OPPFI INC. MANAGEMENT REPORT ON FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with the unaudited consolidated
financial statements and related notes thereto included elsewhere in the
Quarterly Report on Form 10-Q. This discussion contains forward-looking
statements that involve risks and uncertainties. You should review the sections
titled "Cautionary Note Concerning Factors That May Affect Future Results" and
"Risk Factors" of this Form 10-Q and our most recently filed Annual Report on
Form 10-K for a discussion of forward-looking statements and important factors
that could cause actual results to differ materially from the results described
or implied by the forward-looking statements contained in the following
discussion and analysis.

OVERVIEW

OppFi Inc. ("we", "our", or the "Company") is a leading mission-driven financial
technology platform that powers banks to offer accessible financial products to
everyday consumers through our proprietary technology and artificial
intelligence ("AI") and a top-rated customer experience. Our primary mission is
to facilitate financial inclusion and credit access to the 60 million everyday
consumers who lack access to mainstream credit and help them build financial
health. Consumers on our platform benefit from higher approval rates and a
highly automated, transparent, efficient, and fully digital experience. Our bank
partners benefit from our turn-key, outsourced marketing, data science, and
proprietary technology to digitally acquire, underwrite and service everyday
consumers and increase automation throughout the lending process.

We principally service consumers on our financial platform through OppLoans,
which is our bank sponsored installment loan product that is a fully amortizing,
simple interest small dollar loan with an average loan size of approximately
$1,500 and a term of 11 months. Our SalaryTap and OppFi Card products do not
currently represent a significant amount of our business.

Covid-19 pandemic

On March 11, 2020, the World Health Organization designated the novel
coronavirus ("COVID-19") as a global pandemic. Recently, consumer activity has
begun to recover and government mandates to restrict daily activities have been
lifted, but the long-term effects of the COVID-19 pandemic globally and in the
United States remain unknown. Worker shortages, supply chain issues,
inflationary pressures, vaccine and testing requirements, the emergence of new
variants, and the reinstatement of restrictions and health and safety related
measures in response to the emergence of new variants, such as the Delta and
Omicron variants, contributed to the volatility of ongoing recovery. There can
be no assurance that economic recovery will continue or that consumer behavior
will return to pre-pandemic levels. For further discussion please reference the
'Risk Factors' section in Part 1, Item 1A, of our Annual Report on Form 10-K for
the fiscal year ended December 31, 2021.

RECENT REGULATORY DEVELOPMENTS

California AB 539
On March 7, 2022, the Company filed a complaint for declaratory and injunctive
relief ("Complaint") against the Commissioner (in her official capacity) of the
Department of Financial Protection and Innovation of the State of California
("Defendant") in the Superior Court of the State of California, County of Los
Angeles, Central Division. The Complaint seeks a declaration that the interest
rate caps set forth in the California Financing Law, as amended by the Fair
Access to Credit Act, a/k/a AB 539 ("CFL"), do not apply to loans that are
originated by the Company's federally-insured state-chartered bank partners and
serviced through the Company's technology and service platform pursuant to a
contractual arrangement with each such bank ("Program"). The Complaint further
seeks injunctive relief against the Defendant, preventing the Defendant from
enforcing interest rate caps under the CFL against the Company based on
activities related to the Program. On April 8, 2022, the Defendant filed a
cross-complaint against the Company attempting to enforce the CFL against the
Company and, among other things, void loans that are originated by the Company's
federally-insured state-chartered bank partners through the Program in
California and seek financial penalties against the Company. On May 10, 2022,
the Company filed a Demurrer to the cross-complaint of the Defendant. On July 7,
2022, the Defendant filed its opposition to the Company's Demurrer to the
cross-complaint of the Defendant. On September 30, 2022, the Court overruled the
Company's Demurrer to the Defendant's cross-complaint. The Company intends to
continue to aggressively prosecute the claims set forth in the Complaint and
vigorously defend itself and its position as the matter proceeds through the
court process. The Company believes that the Defendant's position is without
merit as explained in the Company's initial Complaint.

STRONG POINTS

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Our financial results as of and for the three months ended September 30, 2022
are summarized below:
•Basic and diluted loss per share ("EPS") of $(0.04) and $(0.04), respectively,
for the three months ended September 30, 2022;
•Adjusted EPS(1) of $0.01 for the three months ended September 30, 2022;
•Net originations increased 11% to $182.7 million from $164.5 million for the
three months ended September 30, 2022 and 2021, respectively;
•Ending receivables increased 39% to $407.7 million from $293.3 million as of
September 30, 2022 and 2021, respectively;
•Total revenue increased 35% to $124.2 million from $92.0 million for the three
months ended September 30, 2022 and 2021, respectively;
•Net loss of $(0.7) million for the three months ended September 30, 2022
decreased by 102.2% when compared to net income of $30.4 million for the three
months ended September 30, 2021; and
•Adjusted net income(1) decreased 96% to $0.8 million from $17.4 million for the
three months ended September 30, 2022 and 2021, respectively.

(1) Adjusted EPS and Adjusted Net Income are non-Generally Accepted Accounting
Principles ("GAAP") financial measures. For information regarding our uses and
definitions of these measures and for reconciliations to the most directly
comparable United States GAAP measures, see"Non-GAAP Financial Measures" below.

KEY PERFORMANCE INDICATORS

We regularly review the following key metrics to evaluate our business, measure
our performance, identify trends affecting our business, formulate financial
projections and make strategic decisions, which may also be useful to an
investor. The following tables and related discussion set forth key financial
and operating metrics for the Company's operations as of and for the three and
nine months ended September 30, 2022 and 2021.

All key performance metrics include the three products on the OppFi platform and
are not shown separately as contributions from SalaryTap and OppFi Card were de
minimis.

Total Net Originations

We measure originations to assess the growth trajectory and overall size of our
loan portfolio. There is a direct correlation between origination growth and
revenue growth. We include both bank partner originations as well as those
originated by us directly. Loans are considered to be originated when the
contract is signed by the prospective borrower. The vast majority of our
originations ultimately disburse to a borrower, but disbursement timing lags
that of originations. Originations may be useful to an investor because they
help understand the growth trajectory of our revenues.

The following tables present total net originations (defined as gross
originations net of transferred balance on refinanced loans), percentage of net
originations by bank partners, and percentage of net originations by new loans
for the three and nine months ended September 30, 2022 and 2021 (in thousands):

                                                     Three Months Ended September 30,                     Change
                                                         2022                   2021                $                 %
Total net originations                            $       182,724           $ 164,547          $ 18,177              11.0  %
Percentage of net originations by bank
partners                                                     94.2   %            93.4  %           N/A                0.9  %
Percentage of net originations by new loans                  50.1   %            51.4  %           N/A               (2.5) %



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                                                       Nine Months Ended September 30,                        Change
                                                         2022                    2021                  $                  %
Total net originations                            $           571,681       $       408,394       $ 163,287              40.0  %
Percentage of net originations by bank
partners                                                      94.6  %             89.0    %                N/A            6.3  %
Percentage of net originations by new loans                   53.2  %             43.6    %                N/A           22.0  %



Net originations increased to $182.7 million and $571.7 million for the three
and nine months ended September 30, 2022, from $164.5 million and $408.4 million
for the three and nine months ended September 30, 2021. The 11.0% and 40.0%
increases were driven by increased demand resulting in higher application volume
and an increase in funded rate (defined as funded loans over qualified
applications). We saw a decline in net originations from the three months ended
June 30, 2022 due to tightening of credit.

Our origination mix continues to shift towards a servicing / facilitation model
for bank partners from a direct origination model. Total net originations by our
bank partners increased to 94.2% and 94.6% for the three and nine months ended
September 30, 2022, from 93.4% and 89.0% for the three and nine months ended
September 30, 2021.

Total net originations of new loans as percentage of total loans decreased to
50.1% and increased to 53.2% for the three and nine months ended September 30,
2022 from 51.4% and 43.6% for the three and nine months ended September 30,
2021. The decrease is a result of a pullback on marketing spend and lower
qualified rate (defined as qualified applications over total applications) to
ensure that new loans originated are of a higher credit quality than previous
periods.

Ending Receivables

Ending receivables are defined as the unpaid principal balances of on-balance
sheet loans at the end of the reporting period. The following table presents
ending receivables as of September 30, 2022 and 2021 (in thousands):

                              September 30,                    Change
                           2022           2021             $             %
Ending receivables      $ 407,730      $ 293,279      $ 114,451        39.0  %



Ending receivables increased to $407.7 million as of September 30, 2022 from
$293.3 million as of September 30, 2021. The 39.0% increase was primarily driven
by growth in originations.

Average Yield

Average yield represents annualized interest income from the period as a percent
of average receivables. Receivables are defined as unpaid principal balances of
on-balance sheet loans. The following tables present average yield for the three
and nine months ended September 30, 2022 and 2021:

                            Three Months Ended September 30,            Change
                                   2022                     2021          %
Average yield                                 119.4  %     131.3  %     (9.1) %



                            Nine Months Ended September 30,            Change
                                   2022                    2021          %
Average yield                                119.0  %     129.0  %     (7.8) %



Average yield decreased to 119.4% and 119.0% for the three and nine months ended
September 30, 2022, respectively, from 131.3% and 129.0% for the three and nine
months ended September 30, 2021, respectively. The 9.1% and 7.8% decreases were
driven by an increase in delinquent loans in the portfolio that were not
accruing interest and an increase in enrollment in our hardship and assistance
programs, which provide payment relief due to natural disasters, loss of income,
increase in expenses, or other unpredictable events such as COVID-19.
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Net charges as a percentage of average receivables

Net charge-offs as a percentage of average receivables represents annualized
total charge-offs from the period less recoveries as a percent of average
receivables. Receivables are defined as unpaid principal of on-balance sheet
loans. Our charge-off policy is based on a review of delinquent finance
receivables on a loan by loan basis. Finance receivables are charged off at the
earlier of the time when accounts reach 90 days past due on a recency basis,
when we receive notification of a customer bankruptcy, or when finance
receivables are otherwise deemed uncollectible.

The following tables present net charge-offs as a percentage of average
receivables annualized for the three and nine months ended September 30, 2022
and 2021:

                                                           Three Months Ended September 30,                  Change
                                                             2022                     2021                      %
Net charge-offs as % of average receivables                       66.4  %                 35.8  %                 85.5  %



                                                            Nine Months Ended September 30,                  Change
                                                             2022                     2021                      %
Net charge-offs as % of average receivables                       58.3  %                 31.4  %                 85.7  %



Net charge-offs as a percentage of average receivables increased to 66.4% and
58.3% for the three and nine months ended September 30, 2022, respectively, from
35.8% and 31.4% for the three and nine months ended September 30, 2021,
respectively. The elevated net charge-offs for both three and nine months ended
September 30, 2022 are a result of the cumulative effects of inflation and the
runoff of lower quality loans originated prior to credit tightening earlier this
year. Additionally, credit adjustments have decelerated origination growth and
therefore impacted the denominator of the net charge-off rate.

Marketing cost per financed loan

Marketing cost per funded loan represents marketing cost per funded loan for new
and refinance loans. This metric is the amount of direct marketing costs
incurred during a period divided by the number of loans originated during that
same period.
The following tables present marketing cost per funded loan for the three and
nine months ended September 30, 2022 and 2021:

                                           Three Months Ended September 30,                         Change
                                               2022                   2021                  $                    %
Marketing cost per funded loan          $             66          $       89          $      (23)                (25.8) %


                                            Nine Months Ended September 30,                         Change
                                               2022                   2021                  $                    %
Marketing cost per funded loan          $             75          $       74          $         1                  1.4  %



Our marketing cost per funded loan decreased to $66 and increased to $75 for the
three and nine months ended September 30, 2022, from $89 and $74 for the three
and nine months ended September 30, 2021. The 25.8% decrease for the three
months ended September 30, 2022 was driven by the lower mix of new versus
refinanced loans year over year as stated in the 'Total Net Originations' metric
above in addition to a lower marketing cost per new funded loan.

Marketing cost per new loan financed

Marketing cost per new funded loan represents the amount of direct marketing
costs incurred during a period divided by the number of new loans originated
during that same period. The following tables present marketing cost per new
funded loan for the three and nine months ended September 30, 2022 and 2021:
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                                            Three Months Ended September 30,                         Change
                                                2022                   2021                  $                    %
Marketing cost per new funded
loan                                    $             188          $      255          $      (67)                (26.3) %



                                            Nine Months Ended September 30,                          Change
                                                2022                   2021                  $                    %
Marketing cost per new funded
loan                                    $             205          $      254          $      (49)                (19.3) %



Our marketing cost per new funded loan decreased to $188 and $205 for the three
and nine months ended September 30, 2022, respectively, from $255 and $254 for
the three and nine months ended September 30, 2021, respectively. The 26.3% and
19.3% decreases for the three and nine months ended September 30, 2022 were
driven by growth in low cost marketing channels such as email, referrals, and
search engine optimization, improved efficiency in direct mail marketing spend,
and shifting volume within our partner channel to lower cost partners.

Automatic approval rate

Auto-approval rate is calculated by taking the number of approved loans that are
not decisioned by a loan advocate or underwriter (auto-approval) divided by the
total number of loans approved. The following table presents auto approval rate
for the months ended September 30, 2022 and 2021:

                              September 30,            Change
                             2022           2021         %
Auto-approval rate             69.2  %     58.1  %     19.1  %


Auto-approval rate increased by 19.1% for the month ended September 30, 2022 at 69.2%, compared to 58.1% for the month ended September 30, 2021through the continued application of algorithmic automation projects that streamline the frictional steps of the origination process.

Selling and servicing cost per loan

Sales and servicing cost per loan is calculated by taking the total sales and
servicing costs, which include customer center salaries, underwriting and
reporting costs, and payment processing fees, divided by the average amount of
outstanding loans during that period. The following tables present sales and
servicing cost per loan for the three and nine months ended September 30, 2022
and 2021:

                                            Three Months Ended September 30,                         Change
                                                2022                   2021                  $                    %
Sales and servicing cost per loan       $             128          $      164          $      (36)                (22.0) %



                                            Nine Months Ended September 30,                          Change
                                                2022                   2021                  $                    %
Sales and servicing cost per loan       $             141          $      162          $      (21)                (13.0) %



Our sales and servicing cost per loan decreased by $36 and $21 for the three and
nine months ended September 30, 2022, respectively, compared to the three and
nine months ended September 30, 2021, due to increased efficiency in our
customer center allowing us to service a higher volume of loans with lower
proportional headcount.
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RESULTS OF OPERATIONS

Comparison of the three months ended September 30, 2022 and 2021

The following table presents our consolidated results of operations for the three months ended September 30, 2022 and 2021 (in thousands, except number of shares and data per share).

(in thousands, excluding share and per

              share data)                       Three Months Ended September 30,                      Change
                                                    2022                 2021                  $                  %
Interest and loan related income               $   123,605          $    91,448          $   32,157               35.2  %
Other income                                           639                  529                 110               20.8  %
   Total revenue                                   124,244               91,977              32,267               35.1  %
Provision for credit losses on finance
receivables                                         (1,017)                (143)               (874)             611.2  %
Change in fair value of finance
receivables                                        (70,601)             (18,940)            (51,661)             272.8  %
   Net revenue                                      52,626               72,894             (20,268)             (27.8) %
Expenses:
Sales and marketing                                 11,674               15,633              (3,959)             (25.3) %
Customer operations                                 10,591               10,550                  41                0.4  %
Technology, products, and analytics                  8,325                7,329                 996               13.6  %
General, administrative, and other                  13,909               21,456              (7,547)             (35.2) %
   Total expenses before interest
expense                                             44,499               54,968             (10,469)             (19.0) %
Interest expense                                     9,096                6,414               2,682               41.8  %
   Total expenses                                   53,595               61,382              (7,787)             (12.7) %
   (Loss) income from operations                      (969)              11,512             (12,481)            (108.4) %
Gain on forgiveness of PPP loan                          -                6,444              (6,444)                 -  %
Change in fair value of warrant
liability                                            1,323               13,139             (11,816)             (89.9) %
  Income before income taxes                           354               31,095             (30,741)             (98.9) %
Provision for income taxes                           1,015                  703                 312               44.4  %
   Net (loss) income                                  (661)              30,392             (31,053)            (102.2) %
Less: net (loss) income attributable to
noncontrolling interest                                (90)              16,267             (16,357)            (100.6) %
   Net (loss) income attributable to
OppFi Inc.                                     $      (571)         $    14,125          $  (14,696)            (104.0) %

(Loss) earnings per share attributable to
OppFi Inc.:
(Loss) earnings per common share:
  Basic                                        $     (0.04)         $      

1.06

  Diluted                                      $     (0.04)         $      

0.29

Weighted average common shares
outstanding:
  Basic                                            13,972,971           13,363,996
  Diluted                                          13,972,971           84,464,783



Total Revenue

Total revenue consists mainly of revenue earned from interest on receivables
from outstanding loans based only on the interest method. We also earn revenue
from referral fees related primarily to our turn-up program, which represented
less than 0.2 % of total revenue for the three months ended September 30, 2022.

Total revenue increased by $32.3 million, or 35.1%, to $124.2 million for the
three months ended September 30, 2022 from $92.0 million for the three months
ended September 30, 2021. The increase was due to higher receivables balances
throughout the quarter, which was driven by both higher beginning balances and
origination growth.

Change in fair value and total provision

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Commencing on January 1, 2021, we elected the fair value option on the OppLoans
installment product. To derive the fair value, we generally utilize discounted
cash flow analyses that factor in estimated losses and prepayments over the
estimated duration of the underlying assets. Loss and prepayment assumptions are
determined using historical loss data and include appropriate consideration of
recent trends and anticipated future performance. Future cash flows are
discounted using a rate of return that we believe a market participant would
require based on the risk characteristics of the loans. We did not elect the
fair value option on our SalaryTap and OppFi Card finance receivables as these
products launched in November 2020 and August 2021, respectively, and inputs for
fair value are not yet determined. Accordingly, the related finance receivables
are carried at amortized cost, net of allowance for credit losses.

Change in fair value consists of gross charge-offs incurred in the period on the
OppLoans installment product, net of recoveries, plus the change in the fair
value on the installment loans portfolio. Change in fair value totaled $70.6
million for the three months ended September 30, 2022, which was comprised of
$67.7 million of net charge-offs and a fair market value adjustment of $2.9
million, up from $18.9 million for the three months ended September 30, 2021,
which was comprised of $24.9 million of net charge-offs and a fair market value
adjustment of $(6.0) million. The fair value adjustment for the three months
ended September 30, 2022 had a negative impact due to a decrease in the fair
value mark, partially offset by an increase in receivables in the period.

For the three months ended September 30, 2022, total provision consists of gross
charge-offs incurred in the period, net of recoveries, plus the change in the
allowance for credit losses for our SalaryTap and OppFi Card products. Total
provision increased for the three months ended September 30, 2022 due to the
increase in gross charge-offs on the SalaryTap and OppFi card products from
their launch in 2021.

Net revenue

Net revenue is equal to total revenue less the change in fair value and total
provision costs. Total net revenue decreased by $20.3 million, or 27.8%, to
$52.6 million for the three months ended September 30, 2022 from $72.9 million
for the three months ended September 30, 2021. This decrease was due to the rise
in gross charge-offs, which offset higher total revenues.

Expenses

Expenses include salary and benefits costs, interest expense and amortized debt issuance costs, sales and marketing, customer operations, technology, products and analytics, as well as other general and administrative expenses.

Expenses decreased by $7.8 million, or 12.7%, to $53.6 million for the three
months ended September 30, 2022, from $61.4 million for the three months ended
September 30, 2021. A large portion of the decrease was driven by lower direct
marketing spend due to a lower marketing cost per new funded loan. Additionally,
professional fees for three months ended September 30, 2021 were elevated as we
were incurring expenses associated with becoming a public company. The decrease
was partially offset by further investment in technology infrastructure, higher
insurance costs associated with being a public company and increased interest
expense as a result of increased debt draws to support higher receivables
balances. Expenses as a percent of revenue decreased year over year from 66.7%
to 43.1% for the three months ended September 30, 2022 compared to the three
months ended September 30, 2021.

(Loss) Operating Income

(Loss) income from operations is the difference between net revenue and
expenses. Total (loss) income from operations decreased by $12.5 million, or
108.4%, to $(1.0) million for the three months ended September 30, 2022, from
$11.5 million for the three months ended September 30, 2021.

Gain on PPP loan forgiveness

Gain on forgiveness of PPP Loan for the three months ended September 30, 2021
included the gain from an unsecured loan of $6.4 million in connection with the
U.S. Small Business Administration's ("SBA") Paycheck Protection Program (the
"PPP Loan").

Change in fair value of warrant liability

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Change in fair value of warrant liability for the three months ended
September 30, 2022 included the change in fair value of the warrant liability in
the amount of $1.3 million. This warrant liability arose with respect to
warrants issued in connection with the initial public offering of FGNA and is
subject to re-measurement at each balance sheet date.

income before taxes

Income before income taxes is the sum of income from operations, the gain on
forgiveness of PPP Loan and the change in fair value of warrant liability.
Income before income taxes decreased by $30.7 million, or 98.9%, to $0.4 million
for the three months ended September 30, 2022, from $31.1 million for the three
months ended September 30, 2021.

Income taxes

Opfi Inc. recorded a provision for income taxes of $1.0 million for the three months ended September 30, 2022 and $0.7 million for the three months ended
September 30, 2021.

Net income (loss)

Net (loss) income decreased by $31.1 millioni.e. 102.2%, at ($0.7) million for the three months ended September 30, 2022 of $30.4 million for the three months ended September 30, 2021.

(Loss) Net income attributable to Opfi Inc.

Net (loss) income attributable to OppFi Inc. was $(0.6) million for the three
months ended September 30, 2022. Net (loss) income attributable to OppFi Inc.
represents the (loss) income solely attributable to stockholders of OppFi Inc.
for the three months ended September 30, 2022. As a result of the Company's Up-C
structure, the underlying income or expense components that are attributable to
OppFi Inc. are generally expense items related to OppFi Inc.'s status as a
public company and the income or expense for the change in fair value of warrant
liabilities related to the Company's warrants, as well as the Company's
approximate percentage interest in the non-controlling interest. The underlying
income or expense components that are attributable to OppFi Inc. for the three
months ended September 30, 2022 are gain on change in fair value of warrant
liabilities of approximately $1.3 million, partially offset by tax expense of
approximately $1.4 million, payroll and stock compensation expense of
approximately $0.2 million, general and administrative expense of approximately
$0.2 million and board fees of approximately $0.1 million, for total (loss)
attributable to OppFi Inc. of approximately $(0.5) million. The (loss) also
includes OppFi Inc.'s percentage interest in the income attributable to
non-controlling interest of approximately $(0.1) million, for net (loss)
attributable to OppFi Inc. of approximately $(0.6) million.

The underlying income or expense components that are attributable to OppFi Inc.
for the three months ended September 30, 2021 are gain on change in fair value
of warrant liabilities of approximately $13.1 million, partially offset by tax
expense of approximately $0.7 million, general and administrative expense of
approximately $0.1 million and board fees of approximately $0.1 million, for
total income attributable to OppFi Inc. of approximately $12.2 million. The
income also includes OppFi Inc.'s percentage interest in the income attributable
to non-controlling interest of approximately $1.9 million, for net income
attributable to OppFi Inc. of approximately $14.1 million.

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Comparison of the nine months ended September 30, 2022 and 2021

The following table presents our consolidated results of operations for the nine
months ended September 30, 2022 and 2021 (in thousands, except number of shares
and per share data).

(in thousands, excluding share and per

              share data)                          Nine Months Ended September 30,                         Change
                                                      2022                    2021                  $                  %
Interest and loan related income               $        331,814          $   253,581          $   78,233               30.9  %
Other income                                              1,015                1,029                 (14)              (1.4) %
   Total revenue                                        332,829              254,610              78,219               30.7  %
Provision for credit losses on finance
receivables                                              (2,043)                (181)             (1,862)            1028.7  %
Change in fair value of finance
receivables                                            (162,280)             (52,635)           (109,645)             208.3  %
   Net revenue                                          168,506              201,794             (33,288)             (16.5) %
Expenses:
Sales and marketing                                      43,067               35,114               7,953               22.6  %
Customer operations                                      31,933               30,036               1,897                6.3  %
Technology, products, and analytics                      24,848               19,669               5,179               26.3  %
General, administrative, and other                       40,965               45,686              (4,721)             (10.3) %
   Total expenses before interest
expense                                                 140,813              130,505              10,308                7.9  %
Interest expense                                         24,421               17,406               7,015               40.3  %
   Total expenses                                       165,234              147,911              17,323               11.7  %
   Income from operations                                 3,272               53,883             (50,611)             (93.9) %
Gain on forgiveness of PPP loan                               -                6,444              (6,444)                 -  %
Change in fair value of warrant
liability                                                 7,024               13,139              (6,115)             (46.5) %
   Income before income taxes                            10,296               73,466             (63,170)             (86.0) %
Provision for income taxes                                1,757                  703               1,054              149.9  %
   Net income                                             8,539               72,763             (64,224)             (88.3) %
Less: net income attributable to
noncontrolling interest                                   4,576               58,638             (54,062)             (92.2) %

Net income attributable to Opfi Inc. $3,963

   14,125          $  (10,162)             (71.9) %

Earnings per share attributable to OppFi
Inc.:
Earnings per common share:
Basic                                          $           0.29          $      1.08
Diluted                                        $           0.09          $      0.29
Weighted average common shares
outstanding:
Basic                                                   13,694,733           13,107,874
Diluted                                                 84,277,277           84,464,783



Total Revenue

Total revenue consists mainly of revenue earned from interest on receivables
from outstanding loans based only on the interest method. We also earn revenue
from referral fees related primarily to our turn-up program, which represented
less than 0.2 % of total revenue for the nine months ended September 30, 2022.

Total revenue increased by $78.2 million, or 30.7%, to $332.8 million for the
nine months ended September 30, 2022 from $254.6 million for the nine months
ended September 30, 2021. The increase was due to higher receivables balances
throughout the period, which was driven by both higher beginning balances and
origination growth.

Change in fair value and total provision

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Commencing on January 1, 2021, we elected the fair value option on the OppLoans
installment product. To derive the fair value, we utilize a discounted cash flow
analyses that factors in estimated losses and prepayments over the estimated
duration of the underlying assets. Loss and prepayment assumptions are
determined using historical loss data and include appropriate consideration of
recent trends and anticipated future performance. Future cash flows are
discounted using a rate of return that we believe a market participant would
require based on the risk characteristics of the loans. We did not elect the
fair value option on our SalaryTap and OppFi Card finance receivables as these
products launched in November 2020 and August 2021, respectively, and inputs for
fair value are not yet determined. Accordingly, the related finance receivables
are carried at amortized cost, net of allowance for credit losses.

Change in fair value consists of gross charge-offs incurred in the period on the
OppLoans installment product, net of recoveries, plus the change in the fair
value on the installment loans portfolio. Change in fair value totaled $162.3
million for the nine months ended September 30, 2022, which was comprised of
$161.5 million of net charge-offs and a fair market value adjustment of $0.8
million, up from $52.6 million for the nine months ended September 30, 2021,
which was comprised of $62.1 million of net charge-offs and a fair market value
adjustment of $(9.4) million. The fair value adjustment for the nine months
ended September 30, 2022 had a negative impact due to a decrease in the fair
value mark, partially offset by the increase in receivables in the period.

For the nine months ended September 30, 2022, total provision consists of gross
charge-offs incurred in the period, net of recoveries, plus the change in the
allowance for credit losses for our SalaryTap and OppFi Card products. Total
provision increased for the nine months ended September 30, 2022 due to the
increase in gross charge-offs on the SalaryTap and OppFi card products from
their launch in 2021.

Net revenue

Net revenue is equal to total revenue less the change in fair value and less
total provision costs. Total net revenue decreased by $33.3 million, or 16.5%,
to $168.5 million for the nine months ended September 30, 2022 from $201.8
million for the nine months ended September 30, 2021. This decrease was due to
the rise in gross charge-offs, which offset higher total revenues.

Expenses

Expenses include salary and benefits costs, interest expense and amortized debt issuance costs, sales and marketing, customer operations, technology, products and analytics, as well as other general and administrative expenses.

Expenses increased by $17.3 million, or 11.7%, to $165.2 million for the nine
months ended September 30, 2022, from $147.9 million for the nine months ended
September 30, 2021. A large portion of the increase was related to higher direct
marketing costs to drive higher new originations throughout the first half of
the year, an increase in professional fees related to tax and legal guidance,
further investment in technology infrastructure, higher insurance costs
associated with being a public company and increased interest expense as a
result of increased debt draws to support higher receivables balances. Due to
headcount reductions and vendor savings implemented in the first half of 2022,
expenses as a percent of revenue decreased year over year from 58% to 50% for
the nine months ended September 30, 2022 compared to the nine months ended
September 30, 2021.

Income from operations

Income from operations is the difference between net revenue and expenses. Total
income from operations decreased by $50.6 million, or 93.9%, to $3.3 million for
the nine months ended September 30, 2022, from $53.9 million for the nine months
ended September 30, 2021.

Gain on PPP loan forgiveness

Gain on cancellation of PPP loan for the nine months ended September 30, 2021
included the $6.4 million PPP loan gain.

Change in fair value of warrant liability

Change in fair value of warrant liability for the nine months ended
September 30, 2022 included the change in fair value of the warrant liability in
the amount of $7.0 million. This warrant liability arose with respect to
warrants issued in connection with the initial public offering of FGNA and is
subject to re-measurement at each balance sheet date.

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income before taxes

Income before income taxes is the sum of income from operations, the gain on
forgiveness of PPP Loan and the change in fair value of warrant liability.
Income before income taxes decreased by $63.2 million, or 86.0%, to $10.3
million for the nine months ended September 30, 2022, from $73.5 million for the
nine months ended September 30, 2021.

Income taxes

OppFi Inc. recorded a provision for income taxes of $1.8 million for the nine
months ended September 30, 2022 and $0.7 million for the nine months ended
September 30, 2021. As noted above, OppFi-LLC is treated as a partnership and is
not subject to income taxes. Prior to the consummation of the Business
Combination on July 20, 2021, there were no taxes attributable to OppFi Inc. as
OppFi-LLC was the only reportable entity.

Net revenue

Net income decreased by $64.2 million, or 88.3%, to $8.5 million for the nine
months ended September 30, 2022 from $72.8 million for the nine months ended
September 30, 2021.

Net income attributable to Opfi Inc.

Net income attributable to OppFi Inc. was $4.0 million for the nine months ended
September 30, 2022. Net income attributable to OppFi Inc. represents the income
solely attributable to stockholders of OppFi Inc. for the nine months ended
September 30, 2022. As a result of the Company's Up-C structure, the underlying
income or expense components that are attributable to OppFi Inc. are generally
expense items related to OppFi Inc.'s status as a public company and the income
or expense for the change in fair value of warrant liabilities related to the
Company's warrants, as well as the Company's approximate percentage interest in
the non-controlling interest. The underlying income or expense components that
are attributable to OppFi Inc. for the nine months ended September 30, 2022 are
gain on change in fair value of warrant liabilities of approximately $7.0
million, partially offset by tax expense of approximately $2.3 million, payroll
and stock compensation expense of approximately $0.6 million, general and
administrative expense of approximately $0.5 million and board fees of
approximately $0.3 million, for total income attributable to OppFi Inc. of
approximately $3.3 million. The income also includes OppFi Inc.'s percentage
interest in the income attributable to non-controlling interest of approximately
$0.6 million, for net income attributable to OppFi Inc. of approximately $4.0
million.

The underlying income or expense components that are attributable to OppFi Inc.
for the nine months ended September 30, 2021 are gain on change in fair value of
warrant liabilities of approximately $13.1 million, partially offset by tax
expense of approximately $0.7 million, general and administrative expense of
approximately $0.1 million and board fees of approximately $0.1 million, for
total income attributable to OppFi Inc. of approximately $12.2 million. The
income also includes OppFi Inc.'s percentage interest in the income attributable
to non-controlling interest of approximately $1.9 million, for net income
attributable to OppFi Inc. of approximately $14.1 million.

CONDENSED BALANCE SHEET

Comparison of closed periods September 30, 2022 and December 31, 2021

The following table presents our condensed balance sheet September 30, 2022 and December 31, 2021 (in thousands):

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