GWG (GWGHQ) 10-Q 10 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 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	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,783,555

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
A S S E T S
Cash and cash equivalents	$ 52,293,472	$ 78,486,982
Restricted cash	46,159,631	37,826,596
Investment in life insurance policies, at fair value	577,049,552	511,192,354
Secured MCA advances	3,525,381	5,703,147
Life insurance policy benefits receivable	6,970,000	5,345,000
Deferred taxes, net	1,620,303
Other assets	3,875,810	4,688,103
TOTAL ASSETS	691,494,149	643,242,182
LIABILITIES
Senior Credit Facilities	149,008,826	156,064,818
Series I Secured Notes	6,680,961	16,404,836
L Bonds	400,832,308	381,312,587
Accounts payable	4,160,097	2,226,712
Interest payable	14,387,044	16,160,599
Other accrued expenses	2,535,674	1,676,761
Deferred taxes, net		2,097,371
TOTAL LIABILITIES	577,604,910	575,943,684
STOCKHOLDERS' EQUITY
CONVERTIBLE PREFERRED STOCK (par value $0.001; shares authorized 40,000,000; shares outstanding 2,671,663 and 2,640,521; liquidation preference of $20,037,000 and $19,804,000 as of June 30, 2017 and December 31, 2016, respectively)	19,732,262	19,701,133
REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 100,000; shares outstanding 99,127 and 59,183; liquidation preference of $99,127,000 and $59,183,000 as of June 30, 2017 and December 31, 2016, respectively)	97,728,821	59,025,164
SERIES 2 REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 150,000; shares outstanding 22,536 and 0; liquidation preference of $22,536,000 and $0 as of June 30, 2017 and December 31, 2016, respectively)	20,979,019
COMMON STOCK (par value $0.001: shares authorized 210,000,000; shares issued and outstanding 5,783,555 and 5,980,190 as of June 30, 2017 and December 31, 2016, respectively)	5,784	5,980
Additional paid-in capital		7,383,515
Accumulated deficit	(24,556,647)	(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	113,889,239	67,298,498
TOTAL LIABILITIES & EQUITY	$ 691,494,149	$ 643,242,182

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	40,000,000	40,000,000
Convertible preferred stock, shares outstanding	2,671,663	2,640,521
Convertible preferred stock, liquidation preference	$ 20,037,000	$ 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	99,127	59,183
Redeemable preferred stock, liquidation preference	$ 99,127,000	$ 59,183,000
Series 2 Redeemable Preferred, par value	$ 0.001	$ 0.001
Series 2 Redeemable Preferred, shares authorized	150,000	150,000
Series 2 Redeemable Preferred, shares outstanding	22,536	0
Series 2 Redeemable Preferred, liquidation preference	$ 22,536,000	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	5,783,555	5,980,190
Common stock, shares outstanding	5,783,555	5,980,190

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUE
Gain on life insurance policies, net	$ 11,296,266	$ 20,383,347	$ 30,696,086	$ 38,097,059
MCA income	133,583	223,255	380,159	368,216
Interest and other income	237,737	170,880	679,686	216,100
TOTAL REVENUE	11,667,586	20,777,482	31,755,931	38,681,375
EXPENSES
Interest expense	12,246,025	9,764,657	25,490,241	18,913,811
Employee compensation and benefits	3,741,299	3,071,507	6,904,360	5,537,705
Legal and professional fees	1,330,589	1,304,353	2,276,937	2,510,481
Provision for MCA advances	878,000	300,000	878,000	400,000
Other expenses	2,883,098	2,032,685	5,663,420	4,344,845
TOTAL EXPENSES	21,079,011	16,473,202	41,212,958	31,706,842
INCOME (LOSS) BEFORE INCOME TAXES	(9,411,425)	4,304,280	(9,457,027)	6,974,533
INCOME TAX EXPENSE (BENEFIT)	(3,717,174)	1,822,030	(3,717,674)	2,906,747
NET INCOME (LOSS)	(5,694,251)	2,482,250	(5,739,353)	4,067,786
Preferred stock dividends	2,031,097	600,924	3,898,857	1,112,155
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (7,725,348)	$ 1,881,326	$ (9,638,210)	$ 2,955,631
NET INCOME (LOSS) PER SHARE
Basic	$ (1.34)	$ 0.32	$ (1.69)	$ 0.50
Diluted	$ (1.34)	$ 0.30	$ (1.69)	$ 0.49
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,777,724	5,967,098	5,710,909	5,954,944
Diluted	5,777,724	8,017,349	5,710,909	8,002,335

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (5,694,251)	$ 2,482,250	$ (5,739,353)	$ 4,067,786
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Change in fair value of life insurance policies	(15,235,502)	(21,241,376)	(29,119,335)	(32,772,929)
Amortization of deferred financing and issuance costs	1,497,948	2,527,974	4,164,151	3,312,162
Deferred income taxes	(3,717,174)	1,851,018	(3,717,674)	2,906,747
Preferred stock dividends payable	363,959	166,472	700,748	330,049
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	2,005,000	9,083,817	(1,625,000)	(6,829,022)
Other assets	(557,988)	(1,210,892)	868,330	(1,037,466)
Increase (decrease) in operating liabilities:
Due to related party	(1,970)	(1,814,173)	(9,785)	(101,781)
Accounts payable and other accrued expenses	1,038,855	(775,213)	2,256,087	1,192,756
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(20,301,123)	(8,930,123)	(32,221,831)	(28,931,698)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(19,432,338)	(24,373,714)	(42,121,671)	(48,700,036)
Carrying value of matured life insurance policies	3,014,834	1,691,764	5,383,808	6,302,243
Investment in Secured MCA advances	(39,671)	(1,293,829)	(39,671)	(5,647,414)
Proceeds from Secured MCA advances	653,315	907,649	1,423,702	1,025,792
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(15,803,860)	(23,068,130)	(35,353,832)	(47,019,415)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities	(3,845,037)	(3,000,000)	(7,099,537)	17,000,000
Payments for issuance of senior debt	(1,076,118)		(1,190,412)
Payments for redemption of Series I Secured Notes	(4,348,372)	(485,350)	(9,798,261)	(5,722,743)
Proceeds from issuance of L Bonds	31,875,811	36,757,771	56,744,470	71,126,660
Payments for issuance and redemption of L Bonds	(15,025,566)	(11,753,782)	(39,197,163)	(22,663,475)
Transfer from (payments to) restricted cash	1,931,958	8,667,826	(8,333,035)	(8,818,894)
Issuance (repurchase) of common stock	4	166,125	(1,603,556)	212,670
Proceeds from issuance of preferred stock	34,301,747	9,472,673	61,480,941	10,501,209
Payment for issuance and redemption of preferred stock	(3,318,211)	(845,361)	(5,722,437)	(1,617,914)
Payment of preferred stock dividends	(2,031,097)	(600,924)	(3,898,857)	(1,112,155)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	38,465,119	38,378,978	41,382,153	58,905,358
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,360,136	6,380,725	(26,193,510)	(17,045,755)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	49,933,336	10,998,625	78,486,982	34,425,105
END OF PERIOD	52,293,472	17,379,350	52,293,472	17,379,350
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	14,323,000	10,294,000	26,548,000	16,399,000
Premiums paid	11,646,000	8,995,000	22,606,000	17,441,000
Stock-based compensation	89,000	41,000	406,000	50,000
Series I Secured Notes:
Conversion of accrued interest and commissions payable to principal		142,000		187,000
L Bonds:
Conversion of accrued interest and commissions payable to principal	397,000	370,000	905,000	661,000
Series A Preferred Stock:
Issuance of Series A Preferred Stock in lieu of cash dividends	166,000	171,000	337,000	339,000
Investment in life insurance policies included in accounts payable	$ 1,296,000	$ 780,000	$ 1,296,000	$ 780,000

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)		Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 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 (loss)		391,909				391,909
Issuance of common stock				$ 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 and Series 2 Redeemable Preferred Stock, net of costs		54,891,639	$ 59,025,164		(4,133,525)
Issuance of Redeemable Preferred Stock and Series 2 Redeemable Preferred Stock, net of costs, 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 (loss)		(5,739,353)				(5,739,353)
Redemption of common stock		(1,603,560)		$ (200)	(1,603,360)
Redemption of common stock, shares				(200,445)
Redemption of Series A Preferred Stock		(126,993)	$ (126,997)	$ 4
Redemption of Series A Preferred Stock, shares			(17,033)	3,810
Issuance of Series A Preferred Stock		210,230	$ 210,230
Issuance of Series A Preferred Stock, shares			48,175
Issuance of Redeemable Preferred Stock and Series 2 Redeemable Preferred Stock, net of costs		58,230,277	$ 60,247,764		(2,017,487)
Issuance of Redeemable Preferred Stock and Series 2 Redeemable Preferred Stock, net of costs, shares			63,041
Redemption of Redeemable Preferred Stock and Series 2 Redeemable Preferred Stock		(561,277)	$ (561,277)
Redemption of Redeemable Preferred Stock and Series 2 Redeemable Preferred Stock, shares			(561)
Preferred stock dividends	[1]	(3,898,857)	$ (122,323)		(3,776,534)
Issuance of stock options		80,274	66,408		13,866
Ending balance at Jun. 30, 2017		$ 113,889,239	$ 138,440,102	$ 5,784		$ (24,556,647)
Ending balance, shares at Jun. 30, 2017			2,793,326	5,783,555
[1]	Preferred stock dividends were paid out the common stock's additional paid-in-capital to a point when the latter was exhausted in the second quarter of 2017. After that the dividend expense was charged against the carrying values of the respective series of the Company's preferred stock. This contributed to the fact that the Company's preferred stock book balances are different than the liquidation preference of the respective preferred stock.

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 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. (“GWG MCA”) was formed to provide cash advances to small businesses. On August 25, 2016, GWG Holdings formed a wholly owned subsidiary, Actüa Life & Annuity Ltd. (“Actüa”), 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 Investments in Insurance Contracts 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 June 30, 2017 and December 31, 2016, a total of $339,000 and $42,000, respectively, of our “other assets” comprised direct costs and deposits that we had 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 Accounting Standards Update 2016-02 Leases In March 2016, the FASB issued Accounting Standards Update 2016-09 (“ASU 2016-09”) to simplify the accounting for stock compensation related to the following items: income tax accounting, award classification, estimation of forfeitures, and cash flow presentation. The new guidance is effective for fiscal years beginning after December 15, 2016. We are currently in the process of adopting this pronouncement.

Restrictions on Cash

Restrictions on Cash	6 Months Ended
	Jun. 30, 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 disbursements from these accounts. At June 30, 2017 and December 31, 2016, there was a balance of $46,160,000, and $37,827,000, respectively, in these restricted cash accounts.

Investment in Life Insurance Po

Investment in Life Insurance Policies	6 Months Ended
	Jun. 30, 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 rates 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. Management has discretion regarding the combination of these and other factors when determining the discount rate. As a result of management’s analysis, a discount rate of 10.81% was applied to our portfolio as of June 30, 2017 as compared to 10.96% as of December 31, 2016. A summary of our policies, organized according to their estimated life expectancy dates as of the reporting date, is as follows: As of June 30, 2017 As of December 31, 2016 Years Ending December 31, Number of Policies Estimated Fair Value Face Value Number of Policies Estimated Fair Value Face Value 2017 4 $ 3,044,000 $ 3,375,000 11 $ 14,837,000 $ 16,939,000 2018 11 16,462,000 20,853,000 23 30,830,000 42,564,000 2019 61 64,377,000 92,676,000 55 57,556,000 88,858,000 2020 96 92,535,000 159,203,000 93 85,414,000 159,814,000 2021 85 71,872,000 142,961,000 86 73,825,000 158,744,000 2022 88 80,308,000 184,162,000 66 56,909,000 147,222,000 2023 80 58,506,000 166,527,000 64 44,953,000 128,581,000 Thereafter 368 189,946,000 755,606,000 292 146,868,000 618,953,000 Totals 793 $ 577,050,000 $ 1,525,363,000 690 $ 511,192,000 1,361,675,000 We recognized life insurance benefits of $10,935,000 and $9,829,000 during the three months ended June 30, 2017 and 2016, respectively, related to policies with a carrying value of $3,014,000 and $1,692,000, respectively, and as a result recorded realized gains of $7,920,000 and $8,137,000, respectively. We recognized life insurance benefits of $29,910,000 and $29,067,000 during the six months ended June 30, 2017 and 2016, respectively, related to policies with a carrying value of $5,384,000 and $6,302,000, respectively, and as a result recorded realized gains of $24,526,000 and $22,765,000, respectively. Reconciliation of gain on life insurance policies: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Change in estimated probabilistic cash flows $ 16,446,000 $ 17,972,000 $ 32,849,000 $ 27,425,000 Unrealized gain on acquisitions 8,044,000 9,822,000 18,646,000 17,841,000 Premiums and other annual fees (11,859,000 ) (8,995,000 ) (22,949,000 ) (17,441,000 ) Change in discount rates(1) 4,143,000 629,000 4,143,000 838,000 Change in life expectancy evaluation (2) (6,662,000 ) (1,545,000 ) (8,604,000 ) (914,000 ) Realized gain on maturities 7,920,000 8,137,000 24,526,000 22,765,000 Fair value of matured policies (6,736,000 ) (5,637,000 ) (17,915,000 ) (12,417,000 ) Gain on life insurance policies, net $ 11,296,000 $ 20,383,000 $ 30,696,000 $ 38,097,000 (1) The discount rate applied to estimate the fair value of the portfolio of life insurance policies we own was 10.81% as of June 30, 2017, compared to 10.96% as of December 31, 2016 and 11.05% as of June 30, 2016. The carrying value of policies acquired during each quarterly reporting period is adjusted to current fair value using the fair value discount rate applied to the entire portfolio as of that reporting date. (2) The change in fair value due to updating independent life expectancy estimates on certain life insurance policies in our portfolio. 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 Six months ending December 31, 2017 $ 24,455,000 $ 654,000 $ 25,109,000 2018 52,611,000 654,000 53,265,000 2019 58,206,000 654,000 58,860,000 2020 65,722,000 654,000 66,376,000 2021 74,105,000 654,000 74,759,000 2022 83,310,000 654,000 83,964,000 $ 358,409,000 $ 3,924,000 $ 362,333,000 Management anticipates funding the premium payments estimated above with proceeds from the receipt of policy benefits from our portfolio of life insurance policies, net proceeds from our offering of L Bonds and RPS 2, and from our senior credit facilities. The proceeds of these capital sources may also be used for the purchase, financing, and maintenance of additional life insurance policies.

Fair Value Definition and Hiera

Fair Value Definition and Hierarchy	6 Months Ended
	Jun. 30, 2017
Fair Value Definition and Hierarchy [Abstract]
Fair Value Definition and Hierarchy	(4) Fair Value Definition and Hierarchy Accounting Standards Codification 820, Fair Value Measurements and Disclosures The hierarchy is broken down into three levels based on the observability of inputs as follows: ● Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. ● Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. ● Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary by types of assets and liabilities and is affected by a wide variety of factors, including, for example, whether an instrument is established in the marketplace, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for assets and liabilities categorized in Level 3. Level 3 Valuation Process The estimated fair value of our portfolio of life insurance 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 rates applied by other reporting companies owning portfolios of life insurance policies, the discount rates observed in other competitive purchases 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. Management has discretion regarding the combination of these and other factors when determining the discount rate. 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 June 30, as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Beginning balance $ 545,397,000 $ 387,402,000 $ 511,192,000 $ 356,650,000 Purchases 19,432,000 24,869,000 42,122,000 48,700,000 Maturities (initial cost basis) (3,014,000 ) (1,692,000 ) (5,384,000 ) (6,303,000 ) Net change in fair value 15,235,000 21,241,000 29,120,000 32,773,000 Ending balance $ 577,050,000 $ 431,820,000 $ 577,050,000 $ 431,820,000 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 June 30, 2017 As of December 31, Weighted-average age of insured, years * 81.5 81.6 Weighted-average life expectancy, months * 82.6 83.2 Average face amount per policy $ 1,924,000 $ 1,973,000 Discount rate 10.81 % 10.96 % (*) Weighted average by face amount of policy benefits Life expectancy estimates and market discount rates 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 plus June 30, 2017 $ 78,665,000 $ 39,075,000 $ (38,334,000 ) $ (75,932,000 ) 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% June 30, 2017 $ 60,606,488 $ 29,002,000 $ (26,678,000 ) $ (51,277,000 ) 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 $414,666,000 as of June 30, 2017, is approximately $424,793,000 based on a weighted-average market interest rate of 6.60%. 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 June 30, 2017 one of our secured loans was potentially impaired. The secured loan to Nulook Capital LLC had an outstanding balance of $2,060,000 and a loan loss reserve of $1,478,000 at June 30, 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. We recorded an impairment charge of $870,000 for the quarter ended June 30, 2017. The following table summarizes outstanding warrants related to our Series A offering (see Note 9) and the Company’s initial public offering as of June 30, 2017: Month issued Warrants issued Fair value per share Risk free Volatility Term September 2012 2,500 $ 0.72 0.31 % 40.49 % 5 years September 2014 16,000 $ 1.26 1.85 % 17.03 % 5 years 18,500

Credit Facility - Autobahn Fund

Credit Facility - Autobahn Funding Company LLC	6 Months Ended
	Jun. 30, 2017
Credit Facility - Autobahn Funding Company LLC [Abstract]
Credit Facility - Autobahn Funding Company LLC	(5) Credit Facility – Autobahn Funding Company LLC Through GWG DLP Funding III, LLC (“DLP III”) we are party to a $105 million senior credit facility with Autobahn Funding Company LLC (“Autobahn”), with a maturity date of June 30, 2018. The facility is governed by a Credit and Security Agreement (the “Agreement”), and DZ Bank AG Deutsche Zentral-Genossenschaftsbank (“DZ Bank”) acts as the agent for Autobahn under the Agreement. On September 14, 2016, we paid off this senior credit facility in full with funds received from a new senior credit facility with LNV Corporation as described in Note 6. Advances under the facility bear interest at a commercial paper rate of the lender at the time of the advance, or at the lender’s cost of borrowing plus 4.25%. The amount outstanding under this facility was $0 at both June 30, 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 June 30, 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. Consolidated non-GAAP net income and non-GAAP tangible net worth for the four quarters ended and as of June 30, 2017, as calculated under the Agreement, was $29,590,000 and $225,661,000, respectively. No life insurance policies were pledged and no funds were available for additional borrowings under the facility at June 30, 2017 and December 31, 2016.

Credit Facility - LNV Corporati

Credit Facility - LNV Corporation	6 Months Ended
	Jun. 30, 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. The Loan Agreement governing the facility 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 Loan Agreement. Interest will accrue on amounts borrowed under the Loan 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. The effective rate at June 30, 2017 was 7.59%. Interest payments are made on a quarterly basis. The amount outstanding under this facility was $155,625,000 at June 30, 2017 and $162,725,000 at December 31, 2016. 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 June 30, 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 June 30, 2017, the amount set aside in this specific reserve account was $27,523,000. The Loan Agreement has certain financial and nonfinancial covenants, and we were in compliance with these covenants at June 30, 2017 and December 31, 2016. No funds were available for additional borrowings under the facility at June 30, 2017.

Series I Secured Notes

Series I Secured Notes	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2017 and December 31, 2016, the weighted-average interest rate of our Series I was 8.72% and 8.68%, respectively. The principal amount of Series I outstanding was $6,815,000 and $16,614,000 at June 30, 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 $29,000 and $74,000 for the three and six months ended June 30, 2017 and $82,000 and $193,000 for the three and six months ended June 30, 2016. Future expected amortization of deferred financing costs is $134,000 in total over the next five years. Future contractual maturities of Series I payable, and future amortization of their deferred financing costs, at June 30, 2017 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31 ,2017 $ 749,000 $ 3,000 2018 2,376,000 25,000 2019 1,024,000 17,000 2020 1,725,000 41,000 2021 941,000 48,000 $ 6,815,000 $ 134,000

L Bonds

L Bonds	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2017 and December 31, 2016, the weighted-average interest rate of our L Bonds was 7.30% and 7.23%, respectively. The principal amount of L Bonds outstanding was $407,850,000 and $387,067,000 at June 30, 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, cash receipts for new issuances and payments of redemptions in process. Amortization of deferred issuance costs was $927,000 and $2,856,000 for the three and six months ended June 30, 2017 and $1,721,000 and $3,289,000 for the three and six months ended June 30, 2016. Future expected amortization of deferred financing costs as of June 30, 2017 is $13,539,000 in total over the next seven years. Future contractual maturities of L Bonds, and future amortization of their deferred financing costs, at June 30, 2017 are as follows: Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31, 2017 $ 47,068,000 $ 353,000 2018 108,772,000 2,181,000 2019 116,767,000 4,128,000 2020 49,062,000 2,147,000 2021 28,753,000 1,411,000 Thereafter 57,428,000 3,319,000 $ 407,850,000 $ 13,539,000

Series A Convertible Preferred

Series A Convertible Preferred Stock	6 Months Ended
	Jun. 30, 2017
Series A Convertible Preferred Stock [Abstract]
Series A Convertible Preferred Stock	(9) Series A Convertible Preferred Stock From July 2011 through 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 June 30, 2017, we issued an aggregate of 521,000 shares of Series A in satisfaction of $3,647,000 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 June 30, 2017, we had 2,672,000 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 June 30, 2017, none of these warrants had been exercised and 413,000 warrants have expired. The weighted-average remaining life of these warrants was 1.94 and 0.56 years at June 30, 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 June 30, 2017, we have redeemed an aggregate of 439,000 shares of Series A.

Redeemable Preferred Stock

Redeemable Preferred Stock	6 Months Ended
	Jun. 30, 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 June 30, 2017, we had sold 99,127 shares of RPS for aggregate gross consideration of $99,127,000, and incurred approximately $7,019,000 of selling costs related to the sale of those shares. On March 31, 2017, we closed the RPS offering to 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 Accounting Standards Codification 470 “Debt”

Series 2 Redeemable Preferred S

Series 2 Redeemable Preferred Stock	6 Months Ended
	Jun. 30, 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 originally purchased by such holder from us and still held by such holder. 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 June 30, 2017, we had sold 22,536 shares of RPS 2 for aggregate gross consideration of $22,536,000, and incurred approximately $1,078,000 of selling costs related to the sale of those shares. At the time of its issuance, we determined that the RPS 2 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 2 should be considered an equity host for the purposes of assessing the embedded derivatives for potential bifurcation. Based on our assessment under ASC 470 we do not believe bifurcation of either the holder’s redemption or conversion feature is appropriate.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes [Abstract]
Income Taxes	(12) Income Taxes We had a current income tax liability of $0 as of both June 30, 2017 and December 31, 2016. The components of deferred income tax expense (benefit) for the three and six months ended June 30, 2017 and 2016, respectfully, consisted of the following: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Income tax provision (benefit): Current: Federal $ (27,000 ) $ (23,000 ) $ - $ - State $ (7,000 ) $ (6,000 ) $ - $ - Total current tax expense (benefit) (34,000 ) (29,000 ) - Deferred: Federal $ (2,798,000 ) $ 1,397,000 $ (2,818,000 ) $ 2,203,000 State $ (885,000 ) $ 454,000 $ (900,000 ) $ 704,000 Total deferred tax expense (benefit) (3,683,000 ) 1,851,000 (3,718,000 ) 2,907,000 Total income tax expense (benefit) (3,717,000 ) 1,822,000 (3,718,000 ) 2,907,000 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 June 30, 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. We also provided a valuation allowance against the deferred tax asset related to tax basis capital loss generated with respect to our settlement and subsequent disposal of an earlier investment. As we have no expectation of generating offsetting capital gains with the applicable carryforward period, we do not believe that it is “more likely than not” that the deferred asset will be realized. The Company is engaged in acquiring of life insurance policies and holding them to maturity. Due to the nature of holding policies and aging of the underlying insureds, it will be more likely that the Company will recognize taxable income as the policies in our portfolio start maturing at an accelerated rate the near future. Due to this we believe that sufficient taxable income will be recognized during the net operating loss carryover period to utilize the reported deferred tax asset, and that no additional valuation allowance, other than already recorded, is required. Accounting Standards Codification 740, Income Taxes 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 June 30, 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	6 Months Ended
	Jun. 30, 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.”

Stock Incentive Plan

Stock Incentive Plan	6 Months Ended
	Jun. 30, 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 June 30, 2017, 3,000,000 common stock options are issuable under the plan. Stock Options Through June 30, 2017, we had issued stock options for 1,532,000 shares of common stock to employees, officers, and directors under the plan. Options for 740,000 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 $10.38 for those beneficially owning more than 10% of our common stock, and between $4.83 and $10.76 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 20.0%. 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 June 30, 2017, stock options for 679,000 shares had been forfeited and stock options for 70,000 shares had been exercised. On April 17, 2017, GWG Holdings, Inc. entered into a Separation Agreement with Mr. Jon Gangelhoff. Under this agreement, Mr. Gangelhoff retired and resigned his position as Chief Operating Officer. In addition, all of Mr. Gangelhoff’s unvested outstanding common stock options at the time of his separation were vested under the Separation Agreement. Outstanding stock options: Vested Un-vested 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 ) - Exercised during the year Forfeited during the year (19,926 ) (82,140 ) (102,066 ) Balance as of December 31, 2016 738,065 844,334 1,582,399 Granted year-to-date 20,100 213,300 233,400 Vested year-to-date 165,783 (165,783 ) - Exercised year-to-date (42,000 ) - (42,000 ) Forfeited year-to-date (142,119 ) (99,415 ) (241,534 ) Balance as of June 30, 2017 739,829 792,436 1,532,265 Compensation expense related to unvested options not yet recognized is $541,000. We expect to recognize this compensation expense over the next three years ($89,000 in 2017, $217,000 in 2018, $167,000 in 2019, and $68,000 in 2020). Stock Appreciation Rights (SARs) As of June 30, 2017, we have issued SARs for 280,472 shares of common stock to employees. The strike price of the SARs was between $7.84 and $10.38, which was equal to the market price of the common stock at the date of issuance. As of June 30, 2017, 114,031 of the SARs were vested. On June 30, 2017 the market price of GWG’s common stock was $10.58. 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 year 4,063 36,674 40,737 Vested during the year 3,360 (3,360 ) Forfeited during the year - - - Balance as of June 30, 2017 114,031 166,441 280,472 A liability for the SARs was recorded on June 30, 2017 in the amount of $316,000 and compensation expense was charged for the amount of $312,000. Upon exercise of SARs, the Company is obliged to make cash payment of the “Appreciation Amount,” which is equal to the positive difference between the fair market value of the Company's common stock on the date of exercise less the fair market value of the Share Appreciation Unit on the date of grant.

Net Loss per Common Share

Net Loss per Common Share	6 Months Ended
	Jun. 30, 2017
Net Loss Per Common Share [Abstract]
Net Loss per Common Share	(15) Net Loss per Common Share We have outstanding Series A, RPS and RPS 2, as described in Notes 9, 10 and 11. The Series A, RPS and RPS 2 are anti-dilutive to our net loss or income attributable to common shareholders calculation at both June 30, 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 June 30, 2017 and 2016 and have not been included in the fully diluted net loss per common share calculation.

Commitments

Commitments	6 Months Ended
	Jun. 30, 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 2025. Under the amended lease we are obligated to pay base rent plus common area maintenance and a share of building operating costs. Rent expenses under this agreement were $110,000 and $223,000 during the three and six months ended June 30, 2017 and $123,000 and $232,000 for the three and six months ended June 30, 2016. Minimum lease payments under the amended lease are as follows: Six months ending December 31, 2017 $ 90,000 2018 185,000 2019 191,000 2020 198,000 2021 204,000 2022 210,000 2023 217,000 2024 223,000 2025 230,000 $ 1,748,000

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments/Contingencies [Abstract]
Contingencies	(17) Contingencies Litigation

Guarantee of L Bonds

Guarantee of L Bonds	6 Months Ended
	Jun. 30, 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. GWG Life’s equity in DLP III and DLP IV serve as collateral for our L Bond obligations. 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 June 30, 2017 and December 31, 2016, with respect to the financial position, and for the three and six months ended June 30, 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 represents 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 June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 49,632,850 $ 1,451,260 $ 1,209,362 $ - $ 52,293,472 Restricted cash - 4,454,226 41,705,405 - 46,159,631 Investment in life insurance policies, at fair value - 41,720,141 535,329,411 - 577,049,552 Secured MCA advances - - 3,525,381 - 3,525,381 Life insurance policy benefits receivable - - 6,970,000 - 6,970,000 Deferred taxes, net 1,620,303 - - - 1,620,303 Other assets 3,030,391 1,435,297 352,461 (942,339 ) 3,875,810 Investment in subsidiaries 473,239,085 429,798,593 - (903,037,678 ) - TOTAL ASSETS $ 527,522,629 $ 478,859,517 $ 589,092,020 $ (903,980,017 ) $ 691,494,149 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 $ - $ (1,076,118 ) $ 150,084,944 $ - $ 149,008,826 Series I Secured Notes - 6,680,961 - - 6,680,961 L Bonds 400,832,308 - - - 400,832,308 Accounts payable 1,166,827 1,377,121 1,616,149 - 4,160,097 Interest and dividends payable 10,312,340 1,087,782 2,995,669 (8,747 ) 14,387,044 Other accrued expenses 1,321,915 990,255 1,157,096 (933,592 ) 2,535,674 TOTAL LIABILITIES 413,633,390 9,060,001 155,853,858 (942,339 ) 577,604,910 STOCKHOLDERS’ EQUITY Member’s capital - 469,799,516 433,238,162 (903,037,678 ) - Convertible preferred stock 19,732,262 - - - 19,732,262 Redeemable preferred stock and Series 2 redeemable preferred stock 118,707,840 - - - 118,707,840 Common stock 5,784 - - - 5,784 Accumulated deficit (24,556,647 ) - - - (24,556,647 ) TOTAL STOCKHOLDERS’ EQUITY 113,889,239 469,799,516 433,238,162 (903,037,678 ) 113,889,239 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 527,522,629 $ 478,859,517 $ 589,092,020 $ (903,980,017 ) $ 691,494,149 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 June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 133,250 $ - $ (133,250 ) $ - Gain on life insurance policies, net - 201,685 11,094,581 - 11,296,266 MCA income - - 133,583 - 133,583 Interest and other income 69,221 30,134 164,558 (26,176 ) 237,737 TOTAL REVENUE 69,221 365,069 11,392,722 (159,426 ) 11,667,586 EXPENSES Policy servicing fees - - 133,250 (133,250 ) - Interest expense 8,325,874 391,061 3,555,266 (26,176 ) 12,246,025 Employee compensation and benefits 2,109,562 1,529,188 102,549 - 3,741,299 Legal and professional fees 284,756 179,461 866,372 - 1,330,589 Provision for MCA advances - - 878,000 - 878,000 Other expenses 1,885,146 650,320 347,632 - 2,883,098 TOTAL EXPENSES 12,605,338 2,750,030 5,883,069 (159,426 ) 21,079,011 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (12,536,117 ) (2,384,961 ) 5,509,653 - (9,411,425 ) EQUITY IN INCOME OF SUBSIDIARIES 3,124,692 7,241,779 - (10,366,471 ) - INCOME (LOSS) BEFORE INCOME TAXES (9,411,425 ) 4,856,818 5,509,653 (10,366,471 ) (9,411,425 ) INCOME TAX BENEFIT (3,717,174 ) - - - (3,717,174 ) NET INCOME (LOSS) (5,694,251 ) 4,856,818 5,509,653 (10,366,471 ) (5,694,251 ) Preferred stock dividends 2,031,097 - - - 2,031,097 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (7,725,348 ) $ 4,856,818 $ 5,509,653 $ (10,366,471 ) $ (7,725,348 ) For the three months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ - $ - $ - $ - Gain on life insurance policies, net - - 20,383,347 - 20,383,347 MCA income - - 223,255 - 223,255 Interest and other income 71,222 706 157,927 (58,975 ) 170,880 TOTAL REVENUE 71,222 706 20,764,529 (58,975 ) 20,777,482 EXPENSES Policy servicing fees - - - - - Interest expense 7,530,444 644,735 1,648,452 (58,975 ) 9,764,656 Employee compensation and benefits 1,638,893 1,283,968 148,646 - 3,071,507 Legal and professional fees 783,596 476,505 44,252 - 1,304,353 Other expenses 1,519,349 425,354 387,982 - 2,332,685 TOTAL EXPENSES 11,472,282 2,830,562 2,229,332 (58,975 ) 16,473,201 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (11,401,060 ) (2,829,856 ) 18,535,197 - 4,304,281 EQUITY IN INCOME OF SUBSIDIARIES 15,705,341 18,835,036 - (34,540,377 ) - INCOME BEFORE INCOME TAXES 4,304,281 16,005,180 18,535,197 (34,540,377 ) 4,340,281 INCOME TAX EXPENSE 1,822,030 - - - 1,822,030 NET INCOME 2,482,250 16,005,180 18,535,197 (34,540,377 ) 2,482,250 Preferred stock dividends 600,924 - - - 600,924 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 1,881,326 $ 16,005,180 $ 18,535,197 $ (34,540,377 ) $ 1,881,326 For the six months ended June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 186,275 $ - $ (186,275 ) $ - Gain on life insurance policies, net - 1,701,012 28,995,074 - 30,696,086 MCA income - - 380,159 - 380,159 Interest and other income 154,228 49,010 543,643 (67,195 ) 679,686 TOTAL REVENUE 154,228 1,936,297 29,918,876 (253,470 ) 31,755,931 EXPENSES Policy servicing fees - - 186,275 (186,275 ) - Interest expense 17,587,908 677,415 7,292,113 (67,195 ) 25,490,241 Employee compensation and benefits 4,038,357 2,750,770 115,232 - 6,904,359 Legal and professional fees 777,571 440,549 1,058,817 - 2,276,937 Provision for MCA advances - - 878,000 - 878,000 Other expenses 3,548,149 1,533,051 582,221 - 5,663,421 TOTAL EXPENSES 25,951,985 5,401,785 10,112,658 (253,470 ) 41,212,958 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (25,797,757 ) (3,465,488 ) 19,806,218 - (9,457,027 ) EQUITY IN INCOME OF SUBSIDIARIES 16,340,730 21,305,986 - (37,646,716 ) - INCOME (LOSS) BEFORE INCOME TAXES (9,457,027 ) 17,840,498 19,806,218 (37,646,716 ) (9,457,027 ) INCOME TAX BENEFIT (3,717,674 ) - - - (3,717,674 ) NET INCOME (LOSS) (5,739,353 ) 17,840,498 19,806,218 (37,646,716 ) (5,739,353 ) Preferred stock dividends (3,898,857 ) - - - (3,898,857 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (9,638,210 ) $ 17,840,498 $ 19,806,218 $ (37,646,716 ) $ (9,638,210 ) For the six months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance policies, net - - 38,097,059 - 38,097,059 MCA income - - 368,216 - 368,216 Interest and other income 106,019 1,012 198,946 (89,877 ) 216,100 TOTAL REVENUE 106,019 14,429 38,664,221 (103,294 ) 38,681,375 EXPENSES Policy servicing fees - - 13,417 (13,417 ) - Interest expense 14,618,037 1,301,971 3,083,680 (89,877 ) 18,913,811 Employee compensation and benefits 3,175,323 2,113,049 249,333 - 5,537,705 Legal and professional fees 1,378,335 1,011,155 120,991 - 2,510,481 Other expenses 2,777,326 1,394,028 573,491 - 4,744,845 TOTAL EXPENSES 21,949,021 5,820,203 4,040,912 (103,294 ) 31,706,842 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (21,843,002 ) (5,805,774 ) 34,623,309 - 6,974,533 EQUITY IN INCOME OF SUBSIDIARIES 28,817,535 35,136,402 - (63,953,937 ) - INCOME BEFORE INCOME TAXES 6,974,533 29,330,628 34,623,309 (63,953,937 ) 6,974,533 INCOME TAX EXPENSE 2,906,747 - - - 2,906,747 NET INCOME 4,067,786 29,330,628 34,623,309 (63,953,937 ) 4,067,786 Preferred stock dividends (1,112,155 ) - - - (1,112,155 ) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 2,955,631 $ 29,330,628 $ 34,623,309 $ (63,953,937 ) $ 2,955,631 Condensed Consolidating Statements of Cash Flows For the three months ended June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (5,694,251 ) $ 4,856,818 $ 5,509,653 $ (10,366,471 ) $ (5,694,251 ) Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (3,124,692 ) (7,241,779 ) - 10,366,471 - Change in fair value of life insurance policies - (134,399 ) (15,101,103 ) - (15,235,502 ) Amortization of deferred financing and issuance costs 926,816 28,964 542,168 - 1,497,948 Deferred income taxes (3,717,174 ) - - - (3,717,174 ) Preferred stock dividends payable 363,959 - - - 363,959 (Increase) decrease in operating assets: Life insurance policy benefits receivable - 600,000 1,405,000 - 2,005,000 Other assets (32,646,205 ) (23,493,280 ) (297,040 ) 55,878,537 (557,988 ) Increase (decrease) in operating liabilities: Due to related party 398,030 - (400,000 ) - (1,970 ) Accounts payable and accrued expenses 1,213,002 (1,405,114 ) 1,230,967 - 1,038,855 NET CASH FLOWS USED IN OPERATING ACTIVITIES (42,280,515 ) (26,788,790 ) (7,110,355 ) 55,878,537 (20,301,123 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (19,432,338 ) - (19,432,338 ) Carrying value of matured life insurance policies - 256,152 2,758,682 - 3,014,834 Investment in Secured MCA advances - - (39,671 ) - (39,671 ) Proceeds from Secured MCA advances - - 653,315 - 653,315 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 256,152 (16,060,012 ) - (15,803,860 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - (3,845,037 ) - (3,845,037 ) Payments for issuance of senior debt - (1,076,118 ) - - (1,076,118 ) Payments for redemption of Series I Secured Notes - (4,348,372 ) - - (4,348,372 ) Proceeds from issuance of L Bonds 31,875,811 - - - 31,875,811 Payments for issuance and redemption of L Bonds (15,025,566 ) - - - (15,025,566 ) Payments to restricted cash - (893,893 ) 2,825,851 - 1,931,958 Issuance of member capital - 31,450,843 24,427,694 (55,878,537 ) - Issuance of common stock 4 - - - 4 Proceeds from issuance of preferred stock 34,301,747 - - - 34,301,747 Payments for issuance and redemption of preferred stock (3,318,211 ) - - - (3,318,211 ) Payments of preferred stock dividends (2,031,097 ) - - - (2,031,097 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 45,802,688 25,132,460 23,408,508 (55,878,537 ) 38,465,119 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,522,173 (1,400,178 ) 238,141 2,360,136 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 46,110,677 2,851,438 971,221 - 49,933,336 END OF THE PERIOD $ 49,632,850 $ 1,451,260 $ 1,209,362 $ - $ 52,293,472 For the three months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,482,250 $ 16,005,180 $ 18,535,197 $ (34,540,377 ) $ 2,482,250 Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (15,705,341 ) (18,835,036 ) - 34,540,377 - Change in fair value of life insurance policies - - (21,241,376 ) - (21,241,376 ) Amortization of deferred financing and issuance costs 2,261,032 (282,257 ) 549,199 - 2,527,974 Deferred income taxes 1,851,018 - - - 1,851,018 Preferred stock dividends payable 166,472 - - - 166,472 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - 9,083,817 - 9,083,817 Other assets (21,796,633 ) (12,903,506 ) - 33,489,247 (1,210,892 ) Increase (decrease) in operating liabilities: Due to related party (71,975 ) 17,802 (1,760,000 ) - (1,814,173 ) Accounts payable and other accrued expenses 1,458,476 130,596 (2,364,285 ) - (775,213 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (29,354,701 ) (15,867,221 ) 2,802,552 33,489,247 (8,930,123 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (24,373,714 ) - (24,373,714 ) Carrying value of matured life insurance policies - - 1,691,764 - 1,691,764 Investment in Secured MCA advances - - (1,293,829 ) (1,293,829 ) Proceeds from Secured MCA advances - - 907,649 - 907,649 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (23,068,130 ) - (23,068,130 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - (3,000,000 ) (3,000,000 ) Payments for redemption of Series I Secured Notes - (485,350 ) - - (485,350 ) Proceeds from issuance of L Bonds 36,757,771 - - - 36,757,771 Payments for issuance and redemption of L Bonds (11,753,782 ) - - - (11,753,782 ) Payments to restricted cash - (116,672 ) 8,784,498 - 8,667,826 Issuance of member capital - 18,951,362 14,537,885 (33,489,247 ) - Issuance of common stock 166,125 - - - 166,125 Proceeds from issuance of preferred stock 9,401,118 - 71,555 - 9,472,673 Payments for issuance and redemption of preferred stock (838,021 ) - (7,340 ) - (845,361 ) Payments of preferred stock dividends (600,924 ) - - - (600,924 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 33,132,287 18,349,340 20,386,598 (33,489,247 ) 38,378,978 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,777,586 2,482,119 121,020 - 6,380,725 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 6,274,035 4,340,365 384,225 - 10,998,625 END OF THE PERIOD $ 10,051,621 $ 6,822,484 $ 505,245 $ - $ 17,379,350 For the six months ended June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (5,739,353 ) $ 17,840,498 $ 19,806,218 $ (37,646,716 ) $ (5,739,353 ) Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (16,340,730 ) (21,305,986 ) - 37,646,716 - Change in fair value of life insurance policies - (1,193,821 ) (27,925,514 ) - (29,119,335 ) Amortization of deferred financing and issuance costs 2,855,809 74,384 1,233,958 - 4,164,151 Deferred income taxes (3,717,674 ) - - - (3,717,674 ) Preferred stock dividends payable 700,748 - - - 700,748 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (1,625,000 ) - (1,625,000 ) Other assets (27,138,260 ) (55,534,365 ) 458,179 83,082,776 868,330 Increase (decrease) in operating liabilities: Due to related party 1,089,895 320 (1,100,000 ) - (9,785 ) Accounts payable and other accrued expenses 1,637,970 (1,563,846 ) 2,181,963 - 2,256,087 NET CASH FLOWS USED IN OPERATING ACTIVITIES (46,651,595 ) (61,682,816 ) (6,970,196 ) 83,082,776 (32,221,831 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (42,121,671 ) - (42,121,671 ) Carrying value of matured life insurance policies - 751,576 4,632,232 - 5,383,808 Investment in Secured MCA advances - - (39,671 ) - (39,671 ) Proceeds from Secured MCA advances - - 1,423,702 - 1,423,702 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 751,576 (36,105,408 ) - (35,353,832 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - (7,099,537 ) - (7,099,537 ) Payments for issuance of senior debt (1,076,118 ) (114,294 ) - (1,190,412 ) Payments for redemption of Series I Secured Notes - (9,798,261 ) - - (9,798,261 ) Proceeds from issuance of L Bonds 56,744,470 - - - 56,744,470 Payments for issuance and redemption of L Bonds (39,197,163 ) - - - (39,197,163 ) Payments to restricted cash - (2,336,577 ) (5,996,458 ) - (8,333,035 ) Issuance of member capital - 26,232,504 56,850,272 (83,082,776 ) - Payments for issuance and redemption of common stock (1,603,556 ) - - - (1,603,556 ) Proceeds from issuance of preferred stock 61,480,941 - - - 61,480,941 Payments for issuance and redemption of preferred stock (5,722,437 ) - - - (5,722,437 ) Payments of preferred stock dividends (3,898,857 ) - - - (3,898,857 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 67,803,398 13,021,548 43,639,983 (83,082,776 ) 41,382,153 NET INCREASE IN CASH AND CASH EQUIVALENTS 21,151,803 (47,909,692 ) 564,379 - (26,193,510 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 28,481,047 49,360,952 644,983 - 78,486,982 END OF THE PERIOD $ 49,632,850 $ 1,451,260 $ 1,209,362 $ - $ 52,293,472 For the six months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 4,067,786 $ 29,330,628 $ 34,623,309 $ (63,953,937 ) $ 4,067,786 Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (28,817,535 ) (35,136,402 ) - 63,953,937 - Change in fair value of life insurance policies - - (32,772,929 ) - (32,772,929 ) Amortization of deferred financing and issuance costs 3,909,923 (1,446,463 ) 848,702 - 3,312,162 Deferred income taxes 2,906,747 - - - 2,906,747 Preferred stock dividends payable 330,049 - - - 330,049 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (6,829,022 ) (6,829,022 ) Other assets (60,457,838 ) (37,895,574 ) - 97,315,946 (1,037,466 ) Increase in operating liabilities: Due to related party (2,802,976 ) 1,195 2,700,000 - (101,781 ) Accounts payable and accrued expenses 2,240,523 717,298 (1,765,065 ) - 1,192,756 NET CASH FLOWS USED IN OPERATING ACTIVITIES (78,623,321 ) (44,429,318 ) (3,195,005 ) 97,315,946 (28,931,698 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (48,700,036 ) - (48,700,036 ) Carrying value of matured life insurance policies - - 6,302,243 - 6,302,243 Investment in Secured MCA advances - - (5,647,414 ) - (5,647,414 ) Proceeds from Secured MCA advances - - 1,025,792 - 1,025,792 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (47,019,415 ) - (47,019,415 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 17,000,000 - 17,000,000 Payments for redemption of Series I Secured Notes - (5,722,743 ) - - (5,722,743 ) Proceeds from issuance of L Bonds 71,126,660 - - - 71,126,660 Payments for issuance and redemption of L Bonds (22,663,475 ) - - - (22,663,475 ) Payments to restricted cash - (2,822,051 ) (5,996,843 ) - (8,818,894 ) Issuance of common stock 212,670 - - - 212,670 Proceeds from issuance of preferred stock 10,429,654 - 71,555 - 10,501,209 Payments for issuance and redemption of preferred stock (1,610,574 ) - (7,340 ) - (1,617,914 ) Payments of preferred stock dividends (1,112,155 ) - - (1,112,155 ) Issuance of member capital - 57,813,874 39,502,072 (97,315,946 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 56,382,780 49,269,080 50,569,444 (97,315,946 ) 58,905,358 NET INCREASE IN CASH AND CASH EQUIVALENTS (22,240,541 ) 4,839,762 355,024 - (17,045,755 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 10,051,621 $ 6,822,484 $ 505,245 $ - $ 17,379,350

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2017
Concentrations [Abstract]
Concentrations	(19) Concentrations 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. Life insurance company June 30, December 31, 2017 2016 John Hancock 14.13 % 14.36 % AXA Equitable 12.69 % 13.42 % Lincoln National 10.86 % 11.22 % Transamerica 10.31 % * * 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 of our portfolio: State of Residence June 30, December 31, 2017 2016 Florida 20.30 % 19.42 % California 19.29 % 20.72 %

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	(20) Subsequent events Since June 30, 2017, we have issued approximately $15,789,000 of L Bonds. Since June 30, 2017, we have issued approximately $12,762,000 of RPS 2. As of the date of this report, we exercised our contractual rights to all for the redemption of our Series I Secured Notes and our Series A Preferred Stock and all outstanding warrants related to our Series A offering.

Nature of Business and Summar27

Nature of Business and Summary of Significant Accounting Policies(Policies)	6 Months Ended
	Jun. 30, 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 June 30, 2017 and December 31, 2016, a total of $339,000 and $42,000, respectively, of our “other assets” comprised direct costs and deposits that we had 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)	6 Months Ended
	Jun. 30, 2017
Investment in Life Insurance Policies [Abstract]
Summary of policies according to estimated life expectancy dates	As of June 30, 2017 As of December 31, 2016 Years Ending December 31, Number of Policies Estimated Fair Value Face Value Number of Policies Estimated Fair Value Face Value 2017 4 $ 3,044,000 $ 3,375,000 11 $ 14,837,000 $ 16,939,000 2018 11 16,462,000 20,853,000 23 30,830,000 42,564,000 2019 61 64,377,000 92,676,000 55 57,556,000 88,858,000 2020 96 92,535,000 159,203,000 93 85,414,000 159,814,000 2021 85 71,872,000 142,961,000 86 73,825,000 158,744,000 2022 88 80,308,000 184,162,000 66 56,909,000 147,222,000 2023 80 58,506,000 166,527,000 64 44,953,000 128,581,000 Thereafter 368 189,946,000 755,606,000 292 146,868,000 618,953,000 Totals 793 $ 577,050,000 $ 1,525,363,000 690 $ 511,192,000 1,361,675,000
Schedule of reconciliation of gain on life insurance policies	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Change in estimated probabilistic cash flows $ 16,446,000 $ 17,972,000 $ 32,849,000 $ 27,425,000 Unrealized gain on acquisitions 8,044,000 9,822,000 18,646,000 17,841,000 Premiums and other annual fees (11,859,000 ) (8,995,000 ) (22,949,000 ) (17,441,000 ) Change in discount rates(1) 4,143,000 629,000 4,143,000 838,000 Change in life expectancy evaluation (2) (6,662,000 ) (1,545,000 ) (8,604,000 ) (914,000 ) Realized gain on maturities 7,920,000 8,137,000 24,526,000 22,765,000 Fair value of matured policies (6,736,000 ) (5,637,000 ) (17,915,000 ) (12,417,000 ) Gain on life insurance policies, net $ 11,296,000 $ 20,383,000 $ 30,696,000 $ 38,097,000 (1) The discount rate applied to estimate the fair value of the portfolio of life insurance policies we own was 10.81% as of June 30, 2017, compared to 10.96% as of December 31, 2016 and 11.05% as of June 30, 2016. The carrying value of policies acquired during each quarterly reporting period is adjusted to current fair value using the fair value discount rate applied to the entire portfolio as of that reporting date. (2) The change in fair value due to updating life expectancies on certain life insurance policies in our portfolio.
Schedule of estimated premium payments to portfolio of life insurance policies	Years Ending December 31, Premiums Servicing Premiums and Six months ending December 31, 2017 $ 24,455,000 $ 654,000 $ 25,109,000 2018 52,611,000 654,000 53,265,000 2019 58,206,000 654,000 58,860,000 2020 65,722,000 654,000 66,376,000 2021 74,105,000 654,000 74,759,000 2022 83,310,000 654,000 83,964,000 $ 358,409,000 $ 3,924,000 $ 362,333,000

Fair Value Definition and Hie29

Fair Value Definition and Hierarchy (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Definition and Hierarchy [Abstract]
Schedule of reconciliation of investments in life insurance policies	Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Beginning balance $ 545,397,000 $ 387,402,000 $ 511,192,000 $ 356,650,000 Purchases 19,432,000 24,869,000 42,122,000 48,700,000 Maturities (initial cost basis) (3,014,000 ) (1,692,000 ) (5,384,000 ) (6,303,000 ) Net change in fair value 15,235,000 21,241,000 29,120,000 32,773,000 Ending balance $ 577,050,000 $ 431,820,000 $ 577,050,000 $ 431,820,000
Summary of inputs utilized in estimating fair value of portfolio life insurance policies	As of June 30, 2017 As of December 31, Weighted-average age of insured, years * 81.5 81.6 Weighted-average life expectancy, months * 82.6 83.2 Average face amount per policy $ 1,924,000 $ 1,973,000 Discount rate 10.81 % 10.96 % (*) Weighted average by face amount of policy benefits
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 June 30, 2017 $ 78,665,000 $ 39,075,000 $ (38,334,000 ) $ (75,932,000 ) 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% June 30, 2017 $ 60,606,488 $ 29,002,000 $ (26,678,000 ) $ (51,277,000 ) 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 Volatility Term September 2012 2,500 $ 0.72 0.31 % 40.49 % 5 years September 2014 16,000 $ 1.26 1.85 % 17.03 % 5 years 18,500

Series I Secured Notes (Tables)

Series I Secured Notes (Tables)	6 Months Ended
	Jun. 30, 2017
Series I Secured Notes [Abstract]
Summary of Future contractual maturities of Series I payable and future amortization	Years Ending December 31, Contractual Maturities Amortization of Deferred Financing Costs Six months ending December 31 ,2017 $ 749,000 $ 3,000 2018 2,376,000 25,000 2019 1,024,000 17,000 2020 1,725,000 41,000 2021 941,000 48,000 $ 6,815,000 $ 134,000

L Bonds (Tables)

L Bonds (Tables)	6 Months Ended
	Jun. 30, 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 Six months ending December 31, 2017 $ 47,068,000 $ 353,000 2018 108,772,000 2,181,000 2019 116,767,000 4,128,000 2020 49,062,000 2,147,000 2021 28,753,000 1,411,000 Thereafter 57,428,000 3,319,000 $ 407,850,000 $ 13,539,000

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
Income Taxes [Abstract]
Schedule of deferred income tax expense (benefit)	Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Income tax provision (benefit): Current: Federal $ (27,000 ) $ (23,000 ) $ - $ - State $ (7,000 ) $ (6,000 ) $ - $ - Total current tax expense (benefit) (34,000 ) (29,000 ) - Deferred: Federal $ (2,798,000 ) $ 1,397,000 $ (2,818,000 ) $ 2,203,000 State $ (885,000 ) $ 454,000 $ (900,000 ) $ 704,000 Total deferred tax expense (benefit) (3,683,000 ) 1,851,000 (3,718,000 ) 2,907,000 Total income tax expense (benefit) (3,717,000 ) 1,822,000 (3,718,000 ) 2,907,000

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2017
Stock Incentive Plan [Abstract]
Schedule of outstanding stock options	Vested Un-vested 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 ) - Exercised during the year Forfeited during the year (19,926 ) (82,140 ) (102,066 ) Balance as of December 31, 2016 738,065 844,334 1,582,399 Granted year-to-date 20,100 213,300 233,400 Vested year-to-date 165,783 (165,783 ) - Exercised year-to-date (42,000 ) - (42,000 ) Forfeited year-to-date (142,119 ) (99,415 ) (241,534 ) Balance as of June 30, 2017 739,829 792,436 1,532,265
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 year 4,063 36,674 40,737 Vested during the year 3,360 (3,360 ) Forfeited during the year - - - Balance as of June 30, 2017 114,031 166,441 280,472

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments/Contingencies [Abstract]
Schedule of minimum lease payments under amendment lease	Six months ending December 31, 2017 $ 90,000 2018 185,000 2019 191,000 2020 198,000 2021 204,000 2022 210,000 2023 217,000 2024 223,000 2025 230,000 $ 1,748,000

Guarantee of L Bonds (Tables)

Guarantee of L Bonds (Tables)	6 Months Ended
	Jun. 30, 2017
Guarantee of L Bonds [Abstract]
Schedule of condensed consolidating balance sheets	June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 49,632,850 $ 1,451,260 $ 1,209,362 $ - $ 52,293,472 Restricted cash - 4,454,226 41,705,405 - 46,159,631 Investment in life insurance policies, at fair value - 41,720,141 535,329,411 - 577,049,552 Secured MCA advances - - 3,525,381 - 3,525,381 Life insurance policy benefits receivable - - 6,970,000 - 6,970,000 Deferred taxes, net 1,620,303 - - - 1,620,303 Other assets 3,030,391 1,435,297 352,461 (942,339 ) 3,875,810 Investment in subsidiaries 473,239,085 429,798,593 - (903,037,678 ) - TOTAL ASSETS $ 527,522,629 $ 478,859,517 $ 589,092,020 $ (903,980,017 ) $ 691,494,149 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 $ - $ (1,076,118 ) $ 150,084,944 $ - $ 149,008,826 Series I Secured Notes - 6,680,961 - - 6,680,961 L Bonds 400,832,308 - - - 400,832,308 Accounts payable 1,166,827 1,377,121 1,616,149 - 4,160,097 Interest and dividends payable 10,312,340 1,087,782 2,995,669 (8,747 ) 14,387,044 Other accrued expenses 1,321,915 990,255 1,157,096 (933,592 ) 2,535,674 TOTAL LIABILITIES 413,633,390 9,060,001 155,853,858 (942,339 ) 577,604,910 STOCKHOLDERS’ EQUITY Member’s capital - 469,799,516 433,238,162 (903,037,678 ) - Convertible preferred stock 19,732,262 - - - 19,732,262 Redeemable preferred stock and Series 2 redeemable preferred stock 118,707,840 - - - 118,707,840 Common stock 5,784 - - - 5,784 Accumulated deficit (24,556,647 ) - - - (24,556,647 ) TOTAL STOCKHOLDERS’ EQUITY 113,889,239 469,799,516 433,238,162 (903,037,678 ) 113,889,239 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 527,522,629 $ 478,859,517 $ 589,092,020 $ (903,980,017 ) $ 691,494,149 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 June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 133,250 $ - $ (133,250 ) $ - Gain on life insurance policies, net - 201,685 11,094,581 - 11,296,266 MCA income - - 133,583 - 133,583 Interest and other income 69,221 30,134 164,558 (26,176 ) 237,737 TOTAL REVENUE 69,221 365,069 11,392,722 (159,426 ) 11,667,586 EXPENSES Policy servicing fees - - 133,250 (133,250 ) - Interest expense 8,325,874 391,061 3,555,266 (26,176 ) 12,246,025 Employee compensation and benefits 2,109,562 1,529,188 102,549 - 3,741,299 Legal and professional fees 284,756 179,461 866,372 - 1,330,589 Provision for MCA advances - - 878,000 - 878,000 Other expenses 1,885,146 650,320 347,632 - 2,883,098 TOTAL EXPENSES 12,605,338 2,750,030 5,883,069 (159,426 ) 21,079,011 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (12,536,117 ) (2,384,961 ) 5,509,653 - (9,411,425 ) EQUITY IN INCOME OF SUBSIDIARIES 3,124,692 7,241,779 - (10,366,471 ) - INCOME (LOSS) BEFORE INCOME TAXES (9,411,425 ) 4,856,818 5,509,653 (10,366,471 ) (9,411,425 ) INCOME TAX BENEFIT (3,717,174 ) - - - (3,717,174 ) NET INCOME (LOSS) (5,694,251 ) 4,856,818 5,509,653 (10,366,471 ) (5,694,251 ) Preferred stock dividends 2,031,097 - - - 2,031,097 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (7,725,348 ) $ 4,856,818 $ 5,509,653 $ (10,366,471 ) $ (7,725,348 ) For the three months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ - $ - $ - $ - Gain on life insurance policies, net - - 20,383,347 - 20,383,347 MCA income - - 223,255 - 223,255 Interest and other income 71,222 706 157,927 (58,975 ) 170,880 TOTAL REVENUE 71,222 706 20,764,529 (58,975 ) 20,777,482 EXPENSES Policy servicing fees - - - - - Interest expense 7,530,444 644,735 1,648,452 (58,975 ) 9,764,656 Employee compensation and benefits 1,638,893 1,283,968 148,646 - 3,071,507 Legal and professional fees 783,596 476,505 44,252 - 1,304,353 Other expenses 1,519,349 425,354 387,982 - 2,332,685 TOTAL EXPENSES 11,472,282 2,830,562 2,229,332 (58,975 ) 16,473,201 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (11,401,060 ) (2,829,856 ) 18,535,197 - 4,304,281 EQUITY IN INCOME OF SUBSIDIARIES 15,705,341 18,835,036 - (34,540,377 ) - INCOME BEFORE INCOME TAXES 4,304,281 16,005,180 18,535,197 (34,540,377 ) 4,340,281 INCOME TAX EXPENSE 1,822,030 - - - 1,822,030 NET INCOME 2,482,250 16,005,180 18,535,197 (34,540,377 ) 2,482,250 Preferred stock dividends 600,924 - - - 600,924 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 1,881,326 $ 16,005,180 $ 18,535,197 $ (34,540,377 ) $ 1,881,326 For the six months ended June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 186,275 $ - $ (186,275 ) $ - Gain on life insurance policies, net - 1,701,012 28,995,074 - 30,696,086 MCA income - - 380,159 - 380,159 Interest and other income 154,228 49,010 543,643 (67,195 ) 679,686 TOTAL REVENUE 154,228 1,936,297 29,918,876 (253,470 ) 31,755,931 EXPENSES Policy servicing fees - - 186,275 (186,275 ) - Interest expense 17,587,908 677,415 7,292,113 (67,195 ) 25,490,241 Employee compensation and benefits 4,038,357 2,750,770 115,232 - 6,904,359 Legal and professional fees 777,571 440,549 1,058,817 - 2,276,937 Provision for MCA advances - - 878,000 - 878,000 Other expenses 3,548,149 1,533,051 582,221 - 5,663,421 TOTAL EXPENSES 25,951,985 5,401,785 10,112,658 (253,470 ) 41,212,958 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (25,797,757 ) (3,465,488 ) 19,806,218 - (9,457,027 ) EQUITY IN INCOME OF SUBSIDIARIES 16,340,730 21,305,986 - (37,646,716 ) - INCOME (LOSS) BEFORE INCOME TAXES (9,457,027 ) 17,840,498 19,806,218 (37,646,716 ) (9,457,027 ) INCOME TAX BENEFIT (3,717,674 ) - - - (3,717,674 ) NET INCOME (LOSS) (5,739,353 ) 17,840,498 19,806,218 (37,646,716 ) (5,739,353 ) Preferred stock dividends (3,898,857 ) - - - (3,898,857 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (9,638,210 ) $ 17,840,498 $ 19,806,218 $ (37,646,716 ) $ (9,638,210 ) For the six months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance policies, net - - 38,097,059 - 38,097,059 MCA income - - 368,216 - 368,216 Interest and other income 106,019 1,012 198,946 (89,877 ) 216,100 TOTAL REVENUE 106,019 14,429 38,664,221 (103,294 ) 38,681,375 EXPENSES Policy servicing fees - - 13,417 (13,417 ) - Interest expense 14,618,037 1,301,971 3,083,680 (89,877 ) 18,913,811 Employee compensation and benefits 3,175,323 2,113,049 249,333 - 5,537,705 Legal and professional fees 1,378,335 1,011,155 120,991 - 2,510,481 Other expenses 2,777,326 1,394,028 573,491 - 4,744,845 TOTAL EXPENSES 21,949,021 5,820,203 4,040,912 (103,294 ) 31,706,842 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (21,843,002 ) (5,805,774 ) 34,623,309 - 6,974,533 EQUITY IN INCOME OF SUBSIDIARIES 28,817,535 35,136,402 - (63,953,937 ) - INCOME BEFORE INCOME TAXES 6,974,533 29,330,628 34,623,309 (63,953,937 ) 6,974,533 INCOME TAX EXPENSE 2,906,747 - - - 2,906,747 NET INCOME 4,067,786 29,330,628 34,623,309 (63,953,937 ) 4,067,786 Preferred stock dividends (1,112,155 ) - - - (1,112,155 ) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 2,955,631 $ 29,330,628 $ 34,623,309 $ (63,953,937 ) $ 2,955,631
Schedule of condensed consolidating statements of cash flows	For the three months ended June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (5,694,251 ) $ 4,856,818 $ 5,509,653 $ (10,366,471 ) $ (5,694,251 ) Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (3,124,692 ) (7,241,779 ) - 10,366,471 - Change in fair value of life insurance policies - (134,399 ) (15,101,103 ) - (15,235,502 ) Amortization of deferred financing and issuance costs 926,816 28,964 542,168 - 1,497,948 Deferred income taxes (3,717,174 ) - - - (3,717,174 ) Preferred stock dividends payable 363,959 - - - 363,959 (Increase) decrease in operating assets: Life insurance policy benefits receivable - 600,000 1,405,000 - 2,005,000 Other assets (32,646,205 ) (23,493,280 ) (297,040 ) 55,878,537 (557,988 ) Increase (decrease) in operating liabilities: Due to related party 398,030 - (400,000 ) - (1,970 ) Accounts payable and accrued expenses 1,213,002 (1,405,114 ) 1,230,967 - 1,038,855 NET CASH FLOWS USED IN OPERATING ACTIVITIES (42,280,515 ) (26,788,790 ) (7,110,355 ) 55,878,537 (20,301,123 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (19,432,338 ) - (19,432,338 ) Carrying value of matured life insurance policies - 256,152 2,758,682 - 3,014,834 Investment in Secured MCA advances - - (39,671 ) - (39,671 ) Proceeds from Secured MCA advances - - 653,315 - 653,315 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 256,152 (16,060,012 ) - (15,803,860 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - (3,845,037 ) - (3,845,037 ) Payments for issuance of senior debt - (1,076,118 ) - - (1,076,118 ) Payments for redemption of Series I Secured Notes - (4,348,372 ) - - (4,348,372 ) Proceeds from issuance of L Bonds 31,875,811 - - - 31,875,811 Payments for issuance and redemption of L Bonds (15,025,566 ) - - - (15,025,566 ) Payments to restricted cash - (893,893 ) 2,825,851 - 1,931,958 Issuance of member capital - 31,450,843 24,427,694 (55,878,537 ) - Issuance of common stock 4 - - - 4 Proceeds from issuance of preferred stock 34,301,747 - - - 34,301,747 Payments for issuance and redemption of preferred stock (3,318,211 ) - - - (3,318,211 ) Payments of preferred stock dividends (2,031,097 ) - - - (2,031,097 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 45,802,688 25,132,460 23,408,508 (55,878,537 ) 38,465,119 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,522,173 (1,400,178 ) 238,141 2,360,136 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 46,110,677 2,851,438 971,221 - 49,933,336 END OF THE PERIOD $ 49,632,850 $ 1,451,260 $ 1,209,362 $ - $ 52,293,472 For the three months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,482,250 $ 16,005,180 $ 18,535,197 $ (34,540,377 ) $ 2,482,250 Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (15,705,341 ) (18,835,036 ) - 34,540,377 - Change in fair value of life insurance policies - - (21,241,376 ) - (21,241,376 ) Amortization of deferred financing and issuance costs 2,261,032 (282,257 ) 549,199 - 2,527,974 Deferred income taxes 1,851,018 - - - 1,851,018 Preferred stock dividends payable 166,472 - - - 166,472 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - 9,083,817 - 9,083,817 Other assets (21,796,633 ) (12,903,506 ) - 33,489,247 (1,210,892 ) Increase (decrease) in operating liabilities: Due to related party (71,975 ) 17,802 (1,760,000 ) - (1,814,173 ) Accounts payable and other accrued expenses 1,458,476 130,596 (2,364,285 ) - (775,213 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (29,354,701 ) (15,867,221 ) 2,802,552 33,489,247 (8,930,123 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (24,373,714 ) - (24,373,714 ) Carrying value of matured life insurance policies - - 1,691,764 - 1,691,764 Investment in Secured MCA advances - - (1,293,829 ) (1,293,829 ) Proceeds from Secured MCA advances - - 907,649 - 907,649 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (23,068,130 ) - (23,068,130 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - (3,000,000 ) (3,000,000 ) Payments for redemption of Series I Secured Notes - (485,350 ) - - (485,350 ) Proceeds from issuance of L Bonds 36,757,771 - - - 36,757,771 Payments for issuance and redemption of L Bonds (11,753,782 ) - - - (11,753,782 ) Payments to restricted cash - (116,672 ) 8,784,498 - 8,667,826 Issuance of member capital - 18,951,362 14,537,885 (33,489,247 ) - Issuance of common stock 166,125 - - - 166,125 Proceeds from issuance of preferred stock 9,401,118 - 71,555 - 9,472,673 Payments for issuance and redemption of preferred stock (838,021 ) - (7,340 ) - (845,361 ) Payments of preferred stock dividends (600,924 ) - - - (600,924 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 33,132,287 18,349,340 20,386,598 (33,489,247 ) 38,378,978 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,777,586 2,482,119 121,020 - 6,380,725 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 6,274,035 4,340,365 384,225 - 10,998,625 END OF THE PERIOD $ 10,051,621 $ 6,822,484 $ 505,245 $ - $ 17,379,350 For the six months ended June 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (5,739,353 ) $ 17,840,498 $ 19,806,218 $ (37,646,716 ) $ (5,739,353 ) Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (16,340,730 ) (21,305,986 ) - 37,646,716 - Change in fair value of life insurance policies - (1,193,821 ) (27,925,514 ) - (29,119,335 ) Amortization of deferred financing and issuance costs 2,855,809 74,384 1,233,958 - 4,164,151 Deferred income taxes (3,717,674 ) - - - (3,717,674 ) Preferred stock dividends payable 700,748 - - - 700,748 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (1,625,000 ) - (1,625,000 ) Other assets (27,138,260 ) (55,534,365 ) 458,179 83,082,776 868,330 Increase (decrease) in operating liabilities: Due to related party 1,089,895 320 (1,100,000 ) - (9,785 ) Accounts payable and other accrued expenses 1,637,970 (1,563,846 ) 2,181,963 - 2,256,087 NET CASH FLOWS USED IN OPERATING ACTIVITIES (46,651,595 ) (61,682,816 ) (6,970,196 ) 83,082,776 (32,221,831 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (42,121,671 ) - (42,121,671 ) Carrying value of matured life insurance policies - 751,576 4,632,232 - 5,383,808 Investment in Secured MCA advances - - (39,671 ) - (39,671 ) Proceeds from Secured MCA advances - - 1,423,702 - 1,423,702 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 751,576 (36,105,408 ) - (35,353,832 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - (7,099,537 ) - (7,099,537 ) Payments for issuance of senior debt (1,076,118 ) (114,294 ) - (1,190,412 ) Payments for redemption of Series I Secured Notes - (9,798,261 ) - - (9,798,261 ) Proceeds from issuance of L Bonds 56,744,470 - - - 56,744,470 Payments for issuance and redemption of L Bonds (39,197,163 ) - - - (39,197,163 ) Payments to restricted cash - (2,336,577 ) (5,996,458 ) - (8,333,035 ) Issuance of member capital - 26,232,504 56,850,272 (83,082,776 ) - Payments for issuance and redemption of common stock (1,603,556 ) - - - (1,603,556 ) Proceeds from issuance of preferred stock 61,480,941 - - - 61,480,941 Payments for issuance and redemption of preferred stock (5,722,437 ) - - - (5,722,437 ) Payments of preferred stock dividends (3,898,857 ) - - - (3,898,857 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 67,803,398 13,021,548 43,639,983 (83,082,776 ) 41,382,153 NET INCREASE IN CASH AND CASH EQUIVALENTS 21,151,803 (47,909,692 ) 564,379 - (26,193,510 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 28,481,047 49,360,952 644,983 - 78,486,982 END OF THE PERIOD $ 49,632,850 $ 1,451,260 $ 1,209,362 $ - $ 52,293,472 For the six months ended June 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 4,067,786 $ 29,330,628 $ 34,623,309 $ (63,953,937 ) $ 4,067,786 Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (28,817,535 ) (35,136,402 ) - 63,953,937 - Change in fair value of life insurance policies - - (32,772,929 ) - (32,772,929 ) Amortization of deferred financing and issuance costs 3,909,923 (1,446,463 ) 848,702 - 3,312,162 Deferred income taxes 2,906,747 - - - 2,906,747 Preferred stock dividends payable 330,049 - - - 330,049 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (6,829,022 ) (6,829,022 ) Other assets (60,457,838 ) (37,895,574 ) - 97,315,946 (1,037,466 ) Increase in operating liabilities: Due to related party (2,802,976 ) 1,195 2,700,000 - (101,781 ) Accounts payable and accrued expenses 2,240,523 717,298 (1,765,065 ) - 1,192,756 NET CASH FLOWS USED IN OPERATING ACTIVITIES (78,623,321 ) (44,429,318 ) (3,195,005 ) 97,315,946 (28,931,698 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (48,700,036 ) - (48,700,036 ) Carrying value of matured life insurance policies - - 6,302,243 - 6,302,243 Investment in Secured MCA advances - - (5,647,414 ) - (5,647,414 ) Proceeds from Secured MCA advances - - 1,025,792 - 1,025,792 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (47,019,415 ) - (47,019,415 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 17,000,000 - 17,000,000 Payments for redemption of Series I Secured Notes - (5,722,743 ) - - (5,722,743 ) Proceeds from issuance of L Bonds 71,126,660 - - - 71,126,660 Payments for issuance and redemption of L Bonds (22,663,475 ) - - - (22,663,475 ) Payments to restricted cash - (2,822,051 ) (5,996,843 ) - (8,818,894 ) Issuance of common stock 212,670 - - - 212,670 Proceeds from issuance of preferred stock 10,429,654 - 71,555 - 10,501,209 Payments for issuance and redemption of preferred stock (1,610,574 ) - (7,340 ) - (1,617,914 ) Payments of preferred stock dividends (1,112,155 ) - - (1,112,155 ) Issuance of member capital - 57,813,874 39,502,072 (97,315,946 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 56,382,780 49,269,080 50,569,444 (97,315,946 ) 58,905,358 NET INCREASE IN CASH AND CASH EQUIVALENTS (22,240,541 ) 4,839,762 355,024 - (17,045,755 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 10,051,621 $ 6,822,484 $ 505,245 $ - $ 17,379,350

Concentrations (Tables)

Concentrations (Tables)	6 Months Ended
	Jun. 30, 2017
Concentrations [Abstract]
Summary of the face value of insurance contracts	Life insurance company June 30, December 31, 2017 2016 John Hancock 14.13 % 14.36 % AXA Equitable 12.69 % 13.42 % Lincoln National 10.86 % 11.22 % Transamerica 10.31 % * * percentage does not exceed 10% of the total face value.
Summary of the number of insurance contracts	State of Residence June 30, December 31, 2017 2016 Florida 20.30 % 19.42 % California 19.29 % 20.72 %

Nature of Business and Summar37

Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Nature of Business and Summary of Significant Accounting Policies (Textual)
Direct costs and deposits	$ 339,000	$ 42,000

Restrictions on Cash (Details)

Restrictions on Cash (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Restrictions on Cash (Textual)
Restricted cash accounts	$ 46,160,000	$ 37,827,000

Investment in Life Insurance 39

Investment in Life Insurance Policies (Details)	Jun. 30, 2017USD ($)Policies	Dec. 31, 2016USD ($)Policies
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 Policies, 2017 | Policies	4	11
Number of Policies, 2018 | Policies	11	23
Number of Policies, 2019 | Policies	61	55
Number of Policies, 2020 | Policies	96	93
Number of Policies, 2021 | Policies	85	86
Number of Policies, 2022 | Policies	88	66
Number of Policies, 2023 | Policies	80	64
Number of Policies, Thereafter | Policies	368	292
Number of Policies, Totals | Policies	793	690
Estimated Fair Value, 2017	$ 3,044,000	$ 14,837,000
Estimated Fair Value, 2018	16,462,000	30,830,000
Estimated Fair Value, 2019	64,377,000	57,556,000
Estimated Fair Value, 2020	92,535,000	85,414,000
Estimated Fair Value, 2021	71,872,000	73,825,000
Estimated Fair Value, 2022	80,308,000	56,909,000
Estimated Fair Value, 2023	58,506,000	44,953,000
Estimated Fair Value, Thereafter	189,946,000	146,868,000
Estimated Fair Value, Totals	577,050,000	511,192,000
Face Value, 2017	3,375,000	16,939,000
Face Value, 2018	20,853,000	42,564,000
Face Value, 2019	92,676,000	88,858,000
Face Value, 2020	159,203,000	159,814,000
Face Value, 2021	142,961,000	158,744,000
Face Value, 2022	184,162,000	147,222,000
Face Value, 2023	166,527,000	128,581,000
Face Value, Thereafter	755,606,000	618,953,000
Face Value, Totals	$ 1,525,363,000	$ 1,361,675,000

Investment in Life Insurance 40

Investment in Life Insurance Policies (Details 1) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of reconciliation of gain on life settlements
Change in estimated probabilistic cash flows		$ 16,446,000	$ 17,972,000	$ 32,849,000	$ 27,425,000
Unrealized gain on acquisitions		8,044,000	9,822,000	18,646,000	17,841,000
Premiums and other annual fees		(11,859,000)	(8,995,000)	(22,949,000)	(17,441,000)
Change in discount rates(1)	[1]	4,143,000	629,000	4,143,000	838,000
Change in life expectancy evaluation (2)	[2]	(6,662,000)	(1,545,000)	(8,604,000)	(914,000)
Realized gain on maturities		7,920,000	8,137,000	24,526,000	22,765,000
Fair value of matured policies		(6,736,000)	(5,637,000)	(17,915,000)	(12,417,000)
Gain on life insurance policies, net		$ 11,296,000	$ 20,383,000	$ 30,696,000	$ 38,097,000
[1]	The discount rate applied to estimate the fair value of the portfolio of life insurance policies we own was 10.81% as of June 30, 2017, compared to 10.96% as of December 31, 2016 and 11.05% as of June 30, 2016. The carrying value of policies acquired during each quarterly reporting period is adjusted to current fair value using the fair value discount rate applied to the entire portfolio as of that reporting date.
[2]	The change in fair value due to updating life expectancies on certain life insurance policies in our portfolio.

Investment in Life Insurance 41

Investment in Life Insurance Policies (Details 2)	Jun. 30, 2017USD ($)
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Six months ending December 31, 2017	$ 25,109,000
2,018	53,265,000
2,019	58,860,000
2,020	66,376,000
2,021	74,759,000
2,022	83,964,000
Estimated expected premium payments	362,333,000
Premiums [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Six months ending December 31, 2017	24,455,000
2,018	52,611,000
2,019	58,206,000
2,020	65,722,000
2,021	74,105,000
2,022	83,310,000
Estimated expected premium payments	358,409,000
Servicing [Member]
Summary of estimated expected premium payments to maintain the above life insurance policies assuming no mortalities
Six 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		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Investment in Life Insurance Policies (Textual)
Cost-of-insurance (premium) rates			$ 1,000,000
Benefits recognized from insurance policy	$ 10,935,000	$ 9,829,000	29,910,000	$ 29,067,000
Carrying value of life insurance policy	3,014,000	1,692,000	5,384,000	6,302,000
Realized gains from life insurance policy	$ 7,920,000	$ 8,137,000	$ 24,526,000	$ 22,765,000
Life Insurance Policies [Member]
Investment in Life Insurance Policies (Textual)
Discount rate applied to portfolio			10.81%	11.05%	10.96%

Fair Value Definition and Hie43

Fair Value Definition and Hierarchy (Details) - Life Insurance Policies [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of reconciliation of investments in life insurance contracts
Beginning balance	$ 545,397,000	$ 387,402,000	$ 511,192,000	$ 356,650,000
Purchases	19,432,000	24,869,000	42,122,000	48,700,000
Maturities (initial cost basis)	(3,014,000)	(1,692,000)	(5,384,000)	(6,303,000)
Net change in fair value	15,235,000	21,241,000	29,120,000	32,773,000
Ending balance	$ 577,050,000	$ 431,820,000	$ 577,050,000	$ 431,820,000

Fair Value Definition and Hie44

Fair Value Definition and Hierarchy (Details 1) - Life Insurance Policies [Member] - USD ($)		6 Months Ended		12 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Summary of inputs utilized in estimating the fair value
Weighted-average age of insured, years *	[1]	81 years 6 months		81 years 7 months 6 days
Weighted-average life expectancy, months *	[1]	82 years 7 months 6 days		83 years 2 months 12 days
Average face amount per policy		$ 1,924,000		$ 1,973,000
Discount rate		10.81%	11.05%	10.96%
[1]	Weighted average by face amount of policy benefits

Fair Value Definition and Hie45

Fair Value Definition and Hierarchy (Details 2) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Minus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	$ 78,665,000	$ 69,253,000
Minus 4 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	39,075,000	34,601,000
Plus 4 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	(38,334,000)	(33,846,000)
Plus 8 months [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	(75,932,000)	(67,028,000)
Minus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	60,606,488	53,764,000
Minus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	29,002,000	25,728,000
Plus 1% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	(26,678,000)	(23,668,000)
Plus 2% [Member]
Fair value sensitivity analysis on the investment in life insurance policies
Investment in life insurance policies	$ (51,277,000)	$ (45,491,000)

Fair Value Definition and Hie46

Fair Value Definition and Hierarchy(Details 3)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Class of Warrant or Right [Line Items]
Warrants issued	18,500
September 2012 [Member]
Class of Warrant or Right [Line Items]
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]
Class of Warrant or Right [Line Items]
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)	6 Months Ended
	Jun. 30, 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	$ 414,666,000
Debt instruments face value	$ 424,793,000
Weighted average market interest rate	6.60%
Secured loan outstanding balance	$ 2,060,000
Loan loss reserve	$ 1,478,000
Commercial paper rate, description	12-Month LIBOR
Changes in Fair Value, gain (loss)	$ 870,000

Credit Facility - Autobahn Fu48

Credit Facility - Autobahn Funding Company LLC (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Credit Facility - Autobahn Funding Company LLC (Textual)
Senior credit facility	$ 105,000,000
Expiry date of senior credit facility	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 net income under agreement	29,590,000
Consolidated tangible net worth	$ 225,661,000
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	Jun. 30, 2017	Dec. 31, 2016
Credit Facility - LNV Corporation (Textual)
Senior credit facility	$ 172,300,000
Maturity date	Sep. 14, 2026
Interest rate description	Interest will accrue on amounts borrowed under the Loan 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. The effective rate at June 30, 2017 was 7.59%. Interest payments are made on a quarterly basis.
Outstanding amount of credit facility		$ 155,625,000	$ 162,725,000
Reserve account		$ 27,523,000

Series I Secured Notes (Details

Series I Secured Notes (Details) - Series I Secured Notes [Member]	Jun. 30, 2017USD ($)
Contractual Maturities
Six months ending December 31, 2017	$ 749,000
2,018	2,376,000
2,019	1,024,000
2,020	1,725,000
2,021	941,000
Total	6,815,000
Amortization of Deferred Financing Costs
Six months ending December 31, 2017	3,000
2,018	25,000
2,019	17,000
2,020	41,000
2,021	48,000
Total	$ 134,000

Series I Secured Notes (Detai51

Series I Secured Notes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Series I Secured Notes (Textual)
Weighted average interest rate	6.60%		6.60%
Series I Secured Notes [Member]
Series I Secured Notes (Textual)
Minimum maturity period of secured notes			6 months
Maximum maturity period of secured notes			7 years
Weighted average interest rate	8.72%		8.72%		8.68%
Principal amount outstanding under Series I Secured notes	$ 6,815,000		$ 6,815,000		$ 16,614,000
Amortization of deferred financing and issuance costs	$ 29,000	$ 82,000	74,000	$ 193,000
Future expected amortization of deferred financing costs			$ 134,000
Series I Secured Notes [Member] | Maximum [Member]
Series I Secured Notes (Textual)
Effective rate of interest	9.55%		9.55%
Series I Secured Notes [Member] | Minimum [Member]
Series I Secured Notes (Textual)
Effective rate of interest	5.65%		5.65%

L Bonds (Details)

L Bonds (Details) - Renewable Secured Debentures [Member]	Jun. 30, 2017USD ($)
Contractual Maturities
Six months ending December 31, 2017	$ 47,068,000
2,018	108,772,000
2,019	116,767,000
2,020	49,062,000
2,021	28,753,000
Thereafter	57,428,000
Total	407,850,000
Amortization of Deferred Financing Costs
Six months ending December 31, 2017	353,000
2,018	2,181,000
2,019	4,128,000
2,020	2,147,000
2,021	1,411,000
Thereafter	3,319,000
Total	$ 13,539,000

L Bonds (Details Textual)

L Bonds (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 01, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jan. 31, 2015
L Bonds (Textual)
Debentures offer for sale		$ 424,793,000		$ 424,793,000
Weighted average market interest rate		6.60%		6.60%
For the 2 year [Member]
L Bonds (Textual)
Interest rates changed	5.50%
For the 3 year [Member]
L Bonds (Textual)
Interest rates changed	6.25%
For the 5 year [Member]
L Bonds (Textual)
Interest rates changed	7.50%
For the 7 year [Member]
L Bonds (Textual)
Interest rates changed	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		7.30%		7.30%		7.23%
Amount outstanding under L bonds		$ 407,850,000		$ 407,850,000		$ 387,067,000
Amortization of deferred issuance costs		$ 927,000	$ 1,721,000	2,856,000	$ 3,289,000
Future expected amortization of deferred financing costs				$ 13,539,000
Renewable Secured Debentures [Member] | Maximum [Member]
L Bonds (Textual)
Amortization period of deferred financing cost	1 year
Renewable Secured Debentures [Member] | Minimum [Member]
L Bonds (Textual)
Amortization period of deferred financing cost	6 months

Series A Convertible Preferre54

Series A Convertible Preferred Stock (Details) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended	15 Months Ended
	Sep. 30, 2014	Jun. 30, 2017		Dec. 31, 2016	Sep. 30, 2012
Series A Convertible Preferred Stock (Textual)
Series A preferred stock value issued in conversion of dividends		$ (3,898,857)	[1]	$ (3,537,288)
Series A preferred stock outstanding		99,127		59,183
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 a price of $10.00 per share.
Series A preferred stock shares issued in conversion of dividends		521,000
Series A preferred stock value issued in conversion of dividends		$ 3,647,000
Convertible preferred stock, shares issued upon conversion		696,000
Conversion of stock, shares converted into common stock		522,000
Series A preferred stock outstanding		2,672,000
Series A preferred stock issuance costs		$ 2,838,000
Aggregate shares of common stock, Warrants		431,954
Fair value of warrants		$ 428,000
Class of warrant, expired		$ 413,000
Weighted average remaining life of warrants outstanding		1 year 11 months 8 days		6 months 21 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		439,000
[1]	Preferred stock dividends were paid out the common stock's additional paid-in-capital to a point when the latter was exhausted in the second quarter of 2017. After that the dividend expense was charged against the carrying values of the respective series of the Company's preferred stock. This contributed to the fact that the Company's preferred stock book balances are different than the liquidation preference of the respective preferred stock.

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2015Tradingdays$ / sharesshares	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)
Redeemable Preferred Stock (Textual)
Proceeds from Redeemable Preferred Stock | $		$ (34,301,747)	$ (845,361)	$ (5,722,437)	$ (1,617,914)
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		99,127		99,127
Proceeds from Redeemable Preferred Stock | $				$ 99,127,000
Redeemable Preferred Stock for sale | $				$ 7,019,000

Series 2 Redeemable Preferred56

Series 2 Redeemable Preferred Stock (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 14, 2017Tradingdays$ / sharesshares	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)
Series 2 Redeemable Preferred Stock (Textual)
Proceeds from Redeemable Preferred Stock | $		$ (34,301,747)	$ (845,361)	$ (5,722,437)	$ (1,617,914)
Series 2 Redeemable Preferred Stock [Member]
Series 2 Redeemable Preferred Stock (Textual)
Company offering shares of convertible Redeemable Preferred Stock | shares	150,000
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	$ 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).
Redeemable Preferred Stock, shares issued | shares		22,536		22,536
Proceeds from Redeemable Preferred Stock | $				$ 22,536,000
Redeemable Preferred Stock for sale | $				$ 1,078,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Current:
Federal	$ (27,000)	$ (23,000)
State	(7,000)	(6,000)
Total current tax expense (benefit)	(34,000)	(29,000)			$ 0
Deferred:
Federal	(2,798,000)	1,397,000	(2,818,000)	2,203,000
State	(885,000)	454,000	(900,000)	704,000
Total deferred tax expense (benefit)	(3,717,174)	1,851,018	(3,717,674)	2,906,747
Total income tax expense (benefit)	$ (3,717,000)	$ 1,822,000	$ (3,718,000)	$ 2,907,000

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Taxes (Textual)
Current income tax liability	$ (34,000)	$ (29,000)			$ 0
Valuation allowance	$ 2,164,000		$ 2,164,000		$ 2,164,000

Common Stock (Details)

Common Stock (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Common Stock (Textual)
Net proceeds		$ 4	$ 166,125	$ (1,603,556)	$ 212,670
GWG Holdings, Inc. [Member]
Common Stock (Textual)
Restricted common stock issued	800,000
Common stock, par value	$ 12.50
Net proceeds	$ 8,600,000

Stock Incentive Plan (Details)

Stock Incentive Plan (Details) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Stock Option [Member]
Outstanding stock options:
Beginning Balance	1,582,399	1,053,615
Granted during the year	233,400	630,850
Vested during the year
Exercised during the year	(42,000)
Forfeited during the year	(241,534)	(102,066)
Ending Balance	1,532,265	1,582,399
Vested [Member]
Outstanding stock options:
Beginning Balance	738,065	483,703
Granted during the year	20,100	22,500
Vested during the year	165,783	251,788
Exercised during the year	(42,000)
Forfeited during the year	(142,119)	(19,926)
Ending Balance	739,829	738,065
Un-vested [Member]
Outstanding stock options:
Beginning Balance	844,334	569,912
Granted during the year	213,300	608,350
Vested during the year	(165,783)	(251,788)
Exercised during the year
Forfeited during the year	(99,415)	(82,140)
Ending Balance	792,436	844,334

Stock Incentive Plan (Details 1

Stock Incentive Plan (Details 1) - Stock Appreciation Rights (SARs) [Member] - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Outstanding Stock Appreciation Rights:
Beginning Balance	239,735
Granted during the year	40,737	239,735
Vested during the year
Forfeited during the year
Ending Balance	280,472	239,735
Vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance	106,608
Granted during the year	4,063	106,608
Vested during the year	3,360
Forfeited during the year
Ending Balance	114,031	106,608
Un-vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance	133,127
Granted during the year	36,674	133,127
Vested during the year	(3,360)
Forfeited during the year
Ending Balance	166,441	133,127

Stock Incentive Plan (Details T

Stock Incentive Plan (Details Textual)	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)$ / shares$ / pureshares	Dec. 31, 2016shares
Stock Incentive Plan (Textual)
Compensation expense related to unvested options not yet recognized | $	$ 541,000
Compensation expense related to unvested options, period of recognition	3 years
Compensation expense in 2017 | $	$ 89,000
Compensation expense in 2018 | $	217,000
Compensation expense in 2019 | $	167,000
Compensation expense in 2020 | $	$ 68,000
Options vesting period	3 years
Compensation expense | $	$ 312,000
Amount of recorded for the SARs liability | $	$ 316,000
Common Stock [Member]
Stock Incentive Plan (Textual)
Common stock to employees, officers, and directors	1,532,000
Number of options vested	740,000
Stock Options [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Exercise price | $ / shares	$ 10.38
Stock Options [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	10.76
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	3,000,000
Expected volatility rate	20.00%
Stock based compensation, method used, description	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	679,000
Exercised during the year	70,000
Stock Appreciation Rights (SARs) [Member]
Stock Incentive Plan (Textual)
Common stock to employees, officers, and directors	280,472
Number of options vested
Forfeited during the year
Strike price	10.58
Stock Appreciation Rights (SARs) [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Strike price	10.38
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	114,031

Commitments (Details)

Commitments (Details)	Jun. 30, 2017USD ($)
Summary of minimum lease payments under amendment lease
Six months ending December 31, 2017	$ 90,000
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	$ 1,748,000

Commitments (Details Textual)

Commitments (Details Textual)	Sep. 01, 2015ft²	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)
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 2025.
Office space in square feet | ft²	17,687
Lease term date	Dec. 31, 2025
Rent expenses | $		$ 110,000	$ 123,000	$ 223,000	$ 232,000

Guarantee of L Bonds (Details)

Guarantee of L Bonds (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
A S S E T S
Cash and cash equivalents	$ 52,293,472	$ 49,933,336	$ 78,486,982	$ 17,379,350	$ 10,998,625	$ 34,425,105
Restricted cash	46,159,631		37,826,596
Investment in life insurance policies, at fair value	577,049,552		511,192,354
Secured MCA advances	3,525,381		5,703,147
Life insurance policy benefits receivable	6,970,000		5,345,000
Deferred taxes, net	1,620,303
Other assets	3,875,810		4,688,103
Investment in subsidiaries
TOTAL ASSETS	691,494,149		643,242,182
LIABILITIES
Senior credit facilities	149,008,826		156,064,818
Series I Secured Notes	6,680,961		16,404,836
L Bonds	400,832,308		381,312,587
Accounts payable	4,160,097		2,226,712
Interest and dividends payable	14,387,044		16,160,599
Other accrued expenses	2,535,674		1,676,761
Deferred taxes, net			2,097,371
TOTAL LIABILITIES	577,604,910		575,943,684
STOCKHOLDERS' EQUITY
Member's capital
Convertible preferred stock	19,732,262		19,701,133
Redeemable preferred stock and Series 2 redeemable preferred stock	97,728,821		59,025,164
Common stock	5,784		5,980
Additional paid-in capital			7,383,515
Accumulated deficit	(24,556,647)		(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	113,889,239		67,298,498			16,145,414
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	691,494,149		643,242,182
Parent [Member]
A S S E T S
Cash and cash equivalents	49,632,850	46,110,677	28,481,047	10,051,621	6,274,035	32,292,162
Restricted cash
Investment in life insurance policies, at fair value
Secured MCA advances
Life insurance policy benefits receivable
Deferred taxes, net	1,620,303
Other assets	3,030,391		3,854,233
Investment in subsidiaries	473,239,085		429,971,148
TOTAL ASSETS	527,522,629		462,306,428
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds	400,832,308		381,312,587
Accounts payable	1,166,827		853,470
Interest and dividends payable	10,312,340		9,882,133
Other accrued expenses	1,321,915		862,369
Deferred taxes, net			2,097,371
TOTAL LIABILITIES	413,633,390		395,007,930
STOCKHOLDERS' EQUITY
Member's capital
Convertible preferred stock	19,732,262		19,701,133
Redeemable preferred stock and Series 2 redeemable preferred stock	118,707,840		59,025,164
Common stock	5,784		5,980
Additional paid-in capital			7,383,515
Accumulated deficit	(24,556,647)		(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	113,889,239		67,298,498
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	527,522,629		462,306,428
Guarantor Subsidiary [Member]
A S S E T S
Cash and cash equivalents	1,451,260	2,851,438	49,360,952	6,822,484	4,340,365	1,982,722
Restricted cash	4,454,226		2,117,649
Investment in life insurance policies, at fair value	41,720,141		41,277,896
Secured MCA advances
Life insurance policy benefits receivable
Deferred taxes, net
Other assets	1,435,297		2,056,822
Investment in subsidiaries	429,798,593		352,337,037
TOTAL ASSETS	478,859,517		447,150,356
LIABILITIES
Senior credit facilities	(1,076,118)
Series I Secured Notes	6,680,961		16,404,836
L Bonds
Accounts payable	1,377,121		731,697
Interest and dividends payable	1,087,782		3,743,277
Other accrued expenses	990,255		544,032
Deferred taxes, net
TOTAL LIABILITIES	9,060,001		21,423,842
STOCKHOLDERS' EQUITY
Member's capital	469,799,516		425,726,514
Convertible preferred stock
Redeemable preferred stock and Series 2 redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	469,799,516		425,726,514
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	478,859,517		447,150,356
Non-Guarantor Subsidiaries [Member]
A S S E T S
Cash and cash equivalents	1,209,362	971,221	644,983	505,245	384,225	150,221
Restricted cash	41,705,405		35,708,947
Investment in life insurance policies, at fair value	535,329,411		469,914,458
Secured MCA advances	3,525,381		5,703,147
Life insurance policy benefits receivable	6,970,000		5,345,000
Deferred taxes, net
Other assets	352,461		810,640
Investment in subsidiaries
TOTAL ASSETS	589,092,020		518,127,175
LIABILITIES
Senior credit facilities	150,084,944		156,064,818
Series I Secured Notes
L Bonds
Accounts payable	1,616,149		641,545
Interest and dividends payable	2,995,669		2,535,189
Other accrued expenses	1,157,096		2,303,952
Deferred taxes, net
TOTAL LIABILITIES	155,853,858		161,545,504
STOCKHOLDERS' EQUITY
Member's capital	433,238,162		356,581,671
Convertible preferred stock
Redeemable preferred stock and Series 2 redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	433,238,162		356,581,671
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	589,092,020		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
Deferred taxes, net
Other assets	(942,339)		(2,033,592)
Investment in subsidiaries	(903,037,678)		(782,308,185)
TOTAL ASSETS	(903,980,017)		(784,341,777)
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds
Accounts payable
Interest and dividends payable	(8,747)
Other accrued expenses	(933,592)		(2,033,592)
Deferred taxes, net
TOTAL LIABILITIES	(942,339)		(2,033,592)
STOCKHOLDERS' EQUITY
Member's capital	(903,037,678)		(782,308,185)
Convertible preferred stock
Redeemable preferred stock and Series 2 redeemable preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	(903,037,678)		(782,308,185)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ (903,980,017)		$ (784,341,777)

Guarantee of L Bonds (Details 1

Guarantee of L Bonds (Details 1) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
REVENUE
Policy servicing income
Gain on life insurance policies, net	11,296,266	20,383,347	30,696,086	38,097,059
MCA income	133,583	223,255	380,159	368,216
Interest and other income	237,737	170,880	679,686	216,100
TOTAL REVENUE	11,667,586	20,777,482	31,755,931	38,681,375
EXPENSES
Policy servicing fees
Interest expense	12,246,025	9,764,657	25,490,241	18,913,811
Employee compensation and benefits	3,741,299	3,071,507	6,904,360	5,537,705
Legal and professional fees	1,330,589	1,304,353	2,276,937	2,510,481
Provision for MCA advances	878,000	300,000	878,000	400,000
Other expenses	2,883,098	2,032,685	5,663,420	4,344,845
TOTAL EXPENSES	21,079,011	16,473,202	41,212,958	31,706,842
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(9,411,425)	4,304,281	(9,457,027)	6,974,533
EQUITY IN INCOME OF SUBSIDIARIES
INCOME (LOSS) BEFORE INCOME TAXES	(9,411,425)	4,304,280	(9,457,027)	6,974,533
INCOME TAX EXPENSE	(3,717,174)	1,822,030	(3,717,674)	2,906,747
NET INCOME (LOSS)	(5,694,251)	2,482,250	(5,739,353)	4,067,786	$ 391,909
Preferred stock dividends	2,031,097	600,924	3,898,857	1,112,155
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(7,725,348)	1,881,326	(9,638,210)	2,955,631
Parent [Member]
REVENUE
Policy servicing income
Gain on life insurance policies, net
MCA income
Interest and other income	69,221	71,222	154,228	106,019
TOTAL REVENUE	69,221	71,222	154,228	106,019
EXPENSES
Policy servicing fees
Interest expense	8,325,874	7,530,444	17,587,908	14,618,037
Employee compensation and benefits	2,109,562	1,638,893	4,038,357	3,175,323
Legal and professional fees	284,756	783,596	777,571	1,378,335
Provision for MCA advances
Other expenses	1,885,146	1,519,349	3,548,149	2,777,326
TOTAL EXPENSES	12,605,338	11,472,282	25,951,985	21,949,021
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(12,536,117)	(11,401,060)	(25,797,757)	(21,843,002)
EQUITY IN INCOME OF SUBSIDIARIES	3,124,692	15,705,341	16,340,730	28,817,535
INCOME (LOSS) BEFORE INCOME TAXES	(9,411,425)	4,304,281	(9,457,027)	6,974,533
INCOME TAX EXPENSE	(3,717,174)	1,822,030	(3,717,674)	2,906,747
NET INCOME (LOSS)	(5,694,251)	2,482,250	(5,739,353)	4,067,786
Preferred stock dividends	2,031,097	600,924	(3,898,857)	(1,112,155)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(7,725,348)	1,881,326	(9,638,210)	2,955,631
Guarantor Subsidiary [Member]
REVENUE
Policy servicing income	133,250		186,275	13,417
Gain on life insurance policies, net	201,685		1,701,012
MCA income
Interest and other income	30,134	706	49,010	1,012
TOTAL REVENUE	365,069	706	1,936,297	14,429
EXPENSES
Policy servicing fees
Interest expense	391,061	644,735	677,415	1,301,971
Employee compensation and benefits	1,529,188	1,283,968	2,750,770	2,113,049
Legal and professional fees	179,461	476,505	440,549	1,011,155
Provision for MCA advances
Other expenses	650,320	425,354	1,533,051	1,394,028
TOTAL EXPENSES	2,750,030	2,830,562	5,401,785	5,820,203
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(2,384,961)	(2,829,856)	(3,465,488)	(5,805,774)
EQUITY IN INCOME OF SUBSIDIARIES	7,241,779	18,835,036	21,305,986	35,136,402
INCOME (LOSS) BEFORE INCOME TAXES	4,856,818	16,005,180	17,840,498	29,330,628
INCOME TAX EXPENSE
NET INCOME (LOSS)	4,856,818	16,005,180	17,840,498	29,330,628
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	4,856,818	16,005,180	17,840,498	29,330,628
Non-Guarantor Subsidiaries [Member]
REVENUE
Policy servicing income
Gain on life insurance policies, net	11,094,581	20,383,347	28,995,074	38,097,059
MCA income	133,583	223,255	380,159	368,216
Interest and other income	164,558	157,927	543,643	198,946
TOTAL REVENUE	11,392,722	20,764,529	29,918,876	38,664,221
EXPENSES
Policy servicing fees	133,250		186,275	13,417
Interest expense	3,555,266	1,648,452	7,292,113	3,083,680
Employee compensation and benefits	102,549	148,646	115,232	249,333
Legal and professional fees	866,372	44,252	1,058,817	120,991
Provision for MCA advances	878,000		878,000
Other expenses	347,632	387,982	582,221	573,491
TOTAL EXPENSES	5,883,069	2,229,332	10,112,658	4,040,912
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	5,509,653	18,535,197	19,806,218	34,623,309
EQUITY IN INCOME OF SUBSIDIARIES
INCOME (LOSS) BEFORE INCOME TAXES	5,509,653	18,535,197	19,806,218	34,623,309
INCOME TAX EXPENSE
NET INCOME (LOSS)	5,509,653	18,535,197	19,806,218	34,623,309
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	5,509,653	18,535,197	19,806,218	34,623,309
Eliminations [Member]
REVENUE
Policy servicing income	(133,250)		(186,275)	(13,417)
Gain on life insurance policies, net
MCA income
Interest and other income	(26,176)	(58,975)	(67,195)	(89,877)
TOTAL REVENUE	(159,426)	(58,975)	(253,470)	(103,294)
EXPENSES
Policy servicing fees	(133,250)		(186,275)	(13,417)
Interest expense	(26,176)	(58,975)	(67,195)	(89,877)
Employee compensation and benefits
Legal and professional fees
Provision for MCA advances
Other expenses
TOTAL EXPENSES	(159,426)	(58,975)	(253,470)	(103,294)
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
EQUITY IN INCOME OF SUBSIDIARIES	(10,366,471)	(34,540,377)	(37,646,716)	(63,953,937)
INCOME (LOSS) BEFORE INCOME TAXES	(10,366,471)	(34,540,377)	(37,646,716)	(63,953,937)
INCOME TAX EXPENSE
NET INCOME (LOSS)	(10,366,471)	(34,540,377)	(37,646,716)	(63,953,937)
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (10,366,471)	$ (34,540,377)	$ (37,646,716)	$ (63,953,937)

Guarantee of L Bonds (Details 2

Guarantee of L Bonds (Details 2) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (5,694,251)	$ 2,482,250	$ (5,739,353)	$ 4,067,786	$ 391,909
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries
Change in fair value of life insurance policies	(15,235,502)	(21,241,376)	(29,119,335)	(32,772,929)
Amortization of deferred financing and issuance costs	1,497,948	2,527,974	4,164,151	3,312,162
Deferred income taxes	(3,717,174)	1,851,018	(3,717,674)	2,906,747
Preferred stock dividends payable	363,959	166,472	700,748	330,049
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	2,005,000	9,083,817	(1,625,000)	(6,829,022)
Other assets	(557,988)	(1,210,892)	868,330	(1,037,466)
Increase (decrease) in operating liabilities:
Due to related party	(1,970)	(1,814,173)	(9,785)	(101,781)
Accounts payable and other accrued expenses	1,038,855	(775,213)	2,256,087	1,192,756
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(20,301,123)	(8,930,123)	(32,221,831)	(28,931,698)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(19,432,338)	(24,373,714)	(42,121,671)	(48,700,036)
Carrying value of matured life insurance policies	3,014,834	1,691,764	5,383,808	6,302,243
Investment in Secured MCA advances	(39,671)	(1,293,829)	(39,671)	(5,647,414)
Proceeds from Secured MCA advances	653,315	907,649	1,423,702	1,025,792
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(15,803,860)	(23,068,130)	(35,353,832)	(47,019,415)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities	(3,845,037)	(3,000,000)	(7,099,537)	17,000,000
Payments for issuance of senior debt	(1,076,118)		(1,190,412)
Payments for redemption of Series I Secured Notes	(4,348,372)	(485,350)	(9,798,261)	(5,722,743)
Proceeds from issuance of L Bonds	31,875,811	36,757,771	56,744,470	71,126,660
Payments for issuance and redemption of L Bonds	(15,025,566)	(11,753,782)	(39,197,163)	(22,663,475)
Payments to restricted cash	1,931,958	8,667,826	(8,333,035)	(8,818,894)
Issuance of member capital
Payments for issuance and redemption of common stock	4	166,125	(1,603,556)	212,670
Proceeds from issuance of preferred stock	34,301,747	9,472,673	61,480,941	10,501,209
Payments for issuance and redemption of preferred stock	(34,301,747)	(845,361)	(5,722,437)	(1,617,914)
Payment of preferred stock dividends	(2,031,097)	(600,924)	(3,898,857)	(1,112,155)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	38,465,119	38,378,978	41,382,153	58,905,358
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,360,136	6,380,725	(26,193,510)	(17,045,755)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	49,933,336	10,998,625	78,486,982	34,425,105	34,425,105
END OF PERIOD	52,293,472	17,379,350	52,293,472	17,379,350	78,486,982
Parent [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(5,694,251)	2,482,250	(5,739,353)	4,067,786
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	(3,124,692)	(15,705,341)	(16,340,730)	(28,817,535)
Change in fair value of life insurance policies
Amortization of deferred financing and issuance costs	926,816	2,261,032	2,855,809	3,909,923
Deferred income taxes	(3,717,174)	1,851,018	(3,717,674)	2,906,747
Preferred stock dividends payable	363,959	166,472	700,748	330,049
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	(32,646,205)	(21,796,633)	(27,138,260)	(60,457,838)
Increase (decrease) in operating liabilities:
Due to related party	398,030	(71,975)	1,089,895	(2,802,976)
Accounts payable and other accrued expenses	1,213,002	1,458,476	1,637,970	2,240,523
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(42,280,515)	(29,354,701)	(46,651,595)	(78,623,321)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities
Payments for issuance of senior debt
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds	31,875,811	36,757,771	56,744,470	71,126,660
Payments for issuance and redemption of L Bonds	(15,025,566)	(11,753,782)	(39,197,163)	(22,663,475)
Payments to restricted cash
Issuance of member capital
Payments for issuance and redemption of common stock	4	166,125	(1,603,556)	212,670
Proceeds from issuance of preferred stock	34,301,747	9,401,118	61,480,941	10,429,654
Payments for issuance and redemption of preferred stock	(3,318,211)	(838,021)	(5,722,437)	(1,610,574)
Payment of preferred stock dividends	(2,031,097)	(600,924)	(3,898,857)	(1,112,155)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	45,802,688	33,132,287	67,803,398	56,382,780
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,522,173	3,777,586	21,151,803	(22,240,541)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	46,110,677	6,274,035	28,481,047	32,292,162	32,292,162
END OF PERIOD	49,632,850	10,051,621	49,632,850	10,051,621	28,481,047
Guarantor Subsidiary [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	4,856,818	16,005,180	17,840,498	29,330,628
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	(7,241,779)	(18,835,036)	(21,305,986)	(35,136,402)
Change in fair value of life insurance policies	(134,399)		(1,193,821)
Amortization of deferred financing and issuance costs	28,964	(282,257)	74,384	(1,446,463)
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	600,000
Other assets	(23,493,280)	(12,903,506)	(55,534,365)	(37,895,574)
Increase (decrease) in operating liabilities:
Due to related party		17,802	320	1,195
Accounts payable and other accrued expenses	(1,405,114)	130,596	(1,563,846)	717,298
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(26,788,790)	(15,867,221)	(61,682,816)	(44,429,318)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies	256,152		751,576
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES	256,152		751,576
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities
Payments for issuance of senior debt	(1,076,118)		(1,076,118)
Payments for redemption of Series I Secured Notes	(4,348,372)	(485,350)	(9,798,261)	(5,722,743)
Proceeds from issuance of L Bonds
Payments for issuance and redemption of L Bonds
Payments to restricted cash	(893,893)	(116,672)	(2,336,577)	(2,822,051)
Issuance of member capital	31,450,843	18,951,362	26,232,504	57,813,874
Payments for issuance and redemption of common stock
Proceeds from issuance of preferred stock
Payments for issuance and redemption of preferred stock
Payment of preferred stock dividends
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	25,132,460	18,349,340	13,021,548	49,269,080
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,400,178)	2,482,119	(47,909,692)	4,839,762
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	2,851,438	4,340,365	49,360,952	1,982,722	1,982,722
END OF PERIOD	1,451,260	6,822,484	1,451,260	6,822,484	49,360,952
Non-Guarantor Subsidiaries [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	5,509,653	18,535,197	19,806,218	34,623,309
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries
Change in fair value of life insurance policies	(15,101,103)	(21,241,376)	(27,925,514)	(32,772,929)
Amortization of deferred financing and issuance costs	542,168	549,199	1,233,958	848,702
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	1,405,000	9,083,817	(1,625,000)	(6,829,022)
Other assets	(297,040)		458,179
Increase (decrease) in operating liabilities:
Due to related party	(400,000)	(1,760,000)	(1,100,000)	2,700,000
Accounts payable and other accrued expenses	1,230,967	(2,364,285)	2,181,963	(1,765,065)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(7,110,355)	2,802,552	(6,970,196)	(3,195,005)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(19,432,338)	(24,373,714)	(42,121,671)	(48,700,036)
Carrying value of matured life insurance policies	2,758,682	1,691,764	4,632,232	6,302,243
Investment in Secured MCA advances	(39,671)	(1,293,829)	(39,671)	(5,647,414)
Proceeds from Secured MCA advances	653,315	907,649	1,423,702	1,025,792
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(16,060,012)	(23,068,130)	(36,105,408)	(47,019,415)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities	(3,845,037)	(3,000,000)	(7,099,537)	17,000,000
Payments for issuance of senior debt			(114,294)
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payments for issuance and redemption of L Bonds
Payments to restricted cash	2,825,851	8,784,498	(5,996,458)	(5,996,843)
Issuance of member capital	24,427,694	14,537,885	56,850,272	39,502,072
Payments for issuance and redemption of common stock
Proceeds from issuance of preferred stock		71,555		71,555
Payments for issuance and redemption of preferred stock		(7,340)		(7,340)
Payment of preferred stock dividends
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	23,408,508	20,386,598	43,639,983	50,569,444
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	238,141	121,020	564,379	355,024
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	971,221	384,225	644,983	150,221	150,221
END OF PERIOD	1,209,362	505,245	1,209,362	505,245	644,983
Eliminations [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(10,366,471)	(34,540,377)	(37,646,716)	(63,953,937)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	10,366,471	34,540,377	37,646,716	63,953,937
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	55,878,537	33,489,247	83,082,776	97,315,946
Increase (decrease) in operating liabilities:
Due to related party
Accounts payable and other accrued expenses
NET CASH FLOWS USED IN OPERATING ACTIVITIES	55,878,537	33,489,247	83,082,776	97,315,946
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities
Payments for issuance of senior debt
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payments for issuance and redemption of L Bonds
Payments to restricted cash
Issuance of member capital	(55,878,537)	(33,489,247)	(83,082,776)	(97,315,946)
Payments for issuance and redemption of common stock
Proceeds from issuance of preferred stock
Payments for issuance and redemption of preferred stock
Payment of preferred stock dividends
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(55,878,537)	(33,489,247)	(83,082,776)	(97,315,946)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
END OF PERIOD

Concentrations (Details)

Concentrations (Details)	Jun. 30, 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	14.13%	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	12.69%	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	10.86%	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	10.31%		[1]
[1]	percentage does not exceed 10% of the total face value.

Concentrations (Details 1)

Concentrations (Details 1)	Jun. 30, 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	19.29%	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	20.30%	19.42%

Concentrations (Details Textual

Concentrations (Details Textual)	6 Months Ended
	Jun. 30, 2017
Concentrations (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 ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Subsequent Events (Textual)
Additional principal amount of L bonds	$ 424,793,000		$ 424,793,000
Proceeds from issuance of preferred stock	(34,301,747)	$ (845,361)	(5,722,437)	$ (1,617,914)
RPS 2 [Member]
Subsequent Events (Textual)
Proceeds from issuance of preferred stock			12,762,000
L Bonds [Member]
Subsequent Events (Textual)
Additional principal amount of L bonds	$ 15,789,000		$ 15,789,000