FlexShopper, Inc. Reports Resignation of Director and Appointment of New Board Member

On December 20, 2024, FlexShopper, Inc. (NASDAQ:FPAY) announced in a recent 8-K filing with the Securities and Exchange Commission key changes to its Board of Directors. Sean Hinze resigned as a director of the company, effective the same day, with no disagreements reported between him and the company on any operational matters. Simultaneously, Denis Echtchenko was elected to the Board of Directors.

Denis Echtchenko, 37, brings with him a wealth of experience in the corporate asset management sector, particularly in special situations and private equity investments within diverse industries such as consumer debt, aviation, and telecommunications. Echtchenko has held key investment and finance positions at reputable firms including PIMCO, Prospect Capital, Kraft Heinz, Bridgewater Associates, and J.P. Morgan. His extensive background equips him well to serve on FlexShopper’s Board, offering valuable insights into the consumer finance market and capital markets.

Echtchenko’s appointment to the Board of Directors aligns with the terms outlined in the Investor Rights Agreement dated June 10, 2016, between FlexShopper and B2 FIE, following B2 FIE’s purchase of FlexShopper’s series 2 preferred stock. As per the agreement, Echtchenko’s election fulfills B2 FIE’s right to nominate one director to the Board as long as their ownership percentage exceeds 10%.

Notably, there are no existing arrangements or agreements between Echtchenko and FlexShopper beyond the Investor Rights Agreement. Furthermore, Echtchenko has not engaged in any transactions with FlexShopper that warrant disclosure under Item 404(a) of Regulation S-K, and there are no familial ties between Echtchenko and FlexShopper’s executive officers or directors.

In a separate development, a notable amendment was made to the Employment Agreement between FlexShopper and H. Russell Heiser Jr., the Chief Executive Officer of the company. Effective December 20, 2024, the amendment entailed an increase in Heiser’s annual base salary to $587,000 from $460,000. Additionally, his target bonus under the STI Plan has been enhanced, and the company granted him 480,770 restricted stock units subject to vested timelines.

The terms of the Employment Agreement, apart from the mentioned changes, remain unchanged. The full text of this Employment Amendment has been filed as Exhibit 10.1 with the SEC.

With the addition of Denis Echtchenko to the Board of Directors, FlexShopper maintains a composition of five members on its Board. For further comprehensive information, interested parties are encouraged to refer to the company’s recent Form 8-K submission to the SEC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FlexShopper’s 8K filing here.

About FlexShopper

FlexShopper, Inc, a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories.