse impact on our business, and while
uncertainty still exists, we believe we are well-positioned to operate
effectively through the present economic environment and expect continued loan
portfolio growth and strong credit quality into the next year. We will continue
assessing our minimum cash and liquidity requirement, monitoring our debt
covenant compliance and implementing measures to ensure that our cash and
liquidity position is maintained through the current economic cycle.

KEY FINANCIAL AND OPERATIONAL INDICATORS


As discussed above, we regularly monitor a number of metrics in order to measure
our current performance and project our future performance. These metrics aid us
in developing and refining our growth strategies and in making strategic
decisions.
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Certain of our metrics are non-GAAP financial measures. We believe that such
metrics are useful in period-to-period comparisons of our core business.
However, non-GAAP financial measures are not an alternative to any measure of
financial performance calculated and presented in accordance with US GAAP. See
"-Non-GAAP Financial Measures" for a reconciliation of our non-GAAP measures to
US GAAP.

Revenues

                                                                           

As of and for the years ended the 31st of DecemberRevenues (in thousands of dollars, unless otherwise indicated)

                             2021                  2020                 2019
Revenues                                                                     $      416,637           $  465,346          $   638,873
Period-over-period revenue decrease                                                     (10)  %              (27) %                (4) %
Ending combined loans receivable - principal(1)                                     558,759              399,822              607,149
Average combined loans receivable - principal(1)(2)                                 432,836              453,983              561,334
Total combined loans originated - principal                                         940,510              628,660            1,102,766
Average customer loan balance (in dollars)(3)                                         1,992                1,861                2,011
Number of new customer loans                                                        168,339               68,245              159,725
Ending number of combined loans outstanding                                         280,506              214,848              301,959
Customer acquisition costs (in dollars)                                      $          247           $      297          $       241
Effective APR of combined loan portfolio                                                 95   %              102  %               113  %


_________

(1)Combined loans receivable is defined as loans owned by us and consolidated
VIEs plus loans originated and owned by third-party lenders pursuant to our CSO
programs. See "-Non-GAAP Financial Measures" for more information and for a
reconciliation of Combined loans receivable to Loans receivable, net, the most
directly comparable financial measure calculated in accordance with US GAAP.
(2)Average combined loans receivable - principal is calculated using an average
of daily Combined loans receivable - principal balances.
(3)Average customer loan balance is an average of all three products and is
calculated for each product by dividing the ending Combined loans receivable -
principal by the number of loans outstanding at period end.

Revenues. Our revenue is made up of Rise finance fees, Rise CSO fees (which are fees we receive from customers who obtain a loan through the CSO program for credit services, including loan guarantee, which we provide), revenue earned on the Elastic line of credit, and finance charges and fee revenue from the Today Card credit card product. See ”Components of Our Results of Operations – Revenues”.


Ending and average combined loans receivable - principal.   We calculate the
average combined loans receivable - principal by taking a simple daily average
of the ending combined loans receivable - principal for each period. Key metrics
that drive the ending and average combined loans receivable - principal include
the amount of loans originated in a period and the average customer loan
balance. All loan balance metrics include only the 90% participation in the
related Elastic line of credit advances (we exclude the 10% held by Republic
Bank), the 96% participation in FinWise Bank originated Rise installment loans
and the 95% participation in CCB originated Rise installment loans and the 95%
participation in the CCB originated Today Card credit card receivables, but
include the full loan balances on CSO loans, which are not presented on our
Consolidated Balance Sheets.

Total combined loans originated - principal.   The amount of loans originated in
a period is driven primarily by loans to new customers as well as new loans to
prior customers, including refinancing of existing loans to customers in good
standing.

Average customer loan balance and effective APR of combined loan portfolio.
The average loan amount and its related APR are based on the product and the
underlying credit quality of the customer. Generally, better credit quality
customers are offered higher loan amounts at lower APRs. Additionally, new
customers have more potential risk of loss than prior or existing customers due
to lack of payment history and the potential for fraud. As a result, newer
customers typically will have lower loan amounts and higher APRs to compensate
for that additional risk of loss. The effective APR is calculated based on the
actual amount of finance charges generated from a customer loan divided by the
average outstanding balance for the loan and can be lower than the stated APR on
the loan due to waived finance charges and other reasons. For example, a Rise
customer may receive a $2,000 installment loan with a term of 24 months and a
stated rate of 130%. In this example, the customer's monthly installment loan
payment would be $236.72. As the customer can prepay the loan balance at any
time with no additional fees or early payment penalty, the customer pays the
loan in full in month eight. The customer's loan earns interest of $1,657.39
over the eight-month period and has an average outstanding balance of $1,912.37.
The effective APR for this loan is 130% over the eight-month period calculated
as follows:

($1,657.39 interest earned / $1,912.37 average outstanding balance) x 12 months per year = 130%

8 months

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In addition, as an example for Elastic, if a customer makes a $2,500 draw on the
customer's line of credit and this draw required bi-weekly minimum payments of
5% (equivalent to 20 bi-weekly payments), and if all minimum payments are made,
the draw would earn finance charges of $1,125. The effective APR for the line of
credit in this example is 107% over the payment period and is calculated as
follows:

($1,125.00 fees earned / $1,369.05 average unpaid balance) x 26 fortnight periods per year = 107%

20 payments


The actual total revenue we realize on a loan portfolio is also impacted by the
amount of prepayments and charged-off customer loans in the portfolio. For a
single loan, on average, we typically expect to realize approximately 60% of the
revenues that we would otherwise realize if the loan were to fully amortize at
the stated APR. From the Rise example above, if we waived $350 of interest for
this customer, the effective APR for this loan would decrease to 103%. From the
Elastic example above, if we waived $125 of fees for this customer, the
effective APR for this loan would decrease to 95%.

Number of new customer loans.   We define a new customer loan as the first loan
or advance made to a customer for each of our products (so a customer receiving
a Rise installment loan and then at a later date taking their first cash advance
on an Elastic line of credit would be counted twice). The number of new customer
loans is subject to seasonal fluctuations. New customer acquisition is typically
slowest during the first six months of each calendar year, primarily in the
first quarter, compared to the latter half of the year, as our existing and
prospective customers usually receive tax refunds during this period and, thus,
have less of a need for loans from us. Further, many customers will use their
tax refunds to prepay all or a portion of their loan balance during this period,
so our overall loan portfolio typically decreases during the first quarter of
the calendar year. Overall loan portfolio growth and the number of new customer
loans tends to accelerate during the summer months (typically June and July), at
the beginning of the school year (typically late August to early September) and
during the winter holidays (typically late November to early December).

Customer acquisition costs.   A key expense metric we monitor related to loan
growth is our CAC. This metric is the amount of direct marketing costs incurred
during a period divided by the number of new customer loans originated during
that same period. New loans to former customers are not included in our
calculation of CAC (except to the extent they receive a loan through a different
product) as we believe we incur no material direct marketing costs to make
additional loans to a prior customer through the same product.

The following tables summarize the evolution of customer loans by product for the years ended December 31, 20212020 and 2019.

                                                              Year Ended December 31, 2021
                                              Rise                  Elastic                 Today
                                          (Installment             (Lines of
                                             Loans)                 Credit)             (Credit Card)                          Total
Beginning number of combined
loans outstanding                              103,940               100,105                  10,803                           214,848
New customer loans originated                  103,426                37,937                  26,976                           168,339
Former customer loans originated                64,896                   525                       -                            65,421
Attrition                                     (137,848)              (27,939)                 (2,315)                         (168,102)
Ending number of combined loans
outstanding                                    134,414               110,628                  35,464                           280,506
Customer acquisition cost               $          287          $        272          $           57                      $        247
Average customer loan balance           $        2,310          $      1,805          $        1,370                      $      1,992


                                                              Year Ended December 31, 2020
                                              Rise                  Elastic                 Today
                                          (Installment             (Lines of
                                             Loans)                 Credit)             (Credit Card)                          Total
Beginning number of combined
loans outstanding                              152,435               146,317                   3,207                           301,959
New customer loans originated                   46,857                13,302                   8,086                            68,245
Former customer loans originated                56,427                   348                       -                            56,775
Attrition                                     (151,779)              (59,862)                   (490)                         (212,131)
Ending number of combined loans
outstanding                                    103,940               100,105                  10,803                           214,848
Customer acquisition cost               $          324          $        351          $           52                      $        297
Average customer loan balance           $        2,197          $      1,572          $        1,306                      $      1,861


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                                                              Year Ended December 31, 2019
                                              Rise                  Elastic                 Today
                                          (Installment             (Lines of
                                             Loans)                 Credit)             (Credit Card)                          Total
Beginning number of combined
loans outstanding                              142,758               165,950                     447                           309,155
New customer loans originated                  108,813                47,677                   3,235                           159,725
Former customer loans originated                80,624                    62                       -                            80,686
Attrition                                     (179,760)              (67,372)                   (475)                         (247,607)
Ending number of combined loans
outstanding                                    152,435               146,317                   3,207                           301,959
Customer acquisition cost               $          248          $        240          $           23                      $        241
Average customer loan balance           $        2,297          $      1,727          $        1,368                      $      2,011


Recent trends.   Our revenues for the year ended December 31, 2021 totaled
$416.6 million, a decrease of 10% versus the prior year period. Our revenues for
the year ended December 31, 2020 totaled $465.3 million, a decrease of 27%
versus the prior year period. Both the Rise and Elastic products experienced a
year-over-year decline in revenues of 12% and 11%, respectively, which were
attributable to reductions in year-to-date average loan balances due to the
economic crisis created by the COVID-19 pandemic beginning in March 2020, which
resulted in substantial government assistance to our potential customers that
lowered demand for our products, and a lower Rise effective APR. This decline in
revenue was partially offset by a year-over-year increase in revenues for the
Today Card product, which more than tripled its average principal balance
outstanding year-over year. We believe Today Card balances have increased
despite the impact of COVID-19 due to the nature of the product (credit card
versus installment loan or lines of credit), the lower APR of the product
(effective APR of 31% for the year ended December 31, 2021, compared to Rise at
103% and Elastic at 94%) as customers receiving stimulus payments would be more
apt to pay down more expensive forms of credit, and the added convenience of
having a credit card for online purchases of day-to-day items such as groceries
or clothing (whereas the primary usage of a Rise installment loan or Elastic
line of credit is for emergency financial needs such as a medical deductible or
automobile repair).

We are currently experiencing an increase in new and former customers as demand
for the loan products provided by us and the bank originators began to return
during the second quarter of 2021. This is in contrast to 2020 and early 2021
when the portfolio of loan products experienced significantly decreased loan
demand for both new and former customers due to COVID-19, including the effects
of monetary stimulus provided by the US government reducing demand for loan
products. All three of our products experienced an increase in principal loan
balances in 2021 compared to a year ago. Rise and Elastic principal balances at
December 31, 2021 totaled $310.5 million and $199.7 million, respectively, up
$82.2 million and $42.3 million, respectively, from a year ago. Today Card
principal loan balances at December 31, 2021 totaled $48.6 million, up $34.5
million from a year ago.

Our CAC was lower in the year ended December 31, 2021 at $247 as compared to the
prior year at $297, with the prior year not reflective of our historical CAC due
to the significant reduction in new loan originations due to the COVID-19
pandemic. Our 2021 loan volume is being sourced from all our marketing channels
including direct mail, strategic partners and digital. We've seen a marked
improvement in loan volume from our strategic partners channel where we have
improved our technology and risk capabilities to interface with the strategic
partners via our application programming interface (APIs) that we developed
within our new technology platform, Blueprint™. Blueprint™ will allow us to more
efficiently acquire new customers within our targeted CAC range. We believe our
CAC in future quarters will continue to remain within or below our target range
of $250 to $300 as we continue to optimize the efficiency of our marketing
channels and continue to grow the Today Card which successfully generated new
customers at a sub-$100 CAC.
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Credit quality


                                                                      As of and for the years ended December 31,
Credit quality metrics (dollars in thousands)                        2021                  2020                2019
Net charge-offs(1)                                            $      163,705           $  189,823          $  330,317
Additional provision for loan losses(1)                               22,125              (32,913)             (4,655)
Provision for loan losses                                     $      185,830           $  156,910             325,662

Combined loans receivable past due – principal as a percentage of combined loans receivable – principal(2)

                    10   %                6  %               10  %
Net charge-offs as a percentage of revenues(1)                            39   %               41  %               52  %

Total allowance for loan losses as a percentage of revenue

                                                                  45   %               34  %               51  %
Combined loan loss reserve(3)                                 $       71,204           $   49,079          $   81,992
Combined loan loss reserve as a percentage of combined
loans receivable(3)                                                       12   %               12  %               13  %


_________

(1)Net charge-offs and additional provision for loan losses are not financial
measures prepared in accordance with US GAAP. Net charge-offs include the amount
of principal and accrued interest on loans that are more than 60 days past due
(Rise and Elastic) or 120 days past due (Today Card), or sooner if we receive
notice that the loan will not be collected, such as a bankruptcy notice or
identified fraud, offset by any recoveries. Additional provision for loan losses
is the amount of provision for loan losses needed for a particular period to
adjust the combined loan loss reserve to the appropriate level in accordance
with our underlying loan loss reserve methodology. See "-Non-GAAP Financial
Measures" for more information and for a reconciliation to Provision for loan
losses, the most directly comparable financial measure calculated in accordance
with US GAAP.
(2)Combined loans receivable is defined as loans owned by us and consolidated
VIEs plus loans originated and owned by third-party lenders pursuant to our CSO
programs. See "-Non-GAAP Financial Measures" for more information and for a
reconciliation of Combined loans receivable to Loans receivable, net, the most
directly comparable financial measure calculated in accordance with US GAAP.
(3)Combined loan loss reserve is defined as the loan loss reserve for loans
originated and owned by us plus the loan loss reserve for loans owned by
third-party lenders and guaranteed by us. See "-Non-GAAP Financial Measures" for
more information and for a reconciliation of Combined loan loss reserve to
Allowance for loan losses, the most directly comparable financial measure
calculated in accordance with US GAAP.

Net principal charge-offs as a
percentage of average combined loans              First                                               Third
receivable - principal (1)(2)(3)                 Quarter               Second Quarter                Quarter               Fourth Quarter
2021                                               6%                        5%                        6%                        10%
2020                                               11%                       10%                       4%                        5%
2019                                               13%                       10%                       10%                       12%


(1)Net principal charge-offs is comprised of gross principal charge-offs less
recoveries.
(2)Average combined loans receivable - principal is calculated using an average
of daily Combined loans receivable - principal balances during each quarter.
(3)Combined loans receivable is defined as loans owned by us and consolidated
VIEs plus loans originated and owned by third-party lenders pursuant to our CSO
programs. See "-Non-GAAP Financial Measures" for more information and for a
reconciliation of Combined loans receivable to Loans receivable, net, the most
directly comparable financial measure calculated in accordance with US GAAP.

The above chart depicts the historically low charge-off metrics from the third
quarter of 2020 through the third quarter of 2021, due to COVID-19 pandemic
impacts such as a lack of new customer demand, our implementation of payment
assistance tools, and government stimulus payments received by our customers.
Net principal charge-offs as a percentage of average combined loans
receivable-principal for the fourth quarter of 2021 has returned to the levels
consistent with 2019 due to the volume of new customers being originated as we
rebuild the portfolio from the impacts of the COVID-19 pandemic and return to a
more normalized credit profile.

In reviewing the credit quality of our loan portfolio, we break out our total
provision for loan losses that is presented on our statements of operations
under US GAAP into two separate items-net charge-offs and additional provision
for loan losses. Net charge-offs are indicative of the credit quality of our
underlying portfolio, while additional provision for loan losses is subject to
more fluctuation based on loan portfolio growth, recent credit quality trends
and the effect of normal seasonality on our business. The additional provision
for loan losses is the amount needed to adjust the combined loan loss reserve to
the appropriate amount at the end of each month based on our loan loss reserve
methodology.

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Net charge-offs.  Net charge-offs comprise gross charge-offs offset by
recoveries on prior charge-offs. Gross charge-offs include the amount of
principal and accrued interest on loans that are more than 60 days past due
(Rise and Elastic) or 120 days (Today Card), or sooner if we receive notice that
the loan will not be collected, such as a bankruptcy notice or identified fraud.
Any payments received on loans that have been charged off are recorded as
recoveries and reduce the total amount of gross charge-offs. Recoveries are
typically less than 10% of the amount charged off, and thus, we do not view
recoveries as a key credit quality metric.

Net charge-offs as a percentage of revenues can vary based on several factors,
such as whether or not we experience significant growth or lower the APR of our
products. Additionally, although a more seasoned portfolio will typically result
in lower net charge-offs as a percentage of revenues, we do not intend to drive
down this ratio significantly below our historical ratios and would instead seek
to offer our existing products to a broader new customer base to drive
additional revenues.

Net charge-offs as a percentage of average combined loans receivable-principal
allow us to determine credit quality and evaluate loss experience trends across
our loan portfolio.

Additional provision for loan losses.   Additional provision for loan losses is
the amount of provision for loan losses needed for a particular period to adjust
the combined loan loss reserve to the appropriate level in accordance with our
underlying loan loss reserve methodology.

Additional provision for loan losses relates to an increase in inherent losses
in the loan portfolio as determined by our loan loss reserve methodology. This
increase could be due to a combination of factors such as an increase in the
size of the loan portfolio or a worsening of credit quality or increase in past
due loans. It is also possible for the additional provision for loan losses for
a period to be a negative amount, which would reduce the amount of the combined
loan loss reserve needed (due to a decrease in the loan portfolio or improvement
in credit quality). The amount of additional provision for loan losses is
seasonal in nature, mirroring the seasonality of our new customer acquisition
and overall loan portfolio growth, as discussed above. The combined loan loss
reserve typically decreases during the first quarter or first half of the
calendar year due to a decrease in the loan portfolio from year end. Then, as
the rate of growth for the loan portfolio starts to increase during the second
half of the year, additional provision for loan losses is typically needed to
increase the reserve for future losses associated with the loan growth. Because
of this, our provision for loan losses can vary significantly throughout the
year without a significant change in the credit quality of our portfolio.

The following provides an example of the application of our loan loss reserve
methodology and the break-out of the provision for loan losses between the
portion associated with replenishing the reserve due to net charge-offs and the
amount related to the additional provision for loan losses. If the beginning
combined loan loss reserve were $25 million, and we incurred $10 million of net
charge-offs during the period and the ending combined loan loss reserve needed
to be $30 million according to our loan loss reserve methodology, our total
provision for loan losses would be $15 million, comprising $10 million in net
charge-offs (provision needed to replenish the combined loan loss reserve) plus
$5 million of additional provision related to an increase in future inherent
losses in the loan portfolio identified by our loan loss reserve methodology.

Example (dollars in thousands)
Beginning combined loan loss reserve                         $ 25,000
Less: Net charge-offs                                         (10,000)
Provision for loan losses:
Provision for net charge-offs                    10,000
Additional provision for loan losses              5,000
Total provision for loan losses                                15,000
Ending combined loan loss reserve balance                    $ 30,000



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Loan loss reserve methodology.  Our loan loss reserve methodology is calculated
separately for each product and, in the case of Rise loans originated under the
state lending model (including CSO program loans), is calculated separately
based on the state in which each customer resides to account for varying state
license requirements that affect the amount of the loan offered, repayment terms
and other factors. For each product, loss factors are calculated based on the
delinquency status of customer loan balances: current, 1 to 30 days past due, 31
to 60 days past due or 61-120 past due (for Today Card only). These loss factors
for loans in each delinquency status are based on average historical loss rates
by product (or state) associated with each of these three delinquency
categories. Hence, another key credit quality metric we monitor is the
percentage of past due combined loans receivable - principal, as an increase in
past due loans will cause an increase in our combined loan loss reserve and
related additional provision for loan losses to increase the reserve. For
customers that are not past due, we further stratify these loans into loss rates
by payment number, as a new customer that is about to make a first loan payment
has a significantly higher risk of loss than a customer who has successfully
made ten payments on an existing loan with us. Based on this methodology, during
the past three years we have seen our combined loan loss reserve as a percentage
of combined loans receivable fluctuate between approximately 10% and 14%
depending on the overall mix of new, former and past due customer loans.

Recent trends.   Total loan loss provision for the year ended December 31, 2021
was 45% of revenues, which was within our targeted range of 45% to 55%, compared
to 34% in the prior year period. For the year ended December 31, 2021, net
charge-offs as a percentage of revenues totaled 39%, compared to 41% in the
prior year period. The increase in total loan loss provision as a percentage of
revenues in 2021 was due to the increase in new loan originations beginning in
the second quarter of 2021 and the loan loss provisioning associated with a
growing portfolio. We would expect to have higher charge-offs as a percent of
revenue, as compared to our targeted range, in the first quarter of 2022 due to
the heavier mix of new customer loans in the second half of 2021, which have a
higher loss profile. We expect to return within our targeted range beginning in
the second quarter as the portfolio seasons with a mix of new and returning
customers. While we initially anticipated that the COVID-19 pandemic would have
a negative impact on our credit quality, instead the large quantity of monetary
stimulus provided by the US government to our customer base has generally
allowed customers to continue making payments on their loans, which resulted in
a decrease in net charge-offs as a percentage of revenue compared to last year.
We continue to monitor the portfolio during the economic recovery resulting from
COVID-19 and will adjust our underwriting and credit policies to mitigate any
potential negative impacts as needed. As loan demand continues to return to
pre-pandemic levels and the loan portfolio grows, we expect our total loan loss
provision as a percentage of revenues to be within our targeted range of
approximately 45% to 55% of revenue.

The combined loan loss reserve as a percentage of combined loans receivable
totaled 12%, 12% and 13% as of December 31, 2021, 2020 and 2019, respectively.
The relatively steady loan loss reserve percentage reflects the stable credit
performance of the portfolio, and we would expect the loan loss reserve to
stabilize in the 12-13% range as we manage the portfolio to ensure a consistent
mix of new and returning customers within the portfolio and return the portfolio
to a normalized credit profile. Past due loan balances at December 31, 2021 were
10% of total combined loans receivable - principal, up from 6% from a year ago,
due to the number of new customers originated beginning in the second quarter of
2021, and is consistent with our historical past due percentages prior to the
pandemic. We, and the bank originators we support, are no longer offering
specific COVID-19 payment deferral programs, but continue to offer other payment
flexibility programs if certain qualifications are met. We are continuing to see
that most customers are meeting their scheduled payments once they exit the
payment deferral program. We anticipate the combined loan loss reserve as a
percentage of combined loans receivable, as well as our past due loan balances
as a percentage of total combined loans receivable-principal, will maintain at
their historic norms as we continue to grow our loan portfolio with a consistent
mix of new and returning customers.
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We also look at Rise and Elastic principal loan charge-offs (including both
credit and fraud losses) by loan vintage as a percentage of combined loans
originated-principal. As the below table shows, our cumulative principal loan
charge-offs for Rise and Elastic through December 31, 2021 for each annual
vintage since the 2013 vintage are generally under 30% and continue to generally
trend at or slightly below our 20% to 25% long-term targeted range. During 2019,
we implemented new fraud tools that have helped lower fraud losses for the 2019
vintage and rolled out our next generation of credit models during the second
quarter of 2019 and continued refining the models during the third and fourth
quarters of 2019. Our payment deferral programs have also assisted in reducing
losses in our 2019 and 2020 vintages coupled with a lower volume of new loan
originations in our 2020 vintage. The 2019 and 2020 vintages are both performing
better than the 2017 and 2018 vintages. While still early, we would expect the
2021 vintage to be at or near 2018 levels or slightly lower given the increased
volume of new customer loans originated this year and a return of net
charge-offs to our targeted range of 45-55% of revenue. It is also possible that
the cumulative loss rates on all vintages will increase and may exceed our
recent historical cumulative loss experience due to the economic impact of a
prolonged crisis resulting from the COVID-19 pandemic.
[[Image Removed: elvt-20211231_g5.jpg]]
(1) The 2020 and 2021 vintages are not yet fully mature from a loss perspective.
(2) UK included in the 2013 to 2017 vintages only.

                                       53
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We also look at Today Card principal loan charge-offs (including both credit and
fraud losses) by account vintage as a percentage of account principal
originations. As the below table shows, our cumulative principal credit card
charge-offs through December 31, 2021 for the 2020 account vintage is under 7%.
While our 2021 account vintage is currently performing better than 2020, we
expect the 2021 account vintage to have losses at or higher than the 2020
account vintage based on the volume of new customers originated in the second
half of 2021. The Today Card requires accounts to be charged off that are more
than 120 days past due which results in a longer maturity period for the
cumulative loss curve related to this portfolio. Our 2018 and 2019 vintages are
considered to be test vintages and were comprised of limited originations volume
and not reflective of our current underwriting standards.

[[Image Removed: elvt-20211231_g6.jpg]]
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Margins

                                                    Twelve Months Ended December 31,
Margin metrics (dollars in thousands)             2021             2020            2019

Revenues                                     $   416,637       $ 465,346       $ 638,873
Net charge-offs(1)                              (163,705)       (189,823)       (330,317)

Additional provision for loan losses(1) (22,125) 32,913

       4,655
Direct marketing costs                           (41,546)        (20,282)        (38,548)
Other cost of sales                              (13,951)         (8,124)        (10,083)
Gross profit                                     175,310         280,030         264,580
Operating expenses                              (155,980)       (159,819)       (163,011)
Operating income                             $    19,330       $ 120,211       $ 101,569
As a percentage of revenues:
Net charge-offs                                       39  %           41  %           52  %
Additional provision for loan losses                   6              (7)             (1)
Direct marketing costs                                10               4               6
Other cost of sales                                    3               2               2
Gross margin                                          42              60              41
Operating expenses                                    37              34              26
Operating margin                                       5  %           26  %           16  %


_________

(1) Non-GAAP measure. See “Non-GAAP Financial Measures – Net Write-offs and Additional Allowance for Loan Losses”.


Gross margin is calculated as revenues minus cost of sales, or gross profit,
expressed as a percentage of revenues, and operating margin is calculated as
operating income expressed as a percentage of revenues. Due to the negative
impact of COVID-19 on our loan balances and revenue, we are monitoring our
profit margins closely. Long-term, we intend to continue to manage the business
to a targeted 20% operating margin.

Recent operating margin trends.   For the year ended December 31, 2021, our
operating margin was 5%, which was a decrease from 26% in the prior year period,
as well as a decrease from 16% in 2019. The margin decreases experienced in 2021
were primarily driven by the upfront costs associated with credit provisioning
and direct marketing expense associated with the increased new and former
customer loan origination volume as we grow and rebuild our loan portfolio from
the impacts of COVID-19. The margins achieved in 2020 were not reflective of our
historical performance as we experienced a significant decline in the loan
portfolio due to a lack of customer demand resulting from the effects of
COVID-19 and related government stimulus programs. These impacts resulted in a
lower level of direct marketing expense and materially lower credit losses
during 2020, leading to an increased gross margin.

Our operating expense metrics have been negatively impacted by the COVID-19
pandemic and its impact on loan balances and revenue. We began to see
improvements in our operating expense metric in the third and fourth quarter of
2021 due to the growth in the portfolio and associated increase in revenue
during those periods as we continued to manage and maintain a relatively
consistent operating expense between the two quarters. In the short term, with
the growth in the loan portfolio experienced in 2021, we expect our expense
metrics to continue to improve and move toward our target range as we focus on
growth to increase our new and former customer loan volume and continue to scale
the overall loan portfolio. In the long term, as we grow the loan portfolio
while actively managing our operating expenses, we expect to see our operating
expense metrics return to approximately 20-25% of revenue. However, management
will continue to look for opportunities to reduce our expenses to help offset
the increased loan origination and direct marketing expenses.
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NON-GAAP FINANCIAL MEASURES


We believe that the inclusion of the following non-GAAP financial measures in
this Annual Report on Form 10-K can provide a useful measure for
period-to-period comparisons of our core business, provide transparency and
useful information to investors and others in understanding and evaluating our
operating results, and enable investors to better compare our operating
performance with the operating performance of our competitors. Management uses
these non-GAAP financial measures frequently in its decision-making because they
provide supplemental information that facilitates internal comparisons to the
historical operating performance of prior periods and give an additional
indication of our core operating performance. However, non-GAAP financial
measures are not a measure calculated in accordance with US generally accepted
accounting principles, or US GAAP, and should not be considered an alternative
to any measures of financial performance calculated and presented in accordance
with US GAAP. Other companies may calculate these non-GAAP financial measures
differently than we do.

Adjusted Earnings (Loss)

Adjusted earnings (loss) represents our net earnings (loss) from continuing operations, adjusted to exclude:

• Uncertain tax position

• Possible losses related to legal issues

• Cumulative tax effect of adjustments

Adjusted diluted earnings (loss) per share is adjusted earnings (loss) divided by the diluted weighted average number of shares outstanding.


The following table presents a reconciliation of net income (loss) from
continuing operations and diluted earnings (loss) per share to Adjusted earnings
(loss) and Adjusted diluted earnings (loss) per share, which excludes the impact
of the contingent losses and uncertain tax position for each of the periods
indicated:

                                                                   Twelve Months Ended December 31,
(Dollars in thousands except per share amounts)              2021                 2020                2019
Net income (loss) from continuing operations           $     (33,598)         $   36,202          $   26,196
Impact of uncertain tax position                               1,264                   -                   -
Impact of contingent losses related to legal
matters                                                       22,751              24,079                   -
Cumulative tax effect of adjustments                          (4,007)             (5,577)                  -
Adjusted earnings (loss)                               $     (13,590)       

$54,704 $26,196


Diluted earnings (loss) per share - continuing
operations                                             $       (0.98)         $     0.87          $     0.59
Impact of uncertain tax position                                0.04                   -                   -
Impact of contingent losses related to legal
matters                                                         0.66                0.58                   -
Cumulative tax effect of adjustments                           (0.12)              (0.14)                  -
Adjusted diluted earnings (loss) per share             $       (0.40)       

$1.31 $0.59

Adjusted EBITDA and Adjusted EBITDA margin

Adjusted EBITDA represents our net income (loss) from continuing operations, adjusted to exclude:

• Net interest expense primarily associated with notes payable under credit facilities used to fund loan portfolios;

•Remuneration in shares;

• Depreciation of fixed assets and intangible assets;

• Gains and losses from disposals or potential losses related to legal issues included in non-operating loss; and

•Income taxes.

Adjusted EBITDA margin is Adjusted EBITDA divided by revenue.


Management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful
supplemental measures to assist management and investors in analyzing the
operating performance of the business and provide greater transparency into the
results of operations of our core business.
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Adjusted EBITDA and Adjusted EBITDA margin should not be considered as
alternatives to net income from continuing operations or any other performance
measure derived in accordance with US GAAP. Our use of Adjusted EBITDA and
Adjusted EBITDA margin has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our results as
reported under US GAAP. Some of these limitations are:

•Although depreciation and amortization are non-cash charges, the assets being
depreciated and amortized may have to be replaced in the future, and Adjusted
EBITDA does not reflect expected cash capital expenditure requirements for such
replacements or for new capital assets;

•Adjusted EBITDA does not reflect changes or cash requirements for our working capital requirements; and


•Adjusted EBITDA does not reflect interest associated with notes payable used
for funding the loan portfolios, for other corporate purposes or tax payments
that may represent a reduction in cash available to us.

The following table presents a reconciliation of net income (loss) from
continuing operations to Adjusted EBITDA and Adjusted EBITDA margin for each of
the periods indicated:

                                                          Twelve Months Ended December 31,
(Dollars in thousands)                                  2021             2020            2019
Net income (loss) from continuing operations       $   (33,598)      $  36,202       $  26,196
Adjustments:
Net interest expense                                    38,479          49,020          62,533
Share-based compensation                                 6,640           8,110           9,875

Depreciation and amortization                           18,470          18,133          15,879
Non-operating loss                                      22,232          24,079             681
Income tax expense (benefit)                            (7,783)         10,910          12,159
Adjusted EBITDA                                    $    44,440       $ 146,454       $ 127,323

Adjusted EBITDA margin                                      11  %           31  %           20  %


Free cash flow

Free cash flow (“FCF”) represents our net cash provided by continuing operating activities, adjusted to include:

• Net write-offs – capital loans combined; and

• Capital expenditures.

The following table provides a reconciliation of net cash provided by continuing operating activities to FCF for each of the periods indicated:


                                                                          Twelve Months Ended December 31,
(Dollars in thousands)                                              2021                   2020                2019
Net cash provided by continuing operating
activities(1)                                                $    156,159              $  210,063          $  333,316

Adjustments:

Net charge-offs - combined principal loans                       (123,073)               (144,697)           (258,250)
Capital expenditures                                              (17,281)                (16,069)            (17,745)
FCF                                                          $     15,805              $   49,297          $   57,321


 _________

(1) Net cash from continuing operating activities includes net charges – combined finance costs.

Net write-offs and additional provision for loan losses


We break out our total provision for loan losses into two separate items-first,
the amount related to net charge-offs, and second, the additional provision for
loan losses needed to adjust the combined loan loss reserve to the appropriate
amount at the end of each month based on our loan loss provision methodology. We
believe this presentation provides more detail related to the components of our
total provision for loan losses when analyzing the gross margin of our business.
                                       57
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Net charge-offs.  Net charge-offs comprise gross charge-offs offset by
recoveries on prior charge-offs. Gross charge-offs include the amount of
principal and accrued interest on loans that are more than 60 days past due
(Rise and Elastic) or 120 days (Today Card), or sooner if we receive notice that
the loan will not be collected, such as a bankruptcy notice or identified fraud.
Any payments received on loans that have been charged off are recorded as
recoveries and reduce total gross charge-offs.

Additional provision for loan losses.   Additional provision for loan losses is
the amount of provision for loan losses needed for a particular period to adjust
the combined loan loss reserve to the appropriate level in accordance with our
underlying loan loss reserve methodology.

                                                  Twelve Months Ended December 31,
(Dollars in thousands)                           2021               2020           2019

Net charge-offs                           $    163,705           $ 189,823      $ 330,317
Additional provision for loan losses            22,125             (32,913)        (4,655)
Provision for loan losses                 $    185,830           $ 156,910      $ 325,662


Combined loan information

The Elastic line of credit product is originated by a third-party lender,
Republic Bank, which initially provides all of the funding for that product.
Republic Bank retains 10% of the balances of all of the loans originated and
sells a 90% loan participation in the Elastic lines of credit to a third-party
SPV, Elastic SPV, Ltd. Elevate is required to consolidate Elastic SPV, Ltd. as a
VIE under US GAAP and the consolidated financial statements include revenue,
losses and loans receivable related to the 90% of Elastic lines of credit
originated by Republic Bank and sold to Elastic SPV.

Beginning in the fourth quarter of 2018, we started licensing our Rise
installment loan brand to a third-party lender, FinWise Bank, which originates
Rise installment loans in 17 states. FinWise Bank retains 4% of the balances of
all the loans originated and sells a 96% participation to a third-party SPV, EF
SPV, Ltd. We do not own EF SPV, but we are required to consolidate EF SPV as a
VIE under US GAAP and the consolidated financial statements include revenue,
losses and loans receivable related to the 96% of Rise installment loans
originated by FinWise Bank and sold to EF SPV.

Beginning in 2018, we started licensing the Today Card brand and our
underwriting services and platform to launch a credit card product originated by
CCB, which initially provides all of the funding for that product. CCB retains
5% of the credit card receivable balance of all the receivables originated and
sells a 95% participation in the Today Card lines of credit to us. The Today
Card program was expanded in 2020.

Beginning in the third quarter of 2020, we also license our Rise installment
loan brand to an additional bank, CCB, which originates Rise installment loans
in three different states than FinWise Bank. Similar to the relationship with
FinWise Bank, CCB retains 5% of the balances of all of the loans originated and
sells the remaining 95% loan participation in those Rise installment loans to EC
SPV. We do not own EC SPV, but we are required to consolidate EC SPV as a VIE
under US GAAP and the consolidated financial statements include revenue, losses
and loans receivable related to the 95% of the Rise installment loans originated
by CCB and sold to EC SPV.

The information presented in the tables below on a combined basis are non-GAAP
measures based on a combined portfolio of loans, which includes the total amount
of outstanding loans receivable that we own and that are on our balance sheets
plus outstanding loans receivable originated and owned by third parties that we
guarantee pursuant to CSO programs in which we participate. There were no new
loan originations in 2021 under our CSO programs, but we continued to have
obligations as the CSO until the wind-down of this portfolio was completed in
the third quarter of 2021. See "-Basis of Presentation and Critical Accounting
Policies-Allowance and liability for estimated losses on consumer loans."

We believe these non-GAAP measures provide investors with important information
needed to evaluate the magnitude of potential loan losses and the opportunity
for revenue performance of the combined loan portfolio on an aggregate basis. We
also believe that the comparison of the combined amounts from period to period
is more meaningful than comparing only the amounts reflected on our balance
sheets since both revenues and cost of sales as reflected in our financial
statements are impacted by the aggregate amount of loans we own and those CSO
loans we guaranteed.

Our use of total combined loans and fees receivable has limitations as an
analytical tool, and you should not consider it in isolation or as a substitute
for analysis of our results as reported under US GAAP. Some of these limitations
are:

• Rise CSO loans were originated and held by a third party lender; and

• The Rise CSO loans were funded by a third party lender and were not part of the VPC Facility.

                                       58
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At each of the period ends indicated, the following table presents a reconciliation of:

•Loans receivable, net, held by the company (which reconcile our consolidated balance sheets included elsewhere in this Annual Report on Form 10-K);


•Loans receivable, net, guaranteed by the Company (as disclosed in Note 3 of our
consolidated financial statements included elsewhere in this Annual Report on
Form 10-K);

•Loans receivable combined (which we use as a non-GAAP measure); and

•Combined loan loss reserve (which we use as a non-GAAP measure).

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                                                                           2019                                                 2020                                                                               2021
(Dollars in thousands)                                                 
December 31           March 31           June 30            September 30           December 31           March 31           June 30            September 30           December 31

Company Owned Loans:
Loans receivable - principal, current,
company owned                                                         $    

530 463 $486,396 $387,939 $346,380

$372,320 $331,251 $372,068 $466,140

          $    501,552
Loans receivable - principal, past due,
company owned                                                               58,489             53,923             18,917                 21,354                25,563             21,678             27,231                 46,730                57,207
Loans receivable - principal, total,
company owned                                                              588,952            540,319            406,856                367,734               397,883            352,929            399,299                512,870               558,759
Loans receivable - finance charges,
company owned                                                               33,033             31,621             25,606                 24,117                25,348             21,393             19,157                 22,960                23,602
Loans receivable - company owned                                           621,985            571,940            432,462                391,851               423,231            374,322            418,456                535,830               582,361
Allowance for loan losses on loans
receivable, company owned                                                  (79,912)           (76,188)           (59,438)               (49,909)              (48,399)           (39,037)           (40,314)               (56,209)              (71,204)
Loans receivable, net, company owned                                  $    

542,073 $495,752 $373,024 $341,942

$374,832 $335,285 $378,142 $479,621

          $    511,157
Third-Party Loans Guaranteed by the
Company:
Loans receivable - principal, current,
guaranteed by company                                                 $     

17,474 $12,606 $6,755 $9,129

  $      1,795          $     145          $      17          $           -          $          -
Loans receivable - principal, past due,
guaranteed by company                                                          723                564                117                    314                   144                 15                  4                      -                     -
Loans receivable - principal, total,
guaranteed by company(1)                                                    18,197             13,170              6,872                  9,443                 1,939                160                 21                      -                     -
Loans receivable - finance charges,
guaranteed by company(2)                                                     1,395              1,150                550                    679                   299                 22                  4                      -                     -
Loans receivable - guaranteed by
company                                                                     19,592             14,320              7,422                 10,122                 2,238                182                 25                      -                     -
Liability for losses on loans
receivable, guaranteed by company                                           (2,080)            (1,571)            (1,156)                (1,421)                 (680)              (122)                (7)                     -                     -
Loans receivable, net, guaranteed by
company(3)                                                            $     

17,512 $12,749 $6,266 $8,701

  $      1,558          $      60          $      18          $           -          $          -
Combined Loans Receivable(3):
Combined loans receivable - principal,
current                                                               $    

547,937 $499,002 $394,694 $355,509

$374,115 $331,396 $372,085 $466,140

          $    501,552
Combined loans receivable - principal,
past due                                                                    59,212             54,487             19,034                 21,668                25,707             21,693             27,235                 46,730                57,207
Combined loans receivable - principal                                      607,149            553,489            413,728                377,177               399,822            353,089            399,320                512,870               558,759
Combined loans receivable - finance
charges                                                                     34,428             32,771             26,156                 24,796                25,647             21,415             19,161                 22,960                23,602
Combined loans receivable                                             $    

641,577 $586,260 $439,884 $401,973

  $    425,469          $ 374,504          $ 418,481          $     535,830          $    582,361


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                                                                              2019                                                 2020                                                                               2021
(Dollars in thousands)                                                     December 31           March 31           June 30            September 30           December 31           March 31           June 30            September 30           December 31

Combined Loan Loss Reserve(3):
Allowance for loan losses on loans
receivable, company owned                                                $  

(79,912) ($76,188) ($59,438) ($49,909)

     $    (48,399)         $ (39,037)         $ (40,314)         $     (56,209)         $    (71,204)
Liability for losses on loans receivable,
guaranteed by company                                                          (2,080)            (1,571)            (1,156)                (1,421)                 (680)              (122)                (7)                     -                     -
Combined loan loss reserve                                               $  

(81,992) ($77,759) ($60,594) ($51,330)

     $    (49,079)         $ (39,159)         $ (40,321)         $     (56,209)         $    (71,204)
Combined loans receivable - principal,
past due(3)                                                              $  

59,212 $54,487 $19,034 $21,668

$25,707 $21,693 $27,235 $46,730 $57,207
Combined loans receivable – principal(3)

                                      607,149            553,489            413,728                377,177               399,822            353,089            399,320                512,870               558,759

Percentage past due                                                            10%                 10%                 5%                   6%                    6%                   6%                 7%                   9%                    10%

Combined loan loss reserve as a percentage
of combined loans receivable(3)(4)                                             13%                 13%                14%                  13%                    12%                 10%                10%                  11%                    12%
Allowance for loan losses as a percentage
of loans receivable - company owned                                            13%                 13%                14%                  13%                    11%                 10%                10%                  11%                    12%


_________

(1)Represents loans originated by third-party lenders through the CSO programs,
which are not included in our financial statements.
(2)Represents finance charges earned by third-party lenders through the CSO
programs, which are not included in our consolidated financial statements. The
wind-down of the CSO program was completed in the third quarter of 2021.
(3)Non-GAAP measure.
(4)Combined loan loss reserve as a percentage of combined loans receivable is
determined using period-end balances.



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COMPONENTS OF OUR OPERATING RESULTS

Revenue


Our revenues are composed of Rise finance charges and CSO fees (inclusive of
finance charges attributable to the participation in Rise installment loans
originated by FinWise Bank and CCB), cash advance fees attributable to the
participation in Elastic lines of credit that we consolidate, finance charges
and fee revenues related to the Today Card credit card product (inclusive of
finance charges attributable to the participations in the credit card
receivables originated by CCB), and marketing and licensing fees received from
third-party lenders related to the Rise, Rise CSO, Elastic, and Today Card
products. See "-Overview" above for further information on the structure of
Elastic.

Cost of sales

Allowance for loan losses. Loan loss provision consists of amounts charged against income during the period related to net write-offs and additional loan loss provision necessary to adjust the loan loss reserve to the appropriate amount at the end of each month. based on our loan loss methodology.


Direct marketing costs.   Direct marketing costs consist of online marketing
costs such as sponsored search and advertising on social networking sites, and
other marketing costs such as purchased television and radio advertising and
direct mail print advertising. In addition, direct marketing cost includes
affiliate costs paid to marketers in exchange for referrals of potential
customers. All direct marketing costs are expensed as incurred.

Other cost of sales. Other costs of sales include data verification costs associated with signing up prospective customers and Automated Clearing House (“ACH”) transaction costs associated with funding and making loan payments to customers.

Operating Expenses


Operating expenses consist of compensation and benefits, professional services,
selling and marketing, occupancy and equipment, depreciation and amortization as
well as other miscellaneous expenses.

Compensation and benefits.   Salaries and personnel-related costs, including
benefits, bonuses and share-based compensation expense, comprise a majority of
our operating expenses and these costs are driven by our number of employees.

Professional services.   These operating expenses include costs associated with
legal, accounting and auditing, recruiting and outsourced customer support and
collections.

Selling and marketing.   Selling and marketing costs include costs associated
with the use of agencies that perform creative services and monitor and measure
the performance of the various marketing channels. Selling and marketing costs
also include the production costs associated with media advertisements that are
expensed as incurred over the licensing or production period. These expenses do
not include direct marketing costs incurred to acquire customers, which
comprises CAC.

Occupancy and equipment. Occupancy and equipment includes rental charges for our leased facilities, as well as telephony and web hosting charges.


Depreciation and amortization.   We capitalize all acquisitions of property and
equipment of $500 or greater as well as certain software development costs.
Costs incurred in the preliminary stages of software development are expensed.
Costs incurred thereafter, including external direct costs of materials and
services as well as payroll and payroll-related costs, are capitalized.
Post-development costs are expensed. Depreciation is computed using the
straight-line method over the estimated useful lives of the depreciable assets.

Other expense

Net interest expense.  Net interest expense primarily includes the interest
expense associated with the VPC Facility that funds the Rise installment loans,
the ESPV Facility related to the Elastic lines of credit and related Elastic SPV
entity, the EF SPV and EC SPV Facilities that fund Rise installment loans
originated by FinWise Bank and CCB, respectively, and the TSPV facility used to
fund credit card receivable purchases. Interest expense also includes any
amortization of deferred debt issuance cost and prepayment penalties incurred
associated with the debt facilities.
                                       62
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RESULTS OF OPERATIONS


This section of this Form 10-K generally discusses 2021 and 2020 items and
year-to-year comparisons between 2021 and 2020. Discussions of 2019 items and
year-to-year comparisons between 2020 and 2019 that are not included in this
Form 10-K can be found in "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Part II, Item 7 of the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2020.

The following table sets forth our consolidated statements of operations data
for each of the periods indicated. Effective June 29, 2020, ECIL was placed into
administration in the UK, and we deconsolidated ECIL and present it as
discontinued operations for all periods presented.

                                                                           Years ended December 31,
Consolidated statements of operations data (dollars in
thousands)                                                       2021                2020                2019

Revenues                                                     $  416,637          $  465,346          $  638,873
Cost of sales:
Provision for loan losses                                       185,830             156,910             325,662
Direct marketing costs                                           41,546              20,282              38,548
Other cost of sales                                              13,951               8,124              10,083
Total cost of sales                                             241,327             185,316             374,293
Gross profit                                                    175,310             280,030             264,580
Operating expenses:
Compensation and benefits                                        76,408              84,103              89,417
Professional services                                            32,499              31,634              31,834
Selling and marketing                                             3,252               3,450               4,773
Occupancy and equipment                                          21,735              18,840              15,989
Depreciation and amortization                                    18,470              18,133              15,879
Other                                                             3,616               3,659               5,119
Total operating expenses                                        155,980             159,819             163,011
Operating income                                                 19,330             120,211             101,569
Other expense:
Net interest expense                                            (38,479)            (49,020)            (62,533)

Non-operating loss                                              (22,232)            (24,079)               (681)
Total other expense                                             (60,711)            (73,099)            (63,214)
Income (loss) from continuing operations before taxes           (41,381)             47,112              38,355
Income tax expense (benefit)                                     (7,783)             10,910              12,159
Net income (loss) from continuing operations                    (33,598)             36,202              26,196
Net income (loss) from discontinued operations                        -             (15,610)              5,987
Net income (loss)                                            $  (33,598)         $   20,592          $   32,183


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                                                                                Years ended December 31,
As a percentage of revenues                                        2021                    2020                   2019

Cost of sales:
Provision for loan losses                                               45  %                   34  %                  51  %
Direct marketing costs                                                  10                       4                      6
Other cost of sales                                                      3                       2                      2
Total cost of sales                                                     58                      40                     59
Gross profit                                                            42                      60                     41
Operating expenses:
Compensation and benefits                                               18                      18                     14
Professional services                                                    8                       7                      5
Selling and marketing                                                    1                       1                      1
Occupancy and equipment                                                  5                       4                      3
Depreciation and amortization                                            4                       4                      2
Other                                                                    1                       1                      1
Total operating expenses                                                37                      34                     26
Operating income                                                         5                      26                     16
Other expense:
Net interest expense                                                    (9)                    (11)                   (10)

Non-operating loss                                                      (5)                     (5)                     -
Total other expense                                                    (15)                    (16)                   (10)
Income (loss) from continuing operations before taxes                  (10)                     10                      6
Income tax expense (benefit)                                            (2)                      2                      2
Net income (loss) from continuing operations                            (8)                      8                      4
Net income (loss) from discontinued operations                           -                      (3)                     1
Net income (loss)                                                       (8  %)                   4  %                   5  %

Comparison of years ended December 31, 2021 and 2020

Revenues

                                                                         Years ended December 31,
                                                           2021                                               2020                                        Period-to-period change
                                                                   Percentage of                                   Percentage of
(Dollars in thousands)                      Amount                    revenues                 Amount                 revenues                       Amount                     Percentage

Finance charges                       $    412,547                              99  %       $ 464,083                          100  %       $              (51,536)                      (11) %
Other                                        4,090                               1              1,263                            -                           2,827                       224
Revenues                              $    416,637                             100  %       $ 465,346                          100  %       $              (48,709)                      (10) %


Revenues decreased by $48.7 million, or 10%, from $465.3 million for the year
ended December 31, 2020 to $416.6 million for the year ended December 31, 2021.
The decrease in revenue is primarily attributable to a lower average combined
loans receivable-principal balance coupled with lower effective APRs earned on
the loan portfolio.
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The tables below break out this change in revenue (including CSO fees and cash
advance fees) by product:

                                                                   Year Ended December 31, 2021
                                                 Rise(1)
                                              (Installment               Elastic                  Today
(Dollars in thousands)                           Loans)             (Lines of Credit)         (Credit Cards)                        Total

Average combined loans receivable -
principal(2)                                 $    247,650          $        160,142          $      25,044                      $   432,836
Effective APR                                         103  %                     94  %                  31  %                            95  %
Finance charges                              $    253,895          $        150,961          $       7,691                      $   412,547
Other                                                 711                       664                  2,715                            4,090
Total revenue                                $    254,606          $        151,625          $      10,406                      $   416,637

                                                                   Year

Ended December 31, 2020

                                                 Rise(1)
                                              (Installment               Elastic                  Today
(Dollars in thousands)                           Loans)             (Lines of Credit)         (Credit Cards)                        Total

Average combined loans receivable -
principal(2)                                 $    263,162          $        182,796          $       8,025                      $   453,983
Effective APR                                         110  %                     94  %                  30  %                           102  %
Finance charges                              $    290,555          $        171,086          $       2,442                      $   464,083
Other                                                 200                       233                    830                            1,263
Total revenue                                $    290,755          $        171,319          $       3,272                      $   465,346


 _________
(1)Includes loans originated by third-party lenders through the CSO programs,
which are not included in our consolidated financial statements..
(2)Average combined loans receivable - principal is calculated using daily
Combined loans receivable - principal balances. Not a financial measure prepared
in accordance with US GAAP. See reconciliation table accompanying this release
for a reconciliation of non-GAAP financial measures to the most directly
comparable financial measure calculated in accordance with US GAAP.

Our average combined loans receivable principal decreased $21 million for the
year ended December 31, 2021 as compared to 2020. This decrease in average
balance is primarily due to lower combined loans receivable-principal balances
in the Rise and Elastic portfolios in the first half of 2021 which were impacted
by the COVID-19 pandemic and substantial government assistance to our customers
prior to the growth which commenced in late second quarter 2021. The decrease in
average balances accounted for approximately $32 million of the reduction in
revenue for the period. Our average APR declined from 102% for the year ended
December 31, 2020 to 95% for the year ended December 31, 2021. This reduction in
the effective APR is due to both the lower effective interest rates earned on
loans in a deferral status under the payment flexibility tools that were
implemented in response to the COVID-19 pandemic and the growth of Today Card
relative to the total loan portfolio, which has the lowest APR. The lower
effective APR accounted for approximately $20 million of the reduction in
revenue for the period. We expect the overall effective APR of the loan
portfolio to remain flat going forward.

Cost of sales

                                                                      Years ended December 31,                                                       Period-to-period
                                                         2021                                              2020                                           change
                                                                 Percentage of                                  Percentage of
(Dollars in thousands)                    Amount                   revenues                 Amount                revenues                    Amount                 Percentage

Cost of sales:
Provision for loan losses           $    185,830                             45  %       $ 156,910                          34  %       $        28,920                       18  %
Direct marketing costs                    41,546                             10             20,282                           4                   21,264                      105
Other cost of sales                       13,951                              3              8,124                           2                    5,827                       72
Total cost of sales                 $    241,327                             58  %       $ 185,316                          40  %       $        56,011                       30  %


Allowance for loan losses. The provision for loan losses increased by $28.9 millioni.e. 18%, of $156.9 million for the year ended December 31, 2020 for
$185.8 million for the year ended December 31, 2021.

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The tables below detail these changes by loan product:

                                                                       Year Ended December 31, 2021
                                                      Rise
                                                  (Installment               Elastic                  Today
(Dollars in thousands)                               Loans)             (Lines of Credit)         (Credit Cards)                        Total

Combined loan loss reserve(1):
Beginning balance                                $     33,968          $         13,201          $       1,910                      $   49,079
Net charge-offs                                      (121,325)                  (38,240)                (4,140)                       (163,705)
Provision for loan losses                             135,576                    41,737                  8,517                         185,830
Ending balance                                   $     48,219          $         16,698          $       6,287                      $   71,204
Combined loans receivable(1)(2)                  $    324,290          $        207,853          $      50,218                      $  582,361
Combined loan loss reserve as a percentage
of ending combined loans receivable                        15  %                      8  %                  13  %                           12  %
Net charge-offs as a percentage of
revenues                                                   48  %                     25  %                  40  %                           39  %
Provision for loan losses as a percentage
of revenues                                                53  %                     28  %                  82  %                           45  %



                                                                   Year Ended December 31, 2020
                                                  Rise
                                              (Installment               Elastic                  Today
(Dollars in thousands)                           Loans)             (Lines of Credit)         (Credit Cards)                        Total

Combined loan loss reserve(1):
Beginning balance                            $     52,099          $         28,852          $       1,041                      $   81,992
Net charge-offs                                  (126,236)                  (61,639)                (1,948)                       (189,823)
Provision for loan losses                         108,105                    45,988                  2,817                         156,910
Ending balance                               $     33,968          $         13,201          $       1,910                      $   49,079
Combined loans receivable(1)(2)              $    247,797          $        163,154          $      14,518                      $  425,469
Combined loan loss reserve as a
percentage of ending combined loans
receivable                                             14  %                      8  %                  13  %                           12  %
Net charge-offs as a percentage of
revenues                                               43  %                     36  %                  60  %                           41  %
Provision for loan losses as a
percentage of revenues                                 37  %                     27  %                  86  %                           34  %


 _________

(1)Not a financial measure prepared in accordance with US GAAP. See "-Non-GAAP
Financial Measures" for more information and for a reconciliation to the most
directly comparable financial measure calculated in accordance with US GAAP.
(2)Includes loans originated by third-party lenders through the CSO programs,
which are not included in our financial statements.

Total loan loss provision for the year ended December 31, 2021 was 45% of
revenues, which was within our targeted range of 45% to 55%, and higher than 34%
for the year ended December 31, 2020. For the year ended December 31, 2021, net
charge-offs as a percentage of revenues was 39%, a decrease from 41% for the
comparable period in 2020. The increase in total loan loss provision as a
percentage of revenues in 2021 compared to last year was due to the increase in
new loan originations beginning in the second quarter of 2021 and charge-offs
and loan loss provisioning associated with a growing portfolio. While we
initially anticipated that the COVID-19 pandemic would have a negative impact on
our credit quality, instead the large quantity of monetary stimulus provided by
the US government to our customer base has generally allowed customers to
continue making payments on their loans, which resulted in a decrease in net
charge-offs as a percentage of revenue compared to last year. We continue to
monitor the portfolio during the economic recovery resulting from COVID-19 and
will adjust our underwriting and credit policies to mitigate any potential
negative impacts as needed. As loan demand continues to return to pre-pandemic
levels and the loan portfolio grows, we expect our total loan loss provision as
a percentage of revenues to be within our targeted range of approximately 45% to
55% of revenue.
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The combined loan loss reserve as a percentage of combined loans receivable
totaled 12% as of both December 31, 2021 and December 31, 2020. The loan loss
reserve percentage is flat at December 31, 2021, reflecting the stable credit
performance of the portfolio, and we would expect the loan loss reserve to
stabilize in the 12-13% range as we manage the portfolio to ensure a consistent
mix of new and returning customers within the portfolio and return the portfolio
to a normalized credit profile. Past due loan balances at December 31, 2021 were
10% of total combined loans receivable - principal, up significantly from 6%
from a year ago, due to the number of new customers originated beginning in the
second quarter of 2021, but is consistent with our historical past due
percentages prior to the pandemic.

Direct marketing costs.   Direct marketing costs increased by approximately
$21.3 million, or 105%, from $20.3 million for the year ended December 31, 2020
to $41.5 million for the year ended December 31, 2021. We had limited marketing
activities and new loan origination volume in 2020 in response to the COVID-19
pandemic. We have seen a return to more normalized new customer acquisition in
all the three loan products in 2021 as the economy continues to recover from the
COVID-19 pandemic and demand for the loan products returns. For the year ended
December 31, 2021, the number of new customers acquired increased to 168,339
compared to 68,245 during the year ended December 31, 2020. We anticipate our
direct marketing costs will continue to increase as we focus on growing our loan
portfolio. Our CAC for the year ended December 31, 2021 was lower than the year
ended December 31, 2020 at $247 as compared to $297, with 2020 not reflective of
our historical CAC due to the significant reduction in new loan originations due
to the COVID-19 pandemic. We believe our CAC in future quarters will continue to
remain within or below our target range of $250 to $300 as we continue to
optimize the efficiency of our marketing channels and continue to grow the Today
Card which successfully generated new customers at a sub-$100 CAC.

Other cost of sales.   Other cost of sales increased by approximately $5.8
million, or 72%, from $8.1 million for the year ended December 31, 2020 to $14.0
million for the year ended December 31, 2021 due to increased data verification
costs resulting from increased loan origination volume.

Operating expenses

                                                                        Years ended December 31,                                                       Period-to-period
                                                           2021                                              2020                                           change
                                                                   Percentage of                                  Percentage of
(Dollars in thousands)                      Amount                   revenues                 Amount                revenues                    Amount                 Percentage

Operating expenses:
Compensation and benefits             $     76,408                             18  %       $  84,103                          18  %       $        (7,695)                      (9) %
Professional services                       32,499                              8             31,634                           7                      865                        3
Selling and marketing                        3,252                              1              3,450                           1                     (198)                      (6)
Occupancy and equipment                     21,735                              5             18,840                           4                    2,895                       15
Depreciation and amortization               18,470                              4             18,133                           4                      337                        2
Other                                        3,616                              1              3,659                           1                      (43)                      (1)
Total operating expenses              $    155,980                             37  %       $ 159,819                          34  %       $        (3,839)                      (2) %


Compensation and benefits.   Compensation and benefits decreased by $7.7
million, or 9%, from $84.1 million for the year ended December 31, 2020 to $76.4
million for the year ended December 31, 2021 primarily due to the reduction in
staff related to an operating expense reduction plan we implemented in the
second and third quarters of 2020 in response to the pandemic.

Professional services.   Professional services increased by $0.9 million, or 3%,
from $31.6 million for the year ended December 31, 2020 to $32.5 million for the
year ended December 31, 2021 due to increased legal expenses, partially offset
by decreased board of directors' stock compensation expense.

Selling and marketing.   Selling and marketing decreased by $0.2 million, or 6%,
from $3.5 million for the year ended December 31, 2020 to $3.3 million for the
year ended December 31, 2021 primarily due to decreased marketing agency fees.

Occupancy and equipment.   Occupancy and equipment increased by $2.9 million, or
15%, from $18.8 million for the year ended December 31, 2020 to $21.7 million
for the year ended December 31, 2021 primarily due to increased web hosting,
partially offset by licenses and rentals expense.

Depreciation and amortization. Depreciation increased by approximately $0.3 millionor 2%, of $18.1 million for the year ended
December 31, 2020 for $18.5 million for the year ended December 31, 2021
primarily due to the acceleration of a board member’s non-competition covenant
$0.5 million with a slight decrease in the depreciation charge between the two years.

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 Net interest expense

                                                                       Years ended December 31,                                                       Period-to-period
                                                          2021                                              2020                                           change
                                                                   Percentage of                                 Percentage of
(Dollars in thousands)                     Amount                    revenues                Amount                revenues                    Amount                 Percentage

Net interest expense                $     38,479                                9  %       $ 49,020                          11  %       $       (10,541)                     (22) %


Net interest expense decreased $10.5 million, or 22%, during the year ended
December 31, 2021 versus the year ended December 31, 2020. Our average balance
of notes payable outstanding under the debt facilities for the year ended
December 31, 2021 decreased $74.7 million from $467.7 million for the year ended
December 31, 2020 to $393.0 million for the year ended December 31, 2021 due to
debt paydowns, including the maturity of one of our term notes, partially offset
by new draws to fund loan portfolio growth. This reduction resulted in a
decrease in interest expense of approximately $7.3 million. In addition, our
average effective cost of funds on our notes payable outstanding decreased from
10.5% for the year ended December 31, 2020 to 9.8% for the year ended
December 31, 2021, resulting in a decrease in interest expense of approximately
$3.2 million. At December 31, 2021, our effective cost of funds on new
borrowings on our VPC facilities is currently 8%, which is expected to reduce
our overall effective costs of funds as we continue to borrow on our debt
facilities in the future.

The following table shows the effective cost of funds of each debt facility for
the period:

                                                       Years ended December 31,
(Dollars in thousands)                                   2021              2020

VPC Facility
Average facility balance during the period         $     79,718        $ 157,484
Net interest expense                                      7,958           17,089

Effective cost of funds                                    10.0   %         10.9  %

ESPV Facility
Average facility balance during the period         $    167,442        $ 206,533
Net interest expense                                     16,925           21,489
Effective cost of funds                                    10.1   %         10.4  %

EF SPV Facility
Average facility balance during the period         $    100,265        $  99,012
Net interest expense                                      9,285            9,938
Effective cost of funds                                     9.3   %         10.0  %

EC SPV Facility
Average facility balance during the period         $     39,148        $   4,658
Net interest expense                                      3,814              504
Effective cost of funds                                     9.7   %         10.8  %

TSPV Facility
Average facility balance during the period(1)      $     28,963        $       -
Net interest expense                                        488                -
Effective cost of funds                                     7.6   %            -  %

(1) Average balance of the facility from inception to October 12, 2021 for December 31, 2021.

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In July 2020, we entered into a new facility, the EC SPV Facility. As of
December 31, 2021, we have drawn $55.5 million on the EC SPV facility. In
October 2021, we entered into a new facility, the TSPV facility, and have drawn
$37 million as of December 31, 2021. Per the terms of the February 2019
amendments and the July 31, 2020 EC SPV agreement, we qualified for a 25 bps
rate reduction on the VPC, ESPV, EF SPV, and EC SPV facilities effective January
1, 2021. We have evaluated the interest rates for our debt and believe they
represent market rates based on our size, industry, operations and recent
amendments. As a result, the carrying value for the debt approximates the fair
value. See "-Liquidity and Capital Resources-Debt facilities" for more
information.

Non-operating loss

                                                                          Years ended December 31,                                                       Period-to-period
                                                             2021                                              2020                                           change
                                                                      Percentage of                                 Percentage of
(Dollars in thousands)                        Amount                    revenues                Amount                revenues                    Amount                 Percentage

Non-operating loss                     $     22,232                                5  %       $ 24,079                           5  %       $        (1,847)                      (8) %


During the year ended December 31, 2021, we accrued $22.8 million in contingent
losses related to legal matters related to our spin-off from our predecessor
company in 2014 and a regulatory litigation matter, partially offset by a $0.5
million recovery related to an indemnification for a former executive of the
Company. During the year ended December 31, 2020, we recognized $24.1 million in
non-operating expenses related to an estimated $17 million contingent loss
associated with a legal matter related to our spin-off from our predecessor
company in 2014 and a separate $7 million indemnification accrual related to a
legal matter for a former executive of the Company.

Income tax expense (benefit)

                                                                       Years ended December 31,                                                       Period-to-period
                                                          2021                                              2020                                           change
                                                                   Percentage of                                 Percentage of
(Dollars in thousands)                     Amount                    revenues                Amount                revenues                    Amount                 Percentage

Income tax expense (benefit)        $     (7,783)                              (2) %       $ 10,910                           2  %       $       (18,693)                    (171) %


Our income tax expense decreased $18.7 million, or 171%, from $10.9 million for
the year ended December 31, 2020 to a income tax benefit of $7.8 million for the
year ended December 31, 2021. We recognized an uncertain tax position of
$1.3 million in income tax expense due to a recent change in tax regulation in
the state of Texas that impacted our previously recognized research and
development state tax credits. Our effective tax rates for continuing operations
for the years ended December 31, 2021 and 2020 were 19% and 23%, respectively.
Our effective tax rates are different from the standard corporate federal income
tax rate of 21% primarily due to the uncertain tax position, of which
$1.2 million would impact our effective tax rate if realized, permanent
non-deductible items, and corporate state tax obligations in the states where we
have lending activities. Our US cash effective tax rate was approximately 0.3%
for 2021.

Net loss from discontinued operations


Our loss from discontinued operations on our UK entity (ECIL) for the year ended
December 31, 2020 consists of an investment loss of $28.0 million, operating
losses of $5.1 million, and a goodwill impairment loss of $9.3 million,
partially offset by an income tax benefit of $28.4 million.

Net income (loss)

                                                                       Years ended December 31,                                                       Period-to-period
                                                          2021                                              2020                                           change
                                                                   Percentage of                                 Percentage of
(Dollars in thousands)                     Amount                    revenues                Amount                revenues                    Amount                 Percentage

Net income (loss)                   $     (33,598)                             (8) %       $ 20,592                           4  %       $       (54,190)                     263  %


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Our net income (loss) decreased $54.2 million, or 263%, from net income of $20.6
million for the year ended December 31, 2020 to a net loss of $33.6 million for
the year ended December 31, 2021 primarily due to the earnings compression
experienced due to loan portfolio growth (upfront costs associated with credit
provision and direct marketing expense) during the second half of 2021, as well
as non-operating losses related to litigation accruals.

CASH AND CAPITAL RESOURCES


As previously discussed, we are closely monitoring the impacts of the COVID-19
pandemic across our business, including the resulting uncertainties around
customer demand, credit performance of the loan portfolio, our levels of
liquidity and our ongoing compliance with debt covenants. We had cash and cash
equivalents available of $85 million at December 31, 2021, compared to cash and
cash equivalents available of $198 million at December 31, 2020, a decrease of
$113 million, primarily due to increased loan origination and participation
purchases. Our principal debt payment obligation of $18 million was paid off in
January 2021 prior to its maturity in February 2021, and there are no additional
required principal payments on our outstanding debt until January 2024.
Throughout the first half of 2021, we made additional net paydowns on the debt
facilities of approximately $70 million. As we are experiencing increased demand
for the loan products, resulting in increased origination volume, we are drawing
down on our available debt facilities to fund the loan portfolio growth. In the
second half of 2021, we made draws on the debt facilities of approximately $154
million. In January 2022, we entered into a sub-debt facility with Pine Hill
Finance LLC of $20 million to supplement our working capital.

While the ultimate impact of COVID-19 on our business, financial condition,
liquidity and results of operations is dependent on future developments which
are highly uncertain, we believe that our actions taken to date, future cash
provided by operating activities, availability under our debt facilities with
VPC and PCAM, and possibly the capital markets, as well as certain potential
measures within our control that could be put in place to maintain a sound
financial position and liquidity will provide adequate resources to fund our
operating and financing needs.

We are continuing to assess our minimum cash and liquidity requirements and
implementing measures to ensure that our cash and liquidity position is
maintained through the current economic cycle created by the COVID-19 pandemic.
We believe that our existing cash balances, together with the available
borrowing capacity under the debt facilities, will be sufficient to meet our
anticipated cash operating expense and capital expenditure requirements through
at least the next year. We principally rely on our working capital and our
credit facilities with VPC and PCAM to fund the loans we make to our customers.
At December 31, 2021, we have contractual obligations for our operating leases
and long-term debt totaling $4 million in 2022, and an additional $475 million
in total due in the next three years. We also are committed, among other things,
to pay $41 million in 2022 as a result of the Think Finance and District of
Columbia litigation settlements, as described further in   Note 14 -
Commitments, Contingencies and Guarantees   and   Note 19 - Subsequent Events  .
If our loan growth exceeds our expectations or other unexpected liquidity needs
arise, our available cash balances may be insufficient to satisfy our liquidity
requirements, and we may seek additional equity or debt financing. This
additional capital may not be available on reasonable terms, or at all.

Share buyback program


At December 31, 2021, we had an outstanding stock repurchase plan authorized by
our Board of Directors providing for the repurchase of up to $80 million of our
common stock through July 31, 2024, inclusive of two $25 million increases to
the plan authorized by the Board of Directors in January and October 2021. The
Board of Directors further authorized a $10 million increase to the annual
fiscal limit of repurchases in October 2021. During the year ended December 31,
2020, we repurchased $19.8 million of common stock. We repurchased 7,337,277
common shares at a total cost of $27.5 million during the year ended December
31, 2021. In January 2022, we repurchased an additional 47,981 of common shares
at a total cost of $148 thousand. Separately from the repurchase plan, have
repurchased approximately 925 thousand shares of common stock during the first
quarter of 2022 pursuant to the Think Finance litigation settlement agreement
executed in February 2022.

The amended stock repurchase program provides that up to a maximum aggregate
amount of $35 million shares may be repurchased in any given fiscal year.
Repurchases will be made in accordance with applicable securities laws from
time-to-time in the open market and/or in privately negotiated transactions at
our discretion, subject to market conditions and other factors. The share
repurchase program does not require the purchase of any minimum number of shares
and may be implemented, modified, suspended or discontinued in whole or in part
at any time without further notice. Any repurchased shares will be available for
use in connection with equity plans and for other corporate purposes.
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Cash and cash equivalents, restricted cash, loans (net of allowance for loan losses) and cash flow

The following table summarizes our cash and cash equivalents, restricted cash, loans receivable, net amount and cash flows for the periods indicated:


                                                                   As of and for the years ended December 31,
(Dollars in thousands)                                          2021                 2020                  2019

Cash and cash equivalents                                  $     84,978          $  197,983                  71,215
Restricted cash                                                   5,874               3,135                   2,235
Loans receivable, net                                           511,157             374,832                 542,073
Cash provided by (used in):
Operating activities - continuing operations                    156,159             210,063                 333,316
Investing activities - continuing operations                   (304,638)             25,640                (307,842)
Financing activities - continuing operations                     38,213            (108,035)                 (2,907)


Our cash and cash equivalents at December 31, 2021 were held primarily for
working capital purposes. We may, from time to time, use excess cash and cash
equivalents to fund our lending activities, paydown debt or repurchase stock. We
do not enter into investments for trading or speculative purposes. Our policy is
to invest any cash in excess of our immediate working capital requirements in
investments designed to preserve the principal balance and provide liquidity.
Accordingly, our excess cash is invested primarily in demand deposit accounts
that are currently providing only a minimal return.

Net cash flow generated by operating activities


We generated $156.2 million in cash from our operating activities-continuing
operations for the year ended December 31, 2021 primarily from revenues derived
from our loan portfolio. This was down $53.9 million from the $210.1 million of
cash provided by operating activities-continuing operations during the year
ended December 31, 2020 due to a decrease in revenues resulting from a smaller
average loan portfolio and lower effective APR as compared to the prior year.
For the year ended December 31, 2020, net cash provided by operating activities
was down $123.33 million from the year ended December 31, 2019 due to a decrease
in revenues.

Net cash provided by (used in) investing activities


For the years ended December 31, 2021, 2020 and 2019, cash provided by (used in)
investing activities-continuing operations was $(304.6) million, $25.6 million
and $(307.8) million, respectively. The decrease for the year ended December 31,
2021 was primarily due to an increase in net loans issued to customers and a
growing loan portfolio compared to prior year. For the year ended December 31,
2020 net cash provided by investing activities increased from the year ended
December 31, 2019 primarily due to a decrease in net loans originated to
customers related to the COVID-19 pandemic.

The following table summarizes cash provided by (used in) investing activities – continuing operations for the periods indicated:


                                                                          For the years ended December 31,
(Dollars in thousands)                                              2021                   2020                2019

Cash provided by (used in) investing activities -
continuing operations
Net loans originated to consumers, less repayments           $    (283,019)            $   45,537          $ (284,236)
Participation premium paid                                          (5,588)                (3,828)             (5,861)
Purchases of property and equipment                                (17,281)               (16,069)            (17,745)
Proceeds from sale of intangible assets                              1,250                      -                   -
                                                             $    (304,638)            $   25,640          $ (307,842)


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Net cash provided by (used in) financing activities


Cash flows from financing activities-continuing operations primarily include
cash received from issuing notes payable, payments on notes payable, and
activity related to stock awards. For the years ended December 31, 2021, 2020
and 2019, cash provided by (used in) financing activities-continuing operations
was $38.2 million, $(108.0) million and $(2.9) million, respectively. The
following table summarizes cash provided by (used in) financing
activities-continuing operations for the periods indicated:

                                                                        For the years ended December 31,
(Dollars in thousands)                                            2021                   2020                2019

Cash provided by (used in) financing activities -
continuing operations
Proceeds from issuance of Notes payable, net               $    178,694              $   31,247          $   61,407
Payments on Notes payable                                      (112,550)               (119,000)            (60,000)
Debt prepayment penalties paid                                        -                       -                (850)

Common stock repurchased                                        (27,536)                (19,819)             (3,344)
Proceeds from issuance of stock, net                                888                     701               1,271

Taxes paid related to net share settlement                 $     (1,283)             $   (1,164)         $   (1,391)
                                                           $     38,213              $ (108,035)         $   (2,907)


The increase in cash provided by (used in) financing activities-continuing
operations for the year ended December 31, 2021 versus the comparable period of
2020 was primarily due to increased draws on our debt facilities during the year
ended December 31, 2021, which were partially offset by payments on the
facilities early in 2021. For the year ended December 31, 2020, net cash used in
financing activities increased compared to the prior year primarily due to
increased payments made on notes payable and increased repurchases of common
stock, which commenced in the third quarter of 2019.

Free movement of capital


In addition to the above, we also review FCF when analyzing our cash flows from
operations. We calculate free cash flow as cash flows from operating
activities-continuing operations, adjusted for the principal loan net
charge-offs and capital expenditures incurred during the period. While this is a
non-GAAP measure, we believe it provides a useful presentation of cash flows
derived from our core continuing operating activities.

                                                                                   For the years ended December 31,
(Dollars in thousands)                                                       2021                   2020                2019

Net cash provided by continuing operating activities                  $    156,159              $  210,063          $  333,316

Adjustments:

Net charge-offs - combined principal loans                                (123,073)               (144,697)           (258,250)
Capital expenditures                                                       (17,281)                (16,069)            (17,745)
FCF                                                                   $     15,805              $   49,297          $   57,321

Our FCF was $15.8 million for the year ended December 31, 2021 compared to $49.3 million for the previous year. The decrease in our FCF is the result of lower cash provided by continuing operations and a slight increase in capital expenditures, partially offset by lower net write-offs – principal loans combined during the year ended December 31, 2021.

COMMITMENTS AND CONTRACTUAL OBLIGATIONS

Borrowing facilities


We have debt facilities to support the loans we make directly to our customers
and the loan and credit card participations we, or our consolidated VIEs
purchase from the third-party banks that license our brands. Each of these
facilities have certain covenants for the Company overall, as well as certain
covenants for the underlying product portfolios. All of our assets are pledged
as collateral to secure one or more of the debt facilities. Previously, we had a
debt facility, the 4th Tranche Term note, used to fund working capital. This
facility was paid in full in early 2021.

See Note 7 – Notes payable, net in the Notes to the consolidated financial statements included in this report for more information.

                                       72
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The outstanding balances of the debt facilities as of December 31, 2021 and 2020
are as follows:

(Dollars in thousands)                                                  2021                2020

American term note bearing interest at the base rate + 7.0% (2021) or + 7.25% (2020)

                                                   $   

84,600 $104,500


4th Tranche Term Note bearing interest at the base rate + 13%                -              18,050

ESPV Term Note bearing interest at the base rate + 7.0% (2021) or + 7.25% (2020)

                                               192,100             199,500

EF SPV Term Note bearing interest at base rate +7.0% (2021) or +7.25% (2020)

                                               137,800              93,500

EC SPV Term Note bearing interest at the base rate + 7.0% (2021) or + 7.25% (2020)

                                                55,500              25,000
TSPV Term Note bearing interest at the base rate + 3.60%                37,000                   -
Total                                                               $  507,000          $  440,550

The following table presents the future maturities of the debt, at December 31, 2021:


Year (dollars in thousands)    December 31, 2021
2022                                           -
2023                                           -
2024                                     470,000
2025                                      37,000
Thereafter                                     -
Total                         $          507,000


Other Commitments

We are a party to other contractual obligations involving commitments to make
payments to third parties. These obligations may impact our short-term or
long-term liquidity and capital resource needs. Our primary contractual
obligations include our operating leases, loss contingencies for legal matters
(including amounts payable pursuant to the Think Finance and District of
Columbia litigation settlements), and various compensation and benefit plans.
See   No    te 9 -     Leases  ,   Note 10 - Share-based Compensation   and

Note 14 – Commitments, contingencies and guarantees included in this report for more information on our leases, loss contingencies and compensation plans, respectively.

OFF-BALANCE SHEET ARRANGEMENTS


We previously provided services in connection with installment loans originated
by independent third-party lenders ("CSO lenders") whereby we acted as a credit
service organization/credit access business on behalf of consumers in accordance
with applicable state laws through our "CSO program." The CSO program included
arranging loans with CSO lenders, assisting in the loan application,
documentation and servicing processes. Under the CSO program, we guaranteed the
repayment of a customer's loan to the CSO lenders as part of the credit services
we provided to the customer. As of September 30, 2021, the CSO program has
completed its wind-down and we no longer have a guarantee under this program.

Prior to ECIL entering administration and being classified a discontinued
operation by us on June 29, 2020, the VPC Facility included the UK Term Note.
Upon deconsolidation of ECIL, this note was removed from our Consolidated
Balance Sheets and is presented within Liabilities from discontinued operations
in all prior periods presented. Under the terms of the VPC Facility, we had
provided a guarantee to VPC for the repayment of the debt of any subsidiary,
which included the outstanding debt of ECIL. ECIL completed payment of the UK
Term Note in the third quarter of 2020 and any guarantee obligation associated
with the UK Term Note was released with the repayment.

RECENT REGULATORY DEVELOPMENTS


Federal Regulations: The Consumer Financial Protection Bureau ("CFPB") amended
Regulation F, 12 CFR part 1006, which implements the Fair Debt Collection
Practices Act (FDCPA), to prescribe Federal rules governing certain activities
of debt collectors. The final rule, among other things, clarifies the
information that a debt collector must provide to a consumer at the outset of
debt collection communications and provides a model notice containing such
information, prohibits debt collectors from bringing or threatening to bring a
legal action against a consumer to collect a time-barred debt, and requires debt
collectors to take certain actions before furnishing information about a
consumer's debt to a consumer reporting agency. The rule became effective on
November 30, 2021.
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On March 31, 2021, the Federal Reserve Board, the CFPB, the Federal Deposit
Insurance Corporation ("FDIC"), the National Credit Union Administration
("NCUA") and the Office of the Comptroller of the Currency ("OCC") announced the
request for information ("RFI") to gain input from financial institutions, trade
associations, consumer groups, and other stakeholders on the growing use of
Artificial Intelligence ("AI") by financial institutions. The request seeks
comments regarding the use of AI, including machine learning, by financial
institutions; appropriate governance, risk management and controls over AI; as
well as challenges in developing, adopting and managing AI. The comment period
was extended from May 30, 2021 to July 1, 2021 and is now closed.

On July 13, 2021, the Federal Reserve, Office of the Comptroller of the
Currency, and the FDIC issued proposed guidance on managing risks associated
with third-party relationships, including relationships with fintech entities
and bank/fintech sponsorship arrangements. The guidance sets forth expectations
for managing risk throughout the life cycle of such arrangements, including
planning, due diligence and contract negotiation, oversight and accountability,
ongoing monitoring, and termination. We will continue to monitor this guidance
as it potentially becomes final.

On August 31, 2021, the U.S. District Court for the Western District of Texas
issued an order in Community Financial Services Association of America, LTD. v.
Consumer Financial Protection Bureau, granting the Bureau's motion for summary
judgment and staying the date for complying with the CFPB's Rulemaking on
Payday, Vehicle Title, and High-Cost Installment Loans for 286 days until June
13, 2022. On October 1, 2021, the trade groups appealed the Texas federal
district court's final judgment and argued that the compliance date should be
286 days after their appeal to the Fifth Circuit is resolved. On October 14,
2021, the Fifth Circuit Court of Appeals agreed to an extension of the
compliance date until after resolution of the appeal. Regardless of outcome of
the appeal, it is anticipated that the rule will increase costs and create
challenges in the Company's collection activities.

State Privacy Laws: The California Consumer Privacy Act went into effect Jan. 1,
2020, and enforcement by California's Office of the Attorney General began July
1, 2020. The California Privacy Rights Act ballot initiative passed in November
2020, with the majority of its provisions becoming operative Jan. 1, 2023.
Virginia passed the Consumer Data Protection Act which establishes a framework
for controlling and processing personal data in the Commonwealth. The bill
applies to all persons that conduct business in the Commonwealth and either (i)
control or process personal data of at least 100,000 consumers or (ii) derive
over 50 percent of gross revenue from the sale of personal data and control or
process personal data of at least 25,000 consumers. The bill outlines
responsibilities and privacy protection standards for data controllers and
processors and has a delayed effective date of January 1, 2023. On July 7, 2021,
Colorado Governor Jared Polis signed the Colorado Privacy Act into law that will
go into effect on July 1, 2023. Once effective, covered entities will be
required to provide Colorado residents with various privacy rights, including
the right to access, correct, and delete their personal data and to opt out of
the sale of their personal data. Covered entities also will need to provide
privacy policy disclosures and create data protection assessments for certain
types of processing activities. Ongoing implementation of and changes to
state-enacted privacy laws will increase the Company's costs and could create
challenges in the relevant markets. Many states have also introduced similar
legislation to govern privacy.

BASIS OF PRESENTATION AND CRITICAL ACCOUNTING PRINCIPLES

Revenue recognition


We recognize consumer loan fees as revenues for each of the loan products we
offer. Revenues on the Consolidated Statements of Operations include: finance
charges, lines of credit fees, fees for services provided through CSO programs
("CSO fees"), and interest, as well as any other fees or charges permitted by
applicable laws and pursuant to the agreement with the borrower. Other revenues
also include marketing and licensing fees received from the originating lender
related to the Elastic product and Rise bank-originated loans and from CSO fees
related to the Rise product. Revenues related to these fees are recognized when
the service is performed.

We accrue finance charges on installment loans on a constant yield basis over
their terms. We accrue and defer fixed charges such as CSO fees and lines of
credit fees when they are assessed and recognize them to earnings as they are
earned over the life of the loan. We accrue interest on credit cards based on
the amount of the credit card balance outstanding and their contractual interest
rate. Annual credit card membership fees are amortized to revenue over the card
membership period. Other credit card fees, such as late payment fees and
returned payment fees, are accrued when assessed. We do not accrue finance
charges and other fees on installment loans or lines of credit for which payment
is greater than 60 days past due. Credit card interest charges are recognized
based on the contractual provisions of the underlying arrangements and are not
accrued for which payment is greater than 90 days past due. Installment loans
and lines of credit are considered past due if a grace period has not been
requested and a scheduled payment is not paid on its due date. Credit cards have
a grace period of 25 days and are considered delinquent after the grace period.
Payments received on past due loans are applied against the loan and accrued
interest balance to bring the loan current. Payments are generally first applied
to accrued fees and interest, and then to the principal loan balance.
                                       74
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The spread of COVID-19 since March 2020 has created a global public health
crisis that has resulted in unprecedented disruption to businesses and
economies. In response to the pandemic's effects and in accordance with federal
and state guidelines, we expanded our payment flexibility programs for our
customers, including payment deferrals. This program allows for a deferral of
payments for an initial period of 30-60 days, and generally up to a maximum of
180 days on a cumulative basis. The customer will return to their normal payment
schedule after the end of the deferral period with the extension of their
maturity date equivalent to the deferral period, which is generally not to
exceed an additional 180 days. Per FASB guidance, the finance charges will
continue to accrue at a lower effective interest rate over the expected term of
the loan considering the deferral period provided (not to exceed an amount
greater than the amount at which the borrower could settle the loan) or placed
on non-accrual status. The COVID-19 payment flexibility programs were no longer
offered effective July 1, 2021, eliminating any new payment deferrals up to 180
days. We and the bank originators continue to offer certain payment flexibility
programs if certain qualifications are met.

Our business is affected by seasonality, which can cause significant changes in
portfolio size and profit margins from quarter to quarter. Although this
seasonality does not impact our policies for revenue recognition, it does
generally impact our results of operations by potentially causing an increase in
its profit margins in the first quarter of the year and decreased margins in the
second through fourth quarters.

Provision and Liability for Estimated Losses on Consumer Loans


We have adopted Financial Accounting Standards Board ("FASB") guidance for
disclosures about the credit quality of financing receivables and the allowance
for loan losses ("allowance"). We maintain an allowance for loan losses for
loans and interest receivable for loans not classified as TDRs at a level
estimated to be adequate to absorb credit losses inherent in the outstanding
loans receivable. We primarily utilize historical loss rates by product,
stratified by delinquency ranges, to determine the allowance, but we also
consider recent collection and delinquency trends, as well as macro-economic
conditions that may affect portfolio losses. Additionally, due to the
uncertainty of economic conditions and cash flow resources of our customers, the
estimate of the allowance for loan losses is subject to change in the near-term
and could significantly impact the consolidated financial statements. If a loan
is deemed to be uncollectible before it is fully reserved, it is charged-off at
that time. For loans classified as TDRs, impairment is typically measured based
on the present value of the expected future cash flows discounted at the
original effective interest rate. We have elected to adopt the Current Expected
Credit Losses ("CECL") model as of January 1, 2022, which requires a broader
range of reasonable and supportable information to inform credit loss estimates.
See "- Recently Issued Accounting Pronouncements And JOBS Act Election" for more
information.

We classify loans as either current or past due. An installment loan or line of
credit customer in good standing may request a 16-day grace period when or
before a payment becomes due and, if granted, the loan is considered current
during the grace period. Credit card customers have a 25-day grace period for
each payment. Installment loans and lines of credit are considered past due if a
grace period has not been requested and a scheduled payment is not paid on its
due date. Credit cards are considered past due if the grace period has passed
and the scheduled payment has not been made. Increases in the allowance are
created by recording a Provision for loan losses in the Consolidated Statements
of Operations. Installment loans and lines of credit are charged off, which
reduces the allowance, when they are over 60 days past due or earlier if deemed
uncollectible. Credit cards are charged off, which reduces the allowance, when
they are over 120 days past due or earlier if deemed uncollectible. Recoveries
on losses previously charged to the allowance are credited to the allowance when
collected.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the
net tangible and identifiable intangible assets acquired in each business
combination. In accordance with Accounting Standards Codification ("ASC")
350-20-35, Goodwill-Subsequent Measurement, we perform a quantitative approach
method impairment review of goodwill and intangible assets with an indefinite
life annually at October 1 and between annual tests if an event occurs or
circumstances change that would more likely than not reduce the fair value of a
reporting unit below its carrying amount.

Prior to the adoption of ASU No. 2017-04, Intangibles-Goodwill and Other (Topic
350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), our
impairment evaluation of goodwill was already based on comparing the fair value
of our reporting units to their carrying value. The adoption of ASU 2017-04 as
of January 1, 2020 had no impact on our evaluation procedures. The fair value of
the reporting units is determined based on a weighted average of the income and
market approaches. The income approach establishes fair value based on estimated
future cash flows of the reporting units, discounted by an estimated
weighted-average cost of capital developed using the capital asset pricing
model, which reflects the overall level of inherent risk of the reporting units.
The income approach uses our projections of financial performance for a six to
nine-year period and includes assumptions about future revenues growth rates,
operating margins and terminal values. The market approach establishes fair
value by applying cash flow multiples to the reporting units' operating
performance. The multiples are derived from other publicly traded companies that
are similar but not identical from an operational and economic standpoint.
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Internal use software development costs

We capitalize certain costs related to software developed for internal use, primarily associated with the continuous development and improvement of our technology platform. Costs incurred in the preliminary and post-development stages are expensed. These costs are amortized on a straight-line basis over the estimated useful life of the related asset, generally three years.

Income taxes


Income taxes are accounted for under the asset and liability method. Deferred
tax assets and liabilities are recognized for the future tax consequences and
benefits attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and
operating loss and tax credit carryforwards. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the enactment date.
Valuation allowances are established when necessary to reduce deferred tax
assets to the amounts that are more likely than not to be realized.

Relative to uncertain tax positions, we accrue for losses we believe are
probable and can be reasonably estimated. The amount recognized is subject to
estimate and management judgment with respect to the likely outcome of each
uncertain tax position. The amount that is ultimately sustained for an
individual uncertain tax position or for all uncertain tax positions in the
aggregate could differ from the amount recognized. If the amounts recorded are
not realized or if penalties and interest are incurred, we have elected to
record all amounts within income tax expense.

At December 31, 2021, we recorded a gross liability for an uncertain tax
position of $1.3 million. No liability was recorded at December 31, 2020. Tax
periods from fiscal years 2014 to 2020 remain open and subject to examination
for US federal and state tax purposes. As we had no operations nor had filed US
federal tax returns prior to May 1, 2014, there are no other US federal or state
tax years subject to examination.

Share-based compensation


In accordance with applicable accounting standards, all share-based payments,
consisting of stock options, and restricted stock units ("RSUs") issued to
employees are measured based on the grant-date fair value of the awards and
recognized as compensation expense on a straight-line basis over the period
during which the recipient is required to perform services in exchange for the
award (the requisite service period). We also offer an employee stock purchase
plan ("ESPP"). The determination of fair value of share-based payment awards and
ESPP purchase rights on the date of grant using option-pricing models is
affected by our stock price as well as assumptions regarding a number of highly
complex and subjective variables. These variables include, but are not limited
to, the expected stock price volatility over the term of the awards, actual and
projected employee stock option exercise activity, risk-free interest rate,
expected dividends and expected term. We use the Black-Scholes-Merton Option
Pricing Model to estimate the grant-date fair value of stock options. We also
use an equity valuation model to estimate the grant-date fair value of RSUs.
Additionally, the recognition of share-based compensation expense requires an
estimation of the number of awards that will ultimately vest and the number of
awards that will ultimately be forfeited.

RECENTLY RELEASED ACCOUNTING STATEMENTS AND JOBS ACT ELECTION


Under the Jumpstart Our Business Startups Act (the "JOBS Act"), we meet the
definition of an emerging growth company. We have irrevocably elected to opt out
of the extended transition period for complying with new or revised accounting
standards pursuant to Section 107(b) of the JOBS Act.

Recently Adopted Accounting Standards


See   Note 1 - Summary of Significant Accounting Policies   in the Notes to the
Consolidated Financial Statements included in this report for a discussion of
recent accounting pronouncements.


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Crypto software company Nukkleus (NUKK) goes public at $140 million https://acamet.org/crypto-software-company-nukkleus-nukk-goes-public-at-140-million/ Thu, 24 Feb 2022 17:21:50 +0000 https://acamet.org/crypto-software-company-nukkleus-nukk-goes-public-at-140-million/

Financial trading software company Nukkleus is going public through a $140 million merger with shell company Brilliant Acquisition that values ​​the company at 90% of its current market capitalization, the companies jointly announced.

The merger will coincide with a reverse stock split in which the 36.7 million outstanding shares of Nukkleus will be converted into approximately 14 million shares of the new company at an acquisition price of $0.38 per action, Nukkleus reported in a filing with the US Securities & Exchange Commission (SEC).

Nukkleus stock closed Wednesday at $0.20 per share. Nukkleus shares trade on the OTC Pink Sheets exchange under the symbol NUKK.

Nukkleus Inc. (OTC: NUKK) since June 22, 2020 – Photo: Koyfin

Transaction participants

ClearThink Capital is acting as financial advisor to Nukkleus, with Schiff Hardin as legal advisor. Axiom Capital Management, Earlybird Capital and RedEight Capital are acting as financial advisors to the special acquisition company (SPAC) Brilliant Acquisition, with Loeb & Loeb as legal advisors.

Jersey City, New Jersey-based Nukkleus, founded in 2013, was formerly known as Compliance and Risk Management Solutions. Nukkleus makes cloud-based software for cryptocurrency exchanges to convert crypto into fiat currency.

Shanghai, China-based Brilliant Acquisition stock closed Wednesday at $10.27 per share, unchanged during the session. Brilliant Acquisition originally went public in a $40 million IPO in June 2020 at $10 per share in an offering underwritten by Earlybird Capital as lead manager, along with I-Bankers Shares as co-manager.

Brilliant Acquisition Corp.  (Nasdaq: BRLI) since June 22, 2020 IPO Brilliant Acquisition Corp. (Nasdaq: BRLI) since June 22, 2020 IPO – Photo: Koyfin

“Given Brilliant’s international sponsorship, we particularly appreciate that Nukkleus’ Digital RFQ subsidiary operates globally, capturing a global institutional audience for its services” – Peng Jiang, President of Brilliant Acquisition

“We have been looking for a quality opportunity in the global fintech sector for some time,” Brilliant Acquisition Chairman Peng Jiang said in a statement. “Given Brilliant’s international sponsorship, we particularly appreciate that Nukkleus’ Digital RFQ subsidiary operates globally, capturing a global institutional audience for its services.”

Digital RFQ is Nukkleus’ European digital asset execution service for OTC markets in multiple currencies. Digital RFQ was founded in 2018 by Nukkleus COO Jamal Khurshid.

Nukkleus declared a loss in 2021

Nukkleus reported a net loss of $1.94 million on $5.13 million in annual revenue for the full year of 2021, compared to a net loss of $53,595 on $4.80 million in revenue in 2020.

As of December 31, Nukkleus reported $50,623 in cash, with $2.61 million in accounts receivable due from affiliates. Nukkleus has total liabilities of $4.98 million, including $4.41 million in accounts payable from its affiliates.

Read more:

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Capital Com is an execution-only service provider. The material provided on this website is provided for informational purposes only and should not be construed as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We make no representations or warranties as to the accuracy or completeness of the information provided on this page. If you rely on any information on this page, you do so entirely at your own risk.

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2022 NFL Draft: Revisiting Matthew Stafford, Jamal Adams and other trades involving first-round picks https://acamet.org/2022-nfl-draft-revisiting-matthew-stafford-jamal-adams-and-other-trades-involving-first-round-picks/ Tue, 22 Feb 2022 14:25:00 +0000 https://acamet.org/2022-nfl-draft-revisiting-matthew-stafford-jamal-adams-and-other-trades-involving-first-round-picks/

There are more than two months until the 2022 NFL Draft and six first-round picks have already been traded. CBSSports.com revisits each of these deals and explores how they’ve fared so far.

No. 7 overall: Bears via Giants

The Giants are given numbers 20 (Kadarius Toney) and 164 overall in 2021; No. 7 overall and 2022 4th round pick
Bears receive No. 11 overall in 2021 (Justin Fields)

Toney played nine games for an anemic offense in New York. He has shown flashes of his potential and fans are hoping new head coach Brian Daboll can unlock him full time. The Giants have a second top-10 pick as a result of the trade and should be able to take an offensive or defensive lineman.

If Fields is able to pull through and become the franchise quarterback Chicago was hoping for by going on the trade, then the Bears will emerge victorious from this trade, especially if Daniel Jones continues to be a disappointment in the Big Apple. There is no substitute for elite quarterback play.

No. 10 overall: Jets via Seahawks

Jets get safety Bradley McDougald, No. 23 and 86 overall in 2021; N°10 overall in 2022
Seahawks receive safety Jamal Adams, 2022 4th round pick

McDougald spent one season with the Jets. He recently spent the 2021 season with Tennessee and Jacksonville. New York used the No. 23 overall pick to move up and take USC interior offensive lineman Alijah Vera-Tucker to No. 14 overall. As part of that deal, general manager Joe Douglas sent No. 66 and No. 86 overall to Minnesota in exchange for No. 143 overall and the pick that resulted in Vera-Tucker.

If Seattle had the chance to go back in time, most believe, and rightly so, that the franchise wouldn’t make this trade a second time. The Seahawks doubled down by giving Adams a four-year contract extension worth up to $70 million. He failed to register a sack in 2021 after registering 9.5 the previous year. He posted his first two interceptions since 2019.

No. 15 overall: Eagles via Dolphins

Dolphins receive numbers 6 (Jaylen Waddle) and 156 overall in 2021
The Eagles receive numbers 12 and 123 overall (Zech McPhearson) in 2021; N°15 overall in 2022

Waddle broke Anquan Boldin’s record for receptions by a rookie. His 104 catches were eighth in the league. He also finished in the top 25 for receiving yards and receiving touchdowns. The other choice was involved in a separate exchange.

Philadelphia used the No. 12 overall pick as a starting point to earn two spots for the right to select Alabama wide receiver DeVonta Smith. In the process, they passed the rival Giants, who fell back to take Toney. Smith had a remarkable rookie campaign in which he posted 64 receptions for 916 yards and five touchdowns. McPhearson appeared in all but one game, recording 16 tackles and one pass deflection.

The trade was and remains a home run for the Eagles. They clinched a top-15 selection in the 2022 NFL Draft while falling six spots and still getting a first pass.

No. 16 overall: Eagles via Colts

Colts get quarterback Carson Wentz
Eagles receive No. 84 overall in 2021 and No. 16 overall in 2022

It was a roller coaster ride of a season for Indianapolis. After starting with three straight losses, the Colts won nine of their next 12 games before losing the last two, including one to the owner of the No. 1 overall pick. Wentz took much of the blame for how the season went. He was responsible for a few grueling turnovers and the Colts’ aspirations are too high to depend on his play. There’s already been a lot of smoke that the franchise could blow from him this offseason. The owner’s public comments did nothing to extinguish the fire creating said smoke.

Philadelphia traded last year’s third-round pick from Indianapolis to Dallas. Wentz’s trade earns the third of three first-round picks for the Eagles. The trade terms originally stated that Indianapolis would send a second-round pick to Philadelphia in exchange for Wentz, but it would become a first-round pick if the quarterback played in at least 75% of the team’s offensive snaps. .

No. 29 overall: Dolphins via 49ers

49ers receive No. 3 overall (Trey Lance) in 2021
Dolphins receive No. 12 overall in 2021; No. 29 overall in 2022, 3rd round pick in 2022; 1st round pick in 2023

Lance has only played six games this season. He was basically an insurance policy for Jimmy Garoppolo, but the keys to the kingdom should be Lance’s advance. There’s a complex discussion to be had over whether San Francisco should have used their first-round pick on a non-quarterback given that they qualified for the NFC Championship Game for the second time. in three years with Garoppolo.

Shortly after completing the trade, Miami moved up six spots in a separate trade described above.

No. 32 overall: Lions via Rams

Lions receive quarterback Jared Goff, No. 101 overall (Ifeatu Melifonwu) in 2021; No. 32 overall in 2022; 1st round pick in 2023
Rams welcome quarterback Matthew Stafford

Goff missed three games and played substitute-level football while on the pitch. Detroit can do more to surround him with talent, but his lift may never reach the penthouse with the former No. 1 overall selection under center. That being said, the Lions could do worse and many franchises did in 2021. As general manager Brad Holmes rebuilds this franchise, it won’t be completely complete without a quarterback who inspires confidence for the future.

Melifonwu appeared in seven games, amassing 15 tackles, two fumble recoveries and three pass deflections.

Although there were times during the season when it looked like Los Angeles’ aggressiveness wouldn’t pay off, the Rams were able to complete their mission by winning the Super Bowl. Stafford has played at a level worthy of MVP consideration at times. Had the team failed, general manager Les Snead’s willingness to compromise long-term goals for short-term reward would have come under criticism. Because it paid off with a Super Bowl win, Snead’s decision making was validated and it could inspire more teams to follow a similar strategy in the future.

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Can the bulls help Nifty50 hold 17,200? What technical charts suggest, key levels to follow https://acamet.org/can-the-bulls-help-nifty50-hold-17200-what-technical-charts-suggest-key-levels-to-follow/ Sun, 20 Feb 2022 08:39:00 +0000 https://acamet.org/can-the-bulls-help-nifty50-hold-17200-what-technical-charts-suggest-key-levels-to-follow/
Indian equity benchmarks Sensex and Nifty50 ended another choppy session on Friday down slightly as investors remained concerned about the Russia-Ukraine conflict and earlier-than-expected hikes in key interest rates.

What do the charts suggest for Dalal Street now?

The Nifty50 has formed an inverted hammer pattern on the daily chart, which often indicates a bullish reversal, according to Rupak De, Principal Technical Analyst at LKP Securities. He thinks the index trend will remain bullish in the coming days as long as it stays above 17,200.

“On the lower end, 17,200 can act as support for a falling market. On the upper end, crucial resistance is found at 17,500,” he said.

The worst is not over yet

“Until the type of war scenario does not disappear completely, uncertainty is likely to loom in markets around the world…It is advisable not to trade aggressively; traders should avoid holding overnight positions”, Sameet Chavan, chief technical and derivatives analyst at Angel One, said CNBCTV18.com.

Here are the key things to know about the market ahead of the February 21st session:

Global Markets

Wall Street indices fell on Friday as escalating tensions in Ukraine and US warnings of a possible Russian invasion prompted investors to dump risky assets. The three key indexes closed down 0.7 to 1.2%.

Earlier in the day, European equity markets weakened, with continued pressure on stocks exposed to Russia. The pan-European Stoxx 600 fell 0.8%.

What to expect in Dalal Street

The bulls need to break above the 17,450-17,500 levels with some authority to regain strength, according to Angel One’s Chavan. He sees 17,000 and 16,800 as breakthrough levels.

The Nifty’s short-term trend continues to be choppy, with immediate support at 17,150, said Nagaraj Shetti, technical research analyst at HDFC Securities. “The Nifty’s inability to hold above 17,500 could eventually lead to a downward correction, which could eventually cause it to retest the recent low of 16,840,” he added.

Levels to watch

The Nifty must give a decisive breakout on either side of the Range of 16,800 to 17,400 for clear direction, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services. “Volatility is also expected to remain high this week given the crucial meeting between the United States and Russia. Inflation concerns, continued FII selling and monthly F&O expirations could add to volatility,” he added.

FII/DII activity

Foreign Institutional Investors (FII) sold Indian shares worth Rs

2,530 crores Fridayaccording to preliminary exchange data. However, domestic institutional investors (DII) made net purchases of Rs 1,929.1 crore.

Exchange data shows that the maximum open interest on call is accrued at the strike price of 18,000, with 1.4 lakh contracts, followed by 17,500, with 96,000. On the other hand, the maximum open interest to sell is 17,000, with contracts of 1.2 lakh.

This suggests that the Nifty has a major hurdle at 18,000 and strong support at 17,000.

Here are two stocks that have seen an increase in open interest as well as price, suggesting an accumulation of long positions:

symbol Current IO CPM Price change (%) Change in OI (%)
COALINDE 3,68,67,600 162.45 2.52% 2.31%
COROMANDEL 8,68,125 803.2 0.33% 1.08%

Long relaxation

symbol Current IO CPM Price change (%) Change in OI (%)
ADANIPORTS 5,99,76,250 729.2 -0.86% -44.70%
SUN TV 1,16,14,500 484.15 -1.98% -25.51%
NAVIGATE 12,72,09,750 96.6 -0.82% -17.72%
AUBANQUE 25,07,000 1,257 -0.64% -16.25%
MINDTREE 25,93,000 3,809 -1.22% -14.61%

(Decrease in open interest as well as price)

Short cover

symbol Current IO CPM Price change (%) Change in OI (%)
GRASIM 88,10,775 1,718.35 0.58% -19.39%
BERGEPAINT 38,39,000 738.85 1.77% -18.45%
DRREDDY 24,25,750 4,309.75 0.11% -14.16%
HDFC 1,96,76,400 2,436.95 1.14% -14.03%
ADANIENT 1,99,07,000 1,737.60 0.42% -12.02%

(Increase in price and decrease in open interest)

Short setup

symbol Current IO CPM Price change (%) Change in OI (%)
SYNGENE 7,59,900 559.95 -3.17% 4.81%
AMBUJACEM 1,36,63,500 338.85 -5.85% 4.79%
JKCEMENT 2 63 550 2,968.60 -2.13% 1.13%
INDIAMART 3,39,975 4,745.55 -1.20% 0.64%
DIXON 5 64 375 4,069.25 -3.25% 0.16%

(Increase in open interest and decrease in price)

52 Week Highs

One stock in the BSE 500 pack hit a 52-week high: Adani Green.

52 week lows

As many as 16 stocks hit 52-week lows, including Manappuram, Indigo Paints, Cadila, Nippon Life India Asset, City Union Bank, Procter & Gamble Health, Engineers India and Dilip Buildcon.

Volatility index

NSE’s India VIX index – which measures volatility expectations in the market – rose 0.7% to 22.2 on Friday, after climbing as high as 5.5% during the session .

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Ducks score seven points in win over Canucks to end four-game skid https://acamet.org/ducks-score-seven-points-in-win-over-canucks-to-end-four-game-skid/ Sun, 20 Feb 2022 06:14:24 +0000 https://acamet.org/ducks-score-seven-points-in-win-over-canucks-to-end-four-game-skid/

VANCOUVER– Nicolas Deslauriers and Adam Henry each scored twice for the Anaheim Ducks in a 7-4 win over the Vancouver Canucks at Rogers Arena on Saturday.

Trevor Zegras got three assists and John Gibson made 16 saves and had one assist for the Ducks (24-19-9), who ended a four-game (0-3-1) skid that included being outscored 17-8 while losing all three last in regular time.

“It was a 100% win,” Deslauriers said. “Now we have to do it again.”

Deslauriers set the tone with a power shot that knocked the Canucks defenseman down Kyle Burroughs out of play 44 seconds after the start of the first period, and Troy Terry gave Anaheim a 1-0 lead on a deflection 13 seconds later. Deslauriers made it 2-0 at 3:23 by redirecting a pass from Derek Grant from the corner to the top of the fold.

“We talked about it just before the game. We have to come out strong,” Deslauriers said. “I have to give credit to the second line who jumped on it and scored right after. It’s almost a better feeling to finish my hit and see that we score right after.”

Video: ANA@VAN: Deslauriers pushes to the crease, points the puck

Elias Pettersson had a goal and two assists for the Canucks (23-22-6), who shot Thatcher Demko 4:20 into the second period after allowing five goals on 14 shots. Jaroslav Halak made nine relief stops.

“It’s pretty obvious that Anaheim was a lot more of a desperate team, and they knew what was at stake,” Canucks coach Bruce Boudreau said. “They came out to avenge their four game losing streak and we just thought it would be an ordinary game. That’s where it all started and then it all fell apart after that.”

Rickard Rakell made it 3-0 at 14:08 with a power play shot that deflected the Canucks forward Juho Lammikko passed a filtered Demko. It was Rakell’s fourth goal in six games.

“We were very direct to the net,” Ducks coach Dallas Eakins said. “We just wanted to get the pucks over there. We didn’t care how they got there, with the bodies going there, and we wanted to be physical, and we were able to tick all three of those boxes early on.

Henrique increased the lead to 4-0 at 1:35 of the second period on a rebound at the top of the slot on the power play, and Sam Steel pushed it 5-0 at 4:20 on a rush two seconds after another power play ended.

“Our power play has been good all year (25.9%, fifth in the NHL) and it’s certainly nice to have that in your back pocket when you might not be scoring as many goals five against five than other teams,” Eakins said. . “It was good for them to crack some tonight.”

Video: ANA@VAN: Henrique puts on the rebound of Demko for PPG

Tanner Pearson cut the score to 5-1 at 4:52 with a one-timer from the bottom of the face-off circle and Pettersson made it 5-2 at 15:47 with a one-timer on the power play.

Henrique gave the Ducks a 6-2 lead at 16:50 by shoveling the puck over the line and under the defenseman Luke Schenn as he dived to try to keep it after a shot from Zegras hit the post and deflected Halak towards the goal.

Deslauriers scored from the slot to make it 7-2 at 3:49 of the start of the third period.

“I want to score more,” Deslauriers said after doubling his season tally. “It’s not my job.”

Eakins changed his lines of attack before the game and it paid off with a balanced attack.

“You hope your instincts are right, but you don’t know until the game starts,” he said. “But I thought our four lines did a very, very good job. I thought our ‘D’s were good and [Gibson] was good when needed, so it was definitely very good teamwork.”

Video: ANA@VAN: Deslauriers scores in the 3rd period

Conor Garland shot Vancouver 7-3 at 10:41 from a sharp angle and Quinn Hughes scored on a point shot at 16:28 for the final 7-4.

“They scored those quick two on us early and we just couldn’t resist,” the Vancouver forward said. Bo Horvat noted. “We’ve been in this position before where it’s hard to fight so hard. It just wasn’t a good start for us today.”

REMARKS: Burroughs appeared to injure his right arm on Deslauriers’ hit, and fellow defender Olivier Ekman-Larsson left after being hit with 7:01 left in the third period. Boudreau said “it doesn’t look very good in the short term” for Burroughs, but did not provide an update on Ekman-Larsson. … Duck Center Ryan Getzlaf missed his second straight game with a lower-body injury. He skated on Saturday after being knocked out late before a 7-3 loss to the Edmonton Oilers on Thursday, but Eakins decided to hold him off to try to get healthier. … Henrique has scored 207 goals in 741 NHL games, but has never had a hat trick. Deslauriers scored 40 goals in 474 NHL games and had a hat trick (a natural hat trick) on March 10, 2020 in a 5-2 win over the Ottawa Senators. … Pettersson has eight points (three goals, five assists) over the past five games. … Anaheim won the season series 3-0-1 (Vancouver 1-2-1).

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Fairly normal water supply forecast for the Campbell River system – Campbell River Mirror https://acamet.org/fairly-normal-water-supply-forecast-for-the-campbell-river-system-campbell-river-mirror/ Mon, 14 Feb 2022 21:00:00 +0000 https://acamet.org/fairly-normal-water-supply-forecast-for-the-campbell-river-system-campbell-river-mirror/

BC Hydro forecasts that the water supply forecast for the Campbell River system from February to September will be 3% below normal.

Spokesman Stephen Watson noted that it’s still early days and a lot can change over the next few months if the dry weather continues or suddenly becomes wet.

“For the broader water supply forecast, snowpack on Vancouver Island is near normal for this time of year. The snowpack typically peaks around the end of April and we expect supplies to the watershed to increase as the snow melts,” Watson said.

The past four years have seen drier than normal late winter and spring weather on Vancouver Island. For February to date, precipitation in the upper watershed has been 79% of normal.

“We’ll see what happens in 2022,” Watson said.

Water levels in the upper watershed are generally where they should be for this time of year.

“The largest of the three reservoirs, Upper Campbell Reservoir/Buttle Lake, currently sits at 216.9 meters, which is in the prime zone,” Watson said.

“The preferred reservoir level range adjusts lower in the spring and at the lower end is 213.5 meters. The reservoir is considered full at 220.5 meters. With the current dry weather forecast, the level The reservoir may continue to slowly decline in the short term This is the same situation for the Lower Campbell / Lake McIvor Reservoir, which is currently at 177.2 meters, and has a smaller preferred seasonal range of 176 meters at 177.8 meters until June 21.

The John Hart Generating Station is operating near full capacity and currently operating at approximately 118 cubic meters per second (m3/s).

“We plan to reduce flows on February 15 to around 100 m3/s. A flow of 80 m3/s keeps fish habitat in the river well covered and will be good for salmon fry as they begin their migration to the ocean,” Watson said.

Water inflows into the Campbell River system over the next week are expected to be approximately 55 m3/s.

Fish migration flows

BC Hydro is also warning the public of higher water flows in the Elk Falls Canyon to help rainbow trout migrate and spawn below Elk Falls.

It starts five, two day rainbow trout migration and spawning streams in the Elk Falls Canyon.

“It’s about giving the fish access to good habitat from the powerhouse tunnel exit area to the base of Elk Falls,” Watson said.

Water releases from the John Hart Dam, which will increase from 4 m3/s to 10 m3/s, will begin on March 2 and 3 and will take place every Wednesday and Thursday until March 31.

A public river safety advisory will be in place from John Hart Dam to Elk Falls during migration flows. “Please stay clear of the river at this location during migration flows,” Watson said.

Safety signage will be in place.

Out of consideration for public safety, BC Hydro begins increasing water flows for each of the dam’s migration flows at night.

BC Hydro can provide an update on water supply and operations in March.


editor@campbellrivermirror.com
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