IOU Financial Inc. Releases Financial Results for the Fourth Quarter and Year Ended December 31, 2015

• Loan originations in 2015 increased by 47% year over year to a record $146.4 million.
• Total loans under management in 2015 was approximately $92.7 million, an increase of 63% over the previous year.
• Increase of 94% in year-over-year gross revenue to $12.0 million.
• Convertible debenture offering completed for $11.5 million of gross proceeds in 2015.

Montreal, Quebec--(Newsfile Corp. - April 22, 2016) - IOU FINANCIAL INC. (TSXV: IOU) ("IOU" or "the Company"), a leading online lender to small businesses, announced today its results for the fourth quarter and year ended December 31, 2015.

FINANCIAL HIGHLIGHTS

• Loan originations in the fourth quarter period ended December 31, 2015 were US$36.3 million, representing an increase of 9% over loan originations of US$33.2 million for the same period last year. Loan originations in 2015 were US$146.4 million, a 47% increase from US$99.5 million in 2014.
• On December 31, 2015, IOU Financial's total loans under management amounted to approximately $92.7 million as compared to $56.9 million at the end of 2014, representing an increase of 63% over the previous year. On December 31, 2015, the principal balance of the loan portfolio amounted to $27.5 million compared to $14.3 million at the end of 2014 while the principal balance of IOU Financial's servicing portfolio (loans being serviced on behalf of a third-party) amounted to approximately $65.2 million compared to $42.7 million at the end of 2014.
• IOU Financial recorded gross revenue for the quarter ended December 31, 2015 of $3.8 million versus $1.8 million for the quarter ended December 31, 2014, representing a 111% increase. IOU Financial recorded gross revenue during the year ended December 31, 2015 of $12.0 million versus $6.2 million for the year ended December 31, 2014, representing a 94% increase
• IOU Financial recorded net revenue for the quarter ended December 31, 2015 of $2.4 million versus $1.6 million for the quarter ended December 31, 2014, representing a 50% increase. IOU Financial recorded net revenue during the year ended December 31, 2015 of $7.7 million versus $5.1 million for the year ended December 31, 2014, representing a 52% increase.
• The Company closed its fourth quarter 2015 with a net loss attributable to common shareholders of $628,524, or $0.02 per share, compared to a net loss of $308,518 or $0.01 per share during the same period of 2014. The Company recorded a net loss attributable to common shareholders for the year ended December 31, 2015 of $3,658,473, or $0.06 per share, compared to a net loss of $1,318,656 or $0.03 per share during the same period of 2014.
• The Company closed its fourth quarter 2015 with adjusted earnings, which exclude certain non-cash and non-recurring items, of negative $491,677, compared to adjusted earnings of negative $190,600 in 2014. The Company recorded adjusted earnings for the year ended December 31, 2015 of negative $1,695,156, compared to negative $1,400,635 in 2014.

"In the past year, IOU Financial reached record loan originations. We are now firmly established as a preferred alternative lender in the United States and, with the launch of our services in the Canadian market, we will soon serve small businesses right across North America," said IOU Financial CEO Phil Marleau. "IOU Financial continues to lead innovation in the financial technology sector. Our strong market position positions us to deliver sustainable long term shareholder value," continued Mr. Marleau.

IOU Financial's financial statements and management discussion & analysis for the year ended December 31, 2015 have been filed on SEDAR and are available at www.sedar.com.

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, IOU Financial's advanced, automated application and approval system accurately assesses applicants' financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favourable to cash-flow management. IOU Financial's speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225 

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298