Emergent Capital (EMGC) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	IFT
Entity Registrant Name	Imperial Holdings, Inc.
Entity Central Index Key	1,494,448
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,130,508

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 52,478	$ 51,166	[1]
Prepaid expenses and other assets	1,776	1,502	[1]
Deposits-other	1,993	1,340	[1]
Deposits on purchases of life settlements	808	1,630	[1]
Structured settlement receivables, at estimated fair value	377	384	[1]
Structured settlement receivables at cost, net	576	597	[1]
Life settlements, at estimated fair value	122,471	82,575	[1]
Fixed assets, net	321	355	[1]
Investment in affiliates	2,384	2,384	[1]
Deferred debt costs, net	3,724	3,936	[1]
Total assets	541,263	459,931	[1]
Liabilities
Accounts payable and accrued expenses	4,813	6,140	[1]
Other liabilities	433	1,256	[1]
Senior unsecured convertible notes, net of discount	57,156	55,881	[1]
Senior secured notes, net of discount	48,300	24,036	[1]
Revolving Credit Facility debt, at estimated fair value	170,858	145,831
Deferred tax liability	6,279	8,728	[1]
Total liabilities	$ 290,956	$ 244,828	[1]
Commitments and Contingencies
Stockholders' Equity
Common stock (par value $0.01 per share, 80,000,000 authorized; 28,130,508 and 21,402,990 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively)	$ 281	$ 214	[1]
Preferred stock (par value $0.01 per share, 40,000,000 authorized; 0 issued and outstanding as of June 30, 2015 and December 31, 2014)
Additional paid-in-capital	$ 305,342	$ 266,705	[1]
Accumulated deficit	(55,316)	(51,816)	[1]
Total stockholders' equity	250,307	215,103	[1]
Total liabilities and stockholders' equity	541,263	459,931	[1]
Primary Beneficiary Variable Interest Entity
Assets
Cash and cash equivalents	3,172	3,751	[1]
Life settlements, at estimated fair value	316,515	306,311	[1]
Receivable for maturity of life settlements	34,668	4,000	[1]
Liabilities
Accounts payable and accrued expenses	441	423	[1]
Revolving Credit Facility debt, at estimated fair value	170,858	145,831	[1]
8.50% Senior Unsecured Convertible Notes Due 2019
Assets
Deferred debt costs, net	2,000
Liabilities
Interest payable	2,272	2,272	[1]
Senior unsecured convertible notes, net of discount	57,200
12.875% Senior Secured Notes Due 2017
Liabilities
Interest payable	404	$ 261	[1]
Senior secured notes, net of discount	$ 50,000
[1]	Derived from audited consolidated financial statements.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014	[1]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	28,130,508	21,402,990
Common stock, shares outstanding	28,130,508	21,402,990
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	40,000,000	40,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
[1]	Derived from audited consolidated financial statements.

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2015		Jun. 30, 2014		Jun. 30, 2015		Jun. 30, 2014
Income
Interest income					$ 64		$ 66
Loss on life settlements, net			$ (67)				(426)
Change in fair value of life settlements (Notes 8 & 12)	$ 28,002		9,000		40,914		22,956
Other income	28		52		91		55
Total income	28,034		8,996		41,015		22,598
Expenses
Interest expense	6,600		4,061		12,877		6,862
Change in fair value of Revolving Credit Facility debt (Notes 9 & 12)	13,552		2,689		17,692		3,818
Change in fair value of conversion derivative liability (Notes 10 & 12)			4,697				6,759
Personnel costs	1,752		2,548		3,480		4,716
Legal fees	3,214		3,335		6,975		6,179
Professional fees	1,382		1,248		3,705		2,420
Insurance	312		416		658		839
Other selling, general and administrative expenses	578		476		1,086		822
Total expenses	27,390		19,470		46,473		32,415
Income (loss) from continuing operations before income taxes	644		(10,474)		(5,458)		(9,817)
Benefit for income taxes	322		4,193		2,260		217
Net income (loss) from continuing operations	966	[1]	(6,281)	[2]	(3,198)	[3]	(9,600)	[2]
Discontinued Operations:
Loss from discontinued operations	(236)		(185)		(492)		(204)
Benefit for income taxes	91				190
Net loss from discontinued operations	(145)	[1]	(185)	[2]	(302)	[3]	(204)	[2]
Net income (loss)	$ 821	[1]	$ (6,466)	[2]	$ (3,500)	[3]	$ (9,804)	[2]
Basic and diluted income (loss) per share:
Continuing operations	$ 0.04		$ (0.29)		$ (0.15)		$ (0.45)
Discontinued operations			(0.01)		(0.01)		(0.01)
Basic and diluted income (loss) per share available to common shareholders	$ 0.04	[1]	$ (0.30)	[2]	$ (0.16)	[3]	$ (0.46)	[2]
Weighted average shares outstanding:
Basic	21,961,034	[1]	21,350,200	[2]	21,663,137	[3]	21,347,173	[2]
Diluted	21,964,904	[1]	21,350,200	[2]	21,663,137	[3]	21,347,173	[2]
Continuing Operations
Income
Interest income	$ 4		$ 11		$ 10		$ 13
[1]	The computation of diluted EPS includes 3,870 incremental shares of restricted stock, but does not include 794,617 options, 6,240,521 warrants, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.
[2]	The computation of diluted EPS does not include 815,448 options, 6,240,521 warrants, 41,060 shares of restricted stock, up to 10,464,491 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months and six months ended June 30, 2014, as the effect of their inclusion would have been anti-dilutive.
[3]	The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total		Common Stock	Additional Paid-in Capital	(Accumulated Deficit)
Beginning Balance (in shares) at Dec. 31, 2014			21,402,990
Beginning Balance at Dec. 31, 2014	$ 215,103	[1]	$ 214	$ 266,705	$ (51,816)
Net loss	(3,500)	[2]			(3,500)
Stock-based compensation (in shares)			41,259
Stock-based compensation	368			368
Common stock issued for rights offering, net of costs (in shares)			6,688,433
Common stock issued for rights offering, net of costs	38,348		$ 67	38,281
Retirement of common stock, shares			(2,174)
Retirement of common stock, value	(12)			(12)
Ending Balance (in shares) at Jun. 30, 2015			28,130,508
Ending Balance at Jun. 30, 2015	$ 250,307		$ 281	$ 305,342	$ (55,316)
[1]	Derived from audited consolidated financial statements.
[2]	The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015		Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (3,500)	[1]	$ (9,804)	[2]
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	49		45
Revolving Credit Facility financing cost and fees	3,688		3,193
Stock-based compensation expense	368		561
Change in fair value of life settlements	(40,914)		(22,956)
Unrealized change in fair value of structured settlements	(16)		(16)
Change in fair value of Revolving Credit Facility debt	17,692		3,818
Loss on life settlements, net			426
Interest income	(64)		(66)
Change in fair value of conversion derivative liability			6,759
Deferred income tax	(2,450)		(217)
Change in assets and liabilities:
Restricted cash			13,506
Deposits-other	(654)		218
Investment in affiliates			(7)
Structured settlement receivables	100		587
Prepaid expenses and other assets	(359)		(705)
Accounts payable and accrued expenses	(1,431)		804
Other liabilities	(805)		(14,074)
Interest payable	143		2,171
Net cash used in operating activities	(26,148)		(14,804)
Cash flows from investing activities
Purchase of fixed assets, net of disposals	(10)		(12)
Purchase of life settlements	(25,905)
Premiums paid on life settlements	(31,417)		(26,886)
Proceeds from sale of life settlements, net			4,031
Proceeds from maturity of life settlements	19,187		11,541
Deposits on purchase of life settlements	(808)
Net cash used in investing activities	(38,953)		(11,326)
Cash flows from financing activities
Borrowings from Revolving Credit Facility	22,225		23,931
Repayment of borrowings under Revolving Credit Facility	(18,577)		(6,006)
Proceeds from senior unsecured convertible notes, net			67,892
Proceeds from rights offering	38,458
Payment under finance lease obligations	(17)
Proceeds from senior secured notes, net	23,750
Deferred costs	(5)
Net cash provided by financing activities	65,834		85,817
Net increase in cash and cash equivalents	733		59,687
Cash and cash equivalents, at beginning of the period	54,917		22,699
Cash and cash equivalents, at end of the period	55,650		82,386
Supplemental disclosures of cash flow information:
Cash paid for interest during the period	7,408		1,017
Supplemental disclosures of non-cash financing activities:
Interest payment and fees withheld from borrowings by lender	3,688		3,193
8.50% Senior Unsecured Convertible Notes Due 2019
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount and deferred cost for notes	1,464		953
Change in fair value of conversion derivative liability			$ 6,759
12.875% Senior Secured Notes Due 2017
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount and deferred cost for notes	$ 541
[1]	The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.
[2]	The computation of diluted EPS does not include 815,448 options, 6,240,521 warrants, 41,060 shares of restricted stock, up to 10,464,491 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months and six months ended June 30, 2014, as the effect of their inclusion would have been anti-dilutive.

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2015
Description of Business	(1) Description of Business Founded in December 2006 as a Florida limited liability company, Imperial Holdings, LLC, converted into Imperial Holdings, Inc. (with its subsidiary companies, the “Company” or “Imperial”) on February 3, 2011, in connection with the Company’s initial public offering. Incorporated in Florida, Imperial, through its subsidiary companies, owns a portfolio of 633 life insurance policies, also referred to as life settlements, with a fair value of $439.0 million and an aggregate death benefit of approximately $3.0 billion at June 30, 2015. The Company primarily earns income on these policies from changes in their fair value and through death benefits. 439 of these policies, with an aggregate death benefit of approximately $2.2 billion and an estimated fair value of approximately $316.5 million at June 30, 2015 are pledged under a $300.0 million, 15-year revolving credit agreement (the “Revolving Credit Facility”) entered into by the Company’s indirect subsidiary, White Eagle Asset Portfolio, LP (“White Eagle”). The majority of the Company’s other assets, including the 194 policies that are not pledged as collateral under the Revolving Credit Facility, with an aggregate death benefit of approximately $779.6 million and an estimated fair value of approximately $122.5 million at June 30, 2015 were pledged as collateral under an indenture governing $50.0 million in aggregate principal amount of 12.875% Senior Secured Notes issued by the Company (the “Secured Notes”) that were outstanding at June 30, 2015. The Secured Notes were redeemed on July 16, 2015, see Note 17, Subsequent Events.

Principles of Consolidation and

Principles of Consolidation and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Principles of Consolidation and Basis of Presentation	(2) Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, all of its wholly-owned subsidiary companies and its special purpose entities, with the exception of Imperial Settlements Financing 2010, LLC (“ISF 2010”), an unconsolidated special purpose entity which is accounted for using the cost method of accounting. The special purpose entity has been created to fulfill specific objectives. All significant intercompany balances and transactions have been eliminated in consolidation, including income from services performed by subsidiary companies in connection with the Revolving Credit Facility. Notwithstanding consolidation, as referenced above, White Eagle is the owner of 439 policies, with an aggregate death benefit of approximately $2.2 billion and an estimated fair value of approximately $316.5 million at June 30, 2015. The unaudited consolidated financial statements have been prepared in conformity with the rules and regulations of the SEC for Form 10-Q and therefore do not include certain information, accounting policies, and footnote disclosures information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. However, all adjustments (consisting of normal recurring accruals), which, in the opinion of management, are necessary for a fair presentation of the financial statements, have been included. Operating results for the three months and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for future periods or for the year ended December 31, 2015. These interim financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Imperial’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Discontinued Operations On October 25, 2013, the Company sold substantially all of the assets comprising its structured settlement business to Majestic Opco L.L.C for $12.0 million pursuant to an Asset Purchase Agreement. As a result, the Company has discontinued segment reporting and classified its operating results of the structured settlement business as discontinued operations. The accompanying consolidated balance sheets of the Company as of June 30, 2015 and December 31, 2014, and the related consolidated statements of operations for each of the three months and six months ended June 30, 2015 and 2014, and the related notes to the consolidated financial statements reflect the classification of its structured settlement business operating results as discontinued operations. See Note 7, “Discontinued Operations,” for further information. Unless otherwise noted, the following notes refer to the Company’s continuing operations. Derivative Instruments In February 2014, the Company issued and sold $70.7 million in aggregate principal amount of 8.50% senior unsecured convertible notes due 2019 (the “Convertible Notes”). Prior to shareholder approval on June 5, 2014 to issue shares of common stock upon conversion of the Convertible Notes in excess of New York Stock Exchange limits for share issuances without shareholder approval, the Convertible Notes contained an embedded derivative feature. In accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging Foreign Currency The Company owns certain foreign subsidiary companies formed under the laws of Ireland, Bahamas and Bermuda. These foreign subsidiary companies utilize the U.S. dollar as their functional currency. Any gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the subsidiary companies functional currency) are included in income. These gains and losses are immaterial to the Company’s financial statements. Use of Estimates The preparation of these consolidated financial statements, in conformity with generally accepted accounting principles in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates and such differences could be material. Significant estimates made by management include income taxes, the valuation of life settlements, the valuation of the debt owing under the Revolving Credit Facility, the valuation of equity awards and the valuation of the conversion derivative liability formerly embedded within the Company’s Senior Unsecured Convertible Notes.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements	(3) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (‘FASB’) issued Accounting Standards Update (“ASU’) No. 2014-09, “Revenue from Contracts with Customers,” which converges the FASB and the International Accounting Standards Board standard on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. In April 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year. As a result, the provisions of this ASU are now effective for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements or related disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” The standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect that this guidance will have a material impact on its financial position, results of operations or cash flows. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This guidance focuses on a reporting company’s consolidation evaluation to determine whether they should consolidate certain legal entities. This guidance is effective for annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect that this pronouncement will have on its consolidated financial statements, but does not anticipate it will be material. In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30).” This standard provides guidance on the balance sheet presentation for debt issuance costs and debt discounts and debt premiums. To simplify the presentation of debt issuance costs, this standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This ASU is effective for fiscal years beginning after December 15, 2015. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date.

Consolidation of Variable Inter

Consolidation of Variable Interest Entities	6 Months Ended
	Jun. 30, 2015
Consolidation of Variable Interest Entities	(4) Consolidation of Variable Interest Entities The Company evaluates its interests in variable interest entities (“VIEs”) on an ongoing basis and consolidates those VIEs in which it has a controlling financial interest and is thus deemed to be the primary beneficiary. A controlling financial interest has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact its economic performance; and (ii) the obligation to absorb losses of the VIE that could potentially be significant to it or the right to receive benefits from the VIE that could be significant to the VIE. The following table presents the consolidated assets and consolidated liabilities of VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated in the Company’s consolidated financial statements as of June 30, 2015 as well as non-consolidated VIEs for which the Company has determined it is not the primary beneficiary (in thousands): Not Primary Primary Beneficiary Beneficiary Consolidated VIEs Non-consolidated VIEs Maximum Total Exposure Assets Liabilities Assets To Loss June 30, 2015 $ 354,355 $ 171,299 $ 2,384 $ 2,384 December 31, 2014 $ 314,062 $ 146,254 $ 2,384 $ 2,384 As of June 30, 2015, 439 life insurance policies owned by White Eagle with an aggregate death benefit of approximately $2.2 billion and an estimated fair value of approximately $316.5 million were pledged as collateral under the Revolving Credit Facility. In accordance with ASC 810, Consolidation

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share	(5) Earnings Per Share As of June 30, 2015 and 2014, there were 28,130,508 and 21,402,990 issued and outstanding shares of common stock, respectively. Basic net income per share is computed by dividing the net earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding, increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Conversion or exercise of the potential common shares is not reflected in diluted earnings per share unless the effect is dilutive. The dilutive effect, if any, of outstanding common share equivalents is reflected in diluted earnings per share by application of the treasury stock method, as applicable The following tables reconcile actual basic and diluted earnings per share for the three months and six months ended June 30, 2015 and 2014 (in thousands except share and per share data). For the Three Months For the Six Months Ended June 30, Ended June 30, 2015(1) 2014(2) 2015(3) 2014(2) Income (loss) per share: Numerator: Net income (loss) from continuing operations $ 966 $ (6,281 ) $ (3,198 ) $ (9,600 ) Net loss from discontinued operations $ (145 ) $ (185 ) $ (302 ) $ (204 ) Net income (loss) $ 821 $ (6,466 ) $ (3,500 ) $ (9,804 ) Basic and diluted income (loss) per common share: Basic and diluted income (loss) from continuing operations $ 0.04 $ (0.29 ) $ (0.15 ) $ (0.45 ) Basic and diluted loss from discontinued operations $ — $ (0.01 ) $ (0.01 ) $ (0.01 ) Basic and diluted income (loss) per share available to common shareholders $ 0.04 $ (0.30 ) $ (0.16 ) $ (0.46 ) Denominator: Basic 21,961,034 21,350,200 21,663,137 21,347,173 Add: Restricted stock 3,870 — — — Diluted 21,964,904 21,350,200 21,663,137 21,347,173 (1) The computation of diluted EPS includes 3,870 incremental shares of restricted stock, but does not include 794,617 options, 6,240,521 warrants, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive. (2) The computation of diluted EPS does not include 815,448 options, 6,240,521 warrants, 41,060 shares of restricted stock, up to 10,464,491 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months and six months ended June 30, 2014, as the effect of their inclusion would have been anti-dilutive. (3) The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2015
Stock-based Compensation	(6) Stock-based Compensation In 2015, the Company amended and restated the Imperial Holdings 2011 Omnibus Incentive Plan (as amended and restated, the “Omnibus Plan”) to continue to attract, retain and motivate participating employees and to attract and retain well-qualified individuals to serve as members of the board of directors, consultants and advisors through the use of incentives based upon the value of its common stock. Awards under the Omnibus Plan may consist of incentive awards, stock options, stock appreciation rights, performance shares, performance units, and shares of common stock, restricted stock, restricted stock units or other stock-based awards as determined by the compensation committee. The Omnibus Plan provides for an aggregate of 2,700,000 shares of common stock to be reserved for issuance under the Omnibus Plan, subject to adjustment as provided in the Omnibus Plan. During the year ended December 31, 2013, the Company issued 545,000 options to employees at a strike price of $6.94. The Company recognized approximately $104,000 and $152,000 in stock-based compensation expense relating to stock options it granted under the Omnibus Plan during the three months ended June 30, 2015 and 2014, respectively, and approximately $237,000 and $492,000 during the six months ended June 30, 2015 and 2014, respectively. The Company incurred additional stock-based compensation expense of approximately $71,000 and $39,000 relating to restricted stock granted to its board of directors during the three months ended June 30, 2015 and 2014, respectively, and approximately $131,000 and $69,000 during the six months ended June 30, 2015 and 2014, respectively. During 2014, the Company awarded 323,500 target performance shares for restricted common stock to its directors and certain employees, of which 150,000 shares were subject to shareholder approval of the Omnibus Plan at the Company’s 2015 annual meeting, which was obtained on May 28, 2015. The issuance of the performance shares is contingent on the Company’s financial performance, as well as the performance of the Company’s common stock through June 30, 2016, with the actual shares to be issued ranging between 0 – 150% of the target performance shares. The Company evaluates on a quarterly basis whether it is probable that the Company’s financial performance conditions will be achieved. At June 30, 2015, the Company determined that it was not probable that the performance conditions would be achieved and as a result, no related expense was recognized for the three months and six months ended June 30, 2015. Options As of June 30, 2015, options to purchase 794,617 shares of common stock were outstanding and unexercised under the Omnibus Plan at a weighted average exercise price of $8.49 per share. The following table presents the activity of the Company’s outstanding stock options of common stock for the six months ended June 30, 2015: Weighted Average Weighted Remaining Aggregate Number of Average Price Contractual Intrinsic Common Stock Options Shares per Share Term Value Options outstanding, January 1, 2015 807,949 $ 8.50 4.48 — Options granted — — — — Options exercised — — — — Options forfeited — $ — — — Options expired (13,332 ) 9.23 3.80 — Options outstanding, June 30, 2015 794,617 $ 8.49 3.99 — Exercisable at June 30, 2015 794,617 $ 8.49 3.99 — Unvested at June 30, 2015 — — — — As of June 30, 2015, all outstanding stock options had an exercise price above the fair market value of the common stock on that date. During the three months ended June 30, 2015 and 2014, the Company recognized expense of $104,000 and $152,000, respectively, related to these options and $237,000 and $492,000 during the six months ended June 30, 2015 and 2014, respectively. There are no remaining unamortized amounts to be recognized on these options. Restricted Stock 17,286 shares of restricted stock granted to the Company’s directors under the Omnibus Plan vested during the quarter ended June 30, 2014. The fair value of the vested restricted stock was valued at approximately $120,000 based on the closing price of the Company’s shares on the day prior to the grant date. The Company expensed approximately $22,000 and $52,000 in stock based compensation related to the 17,286 shares of restricted stock during the three months and six months ended June 30, 2014, respectively. Under the Omnibus Plan, 41,060 shares of restricted stock granted to the Company’s directors vested during the quarter ended June 30, 2015. The fair value of the vested restricted stock was valued at approximately $255,000 based on the closing price of the Company’s shares on the day prior to the grant date. The Company incurred additional stock-based compensation expense of approximately $17,000 related to these 41,060 shares of restricted stock during the three months and six months ended June 30, 2014 and approximately $49,000 and $108,000 during the three months and six months ended June 30, 2015, respectively. During the quarter ended June 30, 2015, 41,259 shares of restricted stock were granted to the Company’s directors under the Omnibus Plan, which are subject to a one year vesting period that commenced on the date of grant. The fair value of the unvested restricted stock was valued at approximately $255,000 based on the closing price of the Company’s shares on the day prior to the grant date. The Company expensed approximately $22,000 in stock based compensation related to the restricted stock during the three month and six month periods ended June 30, 2015. The following table presents the activity of the Company’s unvested shares of restricted stock for the six months ended June 30, 2015: Number of Common Unvested Shares Shares Outstanding January 1, 2015 41,060 Granted 41,259 Vested (41,060 ) Forfeited — Outstanding June 30, 2015 41,259 The aggregate intrinsic value of these awards is $238,000 and the remaining weighted average life of these awards is 0.9 years as of June 30, 2015. Performance Shares During 2014, the Company awarded 323,500 target performance shares for restricted common stock to its directors and certain employees, of which 150,000 shares were subject to shareholder approval of the Omnibus Plan, which was obtained at the Company’s 2015 annual meeting on May 28, 2015. The issuance of the performance shares is contingent on the Company’s financial performance, as well as the performance of the Company’s common stock through June 30, 2016, with the actual shares to be issued ranging between 0 – 150% of the target performance shares. At June 30, 2015, the Company determined that it was not probable that the performance conditions would be achieved and no related expense was recognized for the three months and six months ended June 30, 2015. Once issued, the performance shares will be subject to a one year vesting period from the date of issuance. The following table presents the activity of the Company’s performance share awards for the six months ended June 30, 2015: Performance Shares Number of Shares Outstanding January 1, 2015 323,500 Awarded — Vested — Forfeited — Outstanding June 30, 2015 323,500 Warrants On February 11, 2011, three shareholders received warrants that may be exercised for up to a total of 4,240,521 shares of the Company’s common stock at a weighted average exercise price of $14.51 per share. The warrants will expire seven years after the date of issuance and are exercisable as they are fully vested. At June 30, 2015, 4,240,521 warrants were exercisable with a weighted average exercise price of $14.51. In connection with a settlement of class action litigation arising in connection with the USAO Investigation, the Company issued warrants to purchase two million shares of the Company’s stock into an escrow account in April of 2014. The estimated fair value as of the measurement date of such warrants was $5.4 million, which is included in stockholders’ equity. The warrants were distributed in October 2014 and have a five-year term from the date they are distributed to the class participants with an exercise price of $10.75. The Company is obligated to file a registration statement to register the shares underlying the warrants with the SEC if shares of the Company’s common stock have an average daily trading closing price of at least $8.50 per share for a 45 day period. The warrants will be exercisable upon effectiveness of the registration statement.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations	(7) Discontinued Operations On October 25, 2013, the Company sold substantially all of the operating assets comprising its structured settlement business for gross proceeds of $12.0 million. No structured settlement receivables were sold and no on-balance sheet liabilities were transferred in connection with the sale. This sale resulted in the recognition of a gain of $11.3 million in the fourth quarter of 2013. As a result of the sale, the Company reclassified its structured settlement business operating results as discontinued operations in the accompanying Consolidated Statements of Operations for all periods presented and the Company has discontinued segment reporting. All other footnotes in these financial statements that were affected by this reclassification of discontinued operations have been updated accordingly. Operating results related to the Company’s discontinued structured settlement business are as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total income $ 38 $ 38 $ 73 $ 112 Total expenses (274 ) (223 ) (565 ) (316 ) Loss before income taxes (236 ) (185 ) (492 ) (204 ) Income tax benefit 91 — 190 — Net loss from discontinued operations $ (145 ) $ (185 ) $ (302 ) $ (204 )

Life Settlements (Life Insuranc

Life Settlements (Life Insurance Policies)	6 Months Ended
	Jun. 30, 2015
Life Settlements (Life Insurance Policies)	(8) Life Settlements (Life Insurance Policies) The Company accounts for policies it acquires using the fair value method in accordance with ASC 325-30-50 Investments—Other—Investment in Insurance Contracts As of June 30, 2015 and December 31, 2014, the Company owned 633 and 607 policies, respectively, with an aggregate estimated fair value of life settlements of $439.0 million and $388.9 million, respectively. The weighted average life expectancy calculated based on death benefit of insureds in the policies owned by the Company at June 30, 2015 was 10.2 years. The following table describes the Company’s life settlements as of June 30, 2015 (dollars in thousands): Number of Life Settlement Fair Face Remaining Life Expectancy (In Years) Contracts Value Value 0 - 1 — $ — $ — 1 - 2 6 13,668 20,345 2 - 3 22 54,509 102,150 3 - 4 18 28,368 68,761 4 - 5 23 26,165 75,763 Thereafter 564 316,276 2,715,397 Total 633 $ 438,986 $ 2,982,416 The weighted average life expectancy calculated based on death benefit of insureds in the policies owned by the Company at December 31, 2014 was 10.7 years. The following table describes the Company’s life settlements as of December 31, 2014 (dollars in thousands): Remaining Life Expectancy (In Years) Number of Life Settlement Contracts Fair Value Face Value 0-1 — $ — $ — 1-2 4 9,227 12,728 2-3 10 23,202 45,852 3-4 16 29,531 67,735 4-5 19 23,012 65,614 Thereafter 558 303,914 2,739,137 Total 607 $ 388,886 $ 2,931,066 Estimated premiums to be paid for each of the five succeeding fiscal years to keep the life insurance policies in force as of June 30, 2015, are as follows (in thousands): Remainder of 2015 $ 31,344 2016 66,913 2017 73,434 2018 75,850 2019 82,699 Thereafter 1,098,012 $ 1,428,252 The amount of $1.43 billion noted above represents the estimated total future premium payments required to keep the life insurance policies in force during the life expectancies of all the underlying insured lives and does not give effect to projected receipt of death benefits. The estimated total future premium payments could increase or decrease significantly to the extent that actual mortalities of insureds differs from the estimated life expectancies.

Debt Disclosure

Debt Disclosure	6 Months Ended
	Jun. 30, 2015
8.50% Senior Unsecured Convertible Notes Due 2019
Debt Disclosure	(10) 8.50% Senior Unsecured Convertible Notes In February 2014, the Company issued $70.7 million in an aggregate principal amount of 8.50% senior unsecured convertible notes due 2019. The Convertible Notes were sold, in part, to certain accredited investors pursuant to Regulation D under the Securities Act of 1933 and, in part, to an initial purchaser who then resold such Convertible Notes to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933. The Convertible Notes were issued pursuant to an indenture dated February 21, 2014, between the Company and U.S. Bank National Association, as trustee. Two members of the Company’s Board of Directors, Messrs. Dakos and Goldstein, are affiliated with Bulldog Investors, LLC, who purchased Convertible Notes in the aggregate principal amount of $9.2 million in the offering. The Convertible Notes are general senior unsecured obligations and rank equally in right of payment with all of the Company’s other existing and future senior unsecured indebtedness. The Convertible Notes are effectively subordinate to all of the Company’s secured indebtedness to the extent of the value of the assets collateralizing such indebtedness. The Convertible Notes are not guaranteed by the Company’s subsidiaries. The maturity date of the Convertible Notes is February 15, 2019. The Convertible Notes accrue interest at the rate of 8.50% per annum on the principal amount of the Convertible Notes, payable semi-annually in arrears on August 15 and February 15 of each year. The Convertible Notes are convertible into shares of common stock at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. Initially, the Convertible Notes were convertible into shares of common stock at a conversion rate of 147.9290 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of $6.76 per share of common stock). In the second quarter of 2015, the conversion rate was adjusted to 151.7912 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of $6.59 per share of common stock) in connection with anti-dilution adjustment triggered by a rights offering for, and issuance of, 6,688,433 shares of the Company’s stock. The Company may not redeem the Convertible Notes prior to February 15, 2017. On and after February 15, 2017, and prior to the maturity date, the Company may redeem for cash all, but not less than all, of the Convertible Notes if the last reported sale price of the Company’s common stock equals or exceeds 130% of the applicable conversion price for at least 20 trading days during the 30 consecutive trading day period ending on the trading day immediately prior to the date the Company delivers notice of the redemption. The redemption price will be equal to 100% of the principal amount of the Convertible Notes, plus any accrued and unpaid interest to, but excluding, the redemption date. In addition, if the Company calls the Convertible Notes for redemption, a make-whole fundamental charge will be deemed to occur. As a result, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares of common stock for holders who convert their notes prior to the redemption date. The Company determined that an embedded conversion option existed in the Convertible Notes, prior to June 5, 2014, that was required to be separately accounted for as a derivative under ASC 815 which required the Company to bifurcate the embedded conversion option and record it as a liability at fair value and record a debt discount by an equal amount with changes in the fair value of the conversion derivative liability recorded in earnings and the discount on the debt liability, together with the stated interest on the instrument, amortized to interest expense over the life of the debt using the effective interest method. On June 5, 2014, the Company obtained shareholder approval to issue shares of common stock upon conversion of the Convertible Notes in an amount that exceeded applicable New York Stock Exchange limits for issuances without shareholder approval. In accordance with ASC 815, the Company reclassified the embedded conversion derivative liability to equity along with unamortized transaction costs proportionate to the allocation of the initial debt discount and the principal amount of the Convertible Notes. The Convertible Notes are recorded at accreted value and will continue to be accreted up to the par value of the Convertible Notes at maturity. The fair value of the conversion derivative liability was estimated at June 5, 2014 using a Black Scholes pricing model with the following assumptions: As of June 5, 2014 Expected Volatility 40.0 % Expected Term in Years 4.7 Risk Free Rate 1.5 % At June 5, 2014, the fair value of the conversion derivative liability was $23.7 million. In accordance with ASC 815, the Company reclassified this amount along with $756,000 of unamortized transaction costs offset by deferred taxes of $8.8 million to stockholders’ equity. As of June 30, 2015, the carrying value of the Convertible Notes was $57.2 million. The unamortized debt discount and origination cost of $13.6 million and $2.0 million, respectively, will be amortized over the remaining life of the Convertible Notes, using the effective interest method. The Company recorded $2.3 million and $2.2 million of interest expense on the Convertible Notes, including $1.5 million, $661,000 and $98,000 and $1.5 million, $554,000 and $101,000 from interest, amortizing debt discounts and issuance costs, during the three months ended June 30, 2015 and 2014, respectively. During the six months ended June 30, 2015 and 2014, the Company recorded $4.5 million and $3.1 million of interest expense on the Convertible Notes, including $3.0 million, $1.3 million and $189,000 and $2.2 million, $804,000 and $149,000 from interest, amortizing debt discounts and issuance costs, respectively. During the three months and six months ended June 30, 2014, the Company recorded a loss on the change in fair value of the conversion derivative liability of $4.7 million and $6.8 million, respectively.
Twelve Point Eight Seven Five Percent Senior Secured Notes
Debt Disclosure	(11) 12.875% Senior Secured Notes On November 10, 2014 (the “Initial Closing Date”), the Company, as issuer, entered into an indenture (the “Secured Note Indenture”) with certain of its subsidiary companies, Harbordale, LLC, Imperial Finance & Trading, LLC, Imperial Life and Annuity Services, LLC, Imperial Litigation Funding, LLC, Imperial Premium Finance, LLC, Red Reef Alternative Investments, LLC and Washington Square Financial, LLC, as guarantors (the “Guarantors”), and Wilmington Trust Company, as indenture trustee. The indenture provided for the issuance of up to $100 million in senior secured notes, of which $25 million was issued by the Company on the Initial Closing Date. The Secured Notes issued on the Initial Closing Date were issued at 96% of their face amount and were purchased under a note purchase agreement (the “Note Purchase Agreement”) with the Company and the Guarantors by an affiliate of Indaba Capital Management, L.P. (the “Purchaser”) in a private transaction pursuant to exemptions from the registration requirements of the Securities Act of 1933, as amended. On January 21, 2015, the Company issued an additional $25 million in aggregate principal amount of Secured Notes, which were purchased by the Purchaser under the Note Purchase Agreement at 96% of their principal amount. Fees and expenses paid by the Company in connection with the Initial Closing Date and its subsequent issuance were approximately $1.8 million and $305,000, respectively. The Note Purchase Agreement provided the Purchaser the right, subject to applicable law, to appoint one director to Imperial’s board of directors so long as it maintains a voting percentage of at least 5% of Imperial’s common stock and holds at least $25 million in principal amount or market value of Imperial’s debt. Interest on issued Secured Notes accrued at 12.875% per annum and all Secured Notes issued under the indenture was scheduled to mature on November 10, 2017 although Imperial could have elected to extend the maturity date by an additional 12 months (the “Extended Term”) and, if elected, interest on the Secured Notes would have accrued at 14.5% during the Extended Term. The Secured Notes were guaranteed by the Guarantors and were secured by substantially all of the Company’s and Guarantors’ assets, other than those securing the Revolving Credit Facility, including cash on account as well as the Company’s life insurance policies that were not pledged as collateral under the Revolving Credit Facility. The Secured Notes were also secured by pledges of the equity interests of the Guarantors and by pledges of 65% of their first tier foreign subsidiary companies. As of June 30, 2015, 194 life insurance policies owned by the Company with an aggregate death benefit of approximately $779.6 million and an estimated fair value of approximately $122.5 million were pledged as collateral as security for the Secured Notes. As of June 30, 2015, the outstanding principal balance of the Secured Notes was $50.0 million. The Company recorded $2.0 million of interest expense on the Secured Notes, including $1.6 million, $126,000, $147,000 and $149,000 from interest, unused fees, amortizing debt discounts and issuance costs, during the three months ended June 30, 2015 and $3.8 million of interest expense on the Secured Notes, including $3.0 million, $255,000, $264,000 and $277,000 from interest, unused fees, amortizing debt discounts and issuance costs, during the six months ended June 30, 2015. On July 16, 2015, all outstanding Secured Notes were redeemed and the Secured Note Indenture was terminated. See Note 17, Subsequent Events.
Revolving Credit Facility
Debt Disclosure	(9) Revolving Credit Facility Effective April 29, 2013, White Eagle entered into a 15-year revolving credit agreement with LNV Corporation, as initial lender, Imperial Finance & Trading, LLC, as servicer and portfolio manager and CLMG Corp., as administrative agent, providing for up to $300.0 million in borrowings. Proceeds from the initial advance under the facility were used, in part, to retire a bridge facility and to fund a payment to the lender protection insurance provider to release subrogation rights in certain of the policies pledged as collateral for the Revolving Credit Facility. On May 16, 2014, White Eagle Asset Portfolio, LLC converted from a Delaware limited liability company to White Eagle Asset Portfolio, LP, a Delaware limited partnership (the “Conversion”) and all of its ownership interests were transferred to an indirect, wholly-owned Irish subsidiary of the Company. In connection with the Conversion, the Revolving Credit Facility was amended and restated among White Eagle, as borrower, Imperial Finance and Trading, LLC, as the initial servicer, the initial portfolio manager and guarantor, Lamington Road Bermuda Ltd., as portfolio manager, LNV Corporation, as initial lender, the other financial institutions party thereto as lenders, and CLMG Corp., as administrative agent for the lenders. As of June 30, 2015, 439 life insurance policies owned by White Eagle with an aggregate death benefit of approximately $2.2 billion and an estimated fair value of approximately $316.5 million are pledged as collateral under the Revolving Credit Facility. General & Security Borrowing Base. Amortization & Distributions. Use of Proceeds. Interest. Interest expense for the cash portion of interest paid during the period is recorded in the Company’s consolidated financial statements. Accrued interest is reflected as a component of the estimated fair value of the Revolving Credit Facility debt. Interest expense on the facility was $2.3 million and $1.9 million, which includes $1.7 million and $1.4 million withheld from borrowings by the lender and $622,000 and $518,000 paid by White Eagle, for the three months ended June 30, 2015 and 2014, respectively. During the six months ended June 30, 2015 and 2014, interest expense on the facility was $4.6 million and $3.7 million, which includes $3.3 million and $2.7 million withheld from borrowings by the lender and $1.2 million and $1.0 million paid by White Eagle, respectively. Maturity. Covenants/Events of Defaults Remedies. The Company elected to account for the debt under the Revolving Credit Facility, which includes the 50% interest in policy proceeds to the lender, using the fair value method. The fair value of the debt is the amount the Company would have to pay to transfer the debt to a market participant in an orderly transaction. The Company calculated the fair value of the debt using a discounted cash flow model taking into account the stated interest rate of the credit facility and probabilistic cash flows from the pledged policies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the Company’s estimates are not necessarily indicative of the amounts that the Company, or holders of the instruments, could realize in a current market exchange. The most significant assumptions are the estimates of life expectancy of the insured and the discount rate. The use of different assumptions and/or estimation methodologies could have a material effect on the estimated fair values. At June 30, 2015, the fair value of the outstanding debt was $170.9 million and the borrowing base was approximately $170.7 million, including $168.0 million in outstanding principal. There are no scheduled repayments of principal prior to maturity. Payments are due upon receipt of death benefits and distributed pursuant to the waterfall as described above.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements	(12) Fair Value Measurements The Company carries life settlements, certain structured settlements, and the Revolving Credit Facility debt at fair value in the consolidated balance sheets. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Level 2 Level 3—Valuation is based on inputs that are both significant to the fair value measurement and unobservable. Level 3 inputs include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value generally require significant management judgment or estimation. Assets and liabilities measured at fair value on a recurring basis The balances of the Company’s assets measured at fair value on a recurring basis as of June 30, 2015, are as follows (in thousands): Total Level 1 Level 2 Level 3 Fair Value Assets: Life settlements $ — $ — $ 438,986 $ 438,986 Structured settlement receivables — — 377 377 $ — $ — $ 439,363 $ 439,363 The balances of the Company’s liabilities measured at fair value on a recurring basis as of June 30, 2015 are as follows (in thousands): Total Level 1 Level 2 Level 3 Fair Value Liabilities: Revolving Credit Facility debt $ — $ — $ 170,858 $ 170,858 $ — $ — $ 170,858 $ 170,858 The balances of the Company’s assets measured at fair value on a recurring basis as of December 31, 2014, are as follows (in thousands): Level 1 Level 2 Level 3 Total Fair Value Assets: Life settlements $ — $ — $ 388,886 $ 388,886 Structured settlement receivables — — 384 384 $ — $ — $ 389,270 $ 389,270 The balances of the Company’s liabilities measured at fair value on a recurring basis as of December 31, 2014, are as follows (in thousands): Level 1 Level 2 Level 3 Total Fair Value Liabilities: Revolving Credit Facility debt $ — $ — $ 145,831 $ 145,831 $ — $ — $ 145,831 $ 145,831 The Company values its life settlement portfolio in two classes, non-premium financed and premium financed. In considering the categories, it is generally believed that market participants would require a lower risk premium for policies that were non-premium financed, while a higher risk premium would be required for policies that were premium financed although the Company believes that this risk premium has been declining. ($ in thousands) Quantitative Information about Level 3 Fair Value Measurements Aggregate Fair Value death benefit Range at 6/30/15 at 6/30/15 Valuation Technique Unobservable Input (s) (Weighted Average) Non-premium financed $ 88,237 $ 327,048 Discounted cash flow Discount rate 15.00% - 21.00% Life expectancy evaluation (6.9 years) Premium financed $ 350,749 $ 2,655,368 Discounted cash flow Discount rate 16.00% - 24.75% Life expectancy evaluation (10.6 years) Life settlements $ 438,986 $ 2,982,416 Discounted cash flow Discount rate (17.13%) Life expectancy evaluation (10.2 years) Structured settlement receivables $ 377 N/A Discounted cash flow Facility sales discount rates 8.66% Discount rate 23.64% Revolving Credit Facility debt $ 170,858 N/A Discounted cash flow Life expectancy evaluation (10.1 years) Following is a description of the methodologies used to estimate the fair values of assets and liabilities measured at fair value on a recurring basis and within the fair value hierarchy. Life settlements The Company provides medical records for each insured to independent secondary market life expectancy providers (each, an “LE provider”). Each LE provider reviews and analyzes the medical records and identifies all medical conditions it feels are relevant to the life expectancy determination of the insured. Debits and credits are assigned by each LE provider to the individual’s health based on identified medical conditions. The debit or credit that an LE provider assigns to a medical condition is derived from the experience of mortality attributed to this condition in the portfolio of lives that the LE provider monitors. The health of the insured is summarized by the LE provider into a life assessment of the individual’s life expectancy expressed both in terms of months and in mortality factor. The mortality factor represents the degree to which the given life can be considered more or less impaired than a life having similar characteristics (e.g. gender, age, smoking, etc.). For example, a standard insured (the average life for the given mortality table) would carry a mortality rating of 100%. A similar but impaired life bearing a mortality rating of 200% would be considered to have twice the chance of dying earlier than the standard life relative to the LE provider’s population. Since each provider’s mortality factor is based on its own mortality table, the Company calculates its own factors to apply to the table selected by the Company. Beginning in the quarter ended September 30, 2012, the Company began using a modified version of the 2008 Valuation Basic Table (“2008 VBT”), a mortality table developed by the U.S. Society of Actuaries (the “SOA”). The mortality table is created based on the expected rates of death among groups categorized by gender, age, and smoking status. Since the Company uses the 2008 VBT, the Company calculates its own mortality factor that, when applied to the 2008 VBT, produces the same life expectancy provided by each LE provider. The resulting mortality factors are then blended to determine a factor for each insured. To generate the best estimate probabilistic cash flow stream, a mortality curve is generated by calculating the probability of mortality for each period based on the calculated mortality factors and the death rates from the 2008 VBT. The Company modifies the table by incorporating future mortality improvements to better reflect the curves used by the LE providers. A discounted present value calculation is then used to determine the value of the policy. If the insured dies earlier than expected, the return will be higher than if the insured dies when expected or later than expected. The calculation allows for the possibility that if the insured dies earlier than expected, the premiums needed to keep the policy in force will not have to be paid. Conversely, the calculation also considers the possibility that if the insured lives longer than expected, more premium payments will be necessary. Based on these considerations, each possible outcome is assigned a probability and the range of possible outcomes is then used to create a value for the policy. The Company currently obtains its life expectancy reports from two life expectancy report providers, AVS Underwriting LLC (“AVS”) and 21st Services, LLC (“21st Services”). In the first quarter of 2013, 21st Services announced revisions to its underwriting methodology. According to 21st Services, these revisions have generally been understood to lengthen the average reported life expectancy furnished by this life expectancy provider by 19%. As of June 30, 2015, the Company received 684 updated life expectancy reports from 21st Services, of which 507 were used to calculate life expectancy extension. These life expectancies reported an average lengthening of life expectancies of 18.46% and, based on this sample, for the six months ended June 30, 2015, the Company increased the life expectancies furnished by 21st Services by 18.46% on the rest of its portfolio of life settlements prior to blending them with the life expectancy reports furnished by AVS. The Company expects to continue to lengthen life expectancies furnished by 21st Services that have not been re-underwritten using their updated methodology. Since the Revolving Credit Facility necessitates that the Company procure updated life expectancies on a periodic basis, the number of policies that are lengthened by the Company in this manner will decrease over time and the fair value calculations in future periods will, accordingly, reflect the actual impact of the revised 21st Services methodology on a policy by policy basis as updated life expectancy reports are procured. In the second quarter of 2015, the SOA exposed tables for the 2014 Valuation Basic Table (“2014 VBT”), which show a lengthening of average life expectancies. The Company is continuing to monitor the market reaction to the 2014 VBT while it awaits a final report from the SOA. Additionally, the Company will continue to monitor its mortality experience to determine whether future adoption of the 2014 VBT would be an appropriate change to the Company’s valuation technique. Future changes in life expectancies could have a material adverse effect on the fair value of the Company’s life settlements, which could have a material adverse effect on its business, financial condition and results of operations. Life expectancy sensitivity analysis If all of the insured lives in the Company’s life settlement portfolio live six months shorter or longer than the life expectancies provided by these third parties, the change in estimated fair value would be as follows (dollars in thousands): Life Expectancy Months Adjustment Value Change in Value +6 $ 368,975 $ (70,011 ) - $ 438,986 — -6 $ 514,853 $ 75,867 Future changes in the life expectancies could have a material effect on the fair value of the Company’s life settlements, which could have a material adverse effect on its business, financial condition and results of operations. Discount rate The discount rate incorporates current information about market interest rates, the credit exposure to the insurance company that issued the life insurance policy and the Company’s estimate of the risk premium an investor in the policy would require. The Company re-evaluates its discount rates at the end of every reporting period in order to reflect the estimated discount rates that could reasonably be used in a market transaction involving the Company’s portfolio of life insurance policies. In doing so, the Company relies on management insight, engages third party consultants to corroborate its assessment, engages in discussions with other market participants and potential financing sources and extrapolates the discount rate underlying actual sales of policies. Due to the Company’s association with the USAO Investigation and certain civil litigation involving the Company, the Company believes that, when given the choice to invest in a policy that was associated with the Company’s premium finance business and a similar policy without such an association, all else being equal, an investor would have generally opted to invest in the policy that was not associated with the Company’s premium finance business. However, since the Company entered into a non-prosecution agreement, investors have required less of a risk premium to transact in policies associated with the Company’s legacy premium finance business. In general, the Company believes that the risk premium an investor would require to transact in a policy that has been premium financed versus a policy without premium financing is lessening in the current market environment and further expects that, with the passage of time, investors will continue to require less of a risk premium to transact in policies associated with its legacy premium finance business. Credit exposure of insurance company The Company considers the financial standing of the issuer of each life insurance policy. Typically, the Company seeks to hold policies issued by insurance companies that are rated investment grade by the top three credit rating agencies. At June 30, 2015, the Company had eighteen life insurance policies issued by two carriers that were rated non-investment grade as of that date. In order to compensate a market participant for the perceived credit and challenge risks associated with these policies, the Company applied an additional 300 basis point risk premium. The following table provides information about the life insurance issuer concentrations that exceed 10% of total death benefit and 10% of total fair value of the Company’s life settlements as of June 30, 2015: Percentage of Percentage of Total Total Death Moody’s S&P Carrier Fair Value Benefit Rating Rating Transamerica Life Insurance Company 21.1 % 20.6 % A1 AA- Lincoln National Life Insurance Company 21.8 % 19.7 % A1 AA- Estimated risk premium As of June 30, 2015, the Company owned 633 policies with an aggregate life settlements of $439.0 million. Of these 633 policies, 548 were previously premium financed and are valued using discount rates that range from 16.00% to 24.75%. The remaining 85 policies, which are non-premium financed, are valued using discount rates that range from 15.00% to 21.00%. As of June 30, 2015, the weighted average discount rate calculated based on death benefit used in valuing the policies in the Company’s life settlement portfolio was 17.13%. The discount rate incorporates current information about market interest rates, the credit exposure to the insurance company that issued the life insurance policy and the Company’s estimate of the risk premium an investor in the policy would require. The extent to which the fair value could vary in the near term has been quantified by evaluating the effect of changes in the weighted average discount rate on the death benefit used to estimate the fair value. If the weighted average discount rate were increased or decreased by 1 2 Market interest rate sensitivity analysis Weighted Average Rate Calculated Based on Death Benefit Rate Adjustment Value Change in Value 16.63% -0.50 % $ 450,574 $ 11,588 17.13% - $ 438,986 $ — 17.63% +0.50 % $ 427,900 $ (11,086 ) Future changes in the discount rates the Company uses to value life insurance policies could have a material effect on the Company’s yield on life settlement transactions, which could have a material adverse effect on its business, financial condition and results of its operations. At the end of each reporting period the Company re-valued the life insurance policies using the Company’s valuation model in order to update its estimate of fair value for investments in policies held on its balance sheet. This includes reviewing the Company’s assumptions for discount rates and life expectancies as well as incorporating current information for premium payments and the passage of time. Structured settlement receivables Revolving Credit Facility debt Life expectancy sensitivity analysis of Revolving Credit Facility debt A considerable portion of the fair value of the Revolving Credit Facility debt is determined by the timing of receipt of future policy proceeds. Should life expectancies lengthen such that policy proceeds are collected further into the future, the fair value of this debt will decline. Conversely, should life expectancies shorten, the fair value of this debt will increase. Considerable judgment is required in interpreting market data to develop the estimates of fair value. If all of the insured lives in the life settlement portfolio pledged under the Revolving Credit Facility live six months shorter or longer than the life expectancies used to calculate the estimated fair value of the Revolving Credit Facility debt, the change in estimated fair value would be as follows (dollars in thousands): Fair Value of Revolving Credit Life Expectancy Months Adjustment Facility Debt Change in Value +6 $ 149,064 $ (21,794 ) $ 170,858 — -6 $ 194,240 $ 23,382 Future changes in the life expectancies could have a material effect on the fair value of the Company’s Revolving Credit Facility debt, which could have a material adverse effect on its business, financial condition and results of operations. Discount rate of Revolving Credit Facility debt The discount rate incorporates current information about market interest rates, credit exposure to insurance companies and the Company’s estimate of the return a lender lending against the policies would require. Market interest rate sensitivity analysis of Revolving Credit Facility debt The extent to which the fair value of the Revolving Credit Facility debt could vary in the near term has been quantified by evaluating the effect of changes in the weighted average discount. If the weighted average discount rate were increased or decreased by 1 2 Fair Value of Revolving Credit Discount Rate Rate Adjustment Facility Debt Change in Value 23.14% -0.50 % $ 173,578 $ 2,720 23.64% - $ 170,858 $ — 24.14% +0.50 % $ 168,230 $ (2,628 ) Future changes in the discount rates could have a material effect on the fair value of the Company’s Revolving Credit Facility debt, which could have a material adverse effect on its business, financial condition and results of its operations. At June 30, 2015, the fair value of the debt was $170.9 million and the outstanding principal was approximately $168.0 million. Senior Unsecured Convertible Notes- Derivatives and Hedging . In accordance with ASC 815, upon receipt of shareholder approval on June 5, 2014, the Company reclassified the embedded derivative to stockholders’ equity along with unamortized transaction costs proportionate to the allocation of the initial debt discount and the principal amount of the Convertible Notes. The Convertible Notes continue to be recorded at accreted value up to the par value of the Convertible Notes at maturity. See Note 10, “8.50% Senior Unsecured Convertible Notes.” Although the Company believes its valuation method is appropriate, the use of different methodologies or assumptions to determine the fair value could result in different fair values. Changes in Fair Value The following table provides a roll-forward in the changes in fair value for six months ended June 30, 2015, for all assets for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Life Settlements: Balance, January 1, 2015 $ 388,886 Purchase of policies 27,535 Change in fair value 40,914 Matured/lapsed/sold policies (49,766 ) Premiums paid 31,417 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2015 $ 438,986 Changes in fair value included in earnings for the period relating to assets held at June 30, 2015 $ 2,598 The following table provides a roll-forward in the changes in fair value for six months ended June 30, 2015, for all liabilities for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Revolving Credit Facility debt: Balance, January 1, 2015 $ 145,831 Draws under the revolving credit facility 25,912 Payments on credit facility (18,577 ) Unrealized change in fair value 17,692 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2015 $ 170,858 Changes in fair value included in earnings for the period relating to liabilities held at June 30, 2015 $ 17,692 The following table provides a roll-forward in the changes in fair value for six months ended June 30, 2014, for all assets for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Life Settlements: Balance, January 1, 2014 $ 302,961 Change in fair value 22,956 Matured/sold policies (15,957 ) Premiums paid 26,886 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2014 336,846 Changes in fair value included in earnings for the period relating to assets held at June 30, 2014 $ 12,270 The following tables provide a roll-forward in the changes in fair value for the six months ended June 30, 2014, for all liabilities for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Revolving Credit Facility debt: Balance, January 1, 2014 $ 123,847 Subsequent draws under the revolving credit facility 27,124 Payments on credit facility (6,006 ) Unrealized change in fair value 3,818 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2014 $ 148,783 Changes in fair value included in earnings for the period relating to liabilities held at June 30, 2014 $ 3,818 Conversion derivative liability: Balance, at inception $ 16,901 Change in fair value 6,759 Reclassified to equity (23,660 ) Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2014 — Changes in fair value included in earnings for the period relating to liabilities held at June 30, 2014 $ — There were no transfers of financial assets or liabilities between levels of the fair value hierarchy during the six month periods ended June 30, 2015 and 2014.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information	(13) Segment Information On October 25, 2013, the Company sold its structured settlement business, which was previously reported as an operating segment. The operating results related to the Company’s structured settlement business have been included in discontinued operations in the Company’s Consolidated Statements of Operations for all periods presented and the Company has discontinued segment reporting.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies	(14) Commitments and Contingencies Lease Agreements The Company leases office space under a lease that commenced on October 1, 2014 and expires on September 30, 2020. The annual base rent is $225,100, with a provision for a 3% increase on each anniversary of the rent commencement date. Rent expense was approximately $104,000 and $126,000 for the three months ended June 30, 2015 and 2014, respectively, and approximately $197,000 and $252,000 for the six months ended June 30, 2015 and 2014, respectively. Future minimum lease payments for the remainder of 2015 are approximately $114,000. Employment Agreements The Company has entered into employment agreements with certain of its officers, including with its chief executive officer, whose agreement provides for substantial payments in the event that the executive terminates his employment with the Company due to a material change in the geographic location where the chief executive officer performs his duties or upon a material diminution of his base salary or responsibilities, with or without cause. These payments are equal to three times the sum of its chief executive officer’s base salary and the average of the three years’ annual cash bonus. On April 26, 2012, the Company entered into a Separation Agreement and General Release of Claims (the “Separation Agreement”) with its former chief operating officer, Jonathan Neuman. The Separation Agreement obligates the Company to indemnify Mr. Neuman for his legal expenses. The Company recognized indemnification expenses of $822,000 and $574,000 during the three month periods ended June 30, 2015 and 2014, respectively, and $1.5 million and $1.0 million during the six month periods ended June 30, 2015 and 2014, respectively. The Company does not have any general policies regarding the use of employment agreements, but has and may, from time to time, enter into such a written agreement to reflect the terms and conditions of employment of a particular named executive officer, whether at the time of hire or thereafter. Litigation In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency related to a litigation or regulatory matter is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. When a loss contingency related to a litigation or regulatory matter is deemed to be both probable and estimable, the Company will establish an accrued liability with respect to such loss contingency and record a corresponding amount of litigation-related expense. The Company will then continue to monitor the matter for further developments that could affect the amount of any such accrued liability. Non-Prosecution Agreement & Indemnification Obligations On September 27, 2011, the Company was informed that it was being investigated by the U.S. Attorney’s Office for the District of New Hampshire (the “USAO Investigation”) in connection with the Company’s now legacy premium finance loan business. On April 30, 2012, the Company entered into a Non-Prosecution Agreement (the “Non-Prosecution Agreement”) with the USAO, which agreed not to prosecute the Company for its involvement in the making of misrepresentations on life insurance applications in connection with its premium finance business or any potential securities fraud claims related to its now legacy premium finance business. The Non-Prosecution Agreement had a term of three years and expired in accordance with its terms on April 30, 2015. While the Non-Prosecution Agreement effectively resolved the USAO Investigation as it pertains to the Company, the USAO is continuing to investigate certain individuals formerly employed by the Company. Settlements of certain civil litigation with the Company’s director and officer liability insurance carriers related to the USAO Investigation require Imperial to advance legal fees to and indemnify these individuals. Excluding expenses of general external legal service providers, USAO litigation-related fees (inclusive of indemnification and advancement expenses) of $2.3 million and $1.2 million were recognized for the three months ended June 30, 2015 and 2014, respectively, and $4.2 million and $1.9 million were recognized for the six months ended June 30, 2015 and 2014, respectively. The Company expects to continue to incur indemnification and advancement expenses and expenses related to continuing obligations related to the USAO investigation. Ongoing expenses in respect of these obligations, while currently unquantifiable, have been substantial in prior periods and could continue to have a material adverse effect on the Company’s financial position and results of operations. SEC Investigation On February 17, 2012, the Company received a subpoena issued by the staff of the SEC seeking documents from 2007 through the date of the subpoena, generally related to the Company’s premium finance business and corresponding financial reporting. The SEC is investigating whether any violations of federal securities laws have occurred and the Company has been cooperating with the SEC regarding this matter. The Company is unable to predict what action, if any, might be taken in the future by the SEC or its staff as a result of the investigation or what impact, if any, the cost of responding to the SEC might have on the Company’s financial position, results of operations, or cash flows. The Company has not established any provision for losses in respect of this matter. Sun Life On April 18, 2013, Sun Life Assurance Company of Canada (“Sun Life”) filed a complaint against the Company and several of its affiliates in the United States District Court for the Southern District of Florida, entitled Sun Life Assurance Company of Canada v. Imperial Holdings, Inc., et al Sun Life Case th On July 29, 2013, the Company filed a separate complaint against Sun Life in United States District Court for the Southern District of Florida, entitled Imperial Premium Finance, LLC v. Sun Life Assurance Company of Canada Imperial Case The District Court has stayed the Imperial Case until Sun Life’s appeal is resolved by the Eleventh Circuit. Sun Life filed its initial appellant brief on May 27, 2015 and the Company filed its appellee brief on July 13, 2015. Sanctions Order On April 27, 2012, after the conclusion of a jury trial in the matter styled Steven A. Sciaretta, as Trustee of the Barton Cotton Irrevocable Trust a/k/a the Amended and Restated Barton Cotton Irrevocable Trust v. The Lincoln National Life Insurance Company (“Lincoln”) IRS Investigation The Internal Revenue Service (“IRS”) Criminal Investigation Division notified the Company in February 2014 that it is conducting an investigation related to the Company and its legacy structured settlements business. The Company believes that it has been cooperating with the investigation and is unable, at this time, to predict what action, if any, might be taken in the future by the IRS or what impact, if any, the cost of providing information and documents might have on the Company’s financial condition, results of operations, or cash flows. If the investigation results in a determination by the IRS that the Company has failed to comply with any of its obligations under the Internal Revenue Code or regulations thereunder, the Company could incur additional tax liability, restitution payment obligations, penalties, fines or other liabilities, including criminal penalties and fines and a reduction in the Company’s net operating losses, that could have a material adverse effect on the Company, its personnel, its financial condition and its results of operations. The Company has not established any provision for losses related to this matter. Class Action Litigation On January 20, 2015, a purported shareholder of the Company filed a putative class action complaint against the Company, and the individual members of the Board of Directors, in the Circuit Court of the 15th Judicial Circuit, in and for Palm Beach County, entitled Harry Rothenberg v. Imperial Holdings, Inc., et al. On April 20, 2015, Mr. Rothenberg filed a Verified Shareholder Class Action and Derivative Complaint (the “Federal Court Complaint”) in the United States District Court for the Southern District of Florida, which names the same defendants and asserts similar claims as in the State Court Complaint. The Federal Court Complaint also alleges violations of Sections 14(a) and 20(a) of the 1934 Securities Act, and asserts derivative claims for breach of fiduciary duty, among other claims, based on the previously disclosed IRS Investigation and allegations regarding the Company’s prior structured settlement business made in a case styled Michael Lafontant v. Washington Square Financial, LLC, et al. Other Litigation On April 10, 2015, a complaint was filed against the Company’s subsidiary in the Circuit Court of the Twentieth Judicial Circuit in and for St. Clair County, Illinois, styled Kenneth Jennings v. Washington Square Financial, LLC d/b/a Imperial Structured Settlements The Company is party to various other legal proceedings that arise in the ordinary course of business. Due to the inherent difficulty of predicting the outcome of litigation and other legal proceedings, the Company cannot predict the eventual outcome of these matters, and it is reasonably possible that some of them could be resolved unfavorably to the Company. As a result, it is possible that the Company’s results of operations or cash flows in a particular fiscal period could be materially affected by an unfavorable resolution of pending litigation or contingencies. However, the Company believes that the resolution of these other proceedings will not, based on information currently available, have a material adverse effect on the Company’s financial position or results of operations.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity	(15) Stockholders’ Equity During the second quarter of 2015, the Company commenced a rights offering and distributed one non-transferable subscription right for every four shares of common stock owned by its shareholders of record at the close of business on May 26, 2015. Each right entitled its holder to subscribe for one share of common stock at a price of $5.75 per share. Additionally, the Company set aside 1,337,686 shares to honor over-subscription requests. The rights offering was over-subscribed and the Company issued 6,688,433 shares of common stock. The Company has reserved an aggregate of 2,700,000 shares of common stock under its Omnibus Plan, of which 794,617 options to purchase shares of common stock granted to existing employees were outstanding as of June 30, 2015, and 103,112 shares of restricted stock had been granted to directors under the plan with 41,259 shares subject to vesting. During 2014, upon receipt of shareholder approval, the Company reclassified the embedded derivative contained in its Convertible Notes to stockholders’ equity along with unamortized transaction costs proportionate to the allocation of the initial debt discount and the principal amount of the Convertible Notes. This resulted in an increase to additional paid-in-capital of $14.1 million, net of taxes on the Company’s consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2014. See Note 10, 8.50% Senior Unsecured Convertible Notes. In connection with the settlement of derivative litigation, the Company issued 125,628 shares of the Company’s stock, which were issued in the first quarter of 2014 and are included in stockholders’ equity. In connection with the settlement of class litigation filing in connection with the USAO Investigation, the Company issued warrants to purchase two million shares of the Company’s stock into an escrow account in April 2014 and were distributed in October 2014. The estimated fair value at the measurement date of such warrants was $5.4 million, which is included in stockholder’s equity. The warrants have a five-year term from the date of their distribution with an exercise price of $10.75. The Company is obligated to file a registration statement to register the shares underlying the warrants with the SEC if shares of the Company’s common stock have an average daily trading closing price of at least $8.50 per share for a 45 day period. The warrants will be exercisable upon effectiveness of the registration statement. During 2014, the Company awarded 323,500 target performance shares for restricted common stock to its directors and certain employees, of which 150,000 shares were subject to shareholder approval of the Omnibus Plan, which was obtained at the Company’s 2015 annual meeting on May 28, 2015. The issuance of the performance shares is contingent on the Company’s financial performance as well as the performance of the Company’s common stock through June 30, 2016, with the actual shares to be issued ranging between 0 – 150% of the target performance shares. As a result, the Company determined that it is not probable that the performance conditions will be achieved and no related expense was recognized for the three months and six month periods ended June 30, 2015. The performance shares will be subject to a one year vesting period from the date of issuance. Exclusive of the 323,500 target performance shares awarded to its directors, named executive officers and certain employees, there were 1,788,512 securities remaining for future issuance under the Omnibus Plan as of June 30, 2015. During the quarter ended June 30, 2014, the Company adopted ASU No. 2013-11, resulting in an increase to additional paid-in-capital of $6.3 million on the Company’s consolidated balance sheet and consolidated statement of stockholders’ equity as of June 30, 2014. See Note 16, Income Taxes.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes	(16) Income Taxes The Company’s provision for income taxes from continuing operations is estimated to result in an annual effective tax rate of approximately 41.2% and 39.4% (before adoption of ASU 2013-11, discussed below) during the six months ended June 30, 2015 and 2014, respectively. The Company’s quarterly effective income tax rates are based upon the Company’s current estimated annual rate. The Company’s annual effective income tax rate varies based upon the Company’s taxable earnings as well as on a mix of taxable earnings in the various state and foreign jurisdictions. The Company adopted ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”) effective on January 1, 2014, which required the Company to reclassify a $6.3 million current liability for unrecognized tax benefits to deferred taxes. Adoption of this guidance resulted in the recognition of a $3.7 million tax expense included in the Company’s provision for income taxes for the three months ended March 31, 2014, a $2.6 million reduction in the valuation allowance and an increase to additional paid-in-capital of $6.3 million on the Company’s consolidated balance sheet and consolidated statement of stockholders’ equity as of March 31, 2014. In March of 2014, the Company was notified by the IRS of its intention to examine the Company’s tax returns for the years ended December 31, 2011 and 2012. See also “IRS Investigation” in Note 14 regarding the IRS Criminal Investigation Division’s investigation related to the Company’s former structured settlement business. The Company and its subsidiary companies are subject to U.S. federal income tax as well as to income tax in Florida and other states and foreign jurisdictions in which it operates.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events	(17) Subsequent Events Red Falcon Credit Facility Effective July 16, 2015, Red Falcon Trust (“Red Falcon”), a Delaware statutory trust formed by Blue Heron Designated Activity Company (“Blue Heron”), a wholly-owned Irish subsidiary of the Company, entered into a revolving loan and security agreement (together with its ancillary documents, the “Red Falcon Credit Facility”) with LNV Corporation, as initial lender, the other lenders party thereto from time to time, Imperial Finance & Trading, LLC, as guarantor, Blue Heron as portfolio administrator and CLMG Corp., as administrative agent (the “Agent”). General & Security Borrowing Base & Availability Amortization & Distributions. Initial Advance and Use of Proceeds. Interest. Maturity. Covenants/Events of Defaults Secured Notes On July 16, 2015, the Company redeemed all of the outstanding Secured Notes and discharged the Secured Note Indenture. The Secured Notes were redeemed at 106% of their principal amount plus interest up to but excluding November 10, 2015. Effective as of the redemption of the Secured Notes, 159 of the life insurance policies that served as collateral under the Indenture were sold to Red Falcon in an internal transfer and pledged as collateral under the Red Falcon Credit Facility. Approximately $8.8 million was expensed as loss on extinguishment related to the early repayment of the facility in July 2015. This includes $5.2 million, $171,000, $1.7 million and $1.7 million related to interest, unused fees, amortization of debt discount and issuance cost. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity, and cash flows of our Company as of and for the periods presented below and should be read in conjunction with the financial statements and accompanying notes included with this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that are based on the beliefs of our management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially from those discussed in or implied by forward-looking statements as a result of various factors. See “Forward-Looking Statements.” Business Overview We were founded in December 2006 as a Florida limited liability company and in connection with our initial public offering, in February 2011, Imperial Holdings, Inc. succeeded to the business of Imperial Holdings, LLC and its assets and liabilities. Incorporated in Florida, Imperial owns a portfolio of 633 life insurance policies, also referred to as life settlements, with a fair value of $439.0 million and an aggregate death benefit of approximately $3.0 billion at June 30, 2015. The Company primarily earns income on these policies from changes in their fair value and through death benefits. Our indirect subsidiary company, White Eagle Asset Portfolio, LP (“White Eagle”), is the owner of 439 of these life insurance policies with an aggregate death benefit of approximately $2.2 billion and an estimated fair value of approximately $316.5 million at June 30, 2015. White Eagle pledged its policies as collateral to secure borrowings made under a $300.0 million 15-year revolving credit agreement (the “Revolving Credit Facility”), which is used, among other things, to pay premiums on the life insurance policies owned by White Eagle. As of June 30, 2015, the majority of our other assets, including the 194 policies that were not pledged as collateral under the Revolving Credit Facility, with an aggregate death benefit of approximately $779.6 million and an estimated fair value of approximately $122.5 million as of June 30, 2015, were pledged as collateral for the payment of $50 million in aggregate principal amount of our 12.875% Senior Secured Notes (the “Secured Notes”), which Secured Notes were redeemed in July 2015, as discussed below. Beginning in the fourth quarter of 2014, we began acquiring policies with a view towards enhancing projected short term cash flows. Prior to year end, we acquired 14 policies and during the six months ended June 30, 2015, we acquired an additional 38 life insurance policies. These 52 policies, with a face value of $157.5 million, had a weighted average life expectancy at the time of acquisition of 68 months and the insureds underlying these policies had a weighted average age of 85 years. As a result, we have decreased the weighted average life expectancy on the policies that served as collateral for the Secured Notes at June 30, 2015 from 12.6 years at September 30, 2014 to 10.5 years at June 30, 2015. Conversely, we have increased the weighted average age of the insureds underlying these policies from 78.7 years at September 30, 2014 to 80.6 years at June 30, 2015. We believe that re-shaping the projected characteristics of this portfolio made it a more attractive candidate for longer-term financing at a lower cost of capital and, on July 16, 2015, we redeemed the Secured Notes that this portfolio secured and entered into a new revolving credit facility that can be used to pay the premiums on Red Falcon’s life insurance policies for five years. See Note 17, “Subsequent Events” of the notes to Consolidated Financial Statements. During the second quarter of 2015, we commenced a rights offering and distributed one non-transferable subscription right for every four shares of common stock owned by our shareholders of record at the close of business on May 26, 2015. Each right entitled its holder to subscribe for one share of common stock at a price of $5.75 per share. Additionally, we set aside 1,337,686 shares to honor over-subscription requests. The rights offering was over-subscribed and we issued 6,688,433 shares of common stock and raised gross proceeds of $38.5 million. We plan to use the proceeds from the rights offering to pay premiums on certain of our life insurance policies, to make selective investments in the life settlement asset class, and for general corporate purposes, including working capital. During the six months ended June 30, 2015, we acquired 38 life insurance policies with an aggregate face amount of $100.8 million, which resulted in a gain of approximately $4.4 million. 12 life insurance policies with face amounts totaling $49.8 million matured, resulting in a gain of $37.8 million on these policies. The gains related to acquisitions and maturities are included in income from changes in the fair value of life settlements in the consolidated statements of operations for the three months and six months ended June 30, 2015. We continue to believe that there are accretive opportunities to grow our existing portfolio of life settlements and intend, subject to our liquidity needs, to selectively deploy capital in both the secondary and tertiary life settlement markets through the remainder of 2015. During the second quarter of 2015, the U.S. Society of Actuaries (the “SOA”) exposed tables for the 2014 Valuation Basic Table (“2014 VBT”), which show a lengthening of average life expectancies. We are continuing to monitor the market reaction to the 2014 VBT while we await the final report from the SOA. Additionally, we will continue to monitor our mortality experience to determine whether future adoption of the 2014 VBT would be an appropriate change to the Company’s valuation technique. We understand from discussions with our third-party life expectancy providers that the release of the 2014 VBT tables should not impact their life expectancy estimates. We do expect, however, that adoption of the 2014 VBT would impact our estimated probabilistic cash flow stream as a new mortality table inputted into the Company’s fair value model would likely result in a change to the mortality curve generated for a given insured. Future changes in life expectancies could have a material adverse effect on the fair value of our life settlements, which could have a material adverse effect on our business, financial condition and results of operations. Critical Accounting Policies Critical Accounting Estimates The preparation of the financial statements requires us to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. We base our judgments, estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions and conditions. We evaluate our judgments, estimates and assumptions on a regular basis and make changes accordingly. We believe that the judgments, estimates and assumptions involved in the accounting for income taxes, the valuation of life settlements, the valuation of the debt owing under the Revolving Credit Facility and the valuation of our conversion derivative liability formerly embedded within the Convertible Notes have the greatest potential impact on our financial statements and accordingly believe these to be our critical accounting estimates. Fair Value Measurement Guidance We follow ASC 820, Fair Value Measurements and Disclosures Fair Value Option We have elected to account for the debt under the Revolving Credit Facility, which includes its interest in policy proceeds to the lender, using the fair value method. The fair value of the debt is the estimated amount that would have to be paid to transfer the debt to a market participant in an orderly transaction. We calculated the fair value of the debt using a discounted cash flow model taking into account the stated interest rate of the credit facility and probabilistic cash flows from the pledged policies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, our estimates are not necessarily indicative of the amounts that we, or holders of the instruments, could realize in a current market exchange. The most significant assumptions are the estimates of life expectancy of the insured and the discount rate. The use of assumptions and/or estimation methodologies could have a material effect on the estimated fair different values. We determined that an embedded conversion option existed in the Convertible Notes, prior to June 5, 2014, that was required to be separately accounted for as a derivative under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. Income Recognition Our primary sources of income are in the form of changes in fair value of life settlements and gains/(losses) on life settlements, net. Our income recognition policies for this source of income is as follows: • Changes in Fair Value of Life Settlements • Gain/(Loss) on Life Settlements, Net Deferred Debt Costs Deferred debt costs include costs incurred in connection with acquiring and maintaining debt arrangements. These costs are amortized over the life of the related loan using the effective interest method and are classified as interest expense in the accompanying consolidated statement of operations. These deferred costs are related to our Convertible and Secured Notes. We did not recognize any deferred debt costs on the Revolving Credit Facility given all costs were expensed due to electing the fair value option in valuing the Revolving Credit Facility. Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes. Under ASC 740, deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, we consider tax regulations of the jurisdictions in which we operate, estimates of future taxable income and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies varies adjustments to the carrying value of the deferred tax assets and liabilities may be required. Valuation allowances are based on the “more likely than not” criteria of ASC 740. Our provision for income taxes from continuing operations results in an annual effective tax rate of 41.2% and 39.4% in 2015 and 2014, respectfully, except as noted below. The accounting for uncertain tax positions guidance under ASC 740 requires that we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties (if any) on uncertain tax positions as a component of income tax expense. In March of 2014, we were notified by the IRS of its intention to examine our tax returns for the years ended December 31, 2011 and 2012. See also “IRS Investigation” in Note 14, Contingencies and Commitments regarding the IRS Criminal Investigation Division’s investigation related to our former structured settlement business. Stock-Based Compensation We have adopted ASC 718, Compensation—Stock Compensation. Held-for-sale and discontinued operations We report a business as held-for-sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the ensuing year and certain other specified criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation is not recorded on assets of a business classified as held-for-sale. Assets and liabilities related to a business classified as held-for-sale are segregated in the Consolidated Balance Sheet and major classes are separately disclosed in the notes to the Consolidated Financial Statements commencing in the period in which the business is classified as held-for-sale. We report the results of operations of a business as discontinued operations if the business is classified as held-for-sale, the operations and cash flows of the business have been or will be eliminated from the ongoing operations of the Company as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in Discontinued Operations in the Consolidated Statement of Operations for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. During the fourth quarter of 2013, we sold substantially all of our structured settlements business. As a result, we have classified our structured settlement operating results as discontinued operations. Foreign Currency We own certain foreign subsidiary companies formed under the laws of Ireland, Bahamas and Bermuda. These foreign subsidiary companies utilize the U.S. dollar as their functional currency. The foreign subsidiary companies financial statements are denominated in U.S. dollars and therefore, there are no translation gains and losses resulting from converting the financial statements at exchange rates other than the functional currency. Any gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the subsidiary companies functional currency) are included in income. These gains and losses are immaterial to our financial statements. Accounting Changes Note 3, “ Recent Accounting Pronouncements Selected Operating Data (dollars in thousands): For the Three Months Ended For the Six Months Ended June 30, 2015 2014 2015 2014 Period Acquisitions — Policies Owned Number of policies acquired 8 — 38 — Average age of insured at acquisition 79.7 — 85.0 — Average life expectancy — Calculated LE (Years) 7.2 — 5.4 — Average death benefit $ 2,105 $ — $ 2,652 $ — Aggregate purchase price $ 2,125 $ — $ 27,535 $ — End of Period — Policies Owned Number of policies owned 633 593 633 593 Average Life Expectancy — Calculated LE (Years) 10.2 11.1 10.2 11.1 Aggregate Death Benefit $ 2,982,416 $ 2,873,899 $ 2,982,416 $ 2,873,899 Aggregate fair value $ 438,986 $ 336,846 $ 438,986 $ 336,846 Monthly premium — average per policy $ 8.4 $ 7.6 $ 8.4 $ 7.6 Results of Operations The following is our analysis of the results of operations for the periods indicated below. This analysis should be read in conjunction with our financial statements, including the related notes to the financial statements. Our results of operations are discussed below in two parts: (i) our consolidated results of continuing operations and (ii) our results of discontinued operations. Consolidated Results of Continuing Operations Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014 Net income from continuing operations for the quarter ended June 30, 2015 was $966,000 as compared to a net loss of $6.3 million for the quarter ended June 30, 2014, an increase of $7.2 million. Total income from continuing operations was $28.0 million for the quarter ended June 30, 2015, an increase of $19.0 million as compared to total income from continuing operations of $9.0 million during the same period in 2014. Total expenses from continuing operations were $27.4 million for the quarter ended June 30, 2015 compared to total expenses from continuing operations of $19.5 million incurred during the same period in 2014, an increase of $7.9 million, or 41%. Our net income for the quarter ended June 30, 2014 includes an income tax provision of approximately $4.2 million, which resulted from the adoption of ASU No. 2013-11. See Note 16 “Income Taxes,” to the accompanying consolidated financial statements. Change in Fair Value of Life Settlements During the quarter ended June 30, 2015, seven life insurance policies with face amounts totaling $36.6 million matured. The net gain of these maturities was $26.1 million and is recorded as a change in fair value of life settlements in the consolidated statements of operations for the quarter ended June 30, 2015. All seven of these maturities served as collateral under the Revolving Credit Facility. Proceeds from maturities totaling $6.2 million were received during the quarter ended June 30, 2015 and include approximately $4.2 million, which was outstanding for maturities during the quarter ended March 31, 2015 and $2.0 million for maturities in the quarter ended June 30, 2015. Approximately $9.5 million was utilized to repay borrowings under the Revolving Credit Facility during the three months ended June 30, 2015, including approximately $4.0 million that was collected during the quarter ended March 31, 2015. We recorded a $34.7 million receivable for maturity of life settlements at June 30, 2015. As of June 30, 2015, we owned 633 policies with an estimated fair value of $439.0 million compared to 607 policies with an estimated fair value of $388.9 million at December 31, 2014, an increase of $50.1 million or 13%. Of the 633 policies, 439 policies were pledged to the Revolving Credit Facility and 194 policies serve as collateral for the Secured Notes. During the quarter ended June 30, 2015, we acquired eight life insurance policies that resulted in a gain of approximately $975,000. There were no such acquisitions for the same period during 2014. As of June 30, 2015, the aggregate death benefit of our life settlements was $3.0 billion. Of these 633 policies owned as of June 30, 2015, 548 were previously premium financed and are valued using discount rates that range from 16.00% – 24.75%. The remaining 85 policies are valued using discount rates that range from 15.00% – 21.00%. See Note 12, “Fair Value Measurements,” to the accompanying consolidated financial statements. (Loss) / Gain on life settlements, net Expenses Interest expense. Of the interest expense of $6.6 million, approximately $2.3 million represents interest paid on the Revolving Credit Facility. Interest expense on the Convertible Notes totaled $2.3 million, including $1.5 million, $661,000 and $98,000 representing interest, amortization of debt discount and issuance costs, respectively. We recorded $2.0 million of interest expense on the Secured Notes, including $1.6 million, $126,000, $147,000, and $149,000 from interest, unused fees, amortization of debt discounts and issuance costs, respectively, during the three months ended June 30, 2015. Of the interest expense of $4.1 million for second quarter of 2014, approximately $1.9 million represents interest paid on the Revolving Credit Facility. Interest expense on the Convertible Notes totaled $2.2 million including $1.5 million, $554,000 and $101,000 representing interest, amortization of debt discount and issuance costs, respectively. See Notes 9, 10 and 11 to the accompanying consolidated financial statements. Change in fair value of Revolving Credit Facility Change in fair value of conversion derivative. Selling, General and Administrative Expenses Legal expenses for the quarter ended June 30, 2015 were $3.2 million compared to $3.3 million for the quarter ended June 30, 2014. Of the legal expense, approximately $2.3 million is associated with the USAO Investigation and related matters for the quarter ended June 30, 2015, compared to $1.2 million for the quarter ended June 30, 2014. See Note 14, “Commitments and Contingencies,” to the accompanying consolidated financial statements. Results of Discontinued Operations Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014 Net loss from our discontinued structured settlement operations for the quarter ended June 30, 2015 was $145,000 as compared to a net loss of $185,000 for the quarter ended June 30, 2014. Total income from our discontinued structured settlement operations was $38,000 for the quarter ended June 30, 2015 and 2014, respectively. Unrealized change in fair value of structured settlements receivable was $8,000 for the quarters ended June 30, 2015 and 2014, respectively. Total expenses from our discontinued structured settlement operations were $274,000 for the quarter ended June 30, 2015 compared to $223,000 incurred during the same period in 2014. This increase was attributable to a $54,000 increase in legal fees. Consolidated Results of Continuing Operations Six Months Ended June 30, 2015 Compared to Six Months Ended June 30, 2014 Net loss from continuing operations for the six months ended June 30, 2015 was $3.2 million as compared to a net loss of $9.6 million for the six months ended June 30, 2014, a reduction of $6.4 million. Total income from continuing operations was $41.0 million for the six months ended June 30, 2015, an increase of $18.4 as compared to total income from continuing operations of $22.6 million during the same period in 2014. Total expenses from continuing operations were $46.5 million for the six months ended June 30, 2015 compared to total expenses from continuing operations of $32.4 million incurred during the same period in 2014, an increase of $14.1 million, or 43%. Our net loss for the six months ended June 30, 2015 includes an income tax benefit of approximately $2.3 million. Change in Fair Value of Life Settlements During the six months ended June 30, 2015, 12 life insurance policies with face amounts totaling $49.8 million matured compared to five policies with face amounts totaling $11.5 million matured for the same period in 2014. The net gain of these maturities was $37.8 million and $10.6 million for 2015 and 2014, respectively, and is recorded as a change in fair value of life settlements in the consolidated statements of operations for the six months ended June 30, 2015 and 2014, respectively. 11 of these maturities served as collateral under the Revolving Credit Facility. Proceeds from maturities totaling $19.2 million were received during the six months ended June 30, 2015. Of this amount, approximately $18.6 million was utilized to repay borrowings under the Revolving Credit Facility during the six months ended June 30, 2015. We recorded a $34.7 million receivable for maturity of life settlements at June 30, 2015. As of June 30, 2015, we owned 633 policies with an estimated fair value of $439.0 million compared to 593 policies with a fair value of $336.8 million at June 30, 2014, an increase of $102.2 million or 30%. Of the 633 policies, 439 policies were pledged to the Revolving Credit Facility and 194 policies served as collateral for the Secured Notes. During the six months ended June 30, 2015, we acquired 38 life insurance policies that resulted in a gain of approximately $4.3 million. There were no such acquisitions for the same period during 2014. As of June 30, 2015, the aggregate death benefit of our life settlements was $3.0 billion. Of these 633 policies owned as of June 30, 2015, 548 were previously premium financed and are valued using discount rates that range from 16.00% – 24.75%. The remaining 85 policies are valued using discount rates that range from 15.00% – 21.00%. See Note 12, “Fair Value Measurements,” to the accompanying consolidated financial statements. (Loss) / Gain on life settlements, net Expenses Interest expense. Of the interest expense of $12.9 million, approximately $4.6 million represents interest paid on the Revolving Credit Facility. Interest expense on the Convertible Notes totaled $4.5 million, including $3.0 million, $1.3 million and $189,000 representing interest, amortization of debt discount and issuance costs, respectively. We recorded $3.8 million of interest expense on the Secured Notes, including $3.0 million, $255,000, $264,000, and $277,000 from interest, unused fees, amortization of debt discounts and issuance costs, respectively, during the six months ended June 30, 2015. Of the interest expense of $6.9 million for six months ended June 30, 2014, approximately $3.7 million represents interest paid on the Revolving Credit Facility. Interest expense on the Convertible Notes totaled $3.2 million including $2.2 million, $804,000 and $149,000 representing interest, amortization of debt discount and issuance costs, respectively. See Notes 9, 10 and 11 to the accompanying consolidated financial statements. Change in fair value of Revolving Credit Facility Change in fair value of conversion derivative. Selling, General and Administrative Expenses Legal expenses for the six months ended June 30, 2015 were $7.0 million compared to $6.2 million for the six months ended June 30, 2014. Of the legal expense, approximately $4.2 million is associated with the USAO Investigation and related matters for the six months ended June 30, 2015, compared to $1.9 million for the six months ended June 30, 2014. See Note 14, “Commitments and Contingencies,” to the accompanying consolidated financial statements. Results of Discontinued Operations Six Months Ended June 30, 2015 Compared to Six Months Ended June 30, 2014 Net loss from our discontinued structured settlement operations for the six months ended June 30, 2015 was $302,000 as compared to a net loss of $204,000 for the six months ended June 30, 2014. Total income from our discontinued structured settlement operations was $73,000 for the six months ended June 30, 2015 compared to $112,000 in 2014. During the six months ended June 30, 2014, our discontinued structured settlement operations sold eight structured settlement for a gain of $18,000. There were no sales for the six months ended June 30, 2015. Unrealized change in fair value of structured settlements receivable was $16,000 for the six months ended June 30, 2015 and 2014, respectively. Total expenses from our discontinued structured settlement operations were $565,000 for the six months ended June 30, 2015 compared to $316,000 incurred during the same period in 2014. This increase was attributable to a $254,000 increase in legal fees. Liquidity and Capital Resources Our consolidated financial statements have been prepared assuming the realization of assets and the satisfaction of liabilities in the normal course, as well as continued compliance with the covenants contained in the Revolving Credit Facility, the indentures governing our note issuances and other financing arrangements. In the quarter ended June 30, 2015, the Company consummated a rights offering and raised $38.5 million through the issuance of 6,688,433 additional shares of its common stock. At June 30, 2015 we had approximately $55.6 million of cash and cash equivalents. We expect to meet our liquidity needs for the rest of the year primarily through a combination of the receipt of death benefits from life insurance policy maturities, revolving credit borrowings, capital market raises, policy sales (subject to the asset sale restrictions in our debt arrangements) and cash on hand. For the six months ended June 30, 2015, we paid $31.4 million in premiums to maintain our policies in force. Of this amount, $23.2 million was paid by White Eagle through its Revolving Credit Facility borrowings. While the liquidity risk associated with the policies that have been pledged as collateral under the Revolving Credit Facility has been mitigated, any available proceeds under the facility’s waterfall provisions will generally be directed to pay outstanding interest and principal on the loan unless the lenders determine otherwise. Accordingly, there can be no assurance as to when the proceeds from maturities of the policies pledged as collateral under the Revolving Credit Facility will be distributed to the Company. As we continue to acquire additional life settlement assets, we expect our premium obligations to increase. Assuming no policy maturities, as of June 30, 2015, we expect to pay $7.7 million in premiums during the remainder of 2015 on the 194 policies that have not been pledged by White Eagle under the Revolving Credit Facility. However, subsequent to June 30, 2015, we expect borrowings under the Red Falcon Credit Facility will pay for $6.7 million of this remaining premium amount. Additionally, at June 30, 2015, $70.7 million and $50.0 million in aggregate principal amount of Convertible Notes and Secured Notes was outstanding, which accrued interest at 8.50% and 12.875%, respectively. Interest on the Convertible Notes is due semi-annually and interest on the Secured Notes was due monthly. Following the end of the second quarter of 2015, we redeemed all of our outstanding Secured Notes. See Note 17, “Subsequent Events” of the notes to Consolidated Financial Statements. As of June 30, 2015, the Company’s cumulative legal and related fees in respect of the USAO Investigation (including indemnification obligations), the SEC Investigation, the IRS Investigation and related matters were $44.6 million, including $2.3 million and $1.2 million incurred during the three months ended June 30, 2015 and 2014, respectively, and $4.2 million and $1.9 million incurred during the six months ended June 30, 2015 and 2014, respectively. We believe we may continue to spend significant amounts on these matters as well as for general litigation and judicial proceedings over the next year, and possibly beyond. In addition, as part of the framework for the settlements of certain litigation arising from the USAO Investigation, the Company has undertaken to advance legal fees and indemnify certain individuals covered under the director and officer liability insurance policies. The remaining obligation to advance and indemnify on behalf of these individuals, while currently unquantifiable, may be substantial and could have a material adverse effect on the Company’s financial position and results of operations. Accordingly, the Company must proactively manage its cash in order to effectively run its businesses, service its debt and opportunistically grow its assets. To do so, the Company may in the future determine, subject to the covenants and restrictions in its deb

Principles of Consolidation a22

Principles of Consolidation and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments	Derivative Instruments In February 2014, the Company issued and sold $70.7 million in aggregate principal amount of 8.50% senior unsecured convertible notes due 2019 (the “Convertible Notes”). Prior to shareholder approval on June 5, 2014 to issue shares of common stock upon conversion of the Convertible Notes in excess of New York Stock Exchange limits for share issuances without shareholder approval, the Convertible Notes contained an embedded derivative feature. In accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging
Foreign Currency	Foreign Currency The Company owns certain foreign subsidiary companies formed under the laws of Ireland, Bahamas and Bermuda. These foreign subsidiary companies utilize the U.S. dollar as their functional currency. Any gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the subsidiary companies functional currency) are included in income. These gains and losses are immaterial to the Company’s financial statements.
Use of Estimates	Use of Estimates The preparation of these consolidated financial statements, in conformity with generally accepted accounting principles in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates and such differences could be material. Significant estimates made by management include income taxes, the valuation of life settlements, the valuation of the debt owing under the Revolving Credit Facility, the valuation of equity awards and the valuation of the conversion derivative liability formerly embedded within the Company’s Senior Unsecured Convertible Notes.

Consolidation of Variable Int23

Consolidation of Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2015
Consolidated Assets and Consolidated Liabilities of VIEs	The following table presents the consolidated assets and consolidated liabilities of VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated in the Company’s consolidated financial statements as of June 30, 2015 as well as non-consolidated VIEs for which the Company has determined it is not the primary beneficiary (in thousands): Not Primary Primary Beneficiary Beneficiary Consolidated VIEs Non-consolidated VIEs Maximum Total Exposure Assets Liabilities Assets To Loss June 30, 2015 $ 354,355 $ 171,299 $ 2,384 $ 2,384 December 31, 2014 $ 314,062 $ 146,254 $ 2,384 $ 2,384

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Reconciliation of Actual Basic and Diluted Earnings Per Share	The following tables reconcile actual basic and diluted earnings per share for the three months and six months ended June 30, 2015 and 2014 (in thousands except share and per share data). For the Three Months For the Six Months Ended June 30, Ended June 30, 2015(1) 2014(2) 2015(3) 2014(2) Income (loss) per share: Numerator: Net income (loss) from continuing operations $ 966 $ (6,281 ) $ (3,198 ) $ (9,600 ) Net loss from discontinued operations $ (145 ) $ (185 ) $ (302 ) $ (204 ) Net income (loss) $ 821 $ (6,466 ) $ (3,500 ) $ (9,804 ) Basic and diluted income (loss) per common share: Basic and diluted income (loss) from continuing operations $ 0.04 $ (0.29 ) $ (0.15 ) $ (0.45 ) Basic and diluted loss from discontinued operations $ — $ (0.01 ) $ (0.01 ) $ (0.01 ) Basic and diluted income (loss) per share available to common shareholders $ 0.04 $ (0.30 ) $ (0.16 ) $ (0.46 ) Denominator: Basic 21,961,034 21,350,200 21,663,137 21,347,173 Add: Restricted stock 3,870 — — — Diluted 21,964,904 21,350,200 21,663,137 21,347,173 (1) The computation of diluted EPS includes 3,870 incremental shares of restricted stock, but does not include 794,617 options, 6,240,521 warrants, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive. (2) The computation of diluted EPS does not include 815,448 options, 6,240,521 warrants, 41,060 shares of restricted stock, up to 10,464,491 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months and six months ended June 30, 2014, as the effect of their inclusion would have been anti-dilutive. (3) The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Common Stock Option Activity	The following table presents the activity of the Company’s outstanding stock options of common stock for the six months ended June 30, 2015: Weighted Average Weighted Remaining Aggregate Number of Average Price Contractual Intrinsic Common Stock Options Shares per Share Term Value Options outstanding, January 1, 2015 807,949 $ 8.50 4.48 — Options granted — — — — Options exercised — — — — Options forfeited — $ — — — Options expired (13,332 ) 9.23 3.80 — Options outstanding, June 30, 2015 794,617 $ 8.49 3.99 — Exercisable at June 30, 2015 794,617 $ 8.49 3.99 — Unvested at June 30, 2015 — — — —
Activity of Unvested Shares of Restricted Stock	The following table presents the activity of the Company’s unvested shares of restricted stock for the six months ended June 30, 2015: Number of Common Unvested Shares Shares Outstanding January 1, 2015 41,060 Granted 41,259 Vested (41,060 ) Forfeited — Outstanding June 30, 2015 41,259
Activity of Performance Share Awards	The following table presents the activity of the Company’s performance share awards for the six months ended June 30, 2015: Performance Shares Number of Shares Outstanding January 1, 2015 323,500 Awarded — Vested — Forfeited — Outstanding June 30, 2015 323,500

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Operating Results of Discontinued Structured Settlement Business	Operating results related to the Company’s discontinued structured settlement business are as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Total income $ 38 $ 38 $ 73 $ 112 Total expenses (274 ) (223 ) (565 ) (316 ) Loss before income taxes (236 ) (185 ) (492 ) (204 ) Income tax benefit 91 — 190 — Net loss from discontinued operations $ (145 ) $ (185 ) $ (302 ) $ (204 )

Life Settlements (Life Insura27

Life Settlements (Life Insurance Policies) (Tables)	6 Months Ended
	Jun. 30, 2015
Life Settlements	The following table describes the Company’s life settlements as of June 30, 2015 (dollars in thousands): Number of Life Settlement Fair Face Remaining Life Expectancy (In Years) Contracts Value Value 0 - 1 — $ — $ — 1 - 2 6 13,668 20,345 2 - 3 22 54,509 102,150 3 - 4 18 28,368 68,761 4 - 5 23 26,165 75,763 Thereafter 564 316,276 2,715,397 Total 633 $ 438,986 $ 2,982,416 The weighted average life expectancy calculated based on death benefit of insureds in the policies owned by the Company at December 31, 2014 was 10.7 years. The following table describes the Company’s life settlements as of December 31, 2014 (dollars in thousands): Remaining Life Expectancy (In Years) Number of Life Settlement Contracts Fair Value Face Value 0-1 — $ — $ — 1-2 4 9,227 12,728 2-3 10 23,202 45,852 3-4 16 29,531 67,735 4-5 19 23,012 65,614 Thereafter 558 303,914 2,739,137 Total 607 $ 388,886 $ 2,931,066
Estimated Premiums To Be Paid	Estimated premiums to be paid for each of the five succeeding fiscal years to keep the life insurance policies in force as of June 30, 2015, are as follows (in thousands): Remainder of 2015 $ 31,344 2016 66,913 2017 73,434 2018 75,850 2019 82,699 Thereafter 1,098,012 $ 1,428,252

Debt Disclosure (Tables)

Debt Disclosure (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value of Conversion Derivative Liability	The fair value of the conversion derivative liability was estimated at June 5, 2014 using a Black Scholes pricing model with the following assumptions: As of June 5, 2014 Expected Volatility 40.0 % Expected Term in Years 4.7 Risk Free Rate 1.5 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Assets And Liabilities Measured at Fair Value on Recurring Basis	The balances of the Company’s assets measured at fair value on a recurring basis as of June 30, 2015, are as follows (in thousands): Total Level 1 Level 2 Level 3 Fair Value Assets: Life settlements $ — $ — $ 438,986 $ 438,986 Structured settlement receivables — — 377 377 $ — $ — $ 439,363 $ 439,363 The balances of the Company’s liabilities measured at fair value on a recurring basis as of June 30, 2015 are as follows (in thousands): Total Level 1 Level 2 Level 3 Fair Value Liabilities: Revolving Credit Facility debt $ — $ — $ 170,858 $ 170,858 $ — $ — $ 170,858 $ 170,858 The balances of the Company’s assets measured at fair value on a recurring basis as of December 31, 2014, are as follows (in thousands): Level 1 Level 2 Level 3 Total Fair Value Assets: Life settlements $ — $ — $ 388,886 $ 388,886 Structured settlement receivables — — 384 384 $ — $ — $ 389,270 $ 389,270 The balances of the Company’s liabilities measured at fair value on a recurring basis as of December 31, 2014, are as follows (in thousands): Level 1 Level 2 Level 3 Total Fair Value Liabilities: Revolving Credit Facility debt $ — $ — $ 145,831 $ 145,831 $ — $ — $ 145,831 $ 145,831
Quantitative Information about Level 3 Fair Value Measurements	The Company values its life settlement portfolio in two classes, non-premium financed and premium financed. In considering the categories, it is generally believed that market participants would require a lower risk premium for policies that were non-premium financed, while a higher risk premium would be required for policies that were premium financed although the Company believes that this risk premium has been declining. ($ in thousands) Quantitative Information about Level 3 Fair Value Measurements Aggregate Fair Value death benefit Range at 6/30/15 at 6/30/15 Valuation Technique Unobservable Input (s) (Weighted Average) Non-premium financed $ 88,237 $ 327,048 Discounted cash flow Discount rate 15.00% - 21.00% Life expectancy evaluation (6.9 years) Premium financed $ 350,749 $ 2,655,368 Discounted cash flow Discount rate 16.00% - 24.75% Life expectancy evaluation (10.6 years) Life settlements $ 438,986 $ 2,982,416 Discounted cash flow Discount rate (17.13%) Life expectancy evaluation (10.2 years) Structured settlement receivables $ 377 N/A Discounted cash flow Facility sales discount rates 8.66% Discount rate 23.64% Revolving Credit Facility debt $ 170,858 N/A Discounted cash flow Life expectancy evaluation (10.1 years)
Changes in Estimated Fair Value, If All of Insured Lives in Company's Life Settlement Portfolio Live Six Months Shorter or Longer Than Life Expectancies Provided by Third Parties	If all of the insured lives in the Company’s life settlement portfolio live six months shorter or longer than the life expectancies provided by these third parties, the change in estimated fair value would be as follows (dollars in thousands): Life Expectancy Months Adjustment Value Change in Value +6 $ 368,975 $ (70,011 ) - $ 438,986 — -6 $ 514,853 $ 75,867
Life Insurance Issuer concentrations	The following table provides information about the life insurance issuer concentrations that exceed 10% of total death benefit and 10% of total fair value of the Company’s life settlements as of June 30, 2015: Percentage of Percentage of Total Total Death Moody’s S&P Carrier Fair Value Benefit Rating Rating Transamerica Life Insurance Company 21.1 % 20.6 % A1 AA- Lincoln National Life Insurance Company 21.8 % 19.7 % A1 AA-
Changes in Fair Value for All Assets Using Material Level of Unobservable (Level 3) Inputs	The Convertible Notes continue to be recorded at accreted value up to the par value of the Convertible Notes at maturity. See Note 10, “8.50% Senior Unsecured Convertible Notes.” Although the Company believes its valuation method is appropriate, the use of different methodologies or assumptions to determine the fair value could result in different fair values. Changes in Fair Value The following table provides a roll-forward in the changes in fair value for six months ended June 30, 2015, for all assets for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Life Settlements: Balance, January 1, 2015 $ 388,886 Purchase of policies 27,535 Change in fair value 40,914 Matured/lapsed/sold policies (49,766 ) Premiums paid 31,417 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2015 $ 438,986 Changes in fair value included in earnings for the period relating to assets held at June 30, 2015 $ 2,598 Life Settlements: Balance, January 1, 2014 $ 302,961 Change in fair value 22,956 Matured/sold policies (15,957 ) Premiums paid 26,886 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2014 336,846 Changes in fair value included in earnings for the period relating to assets held at June 30, 2014 $ 12,270
Changes in Fair Value for All Liabilities Using Material Level of Unobservable (Level 3) Inputs	The following table provides a roll-forward in the changes in fair value for six months ended June 30, 2015, for all liabilities for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Revolving Credit Facility debt: Balance, January 1, 2015 $ 145,831 Draws under the revolving credit facility 25,912 Payments on credit facility (18,577 ) Unrealized change in fair value 17,692 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2015 $ 170,858 Changes in fair value included in earnings for the period relating to liabilities held at June 30, 2015 $ 17,692 The following tables provide a roll-forward in the changes in fair value for the six months ended June 30, 2014, for all liabilities for which the Company determines fair value using a material level of unobservable (Level 3) inputs (in thousands): Revolving Credit Facility debt: Balance, January 1, 2014 $ 123,847 Subsequent draws under the revolving credit facility 27,124 Payments on credit facility (6,006 ) Unrealized change in fair value 3,818 Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2014 $ 148,783 Changes in fair value included in earnings for the period relating to liabilities held at June 30, 2014 $ 3,818 Conversion derivative liability: Balance, at inception $ 16,901 Change in fair value 6,759 Reclassified to equity (23,660 ) Transfers into level 3 — Transfer out of level 3 — Balance, June 30, 2014 — Changes in fair value included in earnings for the period relating to liabilities held at June 30, 2014 $ —
Revolving Credit Facility
Changes in Estimated Fair Value, If All of Insured Lives in Company's Life Settlement Portfolio Live Six Months Shorter or Longer Than Life Expectancies Provided by Third Parties	If all of the insured lives in the life settlement portfolio pledged under the Revolving Credit Facility live six months shorter or longer than the life expectancies used to calculate the estimated fair value of the Revolving Credit Facility debt, the change in estimated fair value would be as follows (dollars in thousands): Fair Value of Revolving Credit Life Expectancy Months Adjustment Facility Debt Change in Value +6 $ 149,064 $ (21,794 ) $ 170,858 — -6 $ 194,240 $ 23,382
Market Approach Valuation Technique
Market Interest Rate Sensitivity Analysis	Market interest rate sensitivity analysis Weighted Average Rate Calculated Based on Death Benefit Rate Adjustment Value Change in Value 16.63% -0.50 % $ 450,574 $ 11,588 17.13% - $ 438,986 $ — 17.63% +0.50 % $ 427,900 $ (11,086 )
Market Approach Valuation Technique | Revolving Credit Facility
Market Interest Rate Sensitivity Analysis	If the weighted average discount rate were increased or decreased by 1 2 Fair Value of Revolving Credit Discount Rate Rate Adjustment Facility Debt Change in Value 23.14% -0.50 % $ 173,578 $ 2,720 23.64% - $ 170,858 $ — 24.14% +0.50 % $ 168,230 $ (2,628 )

Description of Business - Addit

Description of Business - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract		Nov. 10, 2014	Apr. 29, 2013USD ($)
Organization and Nature of Operations [Line Items]
Number of policies owned | Contract	633	607
Life insurance estimated fair value	$ 438,986	$ 388,886
Life insurance policies with aggregate death benefit	2,982,416	2,931,066
Senior secured notes, net of discount	48,300	$ 24,036	[1]
12.875% Senior Secured Notes Due 2017
Organization and Nature of Operations [Line Items]
Senior secured notes, net of discount	$ 50,000
Debt instrument, interest rate				12.875%
Securities Pledged as Collateral | 12.875% Senior Secured Notes Due 2017
Organization and Nature of Operations [Line Items]
Number of policies owned | Contract	194
Life insurance estimated fair value	$ 122,500
Life insurance policies with aggregate death benefit	779,600
Senior secured notes, net of discount	$ 50,000
Debt instrument, interest rate	12.875%
Revolving Credit Facility
Organization and Nature of Operations [Line Items]
Revolving Credit facility, current borrowing capacity	$ 170,700				$ 300,000
Revolving Credit Facility | Securities Pledged as Collateral
Organization and Nature of Operations [Line Items]
Number of policies owned | Contract	439
Life insurance estimated fair value	$ 316,500
Life insurance policies with aggregate death benefit	$ 2,200,000
Revolving credit facility period	15 years
Revolving Credit facility, current borrowing capacity	$ 300,000
[1]	Derived from audited consolidated financial statements.

Principles of Consolidation a31

Principles of Consolidation and Basis of Presentation - Additional Information (Detail) $ in Thousands	Oct. 25, 2013USD ($)	Jun. 30, 2015USD ($)Contract	Feb. 28, 2015USD ($)	Dec. 31, 2014USD ($)Contract	Feb. 28, 2014USD ($)
Organization and Nature of Operations [Line Items]
Number of policies owned | Contract		633		607
Life insurance policies with aggregate death benefit		$ 2,982,416		$ 2,931,066
Life insurance estimated fair value		$ 438,986		$ 388,886
Sale of structured settlement business	$ 12,000
8.50% Senior Unsecured Convertible Notes Due 2019
Organization and Nature of Operations [Line Items]
Debt instrument issued			$ 70,700		$ 70,700
Debt instrument, stated interest rate			8.50%		8.50%
Revolving Credit Facility | Securities Pledged as Collateral
Organization and Nature of Operations [Line Items]
Number of policies owned | Contract		439
Life insurance policies with aggregate death benefit		$ 2,200,000
Life insurance estimated fair value		$ 316,500

Consolidated Assets and Consoli

Consolidated Assets and Consolidated Liabilities of VIEs (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Primary Beneficiary Variable Interest Entity
Variable Interest Entity [Line Items]
Primary Beneficiary Consolidated VIEs, assets	$ 354,355	$ 314,062
Primary Beneficiary Consolidated VIEs, liabilities	171,299	146,254
Not Primary Beneficiary Variable Interest Entity
Variable Interest Entity [Line Items]
Not Primary Beneficiary Non-consolidated VIEs, total assets	2,384	2,384
Not Primary Beneficiary Non-consolidated VIEs, Maximum Exposure to Loss	$ 2,384	$ 2,384

Consolidation of Variable Int33

Consolidation of Variable Interest Entities - Additional Information (Detail) $ in Thousands	Jun. 30, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Variable Interest Entity [Line Items]
Number of policies owned | Contract	633	607
Life insurance policies with aggregate death benefit	$ 2,982,416	$ 2,931,066
Life insurance estimated fair value	$ 438,986	$ 388,886
Revolving Credit Facility | Securities Pledged as Collateral
Variable Interest Entity [Line Items]
Number of policies owned | Contract	439
Life insurance policies with aggregate death benefit	$ 2,200,000
Life insurance estimated fair value	$ 316,500

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Jun. 30, 2015	Dec. 31, 2014	[1]	Jun. 30, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common stock, shares issued	28,130,508	21,402,990		21,402,990
Common stock, shares outstanding	28,130,508	21,402,990		21,402,990
[1]	Derived from audited consolidated financial statements.

Reconciliation of Actual Basic

Reconciliation of Actual Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 30, 2015		Jun. 30, 2014	[2]	Jun. 30, 2015	[3]	Jun. 30, 2014	[2]
Numerator:
Net income (loss) from continuing operations		$ 966	[1]	$ (6,281)		$ (3,198)		$ (9,600)
Net loss from discontinued operations		(145)	[1]	(185)		(302)		(204)
Net income (loss)		$ 821	[1]	$ (6,466)		$ (3,500)		$ (9,804)
Basic and diluted income (loss) per common share:
Basic and diluted income (loss) from continuing operations		$ 0.04	[1]	$ (0.29)		$ (0.15)		$ (0.45)
Basic and diluted loss from discontinued operations				(0.01)		(0.01)		(0.01)
Basic and diluted income (loss) per share available to common shareholders		$ 0.04	[1]	$ (0.30)		$ (0.16)		$ (0.46)
Denominator:
Basic		21,961,034	[1]	21,350,200		21,663,137		21,347,173
Add: Restricted stock	[1]	3,870
Diluted		21,964,904	[1]	21,350,200		21,663,137		21,347,173
[1]	The computation of diluted EPS includes 3,870 incremental shares of restricted stock, but does not include 794,617 options, 6,240,521 warrants, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.
[2]	The computation of diluted EPS does not include 815,448 options, 6,240,521 warrants, 41,060 shares of restricted stock, up to 10,464,491 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months and six months ended June 30, 2014, as the effect of their inclusion would have been anti-dilutive.
[3]	The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.

Reconciliation of Actual Basi36

Reconciliation of Actual Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Option
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share	794,617	815,448	794,617	815,448
Warrant
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share	6,240,521	6,240,521	6,240,521	6,240,521
Restricted Stock
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share	3,870	41,060	41,259	41,060
Convertible Debt Securities | Maximum
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share	10,738,165	10,464,491	10,738,165	10,464,491
Performance Shares
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share	323,500	323,500	323,500	323,500

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	Feb. 11, 2011	Apr. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted					0
Options granted strike price					$ 0
Stock-based compensation expense					$ 368,000	$ 561,000
Options outstanding and unexercised			794,617		794,617		807,949
Options outstanding and unexercised, weighted average price			$ 8.49		$ 8.49		$ 8.50
Remaining unamortized amounts			$ 0		$ 0
Expected issuance of warrants for shares		2,000,000
Exercise price of warrants	$ 14.51		$ 10.75		$ 10.75
Warrant expiration period	7 years
Estimated Fair Value Of Warrants			$ 5,400,000		$ 5,400,000
Common stock warrants term					5 years
Including Overallotment Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants			$ 14.51		$ 14.51
Warrants issued			4,240,521		4,240,521
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average daily trading closing price			$ 8.50		$ 8.50
Average daily trading closing price, period					45 days
Maximum | Including Overallotment Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected issuance of warrants for shares	4,240,521
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for future grant			2,700,000		2,700,000				2,700,000
Options granted								545,000
Options granted strike price								$ 6.94
Options outstanding and unexercised			794,617		794,617
Options outstanding and unexercised, weighted average price			$ 8.49		$ 8.49
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted					41,259
Stock vested					41,060
Restricted stock, aggregate intrinsic value			$ 238,000		$ 238,000
Restricted stock, weighted average remaining life					10 months 24 days
Restricted Stock | Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 71,000	$ 39,000	$ 131,000	69,000
Stock granted			41,259		103,112
Stock vested				17,286
Fair value of stock vested				$ 120,000
Fair value of stock granted			$ 255,000		$ 255,000
Stock vesting period			1 year
Restricted Stock | Omnibus Plan | Restricted Stock One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				22,000		52,000
Restricted Stock | Omnibus Plan | Restricted Stock Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 22,000		22,000
Restricted Stock | Omnibus Plan | Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 49,000	17,000	108,000	17,000
Stock granted			41,060
Fair value of stock granted			$ 255,000		255,000
Stock Options | Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 104,000	$ 152,000	$ 237,000	$ 492,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted					0
Stock vested					0
Performance Shares | Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted			323,500		323,500		323,500
Stock granted, subject to shareholders' approval of an amended and restated of plan			150,000		150,000		150,000
Stock vesting period					1 year
Performance Shares | Omnibus Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Actual shares to be issued			0.00%		0.00%
Performance Shares | Omnibus Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Actual shares to be issued			150.00%		150.00%

Common Stock Options Activity (

Common Stock Options Activity (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Number of Shares
Options outstanding, Beginning Balance	807,949
Options granted	0
Options exercised	0
Options forfeited	0
Options expired	(13,332)
Options outstanding, Ending Balance	794,617	807,949
Exercisable at end of period	794,617
Unvested at end of period	0
Weighted Average Price per Share
Options outstanding, Beginning Balance	$ 8.50
Options granted	0
Options exercised	0
Options forfeited	0
Options expired	9.23
Options outstanding, Ending Balance	8.49	$ 8.50
Exercisable at end of period	8.49
Unvested at end of period	$ 0
Weighted Average Remaining Contractual Term
Options expired	3 years 9 months 18 days
Options outstanding, Beginning Balance	3 years 11 months 27 days	4 years 5 months 23 days
Exercisable at end of period	3 years 11 months 27 days
Unvested at end of period
Aggregate Intrinsic Value
Options outstanding, Beginning Balance	$ 0
Options granted	0
Options exercised	0
Options forfeited	0
Options expired	0
Options outstanding, Ending Balance	0	$ 0
Exercisable at end of period	0
Unvested at end of period	$ 0

Activity of Unvested Shares of

Activity of Unvested Shares of Restricted Stock (Detail) - Restricted Stock - shares	6 Months Ended
	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Unvested Shares outstanding, Beginning Balance	41,060
Granted	41,259
Vested	(41,060)
Forfeited	0
Common Unvested Shares outstanding, Ending Balance	41,259

Activity of Performance Share A

Activity of Performance Share Awards (Detail) - Performance Shares - shares	6 Months Ended
	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Unvested Shares outstanding, Beginning Balance	323,500
Awarded	0
Vested	0
Forfeited	0
Common Unvested Shares outstanding, Ending Balance	323,500

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - Structured settlements - USD ($) $ in Millions	Oct. 25, 2013	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale of structured settlement business	$ 12
Recognized a gain on structured settlement assets		$ 11.3

Operating Results of Structured

Operating Results of Structured Settlement Business (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2015		Jun. 30, 2014		Jun. 30, 2015		Jun. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total income	$ 38		$ 38		$ 73		$ 112
Total expenses	(274)		(223)		(565)		(316)
Loss before income taxes	(236)		(185)		(492)		(204)
Income tax benefit	91				190
Net loss from discontinued operations	$ (145)	[1]	$ (185)	[2]	$ (302)	[3]	$ (204)	[2]
[1]	The computation of diluted EPS includes 3,870 incremental shares of restricted stock, but does not include 794,617 options, 6,240,521 warrants, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.
[2]	The computation of diluted EPS does not include 815,448 options, 6,240,521 warrants, 41,060 shares of restricted stock, up to 10,464,491 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the three months and six months ended June 30, 2014, as the effect of their inclusion would have been anti-dilutive.
[3]	The computation of diluted EPS does not include 794,617 options, 6,240,521 warrants, 41,259 shares of restricted stock, up to 10,738,165 shares of underlying common stock issuable upon conversion of the Convertible Notes and 323,500 performance shares for the six months ended June 30, 2015, as the effect of their inclusion would have been anti-dilutive.

Life Settlements (Life Insura43

Life Settlements (Life Insurance Policies) - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Life Insurance Premiums and Related Investment Income [Line Items]
Number of policies owned | Contract	633	607
Life insurance estimated fair value	$ 438,986	$ 388,886
Average life expectancy of insured	10 years 2 months 12 days
Estimated future premium payments	$ 1,428,252

Life Settlements (Detail)

Life Settlements (Detail) $ in Thousands	Jun. 30, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Number of Life Settlement Contracts
0-1 | Contract	0	0
1-2 | Contract	6	4
2-3 | Contract	22	10
3-4 | Contract	18	16
4-5 | Contract	23	19
Thereafter | Contract	564	558
Total | Contract	633	607
Fair Value
0-1	$ 0	$ 0
1-2	13,668	9,227
2-3	54,509	23,202
3-4	28,368	29,531
4-5	26,165	23,012
Thereafter	316,276	303,914
Total	438,986	388,886
Face Value
0-1	0	0
1-2	20,345	12,728
2-3	102,150	45,852
3-4	68,761	67,735
4-5	75,763	65,614
Thereafter	2,715,397	2,739,137
Total	$ 2,982,416	$ 2,931,066

Estimated Premiums to be Paid (

Estimated Premiums to be Paid (Detail) $ in Thousands	Jun. 30, 2015USD ($)
Life Insurance Premiums and Related Investment Income [Line Items]
Remainder of 2015	$ 31,344
2,016	66,913
2,017	73,434
2,018	75,850
2,019	82,699
Thereafter	1,098,012
Estimated future premium payments	$ 1,428,252

Revolving Credit Facility - Add

Revolving Credit Facility - Additional Information (Detail)	May. 16, 2014USD ($)	Apr. 29, 2013USD ($)	Jun. 30, 2015USD ($)Contract	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Contract	Jun. 30, 2014USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)Contract
Debt Instrument [Line Items]
Number of policies owned | Contract			633		633			607
Life insurance policies with aggregate death benefit			$ 2,982,416,000		$ 2,982,416,000			$ 2,931,066,000
Life insurance estimated fair value			438,986,000		438,986,000			388,886,000
Interest expense on the facility			6,600,000	$ 4,061,000	12,877,000	$ 6,862,000
Interest expense withheld from borrowings by lender					3,688,000	3,193,000
Interest paid					7,408,000	1,017,000
Revolving Credit Facility debt, at estimated fair value			170,858,000		170,858,000			$ 145,831,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility period		15 years
Revolving credit facility effective date		Apr. 29, 2013
Revolving Credit facility, current borrowing capacity		$ 300,000,000	170,700,000		170,700,000
Line of credit facility, maximum borrowing capacity			132,000,000		132,000,000
Line of credit facility, remaining borrowing capacity			$ 2,700,000		$ 2,700,000
Collateral pledge percentage for distributions to be altered		25.00%
Base rate	0.50%
Debt instrument effective rate			5.50%		5.50%
Interest expense on the facility			$ 2,300,000	1,900,000	$ 4,600,000	3,700,000
Interest expense withheld from borrowings by lender			1,700,000	1,400,000	3,300,000	2,700,000
Interest paid			622,000	$ 518,000	1,200,000	$ 1,000,000
Credit agreement expiration date	Apr. 28, 2028
Revolving Credit Facility debt, at estimated fair value			170,858,000		170,858,000		$ 170,858,000
Revolving Credit Facility debt, outstanding			168,000,000		168,000,000
Revolving Credit Facility | Maintenance Costs
Debt Instrument [Line Items]
Line of credit borrowing base percentage	100.00%
Revolving Credit Facility | Accrued and Unpaid Interest
Debt Instrument [Line Items]
Line of credit borrowing base percentage	100.00%
Revolving Credit Facility | Other Fees and Expense [Member]
Debt Instrument [Line Items]
Line of credit borrowing base percentage	100.00%
Revolving Credit Facility | Policies pledged as collateral as determined by the lenders
Debt Instrument [Line Items]
Line of credit borrowing base percentage	75.00%
Revolving Credit Facility | Policies pledged as collateral excluding certain specified life insurance policies
Debt Instrument [Line Items]
Line of credit borrowing base percentage	50.00%
Revolving Credit Facility | Securities Pledged as Collateral
Debt Instrument [Line Items]
Revolving Credit facility, current borrowing capacity			$ 300,000,000		$ 300,000,000
Number of policies owned | Contract			439		439
Life insurance policies with aggregate death benefit			$ 2,200,000,000		$ 2,200,000,000
Life insurance estimated fair value			$ 316,500,000		$ 316,500,000
Revolving Credit Facility | Floor Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Revolving Credit Facility | Applicable Margin
Debt Instrument [Line Items]
Basis spread on variable rate	4.00%
Revolving Credit Facility | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.75%
White Eagle Asset Portfolio, LLC | Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit facility, current borrowing capacity	$ 300,000,000

8.50% Senior Unsecured Converti

8.50% Senior Unsecured Convertible Notes - Additional Information (Detail)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2014USD ($)Directord$ / shares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2014USD ($)	Feb. 28, 2015USD ($)	Dec. 31, 2014USD ($)	[1]	Jun. 05, 2014USD ($)
Debt Instrument [Line Items]
Common stock issued for rights offering, net of costs | shares		6,688,433
Senior unsecured convertible notes, net of discount		$ 57,156,000		$ 57,156,000			$ 55,881,000
Debt instrument origination cost		$ 3,724,000		$ 3,724,000			$ 3,936,000
Change in fair value of conversion derivative liability			$ 4,697,000		$ 6,759,000
8.50% Senior Unsecured Convertible Notes Due 2019
Debt Instrument [Line Items]
Debt instrument issued	$ 70,700,000					$ 70,700,000
Debt instrument, interest rate	8.50%					8.50%
Debt instrument, due date				2,019
Debt instrument, issuance date	Feb. 21, 2014
Number of board of directors | Director	2
Debt instrument, maturity date				Feb. 15, 2019
Debt instrument, frequency of periodic payment				Semi-annually in arrears on August 15 and February 15 of each year
Debt instrument, convertible, conversion rate	147.9290	151.7912		151.7912
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 6.76	$ 6.59		$ 6.59
Common stock issued for rights offering, net of costs | shares		6,688,433
Debt instrument, redemption start date				Feb. 15, 2017
Debt instrument, convertible, minimum percentage of common stock price	130.00%
Debt instrument, convertible, threshold trading days | d	20
Debt instrument, convertible, threshold consecutive trading days	30 days
Debt instrument, redemption price, percentage	100.00%
Conversion derivative liability, at estimated fair value									$ 23,700,000
Senior unsecured convertible notes, net of discount		$ 57,200,000		$ 57,200,000
Unamortized debt discount		13,600,000		13,600,000
Debt instrument origination cost		2,000,000		2,000,000
Interest expense of notes		2,300,000	2,200,000	4,500,000	3,100,000
Interest		1,500,000	1,500,000	3,000,000	2,200,000
Amortizing debt discounts		661,000	554,000	1,300,000	804,000
Debt issuance cost		$ 98,000	101,000	$ 189,000	149,000
Change in fair value of conversion derivative liability			$ 4,697,000		$ 6,759,000
8.50% Senior Unsecured Convertible Notes Due 2019 | Reclassifications to Additional Paid in Capital
Debt Instrument [Line Items]
Unamortized transaction costs									756,000
Deferred tax asset, conversion derivative liability									$ 8,800,000
8.50% Senior Unsecured Convertible Notes Due 2019 | Bulldog Investors Llc
Debt Instrument [Line Items]
Debt instrument issued	$ 9,200,000
[1]	Derived from audited consolidated financial statements.

Fair Value of Conversion Deriva

Fair Value of Conversion Derivative Liability (Detail) - Jun. 05, 2014 - 8.50% Senior Unsecured Convertible Notes Due 2019 - Conversion derivative liability	Total
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Expected Volatility	40.00%
Expected Term in Years	4 years 8 months 12 days
Risk Free Rate	1.50%

12.875% Senior Secured Notes -

12.875% Senior Secured Notes - Additional Information (Detail)	Jan. 21, 2015USD ($)	Nov. 10, 2014USD ($)Director	Jun. 30, 2015USD ($)Contract	Jun. 30, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Debt Instrument [Line Items]
Number of policies owned | Contract			633	633	607
Life insurance policies with aggregate death benefit			$ 2,982,416,000	$ 2,982,416,000	$ 2,931,066,000
Life insurance estimated fair value			438,986,000	438,986,000	388,886,000
Senior secured notes, net of discount			48,300,000	48,300,000	$ 24,036,000	[1]
12.875% Senior Secured Notes Due 2017
Debt Instrument [Line Items]
Debt instrument, interest rate		12.875%
Debt instrument, maturity date		Nov. 10, 2017
Senior secured notes, net of discount			50,000,000	50,000,000
Interest expense			2,000,000	3,800,000
Unused fees of debt			126,000	255,000
Interest			1,600,000	3,000,000
Amortizing debt discounts			147,000	264,000
Debt issuance cost			$ 149,000	$ 277,000
12.875% Senior Secured Notes Due 2017 | Indaba Capital Management Lp [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	$ 25,000,000	$ 25,000,000
Secured notes issuance price as percentage of face amount	96.00%	96.00%
Payments of Debt Issuance Costs	$ 305,000	$ 1,800,000
Number of directors that might be appointed in the board | Director		1
Percentage of voting interest that might be acquired by the appointed director		5.00%
12.875% Senior Secured Notes Due 2017 | Extended Term [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		14.50%
Debt instrument, maturity term		12 months
12.875% Senior Secured Notes Due 2017 | Maximum
Debt Instrument [Line Items]
Debt instrument, face amount		$ 100,000,000
12.875% Senior Secured Notes Due 2017 | Securities Pledged as Collateral
Debt Instrument [Line Items]
Debt instrument, interest rate			12.875%	12.875%
Percentage of first tier foreign subsidiaries equity interests pledge to secure debt		65.00%
Number of policies owned | Contract			194	194
Life insurance policies with aggregate death benefit			$ 779,600,000	$ 779,600,000
Life insurance estimated fair value			122,500,000	122,500,000
Senior secured notes, net of discount			$ 50,000,000	$ 50,000,000
[1]	Derived from audited consolidated financial statements.

Assets And Liabilities Measured

Assets And Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of life insurance policies held	$ 438,986	$ 388,886
Structured settlement receivables	377	384	[1]
Assets, Fair Value Disclosure, Total	439,363	389,270
Revolving Credit Facility debt	170,858	145,831
Financial and Nonfinancial Liabilities, Fair Value Disclosure	170,858	145,831
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of life insurance policies held	438,986	388,886
Structured settlement receivables	377	384
Assets, Fair Value Disclosure, Total	439,363	389,270
Revolving Credit Facility debt	170,858	145,831
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 170,858	$ 145,831
[1]	Derived from audited consolidated financial statements.

Quantitative Information about

Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Life settlements	$ 438,986		$ 388,886
Structured settlement receivables	377		384	[1]
Revolving Credit Facility debt	170,858		145,831
Life settlements	$ 2,982,416		2,931,066
Weighted average discount rate	17.13%
Structured settlements
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Weighted average discount rate	8.66%
Revolving Credit Facility
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Revolving Credit Facility debt	$ 170,858	$ 170,858
Discount Rate	23.64%
Minimum | Non Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	15.00%
Minimum | Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	16.00%
Maximum | Non Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	21.00%
Maximum | Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	24.75%
Fair Value, Inputs, Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Life settlements	$ 438,986		388,886
Structured settlement receivables	377		384
Revolving Credit Facility debt	170,858		$ 145,831
Life settlements	2,982,416
Fair Value, Inputs, Level 3 | Non Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Life settlements	88,237
Life settlements	327,048
Fair Value, Inputs, Level 3 | Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Life settlements	350,749
Life settlements	$ 2,655,368
Fair Value, Inputs, Level 3 | Life Finance
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation Technique	Discounted cash flow
Weighted average life expectancy valuation period	10 years 2 months 12 days
Weighted average discount rate	17.13%
Fair Value, Inputs, Level 3 | Life Finance | Non Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation Technique	Discounted cash flow
Weighted average life expectancy valuation period	6 years 10 months 24 days
Fair Value, Inputs, Level 3 | Life Finance | Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation Technique	Discounted cash flow
Weighted average life expectancy valuation period	10 years 7 months 6 days
Fair Value, Inputs, Level 3 | Structured settlements
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation Technique	Discounted cash flow
Weighted average discount rate	8.66%
Fair Value, Inputs, Level 3 | Revolving Credit Facility
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Valuation Technique	Discounted cash flow
Weighted average life expectancy valuation period	10 years 1 month 6 days
Weighted average discount rate	23.64%
Fair Value, Inputs, Level 3 | Minimum | Life Finance | Non Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	15.00%
Fair Value, Inputs, Level 3 | Minimum | Life Finance | Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	16.00%
Fair Value, Inputs, Level 3 | Maximum | Life Finance | Non Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	21.00%
Fair Value, Inputs, Level 3 | Maximum | Life Finance | Premium Financed
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount Rate	24.75%
[1]	Derived from audited consolidated financial statements.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) $ in Thousands	Apr. 29, 2013USD ($)	Jun. 30, 2015USD ($)Contract	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)Contract		Mar. 31, 2013
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortality rate		100.00%
Life expectancy, percentage		18.46%
Number of life insurance policies		633		607
Life insurance estimated fair value | $		$ 438,986		$ 388,886
Weighted average discount rate		17.13%
Settlements with estimated fair value | $		$ 377		384	[1]
Revolving Credit Facility debt, at estimated fair value | $		$ 170,858		$ 145,831
Structured settlements
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		17
Weighted average discount rate		8.66%
21st Services
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Life expectancy, percentage						19.00%
Noninvestment grade
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		18
Additional basis point risk premium		3.00%
Life Expectancy Update Received
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		684
Contracts Used to Calculate Life Expectancy Extension
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		507
Premium Financed
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		548
Premium Financed | Minimum
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount rates		16.00%
Premium Financed | Maximum
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount rates		24.75%
Non Premium Financed
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		85
Non Premium Financed | Minimum
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount rates		15.00%
Non Premium Financed | Maximum
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount rates		21.00%
Impaired life bearing
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortality rate		200.00%
Revolving Credit Facility
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Discount rates		23.64%
Percentage of remaining proceeds	100.00%
Revolving Credit Facility debt, at estimated fair value | $		$ 170,858	$ 170,858
Revolving Credit Facility debt, outstanding | $		$ 168,000
Revolving Credit Facility | White Eagle Asset Portfolio, LLC
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Percentage of remaining proceeds	50.00%
Proceeds to be paid to White Eagle after payment of loan | $	$ 76,100
Revolving Credit Facility | Securities Pledged as Collateral
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Number of life insurance policies		439
Life insurance estimated fair value | $		$ 316,500
[1]	Derived from audited consolidated financial statements.

Changes in Life Expectancy Used

Changes in Life Expectancy Used to Estimate Fair Value (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value		$ 438,986		$ 388,886
Change in Value	$ (67)		$ (426)
+6 Life Expectancy Months Adjustment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value		368,975
Change in Value		(70,011)
-6 Life Expectancy Months Adjustment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value		514,853
Change in Value		$ 75,867

Life Insurance Issuer concentra

Life Insurance Issuer concentrations (Detail) - Credit Concentration Risk [Member] - Moody's, A1 Rating - Standard & Poor's, AA- Rating	6 Months Ended
	Jun. 30, 2015
Lincoln National Life Insurance Company | 10% of total fair value of our investments in life settlements
Concentration Risk [Line Items]
Concentrations risk percentage	21.10%
Lincoln National Life Insurance Company | Life insurance issuer concentrations that exceed 10% of total death benefit
Concentration Risk [Line Items]
Concentrations risk percentage	20.60%
Transamerica Occidental Life Insurance Company | 10% of total fair value of our investments in life settlements
Concentration Risk [Line Items]
Concentrations risk percentage	21.80%
Transamerica Occidental Life Insurance Company | Life insurance issuer concentrations that exceed 10% of total death benefit
Concentration Risk [Line Items]
Concentrations risk percentage	19.70%

Changes in Weighted Average Dis

Changes in Weighted Average Discount Rate Used to Estimate Fair Value (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average Rate		17.13%
Value		$ 438,986		$ 388,886
Change in Value	$ (67)		$ (426)
.50% Decrease in Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average Rate		16.63%
Value		$ 450,574
Change in Value		$ 11,588
.50% Increase in Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted Average Rate		17.63%
Value		$ 427,900
Change in Value		$ (11,086)

Changes in Life Expectancy Us56

Changes in Life Expectancy Used to Estimate Fair Value of Revolving Credit Facility (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value		$ 170,858	$ 145,831
Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value	$ 170,858	$ 170,858
+6 Life Expectancy Months Adjustment | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value	149,064
Change in Value	(21,794)
-6 Life Expectancy Months Adjustment | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value	194,240
Change in Value	$ 23,382

Changes in Weighted Average D57

Changes in Weighted Average Discount Rate Used to Estimate Fair Value of Revolving Credit Facility (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value	$ 170,858		$ 145,831
Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount Rate	23.64%
Value	$ 170,858	$ 170,858
.50% Decrease in Discount Rate | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount Rate	23.14%
Value	$ 173,578
Change in Value	$ 2,720
.50% Increase in Discount Rate | Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount Rate	24.14%
Value	$ 168,230
Change in Value	$ (2,628)

Changes in Fair Value for All A

Changes in Fair Value for All Assets and Liabilities Using Material Level of Unobservable (Level 3) Inputs (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Life Finance
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning Balance	$ 388,886	$ 302,961
Purchase of policies	27,535
Change in fair value	40,914	22,956
Matured/lapsed/sold policies	(49,766)	(15,957)
Premiums paid	31,417	26,886
Transfers into level 3	0	0
Transfer out of level 3	0	0
Ending Balance	438,986	336,846
Changes in fair value included in earnings for the period relating to assets held	2,598	12,270
Revolving Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	145,831	123,847
Draws under the revolving credit facility	25,912	27,124
Payments on credit facility	(18,577)	(6,006)
Change in fair value	17,692	3,818
Transfers into level 3	0	0
Transfer out of level 3	0	0
Ending balance	$ 170,858	148,783
Conversion derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance		16,901
Change in fair value		6,759
Reclassified to equity		(23,660)
Transfers into level 3		0
Transfer out of level 3		$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Jul. 29, 2013USD ($)	May. 06, 2013USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Apr. 18, 2013Contract
Commitments and Contingencies [Line Items]
Percentage of annual increase of base rent			3.00%
Annual base rent			$ 225,100
Lease expiration date			Sep. 30, 2020
Rent expense under operating lease			$ 104,000	$ 126,000	$ 197,000	$ 252,000
Operating leases, remainder of year ended december 31, 2015			114,000		114,000
Indemnification expenses			822,000	574,000	$ 1,500,000	1,000,000
Non-Prosecution Agreement terms					3 years
Litigation expense sanctioned by court on subsidiary Imperial Premium Finance (IPF)		$ 850,000
Litigation remittance			$ 850,000
Percentage of outstanding shares to be obtained written consent			3.00%		3.00%
Pending Litigation
Commitments and Contingencies [Line Items]
Litigation-related fees			$ 2,300,000	$ 1,200,000	$ 4,200,000	$ 1,900,000
Number of policies | Contract							28
Pending Litigation | Minimum
Commitments and Contingencies [Line Items]
Compensatory damages sought in addition to an award of punitive damages	$ 30,000,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended	12 Months Ended
	Apr. 30, 2014	Jun. 30, 2015	Mar. 31, 2014	Jun. 30, 2015	Dec. 31, 2014		Jun. 30, 2014	Dec. 31, 2011	Feb. 11, 2011
Stockholders Equity [Line Items]
Rights offering shares		400.00%		400.00%
Common stock, par value		$ 5.75		$ 5.75
Number of common stock reserved for issuance		1,337,686		1,337,686
Common stock issued for rights offering, net of costs		6,688,433
Options Outstanding		794,617		794,617	807,949
Increase in additional paid-in-capital due to reclassification of embedded derivative					$ 14,100
Expected issuance of warrants for shares	2,000,000
Estimated Fair Value Of Warrants		$ 5,400		$ 5,400
Common stock warrants term				5 years
Exercise price of warrants		$ 10.75		$ 10.75					$ 14.51
Additional paid-in-capital		$ 305,342		$ 305,342	$ 266,705	[1]
Restricted Stock
Stockholders Equity [Line Items]
Stock granted				41,259
Performance Shares
Stockholders Equity [Line Items]
Stock granted				0
Minimum
Stockholders Equity [Line Items]
Average daily trading closing price		$ 8.50		$ 8.50
Average daily trading closing price, period				45 days
Common Stock
Stockholders Equity [Line Items]
Common stock issued for rights offering, net of costs				6,688,433
Accounting Standards Update 2013-11
Stockholders Equity [Line Items]
Additional paid-in-capital			$ 6,300				$ 6,300
Derivative Actions | Common Stock
Stockholders Equity [Line Items]
Common stock issued for legal settlement			125,628
Omnibus Plan
Stockholders Equity [Line Items]
Shares of common stock reserved for future grant		2,700,000		2,700,000				2,700,000
Options Outstanding		794,617		794,617
Securities remaining for future issuance		1,788,512		1,788,512
Omnibus Plan | Restricted Stock
Stockholders Equity [Line Items]
Stock granted		41,259		103,112
Stock vesting period		1 year
Omnibus Plan | Unrestricted Stock
Stockholders Equity [Line Items]
Stock granted				41,259
Omnibus Plan | Performance Shares
Stockholders Equity [Line Items]
Stock granted		323,500		323,500	323,500
Stock granted, subject to shareholders' approval of an amendment and restatement		150,000		150,000	150,000
Stock vesting period				1 year
Omnibus Plan | Minimum | Performance Shares
Stockholders Equity [Line Items]
Actual shares to be issued		0.00%		0.00%
Omnibus Plan | Maximum | Performance Shares
Stockholders Equity [Line Items]
Actual shares to be issued		150.00%		150.00%
[1]	Derived from audited consolidated financial statements.

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	[1]
Income Taxes [Line Items]
Annual effective tax rate				41.20%	39.40%
Deferred tax liability	$ 6,279			$ 6,279		$ 8,728
(Benefit) provision for income taxes	(322)	$ (4,193)		(2,260)	$ (217)
Additional paid-in-capital	$ 305,342			$ 305,342		$ 266,705
Accounting Standards Update 2013-11
Income Taxes [Line Items]
Unrecognized tax benefits			$ 6,300
Deferred tax liability			6,300
(Benefit) provision for income taxes			3,700
Valuation allowance (decrease) increase			2,600
Additional paid-in-capital		$ 6,300	$ 6,300		$ 6,300
[1]	Derived from audited consolidated financial statements.

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail)	Jul. 16, 2015USD ($)Contract	May. 16, 2014	Apr. 29, 2013USD ($)	Jun. 30, 2015USD ($)Contract	Jun. 30, 2015USD ($)Contract	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)Contract
Subsequent Event [Line Items]
Number of policies owned | Contract				633	633		607
Life insurance policies with aggregate death benefit				$ 2,982,416,000	$ 2,982,416,000		$ 2,931,066,000
Borrowings from Revolving Credit Facility					22,225,000	$ 23,931,000
Revolving Credit Facility
Subsequent Event [Line Items]
Revolving credit facility effective date			Apr. 29, 2013
Revolving Credit facility, current borrowing capacity			$ 300,000,000	170,700,000	170,700,000
Revolving Credit Facility | Maintenance Costs
Subsequent Event [Line Items]
Line of credit borrowing base percentage		100.00%
Revolving Credit Facility | Policies pledged as collateral as determined by the lenders
Subsequent Event [Line Items]
Line of credit borrowing base percentage		75.00%
Revolving Credit Facility | Policies pledged as collateral excluding certain specified life insurance policies
Subsequent Event [Line Items]
Line of credit borrowing base percentage		50.00%
Revolving Credit Facility | Securities Pledged as Collateral
Subsequent Event [Line Items]
Revolving Credit facility, current borrowing capacity				$ 300,000,000	$ 300,000,000
Number of policies owned | Contract				439	439
Life insurance policies with aggregate death benefit				$ 2,200,000,000	$ 2,200,000,000
Line of credit, expiration period					15 years
Revolving Credit Facility | Applicable Margin
Subsequent Event [Line Items]
Basis spread on variable rate		4.00%
Revolving Credit Facility | Floor Rate
Subsequent Event [Line Items]
Basis spread on variable rate		1.50%
Revolving Credit Facility | Federal Funds Rate
Subsequent Event [Line Items]
Basis spread on variable rate		0.75%
12.875% Senior Secured Notes Due 2017
Subsequent Event [Line Items]
Interest expense of notes				2,000,000	$ 3,800,000
Unused fees of debt				126,000	255,000
Amortizing debt discounts				147,000	264,000
Debt issuance cost				$ 149,000	$ 277,000
12.875% Senior Secured Notes Due 2017 | Securities Pledged as Collateral
Subsequent Event [Line Items]
Number of policies owned | Contract				194	194
Life insurance policies with aggregate death benefit				$ 779,600,000	$ 779,600,000
Subsequent Event | Revolving Credit Facility
Subsequent Event [Line Items]
Basis spread on variable rate	0.50%
Subsequent Event | Revolving Credit Facility | Applicable Margin
Subsequent Event [Line Items]
Basis spread on variable rate	4.50%
Subsequent Event | Revolving Credit Facility | Floor Rate
Subsequent Event [Line Items]
Basis spread on variable rate	1.00%
Subsequent Event | Revolving Credit Facility | Federal Funds Rate
Subsequent Event [Line Items]
Basis spread on variable rate	0.75%
Subsequent Event | 12.875% Senior Secured Notes Due 2017
Subsequent Event [Line Items]
Percentage of principal amount of debt redemption	106.00%
Line of credit, gain loss on early repayment of the plan	$ 8,800,000
Interest expense of notes	5,200,000
Unused fees of debt	171,000
Amortizing debt discounts	1,700,000
Debt issuance cost	$ 1,700,000
Subsequent Event | Red Falcon Trust | Revolving Credit Facility
Subsequent Event [Line Items]
Revolving credit facility effective date	Jul. 16, 2015
Revolving Credit facility, current borrowing capacity	$ 110,000,000
Line of credit, borrowing period	5 years
Line of credit, expiration period	7 years
Line of credit, yield maintenance provisions, percentage	5.00%
Line of credit, amortization percentage	8.00%
Borrowings from Revolving Credit Facility	$ 54,000,000
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | 10% of total fair value of our investments in life settlements | Minimum
Subsequent Event [Line Items]
Line of credit, loan to value ratio	50.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Life insurance issuer concentrations that exceed 10% of total death benefit
Subsequent Event [Line Items]
Line of credit, percentage of remaining outstanding balance	65.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Life insurance issuer concentrations that exceed 10% of total death benefit | Minimum
Subsequent Event [Line Items]
Line of credit, loan to value ratio	25.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Life insurance issuer concentrations that exceed 10% of total death benefit | Maximum
Subsequent Event [Line Items]
Line of credit, loan to value ratio	50.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Scenario 3
Subsequent Event [Line Items]
Line of credit, percentage of remaining outstanding balance	35.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Scenario 3 | Maximum
Subsequent Event [Line Items]
Line of credit, loan to value ratio	25.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Maintenance Costs
Subsequent Event [Line Items]
Line of credit borrowing base percentage	100.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Policies pledged as collateral as determined by the lenders
Subsequent Event [Line Items]
Line of credit borrowing base percentage	60.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Policies pledged as collateral excluding certain specified life insurance policies
Subsequent Event [Line Items]
Line of credit borrowing base percentage	45.00%
Subsequent Event | Red Falcon Trust | Revolving Credit Facility | Securities Pledged as Collateral
Subsequent Event [Line Items]
Number of policies owned | Contract	159
Life insurance policies with aggregate death benefit	$ 608,000,000

Uncategorized Items - ift-20150

Label	Element	Value
Life Settlement Contracts, Fair Value Method, Unrealized Gain (Loss)	us-gaap_LifeSettlementContractsFairValueMethodUnrealizedGainLoss	$ 28,002
Life Settlement Contracts, Fair Value Method, Unrealized Gain (Loss)	us-gaap_LifeSettlementContractsFairValueMethodUnrealizedGainLoss	9,000
Unrealized Gain (Loss) In Debt Instrument Fair Value	ift_UnrealizedGainLossInDebtInstrumentFairValue	(13,552)
Unrealized Gain (Loss) In Debt Instrument Fair Value	ift_UnrealizedGainLossInDebtInstrumentFairValue	$ (2,689)