IOU Financial Inc. announced an amendment to the exercise price of 200,000 stock options from $0.25 to $0.08, granted to The Howard Group on January 15, 2020. The shares linked to these options will have a four-month hold period post-amendment. IOU Financial specializes in providing small businesses in the U.S. and Canada with expedited access to capital, allowing loans of up to US$500,000 based on cash flow trends. This approach positions IOU Financial as a reliable alternative to traditional banks.
IOU Financial reported a significant impact from the COVID-19 pandemic on its Q2 2020 results, with loan originations dropping to US$2.2 million in April, before recovering to US$6.8 million by July. Overall, 76% year-over-year decrease in loan funding was noted with US$9.2 million in Q2. Adjusted operating expenses decreased 30% to $1.8 million. The company faced a net loss of $3.1 million, or $0.04 per share for Q2 2020. Provisions for loan losses rose sharply to $4.8 million from $1.8 million a year earlier. Despite challenges, IOU is positioned to capitalize on post-pandemic recovery.