ThinkSmart yesterday announced a $2.2 million interim profit for the six months to June 2008, with the doubtful and bad debt expense up 600 per cent.The point of sale financer increased provisioning for the half to $167,000, of which three quarters is unrecoverable, according to ThinkSmart chief financial officer Neil Barker."Those debts relate to our inertia portfolio. Losses in relation to the primary rental transaction go to the funder."As you would expect, we are seeing a greater percentage of debt being written off, and that gets factored into the discussions we have with our funders in terms of the ongoing contribution rate for losses."Revenue from ordinary activities was $19.8 million, up eleven per cent on the corresponding period, with a two cent 40 per cent franked dividend declared.The ThinkSmart purchasing finance product is offered in Australia through partners Dick Smith, JB Hi-Fi and Next Byte, and various other partners in New Zealand and four European countries, but the major market the company is attempting to tap is the United States through a partnership with Home Depot - which operates around 1,300 US stores.Barker said the United States rollout is progressing well, with 137 stores in Florida currently using the finance alternative, which he says has proven the operating model for other states to follow."California is planned to be rolled out in November, and we are already on our launch plan for Texas in mid September."The three states of Florida, California and Texas contain 38 per cent of all Home Depot stores."We are funding (United States) out of existing cash flows on a progressive basis, with funds from either Australia or the United Kingdom, which are both cash flow positive. So we are not borrowing the money."We are not hedging the future cash demands as they are not significant enough, due to no large capital spend - it's just ongoing revenue costs."An interesting key performance statistic is that the order value in Florida has increased 77 per cent, which Barker said customers tend to bundle, which means a laptop purchase may also include other peripherals and software, and also a warranty."And those products bundled tend to make a higher gross profit margin than the laptop."The results were released before trading began on the ASX, but it took until mid-afternoon before the shares traded - which appeared to be institutional buying or a smart day trader. Nine lines of 100,000 shares and eleven lines of 50,000 shares traded at 75 cents, then 733,000 shares were sold at 80 cents. These were the only trades. The 12-month high is $1.95 and the low fifty cents.