GWG (GWGHQ) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 13, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	GWG Holdings, Inc.
Entity Central Index Key	1,522,690
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,933,041

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 38,198,189	$ 30,662,704
Restricted cash	7,923,190	4,296,053
Policy benefits receivable	2,500,000	1,750,000
Investment in life settlements, at fair value	301,498,527	282,883,010
Other assets	6,623,561	3,478,762
TOTAL ASSETS	356,743,467	323,070,529
LIABILITIES
Revolving credit facility	65,011,048	72,161,048
Series I Secured notes	24,347,531	27,616,578
L Bonds	223,118,514	182,782,884
Interest payable	11,593,220	11,128,519
Accounts payable and accrued expenses	2,071,879	1,718,009
Deferred taxes, net	6,525,336	5,273,555
TOTAL LIABILITIES	332,667,528	300,680,593
STOCKHOLDERS' EQUITY
CONVERTIBLE PREFERRED STOCK (par value $0.001; shares authorized 40,000,000; shares outstanding 2,746,412 and 2,738,966; liquidation preference of $20,598,000 and $20,542,000, respectively)	20,559,823	20,527,866
COMMON STOCK Common stock (par value $0.001: shares authorized 210,000,000; shares issued and outstanding is 5,933,041 and 5,870,193 on June 30, 2015 and December 31, 2014, respectively)	5,933	5,870
Additional paid-in capital	16,900,193	16,257,686
Accumulated deficit	(13,390,010)	(14,401,486)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	24,075,939	22,389,936
TOTAL LIABILITIES & EQUITY (DEFICIT)	$ 356,743,467	$ 323,070,529

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	40,000,000	40,000,000
Convertible preferred stock, shares outstanding	2,746,412	2,738,966
Convertible preferred stock, liquidation preference	$ 20,598,000	$ 20,542,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	5,933,041	5,870,193
Common stock, shares outstanding	5,933,041	5,870,193

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUE
Gain on life settlements, net	$ 8,473,886	$ 5,484,889	$ 25,257,295	$ 11,001,094
Interest and other income	90,380	6,380	139,676	13,747
TOTAL REVENUE	8,564,266	5,491,269	25,396,971	11,014,841
EXPENSES
Employee compensation and benefits	2,144,725	1,178,819	3,872,642	2,147,564
Legal and professional fees	642,931	419,337	1,166,184	826,339
Interest expense	7,322,347	6,608,043	14,498,881	12,934,591
Other expenses	1,881,321	1,188,479	3,415,060	1,865,784
TOTAL EXPENSES	11,991,324	9,394,678	22,952,767	17,774,278
INCOME (LOSS) BEFORE INCOME TAXES	(3,427,058)	(3,903,409)	2,444,204	(6,759,437)
INCOME TAX EXPENSE (BENEFIT)	(1,176,643)	(1,316,712)	1,432,728	(2,271,570)
NET INCOME (LOSS)	(2,250,415)	(2,586,697)	1,011,476	(4,487,867)
(Income) loss attributable to preferred shareholders	344,847	(101,271)	698,003	(226,984)
INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (1,905,568)	$ (2,687,968)	$ 1,709,479	$ (4,714,851)
NET INCOME (LOSS) PER SHARE
Basic	$ (0.32)	$ (0.59)	$ 0.29	$ (1.03)
Diluted	$ (0.32)	$ (0.59)	$ 0.21	$ (1.03)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,876,618	4,562,000	5,873,423	4,562,000
Diluted	5,876,618	4,562,000	7,987,923	4,562,000

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,250,415)	$ (2,586,697)	$ 1,011,476	$ (4,487,867)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Gain on life settlements	(14,028,327)	(10,852,425)	(12,134,482)	(22,211,338)
Amortization of deferred financing and issuance costs	507,026	1,354,007	(42,004)	1,707,664
Deferred income taxes	(930,470)	(1,316,712)	1,251,781	(2,271,570)
Convertible, redeemable preferred stock dividends payable	146,420	196,991	335,232	389,331
(Increase) decrease in operating assets:
Policy benefits receivable	17,140,000	(300,000)	(750,000)	(300,000)
Other assets	(225,376)	(697,073)	(356,549)	(948,919)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(1,333,241)	1,890,337	1,302,446	3,168,163
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(974,383)	(12,311,572)	(9,382,100)	(24,954,536)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life settlements	(7,777,541)	(2,608,232)	(10,224,018)	(10,879,435)
Proceeds from settlement of life settlements	132,388	68,500	3,742,983	68,500
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(7,645,153)	$ (2,539,732)	(6,481,035)	$ (10,810,935)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of revolving credit facility	(7,150,000)		(7,150,000)
Payments for redemption of Series I Secured notes	(2,344,355)	$ (670,621)	(3,617,544)	$ (1,538,924)
Proceeds from issuance of L Bonds	22,538,059	14,868,830	50,498,356	33,234,487
Payments for redemption and issuance of L Bonds	(6,134,935)	(4,393,523)	(13,013,057)	(9,322,411)
Proceeds from restricted cash	3,410,427	$ 43,330	(3,627,137)	$ 3,022,537
Issuance of common stock	582,000		582,000
Redemptions of convertible, redeemable preferred stock	(273,998)	$ (20,056)	(273,998)	$ (20,056)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	10,627,198	9,827,960	23,398,620	25,375,633
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,007,662	(5,023,344)	7,535,485	(10,389,838)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	36,190,527	28,083,299	30,662,704	33,449,793
END OF PERIOD	38,198,189	23,059,955	38,198,189	23,059,955
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	7,041,000	3,531,000	13,143,000	7,781,000
Series I Secured notes:
Non-cash conversion of accrued interest and commissions payable to principal	86,000	40,000	127,000	105,000
L Bonds:
Non-cash conversion of accrued interest and commission payable to principal	219,000	162,000	438,000	282,000
Convertible, redeemable preferred stock
Non-cash conversion of dividends payable	$ 150,000	193,000	$ 334,000	380,000
Non-cash accretion of convertible, redeemable preferred stock to redemption value		101,000		227,000
Investment in life settlements included in accounts payable	$ 61,000	$ 75,000	$ 61,000	$ 75,000

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity - USD ($)		Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2013		$ (5,492,015)		$ 4,562	$ 2,942,000	$ (8,438,577)
Begining balance, Shares at Dec. 31, 2013				4,562,000
Net income (loss)		(5,962,909)				$ (5,962,909)
Issuance of common stock		8,643,790		$ 800	$ 8,642,990
Issuance of common stock, Share				800,000
Series A Preferred Stock conversion to common stock		4,957,099		$ 508	$ 4,956,591
Series A Preferred Stock conversion to common stock, Shares				508,193
Issuance of preferred stock		201,261	$ 201,261
Issuance of preferred stock, Shares			28,752
Issuance of stock options		122,412			$ 122,412
Reclassification of preferred stock from temporary equity to permanent equity due to initial public offering (*)	[1]	20,326,605	$ 20,326,605
Reclassification of preferred stock from temporary equity to permanent equity due to initial public offering (*), Shares	[1]		2,710,214
Extension of warrants		47,120			$ 47,120
Accretion of preferred stock to liquidation value		(453,427)			(453,427)
Ending balance at Dec. 31, 2014		22,389,936	$ 20,527,866	$ 5,870	$ 16,257,686	$ (14,401,486)
Ending balance, Shares at Dec. 31, 2014			2,738,966	5,870,193
Net income (loss)		1,011,476				$ 1,011,476
Issuance of common stock		$ 582,000		$ 60	$ 581,940
Issuance of common stock, Share				60,000
Series A Preferred Stock conversion to common stock			$ (28,478)	$ 3	$ 28,475
Series A Preferred Stock conversion to common stock, Shares			(3,797)	2,848
Issuance of preferred stock		$ 60,435	$ 60,435
Issuance of preferred stock, Shares			11,243
Issuance of stock options		32,092			$ 32,092
Ending balance at Jun. 30, 2015		$ 24,075,939	$ 20,559,823	$ 5,933	$ 16,900,193	$ (13,390,010)
Ending balance, Shares at Jun. 30, 2015			2,746,412	5,933,041
[1]	Subject to the terms of the Certificate of Designation for Series A Convertible Preferred Stock, the listing of our common stock on The Nasdaq Capital Market on September 25, 2014 resulted in the termination of a redemption right in favor of the holders of such preferred stock. Preferred stock that is not redeemable by a shareholder is treated as stockholders' equity as shown in the table above.

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Nature of Business and Summary of Significant Accounting Policies [Abstract]
Nature of business and summary of significant accounting policies	(1) Nature of business and summary of significant accounting policies Nature of business Use of estimates Cash and cash equivalents Life settlements Investments in Insurance Contracts The Company recognizes realized gains (revenue) from life settlement contracts upon one of the two following events: 1) Receipt of death notice or verified obituary of insured 2) Sale of policy and filing of change of ownership forms and receipt of payment The Company recognizes the difference between the death benefits and carrying values of the policy when an insured event has occurred and the Company determines that settlement and ultimate collection of the death benefits is realizable and reasonably assured. Revenue from a transaction must meet both criteria in order to be recognized. In an event of a sale of a policy, the Company recognizes gain or loss as the difference between the sale price and the carrying value of the policy on the date of the receipt of payment on such sale. Deposits and initial direct costs advanced on unsettled policy acquisitions are recorded as other assets until policy ownership has been transferred to the Company. Such deposits and direct cost advances were $222,000 and $27,000 at June 30, 2015 and December 31, 2014, respectively. Deferred financing and issuance costs Earnings (loss) per share Subsequent events Recently adopted pronouncements - On April 7, 2015 the FASB issued Accounting Standards Update (ASU) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. For public business entities, the guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For entities other than public business entities, the guidance is effective for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). The impact of the new ASU on the Company’s balance sheet would be a reduction of approximately $3,629,000 to assets and the corresponding reduction to liabilities. There would be no impact on the Company’s statements of operations.

Restrictions on Cash

Restrictions on Cash	6 Months Ended
	Jun. 30, 2015
Restrictions on Cash [Abstract]
Restrictions on cash	(2) Restrictions on cash The Company is required by its lenders to maintain collection and escrow accounts. These accounts are used to fund the acquisition, pay annual premiums of insurance policies, pay interest and other charges under the revolving credit facility, and collect policy benefits. DZ Bank AG, as agent for Autobahn Funding Company, LLC, the lender for the revolving credit facility as described in note 6, authorizes the disbursements from these accounts. At June 30, 2015 and December 31, 2014 there was a balance of $7,923,000, and $4,296,000, respectively, maintained in these restricted cash accounts.

Investment in Life Insurance Po

Investment in Life Insurance Policies	6 Months Ended
	Jun. 30, 2015
Investment in Life Insurance Policies [Abstract]
Investment in life insurance policies	(3) Investment in life insurance policies The life insurance policies (Level 3 fair value measurements) are valued based on unobservable inputs that are significant to the overall fair value measurement. Changes in the fair value of these instruments are recorded in gain or loss on life insurance policies in the consolidated statements of operations (net of the cash premiums paid on the policies). The fair value is determined on a discounted cash flow basis that incorporates life expectancy assumptions. Life expectancy reports have been obtained from widely accepted life expectancy providers. The discount rate incorporates current information about market interest rates, the credit exposure to the insurance company that issued the life insurance policy and our estimate of the risk premium an investor in the policy would require. As a result of management’s analysis, discount rates of 11.19% and 11.38% were applied to the portfolio as of June 30, 2015 and December 31, 2014. A summary of the Company’s life insurance policies accounted for under the fair value method and their estimated maturity dates, based on remaining life expectancy is as follows: As of June 30, 2015 As of December 31, 2014 Years Ending December 31, Number of Contracts Estimated Fair Value Face Value Number of Contracts Estimated Fair Value Face Value 2015 - $ - $ - 3 $ 5,063,000 $ 6,000,000 2016 5 7,198,000 8,500,000 7 8,144,000 11,550,000 2017 16 17,063,000 23,857,000 17 21,916,000 35,542,000 2018 30 42,478,000 72,171,000 30 41,994,000 76,206,000 2019 48 53,052,000 109,810,000 45 47,303,000 106,973,000 2020 43 46,597,000 101,574,000 41 43,429,000 102,614,000 2021 42 34,486,000 96,956,000 36 29,789,000 90,921,000 Thereafter 130 100,625,000 393,406,000 112 85,245,000 349,293,000 Totals 314 301,499,000 806,274,000 291 $ 282,883,000 $ 779,099,000 The Company recognized policy benefits of $750,000 and $300,000 during the three-month periods ended June 30, 2015 and 2014, respectively, related to policies with a carrying value of $132,000 and $68,000, respectively. The Company recorded realized gains of $618,000 and $232,000 on such policies. The Company recognized policy benefits of $29,375,000 and $300,000 during the six-month periods ended June 30, 2015 and 2014, respectively, related to policies with carrying value of $3,743,000 and $68,000, respectively. The company recorded realized gains of $25,632,000 and $232,000, respectively on such policies. Reconciliation of gain on life settlements: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2012 Change in fair value $ 14,028,000 $ 10,852,000 $ 12,134,000 $ 22,211,000 Premiums and other annual fees (6,172,000 ) (5,599,000 ) (12,509,000 ) (11,442,000 ) Policy maturities 618,000 232,000 25,632,000 232,000 Gain on life settlements, net $ 8,474,000 $ 5,485,000 $ 25,257,000 $ 11,001,000 The estimated expected premium payments to maintain the above life insurance policies in force through 2020, assuming no mortalities, are as follows: Years Ending December 31, Premiums Servicing Premiums and Servicing Fees Six months ending December 31 ,2015 $ 13,292,000 $ 377,000 $ 13,669,000 2016 27,985,000 377,000 28,362,000 2017 31,333,000 377,000 31,710,000 2018 34,191,000 377,000 34,568,000 2019 38,001,000 377,000 38,378,000 2020 42,158,000 377,000 42,535,000 $ 186,960,000 $ 2,262,000 $ 189,222,000 Management anticipates funding the estimated premium payments as noted above with proceeds from the DZ Bank revolving credit facility and through additional debt and equity financing as well as from cash proceeds from maturities of life insurance policies. The proceeds of these capital sources are also intended to be used for the purchase, financing, and maintenance of additional life insurance policies.

Fair Value Definition and Hiera

Fair Value Definition and Hierarchy	6 Months Ended
	Jun. 30, 2015
Fair Value Definition and Hierarchy [Abstract]
Fair value definition and hierarchy	(4) Fair value definition and hierarchy ASC 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of investment, the characteristics specific to the investment and the state of the marketplace including the existence and transparency of transactions between market participants. Assets and liabilities with readily available active quoted prices or for which fair value can be measured from actively quoted prices in an orderly market generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. ASC 820 establishes a three-level valuation hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. ● Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. ● Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary by types of assets and liabilities and is affected by a wide variety of factors, including, for example, whether instrument is established in the marketplace, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for assets and liabilities categorized in Level 3. Level 3 Valuation Process The estimated fair value of the Company’s life settlements are determined on a quarterly basis by the Company’s portfolio management committee, taking into consideration changes in discount rate assumptions, estimated premium payments and life expectancy assumptions, as well as any changes in economic and other relevant conditions. These inputs are then used to estimate the discounted cash flows using the MAPS probabilistic portfolio pricing model, which estimates the cash flows using various different probabilities and scenarios. The valuation process includes a review by senior management as of each valuation date. Management also engages a third party expert to independently test the accuracy of the valuations using the inputs provided by management. Life insurance policies represent financial instruments recorded at fair value on a recurring basis. The following table reconciles the beginning and ending fair value of the Company’s Level 3 investments in life insurance policies for the three and six-month periods ending June 30, as follows: Three month ended June 30, Six months ended June 30, 2015 2014 2015 2014 Beginning balance $ 278,395,000 $ 254,504,000 $ 282,883,000 $ 234,673,000 Purchases 9,208,000 2,608,000 10,225,000 11,080,000 Maturities (cash in excess of carrying value) (132,000 ) (68,000 ) (3,743,000 ) (68,000 ) Net change in fair value 14,028,000 10,852,000 12,134,000 22,211,000 Ending balance (June 30) $ 301,499,000 $ 267,896,000 $ 301,499,000 $ 267,896,000 The fair value of a portfolio of life insurance policies is based on information available to the Company at the reporting date. Fair value is based upon a discounted cash flow model that incorporates life expectancy estimate assumptions. Life expectancy estimates are obtained from independent, third-party, widely accepted life expectancy estimate providers at policy acquisition. The life expectancy values of each insured, as determined at policy acquisition, are rolled down monthly for the passage of time by the MAPS actuarial software the Company uses for ongoing valuation of its portfolio of life insurance policies. The discount rate incorporates current information about discount rates applied by other reporting companies owning portfolios of life insurance policies, discount rates observed in the life insurance secondary market, market interest rates, the credit exposure to the insurance company that issued the life insurance policy and management’s estimate of the risk premium a purchaser would require to receive the future cash flows derived from our portfolio of life insurance policies. On September 15, 2014, 21st Services announced changes to its mortality tables primarily for insureds age 90 and older, as well as updated adjustment factors designed to better underwrite seniors with multiple impairments. These changes represent small portions of 21st Services’ historical underwritings. We expect medical-actuarial underwriting firms to continue improving and refining their underwriting methodology. The fair value of life insurance policies is estimated using present value calculations of estimated cash flows based on the data specific to each individual life insurance policy. Estimated future policy premium payments are calculated based on the terms of the policy and the premium payment history. The following summarizes the unobservable inputs utilized in estimating the fair value of the portfolio of life insurance policies: As of June 30, 2015 As of December 31, 2014 Weighted average age of insured 82.9 82.8 Weighted average life expectancy, months* 78.7 78.4 Average face amount per policy $ 2,568,000 $ 2,677,000 Discount rate 11.19 % 11.43 % * Standard life expectancy as adjusted for insured’s specific circumstances. These assumptions are, by their nature, inherently uncertain and the effect of changes in estimates may be significant. The techniques used in estimating the present value of estimated cash flows are derived from valuation techniques generally used in the industry that include inputs for the asset that are not based on observable market data. The extent to which the fair value could reasonably vary in the near term has been quantified by evaluating the effect of changes in significant underlying assumptions used to estimate the fair value. If the life expectancy estimates were increased or decreased by four and eight months on each outstanding policy and the discount factors were increased or decreased by 1% and 2%, while all other variables are held constant, the fair value of the investment in life insurance policies would increase or (decrease) by the amounts summarized below: Change in life expectancy estimates minus 8 months minus months plus 4 months plus 8 months June 30, 2015 $ 41,402,000 $ 20,590,000 $ (20,105,000 ) $ (39,752,000 ) December 31, 2014 $ 40,634,000 $ 20,130,000 $ (19,664,000 ) $ (38,864,000 ) Change in discount rate minus 2% minus 1% plus 1% plus 2% June 30, 2015 $ 29,494,000 $ 14,144,000 $ (13,061,000 ) $ (25,148,000 ) December 31, 2014 $ 28,179,000 $ 13,522,000 $ (12,502,000 ) $ (24,085,000 ) Other Fair Value Considerations Carrying value of receivables, prepaid expenses, accounts payable and accrued expenses approximate fair value due to their short-term maturities and low credit risk. The estimated fair value of the Company’s Series I Secured notes and L Bonds is approximately $253,263,000 based on a weighted average market interest rate of 7.08% based on an income approach, the combined face value of these notes is $251,038,000 as of June 30, 2015. The carrying value of the revolving credit facility reflects interest charged at the commercial paper rate plus an applicable margin. The margin represents our credit risk, and the strength of the portfolio of life insurance policies collateralizing the debt. The overall rate reflects market, and the carrying value of the revolver approximates fair value. All of the financial instruments are Level 3 fair value measurements. The Company has issued warrants to purchase common stock in connection with the issuance of its convertible, redeemable preferred stock. Warrants were determined by the Company as permanent equity. The fair value measurements associated with the warrants, measured at issuance represent level 3 instruments. As of June 30, 2015: Month issued Warrants issued Fair value per share Risk free Volatility Term December 2011 68,937 $ 0.22 0.42 % 25.25 % 5 years March 2012 38,130 $ 0.52 0.38 % 36.20 % 5 years June 2012 161,840 $ 1.16 0.41 % 47.36 % 5 years July 2012 144,547 $ 1.16 0.41 % 47.36 % 5 years September 2012 2,500 $ 0.72 0.31 % 40.49 % 5 years September 2014 16,000 $ 1.26 1.85 % 17.03 % 5 years 431,954 Volatility is based upon the weekly percentage change in the stock price of selected comparable insurance companies. The percentage change is calculated on the average price of those selected stocks at the weekly close of business for the year preceding the balance sheet date. We compare annual volatility based on this weekly information.

Credit Facilities

Credit Facilities	6 Months Ended
	Jun. 30, 2015
Credit Facilities / Series I Secured Notes / L Bonds (formerly Renewable Secured Debentures) [Abstract]
Credit facilities	(5) Credit facilities Revolving credit facility – Autobahn Funding Company LLC On July 15, 2008, DLP II and United Lending entered into a revolving credit facility pursuant to a Credit and Security Agreement (Agreement) with Autobahn Funding Company LLC (Autobahn), providing the Company with a maximum borrowing amount of $100,000,000. Autobahn is a commercial paper conduit that issues commercial paper to investors in order to provide funding to DLP II. DZ Bank AG Deutsche Zentral-Genossenschaftsbank (DZ Bank) acts as the agent for Autobahn. The original Agreement was to expire on July 15, 2013. On January 29, 2013, GWG Holdings, together with GWG Life and DLP II, entered into an Amended and Restated Credit and Security Agreement with Autobahn, extending the facility expiration date to December 31, 2014. On May 29, 2014, GWG Holdings, together with GWG Life and DLP II, entered into an Amendment No. 1 to Amended and Restated Credit and Security Agreement with Autobahn and DZ Bank (as committed lender and Agent). The amendment was entered into for the purpose of extending the maturity date for borrowings under the Agreement to December 31, 2016. Effective May 11, 2015, GWG Holdings, together with certain of its subsidiaries, entered into a Second Amended and Restated Credit and Security Agreement with Autobahn Funding Company LLC, as the conduit lender, and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, as the committed lender and as the agent on behalf of secured parties under such agreement. The Second Amended and Restated Credit and Security Agreement extends the maturity date of borrowings made by the Company’s subsidiaries, GWG DLP Funding II, LLC and GWG DLP Funding III, LLC, to June 30, 2018. Advances under the credit facility made after May 11, 2015 will bear interest at the commercial paper rate of the lender at the time of the advance, or at the lender’s cost of borrowing plus 4.25 percent, which is 1.75 percent less than under the previous Credit and Security Agreement executed on January 25, 2013. In addition to the extended term and decreased interest rate and borrowing cost, the Second Amended and Restated Credit and Security Agreement also removes the requirement that the Company maintain a reserve for certain projected expenditures (including anticipated premium payments required to service its life insurance portfolio), thereby allowing for the Company’s full use of the credit facility up to its limit of $105,000,000. In connection with the Second Amended and Restated Credit and Security Agreement, GWG Holdings and its subsidiaries entered into certain other agreements and amendments and restatements of earlier agreements entered into in connection with the original and renewal Credit and Security Agreements. Included among these other agreements was an Amended and Restated Performance Guaranty affirming the performance guaranty that GWG Holdings earlier provided in connection with the original and first amended and restated Credit and Security Agreements to DZ Bank AG Deutsche Zentral-Genossenschaftsbank, as agent. The amount outstanding under this facility was $65,011,000 and $72,161,000 at June 30, 2015 and December 31, 2014, respectively. The Agreement requires DLP II to pay, on a monthly basis, interest at the commercial paper rate plus an applicable margin, as defined in the Agreement. The effective rate was 5.41% at June 30, 2015 and 6.24% at December 31, 2014. The Agreement also requires payment of an unused line fee on the unfunded amount under the revolving credit facility. The weighted-average effective interest rate (excluding the unused line fee) was 5.37% and 6.20% for the three months ended June 30, 2015 and 2014, respectively, and 6.00% and 6.21% for the six months ended June 30, 2015 and 2014, respectively. The note is secured by substantially all of DLP II’s and DLP III’s assets, which consist primarily of life insurance policies. The Agreement has certain financial and nonfinancial covenants. The Company was in compliance with these covenants at June 30, 2015 and December 31, 2014. The Agreement generally prohibits the Company from: ● changing its corporate name, offices, and jurisdiction of incorporation ● changing any deposit accounts or payment instructions to insurers; ● changing any operating policies and practices such that it would be reasonably likely to adversely affect the collectability of any asset in any material respect; ● merging or consolidating with, or selling all or substantially all of its assets to, any third party; ● selling any collateral or creating or permitting to exist any adverse claim upon any collateral; ● engaging in any other business or activity than that contemplated by the Agreement; ● incurring or guaranteeing any debt for borrowed money; ● amending the Company’s certificate of incorporation or bylaws, making any loans or advances to, investments in, or paying any dividends to, any person unless both before and after any such loan, advance, investment or dividend there exists no actual event of default, potential event of default or termination event; ● removing an independent director on the board of directors except for cause or with the consent of the lender; or ● making payment on or issuing any subsidiary secured notes or debentures, or amending any agreements respecting such notes or debentures, if an event of default, potential event of default or termination event exists or would arise from any such action. In addition, the Company has agreed to maintain (i) a positive consolidated net income on a non-GAAP basis (as defined and calculated under the Agreement) for each complete fiscal year and (ii) a tangible net worth on a non-GAAP basis (again, as defined and calculated under the Agreement) of not less than $45 million, and (iii) maintain cash and eligible investments at $15 million or above. Consolidated tangible net worth and net income as of and for the four quarters ended June 30, 2015, as calculated on non-GAAP basis under the agreement, was $101,427,000 and $44,503,000, respectively. Advances under the Agreement are subject to a borrowing base formula, which limits the availability of advances on the borrowing base calculation based on attributes of policies pledged to the facility. Over-concentration of policies by insurance carrier, over-concentration of policies by insurance carriers with ratings below a AA- rating, and the premiums and facility fees reserve are the three primary factors with the potential of limiting availability of funds on the facility. Total funds available for additional borrowings under the borrowing base formula criteria at June 30, 2015 and December 31, 2014, were $33,409,000 and $20,585,000 respectively. On July 15, 2008, Holdings delivered a performance guaranty in favor of Autobahn pursuant to which it guaranteed the obligations of GWG Life, in its capacity as the seller and master servicer, under the Credit and Security Agreement and related documents. On January 29, 2014 and in connection with the Amended and Restated Credit and Security Agreement, Holdings delivered a reaffirmation of its performance guaranty. The obligations of Holdings under the performance guaranty and subsequent reaffirmation do not extend to the principal and interest owed by DLP II and DLP III as the borrower under the credit facility.

Series I Secured Notes

Series I Secured Notes	6 Months Ended
	Jun. 30, 2015
Credit Facilities / Series I Secured Notes / L Bonds (formerly Renewable Secured Debentures) [Abstract]
Series I Secured notes payable	(6) Series I Secured notes Series I Secured Notes are secured by assets of GWG Life and are subordinate to our revolving credit facility (see note 5). On June 14, 2011, the Company closed the offering to additional investors; however, existing investors may elect to continue advancing amounts outstanding upon maturity subject to the Company’s option to repay such notes. Series I Secured Notes have maturity dates ranging from six months to seven years with fixed interest rates varying from 5.65% to 9.55% depending on the term of the note. Interest is payable monthly, quarterly, annually or at maturity depending on the terms of the note. At June 30, 2015 and December 31, 2014, the weighted-average interest rate of Series I Secured Notes was 8.49% and 8.37%, respectively. The notes are secured by assets of GWG Life. The principal amount outstanding under these Series I Secured Notes was $24,728,000 and $28,047,000 at June 30, 2015 and December 31, 2014, respectively. The difference between the amount outstanding on the Series I Secured Notes and the carrying amount on the consolidated balance sheet is due to netting of unamortized deferred issuance costs. Overall, interest expense includes amortization of deferred financing and issuance costs of $81,000 and $211,000 for the three and six months ended June 30, 2015, respectively, and $134,000 and $301,000 for the three and six months ended June 30, 2014, respectively. Future expected amortization of deferred financing costs is $390,000 over the next six years. The use of proceeds from the issuances of L Bonds is limited to the following: (1) payment of commissions on sales of L Bonds, (2) payment of offering expenses, (3) purchase of life insurance policies, (4) payment of premiums on life insurance policies, (5) payment of principal and interest on L Bonds, (6) payment of portfolio operations expenses, and (7) general working capital. Future contractual maturities of Series I Secured notes at June 30, 2015 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31, 2015 $ 5,085,000 $ 20,000 2016 10,964,000 144,000 2017 6,164,000 149,000 2018 1,127,000 36,000 2019 347,000 7,000 Thereafter 1,041,000 34,000 $ 24,728,000 $ 390,000

L Bonds (Formerly Renewable Sec

L Bonds (Formerly Renewable Secured Debentures)	6 Months Ended
	Jun. 30, 2015
Credit Facilities / Series I Secured Notes / L Bonds (formerly Renewable Secured Debentures) [Abstract]
L Bonds (formerly Renewable Secured Debentures)	(7) L Bonds (formerly Renewable Secured Debentures) The Company registered with the SEC, effective January of 2012, the offer and sale of $250,000,000 of Renewable Secured Debentures (subsequently renamed “L Bonds”). The debentures are secured by assets of GWG Holdings and GWG Life and are subordinate to our revolving credit facility (see note 5). L Bonds have maturity dates ranging from six months to seven years with fixed interest rates varying from 4.25% to 9.50% depending on the term of the note. Interest is payable monthly, annually or at maturity depending on the terms of the debenture. Effective January 9, 2015, The Company launched a $1 billion follow-on to our publicly registered L Bond offering. The Company is offering L Bonds on a continuous basis and there is no minimum amount of L Bonds that must be sold before The Company can use proceeds from the sale of L Bonds. The Company plans to use the net proceeds from the offering of the L Bonds primarily to purchase and finance additional life insurance assets, and to service and retire other outstanding debt obligations. Emerson Equity LLC is serving as the managing broker-dealer for the offering, which is being sold through a network of participating dealers and licensed financial advisors and representatives in minimum increments of $25,000. At June 30, 2015 and December 31, 2014, the weighted-average interest rate of L Bonds was 7.27% and 7.45%, respectively. The amount outstanding under these L Bonds was $226,310,000 and $186,377,000 at June 30, 2015 and December 31, 2014, respectively. The difference between the amount outstanding on the L Bonds and the carrying amount on the consolidated balance sheets is due to netting of unamortized deferred issuance costs and cash receipts for new issuances in process. Amortization of deferred issuance costs was $1,366,000 and $2,340,000 for the three and six months ended June 30, 2015, respectively, and $908,000 and $1,755,000 for the three and six months ended June 30, 2014, respectively. Future expected amortization of deferred financing costs as of June 30, 2015 is $6,312,000 in total over the next seven years. The use of proceeds from the issuances of L Bonds is limited to the following: (1) payment of commissions on sales of L Bonds, (2) payment of offering expenses, (3) purchase of life insurance policies, (4) payment of premiums on life insurance policies, (5) payment of principal and interest on L Bonds, (6) payment of portfolio operations expenses, and (7) general working capital. Future contractual maturities of L Bonds and future amortization of their deferred financing costs at June 30, 2015 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31 ,2015 $ 48,082,000 $ 243,000 2016 67,120,000 1,229,000 2017 43,051,000 1,520,000 2018 31,012,000 1,450,000 2019 14,342,000 612,000 Thereafter 22,703,000 1,258,000 $ 226,310,000 $ 6,312,000 The Company entered into an Indenture effective October 19, 2011 with Holdings as obligor, GWG Life as guarantor, and Bank of Utah as trustee for the benefit of the debenture holders. The Indenture has certain financial and nonfinancial covenants. The Company was in compliance with these covenants at June 30, 2015 and December 31, 2014.

Convertible, Redeemable Preferr

Convertible, Redeemable Preferred Stock	6 Months Ended
	Jun. 30, 2015
Convertible Redeemable Preferred Stock [Abstract]
Convertible, redeemable preferred stock	(8) Convertible, redeemable preferred stock The Company offered 3,333,333 shares of convertible redeemable preferred stock (Series A Preferred Stock) for sale to accredited investors in a private placement on July 31, 2011. The offering of Series A Preferred Stock concluded on September 2, 2012 and resulted in 3,278,000 shares being issued for gross consideration of $24,582,000. As of June 30, 2015, 324,000 shares have been issued as a result of the payment of $2,271,000 in dividends in the form of shares of Series A Preferred Stock and 678,000 shares have been converted to 508,000 shares of the Company’s common stock. The Series A Preferred Stock was sold at an offering price of $7.50 per share. Series A Preferred Stock has a preferred yield of 10% per annum, and each share has the right to convert into 0.75 shares of the Company’s common stock. Series A preferred shareholders also received three-year warrants to purchase, at an exercise price per share of $12.50, one share of common stock for every 40 shares of Series A Preferred Stock purchased. The warrants are exercisable immediately. Upon their original issuance, these warrants had a three-year exercise period. Effective August 1, 2014, the Board of Directors authorized the extension of the warrant exercise period for an additional two years. In the Certificate of Designations for the Series A Preferred Stock dated July 31, 2011, the Company agreed to permit preferred shareholders to sell their shares back to the Company for the stated value of $7.50 per share, plus accrued dividends, according to the following schedule: ● Up to 33% of the holder’s unredeemed shares one year after issuance: ● Up to 66% of the holder’s unredeemed shares two years after issuance; and ● Up to 100% of the holder’s unredeemed shares three years after issuance. The Company’s obligation to redeem its Series A Preferred Stock terminated upon the Company completing a registration of its common stock with the SEC which occurred on September 24, 2014 (See Note 10). As such, the convertible redeemable preferred stock was reclassified from temporary equity to permanent equity. The Company may redeem the Series A preferred shares at a price equal to 110% of their liquidation preference ($7.50 per share) at any time. As of June 30, 2015, the Company had redeemed an aggregate of 182,000 shares of Series A Preferred Stock. The Series A Preferred Stock shares (i) were convertible, at the election of the Company, into common stock of the Company in the event of either a registered offering of the Company’s common stock with the SEC aggregating gross proceeds of at least $5.0 million and at a price equal to or greater than $11.00 per share; (ii) remain convertible at the option of each holder; and (iii) are required to be converted upon the consent of shareholders holding at least a majority of the then-outstanding Series A Preferred Stock. In connection with the Company’s initial public offering, the Company elected to cause the conversion of 678,000 shares of preferred stock into 508,000 shares of common stock. As of June 30, 2015, the Company had 2,746,000 shares of Series A Preferred Stock outstanding with gross consideration of $20,560,000 (including cash proceeds, conversion of Series I Secured Notes and accrued interest on Series I, and conversion of preferred dividends payable). The Company incurred Series A Preferred Stock issuance costs of $2,838,000, all of which was included as a component of additional paid in capital as of December 31, 2014. The Company determined that the grant date fair value of the outstanding warrants attached to the Series A Preferred Stock was $428,000 for warrants outstanding as of June 30, 2015. The Company may redeem outstanding warrants prior to their expiration, at a price of $0.01 per share upon 30 days written notice to the investors at any time after (i) the Company has completed a registration of its common stock with the SEC and (ii) the volume of weighted-average sale price per share of common stock equals or exceeds $14.00 per share for ten consecutive trading days ending on the third business day prior to proper notice of such redemption. Total warrants outstanding as of both June 30, 2015 and December 31, 2014, were 431,954 with a weighted-average remaining life of 1.93 and 2.43 years, respectively. As of June 30, 2015, none of these warrants have been exercised. Dividends on the Series A preferred stock may be paid in either cash or additional shares of Series A preferred stock at the election of the holder and approval of the Company. The dividends are reported as an expense and included in the caption interest expense in the consolidated statements of operations. The Company declared and accrued dividends of $495,000 and $638,000 during the three months ended June 30, 2015 and 2014, respectively, and $1,032,000 and $1,276,000 during the six months ended June 30, 2015 and 2014, respectively, pursuant to a board resolution declaring the dividend. 21,000 and 28,000 shares of Series A preferred stock were issued in lieu of cash dividends in the three month periods ended June 30, 2015 and 2014, and 48,000 and 54,000 shares of Series A preferred stock were issued in lieu of cash dividends in the six month periods ended June 30, 2015 and 2014, respectively. The shares issued in lieu of cash dividends were issued at $7.00 per share. As of June 30, 2015, Holdings has $514,000 of accrued preferred dividends which were paid or converted to shares of Series A preferred stock on July 15, 2015.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Income taxes	(9) Income taxes The Company has a $181,000 and $0 of current income tax liability as of June 30, 2015 and December 31, 2014. The components of current and deferred income tax expense (benefit) for the three and six months ended June 30, 2015 and income tax benefit for the three month ended June 30, 2014, consisted of the following: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Income tax provision (benefit): Current: Federal $ (182,000 ) $ - $ 141,000 $ - State $ (64,000 ) $ - $ 40,000 $ - Total current tax expense (246,000 ) - 181,000 - Deferred: Federal $ (670,000 ) $ (1,106,000 ) $ 984,000 $ (1,909,000 ) State $ (261,000 ) $ (211,000 ) $ 268,000 $ (363,000 ) Total deferred tax expense (benefit) (931,000 ) (1,317,000 ) 1,252,000 (2,272,000 ) Total income tax expense (benefit) (1,177,000 ) (1,317,000 ) 1,433,000 (2,272,000 ) The primary differences between the Company’s June 30, 2015 effective tax rate and the statutory federal rate are the accrual of nondeductible preferred stock dividend expense of $514,000 state taxes, and other non-deductible expenses. The most significant temporary differences between GAAP net income and taxable net income are the treatment of interest costs with respect to the acquisition of the life insurance policies and revenue recognition with respect to the mark-to-market of life insurance portfolio.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2015
Common Stock [Abstract]
Common Stock	(10) Common Stock On September 24, 2014, GWG consummated an initial public offering of its common stock which resulted in the sale of 800,000 shares of common stock at $12.50 per share. The sale resulted in net proceeds of approximately $8.6 million after the deduction of underwriting commissions, discounts and expense reimbursements. In connection with this offering, the Company listed its common stock on The NASDAQ Capital Market under the ticker symbol “GWGH” effective September 25, 2014. The Company used the net proceeds from the offering to promote and advertise the opportunities for consumers owning life insurance and investors to profit from participating in the secondary market for life insurance policies, purchase additional life insurance policies in the secondary market, pay premiums on the Company’s life insurance policy assets, fund its portfolio operations, and for working capital purposes. Stock split On June 23, 2015 GWG issued 60,000 shares of restricted common stock at $9.70 per share determined by closing market price, to a vendor as a form of payment for the services the vendor will provide to the Company in the next three years. The cost of the issued shares will be amortized over the next 12 months.

Stock Incentive Plan

Stock Incentive Plan	6 Months Ended
	Jun. 30, 2015
Stock Incentive Plan [Abstract]
Stock Incentive Plan	(11) Stock Incentive Plan The Company adopted the GWG Holdings, Inc. 2013 Stock Incentive Plan on March 27, 2013. On April 23, 2015 the Board of Directors approved amendments to the plan which were subsequently approved by a majority of the Company’s stockholders at the annual meeting of stockholders on June 1, 2015. The plan is administered by Compensation Committee of the Board of Directors of the Company. The Company’s Chief Executive Officer may, on a discretionary basis and without committee review or approval, grant incentives to new employees of the Company who are not officers of the Company. Incentives under the plan may be granted in one or a combination of the following forms: (a) incentive stock options and non-statutory stock options; (b) stock appreciation rights; (c) stock awards; (d) restricted stock; (e) restricted stock units; and (f) performance shares. Eligible participants include officers and employees of the company, members of the Board of Directors, and consultants or other independent contractors. 2,000,000 shares are issuable under the plan. No person shall receive grants of stock options and SARs under the plan that exceed, in the aggregate 400,000 shares of common stock in any one year. The term of each stock option shall be determined by the committee but shall not exceed ten years. Vested stock options may be exercised in whole or part by the holder giving notice to the Company. The holder of the option may provide payment for the exercise price or surrender shares equal to the exercise price. The Company issued stock options for 991,401 shares of common stock to employees, officers, and directors of the Company through June 30, 2015. Options for 443,381 shares have vested, and the remaining options will vest over three years. The options were issued with an exercise price between $8.20 and $10.18 for those owning more than 10% of the Company’s stock and between $6.73 and $10.25 for others, which is equal to the estimated market price of the shares on the date of grant valued using Black-Scholes binomial option pricing model. The expected volatility used in the Black-Scholes model valuation of options issued during the year was 17.03% annualized. The annual volatility rate is based on the standard deviation of the average continuously compounded rate of return of five selected comparable companies over the previous 52 weeks. Forfeiture rate of 15% is based on historical Company information and expected future trend. As of June 30, 2015, stock options for 113,499 shares were forfeited and stock options for 28,001 shares were exercised. In September 2014, we entered into a stock option agreement (the Agreement) with a new management employee (the Employee) granting the Employee the right to purchase up to 318,000 of the Company’s common stock at an exercise price of $12.50. The grant of such rights to purchase the Company’s common stock was treated as an inducement grant and was issued outside the GWG Holdings Inc. 2013 Stock Incentive Plan. The Agreement specifies that, among other things, options to purchase 159,000 shares of the Company’s common stock will vest with the Employee ratably on the first, second and third anniversary of the date of the Agreement. The remaining 159,000 options will vest quarterly using a formula based upon the closing price of the Company’s common stock on the last business day of such quarter. The maximum number of these remaining options that will vest with the Employee is 53,000 in each successive one-year period beginning on the date of the Agreement. Outstanding stock options: Vested Un-vested Total Balance as of December 31, 2014 314,288 685,813 1,000,101 Granted during the year 53,500 192,300 245,800 Vested during the year 44,592 (44,592 ) - Exercised during the year (27,667 ) - (27,667 ) Forfeited during the year (2,250 ) (48,083 ) (50,333 ) Balance as of June 30, 2015 382,463 785,438 1,167,901 Compensation expense related to un-vested options not yet recognized is $642,000. We expect to recognize this compensation expense over the next three years ($185,000 in 2015, $229,000 in 2016, $189,000 in 2017, and 39,000 in 2018). The Company issues new common stock for options exercised.

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Jun. 30, 2015
Net loss per common share [Abstract]
Net loss per common share	(12) Net loss per common share

Commitments

Commitments	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments	(13) Commitments The Company entered into an office lease with U.S. Bank National Association as the landlord. The lease was effective April 22, 2012 with a term through August 31, 2015. The lease is for 11,695 square feet of office space located at 220 South Sixth Street, Minneapolis, Minnesota. The Company is obligated to pay base rent plus common area maintenance and a share of the building operating costs. Rent expenses under this agreement were $122,000 and $101,000 during the six-month periods ended June 30, 2015 and 2014, respectively, and $55,000 and $49,000 during the three-month periods ended June 30, 2015 and 2014, respectively. The minimum lease payments for 2015 under the lease agreement are $70,000.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Contingencies	(14) Contingencies Litigation - In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the Company’s financial position, results of operations or cash flows. Opportunity Finance, LLC, owned by Jon Sabes and Steven Sabes, is subject to litigation clawback claims by the bankruptcy trustee for third-party matters for payments that may have been deemed preference payments. In addition, Jon Sabes and Steven Sabes are subject to litigation clawback claims by the bankruptcy trustee for third-party matters for payments received from Opportunity Finance that may have been deemed preference payments. If the parties are unsuccessful in defending against these claims, their equity ownership in the Company may be sold or transferred to other parties to satisfy such claims. In addition, the Company loaned $1,000,000 to Opportunity Finance, LLC, and was repaid in full plus interest of $177,000. This investment amount may also be subject to clawback claims by the bankruptcy court.

Guarantees of Secured Debt

Guarantees of Secured Debt	6 Months Ended
	Jun. 30, 2015
Guarantees of Secured Debt [Abstract]
Guarantees of secured debt	(15) Guarantees of secured debt GWG Holdings has registered with the SEC the offer and sale $250,000,000 of L Bonds, and effective January 9, 2015, launched a $1 billion follow-on to its publicly registered L Bond offering as described in note 7. The L Bonds are secured by the assets of Holdings as described in note 7 and a pledge of all the common stock held by the largest individual shareholders. Obligations under the L Bonds are guaranteed by GWG Life. This guarantee involves the grant of a security interest in all the assets of GWG Life. The payment of principal and interest on the L Bonds is fully and unconditional guaranteed by GWG Life. Substantially all of the Company’s life insurance policies are held by DLP II, DLP III and the Trust. The policies held by DLP II are not collateral for the L Bond obligations as such policies serve as collateral for the credit facility. The consolidating financial statements are presented in lieu of separate financial statements and other related disclosures of the subsidiary guarantors and issuer because management does not believe that separate financial statements and related disclosures would be material to investors. There are currently no significant restrictions on the ability of Holdings or GWG Life, the guarantor subsidiary, to obtain funds from its subsidiaries by dividend or loan, except as follows. DLP II and DLP III are borrowers under a credit agreement with Autobahn, with DZ Bank AG as agent, as described in note 5. The significant majority of insurance policies owned by the Company are subject to a collateral arrangement with DZ Bank AG described in notes 2 and 5. Under this arrangement, collection and escrow accounts are used to fund premiums of the insurance policies and to pay interest and other charges under the revolving credit facility. DZ Bank AG and Autobahn must authorize all disbursements from these accounts, including any distributions to GWG Life. Distributions are limited to an amount that would result in the borrowers (DLP II, DLP III, GWG Life and Holdings) realizing an annualized rate of return on the equity funded amount for such assets of not more than 18%, as determined by DZ Bank AG. After such amount is reached, the credit agreement requires that excess funds be used for repayments of borrowings before any additional distributions may be made. The following represents consolidating financial information as of June 30, 2015 and December 31, 2014, with respect to the financial position, and for the three and six months ended June 30, 2015 and 2014 with respect to results of operations and cash flows of Holdings and its subsidiaries. The parent column presents the financial information of Holdings, the primary obligor of the L Bonds. The guarantor subsidiary column presents the financial information of GWG Life, the guarantor subsidiary of the L Bonds, presenting its investment in DLP II, DLP III and Trust under the equity method. The non-guarantor subsidiaries column presents the financial information of all non-guarantor subsidiaries including DLP II, DLP III and Trust. Condensed Consolidating Balance Sheets June 30, 2015 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated ASSETS Cash and cash equivalents $ 37,814,528 $ 233,553 $ 150,108 $ - $ 38,198,189 Restricted cash - 185,000 7,738,190 - 7,923,190 Policy benefits receivable - - 2,500,000 - 2,500,000 Investment in life settlements, at fair value - - 301,498,527 - 301,498,527 Other assets 2,688,215 1,730,651 2,204,695 - 6,623,561 Investment in subsidiaries 222,479,390 248,566,916 - (471,046,306 ) - TOTAL ASSETS $ 262,982,133 $ 250,716,120 $ 314,091,520 $ (471,046,306 ) $ 356,743,467 LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES Revolving credit facility $ - $ - $ 65,011,048 $ - $ 65,011,048 Series I Secured notes - 24,347,531 - - 24,347,531 L Bonds 223,118,514 - - - 223,118,514 Interest payable 7,967,900 3,374,563 250,757 - 11,593,220 Accounts payable and other accrued expenses 1,294,444 664,744 112,691 - 2,071,879 Deferred taxes, net 6,525,336 - - - 6,525,336 TOTAL LIABILITIES 238,906,194 28,386,838 65,374,496 - 332,667,528 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 222,329,282 248,717,024 (471,046,306 ) - Convertible preferred stock 20,559,823 20,559,823 Common stock 5,933 - - - 5,933 Additional paid-in capital 16,900,193 - - - 16,900,193 Accumulated deficit (13,390,010 ) - - - (13,390,010 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 24,075,939 222,329,282 248,717,024 (471,046,306 ) 24,075,939 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 262,982,133 $ 250,716,120 $ 314,091,520 $ (471,046,306 ) $ 356,743,467 December 31, 2014 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 30,446,473 $ 216,231 $ - $ - $ 30,662,704 Restricted cash - 82,500 4,213,553 - 4,296,053 Policy benefits receivable - - 1,750,000 - 1,750,000 Investment in life settlements, at fair value - - 282,883,010 - 282,883,010 Other assets 1,673,728 1,777,534 27,500 - 3,478,762 Investment in subsidiaries 185,636,417 215,124,779 - (400,761,196 ) - TOTAL ASSETS $ 217,756,618 $ 217,201,044 $ 288,874,063 $ (400,761,196 ) $ 323,070,529 LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES Revolving credit facility $ - $ - $ 72,161,048 $ - $ 72,161,048 Series I Secured notes - 27,616,578 - - 27,616,578 L Bonds 182,782,884 - - - 182,782,884 Interest payable 6,598,250 3,513,615 1,016,654 - 11,128,519 Accounts payable and other accrued expenses 711,993 434,433 571,583 - 1,718,009 Deferred taxes, net 5,273,555 - - - 5,273,555 TOTAL LIABILITIES 195,366,682 31,564,626 73,749,285 - 300,680,593 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 185,636,418 215,124,778 (400,761,196 ) - Convertible preferred stock 20,527,866 - - - 20,527,866 Common stock 5,870 - - - 5,870 Additional paid-in capital 16,257,686 - - - 16,257,686 Accumulated deficit (14,401,486 ) - - - (14,401,486 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 22,389,936 185,636,418 215,124,778 (400,761,196 ) 22,389,936 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 217,756,618 $ 217,201,044 $ 288,874,063 $ (400,761,196 ) $ 323,070,529 Condensed Consolidating Statements of Operations For the six months ended June 30, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 1,018,750 $ - $ (1,018,750 ) $ - Gain on life settlements, net - - 25,257,295 - 25,257,295 Interest and other income 25,023 6,880 107,773 - 139,676 TOTAL REVENUE 25,023 1,025,630 25,365,068 (1,018,750 ) 25,396,971 EXPENSES Origination and servicing fees - - 1,018,750 (1,018,750 ) - Employee compensation and benefits 2,911,596 961,046 - - 3,872,642 Legal and professional fees 828,858 337,326 - - 1,166,184 Interest expense 11,031,758 1,458,965 2,008,158 - 14,498,881 Other expenses 2,056,188 1,302,036 56,836 - 3,415,060 TOTAL EXPENSES 16,828,400 4,059,373 3,083,744 (1,018,750 ) 22,952,767 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (16,803,377 ) (3,033,743 ) 22,281,324 - 2,444,204 EQUITY IN INCOME OF SUBSIDIARY 19,247,581 22,281,217 - (41,528,798 ) - NET INCOME BEFORE INCOME TAXES 2,444,204 19,247,474 22,281,324 (41,528,798 ) 2,444,204 INCOME TAX EXPENSE 1,432,728 - - - 1,432,728 NET LOSS $ 1,011,476 $ 19,247,474 $ 22,281,324 $ (41,528,798 ) $ 1,011,476 For the six months ended June 30, 2014 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 1,308,906 $ - $ (1,308,906 ) $ - Gain on life settlements, net - - 11,001,094 - 11,001,094 Interest and other income 12,929 169,976 63 (169,221 ) 13,747 TOTAL REVENUE 12,929 1,478,882 11,001,157 (1,478,127 ) 11,014,841 EXPENSES Origination and servicing fees - - 1,308,906 (1,308,906 ) - Employee compensation and benefits 1,255,079 892,485 - - 2,147,564 Legal and professional fees 723,106 103,233 - - 826,339 Interest expense 8,691,989 1,572,269 2,670,333 - 12,934,591 Other expenses 1,106,635 734,138 194,232 (169,221 ) 1,865,784 TOTAL EXPENSES 11,776,809 3,302,125 4,173,471 (1,478,127 ) 17,774,278 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (11,763,880 ) (1,823,243 ) 6,827,686 - (6,759,437 ) EQUITY IN INCOME OF SUBSIDIARY 5,004,443 6,827,686 - (11,832,129 ) - NET INCOME BEFORE INCOME TAXES (6,759,437 ) 5,004,443 6,827,686 (11,832,129 ) (6,759,437 ) INCOME TAX BENEFIT (2,271,570 ) - - - (2,271,570 ) NET LOSS $ (4,487,867 ) $ 5,004,443 $ 6,827,686 $ (11,832,129 ) $ (4,487,867 ) For the three months ended June 30, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 661,264 $ - $ (661,264 ) $ - Gain on life settlements, net - - 8,473,886 - 8,473,886 Interest and other income 17,480 430 72,470 - 90,380 TOTAL REVENUE 17,480 661,694 8,546,356 (661,264 ) 8,564,266 EXPENSES Origination and servicing fees - - 661,264 (661,264 ) - Employee compensation and benefits 1,605,795 538,930 - - 2,144,725 Legal and professional fees 351,507 291,424 - - 642,931 Interest expense 5,781,796 684,879 855,672 - 7,322,347 Other expenses 1,104,826 732,243 44,252 - 1,881,321 TOTAL EXPENSES 8,843,924 2,247,476 1,561,188 (661,264 ) 11,991,324 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (8,826,444 ) (1,585,782 ) 6,985,168 - (3,427,058 ) EQUITY IN INCOME OF SUBSIDIARY 5,399,386 6,985,112 - (12,384,498 ) - NET INCOME BEFORE INCOME TAXES (3,427,058 ) 5,399,330 6,985,168 (12,384,498 ) (3,427,058 ) INCOME TAX BENEFIT (1,176,643 ) - - - (1,176,643 ) NET LOSS $ (2,250,415 ) $ 5,399,330 $ 6,985,168 $ (12,384,498 ) $ (2,250,415 ) For the three months ended June 30, 2014 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 342,850 $ - $ (342,850 ) $ - Gain on life settlements, net - - 5,484,889 - 5,484,889 Interest and other income 6,000 362 18 - 6,380 TOTAL REVENUE 6,000 343,212 5,484,907 (342,850 ) 5,491,269 EXPENSES Origination and servicing fees - - 342,850 (342,850 ) - Employee compensation and benefits 664,495 514,324 - - 1,178,819 Legal and professional fees 375,243 44,094 - - 419,337 Interest expense 4,475,461 793,702 1,338,880 - 6,608,043 Other expenses 767,096 408,883 12,500 - 1,188,479 TOTAL EXPENSES 6,282,295 1,761,003 1,694,230 (342,850 ) 9,394,678 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (6,276,295 ) (1,417,791 ) 3,790,667 - (3,903,409 ) EQUITY IN INCOME OF SUBSIDIARY 2,372,886 3,790,667 - (6,163,563 ) - NET INCOME BEFORE INCOME TAXES (3,903,409 ) 2,372,886 3,790,667 (6,163,563 ) (3,903,409 ) INCOME TAX BENEFIT (1,316,712 ) - - - (1,316,712 ) NET LOSS $ (2,586,697 ) $ 2,372,886 $ 3,790,667 $ (6,163,563 ) $ (2,586,697 ) Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2015 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,011,476 $ 19,247,474 $ 22,281,324 $ (41,528,798 ) $ 1,011,476 Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (19,247,582 ) (22,281,216 ) - 41,528,798 - Gain on life settlements - - (12,134,482 ) - (12,134,482 ) Amortization of deferred financing and issuance costs 1,729,175 211,116 (1,982,295 ) - (42,004 ) Deferred income taxes 1,251,781 - - - 1,251,781 Convertible, redeemable preferred stock issued for dividends 335,232 - - - 335,232 (Increase) in operating assets: Policy benefits receivable - - (750,000 ) (750,000 ) Other assets (17,998,823 ) (11,114,039 ) - 28,756,313 (356,549 ) Increase in operating liabilities: Accounts payable and accrued expenses 2,493,495 228,640 (1,419,689 ) - 1,302,446 NET CASH FLOWS USED IN OPERATING ACTIVITIES (30,425,246 ) (13,708,025 ) (5,994,858 ) 28,756,313 (9,382,100 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (10,224,018 ) - (10,224,018 ) Proceeds from settlement of life settlements - - 3,742,983 - 3,742,983 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (6,481,035 ) - (6,481,035 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of revolving credit facility - - (7,150,000 ) - (7,150,000 ) Payments for redemption of Series I Secured notes - (3,617,544 ) - - (3,617,544 ) Proceeds from issuance of L Bonds 50,498,356 - - - 50,498,356 Payments for redemption and issuance of L Bonds (13,013,057 ) - - - (13,013,057 ) Proceeds from restricted cash - (102,500 ) (3,524,637 ) - (3,627,137 ) Issuance of common stock 582,000 - - - 582,000 Redemptions of convertible, redeemable preferred stock (273,998 ) - - - (273,998 ) Issuance of member capital - 17,445,391 11,310,922 (28,756,313 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 37,793,301 13,725,347 636,285 (28,756,313 ) 23,398,620 NET INCREASE IN CASH AND CASH EQUIVALENTS 7,368,055 17,322 150,108 - 7,535,485 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 30,446,473 216,231 - - 30,662,704 END OF THE PERIOD $ 37,814,528 $ 233,553 $ 150,108 $ - $ 38,198,189 For the six months ended June 30, 2014 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (4,487,867 ) $ 5,004,443 $ 6,827,686 $ (11,832,129 ) $ (4,487,867 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: (Equity) of subsidiaries (5,004,443 ) (6,827,686 ) - 11,832,129 - Life settlements – change in fair value - - (22,211,338 ) - (22,211,338 ) Amortization of deferred financing and issuance costs 1,727,610 301,104 (321,050 ) 1,707,664 Deferred income taxes (2,271,570 ) - - (2,271,570 ) Convertible, redeemable preferred stock dividends payable 389,331 - - - 389,331 (Increase) in operating assets: Policy benefits receivable - - (300,000 ) - (300,000 ) Other assets (26,622,350 ) (24,654,818 ) - 50,328,249 (948,919 ) Increase in operating liabilities: Accounts payable and accrued expenses 1,971,543 302,402 894,218 - 3,168,163 NET CASH FLOWS USED IN OPERATING ACTIVITIES (34,297,746 ) (25,874,555 ) (15,110,484 ) 50,328,249 (24,954,536 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (10,879,435 ) - (10,879,435 ) Proceeds from settlement of life settlements - - 68,500 - 68,500 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (10,810,935 ) - (10,810,935 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments for redemption of Series I Secured notes - (1,538,924 ) - - (1,538,924 ) Proceeds from issuance of L Bonds 33,234,487 - - - 33,234,487 Payments for redemption and issuance of L Bonds (9,322,411 ) - - - (9,322,411 ) Proceeds from restricted cash - 855,000 2,167,537 - 3,022,537 Redemptions of convertible, redeemable preferred stock (20,056 ) - - - (20,056 ) Issuance of member capital - 26,574,367 23,753,882 (50,328,249 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 23,892,020 25,890,443 25,921,419 (50,328,249 ) 25,375,633 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,405,723 ) 15,888 - - (10,389,838 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,711,636 738,157 - - 33,449,793 END OF THE PERIOD $ 22,305,910 $ 754,045 $ - $ - $ 23,059,955 For the three months ended June 30, 2015 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (2,250,415 ) $ 5,399,330 $ 6,985,168 $ (12,384,498 ) $ (2,250,415 ) Adjustments to reconcile net loss to net cash flows from operating activities: (Equity) of subsidiaries (5,399,386 ) (6,985,112 ) - 12,384,498 - Gain on life settlements - - (14,028,327 ) - (14,028,327 ) Amortization of deferred financing and issuance costs 1,685,700 80,928 (1,259,602 ) - 507,026 Deferred income taxes (930,470 ) - - - (930,470 ) Convertible, redeemable preferred stock dividends payable 146,420 - - - 146,420 (Increase) in operating assets: Policy benefits receivable - - 17,140,000 - 17,140,000 Other assets (7,124,387 ) (5,236,604 ) - 12,135,615 (225,376 ) Increase (decrease) in operating liabilities: Accounts payable and other accrued expenses 213,843 (509,444 ) (1,037,640 ) - (1,333,241 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (13,658,695 ) (7,250,902 ) 7,799,599 12,135,615 (974,383 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (7,777,541 ) - (7,777,541 ) Proceeds from settlement of life settlements - - 132,388 - 132,388 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (7,645,153 ) - (7,645,153 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of revolving credit facility - - (7,150,000 ) (7,150,000 ) Payments for redemption of Series I Secured notes - (2,344,355 ) - - (2,344,355 ) Proceeds from issuance of L Bonds 22,538,059 - - - 22,538,059 Payments for redemption and issuance of L Bonds (6,134,935 ) - - - (6,134,935 ) Proceeds from restricted cash - 1,677,500 1,732,927 - 3,410,427 Issuance of member capital - 6,872,932 5,262,683 (12,135,615 ) - Issuance of common stock 582,000 - - - 582,000 Redemptions of convertible, redeemable preferred stock (273,998 ) - - - (273,998 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 16,711,126 6,206,077 (154,390 ) (12,135,615 ) 10,627,198 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,052,431 (1,044,825 ) 56 - 2,007,662 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 34,762,097 1,278,378 150,052 - 36,190,527 END OF THE PERIOD $ 37,814,528 $ 233,553 $ 150,108 $ - $ 38,198,189 For the three months ended June 30, 2014 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (2,586,697 ) $ 2,372,886 $ 3,790,677 $ (6,163,563 ) $ (2,586,697 ) Adjustments to reconcile net loss to cash: (Equity) of subsidiaries (2,372,886 ) (3,790,677 ) - 6,163,563 - Gain on life settlements - - (10,852,425 ) - (10,852,425 ) Amortization of deferred financing and issuance costs 880,374 134,158 339,475 - 1,354,007 Deferred income taxes (1,316,712 ) - - - (1,316,712 ) Convertible, redeemable preferred stock dividends payable 196,991 - - - 196,991 (Increase) in operating assets: Policy benefits receivable - - (300,000 ) - (300,000 ) Other assets (10,674,637 ) (9,406,461 ) - 19,384,025 (697,073 ) Increase in operating liabilities: Accounts payable and accrued expenses 1,257,758 72,959 559,620 - 1,890,337 NET CASH FLOWS USED IN OPERATING ACTIVITIES (14,615,809 ) (10,617,135 ) (6,462,653 ) 19,384,025 (12,311,572 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (2,608,232 ) - (2,608,232 ) Proceeds from settlement of life settlements - - 68,500 - 68,500 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (2,539,732 ) - (2,539,732 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments for redemption of Series I Secured notes - (670,621 ) - - (670,621 ) Proceeds from issuance of L Bonds 14,868,830 - - - 14,868,830 Payments for redemption and issuance of L Bonds (4,393,523 ) - - - (4,393,523 ) Proceeds from restricted cash - (215,000 ) 258,330 - 43,330 Issuance of member capital - 10,639,970 8,744,055 (19,384,025 ) - Redemptions of convertible, redeemable preferred stock (20,056 ) - - - (20,056 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 10,455,251 9,754,349 9,002,385 (19,384,025 ) 9,827,960 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,160,558 ) (862,786 ) - - (5,023,344 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 26,466,468 1,616,831 - - 28,083,299 END OF THE PERIOD $ 22,305,910 $ 754,045 $ - $ - $ 23,059,955

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2015
Concentrations [Abstract]
Concentrations	(16) Concentrations GWG purchases life insurance policies written by life insurance companies having investment grade ratings by independent rating agencies. As a result there may be certain concentrations of contracts with life insurance companies. The following summarizes the face value of insurance contracts with specific life insurance companies exceeding 10% of the total face value held by the Company. June 30, December 31, 2015 2014 Life insurance company % % AXA Equitable 14.06 14.55 John Hancock 11.90 11.48 The following summarizes the number of insurance contracts held in specific states exceeding 10% of the total face value held by the Company: June 30, December 31, 2015 2014 State of residence % % California 27.07 28.87 Florida 19.43 18.56

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent events	(17) Subsequent events Subsequent to June 30, 2015, the Company has issued approximately an additional $11.1 million in principal amount of L Bonds.

Nature of Business and Summar24

Nature of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Nature of Business and Summary of Significant Accounting Policies [Abstract]
Use of estimates	Use of estimates
Cash and cash equivalents	Cash and cash equivalents
Life settlements	Life settlements Investments in Insurance Contracts The Company recognizes realized gains (revenue) from life settlement contracts upon one of the two following events: 1) Receipt of death notice or verified obituary of insured 2) Sale of policy and filing of change of ownership forms and receipt of payment The Company recognizes the difference between the death benefits and carrying values of the policy when an insured event has occurred and the Company determines that settlement and ultimate collection of the death benefits is realizable and reasonably assured. Revenue from a transaction must meet both criteria in order to be recognized. In an event of a sale of a policy, the Company recognizes gain or loss as the difference between the sale price and the carrying value of the policy on the date of the receipt of payment on such sale. Deposits and initial direct costs advanced on unsettled policy acquisitions are recorded as other assets until policy ownership has been transferred to the Company. Such deposits and direct cost advances were $222,000 and $27,000 at June 30, 2015 and December 31, 2014, respectively.
Deferred financing and issuance costs	Deferred financing and issuance costs
Earnings (loss) per share	Earnings (loss) per share
Subsequent events	Subsequent events
Recently adopted pronouncements	Recently adopted pronouncements - On April 7, 2015 the FASB issued Accounting Standards Update (ASU) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. For public business entities, the guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For entities other than public business entities, the guidance is effective for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). The impact of the new ASU on the Company’s balance sheet would be a reduction of approximately $4,532,000 to assets and the corresponding reduction to liabilities. There would be no impact on the Company’s statements of operations.

Investment in Life Insurance 25

Investment in Life Insurance Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Investment in Life Insurance Policies [Abstract]
Summary of life insurance policies, under the fair value method and estimated maturity dates, based on remaining life expectancy	As of June 30, 2015 As of December 31, 2014 Years Ending December 31, Number of Contracts Estimated Fair Value Face Value Number of Contracts Estimated Fair Value Face Value 2015 - $ - $ - 3 $ 5,063,000 $ 6,000,000 2016 5 7,198,000 8,500,000 7 8,144,000 11,550,000 2017 16 17,063,000 23,857,000 17 21,916,000 35,542,000 2018 30 42,478,000 72,171,000 30 41,994,000 76,206,000 2019 48 53,052,000 109,810,000 45 47,303,000 106,973,000 2020 43 46,597,000 101,574,000 41 43,429,000 102,614,000 2021 42 34,486,000 96,956,000 36 29,789,000 90,921,000 Thereafter 130 100,625,000 393,406,000 112 85,245,000 349,293,000 Totals 314 301,499,000 806,274,000 291 $ 282,883,000 $ 779,099,000
Reconciliation of gain on life settlements	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2012 Change in fair value $ 14,028,000 $ 10,852,000 $ 12,134,000 $ 22,211,000 Premiums and other annual fees (6,172,000 ) (5,599,000 ) (12,509,000 ) (11,442,000 ) Policy maturities 618,000 232,000 25,632,000 232,000 Gain on life settlements, net $ 8,474,000 $ 5,485,000 $ 25,257,000 $ 11,001,000
Estimated expected premium payments to maintain the above life insurance policies assuming no mortalities	Years Ending December 31, Premiums Servicing Premiums and Servicing Fees Six months ending December 31 ,2015 $ 13,292,000 $ 377,000 $ 13,669,000 2016 27,985,000 377,000 28,362,000 2017 31,333,000 377,000 31,710,000 2018 34,191,000 377,000 34,568,000 2019 38,001,000 377,000 38,378,000 2020 42,158,000 377,000 42,535,000 $ 186,960,000 $ 2,262,000 $ 189,222,000

Fair Value Definition and Hie26

Fair Value Definition and Hierarchy (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Definition and Hierarchy [Abstract]
Reconciliation of investments in life insurance policies	Three month ended June 30, Six months ended June 30, 2015 2014 2015 2014 Beginning balance $ 278,395,000 $ 254,504,000 $ 282,883,000 $ 234,673,000 Purchases 9,208,000 2,608,000 10,225,000 11,080,000 Maturities (cash in excess of carrying value) (132,000 ) (68,000 ) (3,743,000 ) (68,000 ) Net change in fair value 14,028,000 10,852,000 12,134,000 22,211,000 Ending balance (June 30) $ 301,499,000 $ 267,896,000 $ 301,499,000 $ 267,896,000
Summary of inputs utilized in estimating the fair value	As of June 30, 2015 As of December 31, 2014 Weighted average age of insured 82.9 82.8 Weighted average life expectancy, months* 78.7 78.4 Average face amount per policy $ 2,568,000 $ 2,677,000 Discount rate 11.19 % 11.43 % * Standard life expectancy as adjusted for insured’s specific circumstances.
Fair value sensitivity analysis on the investment in life insurance policies	Change in life expectancy estimates minus 8 months minus months plus 4 months plus 8 months June 30, 2015 $ 41,402,000 $ 20,590,000 $ (20,105,000 ) $ (39,752,000 ) December 31, 2014 $ 40,634,000 $ 20,130,000 $ (19,664,000 ) $ (38,864,000 ) Change in discount rate minus 2% minus 1% plus 1% plus 2% June 30, 2015 $ 29,494,000 $ 14,144,000 $ (13,061,000 ) $ (25,148,000 ) December 31, 2014 $ 28,179,000 $ 13,522,000 $ (12,502,000 ) $ (24,085,000 )
Warrants Level 3 instruments and measured at fair value upon issuance	Month issued Warrants issued Fair value per share Risk free Volatility Term December 2011 68,937 $ 0.22 0.42 % 25.25 % 5 years March 2012 38,130 $ 0.52 0.38 % 36.20 % 5 years June 2012 161,840 $ 1.16 0.41 % 47.36 % 5 years July 2012 144,547 $ 1.16 0.41 % 47.36 % 5 years September 2012 2,500 $ 0.72 0.31 % 40.49 % 5 years September 2014 16,000 $ 1.26 1.85 % 17.03 % 5 years 431,954

Series I Secured Notes (Tables)

Series I Secured Notes (Tables)	6 Months Ended
	Jun. 30, 2015
Credit Facilities / Series I Secured Notes / L Bonds (formerly Renewable Secured Debentures) [Abstract]
Future contractual maturities of series I secured notes payable	Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31 ,2015 $ 5,085,000 $ 20,000 2016 10,964,000 144,000 2017 6,164,000 149,000 2018 1,127,000 36,000 2019 347,000 7,000 Thereafter 1,041,000 34,000 $ 24,728,000 $ 390,000

L Bonds (Formerly Renewable S28

L Bonds (Formerly Renewable Secured Debentures) (Tables)	6 Months Ended
	Jun. 30, 2015
Credit Facilities / Series I Secured Notes / L Bonds (formerly Renewable Secured Debentures) [Abstract]
Schedule of future contractual maturities of L Bonds	Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31 ,2015 $ 48,082,000 $ 243,000 2016 67,120,000 1,229,000 2017 43,051,000 1,520,000 2018 31,012,000 1,450,000 2019 14,342,000 612,000 Thereafter 22,703,000 1,258,000 $ 226,310,000 $ 6,312,000

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Components of deferred income tax expense	Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Income tax provision (benefit): Current: Federal $ (182,000 ) $ - $ 141,000 $ - State $ (64,000 ) $ - $ 40,000 $ - Total current tax expense (246,000 ) - 181,000 - Deferred: Federal $ (670,000 ) $ (1,106,000 ) $ 984,000 $ (1,909,000 ) State $ (261,000 ) $ (211,000 ) $ 268,000 $ (363,000 ) Total deferred tax expense (benefit) (931,000 ) (1,317,000 ) 1,252,000 (2,272,000 ) Total income tax expense (benefit) (1,177,000 ) (1,317,000 ) 1,433,000 (2,272,000 )

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Incentive Plan [Abstract]
Schedule of outstanding stock options	Vested Un-vested Total Balance as of December 31, 2014 314,288 685,813 1,000,101 Granted during the year 53,500 192,300 245,800 Vested during the year 44,592 (44,592 ) - Exercised during the year (27,667 ) - (27,667 ) Forfeited during the year (2,250 ) (48,083 ) (50,333 ) Balance as of June 30, 2015 382,463 785,438 1,167,901

Guarantees of Secured Debt (Tab

Guarantees of Secured Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Guarantees of Secured Debt [Abstract]
Condensed consolidating balance sheets	June 30, 2015 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated ASSETS Cash and cash equivalents $ 37,814,528 $ 233,553 $ 150,108 $ - $ 38,198,189 Restricted cash - 185,000 7,738,190 - 7,923,190 Policy benefits receivable - - 2,500,000 - 2,500,000 Investment in life settlements, at fair value - - 301,498,527 - 301,498,527 Other assets 2,688,215 1,730,651 2,204,695 - 6,623,561 Investment in subsidiaries 222,479,390 248,566,916 - (471,046,306 ) - TOTAL ASSETS $ 262,982,133 $ 250,716,120 $ 314,091,520 $ (471,046,306 ) $ 356,743,467 LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES Revolving credit facility $ - $ - $ 65,011,048 $ - $ 65,011,048 Series I Secured notes - 24,347,531 - - 24,347,531 L Bonds 223,118,514 - - - 223,118,514 Interest payable 7,967,900 3,374,563 250,757 - 11,593,220 Accounts payable and other accrued expenses 1,294,444 664,744 112,691 - 2,071,879 Deferred taxes, net 6,525,336 - - - 6,525,336 TOTAL LIABILITIES 238,906,194 28,386,838 65,374,496 - 332,667,528 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 222,329,282 248,717,024 (471,046,306 ) - Convertible preferred stock 20,559,823 20,559,823 Common stock 5,933 - - - 5,933 Additional paid-in capital 16,900,193 - - - 16,900,193 Accumulated deficit (13,390,010 ) - - - (13,390,010 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 24,075,939 222,329,282 248,717,024 (471,046,306 ) 24,075,939 TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 262,982,133 $ 250,716,120 $ 314,091,520 $ (471,046,306 ) $ 356,743,467 December 31, 2014 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 30,446,473 $ 216,231 $ - $ - $ 30,662,704 Restricted cash - 82,500 4,213,553 - 4,296,053 Policy benefits receivable - - 1,750,000 - 1,750,000 Investment in life settlements, at fair value - - 282,883,010 - 282,883,010 Other assets 1,673,728 1,777,534 27,500 - 3,478,762 Investment in subsidiaries 185,636,417 215,124,779 - (400,761,196 ) - TOTAL ASSETS $ 217,756,618 $ 217,201,044 $ 288,874,063 $ (400,761,196 ) $ 323,070,529 LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES Revolving credit facility $ - $ - $ 72,161,048 $ - $ 72,161,048 Series I Secured notes - 27,616,578 - - 27,616,578 L Bonds 182,782,884 - - - 182,782,884 Interest payable 6,598,250 3,513,615 1,016,654 - 11,128,519 Accounts payable and other accrued expenses 711,993 434,433 571,583 - 1,718,009 Deferred taxes, net 5,273,555 - - - 5,273,555 TOTAL LIABILITIES 195,366,682 31,564,626 73,749,285 - 300,680,593 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 185,636,418 215,124,778 (400,761,196 ) - Convertible preferred stock 20,527,866 - - - 20,527,866 Common stock 5,870 - - - 5,870 Additional paid-in capital 16,257,686 - - - 16,257,686 Accumulated deficit (14,401,486 ) - - - (14,401,486 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 22,389,936 185,636,418 215,124,778 (400,761,196 ) 22,389,936 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 217,756,618 $ 217,201,044 $ 288,874,063 $ (400,761,196 ) $ 323,070,529
Condensed consolidating statements of operations	For the six months ended June 30, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 1,018,750 $ - $ (1,018,750 ) $ - Gain on life settlements, net - - 25,257,295 - 25,257,295 Interest and other income 25,023 6,880 107,773 - 139,676 TOTAL REVENUE 25,023 1,025,630 25,365,068 (1,018,750 ) 25,396,971 EXPENSES Origination and servicing fees - - 1,018,750 (1,018,750 ) - Employee compensation and benefits 2,911,596 961,046 - - 3,872,642 Legal and professional fees 828,858 337,326 - - 1,166,184 Interest expense 11,031,758 1,458,965 2,008,158 - 14,498,881 Other expenses 2,056,188 1,302,036 56,836 - 3,415,060 TOTAL EXPENSES 16,828,400 4,059,373 3,083,744 (1,018,750 ) 22,952,767 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (16,803,377 ) (3,033,743 ) 22,281,324 - 2,444,204 EQUITY IN INCOME OF SUBSIDIARY 19,247,581 22,281,217 - (41,528,798 ) - NET INCOME BEFORE INCOME TAXES 2,444,204 19,247,474 22,281,324 (41,528,798 ) 2,444,204 INCOME TAX EXPENSE 1,432,728 - - - 1,432,728 NET LOSS $ 1,011,476 $ 19,247,474 $ 22,281,324 $ (41,528,798 ) $ 1,011,476 For the six months ended June 30, 2014 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 1,308,906 $ - $ (1,308,906 ) $ - Gain on life settlements, net - - 11,001,094 - 11,001,094 Interest and other income 12,929 169,976 63 (169,221 ) 13,747 TOTAL REVENUE 12,929 1,478,882 11,001,157 (1,478,127 ) 11,014,841 EXPENSES Origination and servicing fees - - 1,308,906 (1,308,906 ) - Employee compensation and benefits 1,255,079 892,485 - - 2,147,564 Legal and professional fees 723,106 103,233 - - 826,339 Interest expense 8,691,989 1,572,269 2,670,333 - 12,934,591 Other expenses 1,106,635 734,138 194,232 (169,221 ) 1,865,784 TOTAL EXPENSES 11,776,809 3,302,125 4,173,471 (1,478,127 ) 17,774,278 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (11,763,880 ) (1,823,243 ) 6,827,686 - (6,759,437 ) EQUITY IN INCOME OF SUBSIDIARY 5,004,443 6,827,686 - (11,832,129 ) - NET INCOME BEFORE INCOME TAXES (6,759,437 ) 5,004,443 6,827,686 (11,832,129 ) (6,759,437 ) INCOME TAX BENEFIT (2,271,570 ) - - - (2,271,570 ) NET LOSS $ (4,487,867 ) $ 5,004,443 $ 6,827,686 $ (11,832,129 ) $ (4,487,867 ) For the three months ended June 30, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 661,264 $ - $ (661,264 ) $ - Gain on life settlements, net - - 8,473,886 - 8,473,886 Interest and other income 17,480 430 72,470 - 90,380 TOTAL REVENUE 17,480 661,694 8,546,356 (661,264 ) 8,564,266 EXPENSES Origination and servicing fees - - 661,264 (661,264 ) - Employee compensation and benefits 1,605,795 538,930 - - 2,144,725 Legal and professional fees 351,507 291,424 - - 642,931 Interest expense 5,781,796 684,879 855,672 - 7,322,347 Other expenses 1,104,826 732,243 44,252 - 1,881,321 TOTAL EXPENSES 8,843,924 2,247,476 1,561,188 (661,264 ) 11,991,324 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (8,826,444 ) (1,585,782 ) 6,985,168 - (3,427,058 ) EQUITY IN INCOME OF SUBSIDIARY 5,399,386 6,985,112 - (12,384,498 ) - NET INCOME BEFORE INCOME TAXES (3,427,058 ) 5,399,330 6,985,168 (12,384,498 ) (3,427,058 ) INCOME TAX BENEFIT (1,176,643 ) - - - (1,176,643 ) NET LOSS $ (2,250,415 ) $ 5,399,330 $ 6,985,168 $ (12,384,498 ) $ (2,250,415 ) For the three months ended June 30, 2014 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 342,850 $ - $ (342,850 ) $ - Gain on life settlements, net - - 5,484,889 - 5,484,889 Interest and other income 6,000 362 18 - 6,380 TOTAL REVENUE 6,000 343,212 5,484,907 (342,850 ) 5,491,269 EXPENSES Origination and servicing fees - - 342,850 (342,850 ) - Employee compensation and benefits 664,495 514,324 - - 1,178,819 Legal and professional fees 375,243 44,094 - - 419,337 Interest expense 4,475,461 793,702 1,338,880 - 6,608,043 Other expenses 767,096 408,883 12,500 - 1,188,479 TOTAL EXPENSES 6,282,295 1,761,003 1,694,230 (342,850 ) 9,394,678 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (6,276,295 ) (1,417,791 ) 3,790,667 - (3,903,409 ) EQUITY IN INCOME OF SUBSIDIARY 2,372,886 3,790,667 - (6,163,563 ) - NET INCOME BEFORE INCOME TAXES (3,903,409 ) 2,372,886 3,790,667 (6,163,563 ) (3,903,409 ) INCOME TAX BENEFIT (1,316,712 ) - - - (1,316,712 ) NET LOSS $ (2,586,697 ) $ 2,372,886 $ 3,790,667 $ (6,163,563 ) $ (2,586,697 )
Condensed consolidating statements of cash flows	Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2015 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,011,476 $ 19,247,474 $ 22,281,324 $ (41,528,798 ) $ 1,011,476 Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (19,247,582 ) (22,281,216 ) - 41,528,798 - Gain on life settlements - - (12,134,482 ) - (12,134,482 ) Amortization of deferred financing and issuance costs 1,729,175 211,116 (1,982,295 ) - (42,004 ) Deferred income taxes 1,251,781 - - - 1,251,781 Convertible, redeemable preferred stock issued for dividends 335,232 - - - 335,232 (Increase) in operating assets: Policy benefits receivable - - (750,000 ) (750,000 ) Other assets (17,998,823 ) (11,114,039 ) - 28,756,313 (356,549 ) Increase in operating liabilities: Accounts payable and accrued expenses 2,493,495 228,640 (1,419,689 ) - 1,302,446 NET CASH FLOWS USED IN OPERATING ACTIVITIES (30,425,246 ) (13,708,025 ) (5,994,858 ) 28,756,313 (9,382,100 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (10,224,018 ) - (10,224,018 ) Proceeds from settlement of life settlements - - 3,742,983 - 3,742,983 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (6,481,035 ) - (6,481,035 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of revolving credit facility - - (7,150,000 ) - (7,150,000 ) Payments for redemption of Series I Secured notes - (3,617,544 ) - - (3,617,544 ) Proceeds from issuance of L Bonds 50,498,356 - - - 50,498,356 Payments for redemption and issuance of L Bonds (13,013,057 ) - - - (13,013,057 ) Proceeds from restricted cash - (102,500 ) (3,524,637 ) - (3,627,137 ) Issuance of common stock 582,000 - - - 582,000 Redemptions of convertible, redeemable preferred stock (273,998 ) - - - (273,998 ) Issuance of member capital - 17,445,391 11,310,922 (28,756,313 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 37,793,301 13,725,347 636,285 (28,756,313 ) 23,398,620 NET INCREASE IN CASH AND CASH EQUIVALENTS 7,368,055 17,322 150,108 - 7,535,485 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 30,446,473 216,231 - - 30,662,704 END OF THE PERIOD $ 37,814,528 $ 233,553 $ 150,108 $ - $ 38,198,189 Consolidating Statements of Cash Flows (continued) For the six months ended June 30, 2014 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (4,487,867 ) $ 5,004,443 $ 6,827,686 $ (11,832,129 ) $ (4,487,867 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities: (Equity) of subsidiaries (5,004,443 ) (6,827,686 ) - 11,832,129 - Life settlements – change in fair value - - (22,211,338 ) - (22,211,338 ) Amortization of deferred financing and issuance costs 1,727,610 301,104 (321,050 ) 1,707,664 Deferred income taxes (2,271,570 ) - - (2,271,570 ) Convertible, redeemable preferred stock dividends payable 389,331 - - - 389,331 (Increase) in operating assets: Policy benefits receivable - - (300,000 ) - (300,000 ) Other assets (26,622,350 ) (24,654,818 ) - 50,328,249 (948,919 ) Increase in operating liabilities: Accounts payable and accrued expenses 1,971,543 302,402 894,218 - 3,168,163 NET CASH FLOWS USED IN OPERATING ACTIVITIES (34,297,746 ) (25,874,555 ) (15,110,484 ) 50,328,249 (24,954,536 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (10,879,435 ) - (10,879,435 ) Proceeds from settlement of life settlements - - 68,500 - 68,500 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (10,810,935 ) - (10,810,935 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments for redemption of Series I Secured notes - (1,538,924 ) - - (1,538,924 ) Proceeds from issuance of L Bonds 33,234,487 - - - 33,234,487 Payments for redemption and issuance of L Bonds (9,322,411 ) - - - (9,322,411 ) Proceeds from restricted cash - 855,000 2,167,537 - 3,022,537 Redemptions of convertible, redeemable preferred stock (20,056 ) - - - (20,056 ) Issuance of member capital - 26,574,367 23,753,882 (50,328,249 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 23,892,020 25,890,443 25,921,419 (50,328,249 ) 25,375,633 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,405,723 ) 15,888 - - (10,389,838 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,711,636 738,157 - - 33,449,793 END OF THE PERIOD $ 22,305,910 $ 754,045 $ - $ - $ 23,059,955 For the three months ended June 30, 2015 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (2,250,415 ) $ 5,399,330 $ 6,985,168 $ (12,384,498 ) $ (2,250,415 ) Adjustments to reconcile net loss to net cash flows from operating activities: (Equity) of subsidiaries (5,399,386 ) (6,985,112 ) - 12,384,498 - Gain on life settlements - - (14,028,327 ) - (14,028,327 ) Amortization of deferred financing and issuance costs 1,685,700 80,928 (1,259,602 ) - 507,026 Deferred income taxes (930,470 ) - - - (930,470 ) Convertible, redeemable preferred stock dividends payable 146,420 - - - 146,420 (Increase) in operating assets: Policy benefits receivable - - 17,140,000 - 17,140,000 Other assets (7,124,387 ) (5,236,604 ) - 12,135,615 (225,376 ) Increase (decrease) in operating liabilities: Accounts payable and other accrued expenses 213,843 (509,444 ) (1,037,640 ) - (1,333,241 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (13,658,695 ) (7,250,902 ) 7,799,599 12,135,615 (974,383 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (7,777,541 ) - (7,777,541 ) Proceeds from settlement of life settlements - - 132,388 - 132,388 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (7,645,153 ) - (7,645,153 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of revolving credit facility - - (7,150,000 ) (7,150,000 ) Payments for redemption of Series I Secured notes - (2,344,355 ) - - (2,344,355 ) Proceeds from issuance of L Bonds 22,538,059 - - - 22,538,059 Payments for redemption and issuance of L Bonds (6,134,935 ) - - - (6,134,935 ) Proceeds from restricted cash - 1,677,500 1,732,927 - 3,410,427 Issuance of member capital - 6,872,932 5,262,683 (12,135,615 ) - Issuance of common stock 582,000 - - - 582,000 Redemptions of convertible, redeemable preferred stock (273,998 ) - - - (273,998 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 16,711,126 6,206,077 (154,390 ) (12,135,615 ) 10,627,198 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,052,431 (1,044,825 ) 56 - 2,007,662 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 34,762,097 1,278,378 150,052 - 36,190,527 END OF THE PERIOD $ 37,814,528 $ 233,553 $ 150,108 $ - $ 38,198,189 For the three months ended June 30, 2014 Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (2,586,697 ) $ 2,372,886 $ 3,790,677 $ (6,163,563 ) $ (2,586,697 ) Adjustments to reconcile net loss to cash: (Equity) of subsidiaries (2,372,886 ) (3,790,677 ) - 6,163,563 - Gain on life settlements - - (10,852,425 ) - (10,852,425 ) Amortization of deferred financing and issuance costs 880,374 134,158 339,475 - 1,354,007 Deferred income taxes (1,316,712 ) - - - (1,316,712 ) Convertible, redeemable preferred stock dividends payable 196,991 - - - 196,991 (Increase) in operating assets: Policy benefits receivable - - (300,000 ) - (300,000 ) Other assets (10,674,637 ) (9,406,461 ) - 19,384,025 (697,073 ) Increase in operating liabilities: Accounts payable and accrued expenses 1,257,758 72,959 559,620 - 1,890,337 NET CASH FLOWS USED IN OPERATING ACTIVITIES (14,615,809 ) (10,617,135 ) (6,462,653 ) 19,384,025 (12,311,572 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (2,608,232 ) - (2,608,232 ) Proceeds from settlement of life settlements - - 68,500 - 68,500 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (2,539,732 ) - (2,539,732 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments for redemption of Series I Secured notes - (670,621 ) - - (670,621 ) Proceeds from issuance of L Bonds 14,868,830 - - - 14,868,830 Payments for redemption and issuance of L Bonds (4,393,523 ) - - - (4,393,523 ) Proceeds from restricted cash - (215,000 ) 258,330 - 43,330 Issuance of member capital - 10,639,970 8,744,055 (19,384,025 ) - Redemptions of convertible, redeemable preferred stock (20,056 ) - - - (20,056 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 10,455,251 9,754,349 9,002,385 (19,384,025 ) 9,827,960 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,160,558 ) (862,786 ) - - (5,023,344 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 26,466,468 1,616,831 - - 28,083,299 END OF THE PERIOD $ 22,305,910 $ 754,045 $ - $ - $ 23,059,955

Concentrations (Tables)

Concentrations (Tables)	6 Months Ended
	Jun. 30, 2015
Concentrations [Abstract]
Summary of the face value of insurance contracts	June 30, December 31, 2015 2014 Life insurance company % % AXA Equitable 14.06 14.55 John Hancock 11.90 11.48
Summary of the number of insurance contracts	June 30, December 31, 2015 2014 State of residence % % California 27.07 28.87 Florida 19.43 18.56

Nature of Business and Summar33

Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Nature Of Business And Summary Of Significant Accounting Policies
Deposits and direct cost advances	$ 222,000		$ 222,000		$ 27,000
Amortization of deferred financing costs	300,000	$ 89,000	300,000	$ 179,000
Future amortization expected	1,500,000		$ 1,500,000
Redemption period for amortization of discount related to financing cost			3 years
Debt issuance costs in financial statement	$ 3,629,000		$ 3,629,000

Restrictions on Cash (Details)

Restrictions on Cash (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Restrictions on Cash (Textual)
Restricted cash	$ 7,923,000	$ 4,296,000

Investment in Life Insurance 35

Investment in Life Insurance Policies (Details)	Jun. 30, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Summary of Company's life insurance policies accounted for under fair value method and their estimated maturity dates, based on remaining life expectancy
Number of Contracts, 2015 | Contract		3
Number of Contracts, 2016 | Contract	5	7
Number of Contracts, 2017 | Contract	16	17
Number of Contracts, 2018 | Contract	30	30
Number of Contracts, 2019 | Contract	48	45
Number of Contracts, 2020 | Contract	43	41
Number of Contracts, 2021 | Contract	42	36
Number of Contracts, Thereafter | Contract	130	112
Life Settlement Contracts, Number of Contracts, Total | Contract	314	291
Estimated Fair Value, 2015		$ 5,063,000
Estimated Fair Value, 2016	$ 7,198,000	8,144,000
Estimated Fair Value, 2017	17,063,000	21,916,000
Estimated Fair Value, 2018	42,478,000	41,994,000
Estimated Fair Value, 2019	53,052,000	47,303,000
Estimated Fair Value, 2020	46,597,000	43,429,000
Estimated Fair Value, 2021	34,486,000	29,789,000
Estimated Fair Value, Thereafter	100,625,000	85,245,000
Life Settlement Contracts, Estimated Fair Value, Total	$ 301,499,000	282,883,000
Face Value, 2015		6,000,000
Face Value, 2016	$ 8,500,000	11,550,000
Face Value, 2017	23,857,000	35,542,000
Face Value, 2018	72,171,000	76,206,000
Face Value, 2019	109,810,000	106,973,000
Face Value, 2020	101,574,000	102,614,000
Face Value, 2021	96,956,000	90,921,000
Face Value, Thereafter	393,406,000	349,293,000
Life Settlement Contracts, Face Value, Total	$ 806,274,000	$ 779,099,000

Investment in Life Insurance 36

Investment in Life Insurance Policies (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Summary of reconciliation of gain on life settlements
Change in fair value	$ 14,028,000	$ 10,852,000	$ 12,134,000	$ 22,211,000
Premiums and other annual fees	(6,172,000)	(5,599,000)	(12,509,000)	(11,442,000)
Policy maturities	618,000	232,000	25,632,000	232,000
Gain on life settlements, net	$ 8,474,000	$ 5,485,000	$ 25,257,000	$ 11,001,000

Investment in Life Insurance 37

Investment in Life Insurance Policies(Details 2)	Jun. 30, 2015USD ($)
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Six months ending December 31 ,2015	$ 13,669,000
2,016	28,362,000
2,017	31,710,000
2,018	34,568,000
2,019	38,378,000
2,020	42,535,000
Estimated expected premium payments	189,222,000
Premiums [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Six months ending December 31 ,2015	13,292,000
2,016	27,985,000
2,017	31,333,000
2,018	34,191,000
2,019	38,001,000
2,020	42,158,000
Estimated expected premium payments	186,960,000
Servicing [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Six months ending December 31 ,2015	377,000
2,016	377,000
2,017	377,000
2,018	377,000
2,019	377,000
2,020	377,000
Estimated expected premium payments	$ 2,262,000

Investment in Life Insurance 38

Investment in Life Insurance Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Investment in Life Insurance Policies (Textual)
Realized gains from life insurance policy	$ 618,000	$ 232,000	$ 25,632,000	$ 232,000
Benefit recognized from insurance policy	750,000	300,000	29,375,000	300,000
Carrying value of life insurance policy	$ 132,000	$ 68,000	$ 3,743,000	$ 68,000
Life insurance policies [Member]
Investment in Life Insurance Policies (Textual)
Discount rate applied to portfolio			11.19%		11.43%

Fair Value Definition and Hie39

Fair Value Definition and Hierarchy (Details) - Life insurance policies [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Summary of reconciliation of investments in life insurance policies
Beginning balance	$ 278,395,000	$ 254,504,000	$ 282,883,000	$ 234,673,000
Purchases	9,208,000	2,608,000	10,225,000	11,080,000
Maturities (cash in excess of carrying value)	(132,000)	(68,000)	(3,743,000)	(68,000)
Net change in fair value	14,028,000	10,852,000	12,134,000	22,211,000
Ending balance (June 30)	$ 301,499,000	$ 267,896,000	$ 301,499,000	$ 267,896,000

Fair Value Definition and Hie40

Fair Value Definition and Hierarchy (Details 1) - Life insurance policies [Member] - USD ($)		6 Months Ended	12 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Summary of inputs utilized in estimating the fair value
Weighted average age of insured		82 years 10 months 24 days	82 years 9 months 18 days
Weighted average life expectancy, months*	[1]	78 years 8 months 12 days	78 years 4 months 24 days
Average face amount per policy		$ 2,568,000	$ 2,677,000
Discount rate		11.19%	11.43%
[1]	* Standard life expectancy as adjusted for insured's specific circumstances.

Fair Value Definition and Hie41

Fair Value Definition and Hierarchy (Details 2) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Plus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	$ (20,105,000)	$ (19,664,000)
Minus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	41,402,000	40,634,000
Plus 4 Months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	(39,752,000)	(38,864,000)
Minus 4 Months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	20,590,000	20,130,000
Plus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	(25,148,000)	(24,085,000)
Minus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	29,494,000	28,179,000
Plus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	(13,061,000)	(12,502,000)
Minus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life policies	$ 14,144,000	$ 13,522,000

Fair value definition and hie42

Fair value definition and hierarchy (Details 3) - 6 months ended Jun. 30, 2015 - Level 3 [Member] - $ / shares	Total
Warrants Level 3 instruments and measured at fair value upon issuance
Warrants issued	431,954
December 2011 [Member]
Warrants Level 3 instruments and measured at fair value upon issuance
Month issued	Dec. 31, 2011
Warrants issued	68,937
Fair value per share	$ 0.22
Risk free rate	0.42%
Volatility	25.25%
Term	5 years
March 2012 [Member]
Warrants Level 3 instruments and measured at fair value upon issuance
Month issued	Mar. 31, 2012
Warrants issued	38,130
Fair value per share	$ 0.52
Risk free rate	0.38%
Volatility	36.20%
Term	5 years
June 2012 [Member]
Warrants Level 3 instruments and measured at fair value upon issuance
Month issued	Jun. 30, 2012
Warrants issued	161,840
Fair value per share	$ 1.16
Risk free rate	0.41%
Volatility	47.36%
Term	5 years
July 2012 [Member]
Warrants Level 3 instruments and measured at fair value upon issuance
Month issued	Jul. 31, 2012
Warrants issued	144,547
Fair value per share	$ 1.16
Risk free rate	0.41%
Volatility	47.36%
Term	5 years
September 2012 [Member]
Warrants Level 3 instruments and measured at fair value upon issuance
Month issued	Sep. 30, 2012
Warrants issued	2,500
Fair value per share	$ 0.72
Risk free rate	0.31%
Volatility	40.49%
Term	5 years
September 2014 [Member]
Warrants Level 3 instruments and measured at fair value upon issuance
Month issued	Sep. 30, 2014
Warrants issued	16,000
Fair value per share	$ 1.26
Risk free rate	1.85%
Volatility	17.03%
Term	5 years

Fair Value Definition and Hie43

Fair Value Definition and Hierarchy (Details Textual) - Jun. 30, 2015 - USD ($)	Total
Fair Value Definition and Hierarchy (Textual)
Estimated fair value of series I secured notes payable	$ 253,263,000
Weighted average market interest rate of secured notes payable	7.08%
Face value of notes	$ 251,038,000
Description for change in discount factor	If the life expectancy estimates were increased or decreased by four and eight months on each outstanding policy and the discount factors were increased or decreased by 1% and 2%, while all other variables are held constant.
Increase decrease in life expectancy	Four and eight months
Increase decrease in discount rate	1% and 2

Credit Facilities (Details)

Credit Facilities (Details) - USD ($)	Jan. 29, 2013	Jul. 15, 2008	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Credit Facilities (Textual)
Maximum borrowing amount under line of credit facility		$ 100,000,000
Expiry date of line of credit		Jul. 15, 2013
Amount outstanding under line of credit facility			$ 65,011,000		$ 65,011,000		$ 72,161,000
Effective rate of interest			5.41%		5.41%		6.24%
Total funds available for additional borrowings under the borrowing base formula criteria			$ 33,409,000		$ 33,409,000		$ 20,585,000
Extended date of line of credit facility	Dec. 31, 2014
Weighted average effective interest rate			5.37%	6.20%	6.00%	6.21%
Minimum tangible net worth to be maintained by company					$ 45,000,000
Minimum cash and eligible investments					15,000,000
Consolidated net income under credit and security agreement					44,503,000
Consolidated tangible net worth under credit and security agreement					$ 101,427,000
Credit facility, Description		Lender's cost of borrowing plus 4.25 percent, which is 1.75 percent less than under the previous Credit and Security Agreement executed on January 25, 2013.
Credit facility up to limit		$ 105,000,000

Series I Secured Notes (Details

Series I Secured Notes (Details) - Series I Secured Notes Payable [Member]	Jun. 30, 2015USD ($)
Summary of future contractual maturities of notes payable
2,015	$ 5,085,000
2,016	10,964,000
2,017	6,164,000
2,018	1,127,000
2,019	347,000
Thereafter	1,041,000
Total	24,728,000
Summary of amortization of deferred financing costs of notes payable
2,015	20,000
2,016	144,000
2,017	149,000
2,018	36,000
2,019	7,000
Thereafter	34,000
Total	$ 390,000

Series I Secured Notes (Detai46

Series I Secured Notes (Details Textual) - USD ($)	Jun. 14, 2011	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Series I Secured Notes Payable (Textual)
Weighted average market interest rate of Secured notes payable		7.08%		7.08%
Amortization of deferred financing and issuance costs		$ 300,000	$ 89,000	$ 300,000	$ 179,000
Series I Secured Notes Payable [Member]
Series I Secured Notes Payable (Textual)
Interest rate on secured notes, Minimum	5.65%
Interest rate on secured notes, Maximum	9.55%
Description of interest payment				Interest is payable monthly, quarterly, annually or at maturity depending on the terms of the note.
Weighted average market interest rate of Secured notes payable		8.49%		8.49%		8.37%
Principal amount outstanding under Series I Secured notes		$ 24,728,000		$ 24,728,000		$ 28,047,000
Amortization of deferred financing and issuance costs		$ 81,000	$ 134,000	211,000	$ 301,000
Future expected amortization of deferred financing costs				$ 390,000
Minimum maturity period of secured notes	6 months
Maximum maturity period of secured notes	7 years
Amortizatoin period of deferred financing cost				6 years
Conditions for proceed from issuance of debenture				(1) payment of commissions on sales of L Bonds, (2) payment of offering expenses, (3) purchase of life insurance policies, (4) payment of premiums on life insurance policies, (5) payment of principal and interest on L Bonds, (6) payment of portfolio operations expenses, and (7) general working capital.

L Bonds (Formerly Renewable S47

L Bonds (Formerly Renewable Secured Debentures)) (Details) - Renewable Secured Debentures [Member]	Jun. 30, 2015USD ($)
Summary of future contractual maturities of L Bonds
2,015	$ 48,082,000
2,016	67,120,000
2,017	43,051,000
2,018	31,012,000
2,019	14,342,000
Thereafter	22,703,000
Total	226,310,000
Summary of amortization of deferred financing costs of L Bonds
2,015	243,000
2,016	1,229,000
2,017	1,520,000
2,018	1,450,000
2,019	612,000
Thereafter	1,258,000
Total	$ 6,312,000

L Bonds (Formerly Renewable S48

L Bonds (Formerly Renewable Secured Debentures) (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jan. 09, 2015	Dec. 31, 2014
Renewable Secured Debentures (Textual)
Debentures offer for sale	$ 251,038,000		$ 251,038,000
Weighted average market interest rate of secured notes payable	7.08%		7.08%
Renewable Secured Debentures [Member]
Renewable Secured Debentures (Textual)
Debentures offer for sale	$ 250,000,000		$ 250,000,000		$ 1,000,000,000
Interest rates, minimum			4.25%
Interest rates, maximum			9.50%
Description of interest payment			Interest is payable monthly, annually or at maturity depending on the terms of the debenture.
Weighted average market interest rate of secured notes payable	7.27%		7.27%			7.45%
Amount outstanding under L Bonds	$ 226,310,000		$ 226,310,000			$ 186,377,000
Amortization of deferred issuance costs	$ 1,366,000	$ 908,000	2,340,000	$ 1,755,000
Future expected amortization of deferred financing costs			$ 6,312,000
Maturity period of debentures, Minimum			6 months
Maturity period of debentures, Maximum			7 years
Conditions for proceed from issuance of debenture			(1) payment of commissions on sales of L Bonds, (2) payment of offering expenses, (3) purchase of life insurance policies, (4) payment of premiums on life insurance policies, (5) payment of principal and interest on L Bonds, (6) payment of portfolio operations expenses, and (7) general working capital.
Publicly registered L Bond offering			$ 1,000,000,000
Minimum increments			$ 25,000

Convertible, Redeemable Prefe49

Convertible, Redeemable Preferred Stock (Details) - USD ($)	Sep. 02, 2012	Jul. 31, 2011	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Convertible Preferred Stock (Textual)
Exercise price of warrants					$ 12.50
Exercise period					3 years
Maturity period of warrant					3 years
Conversion of Series A preferred stock into common stock, description					One share of common stock for every 40 shares of Series A Preferred Stock purchased.
Preferred stock redemption terms					The Company may redeem the Series A preferred shares at a price equal to 110% of their liquidation preference ($7.50 per share) at any time.
Preferred stock, liquidation preference per share			$ 7.50		$ 7.50
Redemption price of preferred shares			$ 7.50		$ 7.50
Series A preferred stock outstanding			2,746,000		2,746,000
Gross consideration from convertible preferred stock					$ 20,560,000
Series A preferred stock issuance costs							$ 2,838,000
Warrant outstanding			$ 431,954		$ 431,954		$ 431,954
Weighted average remaining life of warrants outstanding					1 year 11 months 5 days		2 years 5 months 5 days
Accrued preferred dividend			514,000		$ 514,000
Percentage of unredeemed shares redeemed one year after issuance					33.00%
Percentage of unredeemed shares redeemed two year after issuance					66.00%
Percentage of unredeemed shares redeemed three year after issuance					100.00%
Redeemed shares of Series A preferred stock					182,000
Minimum gross proceeds from common stock offering					$ 5,000,000
Maximum offering price of common stock					$ 11
Fair value of outstanding warrants attached to Series A preferred stock					$ 428,000
Term of redemption of warrants prior to expiration					The Company may redeem outstanding warrants prior to their expiration, at a price of $0.01 per share upon 30 days written notice to the investors at any time after (i) the Company has completed a registration of its common stock with the SEC and (ii) the volume of weighted-average sale price per share of common stock equals or exceeds $14.00 per share for ten consecutive trading days ending on the third business day prior to proper notice of such redemption.
Declared and accrued dividends			$ 495,000	$ 638,000	$ 1,032,000	$ 1,276,000
Preferred stock issued in lieu of cash dividend			21,000	28,000	48,000	54,000
Cash dividend rate, per share					$ 7
Initial public offering [Member]
Convertible Preferred Stock (Textual)
Convertible preferred stock, shares issued upon conversion			678,000		678,000
Conversion of stock, shares converted into common stock					508,000
Series A 10 % convertible Preferred Stock [Member]
Convertible Preferred Stock (Textual)
Company offering shares of convertible redeemable preferred stock		3,333,333
Series A preferred stock shares sold for cash	3,278,000
Consideration received on sale of Series A preferred stock	$ 24,582,000
Series A preferred stock shares issued in conversion of dividends					324,000
Series A preferred stock value issued in conversion of dividends					$ 2,271,000
Offering price of series A preferred stock			$ 7.50		$ 7.50
Series A preferred stock, Dividend rate					10.00%
Conversion term for series A preferred stock					Each share has the right to convert into 0.75 shares of the Company's common stock.
Convertible preferred stock, shares issued upon conversion			678,000		678,000
Conversion of stock, shares converted into common stock					508,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Current:
Federal	$ (182,000)		$ 141,000
State	(64,000)		40,000
Total current tax expense (benefit)	(246,000)		181,000
Deferred:
Federal	(670,000)	$ (1,106,000)	984,000	$ (1,909,000)
State	(261,000)	(211,000)	268,000	(363,000)
Total deferred tax expense (benefit)	(931,000)	(1,317,000)	1,252,000	(2,272,000)
Total income tax expense (benefit)	$ (1,176,643)	$ (1,316,712)	$ 1,432,728	$ (2,271,570)

Income Taxes (Detail Textual)

Income Taxes (Detail Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes (Textual)
Federal net operating loss carryforwards	$ 537,000		$ 537,000
Current income taxes	$ (246,000)		$ 181,000

Common Stock (Details)

Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 23, 2015	Sep. 24, 2014	Jun. 24, 2014	Jun. 30, 2015	Dec. 31, 2014
Common Stock (Textual)
Common stock, par value				$ 0.001	$ 0.001
Reverse stock split			The company shall enact a reverse split of the common stock such that for every two (2) shares of common stock issued and outstanding immediately prior to the effective date shall, automatically and without any action on the part of the respective holders thereof, be combined and converted into one (1) share of common stock.
GWG (Member)
Common Stock (Textual)
Restricted Common stock issued	60,000	800,000
Common stock, par value	$ 9.70	$ 12.50
Net proceeds		$ 8.6

Stock Incentive Plan (Details)

Stock Incentive Plan (Details)	6 Months Ended
	Jun. 30, 2015shares
Outstanding stock options
Beginning Balance	1,000,101
Granted during the year	245,800
Vested during the year
Exercised during the year	(27,667)
Forfeited during the year	(50,333)
Ending Balance	1,167,901
Vested [Member]
Outstanding stock options
Beginning Balance	314,288
Granted during the year	53,500
Vested during the year	44,592
Exercised during the year	(27,667)
Forfeited during the year	(2,250)
Ending Balance	382,463
Un-vested [Member]
Outstanding stock options
Beginning Balance	685,813
Granted during the year	192,300
Vested during the year	(44,592)
Exercised during the year
Forfeited during the year	(48,083)
Ending Balance	785,438

Stock Incentive Plan (Details T

Stock Incentive Plan (Details Textual) - USD ($)	Mar. 27, 2013	Sep. 30, 2014	Jun. 30, 2015
Stock Incentive Plan (Textual)
Number of shares issued to employees, officers and directors			245,800
Options vesting period			3 years
Forfeited during the year			(50,333)
Compensation expense related to un-vested options not yet recognized			$ 642,000
Compensation expense related to un-vested options, period of recognition			3 years
Ownership Percentage			10.00%
Compensation Expense in 2015			$ 185,000
Compensation Expense in 2016			229,000
Compensation Expense in 2017			189,000
Compensation Expense in 2018			$ 39,000
Exercised during the year			(27,667)
Maximum [Member]
Stock Incentive Plan (Textual)
Exercise Price			$ 10.18
Minimum [Member]
Stock Incentive Plan (Textual)
Exercise Price			$ 8.20
Common Stock [Member]
Stock Incentive Plan (Textual)
Number of shares issued to employees, officers and directors			991,401
Number of options vested			443,381
Others [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Exercise Price			$ 10.25
Others [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Exercise Price			$ 6.73
2013 Stock Incentive Plan [Member]
Stock Incentive Plan (Textual)
Number of shares issuable	2,000,000
Stock based compensation, Method used			The annual volatility rate is based on the standard deviation of the average continuously compounded rate of return of five selected comparable companies over the previous 52 weeks.
Expected volatility rate			17.03%
2013 Stock Incentive Plan [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Stock option period	10 years
2013 Stock Incentive Plan [Member] | Employee Stock Option [Member]
Stock Incentive Plan (Textual)
Maximum number of shares for an employee		53,000
Employee granting right purchase of common stock		318,000
Number of options vested		159,000
Exercise Price		$ 12.50
Options vesting period		1 year
2013 Stock Incentive Plan [Member] | Common Stock [Member]
Stock Incentive Plan (Textual)
Maximum number of shares for an employee	400,000
Forfeited during the year			113,499
Forfeited during the year, Percent			15.00%
Exercised during the year			28,001

Commitments (Details)

Commitments (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)ft²	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)ft²	Jun. 30, 2014USD ($)
Commitments (Textual)
Office space in square feet | ft²	11,695		11,695
Rent expenses	$ 55,000	$ 49,000	$ 122,000	$ 101,000
Minimum lease payments			$ 70,000

Contingencies (Details)

Contingencies (Details) - Jun. 30, 2015 - USD ($)	Total
Contingencies (Textual)
Loaned to Opportunity Finance, LLC	$ 1,000,000
Repayments of loan	$ 177,000

Guarantees of Secured Debt (Det

Guarantees of Secured Debt (Details) - USD ($)	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 38,198,189	$ 36,190,527	$ 30,662,704	$ 23,059,955	$ 28,083,299	$ 33,449,793
Restricted cash	7,923,190		4,296,053
Policy benefits receivable	2,500,000		1,750,000
Investment in life settlements, at fair value	301,498,527		282,883,010
Other assets	$ 6,623,561		$ 3,478,762
Investment in subsidiaries
TOTAL ASSETS	$ 356,743,467		$ 323,070,529
LIABILITIES
Revolving credit facility	65,011,048		72,161,048
Series I Secured notes	24,347,531		27,616,578
L Bonds	223,118,514		182,782,884
Interest payable	11,593,220		11,128,519
Accounts payable and other accrued expenses	2,071,879		1,718,009
Deferred taxes, net	6,525,336		5,273,555
TOTAL LIABILITIES	$ 332,667,528		$ 300,680,593
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital
Convertible preferred stock	$ 20,559,823		$ 20,527,866
Common stock	5,933		5,870
Additional paid-in capital	16,900,193		16,257,686
Accumulated deficit	(13,390,010)		(14,401,486)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	24,075,939		22,389,936
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	356,743,467		323,070,529
Parent [Member]
ASSETS
Cash and cash equivalents	$ 37,814,528	34,762,097	$ 30,446,473	22,305,910	26,466,468	32,711,636
Restricted cash
Policy benefits receivable
Investment in life settlements, at fair value
Other assets	$ 2,688,215		$ 1,673,728
Investment in subsidiaries	222,479,390		185,636,417
TOTAL ASSETS	$ 262,982,133		$ 217,756,618
LIABILITIES
Revolving credit facility
Series I Secured notes
L Bonds	$ 223,118,514		$ 182,782,884
Interest payable	7,967,900		6,598,250
Accounts payable and other accrued expenses	1,294,444		711,993
Deferred taxes, net	6,525,336		5,273,555
TOTAL LIABILITIES	$ 238,906,194		$ 195,366,682
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital
Convertible preferred stock	$ 20,559,823		$ 20,527,866
Common stock	5,933		5,870
Additional paid-in capital	16,900,193		16,257,686
Accumulated deficit	(13,390,010)		(14,401,486)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	24,075,939		22,389,936
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	262,982,133		217,756,618
Guarantor Sub [Member]
ASSETS
Cash and cash equivalents	233,553	1,278,378	216,231	$ 754,045	$ 1,616,831	$ 738,157
Restricted cash	$ 185,000		$ 82,500
Policy benefits receivable
Investment in life settlements, at fair value			$ 0
Other assets	$ 1,730,651		1,777,534
Investment in subsidiaries	248,566,916		215,124,779
TOTAL ASSETS	$ 250,716,120		$ 217,201,044
LIABILITIES
Revolving credit facility
Series I Secured notes	$ 24,347,531		$ 27,616,578
L Bonds
Interest payable	$ 3,374,563		$ 3,513,615
Accounts payable and other accrued expenses	$ 664,744		$ 434,433
Deferred taxes, net
TOTAL LIABILITIES	$ 28,386,838		$ 31,564,626
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital	$ 222,329,282		$ 185,636,418
Convertible preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	$ 222,329,282		$ 185,636,418
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	250,716,120		$ 217,201,044
Non-Guarantor Sub [Member]
ASSETS
Cash and cash equivalents	150,108	$ 150,052
Restricted cash	7,738,190		$ 4,213,553
Policy benefits receivable	2,500,000		1,750,000
Investment in life settlements, at fair value	301,498,527		282,883,010
Other assets	$ 2,204,695		$ 27,500
Investment in subsidiaries
TOTAL ASSETS	$ 314,091,520		$ 288,874,063
LIABILITIES
Revolving credit facility	$ 65,011,048		$ 72,161,048
Series I Secured notes
L Bonds
Interest payable	$ 250,757		$ 1,016,654
Accounts payable and other accrued expenses	$ 112,691		$ 571,583
Deferred taxes, net
TOTAL LIABILITIES	$ 65,374,496		$ 73,749,285
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital	$ 248,717,024		$ 215,124,778
Convertible preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	$ 248,717,024		$ 215,124,778
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 314,091,520		$ 288,874,063
Eliminations [Member]
ASSETS
Cash and cash equivalents
Restricted cash
Policy benefits receivable
Investment in life settlements, at fair value
Other assets
Investment in subsidiaries	$ (471,046,306)		$ (400,761,196)
TOTAL ASSETS	$ (471,046,306)		$ (400,761,196)
LIABILITIES
Revolving credit facility
Series I Secured notes
L Bonds
Interest payable
Accounts payable and other accrued expenses
Deferred taxes, net
TOTAL LIABILITIES
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital	$ (471,046,306)		$ (400,761,196)
Convertible preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	$ (471,046,306)		$ (400,761,196)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ (471,046,306)		$ (400,761,196)

Guarantees of Secured Debt (D58

Guarantees of Secured Debt (Details 1) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
REVENUE
Origination and servicing income
Gain on life settlements, net	$ 8,473,886	$ 5,484,889	$ 25,257,295	$ 11,001,094
Interest and other income	90,380	6,380	139,676	13,747
TOTAL REVENUE	$ 8,564,266	$ 5,491,269	$ 25,396,971	$ 11,014,841
EXPENSES
Origination and servicing fees
Employee compensation and benefits	$ 2,144,725	$ 1,178,819	$ 3,872,642	$ 2,147,564
Legal and professional fees	642,931	419,337	1,166,184	826,339
Interest expense	7,322,347	6,608,043	14,498,881	12,934,591
Other expenses	1,881,321	1,188,479	3,415,060	1,865,784
TOTAL EXPENSES	11,991,324	9,394,678	22,952,767	17,774,278
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	$ (3,427,058)	$ (3,903,409)	$ 2,444,204	$ (6,759,437)
EQUITY IN INCOME OF SUBSIDIARY
NET INCOME BEFORE INCOME TAXES	$ (3,427,058)	$ (3,903,409)	$ 2,444,204	$ (6,759,437)
INCOME TAX EXPENSE	(1,176,643)	(1,316,712)	1,432,728	(2,271,570)
NET LOSS	$ (2,250,415)	$ (2,586,697)	$ 1,011,476	$ (4,487,867)	$ (5,962,909)
Parent [Member]
REVENUE
Origination and servicing income
Gain on life settlements, net
Interest and other income	$ 17,480	$ 6,000	$ 25,023	$ 12,929
TOTAL REVENUE	$ 17,480	$ 6,000	$ 25,023	$ 12,929
EXPENSES
Origination and servicing fees
Employee compensation and benefits	$ 1,605,795	$ 664,495	$ 2,911,596	$ 1,255,079
Legal and professional fees	351,507	375,243	828,858	723,106
Interest expense	5,781,796	4,475,461	11,031,758	8,691,989
Other expenses	1,104,826	767,096	2,056,188	1,106,635
TOTAL EXPENSES	8,843,924	6,282,295	16,828,400	11,776,809
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(8,826,444)	(6,276,295)	(16,803,377)	(11,763,880)
EQUITY IN INCOME OF SUBSIDIARY	(5,399,386)	2,372,886	(19,247,582)	5,004,443
NET INCOME BEFORE INCOME TAXES	(3,427,058)	(3,903,409)	2,444,204	(6,759,437)
INCOME TAX EXPENSE	(1,176,643)	(1,316,712)	1,432,728	(2,271,570)
NET LOSS	(2,250,415)	(2,586,697)	1,011,476	(4,487,867)
Guarantor Sub [Member]
REVENUE
Origination and servicing income	$ 661,264	$ 342,850	$ 1,018,750	$ 1,308,906
Gain on life settlements, net
Interest and other income	$ 430	$ 362	$ 6,880	$ 169,976
TOTAL REVENUE	$ 661,694	$ 343,212	$ 1,025,630	$ 1,478,882
EXPENSES
Origination and servicing fees
Employee compensation and benefits	$ 538,930	$ 514,324	$ 961,046	$ 892,485
Legal and professional fees	291,424	44,094	337,326	103,233
Interest expense	684,879	793,702	1,458,965	1,572,269
Other expenses	732,243	408,883	1,302,036	734,138
TOTAL EXPENSES	2,247,476	1,761,003	4,059,373	3,302,125
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(1,585,782)	(1,417,791)	(3,033,743)	(1,823,243)
EQUITY IN INCOME OF SUBSIDIARY	(6,985,112)	3,790,677	(22,281,216)	6,827,686
NET INCOME BEFORE INCOME TAXES	$ 5,399,330	$ 2,372,886	$ 19,247,474	$ 5,004,443
INCOME TAX EXPENSE
NET LOSS	$ 5,399,330	$ 2,372,886	$ 19,247,474	$ 5,004,443
Non-Guarantor Sub [Member]
REVENUE
Origination and servicing income
Gain on life settlements, net	$ 8,473,886	$ 5,484,889	$ 25,257,295	$ 11,001,094
Interest and other income	72,470	18	107,773	63
TOTAL REVENUE	8,546,356	5,484,907	25,365,068	11,001,157
EXPENSES
Origination and servicing fees	$ 661,264	$ 342,850	$ 1,018,750	$ 1,308,906
Employee compensation and benefits
Legal and professional fees
Interest expense	$ 855,672	$ 1,338,880	$ 2,008,158	$ 2,670,333
Other expenses	44,252	12,500	56,836	194,232
TOTAL EXPENSES	1,561,188	1,694,230	3,083,744	4,173,471
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	$ 6,985,168	$ 3,790,667	$ 22,281,324	$ 6,827,686
EQUITY IN INCOME OF SUBSIDIARY
NET INCOME BEFORE INCOME TAXES	$ 6,985,168	$ 3,790,667	$ 22,281,324	$ 6,827,686
INCOME TAX EXPENSE
NET LOSS	$ 6,985,168	$ 3,790,667	$ 22,281,324	$ 6,827,686
Eliminations [Member]
REVENUE
Origination and servicing income	$ (661,264)	$ (342,850)	$ (1,018,750)	$ (1,308,906)
Gain on life settlements, net
Interest and other income				$ (169,221)
TOTAL REVENUE	$ (661,264)	$ (342,850)	$ (1,018,750)	(1,478,127)
EXPENSES
Origination and servicing fees	$ (661,264)	$ (342,850)	$ (1,018,750)	$ (1,308,906)
Employee compensation and benefits
Legal and professional fees
Interest expense
Other expenses				$ (169,221)
TOTAL EXPENSES	$ (661,264)	$ (342,850)	$ (1,018,750)	$ (1,478,127)
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
EQUITY IN INCOME OF SUBSIDIARY	$ 12,384,498	$ 6,163,563	$ 41,528,798	$ 11,832,129
NET INCOME BEFORE INCOME TAXES	$ 12,384,498	$ 6,163,563	$ 41,528,798	$ 11,832,129
INCOME TAX EXPENSE
NET LOSS	$ (12,384,498)	$ (6,163,563)	$ (41,528,798)	$ (11,832,129)

Guarantees of Secured Debt (D59

Guarantees of Secured Debt (Details 2) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,250,415)	$ (2,586,697)	$ 1,011,476	$ (4,487,867)	$ (5,962,909)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries
Gain on life settlements	$ 14,028,327	$ 10,852,425	$ 12,134,482	$ 22,211,338
Amortization of deferred financing and issuance costs	507,026	1,354,007	(42,004)	1,707,664
Deferred income taxes	(930,470)	(1,316,712)	1,251,781	(2,271,570)
Convertible, redeemable preferred stock issued for dividends	146,420	196,991	335,232	389,331
(Increase) in operating assets:
Policy benefits receivable	17,140,000	(300,000)	(750,000)	(300,000)
Other assets	225,376	697,073	356,549	948,919
Increase in operating liabilities:
Accounts payable and other accrued expenses	(1,333,241)	1,890,337	1,302,446	3,168,163
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(974,383)	(12,311,572)	(9,382,100)	(24,954,536)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life settlements	7,777,541	2,608,232	10,224,018	10,879,435
Proceeds from settlement of life settlements	132,388	68,500	3,742,983	68,500
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(7,645,153)	$ (2,539,732)	(6,481,035)	$ (10,810,935)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of revolving credit facility	(7,150,000)		(7,150,000)
Payments for redemption of Series I Secured notes	2,344,355	$ 670,621	3,617,544	$ 1,538,924
Proceeds from issuance of L Bonds	22,538,059	14,868,830	50,498,356	33,234,487
Payments for redemption and issuance of L Bonds	(6,134,935)	(4,393,523)	(13,013,057)	(9,322,411)
Proceeds from restricted cash	3,410,427	$ 43,330	(3,627,137)	$ 3,022,537
Issuance of common stock	(582,000)		(582,000)
Redemptions of convertible, redeemable preferred stock	$ (273,998)	$ (20,056)	$ (273,998)	$ (20,056)
Issuance of member capital
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	$ 10,627,198	$ 9,827,960	$ 23,398,620	$ 25,375,633
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,007,662	(5,023,344)	7,535,485	(10,389,838)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	36,190,527	28,083,299	30,662,704	33,449,793	33,449,793
END OF PERIOD	38,198,189	23,059,955	38,198,189	23,059,955	30,662,704
Parent [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(2,250,415)	(2,586,697)	1,011,476	(4,487,867)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	$ (5,399,386)	$ 2,372,886	$ (19,247,582)	$ 5,004,443
Gain on life settlements
Amortization of deferred financing and issuance costs	$ 1,685,700	$ 880,374	$ 1,729,175	$ 1,727,610
Deferred income taxes	(930,470)	(1,316,712)	1,251,781	(2,271,570)
Convertible, redeemable preferred stock issued for dividends	$ 146,420	$ 196,991	$ 335,232	$ 389,331
(Increase) in operating assets:
Policy benefits receivable
Other assets	$ (7,124,387)	$ (10,674,637)	$ (17,998,823)	$ (26,622,350)
Increase in operating liabilities:
Accounts payable and other accrued expenses	213,843	1,257,758	2,493,495	1,971,543
NET CASH FLOWS USED IN OPERATING ACTIVITIES	$ (13,658,695)	$ (14,615,809)	$ (30,425,246)	$ (34,297,746)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life settlements
Proceeds from settlement of life settlements
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of revolving credit facility
Payments for redemption of Series I Secured notes
Proceeds from issuance of L Bonds	$ 22,538,059	$ 14,868,830	$ 50,498,356	$ 33,234,487
Payments for redemption and issuance of L Bonds	$ (6,134,935)	$ (4,393,523)	$ (13,013,057)	$ (9,322,411)
Proceeds from restricted cash
Issuance of common stock	$ 582,000		$ 582,000
Redemptions of convertible, redeemable preferred stock	$ (273,998)	$ (20,056)	$ (273,998)	$ (20,056)
Issuance of member capital
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	$ 16,711,126	$ 10,455,251	$ 37,793,301	$ 23,892,020
NET INCREASE IN CASH AND CASH EQUIVALENTS	3,052,431	(4,160,558)	7,368,055	(10,405,723)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	34,762,097	26,466,468	30,446,473	32,711,636	32,711,636
END OF PERIOD	37,814,528	22,305,910	37,814,528	22,305,910	30,446,473
Guarantor Subsidiary [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	5,399,330	2,372,886	19,247,474	5,004,443
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	$ (6,985,112)	$ 3,790,677	$ (22,281,216)	$ 6,827,686
Gain on life settlements
Amortization of deferred financing and issuance costs	$ 80,928	$ 134,158	$ 211,116	$ 301,104
Deferred income taxes
Convertible, redeemable preferred stock issued for dividends
(Increase) in operating assets:
Policy benefits receivable
Other assets	$ (5,236,604)	$ (9,406,461)	$ (11,114,039)	$ (24,654,818)
Increase in operating liabilities:
Accounts payable and other accrued expenses	(509,444)	72,959	228,640	302,402
NET CASH FLOWS USED IN OPERATING ACTIVITIES	$ (7,250,902)	$ (10,617,135)	$ (13,708,025)	$ (25,874,555)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life settlements
Proceeds from settlement of life settlements
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of revolving credit facility
Payments for redemption of Series I Secured notes	$ (2,344,355)	$ (670,621)	$ (3,617,544)	$ (1,538,924)
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Proceeds from restricted cash	$ 1,677,500	$ (215,000)	$ (102,500)	$ 855,000
Issuance of common stock
Redemptions of convertible, redeemable preferred stock
Issuance of member capital	$ 6,872,932	$ 10,639,970	$ 17,445,391	$ 26,574,367
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	6,206,077	9,754,349	13,725,347	25,890,443
NET INCREASE IN CASH AND CASH EQUIVALENTS	(1,044,825)	(862,786)	17,322	15,888
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	1,278,378	1,616,831	216,231	738,157	738,157
END OF PERIOD	233,553	754,045	233,553	754,045	$ 216,231
Non-Guarantor Subsidiaries [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 6,985,168	$ 3,790,667	$ 22,281,324	$ 6,827,686
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries
Gain on life settlements	$ (14,028,327)	$ (10,852,425)	$ (12,134,482)	$ (22,211,338)
Amortization of deferred financing and issuance costs	$ (1,259,602)	$ 339,475	$ (1,982,295)	$ (321,050)
Deferred income taxes
Convertible, redeemable preferred stock issued for dividends
(Increase) in operating assets:
Policy benefits receivable	$ 17,140,000	$ (300,000)	$ (750,000)	$ (300,000)
Other assets
Increase in operating liabilities:
Accounts payable and other accrued expenses	$ (1,037,640)	$ 559,620	$ (1,419,689)	$ 894,218
NET CASH FLOWS USED IN OPERATING ACTIVITIES	7,799,599	(6,462,653)	(5,994,858)	(15,110,484)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life settlements	(7,777,541)	(2,608,232)	(10,224,018)	(10,879,435)
Proceeds from settlement of life settlements	132,388	68,500	3,742,983	68,500
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(7,645,153)	$ (2,539,732)	(6,481,035)	$ (10,810,935)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of revolving credit facility	$ (7,150,000)		$ (7,150,000)
Payments for redemption of Series I Secured notes
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Proceeds from restricted cash	$ 1,732,927	$ 258,330	$ (3,524,637)	$ 2,167,537
Issuance of common stock
Redemptions of convertible, redeemable preferred stock
Issuance of member capital	$ 5,262,683	$ 8,744,055	$ 11,310,922	$ 23,753,882
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(154,390)	$ 9,002,385	636,285	$ 25,921,419
NET INCREASE IN CASH AND CASH EQUIVALENTS	56		$ 150,108
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	150,052
END OF PERIOD	150,108		$ 150,108
Eliminations [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(12,384,498)	$ (6,163,563)	(41,528,798)	$ (11,832,129)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	$ 12,384,498	$ 6,163,563	$ 41,528,798	$ 11,832,129
Gain on life settlements
Amortization of deferred financing and issuance costs
Deferred income taxes
Convertible, redeemable preferred stock issued for dividends
(Increase) in operating assets:
Policy benefits receivable
Other assets	$ 12,135,615	$ 19,384,025	$ 28,756,313	$ 50,328,249
Increase in operating liabilities:
Accounts payable and other accrued expenses
NET CASH FLOWS USED IN OPERATING ACTIVITIES	$ 12,135,615	$ 19,384,025	$ 28,756,313	$ 50,328,249
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life settlements
Proceeds from settlement of life settlements
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of revolving credit facility
Payments for redemption of Series I Secured notes
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Proceeds from restricted cash
Issuance of common stock
Redemptions of convertible, redeemable preferred stock
Issuance of member capital	$ (12,135,615)	$ (19,384,025)	$ (28,756,313)	$ (50,328,249)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	$ (12,135,615)	$ (19,384,025)	$ (28,756,313)	$ (50,328,249)
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
END OF PERIOD

Guarantees of Secured Debt (D60

Guarantees of Secured Debt (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jan. 09, 2015
Guarantees of L Bonds (Textual)
Debentures offer for sale	$ 251,038,000
Maximum rate of return on equity fund amount	18.00%
Guarantees of L Bonds [Member]
Guarantees of L Bonds (Textual)
Debentures offer for sale	$ 250,000,000	$ 1,000,000,000

Concentrations (Details)

Concentrations (Details)	Jun. 30, 2015	Dec. 31, 2014
AXA Equitable [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance contracts with specific life insurance companies	14.06%	14.55%
John Hancock [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance contracts with specific life insurance companies	11.90%	11.48%

Concentrations (Details 1)

Concentrations (Details 1)	Jun. 30, 2015	Dec. 31, 2014
California [Member]
Summary of the number of insurance contracts held in specific states exceeding 10% of the total face value held by the Company
Percentage of insurance contracts held in specific states	27.07%	28.87%
Florida [Member]
Summary of the number of insurance contracts held in specific states exceeding 10% of the total face value held by the Company
Percentage of insurance contracts held in specific states	19.43%	18.56%

Concentrations (Details Textual

Concentrations (Details Textual)	6 Months Ended
	Jun. 30, 2015
Concentration (Textual)
Description of issuance contracts with specific life insurance companies and contracts held in specific states	Exceeding 10% of the total face value

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Subsequent Events (Textual)
Additional principal amount of L bonds	$ 11.1