GWG (GWGHQ) 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 10, 2016
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	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,980,190

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
A S S E T S
Cash and cash equivalents	$ 18,773,828	$ 34,425,105
Restricted cash	15,688,025	2,341,900
Investment in life insurance contracts, at fair value	477,585,100	356,649,715
Secured MCA advances	6,113,831
Life insurance contract benefits receivable	6,129,022
Other assets	3,131,107	2,461,045
TOTAL ASSETS	527,420,913	395,877,765
LIABILITIES
Senior credit facilities	63,699,385	63,279,596
Series I Secured Notes	17,553,307	23,287,704
L Bonds	379,858,737	276,482,796
Accounts payable	2,442,449	1,517,440
Interest payable	13,633,640	12,340,061
Other accrued expenses	645,343	1,060,786
Deferred taxes, net	3,242,586	1,763,968
TOTAL LIABILITIES	481,075,447	379,732,351
STOCKHOLDERS' EQUITY
CONVERTIBLE PREFERRED STOCK (par value $0.001; shares authorized 40,000,000; shares outstanding 2,649,665 and 2,781,735; liquidation preference of $19,872,000 and $20,863,000 on September 30, 2016 and December 31, 2015, respectively)	19,772,931	20,784,841
REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 100,000; shares outstanding 33,201; liquidation preference of $33,176,600 on September 30, 2016)	33,176,600
COMMON STOCK (par value $0.001: shares authorized 210,000,000; shares issued and outstanding 5,980,190 and 5,941,790 on September 30, 2016 and December 31, 2015)	5,980	5,942
Additional paid-in capital	15,226,449	17,149,391
Accumulated deficit	(21,836,494)	(21,794,760)
TOTAL STOCKHOLDERS' EQUITY	46,345,466	16,145,414
TOTAL LIABILITIES & EQUITY	$ 527,420,913	$ 395,877,765

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
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	2,649,665	2,781,735
Convertible preferred stock, liquidation preference	$ 19,872,000	$ 20,863,000
Redeemable preferred stock, par value	$ 0.001	$ 0.001
Redeemable preferred stock, shares authorized	100,000	100,000
Redeemable preferred stock, shares outstanding	33,201	33,201
Redeemable preferred stock, liquidation preference	$ 33,176,600
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	5,980,190	5,941,790
Common stock, shares outstanding	5,980,190	5,941,790

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
REVENUE
Gain on life insurance contracts, net	$ 13,509,755	$ 8,189,261	$ 51,606,815	$ 33,446,556
MCA income	286,225		654,441
Interest and other income	124,998	93,841	341,098	233,516
TOTAL REVENUE	13,920,978	8,283,102	52,602,354	33,680,072
EXPENSES
Interest expense	11,983,968	8,650,149	32,009,934	23,149,030
Employee compensation and benefits	2,912,463	2,308,246	8,450,168	6,180,886
Legal and professional fees	586,830	822,077	3,097,312	1,988,261
Other expenses	2,863,212	2,231,341	7,608,057	5,646,402
TOTAL EXPENSES	18,346,473	14,011,813	51,165,471	36,964,579
INCOME (LOSS) BEFORE INCOME TAXES	(4,425,495)	(5,728,711)	1,436,883	(3,284,507)
INCOME TAX EXPENSE (BENEFIT)	(1,428,130)	(2,097,633)	1,478,617	(664,905)
NET LOSS	(2,997,365)	(3,631,078)	(41,734)	(2,619,602)
Loss attributable to preferred shareholders	421,026	343,644	1,103,896	1,041,648
INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (2,576,339)	$ (3,287,434)	$ 1,062,162	$ (1,577,954)
NET INCOME (LOSS) PER SHARE
Basic	$ (0.50)	$ (0.61)	$ (0.01)	$ (0.44)
Diluted	$ (0.50)	$ (0.61)	$ 0.13	$ (0.44)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,978,322	5,937,320	5,962,938	5,894,956
Diluted	5,978,322	5,937,320	8,092,196	5,894,956

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,997,365)	$ (3,631,078)	$ (41,734)	$ (2,619,602)
Adjustments to reconcile net loss to net cash flows from operating activities:
Gain on life insurance contracts	(21,073,226)	(14,516,881)	(53,846,155)	(26,651,363)
Amortization of deferred financing and issuance costs	2,765,743	1,933,776	6,077,905	1,891,772
Deferred income taxes	(1,428,130)	(1,916,686)	1,478,617	(664,905)
Preferred stock dividends payable	333,565	173,993	663,614	509,225
(Increase) decrease in operating assets:
Life insurance contract benefits receivable	700,000	2,142,986	(6,129,022)	1,392,986
Other assets	419,836	(417,990)	(617,630)	(774,539)
Increase (decrease) in operating liabilities:
Due to related party	(80,949)		(182,730)
Accounts payable and other accrued expenses	(3,216,990)	2,534,269	(2,024,234)	3,836,715
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(24,577,516)	(13,697,611)	(54,621,369)	(23,079,711)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance contracts	(25,770,326)	(13,626,842)	(74,470,362)	(23,850,860)
Carrying value of matured life insurance contracts	1,078,889	80,000	7,381,132	3,822,983
Investment in Secured MCA advances	(1,965,896)		(7,613,310)
Proceeds from Secured MCA advances	220,911		1,246,703
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(26,436,422)	(13,546,842)	(73,455,837)	(20,027,877)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities	(10,761,048)		6,238,952	(7,150,000)
Payments for redemption of Series I Secured Notes	(541,275)	(890,586)	(6,264,018)	(4,508,130)
Proceeds from issuance of L Bonds	64,350,430	37,122,127	135,477,090	87,620,483
Payments for issuance and redemption of L Bonds	(14,373,447)	(19,363,047)	(37,036,922)	(32,376,104)
Proceeds from (increase in) restricted cash	(4,527,232)	651,630	(13,346,126)	(2,975,507)
Issuance of common stock	31,515		244,185	582,000
Proceeds from issuance of preferred stock	20,786,332		31,287,541
Payments for issuance and redemption of preferred stock	(2,556,859)	(21,187)	(4,174,773)	(295,185)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	52,408,416	17,498,937	112,425,929	40,897,557
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,394,478	(9,745,516)	(15,651,277)	(2,210,031)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	17,379,350	38,198,189	34,425,105	30,662,704
END OF PERIOD	18,773,828	28,452,673	18,773,828	28,452,673
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest and preferred dividends paid	11,516,000	5,385,000	28,683,000	18,529,000
Premiums paid	11,785,000	6,603,000	29,225,000	19,069,000
Stock-based compensation	162,000	176,000	213,000	208,000
Series I Secured Notes:
Conversion of accrued interest and commissions payable to principal	47,000	61,000	234,000	188,000
L Bonds:
Conversion of accrued interest and commissions payable to principal	854,000	491,000	1,515,000	929,000
Issuance of Series A Preferred Stock in lieu of cash dividends	170,000	172,000	509,000	507,000
Investment in life insurance contracts included in accounts payable	$ 1,603,000	$ 559,000	$ 1,603,000	$ 559,000

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2014	$ 22,389,936	$ 20,527,866	$ 5,870	$ 16,257,686	$ (14,401,486)
Begining balance, shares at Dec. 31, 2014		2,738,966	5,870,193
Net income/loss	(7,393,274)				(7,393,274)
Issuance of common stock	582,000		$ 60	$ 581,940
Issuance of common stock, shares			60,000
Series A Preferred Stock conversion to common stock		$ (115,973)	$ 12	$ 115,961
Series A Preferred Stock conversion to common stock, shares		(15,463)	11,597
Issuance of preferred stock	372,948	$ 372,948
Issuance of preferred stock, shares		58,232
Issuance of stock options	193,804			$ 193,804
Ending balance at Dec. 31, 2015	16,145,414	$ 20,799,841	$ 5,942	17,149,391	(21,794,760)
Ending balance, shares at Dec. 31, 2015		2,781,735	5,941,790
Net income/loss	(41,734)				(41,734)
Issuance of common stock	244,185		$ 36	244,149
Issuance of common stock, shares			36,450
Redemption of Series A Preferred Stock	(1,501,858)	$ (1,521,358)	$ 2	19,498
Redemption of Series A Preferred Stock, shares		(204,848)	1,950
Issuance of Series A Preferred Stock	509,448	$ 509,448
Issuance of Series A Preferred Stock, shares		72,778
Issuance of redeemable preferred stock	30,777,381	$ 33,176,600		(2,399,219)
Issuance of redeemable preferred stock, shares		33,201
Issuance of stock options	212,630			212,630
Ending balance at Sep. 30, 2016	$ 46,345,466	$ 52,949,531	$ 5,980	$ 15,226,449	$ (21,836,494)
Ending balance, shares at Sep. 30, 2016		2,682,866	5,980,190

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 GWG Holdings, Inc. and all of its subsidiaries are incorporated and organized in Delaware. Unless the context otherwise requires or we specifically so indicate, all references in these footnotes to “we,” “us,” “our,” “our Company,” “GWG,” or the “Company” refer to GWG Holdings, Inc. and its subsidiaries collectively and on a consolidated basis. References to the full names of particular entities, such as “GWG Holdings, Inc.” or “GWG Holdings,” are meant to refer only to the particular entity referenced. Use of Estimates Cash and Cash Equivalents Life Insurance Contracts Investments in Insurance Contracts We also recognize realized gain (revenue) from a life insurance contract upon one of the two following events: (1) our receipt of notice or verified mortality of the insured; or (2) our sale of the contract, filing of change-of-ownership forms and receipt of payment. In the case of mortality, the gain (or loss) we recognize is the difference between the contract benefits and the carrying values of the contract once we receive notice or verify the mortality of the insured. In the case of a contract sale, the gain (or loss) we recognize is the difference between the sale price and the carrying value of the contract on the date of our receipt of sale proceeds. In a case where our acquisition of a contract is not complete as of a reporting date, but we have nonetheless advanced direct costs and deposits for the acquisition, those costs and deposits are recorded as “other assets” on our balance sheet until the acquisition is complete and we secured title to the contract. On September 30, 2016 and December 31, 2015, a total of $34,000 and $31,000, respectively, of our “other assets” comprised direct costs and deposits that we advanced for contract acquisitions. Other Assets Deferred Financing and Issuance Costs Earnings (loss) per Share Recently Adopted Pronouncements On April 7, 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs Reclassification corresponding reduction to our liabilities, by approximately $2,288,000 as of December 31, 2015. There was no impact on our statements of operations in 2015, and

Restrictions on Cash

Restrictions on Cash	9 Months Ended
	Sep. 30, 2016
Restrictions on Cash [Abstract]
Restrictions on cash	(2) Restrictions on Cash Under the terms of our senior credit facilities (discussed in Notes 5 and 6), we are required to maintain collection and escrow accounts that are used to fund the acquisition of contracts, pay annual contract premiums, pay interest and other charges under the facility, and collect contract benefits. The agent for the lender authorizes the disbursements from these accounts. At September 30, 2016 and December 31, 2015, there was a balance of $15,688,000, and $2,342,000, respectively, in these restricted cash accounts.

Investment in Life Insurance Co

Investment in Life Insurance Contracts	9 Months Ended
	Sep. 30, 2016
Investment in Life Insurance Contracts [Abstract]
Investment in Life Insurance Contracts	(3) Investment in Life Insurance Contracts Life insurance contracts are valued based on unobservable inputs that are significant to their overall fair value. Changes in the fair value of these contracts are recorded as gain or loss on life insurance contracts, net of cash premiums paid on those contracts, in our consolidated statements of operations. Fair value is determined on a discounted cash flow basis that incorporates life expectancy assumptions derived from reports obtained from widely accepted life expectancy providers, assumptions relating to cost-of-insurance (premium) rates and other assumptions. The discount rate we apply incorporates current information about discount rate applied by other reporting companies owning portfolios of life insurance contracts, the discount rates observed in the life insurance secondary market, market interest rates, our credit exposure to the insurance companies that issued the life insurance contracts and management’s estimate of the risk premium a purchaser would require to receive the future cash flows derived from our portfolio as a whole. As a result of management’s analysis, discount rates of 11.07% and 11.09% were applied to our portfolio as of September 30, 2016 and December 31, 2015, respectively. We recog n i life i it i , t i e l r l t t wi t i l a t i e l Reconciliation of gain on life insurance contracts: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Change in fair value $ 21,073,000 $ 14,517,000 $ 53,846,000 $ 26,651,000 Premiums and other fees (11,784,000 ) (6,605,000 ) (29,225,000 ) (19,114,000 ) Contract maturities 4,221,000 277,000 26,986,000 25,909,000 Gain on life insurance contracts, net $ 13,510,000 $ 8,189,000 $ 51,607,000 $ 33,446,000 We currently estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance contracts in force for the next five years, assuming no mortalities, are as follows: Years Ending December 31, Premiums Servicing Premiums and Servicing Fees Three months ending December 31, 2016 $ 10,449,000 $ 188,000 $ 10,637,000 2017 43,155,000 750,000 43,905,000 2018 46,847,000 750,000 47,597,000 2019 50,813,000 750,000 51,563,000 2020 56,633,000 750,000 57,383,000 2021 63,222,000 750,000 63,972,000 $ 271,119,000 $ 3,938,000 $ 275,057,000 Management anticipates funding the premium payments estimated above with proceeds from our senior credit facilities, proceeds from additional debt and equity financing, and proceeds from maturities of life insurance contracts. The proceeds of these capital sources may also be used for the purchase, financing, and maintenance of additional life insurance contracts.

Fair Value Definition and Hiera

Fair Value Definition and Hierarchy	9 Months Ended
	Sep. 30, 2016
Fair Value Definition and Hierarchy [Abstract]
Fair Value Definition and Hierarchy	(4) Fair Value Definition and Hierarchy ASC 820, Fair Value Measurement 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 an 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 our portfolio of life insurance contracts is determined on a quarterly basis by our portfolio management committee, taking into consideration changes in discount rate assumptions, estimated premium payments and life expectancy estimate assumptions, as well as any changes in economic and other relevant conditions. The discount rate incorporates (i) current information about discount rate applied by other reporting companies owning portfolios of life insurance contracts, (ii) the discount rates observed in the life insurance secondary market, (iii) market interest rates, (iv) our credit exposure to the insurance company that issued the life insurance contract and (v) management’s estimate of the risk premium a purchaser would require to receive the future cash flows derived from our portfolio as a whole. These inputs are then used to estimate the discounted cash flows from the portfolio using the Model Actuarial Pricing System probabilistic portfolio price model, which estimates the cash flows using various mortality probabilities and scenarios. The valuation process includes a review by senior management as of each valuation date. We also engage a third-party expert to independently test the accuracy of the valuations using the inputs we provide on a quarterly basis. See Exhibit 99.1 filed herewith. The following table reconciles the beginning and ending fair value of our Level 3 investments in our portfolio of life insurance contracts for the periods ended September 30, as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Beginning balance $ 431,820,000 $ 301,499,000 $ 356,650,000 $ 282,883,000 Purchases 25,770,000 13,626,000 74,470,000 23,851,000 Maturities (carrying value) (1,078,000 ) (80,000 ) (7,381,000 ) (3,823,000 ) Net change in fair value 21,073,000 14,517,000 53,846,000 26,651,000 Ending balance (September 30) $ 477,585,000 $ 329,562,000 $ 477,585,000 $ 329,562,000 We periodically update the independent life expectancy estimates on the insured lives in our portfolio, other than insured lives covered under small face amount contracts (i.e., $1 million in face value benefits or less), on a continuous rotating three-year cycle. Accordingly, we update life expectancies for approximately one-twelfth of our portfolio each quarter. The following table summarizes the inputs utilized in estimating the fair value of our portfolio of life insurance contracts: As of September 30, As of December 31, Weighted-average age of insured, years 81.8 82.6 Weighted-average life expectancy, months 81.8 79.3 Average face amount per contract $ 2,035,000 $ 2,386,000 Discount rate 11.07 % 11.09 % These assumptions are, by their nature, inherently uncertain and the effect of changes in estimates may be significant. For example, if the life expectancy estimates were increased or decreased by four and eight months on each outstanding contract, and the discount rates were increased or decreased by 1% and 2%, while all other variables were held constant, the fair value of our investment in life insurance contracts would increase or (decrease) as summarized below: Change in Fair Value of the Investment in Life Insurance Contracts Change in life expectancy estimates minus 8 months minus 4 months plus 4 months plus 8 months September 30, 2016 $ 64,713,000 $ 32,215,000 $ (31,450,000 ) $ (62,258,000 ) December 31, 2015 $ 48,339,000 $ 24,076,000 $ (23,501,000 ) $ (46,482,000 ) Change in discount rate minus 2% minus 1% plus 1% plus 2% September 30, 2016 $ 50,097,000 $ 23,990,000 $ (22,096,000 ) $ (42,492,000 ) December 31, 2015 $ 35,024,000 $ 16,786,000 $ (15,485,000 ) $ (29,803,000 ) Other Fair Value Considerations The c a r i l r e i v l e p r e i n a t y l n s e im t i l t t e i o r t - t r m a t i t i l i r i t im t i l our i c N t n d i p i m t l w i t m i t e r e s t o h r y i a l t senior credit facilities l t i t a r g t mm i a e t l u p l i l m i T m a r g i t i r i t t t t p r t l i li i l l t l i z i t d t l t l t m t t h i l t im t i l Our wholly owned subsidiary GWG MCA Capital, Inc. (“GWG MCA”) participates in the merchant cash advance by directly advancing sums to merchants and lending money, on a secured basis, to companies that advance sums to merchants. Each quarter, we review the carrying value of these advances and loans, and determine if an impairment reserve is necessary. At September 30, 2016, one of our secured loans to Nulook Capital LLC was potentially impaired. The secured loan to Nulook Capital LLC had an outstanding balance of $3,215,000 and a loan loss reserve of $400,000 at September 30, 2016. We deem fair value to be the estimated collectible value on each loan or advance made from GWG MCA. Where we estimate the collectible amount to be less than the outstanding balance, we record a reserve for the difference. The following table summarizes outstanding warrants as of September 30, 2016: 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

Credit Facility - Autobahn Fund

Credit Facility - Autobahn Funding Company LLC	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Credit Facility - Autobahn Funding Company LLC	(5) Credit Facility – Autobahn Funding Company LLC Through our subsidiaries GWG DLP Funding II, LLC (“DLP II”) and GWG DLP Funding III, LLC (“DLP III”), we are party to a $105 million revolving senior credit facility with Autobahn Funding Company LLC (“Autobahn”), with a maturity date of June 30, 2018. The facility is governed by a Credit and Security Agreement (the “Agreement”), and DZ Bank AG Deutsche Zentral-Genossenschaftsbank (“DZ Bank”) acts as the agent for Autobahn under the Agreement. On September 14, 2016, we paid off the revolving senior credit facility in full with funds received from a new senior secured term loan with LNV Corporation as described in Note 6. Advances under the facility bear interest at a commercial paper rate of the lender at the time of the advance, or at the lender’s cost of borrowing plus 4.25%. We make interest payments on a monthly basis. The effective rate of interest was 5.42% at September 14, 2016 and 5.58% at December 31, 2015. The weighted-average effective interest rate, after excluding an unused line fee, was 5.46% and 5.42% for the three months ended September 30, 2016 and 2015, respectively, and 5.54% and 5.81% for the nine months ended September 30, 2016 and 2015, respectively. The amount outstanding under this facility was $0 and $65,011,000 at September 30, 2016 and December 31, 2015, respectively. GWG Holdings is a performance guarantor of the various obligations of GWG Life, LLC (“GWG Life”), as servicer, under the Agreement. Obligations under the facility are secured by our pledge of ownership in our life insurance contracts to DZ Bank through an arrangement under which Wells Fargo serves as a securities intermediary. The Agreement has certain financial (as described below) and non-financial covenants, and we were in compliance with these covenants at September 30, 2016 and December 31, 2015. We have 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, (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 of $15 million or above. Consolidated non-GAAP net income and non-GAAP tangible net worth as of and for the four quarters ended September 30, 2016, as calculated under the Agreement, was $33,877,000 and $149,361,000, respectively. Total funds available for additional borrowings under the facility at December 31, 2015, was $39,989,000. At September 30, 2016, the amount outstanding was $0 and there were no policies pledged to the facility.

Credit Facility - LNV Corporati

Credit Facility - LNV Corporation	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Credit Facility - LNV Corporation	(6) Credit Facility – LNV Corporation On September 14, 2016, we entered into a senior secured term loan with LNV Corporation (“LNV”) as lender through our subsidiary GWG DLP Funding IV, LLC (“DLP IV”) as borrower. The facility is governed by a Loan and Security Agreement (the “Loan Agreement”), with CLMG Corp. (“CLMG”) acting as administrative agent on behalf of the lender under the Loan Agreement. The Loan Agreement makes available a total of up to $172,300,000 in credit with a maturity date of September 14, 2026. Additional quarterly advances are available under the Loan Agreement. Interest will accrue on amounts borrowed under the agreement at an annual interest rate, determined as of each date of borrowing, equal to (A) the greater of 12-month LIBOR or the federal funds rate (as defined in the agreement) plus one-half of one percent per annum, plus (B) 5.75% per annum. Interest payments are made on a quarterly basis. At September 30, 2016, the amount outstanding under this facility was $71,250,000 and total funds available for additional borrowing, net of required reserve, was $76,629,000. Obligations under the facility are secured by a security interest in DLP IV’s assets, for the benefit of the lenders under the Loan Agreement, through an arrangement under which Wells Fargo serves as security intermediary. The Loan Agreement requires DLP IV to maintain a reserve account in an amount sufficient to pay 12 months of servicing, administrative and third party expenses identified under the Loan Agreement, and 12 months of debt service as calculated under the Loan Agreement. As of November 10, 2016, the amount set aside in the reserve account is $27,500,000. The Agreement has no financial covenants and certain non-financial reporting covenants, and we were in compliance with these covenants at September 30, 2016.

Series I Secured Notes

Series I Secured Notes	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Series I Secured Notes	(7) Series I Secured Notes Series I Secured Notes (“Notes”) are legal obligations of GWG Life and were privately offered and sold from August 2009 through June 2011. The Notes are secured by the assets of GWG Life and are subordinate to obligations under our senior credit facilities (see Notes 5 and 6). We are party to a Third Amended and Restated Note Issuance and Security Agreement dated November 1, 2011, as amended, under which GWG Life is obligor, GWG Holdings is guarantor, and Lord Securities Corporation serves as trustee of the GWG Life Trust (“Trust”). This agreement contains certain financial and non-financial covenants, and we were in compliance with these covenants at September 30, 2016 and December 31, 2015. The Notes were sold with original maturity dates ranging from six months to seven years, and with fixed interest rates varying from 5.65% to 9.55% depending on the term of the Note. The Notes have renewal features under which we may elect to permit their renewal, subject to the right of bondholders to elect to receive payment at maturity. Effective September 1, 2016, we no longer anticipate renewing the Notes. Interest on the Notes is payable monthly, quarterly, annually or at maturity depending on the election of the investor. At September 30, 2016 and December 31, 2015, the weighted-average interest rate of our Notes was 8.63% and 8.47%, respectively. The principal amount of Notes outstanding was $17,830,000 and $23,578,000 at September 30, 2016 and December 31, 2015, respectively. The difference between the amount outstanding on the Notes and the carrying amount on our balance sheet is due to netting of unamortized deferred issuance costs. Overall, interest expense includes amortization of deferred financing and issuance costs of $82,000 and $275,000 for the three and nine months ended September 30, 2016 and $49,000 and $260,000 for the three and nine months ended September 30, 2015. Future expected amortization of deferred financing costs is $277,000 in total over the next six years. Future contractual maturities of Notes payable and future amortization of their deferred financing costs at September 30, 2016 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Three months ending December 31 ,2016 $ 1,177,000 $ 5,000 2017 10,522,000 88,000 2018 2,401,000 49,000 2019 1,023,000 22,000 2020 1,766,000 55,000 Thereafter 941,000 58,000 $ 17,830,000 $ 277,000

L Bonds

L Bonds	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
L Bonds	(8) L Bonds Our L Bonds are legal obligations of GWG Holdings. Obligations under the L Bonds are secured by the assets of GWG Holdings and by GWG Life, as a guarantor, and are subordinate to the obligations under our senior credit facilities (see Notes 5 and 6). We began publicly offering and selling L Bonds in January 2012 under the name “Renewable Secured Debentures.” These debt securities were re-named “L Bonds” in January 2015. L Bonds are publicly offered and sold on a continuous basis under a registration statement permitting us to sell up to $1.0 billion in principal amount of L Bonds. We are party to an indenture governing the L Bonds dated October 19, 2011, as amended (“Indenture”), under which GWG Holdings is obligor, GWG Life is guarantor, and Bank of Utah serves as indenture trustee. The Indenture contains certain financial and non-financial covenants, and we were in compliance with these covenants at September 30, 2016 and December 31, 2015. Effective September 1, 2016, we discontinued the sales of 6-month and 1-year L Bonds. In addition, effective September 1, 2016, the L Bond interest rates changed to 5.50%, 6.25%, 7.50% and 8.50% for the 2-, 3-, 5- and 7-year L Bonds, respectively. The bonds have renewal features under which we may elect to permit their renewal, subject to the right of bondholders to elect to receive payment at maturity. Interest is payable monthly or annually depending on the election of the investor. At September 30, 2016 and December 31, 2015, the weighted-average interest rate of our L Bonds was 7.16% and 7.18%, respectively. The principal amount of L Bonds outstanding was $384,586,000 and $282,171,000 at September 30, 2016 and December 31, 2015, respectively. The difference between the amount of outstanding L Bonds and the carrying amount on our 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 $2,073,000 and $5,362,000 for the three and nine months ended September 30, 2016 and $1,892,000 and $4,232,000 for the three and nine months ended September 30, 2015. Future expected amortization of deferred financing costs as of September 30, 2016 is $11,622,000 in total over the next eight years. Future contractual maturities of L Bonds, and future amortization of their deferred financing costs, at September 30, 2016 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Three months ending December 31, 2016 $ 23,548,000 $ 115,000 2017 112,987,000 1,708,000 2018 101,130,000 3,106,000 2019 78,098,000 3,222,000 2020 19,291,000 784,000 Thereafter 49,532,000 2,687,000 $ 384,586,000 $ 11,622,000

Convertible Preferred Stock

Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2016
Convertible and Redeemable Preferred Stock/Common Stock [Abstract]
Convertible Preferred Stock	(9) Convertible Preferred Stock From July 2011 until September 2012, we privately offered shares of Series A Preferred Stock (“Series A”) of GWG Holdings at $7.50 per share. In the offering, we sold an aggregate of 3,278,000 shares for gross consideration of $24,582,000. Holders of Series A are entitled to cumulative dividends at the rate of 10% per annum, paid quarterly. Dividends on the Series A are included as interest expense in the statements of operations. Under certain circumstances described in the Certificate of Designation for the Series A, additional Series A shares may be issued in lieu of cash dividends at the rate of $7.00 per share. Holders of Series A are entitled to a liquidation preference equal to the stated value of their preferred shares (i.e., $7.50 per share) plus accrued but unpaid dividends. Holders of Series A may presently convert each share of their Series A into 0.75 shares of our common stock at the rate of $10.00 per share. As of September 30, 2016, we issued an aggregate of 447,000 shares of Series A in satisfaction of $3,129,000 in dividends on the Series A, and an aggregate of 696,000 shares of Series A were converted into 522,000 shares of our common stock. As of September 30, 2016, we had 2,650,000 Series A shares outstanding with respect to which we incurred aggregate issuance costs of $2,838,000, all of which is included as a component of additional paid-in capital. Purchasers of Series A in our offering received warrants to purchase an aggregate of 431,954 shares of our common stock at an exercise price of $12.50 per share. The grant date fair value of these warrants was $428,000. As of September 30, 2016 and December 31, 2015, none of these warrants were exercised, and the weighted-average remaining life of these warrants was 0.68 and 1.43 years, respectively. In September 2012, we completed a public offering of our common stock and, as a result, the Series A was reclassified from temporary equity to permanent equity. We may redeem Series A shares under the Certificate of Designation at a price equal to 110% of their liquidation preference ($7.50 per share) at any time. As of September 30, 2016, we have redeemed an aggregate of 277,000 shares of Series A.

Redeemable Preferred Stock

Redeemable Preferred Stock	9 Months Ended
	Sep. 30, 2016
Convertible and Redeemable Preferred Stock/Common Stock [Abstract]
Redeemable Preferred Stock	(10) Redeemable Preferred Stock Beginning November 30, 2015, we began publicly offering up to 100,000 shares of Redeemable Preferred Stock (“RPS”) at $1,000 per share. Holders of RPS are entitled to cumulative dividends at the rate of 7% per annum, paid monthly. Dividends on the RPS are included as interest expense in the statements of operations. Under certain circumstances described in the Certificate of Designation for the RPS, additional shares of RPS may be issued in lieu of cash dividends. The RPS ranks senior to our common stock and pari passu with our Series A, and entitles its holders to a liquidation preference equal to the stated value per share (i.e., $1,000) plus accrued but unpaid dividends. Holders of RPS may presently convert their RPS into our common stock at a conversion price equal to the volume-weighted average price of our common stock for the 20 trading days immediately prior to the date of conversion, subject to a minimum conversion price of $15.00 and in an aggregate amount limited to 15% of the stated value of RPS originally purchased by such holder from us and Holders of RPS may request that we redeem their RPS at a price equal to their liquidation preference at a price equal to their stated value plus accrued but unpaid dividends, less an applicable redemption fee, if any. Nevertheless, the Certificate of Designation for RPS permits us to decline requests for redemption in certain circumstances. Subject to certain restrictions and conditions, we may also redeem shares of RPS without a redemption fee upon a holder’s death, total disability or bankruptcy. In addition, after one year from the date of original issuance, we may, at our option, call and redeem shares of RPS at a price equal to their liquidation preference. As of September 30, 2016, we had sold 33,201 shares of RPS for aggregate gross consideration of $33,177,000, and incurred approximately $2,399,000 of selling costs related to the sale of those shares.

GWG MCA Capital, Inc - 9% Prefe

GWG MCA Capital, Inc - 9% Preferred Stock	9 Months Ended
	Sep. 30, 2016
Convertible and Redeemable Preferred Stock/Common Stock [Abstract]
GWG MCA Capital, Inc - 9% Preferred Stock	(11) GWG MCA Capital, Inc - 9% Preferred Stock Beginning March 31, 2016, GWG MCA began privately offering up to 2,000,000 shares of GWG MCA 9% Preferred Stock (“MCA Preferred”) at $10.00 per share. Holders of MCA Preferred are entitled to cumulative dividends at a rate of 9% per annum, paid monthly. Dividends on the MCA Preferred are included as interest expense in the statements of operations. As of September 30, 2016, a total of 7,155 shares of MCA Preferred had been sold for aggregate gross consideration of $72,000 and approximately $7,000 of selling costs related to the sale of these shares were incurred. Holders of MCA Preferred were redeemed as of September 30, 2016 at the stated value of their shares plus accrued but unpaid dividends.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Taxes [Abstract]
Income Taxes	(12) Income Taxes We had a current income tax liability of $0 as of both September 30, 2016 and December 31, 2015. The components of current and deferred income tax expense for the three and nine months ended September 30, 2016 and 2015, respectfully, consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Income tax provision (benefit): Current: Federal $ - $ (141,000 ) $ - $ - State $ - $ (40,000 ) $ - $ - Total current tax expense (benefit) - (181,000 ) - - Deferred: Federal $ (1,082,000 ) $ (1,488,000 ) $ 1,121,000 $ (504,000 ) State $ (346,000 ) $ (429,000 ) $ 358,000 $ (161,000 ) Total deferred tax expense (benefit) (1,428,000 ) (1,917,000 ) 1,479,000 (665,000 ) Total income tax expense (benefit) (1,428,000 ) (2,098,000 ) 1,479,000 (665,000 ) We provided a valuation allowance against the deferred tax asset related to a note receivable, which was charged-off for financial reporting purposes, because we believe that, when realized for tax purposes, it will result in a capital loss that will not be utilized because we have no expectation of generating a capital gain within the applicable carryforward period. Therefore, we do not believe that it is “more likely than not” that the deferred tax asset will be realized. We l i l ti l l o w n i t d f e r t l t t t b i it l n r a t wit t o t tl m a u i l i i t m n i A t n t c t u A w v e t ti e r a t i i t a i wi t t a l i b l w i w d o l i v t i i “ m l i l t h n t t r w i l l i z The primary differences between the September 30, 2016 effective tax rate and the statutory federal rate are the accrual of non-deductible preferred stock dividend expense of $2,153,000, 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 contracts and revenue recognition with respect to the mark-to-market of our life insurance portfolio.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2016
Convertible and Redeemable Preferred Stock/Common Stock [Abstract]
Common Stock	(13) Common Stock In September 2014, we consummated an initial public offering of our common stock resulting in the sale of 800,000 shares of common stock at $12.50 per share, and net proceeds of approximately $8.6 million after the payment of underwriting commissions, discounts and expense reimbursements. In connection with this offering, we listed our common stock on the Nasdaq Capital Market under the ticker symbol “GWGH.” On June 24, 2015 we issued 60,000 restricted common shares at $9.70 per share, determined by the closing market price on the date of grant, to a vendor as payment for services to be rendered over three years. The cost of these shares is amortized over a 12-month period. On March 17, 2016, we issued an additional 6,500 restricted common shares at an average price of $7.16 per share, determined by the closing market price on the date of grant, to this same vendor for additional services provided to us. On April 25, 2016, we issued 25,000 restricted shares of common stock at $6.25 per share, determined by the closing market price on the date of grant, to a vendor as a form of payment for services the vendor is providing to us, which is expensed in the current period.

Stock Incentive Plan

Stock Incentive Plan	9 Months Ended
	Sep. 30, 2016
Stock Incentive Plan [Abstract]
Stock Incentive Plan	(14) Stock Incentive Plan We adopted our GWG Holdings 2013 Stock Incentive Plan in March 2013. The Compensation Committee of our Board of Directors administers the plan. Incentives under the plan may be granted incentive stock options and non-statutory stock options; stock appreciation rights; stock awards; restricted stock; restricted stock units; and performance shares. Eligible participants include officers and employees of GWG Holdings and its subsidiaries, members of our Board of Directors, and consultants. 2,000,000 common shares are presently issuable under the plan. Stock Options – Through September 30, 2016, we issued stock options for 1,237,000 shares of common stock to employees, officers, and directors under the plan. Options for 687,000 shares have vested, and the remaining options are scheduled to vest over three years. The options were issued with an exercise price between $6.35 and $10.18 for those beneficially owning more than 10% of our common stock, and between $6.00 and $10.25 for all others, which is equal to the estimated market price of the shares on the date of grant using Black-Scholes binomial option pricing model. The expected annualized volatility used in the Black-Scholes model valuation of options issued during the period was 25.5%. 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. A forfeiture rate of 15% is based on historical information and expected future trend. As of September 30, 2016, stock options for 415,000 shares were forfeited and stock options for 28,000 shares were exercised. Outstanding stock options: Vested Un-vested Total Balance as of December 31, 2014 314,288 685,813 1,000,101 Granted during the year 79,500 273,700 353,200 Vested during the year 238,999 (238,999 ) - Exercised during the year (27,667 ) - (27,667 ) Forfeited during the year (121,417 ) (150,602 ) (272,019 ) Balance as of December 31, 2015 483,703 569,912 1,053,615 Granted during the year 22,500 239,948 262,448 Vested during the year 187,473 (187,473 ) - Forfeited during the year (6,676 ) (72,824 ) (79,500 ) Balance as of September 30, 2016 687,000 549,563 1,236,563 Compensation expense related to un-vested options not yet recognized is $420,000. We expect to recognize this compensation expense over the next three years ($14,000 in 2016, $240,000 in 2017, $109,000 in 2018, and $57,000 in 2019). Stock Appreciation Rights (SARs) - On September 19, 2016 we issued SARs for 145,388 shares of the common stock to employees. The strike price of the SARs was $8.76, which was equal to the market price of the common stock at the close of business on September 19, 2016. 56,358 of the SARs were vested as of September 30, 2016, on which date the market price of the common stock was $8.82. A forfeiture rate of 15% was used in calculating our liability for the SARs. Outstanding Stock Appreciation Rights: Vested Un-vested Total Balance as of December 31, 2015 - - - Granted during the year 56,358 89,030 145,388 Vested during the year 56,358 89,030 145,388 Forfeited during the year - - - Balance as of September 30, 2016 56,358 89,030 145,388 A liability for Stock Appreciation Rights - Compensation Expense was recorded on September 30, 2016 in the amount of $3,381 and Compensation Expense was charged for the same amount.

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Sep. 30, 2016
Net Income Per Common Share [Abstract]
Net Income per Common Share	(15) Net Income per Common Share We have outstanding Series A, as described in Note 9. The Series A are dilutive to our net income per common share calculation for the nine-month period ended September 30, 2016. They are anti-dilutive for the three-month period ended September 30, 2016 and for both three and nine-month periods ended September 30, 2015. We also issued warrants to purchase common stock in conjunction with the sale of Series A (see Note 9). Both those warrants and our vested stock options are anti-dilutive for both three and nine-month periods ended September 30, 2016 and 2015 and have not been included in the fully diluted net loss per common share calculation. We issued RPS (see Note 10). The RPS is dilutive for the nine-month period ended September 30, 2016 and anti-dilutive for the three-month period ended September 30, 2016.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies [Abstract]
Commitments	(16) Commitments We are party to an office lease with U.S. Bank National Association as the landlord. On September 1, 2015, we entered into an amendment to our original lease that expanded the leased space to 17,687 square feet and extended the term through August 31, 2025. Under the amended lease, we are obligated to pay base rent plus common area maintenance and a share of building operating costs. Rent expenses under these lease arrangements were $102,000 and $71,000 for the three months ended September 30, 2016 and 2015, respectively, and $306,000 and $193,000 for the nine months ended September 30, 2016 and 2015, respectively. Minimum lease payments under the amended lease are as follows: Three months ending December 31, 2016 $ 44,000 2017 178,000 2018 185,000 2019 191,000 2020 198,000 2021 204,000 2022 210,000 2023 217,000 2024 223,000 2025 230,000 2026 38,000 $ 1,918,000

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies [Abstract]
Contingencies	(17) Contingencies Litigation – In the normal course of business, we are involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on our financial position, results of operations or cash flows.

Guarantee of L Bonds

Guarantee of L Bonds	9 Months Ended
	Sep. 30, 2016
Guarantee of L Bonds [Abstract]
Guarantee of L Bonds	(18) Guarantee of L Bonds We are publicly offering and selling L Bond under a registration statement declared effective by the SEC, as described in Note 8. Our obligations under the L Bonds are secured by substantially all the assets of GWG Holdings, a pledge of all the common stock held individually by our largest stockholders, and by a guarantee and corresponding grant of a security interest in substantially all the assets of GWG Life. As a guarantor, GWG Life has fully and unconditionally guaranteed the payment of principal and interest on the L Bonds. Substantially all of GWG’s life insurance contracts are held by wholly owned subsidiaries of GWG Life: DLP III, DLP IV and the Trust. GWG Life’s equity ownership in these subsidiaries serves as collateral for the L Bond obligation. The life insurance contracts held by DLP III and DLP IV are not direct collateral for the L Bond obligations but do serve as direct collateral for the senior credit facilities. The consolidating financial statements are presented in lieu of separate financial statements and other related disclosures of the subsidiary guarantor 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 GWG Holdings or GWG Life, the guarantor subsidiary, to obtain funds from its subsidiaries by dividend or loan, except as provided herein. A majority of insurance contracts we own are subject to a collateral arrangement with LNV described in Note 6. Under this arrangement, collection and escrow accounts are used to fund premiums for the insurance contracts and to pay interest and other charges under the senior credit facility. The following represents consolidating financial information as of September 30, 2016 and December 31, 2015, with respect to the financial position, and for the three and nine months ended September 30, 2016 and 2015, with respect to results of operations and cash flows of GWG Holdings and its subsidiaries. The parent column presents the financial information of GWG Holdings, the primary obligor for 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 III, DLP IV and the Trust under the equity method. The non-guarantor subsidiaries column presents the financial information of all non-guarantor subsidiaries, including DLP III, DLP IV and the Trust. Condensed Consolidating Balance Sheets September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 Restricted cash - 4,438,025 11,250,000 - 15,688,025 Investment in life insurance contracts, at fair value - - 477,585,100 - 477,585,100 Secured MCA advances - - 6,113,831 - 6,113,831 Life insurance contract benefits receivable - - 6,129,022 - 6,129,022 Other assets 4,706,121 1,224,386 54,726 (2,854,126 ) 3,131,107 Investment in subsidiaries 422,185,881 429,441,035 - (851,626,916 ) - TOTAL ASSETS $ 440,204,753 $ 439,476,291 $ 502,220,911 $ (854,481,042 ) $ 527,420,913 L I A B I L I T I E S & S T O C K H O L D E R S' E Q U I T Y (D E F I C I T) LIABILITIES Senior credit facilities $ - $ - $ 63,699,385 $ - $ 63,699,385 Series I Secured Notes - 17,553,307 - - 17,553,307 L Bonds 379,858,737 - - - 379,858,737 Notes payable to related parties - - 2,700,000 (2,700,000 ) - Accounts payable 699,507 99,705 1,643,237 - 2,442,449 Interest payable 9,798,735 3,588,954 400,077 (154,126 ) 13,633,640 Other accrued expenses 259,722 351,896 33,725 - 645,343 Deferred taxes, net 3,242,586 - - - 3,242,586 TOTAL LIABILITIES 393,859,287 21,593,862 68,476,424 (2,854,126 ) 481,075,447 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 417,882,429 433,744,487 (851,626,916 ) - Convertible preferred stock 19,772,931 - - - 19,772,931 Redeemable preferred stock 33,176,600 - - - 33,176,600 Common stock 5,980 - - - 5,980 Additional paid-in capital 15,226,449 - - - 15,226,449 Accumulated deficit (21,836,494 ) - - - (21,836,494 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 46,345,466 417,882,429 433,744,487 (851,626,916 ) 46,345,466 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 440,204,753 $ 439,476,291 $ 502,220,911 $ (854,481,042 ) $ 527,420,913 December 31, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 32,292,162 $ 1,982,722 $ 150,221 $ - $ 34,425,105 Restricted cash - 2,102,257 239,643 - 2,341,900 Investment in life insurance contracts, at fair value - - 356,649,715 - 356,649,715 Other assets 1,742,074 688,071 30,900 - 2,461,045 Investment in subsidiaries 269,886,254 291,295,951 - (561,182,205 ) - TOTAL ASSETS $ 303,920,490 $ 296,069,001 $ 357,070,479 $ (561,182,205 ) $ 395,877,765 L I A B I L I T I E S & S T O C K H O L D E R S' E Q U I T Y (D E F I C I T) LIABILITIES Senior credit facilities $ - $ (1,000,000 ) $ 64,279,596 $ - $ 63,279,596 Series I Secured Notes - 23,287,704 - - 23,287,704 L Bonds 276,482,796 - - - 276,482,796 Accounts payable 280,988 157,217 1,079,235 - 1,517,440 Interest payable 8,529,959 3,544,626 265,476 - 12,340,061 Other accrued expenses 717,365 343,421 - - 1,060,786 Deferred taxes, net 1,763,968 - - - 1,763,968 TOTAL LIABILITIES 287,775,076 26,332,968 65,624,307 - 379,732,351 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 269,736,033 291,446,172 (561,182,205 ) - Convertible preferred stock 20,784,841 - - - 20,784,841 Common stock 5,942 - - - 5,942 Additional paid-in capital 17,149,391 - - - 17,149,391 Accumulated deficit (21,794,760 ) - - - (21,794,760 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 16,145,414 269,736,033 291,446,172 (561,182,205 ) 16,145,414 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 303,920,490 $ 296,069,001 $ 357,070,479 $ (561,182,205 ) $ 395,877,765 Condensed Consolidating Statements of Operations For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance contracts, net - - 51,606,815 - 51,606,815 MCA income - - 654,441 - 654,441 Interest and other income 181,828 31,137 282,259 (154,126 ) 341,098 TOTAL REVENUE 181,828 44,554 52,543,515 (167,543 ) 52,602,354 EXPENSES Origination and servicing fees - - 13,417 (13,417 ) - Interest expense 25,477,320 1,856,909 4,829,831 (154,126 ) 32,009,934 Employee compensation and benefits 4,894,006 3,151,107 405,055 - 8,450,168 Legal and professional fees 1,642,252 1,308,959 146,101 - 3,097,312 Other expenses 4,241,825 2,197,133 1,169,099 - 7,608,057 TOTAL EXPENSES 36,255,403 8,514,108 6,563,503 (167,543 ) 51,165,471 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (36,073,575 ) (8,469,554 ) 45,980,012 - 1,436,883 EQUITY IN INCOME OF SUBSIDIARY 37,510,458 46,497,731 - (84,008,189 ) - INCOME BEFORE INCOME TAXES 1,436,883 38,028,177 45,980,012 (84,008,189 ) 1,436,883 INCOME TAX EXPENSE 1,478,617 - - - 1,478,617 NET INCOME (LOSS) $ (41,734 ) $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ (41,734 ) For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 2,022,774 $ - $ (2,022,774 ) $ - Gain on life settlements, net - - 33,446,556 - 33,446,556 Interest and other income 38,944 61,694 132,878 - 233,516 TOTAL REVENUE 38,944 2,084,468 33,579,434 (2,022,774 ) 33,680,072 EXPENSES Origination and servicing fees - - 2,022,774 (2,022,774 ) - Interest expense 18,011,890 1,984,356 3,152,784 - 23,149,030 Employee compensation and benefits 4,671,183 1,509,703 - - 6,180,886 Legal and professional fees 1,427,388 560,873 - - 1,988,261 Other expenses 3,251,606 2,297,063 97,733 - 5,646,402 TOTAL EXPENSES 27,362,067 6,351,995 5,273,291 (2,022,774 ) 36,964,579 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (27,323,123 ) (4,267,527 ) 28,306,143 - (3,284,507 ) EQUITY IN INCOME OF SUBSIDIARY 24,038,616 28,305,979 - (52,344,595 ) - NET INCOME (LOSS) BEFORE INCOME TAXES (3,284,507 ) 24,038,452 28,306,143 (52,344,595 ) (3,284,507 ) INCOME TAX BENEFIT (664,905 ) - - - (664,905 ) NET INCOME (LOSS) $ (2,619,602 ) $ 24,038,452 $ 28,306,143 $ (52,344,595 ) $ (2,619,602 ) For the three months ended September 30, 2016 Parent Guarantor Subsidiary Non- Guarantor Subsidiaries Eliminations Consolidated REVENUE Gain on life insurance contracts, net - - 13,509,755 - 13,509,755 MCA income - - 286,225 - 286,225 Interest and other income 75,808 30,126 83,313 (64,249 ) 124,998 TOTAL REVENUE 75,808 30,126 13,879,293 (64,249 ) 13,920,978 EXPENSES Interest expense 9,747,128 554,938 1,746,151 (64,249 ) 11,983,968 Employee compensation and benefits 1,718,683 1,038,058 155,722 - 2,912,463 Legal and professional fees 263,917 297,804 25,109 - 586,830 Other expenses 1,464,498 803,106 595,608 - 2,863,212 TOTAL EXPENSES 13,194,226 2,693,906 2,522,590 (64,249 ) 18,346,473 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (13,118,418 ) (2,663,780 ) 11,356,703 - (4,425,495 ) EQUITY IN INCOME OF SUBSIDIARY 8,692,923 11,361,329 - (20,054,252 ) - INCOME (LOSS) BEFORE INCOME TAXES (4,425,495 ) 8,697,549 11,356,703 (20,054,252 ) (4,425,495 ) INCOME TAX BENEFIT (1,418,130 ) - - - (1,428,130 ) NET INCOME (LOSS) $ (2,997,365 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (2,997,365 ) For the three months ended September 30, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 1,004,024 $ - $ (1,004,024 ) $ - Gain on life settlements, net - - 8,189,261 - 8,189,261 Interest and other income 13,922 54,813 25,106 - 93,841 TOTAL REVENUE 13,922 1,058,837 8,214,367 (1,004,024 ) 8,283,102 EXPENSES Origination and servicing fees - - 1,004,024 (1,004,024 ) - Interest expense 6,980,132 525,391 1,144,626 - 8,650,149 Employee compensation and benefits 1,759,589 548,657 - - 2,308,246 Legal and professional fees 598,530 223,547 - - 822,077 Other expenses 1,195,417 995,026 40,898 - 2,231,341 TOTAL EXPENSES 10,533,668 2,292,621 2,189,548 (1,004,024 ) 14,011,813 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (10,519,746 ) (1,233,784 ) 6,024,819 - (5,728,711 ) EQUITY IN INCOME OF SUBSIDIARY 4,791,035 6,024,762 - (10,815,797 ) - NET INCOME (LOSS) BEFORE INCOME TAXES (5,728,711 ) 4,790,978 6,024,819 (10,815,797 ) (5,728,711 ) INCOME TAX BENEFIT (2,097,633 ) - - - (2,097,633 ) NET INCOME (LOSS) $ (3,631,078 ) $ 4,790,978 $ 6,024,819 $ (10,815,797 ) $ (3,631,078 ) Condensed Consolidating Statements of Cash Flows For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ (41,734 ) $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ (41,734 ) Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (37,510,459 ) (46,497,730 ) - 84,008,189 - Gain on life insurance contracts - - (53,846,155 ) - (53,846,155 ) Amortization of deferred financing and issuance costs 5,982,802 (1,364,614 ) 1,459,717 - 6,077,905 Deferred income taxes 1,478,617 - - - 1,478,617 Preferred stock dividends payable 663,614 - - - 663,614 (Increase) in operating assets: Life insurance contract benefits receivable - - (6,129,022 ) (6,129,022 ) Other assets (114,885,990 ) (92,168,163 ) - 206,436,523 (617,630 ) Increase (decrease) in operating liabilities: Due to related party (2,867,225 ) (15,505 ) 2,700,000 - (182,730 ) Accounts payable and accrued expenses 2,396,503 2,889,525 (7,310,262 ) - (2,024,234 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (144,783,872 ) (99,128,310 ) (17,145,710 ) 206,436,523 (54,621,369 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance contracts - - (74,470,362 ) - (74,470,362 ) Carrying value of matured life insurance contracts - - 7,381,132 - 7,381,132 Investment in Secured MCA advances - - (7,613,310 ) - (7,613,310 ) Proceeds from Secured MCA advances - - 1,246,703 - 1,246,703 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (73,455,837 ) - (73,455,837 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on Senior Credit Facilities - - 6,238,952 - 6,238,952 Payments for redemption of Series I Secured Notes - (6,264,018 ) - - (6,264,018 ) Proceeds from issuance of L Bonds 135,477,090 - - - 135,477,090 Payments for redemption and issuance of L Bonds (37,036,922 ) - - - (37,036,922 ) Proceeds from (increase in) restricted cash - (2,335,768 ) (11,010,358 ) - (13,346,126 ) Issuance of common stock 244,185 - - - 244,185 Proceeds from issuance of preferred stock 31,215,986 - 71,555 - 31,287,541 Payments for issuance and redemption of preferred stock (4,095,878 ) - (78,895 ) - (4,174,773 ) Issuance of member capital - 110,118,219 96,318,304 (206,436,523 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 125,804,461 101,518,433 91,539,558 (206,436,523 ) 112,425,929 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (18,979,411 ) 2,390,123 938,011 - (15,651,277 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (2,619,602 ) $ 24,038,452 $ 28,306,143 $ (52,344,595 ) $ (2,619,602 ) Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (24,038,617 ) (28,305,978 ) - 52,344,595 - Gain on life settlements - - (26,651,363 ) - (26,651,363 ) Amortization of deferred financing and issuance costs 2,832,487 260,455 (1,201,170 ) - 1,891,772 Deferred income taxes (664,905 ) - - - (664,905 ) Convertible, redeemable preferred dividends payable 509,225 - - - 509,225 (Increase) decrease in operating assets: Policy benefits receivable - - 1,392,986 1,392,986 Other assets (40,145,769 ) (26,745,888 ) - 66,117,118 (774,539 ) Increase (decrease) in operating liabilities: Accounts payable and accrued expenses 4,503,624 123,222 (790,131 ) - 3,836,715 NET CASH FLOWS USED IN OPERATING ACTIVITIES (30,425,246 ) (30,629,737 ) 1,056,465 66,117,118 (23,079,711 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (23,850,860 ) - (23,850,860 ) Carrying value of matured life insurance contracts - - 3,822,983 - 3,822,983 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (20,027,877 ) - (20,027,877 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of senior credit facilities - - (7,150,000 ) - (7,150,000 ) Payments for redemption of Series I Secured Notes - (4,508,130 ) - - (4,508,130 ) Proceeds from issuance of L Bonds 87,620,483 - - - 87,620,483 Payments for redemption and issuance of L Bonds (32,376,104 ) - - - (32,376,104 ) Payments from restricted cash - (2,306,300 ) (669,207 ) - (2,975,507 ) Issuance of common stock 582,000 - - - 582,000 Payments for redemption preferred stock (295,185 ) - - - (295,185 ) Issuance of member capital - 39,176,335 26,940,783 (66,117,118 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 55,531,194 32,361,905 19,121,576 (66,117,118 ) 40,897,557 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,092,363 ) 1,732,168 150,164 - (2,210,031 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 30,446,473 216,231 - - 30,662,704 END OF THE PERIOD $ 26,354,110 $ 1,948,399 $ 150,164 $ - $ 28,452,673 For the three months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ (2,997,365 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (2,997,365 ) Adjustments to reconcile net loss to net cash flows from operating activities: (Equity) of subsidiaries (8,692,924 ) (11,361,328 ) - 20,054,252 - Gain on life insurance contracts - - (21,073,226 ) - (21,073,226 ) Amortization of deferred financing and issuance costs 2,072,879 81,849 611,015 - 2,765,743 Deferred income taxes (1,428,130 ) - - - (1,428,130 ) Preferred stock dividends payable 333,565 - - - 333,565 (Increase) in operating assets: Life insurance contract benefits receivable - - 700,000 - 700,000 Other assets (54,428,152 ) (54,272,589 ) - 109,120,577 419,836 Increase (decrease) in operating liabilities: Due to related party (64,249 ) (16,700 ) - - (80,949 ) Accounts payable and other accrued expenses 155,980 2,172,227 (5,545,197 ) - (3,216,990 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (65,048,396 ) (54,698,992 ) (13,950,705 ) 109,120,577 (24,577,516 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance contracts - - (25,770,326 ) - (25,770,326 ) Carrying value of matured life insurance contracts - - 1,078,889 - 1,078,889 Investment in Secured MCA advances - - (1,965,896 ) (1,965,896 ) Proceeds from Secured MCA advances - - 220,911 - 220,911 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (26,436,422 ) - (26,436,422 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of Senior Credit Facilities - - (10,761,048 ) (10,761,048 ) Payments for redemption of Series I Secured Notes - (541,275 ) - - (541,275 ) Proceeds from issuance of L Bonds 64,350,430 - - - 64,350,430 Payments for redemption and issuance of L Bonds (14,373,447 ) - - - (14,373,447 ) Proceeds from (increase in) restricted cash - 486,283 (5,013,515 ) - (4,527,232 ) Issuance of member capital - 52,304,345 56,816,232 (109,120,577 ) - Issuance of common stock 31,515 - - - 31,515 Proceeds from issuance of preferred stock 20,786,332 - - - 20,786,332 Payments for issuance and redemption of preferred stock (2,485,304 ) - (71,555 ) - (2,556,859 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 68,309,526 52,249,353 40,970,114 (109,120,577 ) 52,408,416 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,261,130 (2,449,639 ) 582,987 - 1,394,478 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 10,051,621 6,822,484 505,245 - 17,379,350 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 For the three months ended Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (3,631,078 ) $ 4,790,978 $ 6,024,819 $ (10,815,797 ) $ (3,631,078 ) Adjustments to reconcile net loss to net cash flows from operating activities: (Equity) of subsidiaries (4,791,035 ) (6,024,762 ) - 10,815,797 - Gain on life settlements - - (14,516,881 ) - (14,516,881 ) Amortization of deferred financing and issuance costs 1,103,312 49,339 781,125 - 1,933,776 Deferred income taxes (1,916,686 ) - - - (1,916,686 ) Convertible, redeemable preferred stock dividends payable 173,993 - - - 173,993 (Increase) decrease in operating assets: Policy benefits receivable - - 2,142,986 - 2,142,986 Other assets (22,146,946 ) (15,631,849 ) - 37,360,805 (417,990 ) Increase (decrease) in operating liabilities: Accounts payable and other accrued expenses 2,010,129 (105,418 ) 629,558 - 2,534,269 NET CASH FLOWS USED IN OPERATING ACTIVITIES (29,198,311 ) (16,921,712 ) (4,938,393 ) 37,360,805 (13,697,611 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (13,626,842 ) - (13,626,842 ) Carrying value of matured life insurance contracts - - 80,000 - 80,000 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (13,546,842 ) - (13,546,842 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments for redemption of Series I Secured Notes - (890,586 ) - - (890,586 ) Proceeds from issuance of L Bonds 37,122,127 - - - 37,122,127 Payments for redemption and issuance of L Bonds (19,363,047 ) - - - (19,363,047 ) Proceeds (payments) from restricted cash - (2,203,800 ) 2,855,430 - 651,630 Issuance of member capital - 21,730,944 15,629,861 (37,360,805 ) - Payments for redemption preferred stock (21,187 ) - - - (21,187 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 17,737,893 18,636,558 18,485,291 (37,360,805 ) 17,498,937 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (11,460,418 ) 1,714,846 56 - (9,745,516 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 37,814,528 233,553 150,108 - 38,198,189 END OF THE PERIOD $ 26,354,110 $ 1,948,399 $ 150,164 $ - $ 28,452,673

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2016
Concentrations [Abstract]
Concentrations	(19) Concentrations We purchase life insurance contracts written by life insurance companies having investment grade ratings by independent rating agencies. As a result, there may be concentrations of contracts with certain 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 us. Life insurance company September 30, December 31, 2016 2015 AXA Equitable 14.3 % 14.0 % John Hancock 13.0 % 12.7 % Lincoln National 11.5 % * Transamerica 10.1 % * * percentage does not exceed 10% of the total face value. The following summarizes the number of insurance contracts insuring the lives of persons living in specific states exceeding 10% of the total face value held by us: State of Residence September 30, December 31, 2016 2015 California 21.1 % 25.2 % Florida 19.0 % 20.0 %

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent events	(20) Subsequent events Subsequent to September 30, 2016, two policies covering two individual matured. The life insurance contract benefits of these policies were $3,240,000 and we recorded realized gains of $2,539,000 on these policies. Subsequent to September 30, 2016, we have issued approximately $6,911,000 in additional principal amount of L Bonds, and 7,350 shares of RPS for gross consideration of approximately $7,350,000. On October 28, 2016, DLP IV completed the closing of the second of two initial advances contemplated under a Loan and Security Agreement with LNV. At this closing, a total of $92,900,000 in loan proceeds were obtained by DLP IV, of which approximately $16,250,000 was used to fund a reserve account required under the Loan and Security Agreement.

Nature of Business and Summar27

Nature of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
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 insurance contracts	Life Insurance Contracts Investments in Insurance Contracts We also recognize realized gain (revenue) from a life insurance contract upon one of the two following events: (1) our receipt of notice or verified mortality of the insured; or (2) our sale of the contract, filing of change-of-ownership forms and receipt of payment. In the case of mortality, the gain (or loss) we recognize is the difference between the contract benefits and the carrying values of the contract once we receive notice or verify the mortality of the insured. In the case of a contract sale, the gain (or loss) we recognize is the difference between the sale price and the carrying value of the contract on the date of our receipt of sale proceeds. In a case where our acquisition of a contract is not complete as of a reporting date, but we have nonetheless advanced direct costs and deposits for the acquisition, those costs and deposits are recorded as “other assets” on our balance sheet until the acquisition is complete and we secured title to the contract. On September 30, 2016 and December 31, 2015, a total of $34,000 and $31,000, respectively, of our “other assets” comprised direct costs and deposits that we advanced for contract acquisitions.
Other assets	Other Assets
Deferred financing and issuance costs	Deferred Financing and Issuance Costs
Earnings (loss) per share	Earnings (loss) per Share
Recently adopted pronouncements	Recently Adopted Pronouncements On April 7, 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs
Reclassification	Reclassification corresponding reduction to our liabilities, by approximately $2,288,000 as of December 31, 2015. There was no impact on our statements of operations in 2015, and

Investment in Life Insurance 28

Investment in Life Insurance Contracts (Tables)	9 Months Ended
	Sep. 30, 2016
Investment in Life Insurance Contracts [Abstract]
Reconciliation of gain on life insurance contracts	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Change in fair value $ 21,073,000 $ 14,517,000 $ 53,846,000 $ 26,651,000 Premiums and other fees (11,784,000 ) (6,605,000 ) (29,225,000 ) (19,114,000 ) Contract maturities 4,221,000 277,000 26,986,000 25,909,000 Gain on life insurance contracts, net $ 13,510,000 $ 8,189,000 $ 51,607,000 $ 33,446,000
Estimated expected premium payments to maintain the above life insurance policies assuming no mortalities	Years Ending December 31, Premiums Servicing Premiums and Servicing Fees Three months ending December 31, 2016 $ 10,449,000 $ 188,000 $ 10,637,000 2017 43,155,000 750,000 43,905,000 2018 46,847,000 750,000 47,597,000 2019 50,813,000 750,000 51,563,000 2020 56,633,000 750,000 57,383,000 2021 63,222,000 750,000 63,972,000 $ 271,119,000 $ 3,938,000 $ 275,057,000

Fair Value Definition and Hie29

Fair Value Definition and Hierarchy (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Definition and Hierarchy [Abstract]
Reconciliation of investments in life insurance contracts	Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Beginning balance $ 431,820,000 $ 301,499,000 $ 356,650,000 $ 282,883,000 Purchases 25,770,000 13,626,000 74,470,000 23,851,000 Maturities (carrying value) (1,078,000 ) (80,000 ) (7,381,000 ) (3,823,000 ) Net change in fair value 21,073,000 14,517,000 53,846,000 26,651,000 Ending balance (September 30) $ 477,585,000 $ 329,562,000 $ 477,585,000 $ 329,562,000
Summary of inputs utilized in estimating the fair value of life insurance contracts	As of September 30, As of December 31, Weighted-average age of insured, years 81.8 82.6 Weighted-average life expectancy, months 81.8 79.3 Average face amount per contract $ 2,035,000 $ 2,386,000 Discount rate 11.07 % 11.09 %
Summary of change in fair value of the investment in life insurance contracts	Change in life expectancy estimates minus 8 months minus 4 months plus 4 months plus 8 months September 30, 2016 $ 64,713,000 $ 32,215,000 $ (31,450,000 ) $ (62,258,000 ) December 31, 2015 $ 48,339,000 $ 24,076,000 $ (23,501,000 ) $ (46,482,000 ) Change in discount rate minus 2% minus 1% plus 1% plus 2% September 30, 2016 $ 50,097,000 $ 23,990,000 $ (22,096,000 ) $ (42,492,000 ) December 31, 2015 $ 35,024,000 $ 16,786,000 $ (15,485,000 ) $ (29,803,000 )
Summary of outstanding warrants	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)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Future contractual maturities of series I secured notes payable and future amortization of their deferred financing costs	Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Three months ending December 31 ,2016 $ 1,177,000 $ 5,000 2017 10,522,000 88,000 2018 2,401,000 49,000 2019 1,023,000 22,000 2020 1,766,000 55,000 Thereafter 941,000 58,000 $ 17,830,000 $ 277,000

L Bonds (Tables)

L Bonds (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of future contractual maturities of L Bonds and future amortization of their deferred financing costs	Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Three months ending December 31 ,2016 $ 23,548,000 $ 115,000 2017 112,987,000 1,708,000 2018 101,130,000 3,106,000 2019 78,098,000 3,222,000 2020 19,291,000 784,000 Thereafter 49,532,000 2,687,000 $ 384,586,000 $ 11,622,000

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Taxes [Abstract]
Components of current and deferred income tax expense	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2016 2015 2016 2015 Income tax provision (benefit): Current: Federal $ - $ (141,000 ) $ - $ - State $ - $ (40,000 ) $ - $ - Total current tax expense (benefit) - (181,000 ) - - Deferred: Federal $ (1,082,000 ) $ (1,488,000 ) $ 1,121,000 $ (504,000 ) State $ (346,000 ) $ (429,000 ) $ 358,000 $ (161,000 ) Total deferred tax expense (benefit) (1,428,000 ) (1,917,000 ) 1,479,000 (665,000 ) Total income tax expense (benefit) (1,428,000 ) (2,098,000 ) 1,479,000 (665,000 )

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2016
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 79,500 273,700 353,200 Vested during the year 238,999 (238,999 ) - Exercised during the year (27,667 ) - (27,667 ) Forfeited during the year (121,417 ) (150,602 ) (272,019 ) Balance as of December 31, 2015 483,703 569,912 1,053,615 Granted during the year 22,500 239,948 262,448 Vested during the year 187,473 (187,473 ) - Forfeited during the year (6,676 ) (72,824 ) (79,500 ) Balance as of September 30, 2016 687,000 549,563 1,236,563
Schedule of outstanding stock appreciation rights	Vested Un-vested Total Balance as of December 31, 2015 - - - Granted during the year 56,358 89,030 145,388 Vested during the year 56,358 89,030 145,388 Forfeited during the year - - - Balance as of September 30, 2016 56,358 89,030 145,388

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies [Abstract]
Schedule of minimum lease payments under the amendment lease	Three months ending December 31, 2016 $ 44,000 2017 178,000 2018 185,000 2019 191,000 2020 198,000 2021 204,000 2022 210,000 2023 217,000 2024 223,000 2025 230,000 2026 38,000 $ 1,918,000

Guarantee of L Bonds (Tables)

Guarantee of L Bonds (Tables)	9 Months Ended
	Sep. 30, 2016
Guarantee of L Bonds [Abstract]
Condensed consolidating balance sheets	September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 Restricted cash - 4,438,025 11,250,000 - 15,688,025 Investment in life insurance contracts, at fair value - - 477,585,100 - 477,585,100 Secured MCA advances - - 6,113,831 - 6,113,831 Life insurance contract benefits receivable - - 6,129,022 - 6,129,022 Other assets 4,706,121 1,224,386 54,726 (2,854,126 ) 3,131,107 Investment in subsidiaries 422,185,881 429,441,035 - (851,626,916 ) - TOTAL ASSETS $ 440,204,753 $ 439,476,291 $ 502,220,911 $ (854,481,042 ) $ 527,420,913 L I A B I L I T I E S & S T O C K H O L D E R S' E Q U I T Y (D E F I C I T) LIABILITIES Senior credit facilities $ - $ - $ 63,699,385 $ - $ 63,699,385 Series I Secured Notes - 17,553,307 - - 17,553,307 L Bonds 379,858,737 - - - 379,858,737 Notes payable to related parties - - 2,700,000 (2,700,000 ) - Accounts payable 699,507 99,705 1,643,237 - 2,442,449 Interest payable 9,798,735 3,588,954 400,077 (154,126 ) 13,633,640 Other accrued expenses 259,722 351,896 33,725 - 645,343 Deferred taxes, net 3,242,586 - - - 3,242,586 TOTAL LIABILITIES 393,859,287 21,593,862 68,476,424 (2,854,126 ) 481,075,447 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 417,882,429 433,744,487 (851,626,916 ) - Convertible preferred stock 19,772,931 - - - 19,772,931 Redeemable preferred stock 33,176,600 - - - 33,176,600 Common stock 5,980 - - - 5,980 Additional paid-in capital 15,226,449 - - - 15,226,449 Accumulated deficit (21,836,494 ) - - - (21,836,494 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 46,345,466 417,882,429 433,744,487 (851,626,916 ) 46,345,466 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 440,204,753 $ 439,476,291 $ 502,220,911 $ (854,481,042 ) $ 527,420,913 December 31, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 32,292,162 $ 1,982,722 $ 150,221 $ - $ 34,425,105 Restricted cash - 2,102,257 239,643 - 2,341,900 Investment in life insurance contracts, at fair value - - 356,649,715 - 356,649,715 Other assets 1,742,074 688,071 30,900 - 2,461,045 Investment in subsidiaries 269,886,254 291,295,951 - (561,182,205 ) - TOTAL ASSETS $ 303,920,490 $ 296,069,001 $ 357,070,479 $ (561,182,205 ) $ 395,877,765 L I A B I L I T I E S & S T O C K H O L D E R S' E Q U I T Y (D E F I C I T) LIABILITIES Senior credit facilities $ - $ (1,000,000 ) $ 64,279,596 $ - $ 63,279,596 Series I Secured Notes - 23,287,704 - - 23,287,704 L Bonds 276,482,796 - - - 276,482,796 Accounts payable 280,988 157,217 1,079,235 - 1,517,440 Interest payable 8,529,959 3,544,626 265,476 - 12,340,061 Other accrued expenses 717,365 343,421 - - 1,060,786 Deferred taxes, net 1,763,968 - - - 1,763,968 TOTAL LIABILITIES 287,775,076 26,332,968 65,624,307 - 379,732,351 STOCKHOLDERS’ EQUITY (DEFICIT) Member capital - 269,736,033 291,446,172 (561,182,205 ) - Convertible preferred stock 20,784,841 - - - 20,784,841 Common stock 5,942 - - - 5,942 Additional paid-in capital 17,149,391 - - - 17,149,391 Accumulated deficit (21,794,760 ) - - - (21,794,760 ) TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 16,145,414 269,736,033 291,446,172 (561,182,205 ) 16,145,414 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 303,920,490 $ 296,069,001 $ 357,070,479 $ (561,182,205 ) $ 395,877,765
Condensed consolidating statements of operations	For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance contracts, net - - 51,606,815 - 51,606,815 MCA income - - 654,441 - 654,441 Interest and other income 181,828 31,137 282,259 (154,126 ) 341,098 TOTAL REVENUE 181,828 44,554 52,543,515 (167,543 ) 52,602,354 EXPENSES Origination and servicing fees - - 13,417 (13,417 ) - Interest expense 25,477,320 1,856,909 4,829,831 (154,126 ) 32,009,934 Employee compensation and benefits 4,894,006 3,151,107 405,055 - 8,450,168 Legal and professional fees 1,642,252 1,308,959 146,101 - 3,097,312 Other expenses 4,241,825 2,197,133 1,169,099 - 7,608,057 TOTAL EXPENSES 36,255,403 8,514,108 6,563,503 (167,543 ) 51,165,471 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (36,073,575 ) (8,469,554 ) 45,980,012 - 1,436,883 EQUITY IN INCOME OF SUBSIDIARY 37,510,458 46,497,731 - (84,008,189 ) - INCOME BEFORE INCOME TAXES 1,436,883 38,028,177 45,980,012 (84,008,189 ) 1,436,883 INCOME TAX EXPENSE 1,478,617 - - - 1,478,617 NET INCOME (LOSS) $ (41,734 ) $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ (41,734 ) For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 2,022,774 $ - $ (2,022,774 ) $ - Gain on life settlements, net - - 33,446,556 - 33,446,556 Interest and other income 38,944 61,694 132,878 - 233,516 TOTAL REVENUE 38,944 2,084,468 33,579,434 (2,022,774 ) 33,680,072 EXPENSES Origination and servicing fees - - 2,022,774 (2,022,774 ) - Interest expense 18,011,890 1,984,356 3,152,784 - 23,149,030 Employee compensation and benefits 4,671,183 1,509,703 - - 6,180,886 Legal and professional fees 1,427,388 560,873 - - 1,988,261 Other expenses 3,251,606 2,297,063 97,733 - 5,646,402 TOTAL EXPENSES 27,362,067 6,351,995 5,273,291 (2,022,774 ) 36,964,579 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (27,323,123 ) (4,267,527 ) 28,306,143 - (3,284,507 ) EQUITY IN INCOME OF SUBSIDIARY 24,038,616 28,305,979 - (52,344,595 ) - NET INCOME (LOSS) BEFORE INCOME TAXES (3,284,507 ) 24,038,452 28,306,143 (52,344,595 ) (3,284,507 ) INCOME TAX BENEFIT (664,905 ) - - - (664,905 ) NET INCOME (LOSS) $ (2,619,602 ) $ 24,038,452 $ 28,306,143 $ (52,344,595 ) $ (2,619,602 ) For the three months ended September 30, 2016 Parent Guarantor Subsidiary Non- Guarantor Subsidiaries Eliminations Consolidated REVENUE Gain on life insurance contracts, net - - 13,509,755 - 13,509,755 MCA income - - 286,225 - 286,225 Interest and other income 75,808 30,126 83,313 (64,249 ) 124,998 TOTAL REVENUE 75,808 30,126 13,879,293 (64,249 ) 13,920,978 EXPENSES Interest expense 9,747,128 554,938 1,746,151 (64,249 ) 11,983,968 Employee compensation and benefits 1,718,683 1,038,058 155,722 - 2,912,463 Legal and professional fees 263,917 297,804 25,109 - 586,830 Other expenses 1,464,498 803,106 595,608 - 2,863,212 TOTAL EXPENSES 13,194,226 2,693,906 2,522,590 (64,249 ) 18,346,473 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (13,118,418 ) (2,663,780 ) 11,356,703 - (4,425,495 ) EQUITY IN INCOME OF SUBSIDIARY 8,692,923 11,361,329 - (20,054,252 ) - INCOME (LOSS) BEFORE INCOME TAXES (4,425,495 ) 8,697,549 11,356,703 (20,054,252 ) (4,425,495 ) INCOME TAX BENEFIT (1,418,130 ) - - - (1,428,130 ) NET INCOME (LOSS) $ (2,997,365 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (2,997,365 ) For the three months ended September 30, 2015 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Origination and servicing income $ - $ 1,004,024 $ - $ (1,004,024 ) $ - Gain on life settlements, net - - 8,189,261 - 8,189,261 Interest and other income 13,922 54,813 25,106 - 93,841 TOTAL REVENUE 13,922 1,058,837 8,214,367 (1,004,024 ) 8,283,102 EXPENSES Origination and servicing fees - - 1,004,024 (1,004,024 ) - Interest expense 6,980,132 525,391 1,144,626 - 8,650,149 Employee compensation and benefits 1,759,589 548,657 - - 2,308,246 Legal and professional fees 598,530 223,547 - - 822,077 Other expenses 1,195,417 995,026 40,898 - 2,231,341 TOTAL EXPENSES 10,533,668 2,292,621 2,189,548 (1,004,024 ) 14,011,813 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (10,519,746 ) (1,233,784 ) 6,024,819 - (5,728,711 ) EQUITY IN INCOME OF SUBSIDIARY 4,791,035 6,024,762 - (10,815,797 ) - NET INCOME (LOSS) BEFORE INCOME TAXES (5,728,711 ) 4,790,978 6,024,819 (10,815,797 ) (5,728,711 ) INCOME TAX BENEFIT (2,097,633 ) - - - (2,097,633 ) NET INCOME (LOSS) $ (3,631,078 ) $ 4,790,978 $ 6,024,819 $ (10,815,797 ) $ (3,631,078 )
Condensed consolidating statements of cash flows	For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ (41,734 ) $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ (41,734 ) Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (37,510,459 ) (46,497,730 ) - 84,008,189 - Gain on life insurance contracts - - (53,846,155 ) - (53,846,155 ) Amortization of deferred financing and issuance costs 5,982,802 (1,364,614 ) 1,459,717 - 6,077,905 Deferred income taxes 1,478,617 - - - 1,478,617 Preferred stock dividends payable 663,614 - - - 663,614 (Increase) in operating assets: Life insurance contract benefits receivable - - (6,129,022 ) (6,129,022 ) Other assets (114,885,990 ) (92,168,163 ) - 206,436,523 (617,630 ) Increase (decrease) in operating liabilities: Due to related party (2,867,225 ) (15,505 ) 2,700,000 - (182,730 ) Accounts payable and accrued expenses 2,396,503 2,889,525 (7,310,262 ) - (2,024,234 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (144,783,872 ) (99,128,310 ) (17,145,710 ) 206,436,523 (54,621,369 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance contracts - - (74,470,362 ) - (74,470,362 ) Carrying value of matured life insurance contracts - - 7,381,132 - 7,381,132 Investment in Secured MCA advances - - (7,613,310 ) - (7,613,310 ) Proceeds from Secured MCA advances - - 1,246,703 - 1,246,703 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (73,455,837 ) - (73,455,837 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on Senior Credit Facilities - - 6,238,952 - 6,238,952 Payments for redemption of Series I Secured Notes - (6,264,018 ) - - (6,264,018 ) Proceeds from issuance of L Bonds 135,477,090 - - - 135,477,090 Payments for redemption and issuance of L Bonds (37,036,922 ) - - - (37,036,922 ) Proceeds from (increase in) restricted cash - (2,335,768 ) (11,010,358 ) - (13,346,126 ) Issuance of common stock 244,185 - - - 244,185 Proceeds from issuance of preferred stock 31,215,986 - 71,555 - 31,287,541 Payments for issuance and redemption of preferred stock (4,095,878 ) - (78,895 ) - (4,174,773 ) Issuance of member capital - 110,118,219 96,318,304 (206,436,523 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 125,804,461 101,518,433 91,539,558 (206,436,523 ) 112,425,929 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (18,979,411 ) 2,390,123 938,011 - (15,651,277 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (2,619,602 ) $ 24,038,452 $ 28,306,143 $ (52,344,595 ) $ (2,619,602 ) Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (24,038,617 ) (28,305,978 ) - 52,344,595 - Gain on life settlements - - (26,651,363 ) - (26,651,363 ) Amortization of deferred financing and issuance costs 2,832,487 260,455 (1,201,170 ) - 1,891,772 Deferred income taxes (664,905 ) - - - (664,905 ) Convertible, redeemable preferred dividends payable 509,225 - - - 509,225 (Increase) decrease in operating assets: Policy benefits receivable - - 1,392,986 1,392,986 Other assets (40,145,769 ) (26,745,888 ) - 66,117,118 (774,539 ) Increase (decrease) in operating liabilities: Accounts payable and accrued expenses 4,503,624 123,222 (790,131 ) - 3,836,715 NET CASH FLOWS USED IN OPERATING ACTIVITIES (30,425,246 ) (30,629,737 ) 1,056,465 66,117,118 (23,079,711 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (23,850,860 ) - (23,850,860 ) Carrying value of matured life insurance contracts - - 3,822,983 - 3,822,983 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (20,027,877 ) - (20,027,877 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of senior credit facilities - - (7,150,000 ) - (7,150,000 ) Payments for redemption of Series I Secured Notes - (4,508,130 ) - - (4,508,130 ) Proceeds from issuance of L Bonds 87,620,483 - - - 87,620,483 Payments for redemption and issuance of L Bonds (32,376,104 ) - - - (32,376,104 ) Payments from restricted cash - (2,306,300 ) (669,207 ) - (2,975,507 ) Issuance of common stock 582,000 - - - 582,000 Payments for redemption preferred stock (295,185 ) - - - (295,185 ) Issuance of member capital - 39,176,335 26,940,783 (66,117,118 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 55,531,194 32,361,905 19,121,576 (66,117,118 ) 40,897,557 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,092,363 ) 1,732,168 150,164 - (2,210,031 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 30,446,473 216,231 - - 30,662,704 END OF THE PERIOD $ 26,354,110 $ 1,948,399 $ 150,164 $ - $ 28,452,673 For the three months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ (2,997,365 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (2,997,365 ) Adjustments to reconcile net loss to net cash flows from operating activities: (Equity) of subsidiaries (8,692,924 ) (11,361,328 ) - 20,054,252 - Gain on life insurance contracts - - (21,073,226 ) - (21,073,226 ) Amortization of deferred financing and issuance costs 2,072,879 81,849 611,015 - 2,765,743 Deferred income taxes (1,428,130 ) - - - (1,428,130 ) Preferred stock dividends payable 333,565 - - - 333,565 (Increase) in operating assets: Life insurance contract benefits receivable - - 700,000 - 700,000 Other assets (54,428,152 ) (54,272,589 ) - 109,120,577 419,836 Increase (decrease) in operating liabilities: Due to related party (64,249 ) (16,700 ) - - (80,949 ) Accounts payable and other accrued expenses 155,980 2,172,227 (5,545,197 ) - (3,216,990 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (65,048,396 ) (54,698,992 ) (13,950,705 ) 109,120,577 (24,577,516 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance contracts - - (25,770,326 ) - (25,770,326 ) Carrying value of matured life insurance contracts - - 1,078,889 - 1,078,889 Investment in Secured MCA advances - - (1,965,896 ) (1,965,896 ) Proceeds from Secured MCA advances - - 220,911 - 220,911 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (26,436,422 ) - (26,436,422 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of Senior Credit Facilities - - (10,761,048 ) (10,761,048 ) Payments for redemption of Series I Secured Notes - (541,275 ) - - (541,275 ) Proceeds from issuance of L Bonds 64,350,430 - - - 64,350,430 Payments for redemption and issuance of L Bonds (14,373,447 ) - - - (14,373,447 ) Proceeds from (increase in) restricted cash - 486,283 (5,013,515 ) - (4,527,232 ) Issuance of member capital - 52,304,345 56,816,232 (109,120,577 ) - Issuance of common stock 31,515 - - - 31,515 Proceeds from issuance of preferred stock 20,786,332 - - - 20,786,332 Payments for issuance and redemption of preferred stock (2,485,304 ) - (71,555 ) - (2,556,859 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 68,309,526 52,249,353 40,970,114 (109,120,577 ) 52,408,416 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,261,130 (2,449,639 ) 582,987 - 1,394,478 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 10,051,621 6,822,484 505,245 - 17,379,350 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 For the three months ended Parent Guarantor Sub Non-Guarantor Sub Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (3,631,078 ) $ 4,790,978 $ 6,024,819 $ (10,815,797 ) $ (3,631,078 ) Adjustments to reconcile net loss to net cash flows from operating activities: (Equity) of subsidiaries (4,791,035 ) (6,024,762 ) - 10,815,797 - Gain on life settlements - - (14,516,881 ) - (14,516,881 ) Amortization of deferred financing and issuance costs 1,103,312 49,339 781,125 - 1,933,776 Deferred income taxes (1,916,686 ) - - - (1,916,686 ) Convertible, redeemable preferred stock dividends payable 173,993 - - - 173,993 (Increase) decrease in operating assets: Policy benefits receivable - - 2,142,986 - 2,142,986 Other assets (22,146,946 ) (15,631,849 ) - 37,360,805 (417,990 ) Increase (decrease) in operating liabilities: Accounts payable and other accrued expenses 2,010,129 (105,418 ) 629,558 - 2,534,269 NET CASH FLOWS USED IN OPERATING ACTIVITIES (29,198,311 ) (16,921,712 ) (4,938,393 ) 37,360,805 (13,697,611 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life settlements - - (13,626,842 ) - (13,626,842 ) Carrying value of matured life insurance contracts - - 80,000 - 80,000 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (13,546,842 ) - (13,546,842 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments for redemption of Series I Secured Notes - (890,586 ) - - (890,586 ) Proceeds from issuance of L Bonds 37,122,127 - - - 37,122,127 Payments for redemption and issuance of L Bonds (19,363,047 ) - - - (19,363,047 ) Proceeds (payments) from restricted cash - (2,203,800 ) 2,855,430 - 651,630 Issuance of member capital - 21,730,944 15,629,861 (37,360,805 ) - Payments for redemption preferred stock (21,187 ) - - - (21,187 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 17,737,893 18,636,558 18,485,291 (37,360,805 ) 17,498,937 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (11,460,418 ) 1,714,846 56 - (9,745,516 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 37,814,528 233,553 150,108 - 38,198,189 END OF THE PERIOD $ 26,354,110 $ 1,948,399 $ 150,164 $ - $ 28,452,673

Concentrations (Tables)

Concentrations (Tables)	9 Months Ended
	Sep. 30, 2016
Concentrations [Abstract]
Summary of the face value of insurance contracts	Life insurance company September 30, December 31, 2016 2015 AXA Equitable 14.3 % 14.0 % John Hancock 13.0 % 12.7 % Lincoln National 11.5 % * Transamerica 10.1 % *
Summary of the number of insurance contracts	State of Residence September 30, December 31, 2016 2015 California 21.1 % 25.2 % Florida 19.0 % 20.0 %

Nature of Business and Summar37

Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Nature of business and summary of significant accounting policies (Textual)
Portfolio of life insurance contracts aggreate fair value	$ 477,600,000
Direct costs and deposits	$ 34,000	$ 31,000
Liabilities and stockholders' equity		$ 2,288,000

Restrictions on Cash (Details)

Restrictions on Cash (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Restrictions on Cash (Textual)
Restricted cash	$ 15,688,000	$ 2,342,000

Investment in Life Insurance 39

Investment in Life Insurance Contracts (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Summary of reconciliation of gain on life settlements
Change in fair value	$ 21,073,000	$ 14,517,000	$ 53,846,000	$ 26,651,000
Premiums and other fees	(11,784,000)	(6,605,000)	(29,225,000)	(19,114,000)
Contract maturities	4,221,000	277,000	26,986,000	25,909,000
Gain on life insurance contracts, net	$ 13,510,000	$ 8,189,000	$ 51,607,000	$ 33,446,000

Investment in Life Insurance 40

Investment in Life Insurance Contracts (Details 1)	Sep. 30, 2016USD ($)
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Three months ending December 31, 2016	$ 10,637,000
2,017	43,905,000
2,018	47,597,000
2,019	51,563,000
2,020	57,383,000
2,021	63,972,000
Estimated expected premium payments	275,057,000
Premiums [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Three months ending December 31, 2016	10,449,000
2,017	43,155,000
2,018	46,847,000
2,019	50,813,000
2,020	56,633,000
2,021	63,222,000
Estimated expected premium payments	271,119,000
Servicing [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Three months ending December 31, 2016	188,000
2,017	750,000
2,018	750,000
2,019	750,000
2,020	750,000
2,021	750,000
Estimated expected premium payments	$ 3,938,000

Investment in Life Insurance 41

Investment in Life Insurance Contracts (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Investment in Life Insurance Contracts (Textual)
Benefit recognized from insurance policy	$ 5,300,000	$ 357,000	$ 34,367,000	$ 29,732,000
Carrying value of life insurance policy	1,078,000	80,000	7,381,000	3,823,000
Realized gains from life insurance policy	$ 4,221,000	$ 277,000	$ 26,986,000	$ 25,909,000
Life insurance policies [Member]
Investment in Life Insurance Contracts (Textual)
Discount rate applied to portfolio			11.07%		11.09%

Fair Value Definition and Hie42

Fair Value Definition and Hierarchy (Details) - Life insurance contracts [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Summary of reconciliation of investments in life insurance contracts
Beginning balance	$ 431,820,000	$ 301,499,000	$ 356,650,000	$ 282,883,000
Purchases	25,770,000	13,626,000	74,470,000	23,851,000
Maturities (cash in excess of carrying value)	(1,078,000)	(80,000)	(7,381,000)	(3,823,000)
Net change in fair value	21,073,000	14,517,000	53,846,000	26,651,000
Ending balance (September 30)	$ 477,585,000	$ 329,562,000	$ 477,585,000	$ 329,562,000

Fair Value Definition and Hie43

Fair Value Definition and Hierarchy (Details 1) - Life insurance policies [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Summary of inputs utilized in estimating the fair value
Weighted-average age of insured, years	81 years 9 months 18 days	82 years 7 months 6 days
Weighted-average life expectancy, months	81 years 9 months 18 days	79 months 9 days
Average face amount per contract	$ 2,035,000	$ 2,386,000
Discount rate	11.07%	11.09%

Fair Value Definition and Hie44

Fair Value Definition and Hierarchy (Details 2) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Minus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	$ 64,713,000	$ 48,339,000
Minus 4 Months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	32,215,000	24,076,000
Plus 4 Months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	(31,450,000)	(23,501,000)
Plus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	(62,258,000)	(46,482,000)
Minus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	50,097,000	35,024,000
Minus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	23,990,000	16,786,000
Plus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	(22,096,000)	(15,485,000)
Plus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance contracts	$ (42,492,000)	$ (29,803,000)

Fair value definition and hie45

Fair value definition and hierarchy (Details 3) - Level 3 [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
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 | $ / shares	$ 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 | $ / shares	$ 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 | $ / shares	$ 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 | $ / shares	$ 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 | $ / shares	$ 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 | $ / shares	$ 1.26
Risk free rate	1.85%
Volatility	17.03%
Term	5 years

Fair Value Definition and Hie46

Fair Value Definition and Hierarchy (Details Textual)	9 Months Ended
	Sep. 30, 2016USD ($)
Fair Value Definition and Hierarchy (Textual)
Life expectancy report, description	We periodically update the independent life expectancy estimates on the insured lives in our portfolio, other than insured lives covered under small face amount contracts (i.e., under $1 million in face amount), on a continuous rotating three-year cycle. Accordingly, we update life expectancies for approximately one-twelfth of our portfolio each quarter.
Description for change in discount factor	If the life expectancy estimates were increased or decreased by four and eight months on each outstanding contract, and the discount rates were increased or decreased by 1% and 2%, while all other variables were held constant.
Increase decrease in life expectancy	Four and eight months
Increase decrease in discount rate	1% and 2
Estimated fair value of series I secured notes payable and L Bonds	$ 402,416,000
Debt instruments face value	$ 414,023,000
Weighted average market interest rate of secured notes payable	6.36%
Loan receivable through credit agreement	$ 3,215,000
Loan loss reserve	$ 400,000

Credit Facility - Autobahn Fu47

Credit Facility - Autobahn Funding Company LLC (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 14, 2016	Dec. 31, 2015
Credit Facility - Autobahn Funding Company LLC (Textual)
Maximum borrowing amount under line of credit facility	$ 105,000,000		$ 105,000,000
Expiry date of line of credit			Jun. 30, 2018
Effective rate of interest					5.42%	5.58%
Weighted average effective interest rate	5.46%	5.42%	5.54%	5.81%
Amount outstanding under line of credit facility	$ 0		$ 0			$ 65,011,000
Minimum tangible net worth to be maintained by company			45,000,000
Minimum cash and eligible investments			15,000,000
Consolidated tangible net worth under credit and security agreement			33,877,000
Consolidated net income under credit and security agreement			$ 149,361,000
Credit facility, Description			Advances under the facility bear interest at a commercial paper rate of the lender at the time of the advance, or at the lender's cost of borrowing plus 4.25%.
Total funds available for additional borrowings under the borrowing base formula criteria	$ 0		$ 0			$ 39,989,000

Credit Facility - LNV Corpora48

Credit Facility - LNV Corporation (Details) - USD ($)	Sep. 14, 2016	Nov. 10, 2016	Sep. 30, 2016
Line of Credit Facility [Line Items]
Secured term loan	$ 172,300,000
Maturity date	Sep. 14, 2026
Interest rate description	Interest will accrue on amounts borrowed under the agreement at an annual interest rate, determined as of each date of borrowing, equal to (A) the greater of 12-month LIBOR or the federal funds rate (as defined in the agreement) plus one-half of one percent per annum, plus (B) 5.75% per annum. Interest payments are made on a quarterly basis.
Additional amount borrowing under line of credit			$ 76,629,000
Outstanding amount of credit facility			$ 71,250,000
Subsequent Event [Member]
Line of Credit Facility [Line Items]
Reserve account		$ 27,500,000

Series I Secured Notes (Details

Series I Secured Notes (Details) - Series I Secured Notes Payable [Member]	Sep. 30, 2016USD ($)
Summary of future contractual maturities of notes payable
Three months ending December 31, 2016	$ 1,177,000
2,017	10,522,000
2,018	2,401,000
2,019	1,023,000
2,020	1,766,000
Thereafter	941,000
Total	17,830,000
Summary of amortization of deferred financing costs of notes payable
Three months ending December 31, 2016	5,000
2,017	88,000
2,018	49,000
2,019	22,000
2,020	55,000
Thereafter	58,000
Total	$ 277,000

Series I Secured Notes (Detai50

Series I Secured Notes (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2011	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 14, 2016	Dec. 31, 2015
Series I Secured Notes Payable (Textual)
Effective rate of interest						5.42%	5.58%
Weighted average interest rate of secured notes payable		6.36%		6.36%
Series I Secured Notes Payable [Member]
Series I Secured Notes Payable (Textual)
Description of interest payment				Interest is payable monthly, quarterly, annually or at maturity depending on the terms of the note.
Weighted average interest rate of secured notes payable		8.63%		8.63%			8.47%
Principal amount outstanding under Series I Secured notes		$ 17,830,000		$ 17,830,000			$ 23,578,000
Amortization of deferred financing and issuance costs		$ 82,000	$ 49,000	275,000	$ 260,000
Future expected amortization of deferred financing costs				$ 277,000
Minimum maturity period of secured notes	6 months			6 months
Maximum maturity period of secured notes	7 years			7 years
Amortizatoin period of deferred financing cost				6 years
Series I Secured Notes Payable [Member] | Maximum [Member]
Series I Secured Notes Payable (Textual)
Effective rate of interest	9.55%
Series I Secured Notes Payable [Member] | Minimum [Member]
Series I Secured Notes Payable (Textual)
Effective rate of interest	5.65%

L Bonds (Details)

L Bonds (Details) - Renewable Secured Debentures [Member]	Sep. 30, 2016USD ($)
Summary of future contractual maturities of L Bonds
Three months ending December 31, 2016	$ 23,548,000
2,017	112,987,000
2,018	101,130,000
2,019	78,098,000
2,020	19,291,000
Thereafter	49,532,000
Total	384,586,000
Summary of amortization of deferred financing costs of L Bonds
Three months ending December 31, 2016	115,000
2,017	1,708,000
2,018	3,106,000
2,019	3,222,000
2,020	784,000
Thereafter	2,687,000
Total	$ 11,622,000

L Bonds (Details Textual)

L Bonds (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Jan. 31, 2015
L Bonds (Textual)
Debentures offer for sale	$ 414,023,000		$ 414,023,000
Weighted average market interest rate of secured notes payable	6.36%		6.36%
For the 2 year [Member]
L Bonds (Textual)
Interest rate change			5.50%
For the 3 year [Member]
L Bonds (Textual)
Interest rate change			6.25%
For the 5 year [Member]
L Bonds (Textual)
Interest rate change			7.50%
For the 7 year [Member]
L Bonds (Textual)
Interest rate change			8.50%
Renewable Secured Debentures [Member]
L Bonds (Textual)
Debentures offer for sale						$ 1,000,000,000
Description of interest payment			Interest is payable monthly or annually depending on the election of an investor.
Weighted average market interest rate of secured notes payable	7.16%		7.16%		7.18%
Amount outstanding under L bonds	$ 384,586,000		$ 384,586,000		$ 282,171,000
Amortization of deferred issuance costs	$ 2,073,000	$ 1,892,000	5,362,000	$ 4,232,000
Future expected amortization of deferred financing costs			$ 11,622,000
Amortizatoin period of deferred financing cost			8 years

Convertible Preferred Stock (De

Convertible Preferred Stock (Details) - USD ($)	9 Months Ended	12 Months Ended	15 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2012
Convertible Preferred Stock (Textual)
Series A preferred stock shares sold for cash	7,350
Series A preferred stock outstanding	33,201	33,201
Series A Convertible Preferred Stock [Member]
Convertible Preferred Stock (Textual)
Series A preferred stock shares sold for cash			3,278,000
Consideration received on sale of Series A preferred stock			$ 24,582,000
Cumulative dividends rate, Percentage			10.00%
Series A preferred stock, Dividend rate			$ 7
Conversion term for series A preferred stock	Holders of Series A are entitled to a liquidation preference equal to the stated value of their preferred shares (i.e., $7.50 per share) plus accrued but unpaid dividends. Holders of Series A may presently convert each share of their Series A into 0.75 shares of our common stock at the rate of $10.00 per share.
Series A preferred stock shares issued in conversion of dividends	447,000
Series A preferred stock value issued in conversion of dividends	$ 3,129,000
Aggregate shares of common stock, Warrants	431,954
Convertible preferred stock, shares issued upon conversion	696,000
Conversion of stock, shares converted into common stock	522,000
Exercise price	$ 12.50
Preferred stock, liquidation preference per share			$ 7.50
Series A preferred stock outstanding	2,650,000
Series A preferred stock issuance costs	$ 2,838,000
Fair value of warrants	$ 428,000
Weighted average remaining life of warrants outstanding	8 months 5 days	1 year 5 months 5 days
Preferred stock redemption terms	We may redeem Series A shares at a price equal to 110% of their liquidation preference ($7.50 per share) at any time.
Redeemed shares of Series A preferred stock	277,000

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Tradingdays$ / sharesshares	Sep. 30, 2015USD ($)
Subsidiary, Sale of Stock [Line Items]
Minimum conversion price | $ / shares	$ 15		$ 15
Number of trading days | Tradingdays			20
Proceeds from redeemable preferred stock | $	$ 20,786,332	$ (21,187)	$ 31,287,541	$ (21,187)
Series A 7% redeemable preferred stocks [Member]
Subsidiary, Sale of Stock [Line Items]
Company offering shares of convertible redeemable preferred stock | shares			100,000
Offering price of series redeemable preferred stock | $ / shares	$ 1,000		$ 1,000
Redeemable preferred stock par value per share | $ / shares	$ 1,000		$ 1,000
Dividend rate of convertible redeemable preferred stock			7.00%
Preferred stock redemption percentage			15.00%
Redeemable Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Redeemable preferred stock, shares issued | shares	33,201		33,201
Proceeds from redeemable preferred stock | $			$ 33,177,000
Redeemable Preferred Stock For Sale | $			$ 2,399,000

GWG MCA Capital, Inc - 9% Pre55

GWG MCA Capital, Inc - 9% Preferred Stock (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Subsidiary, Sale of Stock [Line Items]
Preferred stock shares sold for cash, shares				7,350
Proceeds from redeemable preferred stock	$ 20,786,332		$ (21,187)	$ 31,287,541	$ (21,187)
Mca Preferred Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Redeemable preferred stock, shares issued	7,155			7,155
Proceeds from redeemable preferred stock				$ 72,000
Redeemable Preferred Stock For Sale				$ 7,000
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Preferred stock shares sold for cash, shares		2,000,000
Percentage of preferred stock issued		9.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Current:
Federal		$ (141,000)
State		(40,000)
Total current tax expense (benefit)	0	(181,000)			$ 0
Deferred:
Federal	(1,082,000)	(1,488,000)	1,121,000	(504,000)
State	(346,000)	(429,000)	358,000	(161,000)
Total deferred tax expense (benefit)	(1,428,130)	(1,916,686)	1,478,617	(664,905)
Total income tax expense (benefit)	$ (1,428,130)	$ (2,097,633)	$ 1,478,617	$ (664,905)

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Taxes (Textual)
Income tax liability current	$ 0	$ (181,000)			$ 0
Accrual of non-deductible preferred stock dividend expense			$ 2,153,000

Common Stock (Details)

Common Stock (Details) - GWG MCA Capital, Inc. (Member) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Apr. 25, 2016	Mar. 17, 2016	Jun. 24, 2015	Sep. 30, 2014
Common Stock (Textual)
Restricted Common stock issued	25,000	6,500	60,000	800,000
Common stock, par value	$ 6.25	$ 7.16	$ 9.70	$ 12.50
Net proceeds				$ 8.6

Stock Incentive Plan (Details)

Stock Incentive Plan (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Stock Option [Member]
Outstanding stock options
Beginning Balance	1,053,615	1,000,101
Granted during the year	262,448	353,200
Vested during the year
Exercised during the year		(27,667)
Forfeited during the year	(79,500)	(272,019)
Ending Balance	1,236,563	1,053,615
Vested [Member]
Outstanding stock options
Beginning Balance	483,703	314,288
Granted during the year	22,500	79,500
Vested during the year	187,473	238,999
Exercised during the year		(27,667)
Forfeited during the year	(6,676)	(121,417)
Ending Balance	687,000	483,703
Un-vested [Member]
Outstanding stock options
Beginning Balance	569,912	685,813
Granted during the year	239,948	273,700
Vested during the year	(187,473)	(238,999)
Exercised during the year
Forfeited during the year	(72,824)	(150,602)
Ending Balance	549,563	569,912

Stock Incentive Plan (Details 1

Stock Incentive Plan (Details 1) - Stock Appreciation Rights (SARs) [Member]	9 Months Ended
	Sep. 30, 2016shares
Outstanding Stock Appreciation Rights:
Beginning Balance
Granted during the year	145,388
Vested during the year	145,388
Forfeited during the year
Ending Balance	145,388
Vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance
Granted during the year	56,358
Vested during the year	56,358
Forfeited during the year
Ending Balance	56,358
Un-vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance
Granted during the year	89,030
Vested during the year	89,030
Forfeited during the year
Ending Balance	89,030

Stock Incentive Plan (Details T

Stock Incentive Plan (Details Textual)	Sep. 19, 2016$ / pureshares	Sep. 30, 2016USD ($)$ / shares$ / pureshares	Mar. 31, 2013shares
Stock Incentive Plan (Textual)
Options vesting period		3 years
Compensation expense related to un-vested options not yet recognized | $		$ 420,000
Compensation expense related to un-vested options, period of recognition		3 years
Compensation Expense in 2016 | $		$ 14,000
Compensation Expense in 2017 | $		240,000
Compensation Expense in 2018 | $		109,000
Compensation Expense in 2019 | $		$ 57,000
Common Stock [Member]
Stock Incentive Plan (Textual)
Number of shares issued to employees, officers and directors		237,000
Number of options vested		687,000
Others [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Exercise Price | $ / shares		$ 10.25
Others [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Exercise Price | $ / shares		6
Owning more than 10% [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Exercise Price | $ / shares		10.18
Owning more than 10% [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Exercise Price | $ / shares		$ 6.35
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		25.50%
2013 Stock Incentive Plan [Member] | Common Stock [Member]
Stock Incentive Plan (Textual)
Forfeited during the year		415,000
Forfeited during the year, Percent		15.00%
Exercised during the year		28,000
Stock Appreciation Rights (SARs) [Member]
Stock Incentive Plan (Textual)
Number of shares issued to employees, officers and directors		145,388
Number of options vested		56,358
Forfeited during the year
Compensation Expense | $		$ 3,381
Common stock issued to employees	145,388
Strike price	8.76	8.82

Commitments (Details)

Commitments (Details)	Sep. 30, 2016USD ($)
Summary of Minimum lease payments under the lease agreement
Three months ending December 31, 2016	$ 44,000
2,017	178,000
2,018	185,000
2,019	191,000
2,020	198,000
2,021	204,000
2,022	210,000
2,023	217,000
2,024	223,000
2,025	230,000
2,026	38,000
Total	$ 1,918,000

Commitments (Details Textual)

Commitments (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 01, 2015ft²
Commitments (Textual)
Office space in square feet | ft²					17,687
Lease term date			Aug. 31, 2025
Rent expenses | $	$ 102,000	$ 71,000	$ 306,000	$ 193,000
Description of lessor leasing arrangements			On September 1, 2015, we entered into an amendment to our original lease that expanded the leased space to 17,687 square feet and extended the term through August 31, 2025.

Guarantee of L Bonds (Details)

Guarantee of L Bonds (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
A S S E T S
Cash and cash equivalents	$ 18,773,828	$ 17,379,350	$ 34,425,105	$ 28,452,673	$ 38,198,189	$ 30,662,704
Restricted cash	15,688,025		2,341,900
Investment in life insurance contracts, at fair value	477,585,100		356,649,715
Secured MCA advances	6,113,831
Life insurance contract benefits receivable	6,129,022
Other assets	3,131,107		2,461,045
Investment in subsidiaries
TOTAL ASSETS	527,420,913		395,877,765
LIABILITIES
Senior credit facilities	63,699,385		63,279,596
Series I Secured Notes	17,553,307		23,287,704
L Bonds	379,858,737		276,482,796
Notes payable to related parties
Accounts payable	2,442,449		1,517,440
Interest payable	13,633,640		12,340,061
Other accrued expenses	645,343		1,060,786
Deferred taxes, net	3,242,586		1,763,968
TOTAL LIABILITIES	481,075,447		379,732,351
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital
Convertible preferred stock	19,772,931		20,784,841
Redeemable preferred stock	33,176,600
Common stock	5,980		5,942
Additional paid-in capital	15,226,449		17,149,391
Accumulated deficit	(21,836,494)		(21,794,760)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	46,345,466		16,145,414
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	527,420,913		395,877,765
Parent [Member]
A S S E T S
Cash and cash equivalents	13,312,751	10,051,621	32,292,162	26,354,110	37,814,528	30,446,473
Restricted cash
Investment in life insurance contracts, at fair value
Secured MCA advances
Life insurance contract benefits receivable
Other assets	4,706,121		1,742,074
Investment in subsidiaries	422,185,881		269,886,254
TOTAL ASSETS	440,204,753		303,920,490
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds	379,858,737		276,482,796
Notes payable to related parties
Accounts payable	699,507		280,988
Interest payable	9,798,735		8,529,959
Other accrued expenses	259,722		717,365
Deferred taxes, net	3,242,586		1,763,968
TOTAL LIABILITIES	393,859,287		287,775,076
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital
Convertible preferred stock	19,772,931		20,784,841
Redeemable preferred stock	33,176,600
Common stock	5,980		5,942
Additional paid-in capital	15,226,449		17,149,391
Accumulated deficit	(21,836,494)		(21,794,760)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	46,345,466		16,145,414
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	440,204,753		303,920,490
Guarantor Subsidiary [Member]
A S S E T S
Cash and cash equivalents	4,372,845	6,822,484	1,982,722	1,948,399	233,553	216,231
Restricted cash	4,438,025		2,102,257
Investment in life insurance contracts, at fair value
Secured MCA advances
Life insurance contract benefits receivable
Other assets	1,224,386		688,071
Investment in subsidiaries	429,441,035		291,295,951
TOTAL ASSETS	439,476,291		296,069,001
LIABILITIES
Senior credit facilities			(1,000,000)
Series I Secured Notes	17,553,307		23,287,704
L Bonds
Notes payable to related parties
Accounts payable	99,705		157,217
Interest payable	3,588,954		3,544,626
Other accrued expenses	351,896		343,421
Deferred taxes, net
TOTAL LIABILITIES	21,593,862		26,332,968
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital	417,882,429		269,736,033
Convertible preferred stock
Redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	417,882,429		269,736,033
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	439,476,291		296,069,001
Non-Guarantor Subsidiaries [Member]
A S S E T S
Cash and cash equivalents	1,088,232	505,245	150,221	150,164	150,108
Restricted cash	11,250,000		239,643
Investment in life insurance contracts, at fair value	477,585,100		356,649,715
Secured MCA advances	6,113,831
Life insurance contract benefits receivable	6,129,022
Other assets	54,726		30,900
Investment in subsidiaries
TOTAL ASSETS	502,220,911		357,070,479
LIABILITIES
Senior credit facilities	63,699,385		64,279,596
Series I Secured Notes
L Bonds
Notes payable to related parties	2,700,000
Accounts payable	1,643,237		1,079,235
Interest payable	400,077		265,476
Other accrued expenses	33,725
Deferred taxes, net
TOTAL LIABILITIES	68,476,424		65,624,307
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital	433,744,487		291,446,172
Convertible preferred stock
Redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	433,744,487		291,446,172
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	502,220,911		357,070,479
Eliminations [Member]
A S S E T S
Cash and cash equivalents
Restricted cash
Investment in life insurance contracts, at fair value
Secured MCA advances
Life insurance contract benefits receivable
Other assets	(2,854,126)
Investment in subsidiaries	(851,626,916)		(561,182,205)
TOTAL ASSETS	(854,481,042)		(561,182,205)
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds
Notes payable to related parties	(2,700,000)
Accounts payable
Interest payable	(154,126)
Other accrued expenses
Deferred taxes, net
TOTAL LIABILITIES	(2,854,126)
STOCKHOLDERS' EQUITY (DEFICIT)
Member capital	(851,626,916)		(561,182,205)
Convertible preferred stock
Redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(851,626,916)		(561,182,205)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ (854,481,042)		$ (561,182,205)

Guarantee of L Bonds (Details 1

Guarantee of L Bonds (Details 1) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
REVENUE
Origination and servicing income
Gain on life insurance contracts, net	$ 13,509,755	8,189,261	51,606,815	33,446,556
MCA income	286,225		654,441
Interest and other income	124,998	93,841	341,098	233,516
TOTAL REVENUE	13,920,978	8,283,102	52,602,354	33,680,072
EXPENSES
Origination and servicing fees
Interest expense	11,983,968	8,650,149	32,009,934	23,149,030
Employee compensation and benefits	2,912,463	2,308,246	8,450,168	6,180,886
Legal and professional fees	586,830	822,077	3,097,312	1,988,261
Other expenses	2,863,212	2,231,341	7,608,057	5,646,402
TOTAL EXPENSES	18,346,473	14,011,813	51,165,471	36,964,579
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(4,425,495)	(5,728,711)	1,436,883	(3,284,507)
EQUITY IN INCOME OF SUBSIDIARY
NET INCOME (LOSS) BEFORE INCOME TAXES	(4,425,495)	(5,728,711)	1,436,883	(3,284,507)
INCOME TAX BENEFIT	(1,428,130)	(2,097,633)	1,478,617	(664,905)
NET INCOME (LOSS)	(2,997,365)	(3,631,078)	(41,734)	(2,619,602)	$ (7,393,274)
Parent [Member]
REVENUE
Origination and servicing income
Gain on life insurance contracts, net
MCA income
Interest and other income	75,808	13,922	181,828	38,944
TOTAL REVENUE	75,808	13,922	181,828	38,944
EXPENSES
Origination and servicing fees
Interest expense	9,747,128	6,980,132	25,477,320	18,011,890
Employee compensation and benefits	1,718,683	1,759,589	4,894,006	4,671,183
Legal and professional fees	263,917	598,530	1,642,252	1,427,388
Other expenses	1,464,498	1,195,417	4,241,825	3,251,606
TOTAL EXPENSES	13,194,226	10,533,668	36,255,403	27,362,067
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(13,118,418)	(10,519,746)	(36,073,575)	(27,323,123)
EQUITY IN INCOME OF SUBSIDIARY	8,692,924	4,791,035	37,510,459	24,038,616
NET INCOME (LOSS) BEFORE INCOME TAXES	(4,425,495)	(5,728,711)	1,436,883	(3,284,507)
INCOME TAX BENEFIT	(1,418,130)	(2,097,633)	1,478,617	(664,905)
NET INCOME (LOSS)	2,997,365	(3,631,078)	(41,734)	(2,619,602)
Guarantor Subsidiary [Member]
REVENUE
Origination and servicing income		1,004,024	13,417	2,022,774
Gain on life insurance contracts, net
MCA income
Interest and other income	30,126	54,813	31,137	61,694
TOTAL REVENUE	30,126	1,058,837	44,554	2,084,468
EXPENSES
Origination and servicing fees
Interest expense	554,938	525,391	1,856,909	1,984,356
Employee compensation and benefits	1,038,058	548,657	3,151,107	1,509,703
Legal and professional fees	297,804	223,547	1,308,959	560,873
Other expenses	803,106	995,026	2,197,133	2,297,063
TOTAL EXPENSES	2,693,906	2,292,621	8,514,108	6,351,995
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(2,663,780)	(1,233,784)	(8,469,554)	(4,267,527)
EQUITY IN INCOME OF SUBSIDIARY	11,361,328	6,024,762	46,497,730	28,305,979
NET INCOME (LOSS) BEFORE INCOME TAXES	8,697,549	4,790,978	38,028,177	24,038,452
INCOME TAX BENEFIT
NET INCOME (LOSS)	8,697,549	4,790,978	38,028,177	24,038,452
Non-Guarantor Subsidiaries [Member]
REVENUE
Origination and servicing income
Gain on life insurance contracts, net	13,509,755	8,189,261	51,606,815	33,446,556
MCA income	286,225		654,441
Interest and other income	83,313	25,106	282,259	132,878
TOTAL REVENUE	13,879,293	8,214,367	52,543,515	33,579,434
EXPENSES
Origination and servicing fees		1,004,024	13,417	2,022,774
Interest expense	1,746,151	1,144,626	4,829,831	3,152,784
Employee compensation and benefits	155,722		405,055
Legal and professional fees	25,109		146,101
Other expenses	595,608	40,898	1,169,099	97,733
TOTAL EXPENSES	2,522,590	2,189,548	6,563,503	5,273,291
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	11,356,703	6,024,819	45,980,012	28,306,143
EQUITY IN INCOME OF SUBSIDIARY
NET INCOME (LOSS) BEFORE INCOME TAXES	11,356,703	6,024,819	45,980,012	28,306,143
INCOME TAX BENEFIT
NET INCOME (LOSS)	11,356,703	6,024,819	45,980,012	28,306,143
Eliminations [Member]
REVENUE
Origination and servicing income		(1,004,024)	(13,417)	(2,022,774)
Gain on life insurance contracts, net
MCA income
Interest and other income	(64,249)		(154,126)
TOTAL REVENUE	(64,249)	(1,004,024)	(167,543)	(2,022,774)
EXPENSES
Origination and servicing fees		(1,004,024)	13,417	(2,022,774)
Interest expense	(64,249)		154,126
Employee compensation and benefits
Legal and professional fees
Other expenses
TOTAL EXPENSES	(64,249)	(1,004,024)	167,543	(2,022,774)
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
EQUITY IN INCOME OF SUBSIDIARY	(20,054,252)	(10,815,797)	(84,008,189)	52,344,595
NET INCOME (LOSS) BEFORE INCOME TAXES	(20,054,252)	(10,815,797)	(84,008,189)	(52,344,595)
INCOME TAX BENEFIT
NET INCOME (LOSS)	$ (20,054,252)	$ (10,815,797)	$ (84,008,189)	$ (52,344,595)

Guarantee of L Bonds (Details 2

Guarantee of L Bonds (Details 2) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ (2,997,365)	$ (3,631,078)	$ (41,734)	$ (2,619,602)	$ (7,393,274)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries
Gain on life insurance contracts	(21,073,226)	(14,516,881)	(53,846,155)	(26,651,363)
Amortization of deferred financing and issuance costs	2,765,743	1,933,776	6,077,905	1,891,772
Deferred income taxes	(1,428,130)	(1,916,686)	1,478,617	(664,905)
Preferred stock dividends payable	333,565	173,993	663,614	509,225
Convertible, redeemable preferred dividends payable		173,993		509,225
(Increase) in operating assets:
Life insurance contract benefits receivable	700,000	(2,142,986)	(6,129,022)	1,392,986
Other assets	419,836	(417,990)	(617,630)	(774,539)
Increase (decrease) in operating liabilities:
Due to related party	(80,949)		(182,730)
Accounts payable and accrued expenses	(3,216,990)	2,534,269	(2,024,234)	3,836,715
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(24,577,516)	(13,697,611)	(54,621,369)	(23,079,711)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance contracts	(25,770,326)	(13,626,842)	(74,470,362)	(23,850,860)
Carrying value of matured life insurance contracts	1,078,889	80,000	7,381,132	3,822,983
Investment in Secured MCA advances	(1,965,896)		(7,613,310)
Proceeds from Secured MCA advances	220,911		1,246,703
NET CASH FLOWS UESD IN INVESTING ACTIVITIES	(26,436,422)	(13,546,842)	(73,455,837)	(20,027,877)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on Senior Credit Facilities	(10,761,048)		6,238,952	(7,150,000)
Payments for redemption of Series I Secured Notes	(541,275)	(890,586)	(6,264,018)	(4,508,130)
Proceeds from issuance of L Bonds	64,350,430	37,122,127	135,477,090	87,620,483
Payments for redemption and issuance of L Bonds	(14,373,447)	(19,363,047)	(37,036,922)	(32,376,104)
Proceeds from (increase in) restricted cash	(4,527,232)	651,630	(13,346,126)	(2,975,507)
Issuance of member capital
Proceeds from issuance of preferred stock	20,786,332	(21,187)	31,287,541	(21,187)
Issuance of common stock	31,515		244,185
Payments for issuance and redemption of preferred stock	20,786,332		31,287,541
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	52,408,416	17,498,937	112,425,929	40,897,557
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,394,478	(9,745,516)	(15,651,277)	(2,210,031)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	17,379,350	38,198,189	34,425,105	30,662,704	30,662,704
END OF PERIOD	18,773,828	28,452,673	18,773,828	28,452,673	34,425,105
Parent [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	2,997,365	(3,631,078)	(41,734)	(2,619,602)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	(8,692,924)	(4,791,035)	(37,510,459)	(24,038,616)
Gain on life insurance contracts
Amortization of deferred financing and issuance costs	2,072,879	1,103,312	5,982,802	2,832,487
Deferred income taxes	(1,428,130)	(1,916,686)	1,478,617	(664,905)
Preferred stock dividends payable	333,565		663,614
Convertible, redeemable preferred dividends payable		173,993		509,225
(Increase) in operating assets:
Life insurance contract benefits receivable
Other assets	(54,428,152)	(22,146,946)	(114,885,990)	(40,145,769)
Increase (decrease) in operating liabilities:
Due to related party	(64,249)		(2,867,225)
Accounts payable and accrued expenses	155,980	2,010,129	2,396,503	4,503,624
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(65,048,396)	(29,198,311)	(144,783,872)	(30,425,246)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance contracts
Carrying value of matured life insurance contracts
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS UESD IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on Senior Credit Facilities
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds	64,350,430	37,122,127	135,477,090	87,620,483
Payments for redemption and issuance of L Bonds	(14,373,447)	(19,363,047)	(37,036,922)	(32,376,104)
Proceeds from (increase in) restricted cash
Issuance of member capital
Proceeds from issuance of preferred stock	20,786,332	(21,187)	31,215,986
Issuance of common stock	31,515		244,185	582,000
Payments for issuance and redemption of preferred stock	(2,485,304)		(4,095,878)	(295,185)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	68,309,526	17,737,893	125,804,461	55,531,194
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,261,130	(11,460,418)	(18,979,411)	(4,092,363)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	10,051,621	37,814,528	32,292,162	30,446,473	30,446,473
END OF PERIOD	13,312,751	26,354,110	13,312,751	26,354,110	32,292,162
Guarantor Subsidiary [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	8,697,549	4,790,978	38,028,177	24,038,452
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	(11,361,328)	(6,024,762)	(46,497,730)	(28,305,979)
Gain on life insurance contracts
Amortization of deferred financing and issuance costs	81,849	49,339	(1,364,614)	260,455
Deferred income taxes
Preferred stock dividends payable
Convertible, redeemable preferred dividends payable
(Increase) in operating assets:
Life insurance contract benefits receivable
Other assets	(54,272,589)	(15,631,849)	(92,168,163)	(26,745,888)
Increase (decrease) in operating liabilities:
Due to related party	(16,700)		(15,505)
Accounts payable and accrued expenses	2,172,227	(105,418)	2,889,525	123,222
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(54,698,992)	(16,921,712)	(99,128,310)	(30,629,737)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance contracts
Carrying value of matured life insurance contracts
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS UESD IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on Senior Credit Facilities
Payments for redemption of Series I Secured Notes	(541,275)	(890,586)	(6,264,018)	(4,508,130)
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Proceeds from (increase in) restricted cash	486,283	(2,203,800)	(2,335,768)	(2,203,800)
Issuance of member capital	52,304,345	21,730,944	110,118,219	39,176,335
Proceeds from issuance of preferred stock
Issuance of common stock
Payments for issuance and redemption of preferred stock
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	52,249,353	18,636,558	101,518,433	32,361,905
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(2,449,639)	1,714,846	2,390,123	1,732,168
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	6,822,484	233,553	1,982,722	216,231	216,231
END OF PERIOD	4,372,845	1,948,399	4,372,845	1,948,399	1,982,722
Non-Guarantor Subsidiaries [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	11,356,703	6,024,819	45,980,012	28,306,143
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries
Gain on life insurance contracts	(21,073,226)	(14,516,881)	(53,846,155)
Amortization of deferred financing and issuance costs	611,015	781,125	1,459,717	(26,651,363)
Deferred income taxes				(1,201,170)
Preferred stock dividends payable
Convertible, redeemable preferred dividends payable
(Increase) in operating assets:
Life insurance contract benefits receivable	(700,000)	(2,142,986)	(6,129,022)	1,392,986
Other assets
Increase (decrease) in operating liabilities:
Due to related party			2,700,000
Accounts payable and accrued expenses	(5,545,197)	629,558	(7,310,262)	(790,131)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(13,950,705)	(4,938,393)	(17,145,710)	1,056,465
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance contracts	(25,770,326)	(13,626,842)	(74,470,362)	(23,850,860)
Carrying value of matured life insurance contracts	1,078,889	80,000	7,381,132	3,822,983
Investment in Secured MCA advances	(1,965,896)		(7,613,310)
Proceeds from Secured MCA advances	220,911		1,246,703
NET CASH FLOWS UESD IN INVESTING ACTIVITIES	(26,436,422)	(13,546,842)	(73,455,837)	(20,027,877)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on Senior Credit Facilities	(10,761,048)		6,238,952	(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 (increase in) restricted cash	(5,013,515)	2,855,430	(11,010,358)	(669,207)
Issuance of member capital	56,816,232	15,629,861	96,318,304	26,940,783
Proceeds from issuance of preferred stock			71,555
Issuance of common stock
Payments for issuance and redemption of preferred stock	(71,555)		(78,895)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	40,970,114	18,485,291	91,539,558	19,121,576
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	582,987	56	938,011	150,164
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	505,245	150,108	150,221
END OF PERIOD	1,088,232	150,164	1,088,232	150,164	150,221
Eliminations [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	(20,054,252)	(10,815,797)	(84,008,189)	(52,344,595)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	20,054,252	10,815,797	84,008,189	(52,344,595)
Gain on life insurance contracts				(52,344,595)
Amortization of deferred financing and issuance costs
Deferred income taxes
Preferred stock dividends payable
Convertible, redeemable preferred dividends payable
(Increase) in operating assets:
Life insurance contract benefits receivable
Other assets	(109,120,577)	37,360,805	(206,436,523)	66,117,118
Increase (decrease) in operating liabilities:
Due to related party
Accounts payable and accrued expenses
NET CASH FLOWS USED IN OPERATING ACTIVITIES	109,120,577	37,360,805	206,436,523	66,117,118
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance contracts
Carrying value of matured life insurance contracts
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS UESD IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on Senior Credit Facilities
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Proceeds from (increase in) restricted cash
Issuance of member capital	(109,120,577)	(37,360,805)	(206,436,523)
Proceeds from issuance of preferred stock
Issuance of common stock				(66,117,118)
Payments for issuance and redemption of preferred stock				(66,117,118)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(109,120,577)	(37,360,805)	(206,436,523)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
END OF PERIOD

Concentrations (Details)

Concentrations (Details)	Sep. 30, 2016	Dec. 31, 2015
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance contracts with specific life insurance companies	10.10%		[1]
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	14.30%	14.00%
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	13.00%	12.70%
Lincoln National [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	11.50%		[1]
[1]	percentage does not exceed 10% of the total face value.

Concentrations (Details 1)

Concentrations (Details 1)	Sep. 30, 2016	Dec. 31, 2015
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	21.10%	25.20%
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	19.00%	20.00%

Concentrations (Details Textual

Concentrations (Details Textual)	9 Months Ended
	Sep. 30, 2016
Concentrations (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) - USD ($)	Oct. 28, 2016	Sep. 30, 2016
Subsequent Events (Textual)
Life insurance contract policy benefit		$ 3,240,000
Realized gains on life insurance policy contract		2,539,000
Additional principal amount of debt		$ 6,911,000
Shares issued		7,350
Gross Consideration		$ 7,350,000
Subsequent Event [Member]
Subsequent Events (Textual)
Proceed From Loan Advances	$ 92,900,000
Money Tranfered To Reserve Account	$ 16,250,000