GWG (GWGHQ) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 12, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	GWG Holdings, Inc.
Entity Central Index Key	1,522,690
Trading Symbol	GWGH
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,779,745

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
A S S E T S
Cash and cash equivalents	$ 49,933,336	$ 78,486,982
Restricted cash	48,091,589	37,826,596
Investment in life insurance policies, at fair value	545,396,546	511,192,354
Secured MCA advances	5,005,400	5,703,147
Life insurance policy benefits receivable	8,975,000	5,345,000
Other assets	3,317,692	4,688,103
TOTAL ASSETS	660,719,563	643,242,182
LIABILITIES
Senior credit facilities	153,387,813	156,064,818
Series I Secured Notes	11,000,368	16,404,836
L Bonds	383,315,514	381,312,587
Accounts payable	2,684,919	2,226,712
Interest and dividends payable	16,287,918	16,160,599
Other accrued expenses	1,991,281	1,676,761
Deferred taxes, net	2,096,871	2,097,371
TOTAL LIABILITIES	570,764,684	575,943,684
STOCKHOLDERS' EQUITY
CONVERTIBLE PREFERRED STOCK - Series A (par value $0.001; shares authorized 40,000,000; shares outstanding 2,651,565 and 2,640,521; liquidation preference of $19,887,000 and $19,804,000 as of March 31, 2017 and December 31, 2016, respectively)	19,771,744	19,701,133
REDEEMABLE PREFERRED STOCK - RPS (par value $0.001; shares authorized 100,000; shares outstanding 87,131 and 59,183 as of March 31, 2017 and December 31, 2016, respectively)	87,130,977	59,025,164
Common stock (par value $0.001: shares authorized 210,000,000; shares issued and outstanding 5,779,745 and 5,980,190 as of March 31, 2017 and December 31, 2016, respectively)	5,780	5,980
Additional paid-in capital	1,908,774	7,383,515
Accumulated deficit	(18,862,396)	(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	89,954,879	67,298,498
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$ 660,719,563	$ 643,242,182

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Convertible preferred stock Series A, par value	$ 0.001	$ 0.001
Convertible preferred stock Series A, shares authorized	40,000,000	40,000,000
Convertible preferred stock Series A, shares outstanding	2,651,565	2,640,521
Convertible preferred stock Series A, liquidation preference	$ 19,887,000	$ 19,804,000
Redeemable preferred stock, par value	$ 0.001	$ 0.001
Redeemable preferred stock, shares authorized	100,000	100,000
Redeemable preferred stock, shares outstanding	87,131	59,183
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	5,779,745	5,980,190
Common stock, shares outstanding	5,779,745	5,980,190

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUE
Gain on life insurance policies, net	$ 19,399,819	$ 17,713,712
MCA income	246,577	144,961
Interest and other income	441,949	45,220
TOTAL REVENUE	20,088,345	17,903,893
EXPENSES
Interest expense	13,244,215	9,149,155
Employee compensation and benefits	3,163,062	2,466,197
Legal and professional fees	946,348	1,206,128
Other expenses	2,780,322	2,412,160
TOTAL EXPENSES	20,133,947	15,233,640
INCOME (LOSS) BEFORE INCOME TAXES	(45,602)	2,670,253
Income tax expense (benefit)	(500)	1,084,717
NET INCOME (LOSS)	(45,102)	1,585,536
Preferred stock dividends	1,867,760	511,231
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (1,912,862)	$ 1,074,305
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS
Basic	$ (0.32)	$ 0.18
Diluted	$ (0.32)	$ 0.18
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,912,946	5,942,790
Diluted	5,912,946	5,942,790

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (45,102)	$ 1,585,536
Adjustments to reconcile net income to net cash flows used in operating activities:
Change in fair value of life insurance policies	(13,883,833)	(11,531,553)
Amortization of deferred financing and issuance costs	2,666,203	784,188
Deferred income taxes	(500)	1,055,729
Preferred stock dividends payable	336,789	163,577
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(3,630,000)	(15,912,839)
Other assets	1,426,318	173,426
Increase in operating liabilities:
Due to related party	(7,815)	1,712,392
Accounts payable and other accrued expenses	1,217,232	1,967,969
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(11,920,708)	(20,001,575)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(22,689,333)	(24,326,322)
Carrying value of matured life insurance policies	2,368,974	4,610,479
Investment in Secured MCA advances		(4,353,585)
Proceeds from Secured MCA advances	770,387	118,143
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(19,549,972)	(23,951,285)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities	(3,368,794)	20,000,000
Payments for redemption of Series I Secured Notes	(5,449,889)	(5,237,393)
Proceeds from issuance of L Bonds	24,868,659	34,368,889
Payments for issuance and redemption of L Bonds	(24,171,597)	(10,909,693)
Payments to restricted cash	(10,264,993)	(17,486,720)
Issuance (repurchase) of common stock	(1,603,560)	46,545
Proceeds from issuance of preferred stock	27,179,194	1,028,536
Payments for issuance and redemption of preferred stock	(2,404,226)	(772,553)
Payments of preferred stock dividends	(1,867,760)	(511,231)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	2,917,034	20,526,380
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	(28,553,646)	(23,426,480)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	78,486,982	34,425,105
END OF PERIOD	49,933,336	10,998,625
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	10,471,000	6,453,000
Premiums paid	10,960,000	8,445,000
Stock-based compensation	303,000	9,000
Series I Secured Notes:
Conversion of accrued interest and commission payable to principal		44,000
L Bonds:
Conversion of accrued interest and commission payable to principal	508,000	291,000
Series A Preferred Stock:
Issuance of preferred stock in lieu of cash dividends	171,000	168,000
Investment in life insurance policies included in accounts payable	$ 1,237,000	$ 1,551,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2015	$ 16,145,414	$ 20,784,841	$ 5,942	$ 14,563,834	$ (19,209,203)
Beginning balance, shares at Dec. 31, 2015		2,781,735	5,941,790
Net income	391,909				391,909
Issuance of common stock	244,149		$ 36	244,149
Issuance of common stock, shares			36,450
Redemption of Series A Preferred Stock	(1,768,951)	$ (1,788,451)	$ 2	19,498
Redemption of Series A Preferred Stock, shares		(239,749)	1,950
Issuance of Series A Preferred Stock	704,743	$ 704,743
Issuance of Series A Preferred Stock, shares		98,535
Issuance of Redeemable Preferred Stock	54,891,639	$ 59,025,164		(4,133,525)
Issuance of Redeemable Preferred Stock, shares		59,183
Preferred stock dividends	(3,537,288)			(3,537,288)
Issuance of stock options	226,847			226,847
Ending balance at Dec. 31, 2016	67,298,498	$ 78,726,297	$ 5,980	7,383,515	(18,817,294)
Ending balance, shares at Dec. 31, 2016		2,699,704	5,980,190
Net income	(45,102)				(45,102)
Redemption of common stock	(1,603,560)		$ (200)	(1,603,360)
Redemption of common stock, shares			(200,445)
Redemption of Series A Preferred Stock	(100,462)	$ (100,462)
Redemption of Series A Preferred Stock, shares		(13,395)
Issuance of Series A Preferred Stock	171,073	$ 171,073
Issuance of Series A Preferred Stock, shares		24,439
Issuance of Redeemable Preferred Stock	26,374,603	$ 28,392,090		(2,017,487)
Issuance of Redeemable Preferred Stock, shares		28,392
Redemption of Redeemable Preferred Stock	(286,277)	$ (286,277)
Redemption of Redeemable Preferred Stock, shares		(444)
Preferred stock dividends	(1,867,760)			(1,867,760)
Issuance of stock options	13,866			13,866
Ending balance at Mar. 31, 2017	$ 89,954,879	$ 106,902,721	$ 5,780	$ 1,908,774	$ (18,862,396)
Ending balance, shares at Mar. 31, 2017		2,738,696	5,779,745

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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. On September 30, 2015, GWG Holdings formed a wholly owned subsidiary, Wirth Park Agency, LLC. Wirth Park Agency was formed to transact life insurance policy sales on behalf of life insurance agents. On December 7, 2015, GWG Holdings formed a wholly owned subsidiary, GWG MCA, LLC. On January 13, 2016, GWG MCA, LLC was converted to a corporation and became GWG MCA Capital, Inc. GWG MCA Capital, Inc. was formed to provide cash advances to small businesses. On August 25, 2016, GWG Holdings formed a wholly owned subsidiary, Actüa Life & Annuity Ltd., to engage in various life insurance related businesses and activities related to its exclusive license for “DNA Methylation Based Predictor of Mortality” technology. Use of Estimates Cash and Cash Equivalents Life Insurance Policies In a case where our acquisition of a policy 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 have secured title to the policy. On both March 31, 2017 and December 31, 2016, a total of $42,000 of our “other assets” comprised direct costs and deposits that we advanced for policy acquisitions. We also recognize realized gain (or loss) from a life insurance policy upon one of the two following events: (1) our receipt of notice or verified mortality of the insured; or (2) our sale of the policy, 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 policy benefits and the carrying values of the policy once we determine that collection of the policy benefits is realizable and reasonably assured. In the case of a policy sale, the gain (or loss) we recognize is the difference between the sale price and the carrying value of the policy on the date we receive sale proceeds. Other Assets Stock-Based Compensation The expected terms of the options are based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at grant date. Volatility is based on the standard deviation of the average continuously compounded rate of return of five selected comparable companies over the previous 52 weeks. We have not historically issued any common stock dividends and do not expect to do so in the foreseeable future. Forfeitures for both option and restricted stock grants are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from estimates. Deferred Financing and Issuance Costs Earnings (loss) per Share Recently Issued Accounting Pronouncements On April 7, 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs On February 25, 2016, the FASB issued ASU 2016-02 Leases

Restrictions on Cash

Restrictions on Cash	3 Months Ended
	Mar. 31, 2017
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 policies, pay annual policy premiums, pay interest and other charges under the facility, and collect policy benefits. The agents for the lenders authorize the disbursements from these accounts. At March 31, 2017 and December 31, 2016, there was a balance of $48,092,000, and $37,827,000, respectively, in these restricted cash accounts.

Investment in Life Insurance Po

Investment in Life Insurance Policies	3 Months Ended
	Mar. 31, 2017
Investment in Life Insurance Policies [Abstract]
Investment in life insurance policies	(3) Investment in life insurance policies Life insurance policies are valued based on unobservable inputs that are significant to their overall fair value. Changes in the fair value of these policies are recorded as gain or loss on life insurance policies, net of premiums paid on those policies, in our consolidated statements of operations. Fair value is determined on a discounted cash flow basis that incorporates life expectancy assumptions generally derived from reports obtained from widely accepted life expectancy providers, other than insured lives covered under small face amount policies (i.e., $1 million in face value benefits or less), 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 policies, the discount rates observed in the life insurance secondary market, market interest rates, the credit exposure to the insurance companies that issued the life insurance policies 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, a discount rate of 10.96% was applied to our portfolio as of both March 31, 2017 and December 31, 2016. A summary of our life insurance policies accounted for under the fair value method, and their estimated maturity dates, based on remaining life expectancy is as follows: As of March 31, 2017 As of December 31, 2016 Years Ending December 31, Number of Contracts Estimated Fair Value Face Value Number of Contracts Estimated Fair Value Face Value 2017 6 3,861,000 4,375,000 11 14,837,000 16,939,000 2018 19 27,200,000 35,893,000 23 30,830,000 42,564,000 2019 70 74,557,000 112,510,000 55 57,556,000 88,858,000 2020 87 79,279,000 143,812,000 93 85,414,000 159,814,000 2021 91 80,357,000 166,349,000 86 73,825,000 158,744,000 2022 74 62,786,000 153,016,000 66 56,909,000 147,222,000 2023 72 49,018,000 142,501,000 64 44,953,000 128,581,000 Thereafter 334 168,339,000 689,102,000 292 146,868,000 618,953,000 Totals 753 $ 545,397,000 $ 1,447,558,000 690 $ 511,192,000 1,361,675,000 We recognized life insurance benefits of $18,975,000 and $19,238,000 during the three months ended March 31, 2017 and 2016, respectively, related to policies with a carrying value of $2,369,000 and $4,611,000, respectively, and as a result recorded realized gains of $16,606,000 and $14,627,000, respectively. Reconciliation of gain on life insurance policies: Three Months Ended: March 31, March 31, Change in fair value $ 13,884,000 $ 11,532,000 Premiums and other annual fees (11,090,000 ) (8,445,000 ) Policy maturities 16,606,000 14,627,000 Gain on life settlements, net $ 19,400,000 $ 17,714,000 We currently estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies in force for the next five years, assuming no mortalities, are as follows: Years Ending December 31, Premiums Servicing Premiums and Nine months ending December 31, 2017 $ 35,228,000 $ 654,000 $ 35,882,000 2018 51,895,000 654,000 52,549,000 2019 57,632,000 654,000 58,286,000 2020 62,464,000 654,000 63,118,000 2021 70,222,000 654,000 70,876,000 2022 78,953,000 654,000 79,607,000 $ 356,394,000 $ 3,924,000 $ 360,318,000

Fair Value Definition and Hiera

Fair Value Definition and Hierarchy	3 Months Ended
	Mar. 31, 2017
Fair Value Definition and Hierarchy [Abstract]
Fair value definition and hierarchy	(4) Fair value definition and hierarchy ASC 820 establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of investment, the characteristics specific to the investment and the state of the marketplace, including the existence and transparency of transactions between market participants. Assets and liabilities with readily available and actively quoted prices, or for which fair value can be measured from actively quoted prices in an orderly market, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. ASC 820 maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the use of observable inputs whenever available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect assumptions about how market participants price an asset or liability based on the best available information. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that we have 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 policies 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 current information about discount rate applied by other reporting companies owning portfolios of life insurance policies, the discount rates observed in the life insurance secondary market, market interest rates, the credit exposure to the insurance company that issued the life insurance policy and management’s estimate of the risk premium a purchaser would require to receive the future cash flows derived from our portfolio 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 policies for the periods ended March 31, as follows: Three Months Ended 2017 2016 Beginning balance $ 511,192,000 $ 356,650,000 Purchases 22,690,000 23,831,000 Maturities (initial cost basis) (2,369,000 ) (4,611,000 ) Net change in fair value 13,884,000 11,532,000 Ending balance $ 545,397,000 $ 387,402,000 In the past, we periodically updated the independent life expectancy estimates on the insured lives in our portfolio, other than insured lives covered under small face amount policies (i.e., $1 million in face value benefits or less), on a continuous rotating three-year cycle, and through that effort attempted to update life expectancies for approximately one-twelfth of our portfolio each quarter. Currently, however, the terms of our senior credit facility with LNV Corporation require us to attempt to update life expectancies on a rotating two-year cycle. The following table summarizes the inputs utilized in estimating the fair value of our portfolio of life insurance policies: As of March 31, 2017 As of December 31, Weighted-average age of insured, years 81.5 81.6 Weighted-average life expectancy, months 83.0 83.2 Average face amount per policy $ 1,922,000 $ 1,973,000 Discount rate 10.96 % 10.96 % 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 policy, 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 policies would increase or (decrease) as summarized below: Change in Fair Value of the Investment in Life Insurance Policies Change in life expectancy estimates minus 8 months minus 4 months plus 4 months plus 8 months March 31, 2017 $ 74,249,000 $ 36,972,000 $ (36,277,000 ) $ (71,802,000 ) December 31, 2016 $ 69,253,000 $ 34,601,000 $ (33,846,000 ) $ (67,028,000 ) Change in discount rate minus 2% minus 1% plus 1% plus 2% March 31, 2017 $ 57,001,000 $ 27,278,000 $ (25,096,000 ) $ (48,239,000 ) December 31, 2016 $ 53,764,000 $ 25,728,000 $ (23,668,000 ) $ (45,491,000 ) Other Fair Value Considerations The carrying value of receivables, prepaid expenses, accounts payable and accrued expenses approximate fair value due to their short-term maturities and low credit risk. Using the income-based valuation approach, the estimated fair value of our Series I Secured Notes and L Bonds, having a combined aggregate face value of $402,500,000 as of March 31, 2017, is approximately $413,074,000 based on a weighted-average market interest rate of 6.55%. The carrying value of the senior credit facilities reflects interest charged at the commercial paper rate or 12-month LIBOR, as applicable, plus an applicable margin. The margin represents our credit risk, and the strength of the portfolio of life insurance policies collateralizing the debt. The overall rate reflects market, and the carrying value of the facility approximates fair value. GWG MCA participates in the merchant cash advance industry 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 March 31, 2017 one of our secured loans was potentially impaired. The secured loan to Nulook Capital LLC had an outstanding balance of $2,105,000 and a loan loss reserve of $600,000 at March 31, 2017. 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 March 31, 2017: Month issued Warrants issued Fair value per share Risk free rate Volatility Term 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 324,887

Credit Facility - Autobahn Fund

Credit Facility - Autobahn Funding Company LLC	3 Months Ended
	Mar. 31, 2017
Credit Facility - Autobahn Funding Company LLC [Abstract]
Credit Facility - Autobahn Funding Company LLC	(5) Credit Facility – Autobahn Funding Company LLC 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%. The amount outstanding under this facility was $0 at both March 31, 2017 and December 31, 2016, respectively. GWG Holdings is a performance guarantor of the various obligations of GWG Life, as servicer, under the Agreement. Obligations under the facility are secured by our pledge of ownership in our life insurance policies to DZ Bank through an arrangement under which Wells Fargo serves as securities intermediary. The Agreement has certain financial (as described below) and non-financial covenants, and we were in compliance with these covenants at both March 31, 2017 and December 31, 2016. 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) cash and eligible investments of $15 million or above. No life insurance policies were pledged and no funds were available for additional borrowings under the facility at March 31, 2017 and December 31, 2016.

Credit Facility LNV Corporati

Credit Facility LNV Corporation	3 Months Ended
	Mar. 31, 2017
Credit Facility - LNV Corporation [Abstract]
Credit Facility - LNV Corporation	(6) Credit Facility – LNV Corporation On September 14, 2016, we entered into a senior credit facility with LNV Corporation as lender through our subsidiary GWG DLP Funding IV, LLC (“DLP IV”). The facility is governed by a Loan and Security Agreement (the “Loan Agreement”), with CLMG Corp. acting as administrative agent on behalf of the lenders 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 at the LIBOR rate as defined in the agreement. Interest will accrue on amounts borrowed under the agreement at an annual interest rate, determined as of each date of borrowing or quarterly if there is no 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. The amount outstanding under this facility was $159,470,000 at March 31, 2017. 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 securities intermediary. The life insurance policies owned by DLP IV do not serve as direct collateral for the obligations of GWG Holdings under its L Bonds or Series I Secured Notes. The difference between the outstanding balance as of March 31, 2017 and the carrying amount relates to unamortized debt issuance costs. 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 March 31, 2017, the amount set aside in this specific reserve account was $27,504,000. The Agreement has certain financial and nonfinancial covenants, and we were in compliance with these covenants at March 31, 2017 and December 31, 2016. No funds were available for additional borrowings under the facility at March 31, 2017.

Series I Secured Notes

Series I Secured Notes	3 Months Ended
	Mar. 31, 2017
Series I Secured Notes [Abstract]
Series I Secured Notes	(7) Series I Secured Notes Series I Secured Notes (“Series I”) are legal obligations of GWG Life and were privately offered and sold from August 2009 through June 2011. The Series I 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 both March 31, 2017 and December 31, 2016. The Series I 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 Series I have renewal features under which we may elect to permit their renewal, subject to the right of noteholders to elect to receive payment at maturity. Since September 1, 2016, we are no longer renewing the Series I. Interest on the Series I is payable monthly, quarterly, annually or at maturity depending on the election of the investor. At March 31, 2017 and December 31, 2016, the weighted-average interest rate of our Series I was 8.82% and 8.68%, respectively. The principal amount of Series I outstanding was $10,629,000 and $16,614,000 at March 31, 2017 and December 31, 2016, respectively. The difference between the amount outstanding on the Series I and the carrying amount on our balance sheet is due to netting of unamortized deferred issuance costs and including redemptions in process. Overall, interest expense includes amortization of deferred financing and issuance costs of $45,000 and $111,000 for the three months ended March 31, 2017 and 2016, respectively. Future expected amortization of deferred financing costs is $163,000 in total over the next five years. Future contractual maturities of Series I payable, and future amortization of their deferred financing costs, at March 31, 2017 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Nine months ending December 31, 2017 $ 4,538,000 $ 11,000 2018 2,401,000 34,000 2019 1,024,000 18,000 2020 1,725,000 48,000 2021 941,000 52,000 $ 10,629,000 $ 163,000

L Bonds

L Bonds	3 Months Ended
	Mar. 31, 2017
L Bonds [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 March 31, 2017 and December 31, 2016. Effective September 1, 2016, we ceased selling 6-month and 1-year L Bonds until further notice. In addition, effective September 1, 2016, the L Bond interest rates that we offer 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 March 31, 2017 and December 31, 2016, the weighted-average interest rate of our L Bonds was 7.28% and 7.23%, respectively. The principal amount of L Bonds outstanding was $391,871,000 and $387,067,000 at March 31, 2017 and December 31, 2016, 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 and payments of redemptions in process. Amortization of deferred issuance costs was $1,929,000 and $1,568,000 for the three months ended March 31, 2017 and 2016, respectively. Future expected amortization of deferred financing costs as of March 31, 2017 is $12,197,000 in total over the next seven years. Future contractual maturities of L Bonds, and future amortization of their deferred financing costs, at March 31, 2017 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Nine months ending December 31, 2017 $ 70,454,000 $ 670,000 2018 109,034,000 2,511,000 2019 103,420,000 3,643,000 2020 37,055,000 1,565,000 2021 28,901,000 1,438,000 Thereafter 43,007,000 2,370,000 $ 391,871,000 $ 12,197,000

Series A Convertible Preferred

Series A Convertible Preferred Stock	3 Months Ended
	Mar. 31, 2017
Series A Convertible Preferred Stock [Abstract]
Series A Convertible Preferred Stock	(9) Series A Convertible Preferred Stock From July 2011 until September 2012, we privately offered shares of 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 accumulating and are recorded as a reduction to additional paid-in capital. 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 a price of $10.00 per share. As of March 31, 2017, we issued an aggregate of 497,000 shares of Series A in satisfaction of $3,481,000 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 March 31, 2017, we had 2,652,000 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 March 31, 2017, none of these warrants had been exercised and 107,000 warrants have expired. The weighted-average remaining life of these warrants was 0.35 and 0.56 years at March 31, 2017 and December 31, 2016, respectively. In September 2014, we completed, at our discretion, 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 at a price equal to 110% of their liquidation preference ($7.50 per share) at any time. As of March 31, 2017, we have redeemed an aggregate of 435,365 shares of Series A.

Redeemable Preferred Stock

Redeemable Preferred Stock	3 Months Ended
	Mar. 31, 2017
Redeemable Preferred Stock [Abstract]
Redeemable Preferred Stock	(10) Redeemable Preferred Stock On November 30, 2015, our public offering of up to 100,000 shares of Redeemable Preferred Stock (“RPS”) at $1,000 per share was declared effective. Holders of RPS are entitled to cumulative dividends at the rate of 7% per annum, paid monthly. Dividends on the RPS are recorded as a reduction to additional paid-in capital. 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 still held by such holder. Holders of RPS may request that we redeem their RPS 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 complete discretion to grant or decline redemption requests. 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 March 31, 2017, we had sold 87,131 shares of RPS for aggregate gross consideration of $87,131,000, and incurred approximately $6,092,000 of selling costs related to the sale of those shares. Subsequent to March 31, 2017, we closed the RPS offering to additional investors. At the time of its issuance, we determined that the RPS contained two embedded features: (1) optional redemption by the holder and (2) optional conversion by the holder. We determined that each of the embedded features met the definition of a derivative and that the RPS should be considered an equity host for the purposes of assessing the embedded derivatives for potential bifurcation. Based on our assessment under ASC 470 “Debt” we do not believe bifurcation of either the holder’s redemption or conversion feature is appropriate.

Series 2 Redeemable Preferred S

Series 2 Redeemable Preferred Stock	3 Months Ended
	Mar. 31, 2017
Series Two Redeemable Preferred Stock [Abstract]
Series 2 Redeemable Preferred Stock	(11) Series 2 Redeemable Preferred Stock On February 14, 2017, our public offering of up to 150,000 shares of Series 2 Redeemable Preferred Stock (“RPS 2”) at $1,000 per share was declared effective. Holders of RPS 2 are entitled to cumulative dividends at the rate of 7% per annum, paid monthly. Dividends on the RPS 2, when payable, will be recorded as a reduction to additional paid-in capital. Under certain circumstances described in the Certificate of Designation for the RPS 2, additional shares of RPS 2 may be issued in lieu of cash dividends. The RPS 2 ranks senior to our common stock and pari passu with our Series A and RPS, 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 2 may, less an applicable conversion discount, if any, convert their RPS 2 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 $12.75 and in an aggregate amount limited to 10% of the stated value of RPS 2. Holders of RPS 2 may request that we redeem their RPS 2 shares at a price equal to their liquidation preference, less an applicable redemption fee, if any. Nevertheless, the Certificate of Designation for RPS 2 permits us complete discretion to grant or decline requests for redemption. Subject to certain restrictions and conditions, we may also redeem shares of RPS 2 without a redemption fee upon a holder’s death, total disability or bankruptcy. In addition, we may, at our option, call and redeem shares of RPS 2 at a price equal to their liquidation preference (subject to a minimum redemption price, in the event of redemptions occurring less than one year after issuance, of 107% of the stated value of the shares being redeemed). As of March 31, 2017 we had not sold any shares of RPS 2.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
Income Taxes	(12) Income Taxes We had a current income tax liability of $0 as of both March 31, 2017 and December 31, 2016. The components of deferred income tax expense (benefit) for the three months ended March 31, 2017 and 2016, respectfully, consisted of the following: Three Months Ended March 31, March 31, Income tax: Current: Federal $ 27,000 $ 23,000 State 7,500 6,000 Total current tax expense 34,500 29,000 Deferred: Federal $ (20,000 ) $ 806,000 State (15,000 ) 250,000 Total deferred tax expense (benefit) (36,000 ) 1,056,000 Total income tax expense (benefit) $ (500 ) $ 1,085,000 We provide for a valuation allowance when it is not considered “more likely than not” that our deferred tax assets will be realized. At both March 31, 2017 and December 31, 2016, based upon all available evidence, we provided a valuation allowance of $2,164,000 against deferred tax assets related to the likelihood of recovering the tax benefit of a capital loss on a note receivable from a related entity and other capital losses. Management believes all other deferred tax assets are recoverable. ASC 740 requires the reporting of certain tax positions that do not meet a threshold of “more-likely-than-not” to be recorded as uncertain tax benefits. It is management’s responsibility to determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation, based upon the technical merits of the position. Management has reviewed all income tax positions taken or expected to be taken for all open years and determined that the income tax positions are appropriately stated and supported. We do not anticipate that the total unrecognized tax benefits will significantly change prior to March 31, 2017. Under our accounting policies, interest and penalties on unrecognized tax benefits, as well as interest received from favorable tax settlements, are recognized as components of income tax expense. At March 31, 2017 and December 31, 2016, we recorded no accrued interest or penalties related to uncertain tax positions. Our income tax returns for tax years ended December 31, 2013, 2014, 2015 and 2016 remain open to examination by the Internal Revenue Service and various state taxing jurisdictions. Our tax return for tax year 2012 has now been examined by the IRS (finalized April of 2015) but is open for examination by various state taxing jurisdictions.

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2017
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 February 16, 2017, GWG Holdings, Inc. entered into a Separation Agreement with Mr. Paul Siegert. Under this agreement, Mr. Siegert retired and resigned his position on our Board of Directors, including his role as Chairman of the Board. In addition, we agreed to and did repurchase in cash Mr. Siegert’s 200,445 shares of GWG common stock at a negotiated price of $8 per share for an aggregate price of approximately $1,604,000.

Stock Incentive Plan

Stock Incentive Plan	3 Months Ended
	Mar. 31, 2017
Stock Incentive Plan [Abstract]
Stock Incentive Plan	(14) Stock Incentive Plan We adopted our 2013 Stock Incentive Plan in March 2013. The Compensation Committee of our Board of Directors is responsible for the administration of the plan. Participants 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. As of March 31, 2017, 2,000,000 common stock options are issuable under the plan. Stock Options Through March 31, 2017, we had issued stock options for 1,565,000 shares of common stock to employees, officers, and directors under the plan. Options for 753,000 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 $4.83 and $10.25 for all others, which is equal to the estimated market price of the shares on the date of grant. The expected annualized volatility used in the Black-Scholes model valuation of options issued during the period was 23.4%. 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 March 31, 2017, stock options for 480,000 shares had been forfeited and stock options for 28,000 shares had been exercised. Outstanding stock options: Vested Unvested Total Balance as of December 31, 2015 483,703 569,912 1,053,615 Granted during the year 22,500 608,350 630,850 Vested during the year 251,788 (251,788 ) - Forfeited during the year (19,926 ) (82,140 ) (102,066 ) Balance as of December 31, 2016 738,065 844,334 1,582,399 Granted during the quarter 17,100 7,800 24,900 Vested during the quarter 33,640 (33,640 ) - Forfeited during the quarter (36,119 ) (6,665 ) (42,784 ) Balance as of March 31, 2017 752,686 811,829 1,564,515 Compensation expense related to unvested options not yet recognized is $512,000. We expect to recognize this compensation expense over the next three years ($251,000 in 2017, $158,000 in 2018, and $103,000 in 2019). Stock Appreciation Rights (SARs) As of March 31, 2017, we have issued SARs for 249,797 shares of common stock to employees. The strike price of the SARs was between $7.84 and $8.76, which was equal to the market price of the common stock at the date of issuance. As of March 31, 2017, 107,857 of the SARs were vested. On March 31, 2017 the market price of GWG’s common stock was $11.10. Outstanding Stock Appreciation Rights: Vested Unvested Total Balance as of December 31, 2015 - - - Granted during the year 106,608 133,127 239,735 Forfeited during the year - - - Balance as of December 31, 2016 106,608 133,127 239,735 Granted during the quarter - 10,062 10,062 Vested during the quarter 1,249 (1,249 ) - Balance as of March 31, 2017 107,857 141,940 249,797 A liability for the SARs was recorded on March 31, 2017 in the amount of $294,000 and compensation expense was charged for the amount of $289,000. Our SARs entitle the participant to a payment in cash.

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Mar. 31, 2017
Net Income Per Common Share [Abstract]
Net income per common share	(15) Net income per common share We have outstanding Series A and RPS, as described in Notes 9 and 10. The Series A and RPS are anti-dilutive to our net loss or income attributable to common shareholders calculation at both March 31, 2017 and 2016. 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 at both March 31, 2017 and 2016 and have not been included in the fully diluted net loss per common share calculation.

Commitments

Commitments	3 Months Ended
	Mar. 31, 2017
Commitments/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 2026. 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 this agreement were $113,000 and $224,000 during the three months ended March 2017 and 2016, respectively. Minimum lease payments under the amended lease are as follows: Nine months ending December 31, 2017 $ 135,000 2018 185,000 2019 191,000 2020 198,000 2021 204,000 2022 210,000 2023 217,000 2024 223,000 2025 230,000 $ 1,793,000

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments/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	3 Months Ended
	Mar. 31, 2017
Guarantee of L Bonds [Abstract]
Guarantee of L Bonds	(18) Guarantee of L Bonds We are publicly offering and selling L Bonds 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 our 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 our life insurance policies are held by DLP III, DLP IV and the Trust. The policies held by DLP III and DLP IV are not collateral for the L Bond obligations as such policies 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 described in these notes. A majority of insurance policies we own are subject to a collateral arrangement with LNV Corporation described in Note 6. Under this arrangement, collection and escrow accounts are used to fund premiums for the insurance policies and to pay interest and other charges under the senior credit facility. The following represents consolidating financial information as of March 31, 2017 and December 31, 2016, with respect to the financial position, and as of March 31, 2017 and 2016, 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 March 31, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 46,110,677 $ 2,851,438 $ 971,221 $ - $ 49,933,336 Restricted cash - 3,560,333 44,531,256 - 48,091,589 Investment in life insurance policies, at fair value - 41,841,894 503,554,652 - 545,396,546 Secured MCA advances - - 5,005,400 - 5,005,400 Life insurance policy benefits receivable - 600,000 8,375,000 - 8,975,000 Other assets 2,841,802 1,760,967 55,420 (1,340,497 ) 3,317,692 Investment in subsidiaries 438,054,807 398,737,862 - (836,792,669 ) - TOTAL ASSETS $ 487,007,286 $ 449,352,494 $ 562,492,949 $ (838,133,166 ) $ 660,719,563 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 LIABILITIES Senior credit facilities $ - $ - $ 153,387,813 $ - $ 153,387,813 Series I Secured Notes - 11,000,368 - - 11,000,368 L Bonds 383,315,514 - - - 383,315,514 Accounts payable 589,962 614,243 1,480,714 - 2,684,919 Interest and dividends payable 9,786,908 3,524,097 2,983,818 (6,905 ) 16,287,918 Other accrued expenses 1,263,152 721,931 1,339,790 (1,333,592 ) 1,991,281 Deferred taxes, net 2,096,871 - - - 2,096,871 TOTAL LIABILITIES 397,052,407 15,860,639 159,192,135 (1,340,497 ) 570,764,684 STOCKHOLDERS’ EQUITY Member’s capital - 433,491,855 403,300,814 (836,792,669 ) - Convertible preferred stock 19,771,744 - - - 19,771,744 Redeemable preferred stock 87,130,977 - - - 87,130,977 Common stock 5,780 - - - 5,780 Additional paid-in capital 1,908,774 - - - 1,908,774 Accumulated deficit (18,862,396 ) - - - (18,862,396 ) TOTAL STOCKHOLDERS’ EQUITY 89,954,879 433,491,855 403,300,814 (836,792,669 ) 89,954,879 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 487,007,286 $ 449,352,494 $ 562,492,949 $ (838,133,166 ) $ 660,719,563 December 31, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 28,481,047 $ 49,360,952 $ 644,983 $ - $ 78,486,982 Restricted cash - 2,117,649 35,708,947 - 37,826,596 Investment in life insurance policies, at fair value - 41,277,896 469,914,458 - 511,192,354 Secured MCA advances - - 5,703,147 - 5,703,147 Life insurance policy benefits receivable - - 5,345,000 - 5,345,000 Other assets 3,854,233 2,056,822 810,640 (2,033,592 ) 4,688,103 Investment in subsidiaries 429,971,148 352,337,037 - (782,308,185 ) - TOTAL ASSETS $ 462,306,428 $ 447,150,356 $ 518,127,175 $ (784,341,777 ) $ 643,242,182 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 LIABILITIES Senior credit facilities $ - $ - $ 156,064,818 $ - $ 156,064,818 Series I Secured Notes - 16,404,836 - - 16,404,836 L Bonds 381,312,587 - - - 381,312,587 Accounts payable 853,470 731,697 641,545 - 2,226,712 Interest and dividends payable 9,882,133 3,743,277 2,535,189 - 16,160,599 Other accrued expenses 862,369 544,032 2,303,952 (2,033,592 ) 1,676,761 Deferred taxes, net 2,097,371 - - - 2,097,371 TOTAL LIABILITIES 395,007,930 21,423,842 161,545,504 (2,033,592 ) 575,943,684 STOCKHOLDERS’ EQUITY Member’s capital - 425,726,514 356,581,671 (782,308,185 ) - Convertible preferred stock 19,701,133 - - - 19,701,133 Redeemable preferred stock 59,025,164 - - - 59,025,164 Common stock 5,980 - - - 5,980 Additional paid-in capital 7,383,515 - - - 7,383,515 Accumulated deficit (18,817,294 ) - - - (18,817,294 ) TOTAL STOCKHOLDERS’ EQUITY 67,298,498 425,726,514 356,581,671 (782,308,185 ) 67,298,498 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 462,306,428 $ 447,150,356 $ 518,127,175 $ (784,341,777 ) $ 643,242,182 Condensed Consolidating Statements of Operations For the three months ended March 31, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 53,025 $ - $ (53,025 ) $ - Gain on life insurance policies, net - 1,499,327 17,900,492 - 19,399,819 MCA income - - 246,577 - 246,577 Interest and other income 85,008 18,875 379,086 (41,020 ) 441,949 TOTAL REVENUE 85,008 1,571,227 18,526,155 (94,045 ) 20,088,345 EXPENSES Policy servicing fees - - 53,025 (53,025 ) - Interest expense 9,262,034 286,354 3,736,847 (41,020 ) 13,244,215 Employee compensation and benefits 1,928,796 1,221,582 12,684 - 3,163,062 Legal and professional fees 492,816 261,087 192,445 - 946,348 Other expenses 1,663,002 882,731 234,589 - 2,780,322 TOTAL EXPENSES 13,346,648 2,651,754 4,229,590 (94,045 ) 20,133,947 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (13,261,640 ) (1,080,527 ) 14,296,565 - (45,602 ) EQUITY IN INCOME OF SUBSIDIARIES 13,216,038 14,064,207 - (27,280,245 ) - NET INCOME (LOSS) BEFORE INCOME TAXES (45,602 ) 12,983,680 14,296,565 (27,280,245 ) (45,602 ) INCOME TAX BENEFIT (500 ) - - - (500 ) NET INCOME (LOSS) (45,102 ) 12,983,680 14,296,565 (27,280,245 ) (45,102 ) Preferred stock dividends (1,867,760 ) - - - (1,867,760 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (1,912,862 ) $ 12,983,680 $ 14,296,565 $ (27,280,245 ) $ (1,912,862 ) For the three months ended March 31, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance policies, net - - 17,713,712 - 17,713,712 MCA income - - 144,961 - 144,961 Interest and other income 34,798 306 41,018 (30,902 ) 45,220 TOTAL REVENUE 34,798 13,723 17,899,691 (44,319 ) 17,903,893 EXPENSES Policy servicing fees - - 13,417 (13,417 ) - Interest expense 7,087,593 657,236 1,435,228 (30,902 ) 9,149,155 Employee compensation and benefits 1,536,430 829,081 100,686 - 2,466,197 Legal and professional fees 594,739 534,650 76,739 - 1,206,128 Other expenses 1,257,977 968,674 185,509 - 2,412,160 TOTAL EXPENSES 10,476,739 2,989,641 1,811,579 (44,319 ) 15,233,640 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (10,441,941 ) (2,975,918 ) 16,088,112 - 2,670,253 EQUITY IN INCOME OF SUBSIDIARIES 13,112,194 16,301,366 - (29,413,560 ) - NET INCOME BEFORE INCOME TAXES 2,670,253 13,325,448 16,088,112 (29,413,560 ) 2,670,253 INCOME TAX EXPENSE 1,084,717 - - - 1,084,717 NET INCOME 1,585,536 13,325,448 16,088,112 (29,413,560 ) 1,585,536 Preferred stock dividends (511,231 ) - - - (511,231 ) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 1,074,305 $ 13,325,448 $ 16,088,112 $ (29,413,560 ) $ 1,074,305 - 21 - GWG HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiary Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (45,102 ) $ 12,983,680 $ 14,296,565 $ (27,280,245 ) $ (45,102 ) Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (13,216,038 ) (14,064,207 ) - 27,280,245 - Change in fair value of life insurance policies - (1,059,422 ) (12,824,411 ) - (13,883,833 ) Amortization of deferred financing and issuance costs 1,928,993 45,420 691,790 - 2,666,203 Deferred income taxes (500 ) - - - (500 ) Preferred stock dividends payable 336,789 - - - 336,789 (Increase) decrease in operating assets: Life insurance policy benefits receivable - (600,000 ) (3,030,000 ) - (3,630,000 ) Other assets 5,507,945 (32,041,085 ) 755,219 27,204,239 1,426,318 Increase (decrease) in operating liabilities: Due to related party 691,865 320 (700,000 ) - (7,815 ) Accounts payable and other accrued expenses 424,968 (158,732 ) 950,996 - 1,217,232 NET CASH FLOWS USED IN OPERATING ACTIVITIES (4,371,080 ) (34,894,026 ) 140,159 27,204,239 (11,920,708 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (22,689,333 ) - (22,689,333 ) Carrying value of matured life insurance policies - 495,424 1,873,550 - 2,368,974 Proceeds from Secured MCA advances - 770,387 - 770,0387 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 495,424 (20,045,396 ) - (19,549,972 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayments of senior credit facilities - - (3,368,794 ) - (3,368,794 ) Payments for redemption of Series I Secured Notes - (5,449,889 ) - - (5,449,889 ) Proceeds from issuance of L Bonds 24,868,659 - - - 24,868,659 Payment for redemption and issuance of L Bonds (24,171,597 ) - - - (24,171,597 ) Payments to restricted cash - (1,442,684 ) (8,822,309 ) - (10,264,993 ) Repurchase of common stock (1,603,560 ) - - - (1,603,560 ) Proceeds from issuance of preferred stock 27,179,194 - - - 27,179,194 Payments for issuance and redemption of preferred stock (2,404,226 ) - - - (2,404,226 ) Payments of preferred stock dividends (1,867,760 ) (1,867,760 ) Issuance of member capital - (5,218,339 ) 32,422,578 (27,204,239 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 22,000,710 (12,110,912 ) 20,231,475 (27,204,239 ) 2,917,034 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 17,629,630 (46,509,514 ) 326,238 - (28,553,646 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 28,481,047 49,360,952 644,983 - 78,486,982 END OF THE PERIOD $ 46,110,677 $ 2,851,438 $ 971,221 $ - $ 49,933,336 For the three months ended March 31, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiary Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,585,536 $ 13,325,448 $ 16,088,112 $ (29,413,560 ) $ 1,585,536 Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (13,112,194 ) (16,301,366 ) - 29,413,560 - Change in fair value of life insurance policies - - (11,531,553 ) - (11,531,553 ) Amortization of deferred financing and issuance costs 1,648,891 (1,164,206 ) 299,503 - 784,188 Deferred income taxes 1,055,729 - - - 1,055,729 Preferred stock dividends payable 163,577 - - - 163,577 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (15,912,839 ) - (15,912,839 ) Other assets (38,661,205 ) (24,992,068 ) - 63,826,699 173,426 Increase (decrease) in operating liabilities: Due to related party (2,731,001 ) (16,607 ) 4,460,000 - 1,712,392 Accounts payable and other accrued expenses 782,047 586,702 599,220 - 1,967,969 NET CASH FLOWS USED IN OPERATING ACTIVITIES (49,268,620 ) (28,562,097 ) (5,997,557 ) 63,826,699 (20,001,575 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (24,326,322 ) - (24,326,322 ) Carrying value of matured life insurance policies - - 4,610,479 - 4,610,479 Investments in Secured MCA advances - - (4,353,585 ) - (4,353,585 ) Proceeds from Secured MCA advances - 118,143 - 118,143 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (23,951,285 ) - (23,951,285 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 20,000,000 - 20,000,000 Payments for redemption of Series I Secured Notes - (5,237,393 ) - - (5,237,393 ) Proceeds from issuance of L Bonds 34,368,889 - - - 34,368,889 Payment issuance and redemption of L Bonds (10,909,693 ) - - - (10,909,693 ) Payments to restricted cash - (2,705,379 ) (14,781,341 ) - (17,486,720 ) Issuance of common stock 46,545 - - - 46,545 Proceeds from issuance of preferred stock 1,028,536 - - - 1,028,536 Payments for issuance and redemption of preferred stock (772,553 ) - - - (772,553 ) Payments of preferred stock dividends (511,231 ) (511,231 ) Issuance of member capital - 38,862,512 24,964,187 (63,826,699 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 23,250,493 30,919,740 30,182,846 (63,826,699 ) 20,526,380 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (26,018,127 ) 2,357,643 234,004 - (23,426,480 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 6,274,035 $ 4,340,365 $ 384,225 $ - $ 10,998,625

Concentration

Concentration	3 Months Ended
	Mar. 31, 2017
Concentration [Abstract]
Concentration	(19) Concentration We purchase life insurance policies written by life insurance companies having investment-grade ratings by independent rating agencies. As a result, there may be certain concentrations of policies with life insurance companies. The following summarizes the face value of insurance policies with specific life insurance companies exceeding 10% of the total face value of our portfolio. March 31, December 31, Life insurance company 2017 2016 John Hancock 14.68 % 14.36 % AXA Equitable 12.96 % 13.42 % Lincoln National 11.43 % 11.22 % Transamerica 10.11 % * * percentage does not exceed 10% of the total face value. The following summarizes the number of insurance policies held in specific states exceeding 10% of the total face value held by us: March 31, December 31, State of residence 2017 2016 California 20.05 % 20.72 % Florida 19.92 % 19.42 %

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	(20) Subsequent Events Subsequent to March 31, 2017, we have issued approximately an additional $9,817,000 in principal amount of L Bonds. Subsequent to March 31, 2017 we have issued approximately $11,691,000 of RPS. Our RPS offering was sold out subsequent to March 31, 2017. Subsequent to March 31, 2017 we have issued approximately $7,359,000 of RPS 2. On April 17, 2017, Jon Gangelhoff, Chief Operating Officer, voluntarily resigned. As a separation payment, Mr. Gangelhoff will continue to receive his regular salary payments (annualized to approximately $250,000) through April 2018. All of Mr. Gangelhoff’s unvested outstanding common stock options at the time of his separation were vested under the separation agreement. On April 17, 2017, we announced the voluntary resignation of Michael Freedman, President, which will be effective May 15, 2017. As a separation payment, Mr. Freedman will receive compensation through the term of his Employment Agreement ending September 22, 2017 (aggregating to $258,000). Mr. Freedman will surrender all of his vested and unvested options to purchase our common stock. Subsequent to March 31, 2017 an additional 27,000 of stock options were exercised. On April 26, 2017, we entered into an exclusive license for the “DNA Methylation Based Predictor of Mortality” technology from the University of California, Los Angeles (“UCLA”), for application within the life insurance and related industries. On May 5, 2017, our stockholders approved a 1,000,000-share increase in the number of shares of common stock reserved and available for issuance under our 2013 Stock Incentive Plan. As a result, an aggregate of 3,000,000 shares of common stock are now reserved and available for issuance under that plan.

Nature of Business and Summar27

Nature of Business and Summary of Significant Accounting Policies(Policies)	3 Months Ended
	Mar. 31, 2017
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 Policies	Life Insurance Policies In a case where our acquisition of a policy 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 have secured title to the policy. On both March 31, 2017 and December 31, 2016, a total of $42,000 of our “other assets” comprised direct costs and deposits that we advanced for policy acquisitions. We also recognize realized gain (or loss) from a life insurance policy upon one of the two following events: (1) our receipt of notice or verified mortality of the insured; or (2) our sale of the policy, 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 policy benefits and the carrying values of the policy once we determine that collection of the policy benefits is realizable and reasonably assured. In the case of a policy sale, the gain (or loss) we recognize is the difference between the sale price and the carrying value of the policy on the date we receive sale proceeds.
Other Assets	Other Assets
Stock-Based Compensation	Stock-Based Compensation The expected terms of the options are based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at grant date. Volatility is based on the standard deviation of the average continuously compounded rate of return of five selected comparable companies over the previous 52 weeks. We have not historically issued any common stock dividends and do not expect to do so in the foreseeable future. Forfeitures for both option and restricted stock grants are estimated at the time of the grant and revised in subsequent periods if actual forfeitures differ from estimates.
Deferred Financing and Issuance Costs	Deferred Financing and Issuance Costs
Earnings (loss) per Share	Earnings (loss) per Share
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements On April 7, 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs On February 25, 2016, the FASB issued ASU 2016-02 Leases

Investment in Life Insurance 28

Investment in Life Insurance Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Investment in Life Insurance Policies [Abstract]
Summary of life insurance policies accounted for under the fair value method	As of March 31, 2017 As of December 31, 2016 Years Ending December 31, Number of Contracts Estimated Fair Value Face Value Number of Contracts Estimated Fair Value Face Value 2017 6 3,861,000 4,375,000 11 14,837,000 16,939,000 2018 19 27,200,000 35,893,000 23 30,830,000 42,564,000 2019 70 74,557,000 112,510,000 55 57,556,000 88,858,000 2020 87 79,279,000 143,812,000 93 85,414,000 159,814,000 2021 91 80,357,000 166,349,000 86 73,825,000 158,744,000 2022 74 62,786,000 153,016,000 66 56,909,000 147,222,000 2023 72 49,018,000 142,501,000 64 44,953,000 128,581,000 Thereafter 334 168,339,000 689,102,000 292 146,868,000 618,953,000 Totals 753 $ 545,397,000 $ 1,447,558,000 690 $ 511,192,000 1,361,675,000
Schedule of reconciliation of gain on life insurance	Three Months Ended: March 31, March 31, Change in fair value $ 13,884,000 $ 11,532,000 Premiums and other annual fees (11,090,000 ) (8,445,000 ) Policy maturities 16,606,000 14,627,000 Gain on life settlements, net $ 19,400,000 $ 17,714,000
Schedule of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities	Years Ending December 31, Premiums Servicing Premiums and Nine months ending December 31, 2017 $ 35,228,000 $ 654,000 $ 35,882,000 2018 51,895,000 654,000 52,549,000 2019 57,632,000 654,000 58,286,000 2020 62,464,000 654,000 63,118,000 2021 70,222,000 654,000 70,876,000 2022 78,953,000 654,000 79,607,000 $ 356,394,000 $ 3,924,000 $ 360,318,000

Fair Value Definition and Hie29

Fair Value Definition and Hierarchy (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Definition and Hierarchy [Abstract]
Reconciliation of investments in life insurance policies	Three Months Ended 2017 2016 Beginning balance $ 511,192,000 $ 356,650,000 Purchases 22,690,000 23,831,000 Maturities (initial cost basis) (2,369,000 ) (4,611,000 ) Net change in fair value 13,884,000 11,532,000 Ending balance $ 545,397,000 $ 387,402,000
Summary of inputs utilized in estimating the fair value of life insurance policies	As of March 31, 2017 As of December 31, Weighted-average age of insured, years 81.5 81.6 Weighted-average life expectancy, months 83.0 83.2 Average face amount per policy $ 1,922,000 $ 1,973,000 Discount rate 10.96 % 10.96 %
Summary of change in fair value of the investment in life insurance policies	Change in life expectancy estimates minus 8 months minus 4 months plus 4 months plus 8 months March 31, 2017 $ 74,249,000 $ 36,972,000 $ (36,277,000 ) $ (71,802,000 ) December 31, 2016 $ 69,253,000 $ 34,601,000 $ (33,846,000 ) $ (67,028,000 ) Change in discount rate minus 2% minus 1% plus 1% plus 2% March 31, 2017 $ 57,001,000 $ 27,278,000 $ (25,096,000 ) $ (48,239,000 ) December 31, 2016 $ 53,764,000 $ 25,728,000 $ (23,668,000 ) $ (45,491,000 )
Summary of outstanding warrants	Month issued Warrants issued Fair value per share Risk free rate Volatility Term 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 324,887

Series I Secured Notes (Tables)

Series I Secured Notes (Tables)	3 Months Ended
	Mar. 31, 2017
Series I Secured Notes [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 Nine months ending December 31, 2017 $ 4,538,000 $ 11,000 2018 2,401,000 34,000 2019 1,024,000 18,000 2020 1,725,000 48,000 2021 941,000 52,000 $ 10,629,000 $ 163,000

L Bonds (Tables)

L Bonds (Tables)	3 Months Ended
	Mar. 31, 2017
L Bonds [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 Nine months ending December 31, 2017 $ 70,454,000 $ 670,000 2018 109,034,000 2,511,000 2019 103,420,000 3,643,000 2020 37,055,000 1,565,000 2021 28,901,000 1,438,000 Thereafter 43,007,000 2,370,000 $ 391,871,000 $ 12,197,000

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
Schedule of deferred income tax expense	Three Months Ended March 31, March 31, Income tax: Current: Federal $ 27,000 $ 23,000 State 7,500 6,000 Total current tax expense 34,500 29,000 Deferred: Federal $ (20,000 ) $ 806,000 State (15,000 ) 250,000 Total deferred tax expense (benefit) (36,000 ) 1,056,000 Total income tax expense (benefit) $ (500 ) $ 1,085,000

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2017
Stock Incentive Plan [Abstract]
Schedule of outstanding stock options	Vested Unvested Total Balance as of December 31, 2015 483,703 569,912 1,053,615 Granted during the year 22,500 608,350 630,850 Vested during the year 251,788 (251,788 ) - Forfeited during the year (19,926 ) (82,140 ) (102,066 ) Balance as of December 31, 2016 738,065 844,334 1,582,399 Granted during the quarter 17,100 7,800 24,900 Vested during the quarter 33,640 (33,640 ) - Forfeited during the quarter (36,119 ) (6,665 ) (42,784 ) Balance as of March 31, 2017 752,686 811,829 1,564,515
Schedule of outstanding stock appreciation rights	Vested Un-vested Total Balance as of December 31, 2015 - - - Granted during the year 106,608 133,127 239,735 Forfeited during the year - - - Balance as of December 31, 2016 106,608 133,127 239,735 Granted during the quarter - 10,062 10,062 Vested during the quarter 1,249 (1,249 ) - Balance as of March 31, 2017 107,857 141,940 249,797

Commitments (Tables)

Commitments (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments/Contingencies [Abstract]
Schedule of minimum lease payments under amendment lease	Nine months ending December 31, 2017 $ 135,000 2018 185,000 2019 191,000 2020 198,000 2021 204,000 2022 210,000 2023 217,000 2024 223,000 2025 230,000 $ 1,793,000

Guarantee of L Bonds (Tables)

Guarantee of L Bonds (Tables)	3 Months Ended
	Mar. 31, 2017
Guarantee of L Bonds [Abstract]
Schedule of condensed consolidating balance sheets	March 31, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 46,110,677 $ 2,851,438 $ 971,221 $ - $ 49,933,336 Restricted cash - 3,560,333 44,531,256 - 48,091,589 Investment in life insurance policies, at fair value - 41,841,894 503,554,652 - 545,396,546 Secured MCA advances - - 5,005,400 - 5,005,400 Life insurance policy benefits receivable - 600,000 8,375,000 - 8,975,000 Other assets 2,841,802 1,760,967 55,420 (1,340,497 ) 3,317,692 Investment in subsidiaries 438,054,807 398,737,862 - (836,792,669 ) - TOTAL ASSETS $ 487,007,286 $ 449,352,494 $ 562,492,949 $ (838,133,166 ) $ 660,719,563 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 LIABILITIES Senior credit facilities $ - $ - $ 153,387,813 $ - $ 153,387,813 Series I Secured Notes - 11,000,368 - - 11,000,368 L Bonds 383,315,514 - - - 383,315,514 Accounts payable 589,962 614,243 1,480,714 - 2,684,919 Interest and dividends payable 9,786,908 3,524,097 2,983,818 (6,905 ) 16,287,918 Other accrued expenses 1,263,152 721,931 1,339,790 (1,333,592 ) 1,991,281 Deferred taxes, net 2,096,871 - - - 2,096,871 TOTAL LIABILITIES 397,052,407 15,860,639 159,192,135 (1,340,497 ) 570,764,684 STOCKHOLDERS’ EQUITY Member’s capital - 433,491,855 403,300,814 (836,792,669 ) - Convertible preferred stock 19,771,744 - - - 19,771,744 Redeemable preferred stock 87,130,977 - - - 87,130,977 Common stock 5,780 - - - 5,780 Additional paid-in capital 1,908,774 - - - 1,908,774 Accumulated deficit (18,862,396 ) - - - (18,862,396 ) TOTAL STOCKHOLDERS’ EQUITY 89,954,879 433,491,855 403,300,814 (836,792,669 ) 89,954,879 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 487,007,286 $ 449,352,494 $ 562,492,949 $ (838,133,166 ) $ 660,719,563 December 31, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 28,481,047 $ 49,360,952 $ 644,983 $ - $ 78,486,982 Restricted cash - 2,117,649 35,708,947 - 37,826,596 Investment in life insurance policies, at fair value - 41,277,896 469,914,458 - 511,192,354 Secured MCA advances - - 5,703,147 - 5,703,147 Life insurance policy benefits receivable - - 5,345,000 - 5,345,000 Other assets 3,854,233 2,056,822 810,640 (2,033,592 ) 4,688,103 Investment in subsidiaries 429,971,148 352,337,037 - (782,308,185 ) - TOTAL ASSETS $ 462,306,428 $ 447,150,356 $ 518,127,175 $ (784,341,777 ) $ 643,242,182 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 LIABILITIES Senior credit facilities $ - $ - $ 156,064,818 $ - $ 156,064,818 Series I Secured Notes - 16,404,836 - - 16,404,836 L Bonds 381,312,587 - - - 381,312,587 Accounts payable 853,470 731,697 641,545 - 2,226,712 Interest and dividends payable 9,882,133 3,743,277 2,535,189 - 16,160,599 Other accrued expenses 862,369 544,032 2,303,952 (2,033,592 ) 1,676,761 Deferred taxes, net 2,097,371 - - - 2,097,371 TOTAL LIABILITIES 395,007,930 21,423,842 161,545,504 (2,033,592 ) 575,943,684 STOCKHOLDERS’ EQUITY Member’s capital - 425,726,514 356,581,671 (782,308,185 ) - Convertible preferred stock 19,701,133 - - - 19,701,133 Redeemable preferred stock 59,025,164 - - - 59,025,164 Common stock 5,980 - - - 5,980 Additional paid-in capital 7,383,515 - - - 7,383,515 Accumulated deficit (18,817,294 ) - - - (18,817,294 ) TOTAL STOCKHOLDERS’ EQUITY 67,298,498 425,726,514 356,581,671 (782,308,185 ) 67,298,498 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 462,306,428 $ 447,150,356 $ 518,127,175 $ (784,341,777 ) $ 643,242,182
Schedule of condensed consolidating statements of operations	For the three months ended March 31, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 53,025 $ - $ (53,025 ) $ - Gain on life insurance policies, net - 1,499,327 17,900,492 - 19,399,819 MCA income - - 246,577 - 246,577 Interest and other income 85,008 18,875 379,086 (41,020 ) 441,949 TOTAL REVENUE 85,008 1,571,227 18,526,155 (94,045 ) 20,088,345 EXPENSES Policy servicing fees - - 53,025 (53,025 ) - Interest expense 9,262,034 286,354 3,736,847 (41,020 ) 13,244,215 Employee compensation and benefits 1,928,796 1,221,582 12,684 - 3,163,062 Legal and professional fees 492,816 261,087 192,445 - 946,348 Other expenses 1,663,002 882,731 234,589 - 2,780,322 TOTAL EXPENSES 13,346,648 2,651,754 4,229,590 (94,045 ) 20,133,947 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (13,261,640 ) (1,080,527 ) 14,296,565 - (45,602 ) EQUITY IN INCOME OF SUBSIDIARIES 13,216,038 14,064,207 - (27,280,245 ) - NET INCOME (LOSS) BEFORE INCOME TAXES (45,602 ) 12,983,680 14,296,565 (27,280,245 ) (45,602 ) INCOME TAX BENEFIT (500 ) - - - (500 ) NET INCOME (LOSS) (45,102 ) 12,983,680 14,296,565 (27,280,245 ) (45,102 ) Preferred stock dividends (1,867,760 ) - - - (1,867,760 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (1,912,862 ) $ 12,983,680 $ 14,296,565 $ (27,280,245 ) $ (1,912,862 ) For the three months ended March 31, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance policies, net - - 17,713,712 - 17,713,712 MCA income - - 144,961 - 144,961 Interest and other income 34,798 306 41,018 (30,902 ) 45,220 TOTAL REVENUE 34,798 13,723 17,899,691 (44,319 ) 17,903,893 EXPENSES Policy servicing fees - - 13,417 (13,417 ) - Interest expense 7,087,593 657,236 1,435,228 (30,902 ) 9,149,155 Employee compensation and benefits 1,536,430 829,081 100,686 - 2,466,197 Legal and professional fees 594,739 534,650 76,739 - 1,206,128 Other expenses 1,257,977 968,674 185,509 - 2,412,160 TOTAL EXPENSES 10,476,739 2,989,641 1,811,579 (44,319 ) 15,233,640 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (10,441,941 ) (2,975,918 ) 16,088,112 - 2,670,253 EQUITY IN INCOME OF SUBSIDIARIES 13,112,194 16,301,366 - (29,413,560 ) - NET INCOME BEFORE INCOME TAXES 2,670,253 13,325,448 16,088,112 (29,413,560 ) 2,670,253 INCOME TAX EXPENSE 1,084,717 - - - 1,084,717 NET INCOME 1,585,536 13,325,448 16,088,112 (29,413,560 ) 1,585,536 Preferred stock dividends (511,231 ) - - - (511,231 ) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 1,074,305 $ 13,325,448 $ 16,088,112 $ (29,413,560 ) $ 1,074,305
Schedule of condensed consolidating statements of cash flows	For the three months ended March 31, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiary Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (45,102 ) $ 12,983,680 $ 14,296,565 $ (27,280,245 ) $ (45,102 ) Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (13,216,038 ) (14,064,207 ) - 27,280,245 - Change in fair value of life insurance policies - (1,059,422 ) (12,824,411 ) - (13,883,833 ) Amortization of deferred financing and issuance costs 1,928,993 45,420 691,790 - 2,666,203 Deferred income taxes (500 ) - - - (500 ) Preferred stock dividends payable 336,789 - - - 336,789 (Increase) decrease in operating assets: Life insurance policy benefits receivable - (600,000 ) (3,030,000 ) - (3,630,000 ) Other assets 5,507,945 (32,041,085 ) 755,219 27,204,239 1,426,318 Increase (decrease) in operating liabilities: Due to related party 691,865 320 (700,000 ) - (7,815 ) Accounts payable and other accrued expenses 424,968 (158,732 ) 950,996 - 1,217,232 NET CASH FLOWS USED IN OPERATING ACTIVITIES (4,371,080 ) (34,894,026 ) 140,159 27,204,239 (11,920,708 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (22,689,333 ) - (22,689,333 ) Carrying value of matured life insurance policies - 495,424 1,873,550 - 2,368,974 Proceeds from Secured MCA advances - 770,387 - 770,0387 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 495,424 (20,045,396 ) - (19,549,972 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayments of senior credit facilities - - (3,368,794 ) - (3,368,794 ) Payments for redemption of Series I Secured Notes - (5,449,889 ) - - (5,449,889 ) Proceeds from issuance of L Bonds 24,868,659 - - - 24,868,659 Payment for redemption and issuance of L Bonds (24,171,597 ) - - - (24,171,597 ) Payments from restricted cash - (1,442,684 ) (8,822,309 ) - (10,264,993 ) Repurchase of common stock (1,603,560 ) - - - (1,603,560 ) Proceeds from issuance of preferred stock 27,179,194 - - - 27,179,194 Payments for issuance and redemption of preferred stock (2,404,226 ) - - - (2,404,226 ) Payments of preferred stock dividends (1,867,760 ) (1,867,760 ) Issuance of member capital - (5,218,339 ) 32,422,578 (27,204,239 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 22,000,710 (12,110,912 ) 20,231,475 (27,204,239 ) 2,917,034 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 17,629,630 (46,509,514 ) 326,238 - (28,553,646 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 28,481,047 49,360,952 644,983 - 78,486,982 END OF THE PERIOD $ 46,110,677 $ 2,851,438 $ 971,221 $ - $ 49,933,336 For the three months ended March 31, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiary Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,585,536 $ 13,325,448 $ 16,088,112 $ (29,413,560 ) $ 1,585,536 Adjustments to reconcile net income to net cash flows from operating activities: (Equity) of subsidiaries (13,112,194 ) (16,301,366 ) - 29,413,560 - Change in fair value of life insurance policies - - (11,531,553 ) - (11,531,553 ) Amortization of deferred financing and issuance costs 1,648,891 (1,164,206 ) 299,503 - 784,188 Deferred income taxes 1,055,729 - - - 1,055,729 Preferred stock dividends payable 163,577 - - - 163,577 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (15,912,839 ) - (15,912,839 ) Other assets (38,661,205 ) (24,992,068 ) - 63,826,699 173,426 Increase (decrease) in operating liabilities: Due to related party (2,731,001 ) (16,607 ) 4,460,000 - 1,712,392 Accounts payable and other accrued expenses 782,047 586,702 599,220 - 1,967,969 NET CASH FLOWS USED IN OPERATING ACTIVITIES (49,268,620 ) (28,562,097 ) (5,997,557 ) 63,826,699 (20,001,575 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (24,326,322 ) - (24,326,322 ) Carrying value of matured life insurance policies - - 4,610,479 - 4,610,479 Investments in Secured MCA advances - - (4,353,585 ) - (4,353,585 ) Proceeds from Secured MCA advances - 118,143 - 118,143 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (23,951,285 ) - (23,951,285 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 20,000,000 - 20,000,000 Payments for redemption of Series I Secured Notes - (5,237,393 ) - - (5,237,393 ) Proceeds from issuance of L Bonds 34,368,889 - - - 34,368,889 Payment issuance and redemption of L Bonds (10,909,693 ) - - - (10,909,693 ) Payments from restricted cash - (2,705,379 ) (14,781,341 ) - (17,486,720 ) Issuance of common stock 46,545 - - - 46,545 Proceeds from issuance of preferred stock 1,028,536 - - - 1,028,536 Payments for issuance and redemption of preferred stock (772,553 ) - - - (772,553 ) Payments of preferred stock dividends (511,231 ) (511,231 ) Issuance of member capital - 38,862,512 24,964,187 (63,826,699 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 23,250,493 30,919,740 30,182,846 (63,826,699 ) 20,526,380 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (26,018,127 ) 2,357,643 234,004 - (23,426,480 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 6,274,035 $ 4,340,365 $ 384,225 $ - $ 10,998,625

Concentration (Tables)

Concentration (Tables)	3 Months Ended
	Mar. 31, 2017
Concentration [Abstract]
Summary of the face value of insurance contracts	March 31, December 31, Life insurance company 2017 2016 John Hancock 14.68 % 14.36 % AXA Equitable 12.96 % 13.42 % Lincoln National 11.43 % 11.22 % Transamerica 10.11 % * * percentage does not exceed 10% of the total face value.
Summary of the number of insurance contracts	March 31, December 31, State of residence 2017 2016 California 20.05 % 20.72 % Florida 19.92 % 19.42 %

Nature of Business and Summar37

Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Nature of business and summary of significant accounting policies (Textual)
Direct costs and deposits	$ 42,000	$ 42,000

Restrictions on Cash (Details)

Restrictions on Cash (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Restrictions on cash (Textual)
Restricted cash	$ 48,092,000	$ 37,827,000

Investment in Life Insurance 39

Investment in Life Insurance Policies (Details)	Mar. 31, 2017USD ($)INF	Dec. 31, 2016USD ($)INF
Summary of Company's life insurance policies accounted for under fair value method and their estimated maturity dates, based on remaining life expectancy
Number of Contracts, 2017 | INF	6	11
Number of Contracts, 2018 | INF	19	23
Number of Contracts, 2019 | INF	70	55
Number of Contracts, 2020 | INF	87	93
Number of Contracts, 2021 | INF	91	86
Number of Contracts, 2022 | INF	74	66
Number of Contracts, 2023 | INF	72	64
Number of Contracts, Thereafter | INF	334	292
Number of Contracts, Totals | INF	753	690
Estimated Fair Value, 2017	$ 3,861,000	$ 14,837,000
Estimated Fair Value, 2018	27,200,000	30,830,000
Estimated Fair Value, 2019	74,557,000	57,556,000
Estimated Fair Value, 2020	79,279,000	85,414,000
Estimated Fair Value, 2021	80,357,000	73,825,000
Estimated Fair Value, 2022	62,786,000	56,909,000
Estimated Fair Value, 2023	49,018,000	44,953,000
Estimated Fair Value, Thereafter	168,339,000	146,868,000
Estimated Fair Value, Totals	545,397,000	511,192,000
Face Value, 2017	4,375,000	16,939,000
Face Value, 2018	35,893,000	42,564,000
Face Value, 2019	112,510,000	88,858,000
Face Value, 2020	143,812,000	159,814,000
Face Value, 2021	166,349,000	158,744,000
Face Value, 2022	153,016,000	147,222,000
Face Value, 2023	142,501,000	128,581,000
Face Value, Thereafter	689,102,000	618,953,000
Face Value, Totals	$ 1,447,558,000	$ 1,361,675,000

Investment in Life Insurance 40

Investment in Life Insurance Policies (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Summary of reconciliation of gain on life settlements
Change in fair value	$ 13,884,000	$ 11,532,000
Premiums and other annual fees	(11,090,000)	(8,445,000)
Policy maturities	16,606,000	14,627,000
Gain on life settlements, net	$ 19,400,000	$ 17,714,000

Investment in Life Insurance 41

Investment in Life Insurance Policies (Details 2)	Mar. 31, 2017USD ($)
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Nine months ending December 31, 2017	$ 35,882,000
2,018	52,549,000
2,019	58,286,000
2,020	63,118,000
2,021	70,876,000
2,022	79,607,000
Estimated expected premium payments	360,318,000
Premiums [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Nine months ending December 31, 2017	35,228,000
2,018	51,895,000
2,019	57,632,000
2,020	62,464,000
2,021	70,222,000
2,022	78,953,000
Estimated expected premium payments	356,394,000
Servicing [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Nine months ending December 31, 2017	654,000
2,018	654,000
2,019	654,000
2,020	654,000
2,021	654,000
2,022	654,000
Estimated expected premium payments	$ 3,924,000

Investment in Life Insurance 42

Investment in Life Insurance Policies (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Investment in life insurance policies (Textual)
Cost-of-insurance	$ 1,000,000
Benefits recognized from insurance policy	18,975,000	$ 19,238,000
Carrying value of life insurance policy	2,369,000	4,611,000
Realized gains from life insurance policy	$ 16,606,000	$ 14,627,000
Life insurance policies [Member]
Investment in life insurance policies (Textual)
Discount rate applied to portfolio	10.96%		10.96%

Fair Value Definition and Hie43

Fair Value Definition and Hierarchy (Details) - Life Insurance Policies [Member] - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Summary of reconciliation of investments in life insurance contracts
Beginning balance	$ 511,192,000	$ 356,650,000
Purchases	22,690,000	23,831,000
Maturities (initial cost basis)	(2,369,000)	(4,611,000)
Net change in fair value	13,884,000	11,532,000
Ending balance	$ 545,397,000	$ 387,402,000

Fair Value Definition and Hie44

Fair Value Definition and Hierarchy (Details 1) - Life insurance policies [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Summary of inputs utilized in estimating the fair value
Weighted-average age of insured, years	81 years 6 months	81 years 7 months 6 days
Weighted-average life expectancy, months	83 months	83 months 2 days
Average face amount per policy	$ 1,922,000	$ 1,973,000
Discount rate	10.96%	10.96%

Fair Value Definition and Hie45

Fair Value Definition and Hierarchy (Details 2) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Minus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	$ 74,249,000	$ 69,253,000
Minus 4 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	36,972,000	34,601,000
Plus 4 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	(36,277,000)	(33,846,000)
Plus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	(71,802,000)	(67,028,000)
Minus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	57,001,000	53,764,000
Minus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	27,278,000	25,728,000
Plus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	(25,096,000)	(23,668,000)
Plus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	$ (48,239,000)	$ (45,491,000)

Fair Value Definition and Hie46

Fair Value Definition and Hierarchy(Details 3) - Level 3 [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Warrants Level 3 instruments and measured at fair value upon issuance
Warrants issued	324,887
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 Hie47

Fair Value Definition and Hierarchy (Details Textual)	3 Months Ended
	Mar. 31, 2017USD ($)
Fair value definition and hierarchy (Textual)
Life expectancy report, description	We periodically updated the independent life expectancy estimates on the insured lives in our portfolio, other than insured lives covered under small face amount policies (i.e., $1 million in face value benefits or less), on a continuous rotating three-year cycle, and through that effort attempted to 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 policy, 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	$ 402,500,000
Debt instruments face value	$ 413,074,000
Weighted average market interest rate of secured notes payable	6.55%
Loan receivable through credit agreement	$ 2,105,000
Loan loss reserve	$ 600,000

Credit Facility - Autobahn Fu48

Credit Facility - Autobahn Funding Company LLC (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Credit Facility - Autobahn Funding Company LLC (Textual)
Maximum borrowing amount under line of credit facility	$ 105,000,000
Expiry date of line of credit	Jun. 30, 2018
Amount outstanding under line of credit facility	$ 0	$ 0
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	192,518,000
Consolidated net income under credit and security agreement	$ 28,710,000
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%.

Credit Facility LNV Corpora49

Credit Facility LNV Corporation (Details) - USD ($)	Sep. 14, 2016	Mar. 31, 2017
Credit Facility - LNV Corporation [Textual]
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 or quarterly if there is no 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.
Reserve account		$ 27,504,000
Outstanding amount of credit facility		$ 159,470,000

Series I Secured Notes (Details

Series I Secured Notes (Details) - Series I Secured Notes Payable [Member]	Mar. 31, 2017USD ($)
Contractual Maturities
Nine months ending December 31, 2017	$ 4,538,000
2,018	2,401,000
2,019	1,024,000
2,020	1,725,000
2,021	941,000
Total	10,629,000
Amortization of Deferred Financing Costs
Nine months ending December 31 ,2017	11,000
2,018	34,000
2,019	18,000
2,020	48,000
2,021	52,000
Total	$ 163,000

Series I Secured Notes (Detai51

Series I Secured Notes (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Series I Secured Notes Payable (Textual)
Weighted average interest rate of secured notes payable	6.55%
Series I Secured Notes Payable [Member]
Series I Secured Notes Payable (Textual)
Minimum maturity period of secured notes	6 months
Maximum maturity period of secured notes	7 years
Weighted average interest rate of secured notes payable	8.82%		8.68%
Principal amount outstanding under Series I Secured notes	$ 10,629,000		$ 16,614,000
Amortization of deferred financing and issuance costs	45,000	$ 111,000
Future expected amortization of deferred financing costs	$ 163,000
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]	Mar. 31, 2017USD ($)
Contractual Maturities
Nine months ending December 31, 2017	$ 70,454,000
2,018	109,034,000
2,019	103,420,000
2,020	37,055,000
2,021	28,901,000
Thereafter	43,007,000
Total	391,871,000
Amortization of Deferred Financing Costs
Nine months ending December 31 ,2017	670,000
2,018	2,511,000
2,019	3,643,000
2,020	1,565,000
2,021	1,438,000
Thereafter	2,370,000
Total	$ 12,197,000

L Bonds (Details Textual)

L Bonds (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Sep. 01, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Jan. 31, 2015
L Bonds (Textual)
Debentures offer for sale		$ 413,074,000
Weighted average market interest rate of secured notes payable		6.55%
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 the investor
Weighted average market interest rate of secured notes payable		7.28%		7.23%
Amount outstanding under L bonds		$ 391,871,000		$ 387,067,000
Amortization of deferred issuance costs		1,929,000	$ 1,568,000
Future expected amortization of deferred financing costs		$ 12,197,000		$ 11,636,000
Renewable Secured Debentures [Member] | Maximum [Member]
L Bonds (Textual)
Amortizatoin period of deferred financing cost	1 year
Renewable Secured Debentures [Member] | Minimum [Member]
L Bonds (Textual)
Amortizatoin period of deferred financing cost	6 months

Series A Convertible Preferre54

Series A Convertible Preferred Stock (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended	15 Months Ended
	Sep. 30, 2014	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2012
Series A Convertible Preferred Stock (Textual)
Series A preferred stock value issued in conversion of dividends		$ (1,867,760)	$ (3,537,288)
Series A preferred stock outstanding		87,131	59,183
Class of warrant, expired		$ 107,000
Series A Convertible Preferred Stock [Member]
Series A Convertible Preferred Stock (Textual)
Preferred stock, liquidation preference per share				$ 7.50
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		497,000
Series A preferred stock value issued in conversion of dividends		$ 3,481,000
Convertible preferred stock, shares issued upon conversion		696,000
Conversion of stock, shares converted into common stock		522,000
Series A preferred stock outstanding		2,652,000
Series A preferred stock issuance costs		$ 2,838,000
Aggregate shares of common stock, Warrants		431,954
Fair value of warrants		$ 428,000
Weighted average remaining life of warrants outstanding		4 months 6 days	6 months 22 days
Exercise price		$ 12.50
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	435,365

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details)	1 Months Ended	3 Months Ended
	Nov. 30, 2015Tradingdays$ / sharesshares	Mar. 31, 2017USD ($)shares	Mar. 31, 2016USD ($)
Redeemable Preferred Stock (Textual)
Proceeds from redeemable preferred stock | $		$ (2,404,226)	$ (772,553)
Redeemable Preferred Stock [Member]
Redeemable Preferred Stock (Textual)
Company offering shares of convertible redeemable preferred stock | shares	100,000
Offering price of series redeemable preferred stock | $ / shares	$ 1,000
Dividend rate of convertible redeemable preferred stock	7.00%
Redeemable preferred stock par value per share | $ / shares	$ 1,000
Number of trading days | Tradingdays	20
Minimum conversion price | $ / shares	$ 15
Preferred stock redemption percentage	15.00%
Redeemable preferred stock, shares issued | shares		87,131
Proceeds from redeemable preferred stock | $		$ 87,131,000
Redeemable preferred stock for sale | $		$ 6,092,000

Series 2 Redeemable Preferred56

Series 2 Redeemable Preferred Stock (Details) - Series 2 Redeemable Preferred Stock [Member]	1 Months Ended
	Feb. 14, 2017Tradingdays$ / sharesshares
Series 2 Redeemable Preferred Stock (Textual)
Company offering shares of convertible redeemable preferred stock | shares	150,000
Offering price of series redeemable preferred stock	$ 1,000
Dividend rate of convertible redeemable preferred stock	7.00%
Redeemable preferred stock par value per share	$ 1,000
Number of trading days | Tradingdays	20
Minimum conversion price	$ 12.75
Preferred stock redemption percentage	10.00%
Preferred stock redemption terms	We may, at our option, call and redeem shares of RPS 2 at a price equal to their liquidation preference (subject to a minimum redemption price, in the event of redemptions occurring less than one year after issuance, of 107% of the stated value of the shares being redeemed).

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Current:
Federal	$ 27,000	$ 23,000
State	7,500	6,000
Total current tax expense	34,500	29,000	$ 0
Deferred:
Federal	(20,000)	806,000
State	(15,000)	250,000
Total deferred tax expense (benefit)	(500)	1,055,729
Total income tax expense (benefit)	$ (500)	$ 1,085,000

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Taxes (Textual)
Current income tax liability	$ 34,500	$ 29,000	$ 0
Valuation allowance	$ 2,164,000		$ 2,164,000

Common Stock (Details)

Common Stock (Details) - USD ($)	Feb. 16, 2017	Sep. 30, 2014	Mar. 31, 2016	Dec. 31, 2016
Common Stock (Textual)
Net proceeds			$ 46,545
Common stock for aggregate approximately				$ 244,149
GWG Holdings, Inc. (Member)
Common Stock (Textual)
Restricted common stock issued		800,000
Common stock, par value		$ 12.50
Net proceeds		$ 8,600,000
GWG Holdings, Inc. (Member) | Mr. Paul Siegert [Member]
Common Stock (Textual)
Restricted common stock issued	200,445
Common stock for aggregate approximately	$ 1,604,000

Stock Incentive Plan (Details)

Stock Incentive Plan (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Stock Option [Member]
Outstanding stock options
Beginning Balance	1,582,399	1,053,615
Granted during the year	24,900	630,850
Vested during the year
Forfeited during the year	(42,784)	(102,066)
Ending Balance	1,564,515	1,582,399
Vested [Member]
Outstanding stock options
Beginning Balance	738,065	483,703
Granted during the year	17,100	22,500
Vested during the year	33,640	251,788
Forfeited during the year	(36,119)	(19,926)
Ending Balance	752,686	738,065
Unvested [Member]
Outstanding stock options
Beginning Balance	844,334	569,912
Granted during the year	7,800	608,350
Vested during the year	(33,640)	(251,788)
Forfeited during the year	(6,665)	(82,140)
Ending Balance	811,829	844,334

Stock Incentive Plan (Details 1

Stock Incentive Plan (Details 1) - Stock Appreciation Rights (SARs) [Member] - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Outstanding Stock Appreciation Rights:
Beginning Balance	239,735
Granted during the year	10,062	239,735
Forfeited during the year
Vested during the quarter
Ending Balance	249,797	239,735
Vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance	106,608
Granted during the year		106,608
Forfeited during the year
Vested during the quarter	1,249
Ending Balance	107,857	106,608
Unvested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance	133,127
Granted during the year	10,062	133,127
Forfeited during the year
Vested during the quarter	1,249
Ending Balance	141,940	133,127

Stock Incentive Plan (Details T

Stock Incentive Plan (Details Textual)	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)$ / shares$ / pureshares	Dec. 31, 2016shares
Stock Incentive Plan (Textual)
Compensation expense related to unvested options not yet recognized | $	$ 512,000
Compensation expense related to unvested options, period of recognition	3 years
Compensation Expense in 2017 | $	$ 251,000
Compensation Expense in 2018 | $	158,000
Compensation Expense in 2019 | $	$ 103,000
Options vesting period	3 years
Compensation expense | $	$ 289,000
Common Stock [Member]
Stock Incentive Plan (Textual)
Common stock issued to employees	1,565,000
Number of options vested	753,000
Others [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Exercise price | $ / shares	$ 10.18
Others [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Exercise price | $ / shares	6.35
Owning more than 10% [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Exercise price | $ / shares	10.25
Owning more than 10% [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Exercise price | $ / shares	$ 4.83
2013 Stock Incentive Plan [Member]
Stock Incentive Plan (Textual)
Number of shares issuable	2,000,000
Expected volatility rate	23.40%
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.
2013 Stock Incentive Plan [Member] | Common Stock [Member]
Stock Incentive Plan (Textual)
Forfeited during the year, Percent	15.00%
Forfeited during the year	480,000
Exercised during the year	28,000
Stock Appreciation Rights (SARs) [Member]
Stock Incentive Plan (Textual)
Common stock issued to employees	249,797
Number of options vested
Forfeited during the year
Strike price	11.10
Compensation expense | $	$ 294,000
Stock Appreciation Rights (SARs) [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Strike price	8.76
Stock Appreciation Rights (SARs) [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Strike price	7.84
Stock Appreciation Rights (SARs) [Member] | Common Stock [Member]
Stock Incentive Plan (Textual)
Number of options vested	107,857

Commitments (Details)

Commitments (Details)	Mar. 31, 2017USD ($)
Summary of Minimum lease payments under second amendment to lease
Nine months ending December 31, 2017	$ 135,000
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
Total	$ 1,793,000

Commitments (Details Textual)

Commitments (Details Textual)	Sep. 01, 2015ft²	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
Commitments (Textual)
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 2026.
Office space in square feet | ft²	17,687
Lease term date	Dec. 31, 2026
Rent expenses | $		$ 113,000	$ 224,000

Guarantee of L Bonds (Details)

Guarantee of L Bonds (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
A S S E T S
Cash and cash equivalents	$ 49,933,336	$ 78,486,982	$ 10,998,625	$ 34,425,105
Restricted cash	48,091,589	37,826,596
Investment in life insurance policies, at fair value	545,396,546	511,192,354
Secured MCA advances	5,005,400	5,703,147
Life insurance policy benefits receivable	8,975,000	5,345,000
Other assets	3,317,692	4,688,103
Investment in subsidiaries
TOTAL ASSETS	660,719,563	643,242,182
LIABILITIES
Senior credit facilities	153,387,813	156,064,818
Series I Secured Notes	11,000,368	16,404,836
L Bonds	383,315,514	381,312,587
Accounts payable	2,684,919	2,226,712
Interest and dividends payable	16,287,918	16,160,599
Other accrued expenses	1,991,281	1,676,761
Deferred taxes, net	2,096,871	2,097,371
TOTAL LIABILITIES	570,764,684	575,943,684
STOCKHOLDERS' EQUITY
Member's capital
Convertible preferred stock	19,771,744	19,701,133
Redeemable preferred stock	87,130,977	59,025,164
Common stock	5,780	5,980
Additional paid-in capital	1,908,774	7,383,515
Accumulated deficit	(18,862,396)	(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	89,954,879	67,298,498
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	660,719,563	643,242,182
Parent [Member]
A S S E T S
Cash and cash equivalents	46,110,677	28,481,047	6,274,035	32,292,162
Restricted cash
Investment in life insurance policies, at fair value
Secured MCA advances
Life insurance policy benefits receivable
Other assets	2,841,802	3,854,233
Investment in subsidiaries	438,054,807	429,971,148
TOTAL ASSETS	487,007,286	462,306,428
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds	383,315,514	381,312,587
Accounts payable	589,962	853,470
Interest and dividends payable	9,786,908	9,882,133
Other accrued expenses	1,263,152	862,369
Deferred taxes, net	2,096,871	2,097,371
TOTAL LIABILITIES	397,052,407	395,007,930
STOCKHOLDERS' EQUITY
Member's capital
Convertible preferred stock	19,771,744	19,701,133
Redeemable preferred stock	87,130,977	59,025,164
Common stock	5,780	5,980
Additional paid-in capital	1,908,774	7,383,515
Accumulated deficit	(18,862,396)	(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	89,954,879	67,298,498
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	487,007,286	462,306,428
Guarantor Subsidiary [Member]
A S S E T S
Cash and cash equivalents	2,851,438	49,360,952	4,340,365	1,982,722
Restricted cash	3,560,333	2,117,649
Investment in life insurance policies, at fair value	41,841,894	41,277,896
Secured MCA advances
Life insurance policy benefits receivable	600,000
Other assets	1,760,967	2,056,822
Investment in subsidiaries	398,737,862	352,337,037
TOTAL ASSETS	449,352,494	447,150,356
LIABILITIES
Senior credit facilities
Series I Secured Notes	11,000,368	16,404,836
L Bonds
Accounts payable	614,243	731,697
Interest and dividends payable	3,524,097	3,743,277
Other accrued expenses	721,931	544,032
Deferred taxes, net
TOTAL LIABILITIES	15,860,639	21,423,842
STOCKHOLDERS' EQUITY
Member's capital	433,491,855	425,726,514
Convertible preferred stock
Redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	433,491,855	425,726,514
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	449,352,494	447,150,356
Non-Guarantor Subsidiaries [Member]
A S S E T S
Cash and cash equivalents	971,221	644,983	384,225	150,221
Restricted cash	44,531,256	35,708,947
Investment in life insurance policies, at fair value	503,554,652	469,914,458
Secured MCA advances	5,005,400	5,703,147
Life insurance policy benefits receivable	8,375,000	5,345,000
Other assets	55,420	810,640
Investment in subsidiaries
TOTAL ASSETS	562,492,949	518,127,175
LIABILITIES
Senior credit facilities	153,387,813	156,064,818
Series I Secured Notes
L Bonds
Accounts payable	1,480,714	641,545
Interest and dividends payable	2,983,818	2,535,189
Other accrued expenses	1,339,790	2,303,952
Deferred taxes, net
TOTAL LIABILITIES	159,192,135	161,545,504
STOCKHOLDERS' EQUITY
Member's capital	403,300,814	356,581,671
Convertible preferred stock
Redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	403,300,814	356,581,671
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	562,492,949	518,127,175
Eliminations [Member]
A S S E T S
Cash and cash equivalents
Restricted cash
Investment in life insurance policies, at fair value
Secured MCA advances
Life insurance policy benefits receivable
Other assets	(1,340,497)	(2,033,592)
Investment in subsidiaries	(836,792,669)	(782,308,185)
TOTAL ASSETS	(838,133,166)	(784,341,777)
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds
Accounts payable
Interest and dividends payable	(6,905)
Other accrued expenses	(1,333,592)	(2,033,592)
Deferred taxes, net
TOTAL LIABILITIES	(1,340,497)	(2,033,592)
STOCKHOLDERS' EQUITY
Member's capital	(836,792,669)	(782,308,185)
Convertible preferred stock
Redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	(836,792,669)	(782,308,185)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ (838,133,166)	$ (784,341,777)

Guarantee of L Bonds (Details 1

Guarantee of L Bonds (Details 1) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
REVENUE
Policy servicing income
Gain on life insurance policies, net	19,399,819	17,713,712
MCA income	246,577	144,961
Interest and other income	441,949	45,220
TOTAL REVENUE	20,088,345	17,903,893
EXPENSES
Policy servicing fees
Interest expense	13,244,215	9,149,155
Employee compensation and benefits	3,163,062	2,466,197
Legal and professional fees	946,348	1,206,128
Other expenses	2,780,322	2,412,160
TOTAL EXPENSES	20,133,947	15,233,640
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(45,602)	2,670,253
EQUITY IN INCOME OF SUBSIDIARIES
NET INCOME (LOSS) BEFORE INCOME TAXES	(45,602)	2,670,253
INCOME TAX BENEFIT	(500)	1,084,717
NET INCOME (LOSS)	(45,102)	1,585,536	$ 391,909
Preferred stock dividends	1,867,760	511,231
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(1,912,862)	1,074,305
Parent [Member]
REVENUE
Policy servicing income
Gain on life insurance policies, net
MCA income
Interest and other income	85,008	34,798
TOTAL REVENUE	85,008	34,798
EXPENSES
Policy servicing fees
Interest expense	9,262,034	7,087,593
Employee compensation and benefits	1,928,796	1,536,430
Legal and professional fees	492,816	594,739
Other expenses	1,663,002	1,257,977
TOTAL EXPENSES	13,346,648	10,476,739
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(13,261,640)	(10,441,941)
EQUITY IN INCOME OF SUBSIDIARIES	13,216,038	13,112,194
NET INCOME (LOSS) BEFORE INCOME TAXES	(45,602)	2,670,253
INCOME TAX BENEFIT	(500)	1,084,717
NET INCOME (LOSS)	(45,102)	1,585,536
Preferred stock dividends	(1,867,760)	(511,231)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(1,912,862)	1,074,305
Guarantor Subsidiary [Member]
REVENUE
Policy servicing income	53,025	13,417
Gain on life insurance policies, net	1,499,327
MCA income
Interest and other income	18,875	306
TOTAL REVENUE	1,571,227	13,723
EXPENSES
Policy servicing fees
Interest expense	286,354	657,236
Employee compensation and benefits	1,221,582	829,081
Legal and professional fees	261,087	534,650
Other expenses	882,731	968,674
TOTAL EXPENSES	2,651,754	2,989,641
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(1,080,527)	(2,975,918)
EQUITY IN INCOME OF SUBSIDIARIES	14,064,207	16,301,366
NET INCOME (LOSS) BEFORE INCOME TAXES	12,983,680	13,325,448
INCOME TAX BENEFIT
NET INCOME (LOSS)	12,983,680	13,325,448
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	12,983,680	13,325,448
Non-Guarantor Subsidiaries [Member]
REVENUE
Policy servicing income
Gain on life insurance policies, net	17,900,492	17,713,712
MCA income	246,577	144,961
Interest and other income	379,086	41,018
TOTAL REVENUE	18,526,155	17,899,691
EXPENSES
Policy servicing fees	53,025	13,417
Interest expense	3,736,847	1,435,228
Employee compensation and benefits	12,684	100,686
Legal and professional fees	192,445	76,739
Other expenses	234,589	185,509
TOTAL EXPENSES	4,229,590	1,811,579
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	14,296,565	16,088,112
EQUITY IN INCOME OF SUBSIDIARIES
NET INCOME (LOSS) BEFORE INCOME TAXES	14,296,565	16,088,112
INCOME TAX BENEFIT
NET INCOME (LOSS)	14,296,565	16,088,112
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	14,296,565	16,088,112
Eliminations [Member]
REVENUE
Policy servicing income	(53,025)	(13,417)
Gain on life insurance policies, net
MCA income
Interest and other income	(41,020)	(30,902)
TOTAL REVENUE	(94,045)	(44,319)
EXPENSES
Policy servicing fees	(53,025)	(13,417)
Interest expense	(41,020)	(30,902)
Employee compensation and benefits
Legal and professional fees
Other expenses
TOTAL EXPENSES	(94,045)	(44,319)
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
EQUITY IN INCOME OF SUBSIDIARIES	(27,280,245)	(29,413,560)
NET INCOME (LOSS) BEFORE INCOME TAXES	(27,280,245)	(29,413,560)
INCOME TAX BENEFIT
NET INCOME (LOSS)	(27,280,245)	(29,413,560)
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (27,280,245)	$ (29,413,560)

Guarantee of L Bonds (Details 2

Guarantee of L Bonds (Details 2) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (45,102)	$ 1,585,536	$ 391,909
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries
Change in fair value of life insurance policies	(13,883,833)	(11,531,553)
Amortization of deferred financing and issuance costs	2,666,203	784,188
Deferred income taxes	(500)	1,055,729
Preferred stock dividends payable	336,789	163,577
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(3,630,000)	(15,912,839)
Other assets	(1,426,318)	(173,426)
Increase (decrease) in operating liabilities:
Due to related party	(7,815)	1,712,392
Accounts payable and other accrued expenses	1,787,095	1,967,969
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(11,920,708)	(20,001,575)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(22,689,333)	(24,326,322)
Carrying value of matured life insurance policies	2,368,974	4,610,479
Investments in Secured MCA advances		(4,353,585)
Proceeds from Secured MCA advances	770,387	118,143
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(19,549,972)	(23,951,285)
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of senior credit facilities	(3,368,794)	20,000,000
Payments for redemption of Series I Secured Notes	(5,449,889)	(5,237,393)
Proceeds from issuance of L Bonds	24,868,659	34,368,889
Payment for redemption and issuance of L Bonds	(24,171,597)	(10,909,693)
Payments to restricted cash	(10,264,993)	(17,486,720)
Repurchase of common stock	(1,603,560)
Issuance of common stock		46,545
Proceeds from issuance of preferred stock	27,179,194	1,028,536
Payments for issuance and redemption of preferred stock	(2,404,226)	(772,553)
Payments of preferred stock dividends	(1,867,760)	(511,231)
Issuance of member capital
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	2,917,034	20,526,380
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(28,553,646)	(23,426,480)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	78,486,982	34,425,105	34,425,105
END OF PERIOD	49,933,336	10,998,625	78,486,982
Parent [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(45,102)	1,585,536
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	(13,216,038)	(13,112,194)
Change in fair value of life insurance policies
Amortization of deferred financing and issuance costs	1,928,993	1,648,891
Deferred income taxes	(500)	1,055,729
Preferred stock dividends payable	336,789	163,577
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	5,507,945	(38,661,205)
Increase (decrease) in operating liabilities:
Due to related party	691,865	(2,731,001)
Accounts payable and other accrued expenses	424,968	782,047
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(4,371,080)	(49,268,620)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies
Investments in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of senior credit facilities
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds	24,868,659	34,368,889
Payment for redemption and issuance of L Bonds	(24,171,597)	(10,909,693)
Payments to restricted cash
Repurchase of common stock	(1,603,560)
Issuance of common stock		46,545
Proceeds from issuance of preferred stock	27,179,194	1,028,536
Payments for issuance and redemption of preferred stock	(2,404,226)	(772,553)
Payments of preferred stock dividends	(1,867,760)	(511,231)
Issuance of member capital
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	22,000,710	23,250,493
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	17,629,630	(26,018,127)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	28,481,047	32,292,162	32,292,162
END OF PERIOD	46,110,677	6,274,035	28,481,047
Guarantor Subsidiary [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	12,983,680	13,325,448
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	(14,064,207)	(16,301,366)
Change in fair value of life insurance policies	(1,059,422)
Amortization of deferred financing and issuance costs	45,420	(1,164,206)
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(600,000)
Other assets	(32,041,085)	(24,992,068)
Increase (decrease) in operating liabilities:
Due to related party	320	(16,607)
Accounts payable and other accrued expenses	(158,732)	586,702
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(34,894,026)	(28,562,097)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies	495,424
Investments in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES	495,424
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of senior credit facilities
Payments for redemption of Series I Secured Notes	(5,449,889)	(5,237,393)
Proceeds from issuance of L Bonds
Payment for redemption and issuance of L Bonds
Payments to restricted cash	(1,442,684)	(2,705,379)
Repurchase of common stock
Issuance of common stock
Proceeds from issuance of preferred stock
Payments for issuance and redemption of preferred stock
Payments of preferred stock dividends
Issuance of member capital	(5,218,339)	38,862,512
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(12,110,912)	30,919,740
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(46,509,514)	2,357,643
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	49,360,952	1,982,722	1,982,722
END OF PERIOD	2,851,438	4,340,365	49,360,952
Non-Guarantor Subsidiaries [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	14,296,565	16,088,112
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries
Change in fair value of life insurance policies	(12,824,411)	(11,531,553)
Amortization of deferred financing and issuance costs	691,790	299,503
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(3,030,000)	(15,912,839)
Other assets	755,219
Increase (decrease) in operating liabilities:
Due to related party	(700,000)	4,460,000
Accounts payable and other accrued expenses	950,996	599,220
NET CASH FLOWS USED IN OPERATING ACTIVITIES	140,159	(5,997,557)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(22,689,333)	(24,326,322)
Carrying value of matured life insurance policies	1,873,550	4,610,479
Investments in Secured MCA advances		(4,353,585)
Proceeds from Secured MCA advances	770,387	118,143
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(20,045,396)	(23,951,285)
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of senior credit facilities	3,368,794	20,000,000
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payment for redemption and issuance of L Bonds
Payments to restricted cash	(8,822,309)	(14,781,341)
Repurchase of common stock
Issuance of common stock
Proceeds from issuance of preferred stock
Payments for issuance and redemption of preferred stock
Payments of preferred stock dividends
Issuance of member capital	32,422,578	24,964,187
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	20,231,475	30,182,846
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	326,238	234,004
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	644,983	150,221	150,221
END OF PERIOD	971,221	384,225	644,983
Eliminations [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(27,280,245)	(29,413,560)
Adjustments to reconcile net income to net cash flows from operating activities:
(Equity) of subsidiaries	27,280,245	29,413,560
Change in fair value of life insurance policies
Amortization of deferred financing and issuance costs
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	27,204,239	63,826,699
Increase (decrease) in operating liabilities:
Due to related party
Accounts payable and other accrued expenses
NET CASH FLOWS USED IN OPERATING ACTIVITIES	27,204,239	63,826,699
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies
Investments in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of senior credit facilities
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payment for redemption and issuance of L Bonds
Payments to restricted cash
Repurchase of common stock
Issuance of common stock
Proceeds from issuance of preferred stock
Payments for issuance and redemption of preferred stock
Payments of preferred stock dividends
Issuance of member capital	(27,204,239)	(63,826,699)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(27,204,239)	(63,826,699)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
END OF PERIOD

Concentration (Details)

Concentration (Details)	Mar. 31, 2017	Dec. 31, 2016
John Hancock [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	14.68%	14.36%
AXA Equitable [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	12.96%	13.42%
Lincoln National [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	11.43%	11.22%
Transamerica [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	10.11%		[1]
[1]	percentage does not exceed 10% of the total face value.

Concentration (Details 1)

Concentration (Details 1)	Mar. 31, 2017	Dec. 31, 2016
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 policies held in specific states	20.05%	20.72%
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 policies held in specific states	19.92%	19.42%

Concentration (Details Textual)

Concentration (Details Textual)	3 Months Ended
	Mar. 31, 2017
Concentration (Textual)
Description of issuance policies 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 ($)	Sep. 22, 2017	May 05, 2017	Apr. 18, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Events (Textual)
Additional principal amount of L bonds				$ 9,817,000
Proceeds from issuance of preferred stock				(2,404,226)	$ (772,553)
Stock options excercised				27,000
Redeemable Preferred Stock [Member]
Subsequent Events (Textual)
Proceeds from issuance of preferred stock				87,131,000
Series 2 Redeemable Preferred Stock [Member]
Subsequent Events (Textual)
Proceeds from issuance of preferred stock				11,691,000
RPS 2 [Member]
Subsequent Events (Textual)
Proceeds from issuance of preferred stock				$ 7,359,000
Subsequent Event [Member]
Subsequent Events (Textual)
Common stock reserve increase, shares		1,000,000
Common stock reserved, shares		3,000,000
Subsequent Event [Member] | Jon Gangelhoff [Member]
Subsequent Events (Textual)
Regular salary payments			$ 250,000
Subsequent Event [Member] | Michael Freedman [Member]
Subsequent Events (Textual)
Options issue to purchase of common stock	$ 258,000