GWG (GWGHQ) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 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	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,813,555

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
A S S E T S
Cash and cash equivalents	$ 115,345,481	$ 78,486,982
Restricted cash	5,819,230	37,826,596
Investment in life insurance policies, at fair value	620,097,938	511,192,354
Secured MCA advances	2,623,657	5,703,147
Life insurance policy benefits receivable	14,597,000	5,345,000
Deferred taxes, net	4,384,546
Other assets	3,824,200	4,688,103
TOTAL ASSETS	766,692,052	643,242,182
LIABILITIES
Senior Credit Facilities	201,978,580	156,064,818
Series I Secured Notes		16,404,836
L Bonds	413,060,517	381,312,587
Accounts payable	3,715,236	2,226,712
Interest payable	13,521,174	16,160,599
Other accrued expenses	2,792,521	1,676,761
Deferred taxes, net		2,097,371
TOTAL LIABILITIES	635,068,028	575,943,684
STOCKHOLDERS' EQUITY
CONVERTIBLE PREFERRED STOCK (par value $0.001; shares authorized 40,000,000; shares outstanding 2,694,725 and 2,640,521; liquidation preference of $20,210,000 and $19,804,000 as of September 30, 2017 and December 31, 2016, respectively)	19,408,980	19,701,133
REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 100,000; shares outstanding 99,080 and 59,183; liquidation preference of $99,080,000 and $59,183,000 as of September 30, 2017 and December 31, 2016, respectively)	96,106,633	59,025,164
SERIES 2 REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 150,000; shares outstanding 48,316 and 0; liquidation preference of $48,316,000 and $0 as of September 30, 2017 and December 31, 2016, respectively)	44,721,747
COMMON STOCK (par value $0.001: shares authorized 210,000,000; shares issued and outstanding 5,813,555 and 5,980,190 as of September 30, 2017 and December 31, 2016, respectively)	5,814	5,980
Additional paid-in capital		7,383,515
Accumulated deficit	(28,619,150)	(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	131,624,024	67,298,498
TOTAL LIABILITIES & EQUITY	$ 766,692,052	$ 643,242,182

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 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	2,694,725	2,640,521
Convertible preferred stock, liquidation preference	$ 20,210,000	$ 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	99,080	59,183
Redeemable preferred stock, liquidation preference	$ 99,080,000	$ 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	48,316	0
Series 2 Redeemable Preferred, liquidation preference	$ 48,316,000	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	5,813,555	5,980,190
Common stock, shares outstanding	5,813,555	5,980,190

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
REVENUE
Gain on life insurance policies, net	$ 14,421,353	$ 13,509,755	$ 45,117,438	$ 51,606,815
MCA income	100,367	286,225	480,526	654,441
Interest and other income	175,323	124,998	855,009	341,098
TOTAL REVENUE	14,697,043	13,920,978	46,452,973	52,602,354
EXPENSES
Interest expense	13,275,407	10,942,790	38,765,647	29,856,601
Employee compensation and benefits	3,792,096	2,912,463	10,696,455	8,450,168
Legal and professional fees	1,657,090	586,830	3,934,027	3,097,312
Provision for MCA advances	28,000		906,000	400,000
Other expenses	2,771,196	2,863,212	8,434,617	7,208,057
TOTAL EXPENSES	21,523,789	17,305,295	62,736,746	49,012,138
INCOME (LOSS) BEFORE INCOME TAXES	(6,826,746)	(3,384,317)	(16,283,773)	3,590,216
INCOME TAX EXPENSE (BENEFIT)	(2,764,243)	(1,428,130)	(6,481,917)	1,478,617
NET INCOME (LOSS)	(4,062,503)	(1,956,187)	(9,801,856)	2,111,599
Preferred stock dividends	3,548,165	1,041,178	7,447,022	2,153,333
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (7,610,668)	$ (2,997,365)	$ (17,248,878)	$ (41,734)
NET INCOME (LOSS) PER SHARE
Basic	$ (1.31)	$ (0.50)	$ (2.96)	$ (0.01)
Diluted	$ (1.31)	$ (0.50)	$ (2.96)	$ (0.01)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,797,800	5,978,322	5,829,808	5,962,938
Diluted	5,797,800	5,978,322	5,829,808	5,962,938

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (4,062,503)	$ (1,956,187)	$ (9,801,856)	$ 2,111,599
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Change in fair value of life insurance policies	(20,181,732)	(21,073,226)	(49,301,067)	(53,846,155)
Amortization of deferred financing and issuance costs	2,344,541	2,765,743	6,508,692	6,077,905
Deferred income taxes	(2,764,243)	(1,428,130)	(6,481,917)	1,478,617
Preferred stock dividends payable	333,391	333,565	1,034,139	663,614
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(7,627,000)	700,000	(9,252,000)	(6,129,022)
Other assets	102,437	419,836	970,767	(617,630)
Increase (decrease) in operating liabilities:
Due to related party	(3,429)	(80,949)	(13,214)	(182,730)
Accounts payable and other accrued expenses	(415,471)	(3,216,990)	1,840,616	(2,024,234)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(32,274,009)	(23,536,338)	(64,495,840)	(52,468,036)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(25,199,692)	(25,770,326)	(67,321,363)	(74,470,362)
Carrying value of matured life insurance policies	2,333,039	1,078,889	7,716,847	7,381,132
Investment in Secured MCA advances		(1,965,896)	(39,671)	(7,613,310)
Proceeds from Secured MCA advances	826,621	220,911	2,250,323	1,246,703
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(22,040,032)	(26,436,422)	(57,393,864)	(73,455,837)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) Senior Credit Facilities	56,887,491	(10,761,048)	49,787,954	6,238,952
Payments for issuance of senior debt	(3,937,907)		(5,128,319)
Payments for redemption of Series I Secured Notes	(6,815,406)	(541,275)	(16,613,667)	(6,264,018)
Proceeds from issuance of L Bonds	30,271,873	64,350,430	87,016,343	135,477,090
Payments for issuance and redemption of L Bonds	(19,752,717)	(14,373,447)	(58,949,880)	(37,036,922)
Transfer from (payments to) restricted cash	40,340,401	(4,527,232)	32,007,366	(13,346,126)
Issuance (repurchase) of common stock	30	31,515	(1,603,526)	244,185
Proceeds from issuance of preferred stock	25,211,870	20,786,332	86,692,811	31,287,541
Payment for issuance and redemption of preferred stock	(1,291,420)	(2,556,859)	(7,013,857)	(4,174,773)
Payment of preferred stock dividends	(3,548,165)	(1,041,178)	(7,447,022)	(2,153,333)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	117,366,050	51,367,238	158,748,203	110,272,596
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	63,052,009	1,394,478	36,858,499	(15,651,277)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	52,293,472	17,379,350	78,486,982	34,425,105
END OF PERIOD	115,345,481	18,773,828	115,345,481	18,773,828
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	17,478,000	10,808,000	45,101,000	27,207,000
Premiums paid	12,927,000	11,785,000	35,533,000	29,225,000
Stock-based compensation	270,000	162,000	350,000	213,000
Payments for exercised stock options	164,000		264,000
Series I Secured Notes:
Conversion of accrued interest and commissions payable to principal		47,000		234,000
L Bonds:
Conversion of accrued interest and commissions payable to principal	477,000	854,000	1,382,000	1,515,000
Series A Preferred Stock:
Issuance of Series A Preferred Stock in lieu of cash dividends	161,000	170,000	499,000	509,000
Investment in life insurance policies included in accounts payable	$ 966,000	$ 1,603,000	$ 966,000	$ 1,603,000

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			$ 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 loss		$ 391,909				391,909
Issuance of common stock		244,185		$ 36	244,149
Issuance of common stock, shares				36,450
Issuance of Series A Preferred Stock		704,743	$ 704,743
Issuance of Series A Preferred Stock, shares			98,535
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 redeemable preferred stock		54,891,639	$ 59,025,164		(4,133,525)
Issuance of redeemable preferred stock, shares			59,183
Dividends paid		(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 loss		(9,801,856)				(9,801,856)
Issuance of common stock		321,004		$ 34	320,970
Issuance of common stock, shares				33,810
Redemption of common stock		(1,603,560)		$ (200)	(1,603,360)
Redemption of common stock, shares				(200,445)
Issuance of Series A Preferred Stock		498,659	$ 498,659
Issuance of Series A Preferred Stock, shares			71,237
Redemption of Series A Preferred Stock		(126,997)	$ (126,997)
Redemption of Series A Preferred Stock, shares			(17,033)
Issuance of redeemable preferred stock		82,743,968	$ 85,082,425		(2,338,457)
Issuance of redeemable preferred stock, shares			88,822
Redemption of redeemable preferred stock		(608,777)	$ (608,777)
Redemption of redeemable preferred stock, shares			(609)
Dividends paid	[1]	(7,447,022)	$ (3,670,488)		(3,776,534)
Issuance of stock options		350,107	336,241		13,866
Ending balance at Sep. 30, 2017		$ 131,624,024	$ 160,237,360	$ 5,814		$ (28,619,150)
Ending balance, shares at Sep. 30, 2017			2,842,121	5,813,555
[1]	Preferred stock dividends were paid from additional paid-in capital until the latter was exhausted in the second quarter of 2017. Subsequent dividends were charged against the carrying values of the respective series of the Company's preferred stock, resulting in a difference between the Company's preferred stock book balances and liquidation preference of the respective series' of preferred stock.

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 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. was formed to provide cash advances to small businesses. On August 25, 2016, GWG Holdings formed a wholly owned subsidiary, Actüa Life & Annuity Ltd., renamed to Life Epigenetics Inc. (“Life Epigenetics”) in August 2017, 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 September 30, 2017 and December 31, 2016, a total of $0 and $42,000, respectively, of our “other assets” comprised direct costs and deposits that we had advanced for life insurance 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 (upon 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 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. 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 adopted ASU 2016-09 effective January 1, 2017. The impact of the adoption was not material to the financial statements.

Restrictions on Cash

Restrictions on Cash	9 Months Ended
	Sep. 30, 2017
Restrictions on Cash [Abstract]
Restrictions on Cash	(2) Restrictions on Cash Under the terms of our senior credit facility with LNV Corporation (discussed in Note 6), we are required to maintain a collection account that is used to collect policy benefits from pledged policies, pay interest and other charges under the facility, and distribute funds to pay down the facility. The agents for the lenders authorize disbursements from these accounts. At September 30, 2017 and December 31, 2016, there was a balance of $5,819,000, and $37,827,000, respectively, in these restricted cash accounts.

Investment in Life Insurance Po

Investment in Life Insurance Policies	9 Months Ended
	Sep. 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 public reporting companies owning portfolios of life insurance policies, the discount rates observed in the life insurance secondary market, market interest rates, the estimated credit exposure to the insurance companies that issued the life insurance policies and management’s estimate of the operational 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 10.54% was applied to our portfolio as of September 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 September 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 2 $ 2,016,000 $ 2,125,000 11 $ 14,837,000 $ 16,939,000 2018 9 13,222,000 16,564,000 23 30,830,000 42,564,000 2019 57 63,926,000 88,967,000 55 57,556,000 88,858,000 2020 94 88,281,000 148,908,000 93 85,414,000 159,814,000 2021 88 87,710,000 162,525,000 86 73,825,000 158,744,000 2022 91 78,940,000 174,699,000 66 56,909,000 147,222,000 2023 84 63,439,000 168,821,000 64 44,953,000 128,581,000 Thereafter 425 222,564,000 860,018,000 292 146,868,000 618,953,000 Totals 850 $ 620,098,000 $ 1,622,627,000 690 $ 511,192,000 1,361,675,000 We recognized life insurance benefits of $9,747,000 and $5,300,000 during the three months ended September 30, 2017 and 2016, respectively, related to policies with a carrying value of $2,333,000 and $1,078,000, respectively, and as a result recorded realized gains of $7,414,000 and $4,222,000, respectively. We recognized life insurance benefits of $39,657,000 and $34,367,000 during the nine months ended September 30, 2017 and 2016, respectively, related to policies with a carrying value of $7,716,000 and $7,381,000, respectively, and as a result recorded realized gains of $31,941,000 and $26,986,000. Reconciliation of gain on life insurance policies: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Change in estimated probabilistic cash flows $ 12,568,000 $ 12,955,000 $ 40,033,000 $ 34,078,000 Unrealized gain on acquisitions 7,217,000 11,668,000 25,863,000 29,509,000 Premiums and other annual fees (13,174,000 ) (11,784,000 ) (36,124,000 ) (29,225,000 ) Change in discount rates (1) 7,987,000 (378,000 ) 12,130,000 460,000 Change in life expectancy evaluation (2) (5,370,000 ) (2,285,000 ) (13,974,000 ) (3,199,000 ) Face value of matured policies 9,747,000 5,300,000 39,657,000 34,367,000 Fair value of matured policies (4,554,000 ) (1,966,000 ) (22,468,000 ) (14,383,000 ) Gain on life insurance policies, net $ 14,421,000 $ 13,510,000 $ 45,117,000 $ 51,607,000 (1) The discount rate applied to estimate the fair value of the portfolio of life insurance policies we own was 10.54% as of September 30, 2017, compared to 10.96% as of December 31, 2016 and 11.07% as of September 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 Three months ending December 31, 2017 $ 16,915,000 $ 1,587,000 $ 18,502,000 2018 54,931,000 1,587,000 56,518,000 2019 60,916,000 1,587,000 62,503,000 2020 68,728,000 1,587,000 70,315,000 2021 77,522,000 1,587,000 79,109,000 2022 87,424,000 1,587,000 89,011,000 $ 366,436,000 $ 9,522,000 $ 375,958,000 Management anticipates funding the majority of the premium payments estimated above with additional borrowing capacity, created as the premiums and servicing costs of pledged life insurance policies become due, under the amended and restated senior credit facility with LNV Corporation as described in Note 6. Management anticipates funding premiums and servicing costs of non-pledged life insurance policies from proceeds from the receipt of policy benefits from our portfolio of life insurance policies and net proceeds from our offering of L Bonds and RPS 2. 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	9 Months Ended
	Sep. 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 the life insurance secondary market, market interest rates, the estimated credit exposure to the insurance company that issued the life insurance policy and management’s estimate of the operational 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 September 30, as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Beginning balance $ 577,050,000 $ 431,820,000 $ 511,192,000 $ 356,650,000 Purchases 25,199,000 25,770,000 67,321,000 74,470,000 Maturities (initial cost basis) (2,333,000 ) (1,078,000 ) (7,716,000 ) (7,381,000 ) Net change in fair value 20,182,000 21,073,000 49,301,000 53,846,000 Ending balance $ 620,098,000 $ 477,585,000 $ 620,098,000 $ 477,585,000 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 update the independent life expectancy estimates every two years beginning from the date of the amended facility. The following table summarizes the inputs utilized in estimating the fair value of our portfolio of life insurance policies: As of September 30, 2017 As of Weighted-average age of insured, years * 81.7 81.6 Weighted-average life expectancy, months * 82.6 83.2 Average face amount per policy $ 1,909,000 $ 1,973,000 Discount rate 10.54 % 10.96 % (*) Weighted average by face amount of policy benefits Life expectancy estimates and market discount rates for a portfolio of life insurance policies are 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 September 30, 2017 $ 83,536,000 $ 41,411,000 $ (40,893,000 ) $ (81,069,000 ) 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% September 30, 2017 $ 65,263,000 $ 31,222,000 $ (28,708,000 ) $ (55,167,000 ) 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 L Bonds, having an aggregate face value of $424,778,000 as of September 30, 2017, is approximately $434,374,000 based on a weighted-average market interest rate of 6.68%. The carrying value of the senior credit facility 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 pledged against the debt. The overall rate reflects market, and the carrying value of the facility approximates fair value. GWG MCA participated 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 September 30, 2017 one of our secured loans was potentially impaired. Specifically, the secured loan to Nulook Capital LLC had an outstanding balance of $2,001,000 and a loan loss reserve of $1,506,000 at September 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, referred to as an impairment charge. We recorded an impairment charge of $28,000 and $906,000 for the three and nine months ended September 30, 2017, respectively. The following table summarizes outstanding warrants related to the Company’s initial public offering as of September 30, 2017: Month issued Warrants issued Fair value per share Risk free rate Volatility Term September 2014 16,000 $ 1.26 1.85 % 17.03 % 5 years 16,000

Credit Facility - Autobahn Fund

Credit Facility - Autobahn Funding Company LLC	9 Months Ended
	Sep. 30, 2017
Credit Facility - Autobahn Funding Company LLC [Abstract]
Credit Facility - Autobahn Funding Company LLC	(5) Credit Facility – Autobahn Funding Company LLC On September 12, 2017, we terminated our $105 million senior credit facility with Autobahn Funding Company LLC, the Credit and Security Agreement governing the facility as well as the related pledge agreement, pursuant to which our obligations under the facility were secured. We had paid off in full all obligations under the facility on September 14, 2016, and since that date, we have had no amounts outstanding under the facility. The Credit and Security Agreement contained certain financial and non-financial covenants, and we were in compliance with these covenants during the nine months ended September 30, 2017 until the date of termination.

Credit Facility - LNV Corporati

Credit Facility - LNV Corporation	9 Months Ended
	Sep. 30, 2017
Credit Facility - LNV Corporation [Abstract]
Credit Facility - LNV Corporation	(6) Credit Facility – LNV Corporation On September 27, 2017, we entered into an amended and restated senior credit facility with LNV Corporation as lender through our subsidiary GWG DLP Funding IV, LLC. The Amended and Restated Loan Agreement governing the facility makes available a total of up to $300,000,000 in credit with a maturity date of September 27, 2029. Additional advances are available under the Amended and Restated Loan Agreement at the LIBOR rate as defined in the Amended and Restated Loan Agreement. Advances are available as the result of additional borrowing base capacity, created as the premiums and servicing costs of pledged life insurance policies become due. Interest will accrue on amounts borrowed under the Amended and Restated 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) 7.50% per annum. The effective rate at September 30, 2017 was 7.52%. The interest rate effective October 1, 2017 was 9.31%. Interest payments are made on a quarterly basis. As of September 30, 2017, approximately 86.6% of the total face value of our portfolio is pledged to LNV Corporation. The amount outstanding under this facility was $212,513,000 at September 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 Amended and Restated 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 the L Bonds. The difference between the outstanding balance as of September 30, 2017 and the carrying amount relates to unamortized debt issuance costs. The Amended and Restated Loan Agreement does not require DLP IV to maintain a reserve account for future premiums. The Amended and Restated Loan Agreement has certain financial and nonfinancial covenants, and we were in compliance with these covenants at September 30, 2017 and with the covenants in the original Loan Agreement at December 31, 2016.

Series I Secured Notes

Series I Secured Notes	9 Months Ended
	Sep. 30, 2017
Series I Secured Notes [Abstract]
Series I Secured Notes	(7) Series I Secured Notes Series I Secured Notes were legal obligations of GWG Life and were privately offered and sold from August 2009 through June 2011. On September 8, 2017, we redeemed all outstanding Series I Secured Notes for an aggregate of $6,815,000. The Series I Secured Notes were governed by an Intercreditor Agreement, a Third Amended and Restated Note Issuance and Security Agreement dated November 1, 2011, as amended, and a related Pledge Agreement. Upon the redemption of the Series I Secured Notes and the termination of all obligations outstanding thereunder, those agreements were terminated effective as of September 8, 2017.

L Bonds

L Bonds	9 Months Ended
	Sep. 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 September 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 September 30, 2017 and December 31, 2016, the weighted-average interest rate of our L Bonds was 7.35% and 7.23%, respectively. The principal amount of L Bonds outstanding was $424,778,000 and $387,067,000 at September 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 $2,076,000 and $4,931,000 for the three and nine months ended September 30, 2017 and $2,073,000 and $5,362,000 for the three and nine months ended September 30, 2016. Future expected amortization of deferred financing costs as of September 30, 2017 is $14,462,000 in total over the next seven years. Future contractual maturities of L Bonds, and their related unamortized deferred financing costs, at September 30, 2017 are as follows: Years Ending December 31, Contractual Maturities Unamortized Deferred Financing Costs Three months ending December 31, 2017 $ 17,059,000 $ 104,000 2018 108,717,000 1,652,000 2019 133,174,000 4,294,000 2020 63,523,000 2,763,000 2021 28,703,000 1,350,000 Thereafter 73,602,000 4,299,000 $ 424,778,000 $ 14,462,000

Series A Convertible Preferred

Series A Convertible Preferred Stock	9 Months Ended
	Sep. 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 were entitled to cumulative dividends at the rate of 10% per annum, paid quarterly. As of September 30, 2017, we issued an aggregate of 544,000 shares of Series A in satisfaction of $3,808,000 in dividends on the Series A, and an aggregate of 696,000 shares of Series A were converted into 522,000 shares of our common stock. As of September 30, 2017, we had 2,695,000 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 416,000 shares of our common stock at an exercise price of $12.50 per share. The grant date fair value of these warrants was $428,000. As of September 30, 2017, all of these warrants have expired and none of them had been exercised. The terms of the Series A permit us to redeem Series A shares at a price equal to 110% of their liquidation preference ($7.50 per share) at any time. On October 9, 2017 all shares of Series A were redeemed with a redemption payment equal to the sum of: (i) $8.25 per Series A share and (ii) all accrued but unpaid dividends.

Redeemable Preferred Stock

Redeemable Preferred Stock	9 Months Ended
	Sep. 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, if any, then to the outstanding balance of the preferred stock if additional paid-in-capital has been exhausted. 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 RPS 2, 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. On March 31, 2017, we closed the RPS offering to investors having sold 99,127 shares of RPS for an aggregate gross consideration of $99,127,000 and incurred approximately $7,019,000 of related selling costs. 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	9 Months Ended
	Sep. 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, if any, then to the outstanding balance of the preferred stock if additional paid-in-capital has been exhausted. 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 September 30, 2017, we had sold 48,316 shares of RPS 2 for aggregate gross consideration of $48,316,000, and incurred approximately $2,322,000 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	9 Months Ended
	Sep. 30, 2017
Income Taxes [Abstract]
Income Taxes	(12) Income Taxes We had a current income tax liability of $0 as of both September 30, 2017 and December 31, 2016. The components of deferred income tax expense (benefit) for the three and nine months ended September 30, 2017 and 2016, respectfully, consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Deferred: Federal $ (2,095,000 ) $ (1,082,000 ) $ (4,912,000 ) $ 1,121,000 State (669,000 ) (346,000 ) (1,570,000 ) 358,000 Total income tax expense (benefit) $ (2,764,000 ) $ (1,428,000 ) $ (6,482,000 ) $ 1,479,000 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 September 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. The Company is engaged in acquiring of life insurance policies and holding them to maturity. Due to the nature of holding policies and the aging of the underlying insureds, Management believes the Company likely will recognize taxable income as the policies in our portfolio start maturing at an accelerated rate in the near future. Management has evaluated and concluded on the material accuracy of our deferred tax carrying amounts. 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 September 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	9 Months Ended
	Sep. 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.” In conjunction with the initial public offering our Company issued warrants to purchase 16,000 shares of our common stock at an exercise price of $15.63 per share. As of September 30, 2017 none of these warrants had been exercised. The weighted average remaining life of these warrants at September 30, 2017 was 2.0 years.

Stock Incentive Plan

Stock Incentive Plan	9 Months Ended
	Sep. 30, 2017
Stock Incentive Plan [Abstract]
Stock Incentive Plan	(14) Stock Incentive Plan We adopted our 2013 Stock Incentive Plan in March 2013, as amended on June 1, 2015 and May 5, 2017. 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 September 30, 2017, 3,000,000 common stock options are issuable under the plan. Stock Options Through September 30, 2017, we had outstanding stock options for 1,514,000 shares of common stock to employees, officers, and directors under the plan. Options for 762,000 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 34.9%. 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. As of September 30, 2017, stock options for 682,000 shares had been forfeited and stock options for 120,000 shares had been exercised. 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 40,100 228,300 268,400 Vested year-to-date 218,218 (218,218 ) - Exercised year-to-date (92,000 ) - (92,000 ) Forfeited year-to-date (142,119 ) (102,315 ) (244,434 ) Balance as of September 30, 2017 762,264 752,101 1,514,365 Compensation expense related to unvested options not yet recognized is $488,000. We expect to recognize this compensation expense over the next three years ($103,000 in 2017, $267,000 in 2018, $103,000 in 2019, and $15,000 in 2020). Stock Appreciation Rights (SARs) As of September 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 September 30, 2017, 149,000 of the SARs were vested. On September 30, 2017 the market price of GWG’s common stock was $10.07. 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 38,197 (38,197 ) - Forfeited during the year - - - Balance as of September 30, 2017 148,868 131,604 280,472 The liability for the SARs as of September 30, 2017, recorded within Other accrued expenses, was $307,000. Employee compensation and benefits expense for SARs of ($9,000) and $303,000 was recorded during the three and nine months ended September 30, 2017. Upon the exercise of SARs, the Company is obligated to make cash payment 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 common stock on the date of grant.

Other Expenses

Other Expenses	9 Months Ended
	Sep. 30, 2017
Other Expenses Disclosure [Abstract]
Other Expenses	(15) Other Expenses The components of “Other expenses” on our Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 and 2016 are as follows: Three months ended September 30, Nine months ended 2017 2016 2017 2016 Contract Labor $ 130,041 $ 218,884 $ 311,314 $ 717,111 Marketing 485,510 423,041 1,686,943 1,234,372 Information Technology 410,903 194,653 1,093,011 522,552 Servicing and Facility Fees 276,826 520,235 855,928 680,208 Travel and Entertainment 249,684 272,785 767,958 838,111 Insurance and Regulatory 415,817 452,814 1,239,670 1,107,088 Charitable Contributions 42,093 277,508 462,103 279,682 General and Administrative 760,322 503,292 2,017,690 1,828,933 $ 2,771,196 $ 2,863,212 $ 8,434,617 $ 7,208,057

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2017
Net Loss per Common Share [Abstract]
Net Loss per Common Share	(16) Net Loss per Common Share We have outstanding Series A, RPS and RPS 2, as respectively 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 September 30, 2017 and 2016. We also issued warrants to purchase common stock in conjunction with the sale of Series A (see Note 9), which have expired as of September 30, 2017. Both those warrants and our vested stock options are anti-dilutive at both September 30, 2017 and 2016.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2017
Commitments/Contingencies [Abstract]
Commitments	(17) 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 October 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 $121,000 and $344,000 during the three and nine months ended September 30, 2017 and $102,000 and $306,000 for the three and nine months ended September 30, 2016. Minimum lease payments under the amended lease are as follows: Three months ending December 31, 2017 $ 64,000 2018 266,000 2019 275,000 2020 284,000 2021 293,000 2022 302,000 Thereafter 904,000 $ 2,388,000

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments/Contingencies [Abstract]
Contingencies	(18) Contingencies Litigation

Guarantee of L Bonds

Guarantee of L Bonds	9 Months Ended
	Sep. 30, 2017
Guarantee of L Bonds [Abstract]
Guarantee of L Bonds	(19) 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. GWG Life’s equity in DLP IV serve as collateral for our L Bond obligations. Substantially all of our life insurance policies are held by DLP IV and the Trust. The policies held by DLP IV are not collateral for the L Bond obligations as such policies are pledged to the senior credit facility with LNV Corporation. 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 substantial majority of insurance policies we currently own are subject to a collateral arrangement with LNV Corporation described in Note 6. Under this arrangement, we are required to maintain a collection account that is used to collect policy benefits from pledged policies, pay interest and other charges under the facility, and distribute funds to pay down the facility. The following represents consolidating financial information as of September 30, 2017 and December 31, 2016, with respect to the financial position, and for the three and nine months ended September 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 IV and the Trust under the equity method. The non-guarantor subsidiaries column presents the financial information of all non-guarantor subsidiaries, including DLP IV and the Trust. Condensed Consolidating Balance Sheets September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 31,382,104 $ 82,587,231 $ 1,376,146 $ - $ 115,345,481 Restricted cash - 2,647,121 3,172,109 - 5,819,230 Investment in life insurance policies, at fair value - 45,962,331 574,135,607 - 620,097,938 Secured MCA advances - - 2,623,657 - 2,623,657 Life insurance policy benefits receivable - - 14,597,000 - 14,597,000 Deferred taxes, net 4,384,546 - - - 4,384,546 Other assets 1,883,433 2,013,796 61,584 (134,613 ) 3,824,200 Investment in subsidiaries 519,803,823 385,753,794 - (905,557,617 ) - TOTAL ASSETS $ 557,453,906 $ 518,964,273 $ 595,966,103 $ (905,692,230 ) $ 766,692,052 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 facility $ - $ - $ 201,978,580 $ - $ 201,978,580 L Bonds 413,060,517 - - - 413,060,517 Accounts payable 1,062,708 1,259,708 1,392,820 - 3,715,236 Interest and dividends payable 10,541,613 - 2,980,582 (1,021 ) 13,521,174 Other accrued expenses 1,165,044 1,351,379 409,690 (133,592 ) 2,792,521 TOTAL LIABILITIES 425,829,882 2,611,087 206,761,672 (134,613 ) 635,068,028 STOCKHOLDERS’ EQUITY Member’s capital - 516,353,186 389,204,431 (905,557,617 ) - Convertible preferred stock 19,408,980 - - - 19,408,980 Redeemable preferred stock and Series 2 redeemable preferred stock 140,828,380 - - - 140,828,380 Common stock 5,814 - - - 5,814 Accumulated deficit (28,619,150 ) - - - (28,619,150 ) TOTAL STOCKHOLDERS’ EQUITY 131,624,024 516,353,186 389,204,431 (905,557,617 ) 131,624,024 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 557,453,906 $ 518,964,273 $ 595,966,103 $ (905,692,230 ) $ 766,692,052 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 September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 125,525 $ - $ (105,525 ) $ 20,000 Gain on life insurance policies, net - 2,780,544 11,640,809 - 14,421,353 MCA income - - 100,367 - 100,367 Interest and other income 40,044 (12,115 ) 139,498 (12,104 ) 155,323 TOTAL REVENUE 40,044 2,893,954 11,880,674 (117,629 ) 14,697,043 EXPENSES Policy servicing fees - - 105,525 (105,525 ) - Interest expense 9,907,959 253,422 3,126,130 (12,104 ) 13,275,407 Employee compensation and benefits 2,140,675 1,413,103 238,318 - 3,792,096 Legal and professional fees 746,939 246,691 663,460 - 1,657,090 Provision for MCA advances - - 28,000 - 28,000 Other expenses 1,743,730 711,528 315,938 - 2,771,196 TOTAL EXPENSES 14,539,303 2,624,744 4,477,371 (117,629 ) 21,523,789 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (14,499,259 ) 269,210 7,403,303 - (6,826,746 ) EQUITY IN INCOME OF SUBSIDIARIES 7,672,513 8,263,120 - (15,935,633 ) - INCOME (LOSS) BEFORE INCOME TAXES (6,826,746 ) 8,532,330 7,403,303 (15,935,633 ) (6,826,746 ) INCOME TAX BENEFIT (2,764,243 ) - - - (2,764,243 ) NET INCOME (LOSS) (4,062,503 ) 8,532,330 7,403,303 (15,935,633 ) (4,062,503 ) Preferred stock dividends 3,548,165 - - - 3,548,165 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (7,610,668 ) $ 8,532,330 $ 7,403,303 $ (15,935,633 ) $ (7,610,668 ) For the three months ended September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ - $ - $ - $ - Gain on life insurance policies, net - - 13,509,755 - 13,509,755 MCA income - - 286,225 - 286,225 Interest and other income 75,808 30,126 83,313 (64,249 ) 124,998 TOTAL REVENUE 75,808 30,126 13,879,293 (64,249 ) 13,920,978 EXPENSES Policy servicing fees - - - - - Interest expense 8,705,950 554,938 1,746,151 (64,249 ) 10,942,790 Employee compensation and benefits 1,718,683 1,038,058 155,722 - 2,912,463 Legal and professional fees 263,917 297,804 25,109 - 586,830 Other expenses 1,464,498 803,106 595,608 - 2,863,212 TOTAL EXPENSES 12,153,048 2,693,906 2,522,590 (64,249 ) 17,305,295 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (12,077,240 ) (2,663,780 ) 11,356,703 - (3,384,317 ) EQUITY IN INCOME OF SUBSIDIARIES 8,692,923 11,361,329 - (20,054,252 ) - INCOME BEFORE INCOME TAXES (3,384,317 ) 8,697,549 11,356,703 (20,054,252 ) (3,384,317 ) INCOME TAX BENEFIT (1,428,130 ) - - - (1,428,130 ) NET INCOME (1,956,187 ) 8,697,549 11,356,703 (20,054,252 ) (1,956,187 ) Preferred stock dividends 1,041,178 - - - 1,041,178 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (2,997,365 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (2,997,365 ) For the nine months ended September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 311,800 $ - $ (291,800 ) $ 20,000 Gain on life insurance policies, net - 4,481,555 40,635,883 - 45,117,438 MCA income - - 480,526 - 480,526 Interest and other income 194,273 36,895 683,141 (79,300 ) 835,009 TOTAL REVENUE 194,273 4,830,250 41,799,550 (371,100 ) 46,452,973 EXPENSES Policy servicing fees - - 291,800 (291,800 ) - Interest expense 27,495,867 930,837 10,418,243 (79,300 ) 38,765,647 Employee compensation and benefits 6,179,032 4,163,873 353,550 - 10,696,455 Legal and professional fees 1,524,510 687,240 1,722,277 - 3,934,027 Provision for MCA advances - - 906,000 - 906,000 Other expenses 5,291,881 2,244,577 898,159 - 8,434,617 TOTAL EXPENSES 40,491,290 8,026,527 14,590,029 (371,100 ) 62,736,746 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (40,297,017 ) (3,196,277 ) 27,209,521 - (16,283,773 ) EQUITY IN INCOME OF SUBSIDIARIES 24,013,244 29,569,105 - (53,582,349 ) - INCOME (LOSS) BEFORE INCOME TAXES (16,283,773 ) 26,372,828 27,209,521 (53,582,349 ) (16,283,773 ) INCOME TAX BENEFIT (6,481,917 ) - - - (6,481,917 ) NET INCOME (LOSS) (9,801,856 ) 26,372,828 27,209,521 (53,582,349 ) (9,801,856 ) Preferred stock dividends 7,447,022 - - - 7,447,022 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (17,248,878 ) $ 26,372,828 $ 27,209,521 $ (53,582,349 ) $ (17,248,878 ) For the nine months ended September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance policies, net - - 51,606,815 - 51,606,815 MCA income - - 654,441 - 654,441 Interest and other income 181,828 31,137 282,259 (154,126 ) 341,098 TOTAL REVENUE 181,828 44,554 52,543,515 (167,543 ) 52,602,354 EXPENSES Policy servicing fees - - 13,417 (13,417 ) - Interest expense 23,323,987 1,856,909 4,829,831 (154,126 ) 29,856,601 Employee compensation and benefits 4,894,006 3,151,107 405,055 - 8,450,168 Legal and professional fees 1,642,252 1,308,959 146,101 - 3,097,312 Other expenses 4,241,825 2,197,133 1,169,099 - 7,608,057 TOTAL EXPENSES 34,102,070 8,514,108 6,563,503 (167,543 ) 49,012,138 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (33,920,242 ) (8,469,554 ) 45,980,012 - 3,590,216 EQUITY IN INCOME OF SUBSIDIARIES 37,510,458 46,497,731 - (84,008,189 ) - INCOME BEFORE INCOME TAXES 3,590,216 38,028,177 45,980,012 (84,008,189 ) 3,590,216 INCOME TAX EXPENSE 1,478,617 - - - 1,478,617 NET INCOME 2,111,599 38,028,177 45,980,012 (84,008,189 ) 2,111,599 Preferred stock dividends 2,153,333 - - - 2,153,333 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (41,734 ) $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ (41,734 ) Condensed Consolidating Statements of Cash Flows For the three months ended September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (4,062,503 ) $ 8,532,330 $ 7,403,303 $ (15,935,633 ) $ (4,062,503 ) Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (7,672,513 ) (8,263,120 ) - 15,935,633 - Change in fair value of life insurance policies - (3,609,194 ) (16,572,538 ) - (20,181,732 ) Amortization of deferred financing and issuance costs 2,075,632 134,445 134,464 - 2,344,541 Deferred income taxes (2,764,243 ) - - - (2,764,243 ) Preferred stock dividends payable 333,391 - - - 333,391 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (7,627,000 ) - (7,627,000 ) Other assets (38,552,777 ) 51,740,361 330,547 (13,415,694 ) 102,437 Increase (decrease) in operating liabilities: Due to related party 807,511 (10,940 ) (800,000 ) - (3,429 ) Accounts payable and accrued expenses 693,285 (844,072 ) (264,684 ) - (415,471 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (49,142,217 ) 47,679,810 (17,395,908 ) (13,415,694 ) (32,274,009 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (25,199,692 ) - (25,199,692 ) Carrying value of matured life insurance policies - 505,000 1,828,039 - 2,333,039 Proceeds from Secured MCA advances - - 826,621 - 826,621 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 505,000 (22,545,032 ) - (22,040,032 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 56,887,491 - 56,887,491 Payments for issuance of senior debt - (3,937,907 ) - (3,937,907 ) Payments for redemption of Series I Secured Notes - (6,815,406 ) - - (6,815,406 ) Proceeds from issuance of L Bonds 30,271,873 - - - 30,271,873 Payments for issuance and redemption of L Bonds (19,752,717 ) - - - (19,752,717 ) Payments to restricted cash - 1,807,105 38,533,296 - 40,340,401 Issuance of member capital - 37,959,462 (51,375,156 ) 13,415,694 -- Issuance of common stock 30 - - - 30 Proceeds from issuance of preferred stock 25,211,870 - - - 25,211,870 Payments for issuance and redemption of preferred stock (1,291,420 ) - - - (1,291,420 ) Payments of preferred stock dividends (3,548,165 ) - - - (3,548,165 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 30,891,471 32,951,161 40,107,724 13,415,694 117,366,050 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (18,250,746 ) 81,135,971 166,784 63,052,009 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 49,632,850 1,451,260 1,209,362 - 52,293,472 END OF THE PERIOD $ 31,382,104 $ 82,587,231 $ 1,376,146 $ - $ 115,345,481 For the three months ended September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ (1,956,187 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (1,956,187 ) Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (8,692,924 ) (11,361,328 ) - 20,054,252 - Change in fair value of life insurance policies - - (21,073,226 ) - (21,073,226 ) Amortization of deferred financing and issuance costs 2,072,879 81,849 611,015 - 2,765,743 Deferred income taxes (1,428,130 ) - - - (1,428,130 ) Preferred stock dividends payable 333,565 - - - 333,565 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - 700,000 - 700,000 Other assets (54,428,152 ) (54,272,589 ) - 109,120,577 419,836 Increase (decrease) in operating liabilities: Due to related party (64,249 ) (16,700 ) - - (80,949 ) Accounts payable and other accrued expenses 155,980 2,172,227 (5,545,197 ) - (3,216,990 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (64,007,218 ) (54,698,992 ) (13,950,705 ) 109,120,577 (23,536,338 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (25,770,326 ) - (25,770,326 ) Carrying value of matured life insurance policies - - 1,078,889 - 1,078,889 Investment in Secured MCA advances - - (1,965,896 ) (1,965,896 ) Proceeds from Secured MCA advances - - 220,911 - 220,911 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (26,436,422 ) - (26,436,422 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - (10,761,048 ) - (10,761,048 ) Payments for redemption of Series I Secured Notes - (541,275 ) - - (541,275 ) Proceeds from issuance of L Bonds 64,350,430 - - - 64,350,430 Payments for issuance and redemption of L Bonds (14,373,447 ) - - - (14,373,447 ) Payments to restricted cash - 486,283 (5,013,515 ) - (4,527,232 ) Issuance of member capital - 52,304,345 56,816,232 (109,120,577 ) - Issuance of common stock 31,515 - - - 31,515 Proceeds from issuance of preferred stock 20,786,332 - - - 20,786,332 Payments for issuance and redemption of preferred stock (2,485,304 ) - (71,555 ) - (2,556,859 ) Payments of preferred stock dividends (1,041,178 ) - - - (1,041,178 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 67,268,348 52,249,353 40,970,114 (109,120,577 ) 51,367,238 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,261,130 (2,449,639 ) 582,987 - 1,394,478 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 10,051,621 6,822,484 505,245 - 17,379,350 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 For the nine months ended September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (9,801,856 ) $ 26,372,828 $ 27,209,521 $ (53,582,349 ) $ (9,801,856 ) Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (24,013,243 ) (29,569,106 ) - 53,582,349 - Change in fair value of life insurance policies - (4,803,015 ) (44,498,052 ) - (49,301,067 ) Amortization of deferred financing and issuance costs 4,931,441 208,829 1,368,422 - 6,508,692 Deferred income taxes (6,481,917 ) - - - (6,481,917 ) Preferred stock dividends payable 1,034,139 - - - 1,034,139 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (9,252,000 ) - (9,252,000 ) Other assets (65,691,037 ) (3,794,004 ) 788,726 69,667,082 970,767 Increase (decrease) in operating liabilities: Due to related party 1,897,406 (10,620 ) (1,900,000 ) - (13,214 ) Accounts payable and other accrued expenses 2,331,255 (2,407,918 ) 1,917,279 - 1,840,616 NET CASH FLOWS USED IN OPERATING ACTIVITIES (95,793,812 ) (14,003,006 ) (24,366,104 ) 69,667,082 (64,495,840 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (67,321,363 ) - (67,321,363 ) Carrying value of matured life insurance policies - 1,256,576 6,460,271 - 7,716,847 Investment in Secured MCA advances - - (39,671 ) - (39,671 ) Proceeds from Secured MCA advances - - 2,250,323 - 2,250,323 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 1,256,576 (58,650,440 ) - (57,393,864 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - 49,787,954 - 49,787,954 Payments for issuance of senior debt (1,076,118 ) (4,052,201 ) - (5,128,319 ) Payments for redemption of Series I Secured Notes - (16,613,667 ) - - (16,613,667 ) Proceeds from issuance of L Bonds 87,016,343 - - - 87,016,343 Payments for issuance and redemption of L Bonds (58,949,880 ) - - - (58,949,880 ) Payments to restricted cash - (529,472 ) 32,536,838 - 32,007,366 Issuance of member capital - 64,191,966 5,475,116 (69,667,082 ) - Payments for issuance and redemption of common stock (1,603,526 ) - - - (1,603,526 ) Proceeds from issuance of preferred stock 86,692,811 - - - 86,692,811 Payments for issuance and redemption of preferred stock (7,013,857 ) - - - (7,013,857 ) Payments of preferred stock dividends (7,447,022 ) - - - (7,447,022 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 98,694,869 45,972,709 83,747,707 (69,667,082 ) 158,748,203 NET INCREASE IN CASH AND CASH EQUIVALENTS 2,901,057 33,226,279 731,163 - 36,858,499 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 28,481,047 49,360,952 644,983 - 78,486,982 END OF THE PERIOD $ 31,382,104 $ 82,587,231 $ 1,376,146 $ - $ 115,345,481 For the nine months ended September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,111,599 $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ 2,111,599 Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (37,510,459 ) (46,497,730 ) - 84,008,189 - Change in fair value of life insurance policies - - (53,846,155 ) - (53,846,155 ) Amortization of deferred financing and issuance costs 5,982,802 (1,364,614 ) 1,459,717 - 6,077,905 Deferred income taxes 1,478,617 - - - 1,478,617 Preferred stock dividends payable 663,614 - - - 663,614 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (6,129,022 ) (6,129,022 ) Other assets (114,885,990 ) (92,168,163 ) - 206,436,523 (617,630 ) Increase in operating liabilities: Due to related party (2,867,225 ) (15,505 ) 2,700,000 - (182,730 ) Accounts payable and accrued expenses 2,396,503 2,889,525 (7,310,262 ) - (2,024,234 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (142,630,539 ) (99,128,310 ) (17,145,710 ) 206,436,523 (52,468,036 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (74,470,362 ) - (74,470,362 ) Carrying value of matured life insurance policies - - 7,381,132 - 7,381,132 Investment in Secured MCA advances - - (7,613,310 ) - (7,613,310 ) Proceeds from Secured MCA advances - - 1,246,703 - 1,246,703 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (73,455,837 ) - (73,455,837 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 6,238,952 - 6,238,952 Payments for redemption of Series I Secured Notes - (6,264,018 ) - - (6,264,018 ) Proceeds from issuance of L Bonds 135,477,090 - - - 135,477,090 Payments for issuance and redemption of L Bonds (37,036,922 ) - - - (37,036,922 ) Payments to restricted cash - (2,335,768 ) (11,010,358 ) - (13,346,126 ) Issuance of common stock 244,185 - - - 244,185 Proceeds from issuance of preferred stock 31,215,986 - 71,555 - 31,287,541 Payments for issuance and redemption of preferred stock (4,095,878 ) - (78,895 ) - (4,174,773 ) Payments of preferred stock dividends (2,153,333 ) - - - (2,153,333 ) Issuance of member capital - 110,118,219 96,318,304 (206,436,523 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 123,651,128 101,518,433 91,539,558 (206,436,523 ) 110,272,596 NET INCREASE IN CASH AND CASH EQUIVALENTS (18,979,411 ) 2,390,123 938,011 - (15,651,277 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2017
Concentrations [Abstract]
Concentrations	(20) Concentrations We mostly 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 September 30, December 31, 2017 2016 John Hancock 14.92 % 14.36 % AXA Equitable 12.24 % 13.42 % Lincoln National 11.27 % 11.22 % 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 September 30, December 31, 2017 2016 Florida 19.76 % 19.42 % California 19.06 % 20.72 %

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	(21) Subsequent Events Since September 30, 2017, eight policies covering seven individuals have matured. The combined life insurance benefits of these policies were $14,953,000. Since September 30, 2017, we have issued approximately $18,277,000 of L Bonds. Since September 30, 2017, we have issued approximately $13,037,000 of RPS 2. On October 9, 2017, all shares of Series A were redeemed with a redemption payment equal to the sum of (i) $8.25 per share of Series A and (ii) all accrued but unpaid dividends calculated at an annual rate of $0.75 per share, for an aggregate of $22,252,000. On October 23, 2017, we entered into an Amended and Restated Indenture with GWG Life, LLC, as guarantor, and Bank of Utah, as trustee, for the purposes of (i) eliminating references to the Series I Secured Notes that had been governed by the original indenture and were fully paid off as described in this report (and replacing those references, where appropriate, with general references to pari passu debt that may be incurred in the future), (ii) eliminating references to an intercreditor agreement that had been entered into for the benefit of the holders of the Series I Secured Notes, and (iii) updating and otherwise clarifying certain provisions of the original Indenture. Our L Bonds are presently the only securities that have been issued under the Amended and Restated Indenture. Also on October 23, 2017, we entered into an Amended and Restated Pledge and Security Agreement with GWG Life, LLC, Jon R. Sabes and Steven F. Sabes, each as a grantor, and Bank of Utah, as the collateral trustee, for the purposes of (i) amending and restating the terms under which it and the other grantors have granted a security interest for the obligations owing in respect of the L Bonds issued under the Amended and Restated Indenture to be consistent with the Amended and Restated Indenture described above, and (ii) updating and otherwise clarifying certain provisions of the original Pledge and Security Agreement.

Nature of Business and Summar28

Nature of Business and Summary of Significant Accounting Policies(Policies)	9 Months Ended
	Sep. 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 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 September 30, 2017 and December 31, 2016, a total of $0 and $42,000, respectively, of our “other assets” comprised direct costs and deposits that we had advanced for life insurance 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 (upon 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 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.
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 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 adopted ASU 2016-09 effective January 1, 2017. The impact of the adoption was not material to the financial statements.

Investment in Life Insurance 29

Investment in Life Insurance Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Investment in Life Insurance Policies [Abstract]
Summary of policies according to estimated life expectancy dates	As of September 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 2 $ 2,016,000 $ 2,125,000 11 $ 14,837,000 $ 16,939,000 2018 9 13,222,000 16,564,000 23 30,830,000 42,564,000 2019 57 63,926,000 88,967,000 55 57,556,000 88,858,000 2020 94 88,281,000 148,908,000 93 85,414,000 159,814,000 2021 88 87,710,000 162,525,000 86 73,825,000 158,744,000 2022 91 78,940,000 174,699,000 66 56,909,000 147,222,000 2023 84 63,439,000 168,821,000 64 44,953,000 128,581,000 Thereafter 425 222,564,000 860,018,000 292 146,868,000 618,953,000 Totals 850 $ 620,098,000 $ 1,622,627,000 690 $ 511,192,000 1,361,675,000
Schedule of reconciliation of gain on life insurance policies	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Change in estimated probabilistic cash flows $ 12,568,000 $ 12,955,000 $ 40,033,000 $ 34,078,000 Unrealized gain on acquisitions 7,217,000 11,668,000 25,863,000 29,509,000 Premiums and other annual fees (13,174,000 ) (11,784,000 ) (36,124,000 ) (29,225,000 ) Change in discount rates (1) 7,987,000 (378,000 ) 12,130,000 460,000 Change in life expectancy evaluation (2) (5,370,000 ) (2,285,000 ) (13,974,000 ) (3,199,000 ) Face value of matured policies 9,747,000 5,300,000 39,657,000 34,367,000 Fair value of matured policies (4,554,000 ) (1,966,000 ) (22,468,000 ) (14,383,000 ) Gain on life insurance policies, net $ 14,421,000 $ 13,510,000 $ 45,117,000 $ 51,607,000 (1) The discount rate applied to estimate the fair value of the portfolio of life insurance policies we own was 10.54% as of September 30, 2017, compared to 10.96% as of December 31, 2016 and 11.07% as of September 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.
Schedule of estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies	Years Ending December 31, Premiums Servicing Premiums and Three months ending December 31, 2017 $ 16,915,000 $ 1,587,000 $ 18,502,000 2018 54,931,000 1,587,000 56,518,000 2019 60,916,000 1,587,000 62,503,000 2020 68,728,000 1,587,000 70,315,000 2021 77,522,000 1,587,000 79,109,000 2022 87,424,000 1,587,000 89,011,000 $ 366,436,000 $ 9,522,000 $ 375,958,000

Fair Value Definition and Hie30

Fair Value Definition and Hierarchy (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Definition and Hierarchy [Abstract]
Schedule of reconciliation of investments in life insurance policies	Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Beginning balance $ 577,050,000 $ 431,820,000 $ 511,192,000 $ 356,650,000 Purchases 25,199,000 25,770,000 67,321,000 74,470,000 Maturities (initial cost basis) (2,333,000 ) (1,078,000 ) (7,716,000 ) (7,381,000 ) Net change in fair value 20,182,000 21,073,000 49,301,000 53,846,000 Ending balance $ 620,098,000 $ 477,585,000 $ 620,098,000 $ 477,585,000
Summary of inputs utilized in estimating fair value of portfolio life insurance policies	As of September 30, 2017 As of Weighted-average age of insured, years * 81.7 81.6 Weighted-average life expectancy, months * 82.6 83.2 Average face amount per policy $ 1,909,000 $ 1,973,000 Discount rate 10.54 % 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 plus September 30, 2017 $ 83,536,000 $ 41,411,000 $ (40,893,000 ) $ (81,069,000 ) 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% September 30, 2017 $ 65,263,000 $ 31,222,000 $ (28,708,000 ) $ (55,167,000 ) December 31, 2016 $ 53,764,000 $ 25,728,000 $ (23,668,000 ) $ (45,491,000 )
Summary of outstanding warrants	Month issued Warrants issued Fair value per share Risk free rate Volatility Term September 2014 16,000 $ 1.26 1.85 % 17.03 % 5 years 16,000

L Bonds (Tables)

L Bonds (Tables)	9 Months Ended
	Sep. 30, 2017
L Bonds [Abstract]
Schedule of future contractual maturities of L Bonds, and their related unamortized deferred financing costs	Years Ending December 31, Contractual Maturities Unamortized Deferred Financing Costs Three months ending December 31, 2017 $ 17,059,000 $ 104,000 2018 108,717,000 1,652,000 2019 133,174,000 4,294,000 2020 63,523,000 2,763,000 2021 28,703,000 1,350,000 Thereafter 73,602,000 4,299,000 $ 424,778,000 $ 14,462,000

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2017
Income Taxes [Abstract]
Schedule of deferred income tax expense (benefit)	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Deferred: Federal $ (2,095,000 ) $ (1,082,000 ) $ (4,912,000 ) $ 1,121,000 State (669,000 ) (346,000 ) (1,570,000 ) 358,000 Total income tax expense (benefit) $ (2,764,000 ) $ (1,428,000 ) $ (6,482,000 ) $ 1,479,000

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)	9 Months Ended
	Sep. 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 40,100 228,300 268,400 Vested year-to-date 218,218 (218,218 ) - Exercised year-to-date (92,000 ) - (92,000 ) Forfeited year-to-date (142,119 ) (102,315 ) (244,434 ) Balance as of September 30, 2017 762,264 752,101 1,514,365
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 38,197 (38,197 ) - Forfeited during the year - - - Balance as of September 30, 2017 148,868 131,604 280,472

Other Expenses (Tables)

Other Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Other Expenses Disclosure [Abstract]
Schedule of other expenses on condensed consolidatedsStatements of operations	Three months ended September 30, Nine months ended 2017 2016 2017 2016 Contract Labor $ 130,041 $ 218,884 $ 311,314 $ 717,111 Marketing 485,510 423,041 1,686,943 1,234,372 Information Technology 410,903 194,653 1,093,011 522,552 Servicing and Facility Fees 276,826 520,235 855,928 680,208 Travel and Entertainment 249,684 272,785 767,958 838,111 Insurance and Regulatory 415,817 452,814 1,239,670 1,107,088 Charitable Contributions 42,093 277,508 462,103 279,682 General and Administrative 760,322 503,292 2,017,690 1,828,933 $ 2,771,196 $ 2,863,212 $ 8,434,617 $ 7,208,057

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments/Contingencies [Abstract]
Schedule of minimum lease payments under amendment lease	Three months ending December 31, 2017 $ 64,000 2018 266,000 2019 275,000 2020 284,000 2021 293,000 2022 302,000 Thereafter 904,000 $ 2,388,000

Guarantee of L Bonds (Tables)

Guarantee of L Bonds (Tables)	9 Months Ended
	Sep. 30, 2017
Guarantee of L Bonds [Abstract]
Schedule of condensed consolidating balance sheets	September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated A S S E T S Cash and cash equivalents $ 31,382,104 $ 82,587,231 $ 1,376,146 $ - $ 115,345,481 Restricted cash - 2,647,121 3,172,109 - 5,819,230 Investment in life insurance policies, at fair value - 45,962,331 574,135,607 - 620,097,938 Secured MCA advances - - 2,623,657 - 2,623,657 Life insurance policy benefits receivable - - 14,597,000 - 14,597,000 Deferred taxes, net 4,384,546 - - - 4,384,546 Other assets 1,883,433 2,013,796 61,584 (134,613 ) 3,824,200 Investment in subsidiaries 519,803,823 385,753,794 - (905,557,617 ) - TOTAL ASSETS $ 557,453,906 $ 518,964,273 $ 595,966,103 $ (905,692,230 ) $ 766,692,052 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 facility $ - $ - $ 201,978,580 $ - $ 201,978,580 L Bonds 413,060,517 - - - 413,060,517 Accounts payable 1,062,708 1,259,708 1,392,820 - 3,715,236 Interest and dividends payable 10,541,613 - 2,980,582 (1,021 ) 13,521,174 Other accrued expenses 1,165,044 1,351,379 409,690 (133,592 ) 2,792,521 TOTAL LIABILITIES 425,829,882 2,611,087 206,761,672 (134,613 ) 635,068,028 STOCKHOLDERS’ EQUITY Member’s capital - 516,353,186 389,204,431 (905,557,617 ) - Convertible preferred stock 19,408,980 - - - 19,408,980 Redeemable preferred stock and Series 2 redeemable preferred stock 140,828,380 - - - 140,828,380 Common stock 5,814 - - - 5,814 Accumulated deficit (28,619,150 ) - - - (28,619,150 ) TOTAL STOCKHOLDERS’ EQUITY 131,624,024 516,353,186 389,204,431 (905,557,617 ) 131,624,024 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 557,453,906 $ 518,964,273 $ 595,966,103 $ (905,692,230 ) $ 766,692,052 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 September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 125,525 $ - $ (105,525 ) $ 20,000 Gain on life insurance policies, net - 2,780,544 11,640,809 - 14,421,353 MCA income - - 100,367 - 100,367 Interest and other income 40,044 (12,115 ) 139,498 (12,104 ) 155,323 TOTAL REVENUE 40,044 2,893,954 11,880,674 (117,629 ) 14,697,043 EXPENSES Policy servicing fees - - 105,525 (105,525 ) - Interest expense 9,907,959 253,422 3,126,130 (12,104 ) 13,275,407 Employee compensation and benefits 2,140,675 1,413,103 238,318 - 3,792,096 Legal and professional fees 746,939 246,691 663,460 - 1,657,090 Provision for MCA advances - - 28,000 - 28,000 Other expenses 1,743,730 711,528 315,938 - 2,771,196 TOTAL EXPENSES 14,539,303 2,624,744 4,477,371 (117,629 ) 21,523,789 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (14,499,259 ) 269,210 7,403,303 - (6,826,746 ) EQUITY IN INCOME OF SUBSIDIARIES 7,672,513 8,263,120 - (15,935,633 ) - INCOME (LOSS) BEFORE INCOME TAXES (6,826,746 ) 8,532,330 7,403,303 (15,935,633 ) (6,826,746 ) INCOME TAX BENEFIT (2,764,243 ) - - - (2,764,243 ) NET INCOME (LOSS) (4,062,503 ) 8,532,330 7,403,303 (15,935,633 ) (4,062,503 ) Preferred stock dividends 3,548,165 - - - 3,548,165 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (7,610,668 ) $ 8,532,330 $ 7,403,303 $ (15,935,633 ) $ (7,610,668 ) For the three months ended September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ - $ - $ - $ - Gain on life insurance policies, net - - 13,509,755 - 13,509,755 MCA income - - 286,225 - 286,225 Interest and other income 75,808 30,126 83,313 (64,249 ) 124,998 TOTAL REVENUE 75,808 30,126 13,879,293 (64,249 ) 13,920,978 EXPENSES Policy servicing fees - - - - - Interest expense 8,705,950 554,938 1,746,151 (64,249 ) 10,942,790 Employee compensation and benefits 1,718,683 1,038,058 155,722 - 2,912,463 Legal and professional fees 263,917 297,804 25,109 - 586,830 Other expenses 1,464,498 803,106 595,608 - 2,863,212 TOTAL EXPENSES 12,153,048 2,693,906 2,522,590 (64,249 ) 17,305,295 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (12,077,240 ) (2,663,780 ) 11,356,703 - (3,384,317 ) EQUITY IN INCOME OF SUBSIDIARIES 8,692,923 11,361,329 - (20,054,252 ) - INCOME BEFORE INCOME TAXES (3,384,317 ) 8,697,549 11,356,703 (20,054,252 ) (3,384,317 ) INCOME TAX BENEFIT (1,428,130 ) - - - (1,428,130 ) NET INCOME (1,956,187 ) 8,697,549 11,356,703 (20,054,252 ) (1,956,187 ) Preferred stock dividends 1,041,178 - - - 1,041,178 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (2,997,365 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (2,997,365 ) For the nine months ended September 30, 2017 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 311,800 $ - $ (291,800 ) $ 20,000 Gain on life insurance policies, net - 4,481,555 40,635,883 - 45,117,438 MCA income - - 480,526 - 480,526 Interest and other income 194,273 36,895 683,141 (79,300 ) 835,009 TOTAL REVENUE 194,273 4,830,250 41,799,550 (371,100 ) 46,452,973 EXPENSES Policy servicing fees - - 291,800 (291,800 ) - Interest expense 27,495,867 930,837 10,418,243 (79,300 ) 38,765,647 Employee compensation and benefits 6,179,032 4,163,873 353,550 - 10,696,455 Legal and professional fees 1,524,510 687,240 1,722,277 - 3,934,027 Provision for MCA advances - - 906,000 - 906,000 Other expenses 5,291,881 2,244,577 898,159 - 8,434,617 TOTAL EXPENSES 40,491,290 8,026,527 14,590,029 (371,100 ) 62,736,746 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (40,297,017 ) (3,196,277 ) 27,209,521 - (16,283,773 ) EQUITY IN INCOME OF SUBSIDIARIES 24,013,244 29,569,105 - (53,582,349 ) - INCOME (LOSS) BEFORE INCOME TAXES (16,283,773 ) 26,372,828 27,209,521 (53,582,349 ) (16,283,773 ) INCOME TAX BENEFIT (6,481,917 ) - - - (6,481,917 ) NET INCOME (LOSS) (9,801,856 ) 26,372,828 27,209,521 (53,582,349 ) (9,801,856 ) Preferred stock dividends 7,447,022 - - - 7,447,022 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (17,248,878 ) $ 26,372,828 $ 27,209,521 $ (53,582,349 ) $ (17,248,878 ) For the nine months ended September 30, 2016 Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated REVENUE Policy servicing income $ - $ 13,417 $ - $ (13,417 ) $ - Gain on life insurance policies, net - - 51,606,815 - 51,606,815 MCA income - - 654,441 - 654,441 Interest and other income 181,828 31,137 282,259 (154,126 ) 341,098 TOTAL REVENUE 181,828 44,554 52,543,515 (167,543 ) 52,602,354 EXPENSES Policy servicing fees - - 13,417 (13,417 ) - Interest expense 23,323,987 1,856,909 4,829,831 (154,126 ) 29,856,601 Employee compensation and benefits 4,894,006 3,151,107 405,055 - 8,450,168 Legal and professional fees 1,642,252 1,308,959 146,101 - 3,097,312 Other expenses 4,241,825 2,197,133 1,169,099 - 7,608,057 TOTAL EXPENSES 34,102,070 8,514,108 6,563,503 (167,543 ) 49,012,138 INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES (33,920,242 ) (8,469,554 ) 45,980,012 - 3,590,216 EQUITY IN INCOME OF SUBSIDIARIES 37,510,458 46,497,731 - (84,008,189 ) - INCOME BEFORE INCOME TAXES 3,590,216 38,028,177 45,980,012 (84,008,189 ) 3,590,216 INCOME TAX EXPENSE 1,478,617 - - - 1,478,617 NET INCOME 2,111,599 38,028,177 45,980,012 (84,008,189 ) 2,111,599 Preferred stock dividends 2,153,333 - - - 2,153,333 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (41,734 ) $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ (41,734 )
Schedule of condensed consolidating statements of cash flows	For the three months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (4,062,503 ) $ 8,532,330 $ 7,403,303 $ (15,935,633 ) $ (4,062,503 ) Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (7,672,513 ) (8,263,120 ) - 15,935,633 - Change in fair value of life insurance policies - (3,609,194 ) (16,572,538 ) - (20,181,732 ) Amortization of deferred financing and issuance costs 2,075,632 134,445 134,464 - 2,344,541 Deferred income taxes (2,764,243 ) - - - (2,764,243 ) Preferred stock dividends payable 333,391 - - - 333,391 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (7,627,000 ) - (7,627,000 ) Other assets (38,552,777 ) 51,740,361 330,547 (13,415,694 ) 102,437 Increase (decrease) in operating liabilities: Due to related party 807,511 (10,940 ) (800,000 ) - (3,429 ) Accounts payable and accrued expenses 693,285 (844,072 ) (264,684 ) - (415,471 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (49,142,217 ) 47,679,810 (17,395,908 ) (13,415,694 ) (32,274,009 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (25,199,692 ) - (25,199,692 ) Carrying value of matured life insurance policies - 505,000 1,828,039 - 2,333,039 Proceeds from Secured MCA advances - - 826,621 - 826,621 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 505,000 (22,545,032 ) - (22,040,032 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 56,887,491 - 56,887,491 Payments for issuance of senior debt - (3,937,907 ) - (3,937,907 ) Payments for redemption of Series I Secured Notes - (6,815,406 ) - - (6,815,406 ) Proceeds from issuance of L Bonds 30,271,873 - - - 30,271,873 Payments for issuance and redemption of L Bonds (19,752,717 ) - - - (19,752,717 ) Payments to restricted cash - 1,807,105 38,533,296 - 40,340,401 Issuance of member capital - 37,959,462 (51,375,156 ) 13,415,694 -- Issuance of common stock 30 - - - 30 Proceeds from issuance of preferred stock 25,211,870 - - - 25,211,870 Payments for issuance and redemption of preferred stock (1,291,420 ) - - - (1,291,420 ) Payments of preferred stock dividends (3,548,165 ) - - - (3,548,165 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 30,891,471 32,951,161 40,107,724 13,415,694 117,366,050 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (18,250,746 ) 81,135,971 166,784 63,052,009 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 49,632,850 1,451,260 1,209,362 - 52,293,472 END OF THE PERIOD $ 31,382,104 $ 82,587,231 $ 1,376,146 $ - $ 115,345,481 For the three months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ (1,956,187 ) $ 8,697,549 $ 11,356,703 $ (20,054,252 ) $ (1,956,187 ) Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (8,692,924 ) (11,361,328 ) - 20,054,252 - Change in fair value of life insurance policies - - (21,073,226 ) - (21,073,226 ) Amortization of deferred financing and issuance costs 2,072,879 81,849 611,015 - 2,765,743 Deferred income taxes (1,428,130 ) - - - (1,428,130 ) Preferred stock dividends payable 333,565 - - - 333,565 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - 700,000 - 700,000 Other assets (54,428,152 ) (54,272,589 ) - 109,120,577 419,836 Increase (decrease) in operating liabilities: Due to related party (64,249 ) (16,700 ) - - (80,949 ) Accounts payable and other accrued expenses 155,980 2,172,227 (5,545,197 ) - (3,216,990 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (64,007,218 ) (54,698,992 ) (13,950,705 ) 109,120,577 (23,536,338 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (25,770,326 ) - (25,770,326 ) Carrying value of matured life insurance policies - - 1,078,889 - 1,078,889 Investment in Secured MCA advances - - (1,965,896 ) (1,965,896 ) Proceeds from Secured MCA advances - - 220,911 - 220,911 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (26,436,422 ) - (26,436,422 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - (10,761,048 ) - (10,761,048 ) Payments for redemption of Series I Secured Notes - (541,275 ) - - (541,275 ) Proceeds from issuance of L Bonds 64,350,430 - - - 64,350,430 Payments for issuance and redemption of L Bonds (14,373,447 ) - - - (14,373,447 ) Payments to restricted cash - 486,283 (5,013,515 ) - (4,527,232 ) Issuance of member capital - 52,304,345 56,816,232 (109,120,577 ) - Issuance of common stock 31,515 - - - 31,515 Proceeds from issuance of preferred stock 20,786,332 - - - 20,786,332 Payments for issuance and redemption of preferred stock (2,485,304 ) - (71,555 ) - (2,556,859 ) Payments of preferred stock dividends (1,041,178 ) - - - (1,041,178 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 67,268,348 52,249,353 40,970,114 (109,120,577 ) 51,367,238 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,261,130 (2,449,639 ) 582,987 - 1,394,478 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 10,051,621 6,822,484 505,245 - 17,379,350 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828 For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (9,801,856 ) $ 26,372,828 $ 27,209,521 $ (53,582,349 ) $ (9,801,856 ) Adjustments to reconcile net loss to net cash flows from operating activities: Equity of subsidiaries (24,013,243 ) (29,569,106 ) - 53,582,349 - Change in fair value of life insurance policies - (4,803,015 ) (44,498,052 ) - (49,301,067 ) Amortization of deferred financing and issuance costs 4,931,441 208,829 1,368,422 - 6,508,692 Deferred income taxes (6,481,917 ) - - - (6,481,917 ) Preferred stock dividends payable 1,034,139 - - - 1,034,139 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (9,252,000 ) - (9,252,000 ) Other assets (65,691,037 ) (3,794,004 ) 788,726 69,667,082 970,767 Increase (decrease) in operating liabilities: Due to related party 1,897,406 (10,620 ) (1,900,000 ) - (13,214 ) Accounts payable and other accrued expenses 2,331,255 (2,407,918 ) 1,917,279 - 1,840,616 NET CASH FLOWS USED IN OPERATING ACTIVITIES (95,793,812 ) (14,003,006 ) (24,366,104 ) 69,667,082 (64,495,840 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (67,321,363 ) - (67,321,363 ) Carrying value of matured life insurance policies - 1,256,576 6,460,271 - 7,716,847 Investment in Secured MCA advances - - (39,671 ) - (39,671 ) Proceeds from Secured MCA advances - - 2,250,323 - 2,250,323 NET CASH FLOWS USED IN INVESTING ACTIVITIES - 1,256,576 (58,650,440 ) - (57,393,864 ) CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of senior credit facilities - - 49,787,954 - 49,787,954 Payments for issuance of senior debt (1,076,118 ) (4,052,201 ) - (5,128,319 ) Payments for redemption of Series I Secured Notes - (16,613,667 ) - - (16,613,667 ) Proceeds from issuance of L Bonds 87,016,343 - - - 87,016,343 Payments for issuance and redemption of L Bonds (58,949,880 ) - - - (58,949,880 ) Payments to restricted cash - (529,472 ) 32,536,838 - 32,007,366 Issuance of member capital - 64,191,966 5,475,116 (69,667,082 ) - Payments for issuance and redemption of common stock (1,603,526 ) - - - (1,603,526 ) Proceeds from issuance of preferred stock 86,692,811 - - - 86,692,811 Payments for issuance and redemption of preferred stock (7,013,857 ) - - - (7,013,857 ) Payments of preferred stock dividends (7,447,022 ) - - - (7,447,022 ) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 98,694,869 45,972,709 83,747,707 (69,667,082 ) 158,748,203 NET INCREASE IN CASH AND CASH EQUIVALENTS 2,901,057 33,226,279 731,163 - 36,858,499 CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 28,481,047 49,360,952 644,983 - 78,486,982 END OF THE PERIOD $ 31,382,104 $ 82,587,231 $ 1,376,146 $ - $ 115,345,481 For the nine months ended Parent Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 2,111,599 $ 38,028,177 $ 45,980,012 $ (84,008,189 ) $ 2,111,599 Adjustments to reconcile net income to net cash flows from operating activities: Equity of subsidiaries (37,510,459 ) (46,497,730 ) - 84,008,189 - Change in fair value of life insurance policies - - (53,846,155 ) - (53,846,155 ) Amortization of deferred financing and issuance costs 5,982,802 (1,364,614 ) 1,459,717 - 6,077,905 Deferred income taxes 1,478,617 - - - 1,478,617 Preferred stock dividends payable 663,614 - - - 663,614 (Increase) decrease in operating assets: Life insurance policy benefits receivable - - (6,129,022 ) (6,129,022 ) Other assets (114,885,990 ) (92,168,163 ) - 206,436,523 (617,630 ) Increase in operating liabilities: Due to related party (2,867,225 ) (15,505 ) 2,700,000 - (182,730 ) Accounts payable and accrued expenses 2,396,503 2,889,525 (7,310,262 ) - (2,024,234 ) NET CASH FLOWS USED IN OPERATING ACTIVITIES (142,630,539 ) (99,128,310 ) (17,145,710 ) 206,436,523 (52,468,036 ) CASH FLOWS FROM INVESTING ACTIVITIES Investment in life insurance policies - - (74,470,362 ) - (74,470,362 ) Carrying value of matured life insurance policies - - 7,381,132 - 7,381,132 Investment in Secured MCA advances - - (7,613,310 ) - (7,613,310 ) Proceeds from Secured MCA advances - - 1,246,703 - 1,246,703 NET CASH FLOWS USED IN INVESTING ACTIVITIES - - (73,455,837 ) - (73,455,837 ) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings on senior credit facilities - - 6,238,952 - 6,238,952 Payments for redemption of Series I Secured Notes - (6,264,018 ) - - (6,264,018 ) Proceeds from issuance of L Bonds 135,477,090 - - - 135,477,090 Payments for issuance and redemption of L Bonds (37,036,922 ) - - - (37,036,922 ) Payments to restricted cash - (2,335,768 ) (11,010,358 ) - (13,346,126 ) Issuance of common stock 244,185 - - - 244,185 Proceeds from issuance of preferred stock 31,215,986 - 71,555 - 31,287,541 Payments for issuance and redemption of preferred stock (4,095,878 ) - (78,895 ) - (4,174,773 ) Payments of preferred stock dividends (2,153,333 ) - - - (2,153,333 ) Issuance of member capital - 110,118,219 96,318,304 (206,436,523 ) - NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 123,651,128 101,518,433 91,539,558 (206,436,523 ) 110,272,596 NET INCREASE IN CASH AND CASH EQUIVALENTS (18,979,411 ) 2,390,123 938,011 - (15,651,277 ) CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD 32,292,162 1,982,722 150,221 - 34,425,105 END OF THE PERIOD $ 13,312,751 $ 4,372,845 $ 1,088,232 $ - $ 18,773,828

Concentrations (Tables)

Concentrations (Tables)	9 Months Ended
	Sep. 30, 2017
Concentrations [Abstract]
Summary of the face value of insurance contracts	Life insurance company September 30, December 31, 2017 2016 John Hancock 14.92 % 14.36 % AXA Equitable 12.24 % 13.42 % Lincoln National 11.27 % 11.22 %
Summary of the number of insurance contracts	State of Residence September 30, December 31, 2017 2016 Florida 19.76 % 19.42 % California 19.06 % 20.72 %

Nature of Business and Summar38

Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Nature of Business and Summary of Significant Accounting Policies (Textual)
Other assets	$ 3,824,200	$ 4,688,103

Restrictions on Cash (Details)

Restrictions on Cash (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Restrictions on Cash (Textual)
Restricted cash accounts	$ 5,819,000	$ 37,827,000

Investment in Life Insurance 40

Investment in Life Insurance Policies (Details)	Sep. 30, 2017USD ($)Policies	Dec. 31, 2016USD ($)Policies
Summary of policies according to estimated life expectancy dates
Number of Policies, 2017 | Policies	2	11
Number of Policies, 2018 | Policies	9	23
Number of Policies, 2019 | Policies	57	55
Number of Policies, 2020 | Policies	94	93
Number of Policies, 2021 | Policies	88	86
Number of Policies, 2022 | Policies	91	66
Number of Policies, 2023 | Policies	84	64
Number of Policies, Thereafter | Policies	425	292
Number of Policies, Totals | Policies	850	690
Estimated Fair Value, 2017	$ 2,016,000	$ 14,837,000
Estimated Fair Value, 2018	13,222,000	30,830,000
Estimated Fair Value, 2019	63,926,000	57,556,000
Estimated Fair Value, 2020	88,281,000	85,414,000
Estimated Fair Value, 2021	87,710,000	73,825,000
Estimated Fair Value, 2022	78,940,000	56,909,000
Estimated Fair Value, 2023	63,439,000	44,953,000
Estimated Fair Value, Thereafter	222,564,000	146,868,000
Estimated Fair Value, Totals	620,098,000	511,192,000
Face Value, 2017	2,125,000	16,939,000
Face Value, 2018	16,564,000	42,564,000
Face Value, 2019	88,967,000	88,858,000
Face Value, 2020	148,908,000	159,814,000
Face Value, 2021	162,525,000	158,744,000
Face Value, 2022	174,699,000	147,222,000
Face Value, 2023	168,821,000	128,581,000
Face Value, Thereafter	860,018,000	618,953,000
Face Value, Totals	$ 1,622,629,000	$ 1,361,675,000

Investment in Life Insurance 41

Investment in Life Insurance Policies (Details 1) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of reconciliation of gain on life insurance policies
Change in estimated probabilistic cash flows		$ 12,568,000	$ 12,955,000	$ 40,033,000	$ 34,078,000
Unrealized gain on acquisitions		7,217,000	11,668,000	25,863,000	29,509,000
Premiums and other annual fees		(13,174,000)	(11,784,000)	(36,124,000)	(29,225,000)
Change in discount rates	[1]	7,987,000	(378,000)	12,130,000	460,000
Change in life expectancy evaluation	[2]	(5,370,000)	(2,285,000)	(13,974,000)	(3,199,000)
Face value of matured policies		9,747,000	5,300,000	39,657,000	34,367,000
Fair value of matured policies		(4,554,000)	(1,966,000)	(22,468,000)	(14,383,000)
Gain on life insurance policies, net		$ 14,421,000	$ 13,510,000	$ 45,117,000	$ 51,607,000
[1]	The discount rate applied to estimate the fair value of the portfolio of life insurance policies we own was 10.54% as of September 30, 2017, compared to 10.96% as of December 31, 2016 and 11.07% as of September 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.

Investment in Life Insurance 42

Investment in Life Insurance Policies (Details 2)	Sep. 30, 2017USD ($)
Schedule of estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies
Three months ending December 31, 2017	$ 18,502,000
2,018	56,518,000
2,019	62,503,000
2,020	70,315,000
2,021	79,109,000
2,022	89,011,000
Total	375,958,000
Premiums [Member]
Schedule of estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies
Three months ending December 31, 2017	16,915,000
2,018	54,931,000
2,019	60,916,000
2,020	68,728,000
2,021	77,522,000
2,022	87,424,000
Total	366,436,000
Servicing [Member]
Schedule of estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies
Three months ending December 31, 2017	1,587,000
2,018	1,587,000
2,019	1,587,000
2,020	1,587,000
2,021	1,587,000
2,022	1,587,000
Total	$ 9,522,000

Investment in Life Insurance 43

Investment in Life Insurance Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Investment in Life Insurance Policies (Textual)
Life insurance policies, internal benchmark to group the policies			$ 1,000,000
Benefits recognized from insurance policy	$ 9,747,000	$ 5,300,000	39,657,000	$ 34,367,000
Carrying value of life insurance policy	2,333,000	1,078,000	7,716,000	7,381,000
Realized gains from life insurance policy	$ 7,414,000	$ 4,222,000	$ 31,941,000	$ 26,986,000
Life insurance policies [Member]
Investment in Life Insurance Policies (Textual)
Discount rate applied to portfolio			10.54%	11.07%	10.96%

Fair Value Definition and Hie44

Fair Value Definition and Hierarchy (Details) - Life Insurance Policies [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of reconciliation of investments in life insurance policies
Beginning balance	$ 577,050,000	$ 431,820,000	$ 511,192,000	$ 356,650,000
Purchases	25,199,000	25,770,000	67,321,000	74,470,000
Maturities (initial cost basis)	(2,333,000)	(1,078,000)	(7,716,000)	(7,381,000)
Net change in fair value	20,182,000	21,073,000	49,301,000	53,846,000
Ending balance	$ 620,098,000	$ 477,585,000	$ 620,098,000	$ 477,585,000

Fair Value Definition and Hie45

Fair Value Definition and Hierarchy (Details 1) - Life insurance policies [Member] - USD ($)		9 Months Ended		12 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summary of inputs utilized in estimating fair value of portfolio life insurance policies
Weighted-average age of insured, years *	[1]	81 years 8 months 12 days		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		$ 1,909,000		$ 1,973,000
Discount rate		10.54%	11.07%	10.96%
[1]	Weighted average by face amount of policy benefits

Fair Value Definition and Hie46

Fair Value Definition and Hierarchy (Details 2) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Minus 8 months [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	$ 83,536,000	$ 69,253,000
Minus 4 months [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	41,411,000	34,601,000
Plus 4 months [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	(40,893,000)	(33,846,000)
Plus 8 months [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	(81,069,000)	(67,028,000)
Minus 2% [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	65,263,000	53,764,000
Minus 1% [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	31,222,000	25,728,000
Plus 1% [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	(28,708,000)	(23,668,000)
Plus 2% [Member]
Summary of change in fair value of the investment in life insurance policies
Investment in life insurance policies	$ (55,167,000)	$ (45,491,000)

Fair Value Definition and Hie47

Fair Value Definition and Hierarchy (Details 3)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Summary of outstanding warrants
Warrants issued	16,000
September 2014 [Member]
Summary of outstanding warrants
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 Hie48

Fair Value Definition and Hierarchy (Details Textual)	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)
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 L Bonds	$ 434,374,000	$ 434,374,000
Debt instruments face value	$ 424,778,000	$ 424,778,000
Weighted average market interest rate	6.68%	6.68%
Secured loan outstanding balance		$ 2,001,000
Loan loss reserve		$ 1,506,000
Commercial paper rate, description		12-Month LIBOR
Impairment charge	$ 28,000	$ 906,000

Credit Facility - Autobahn Fu49

Credit Facility - Autobahn Funding Company LLC (Details)	Sep. 12, 2017USD ($)
Credit Facility - Autobahn Funding Company LLC (Textual)
Senior credit facility	$ 105,000,000

Credit Facility - LNV Corpora50

Credit Facility - LNV Corporation (Details) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 27, 2017	Sep. 30, 2017	Dec. 31, 2016
Credit Facility - LNV Corporation (Textual)
Senior credit facility	$ 300,000,000
Maturity date	Sep. 27, 2029
Interest rate description	Interest will accrue on amounts borrowed under the Amended and Restated 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) 7.50% per annum. The effective rate at September 30, 2017 was 7.52%. The interest rate effective October 1, 2017 was 9.31%.
Outstanding amount of credit facility		$ 212,513,000	$ 162,725,000
Portfolio pledged, percentage		86.60%

Series I Secured Notes (Details

Series I Secured Notes (Details)	Sep. 08, 2017USD ($)
Series I Secured Notes (Textual)
Redeemed aggregate value	$ 6,815,000

L Bonds (Details)

L Bonds (Details) - Renewable Secured Debentures [Member]	Sep. 30, 2017USD ($)
Contractual Maturities
Three months ending December 31, 2017	$ 17,059,000
2,018	108,717,000
2,019	133,174,000
2,020	63,523,000
2,021	28,703,000
Thereafter	73,602,000
Total	424,778,000
Unamortized Deferred Financing Costs
Three months ending December 31, 2017	104,000
2,018	1,652,000
2,019	4,294,000
2,020	2,763,000
2,021	1,350,000
Thereafter	4,299,000
Total	$ 14,462,000

L Bonds (Details Textual)

L Bonds (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 01, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Jan. 31, 2015
L Bonds (Textual)
Debentures offer for sale		$ 424,778,000		$ 424,778,000
Weighted average market interest rate		6.68%		6.68%
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		7.35%		7.35%		7.23%
Amount outstanding under L bonds		$ 424,778,000		$ 424,778,000		$ 387,067,000
Amortization of deferred issuance costs		$ 2,076,000	$ 2,073,000	4,931,000	$ 5,362,000
Future expected amortization of deferred financing costs				$ 14,462,000
Renewable Secured Debentures [Member] | Minimum [Member]
L Bonds (Textual)
Amortization period of deferred financing cost	6 months
Renewable Secured Debentures [Member] | Maximum [Member]
L Bonds (Textual)
Amortization period of deferred financing cost	1 year

Series A Convertible Preferre54

Series A Convertible Preferred Stock (Details) - USD ($)	9 Months Ended		12 Months Ended	15 Months Ended
	Sep. 30, 2017		Dec. 31, 2016	Sep. 30, 2012
Series A Convertible Preferred Stock (Textual)
Preferred stock dividends paid	$ (7,447,022)	[1]	$ (3,537,288)
Series A preferred stock outstanding	99,080		59,183
Initial public offering [Member]
Series A Convertible Preferred Stock (Textual)
Aggregate shares of common stock, Warrants	16,000
Exercise price	$ 15.63
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 shares issued in conversion of dividends	544,000
Preferred stock dividends paid	$ 3,808,000
Convertible preferred stock, shares issued upon conversion	696,000
Conversion of stock, shares converted into common stock	522,000
Series A preferred stock outstanding	2,695,000
Series A preferred stock issuance costs	$ 2,838,000
Aggregate shares of common stock, Warrants	416,000
Fair value of warrants	$ 428,000
Exercise price	$ 12.50
Preferred stock redemption terms	The terms of the Series A permit us to redeem Series A shares at a price equal to 110% of their liquidation preference ($7.50 per share) at any time.
Redemption payment per share	$ 8.25
[1]	Preferred stock dividends were paid from additional paid-in capital until the latter was exhausted in the second quarter of 2017. Subsequent dividends were charged against the carrying values of the respective series of the Company's preferred stock, resulting in a difference between the Company's preferred stock book balances and liquidation preference of the respective series' of preferred stock.

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details) - Redeemable Preferred Stock [Member]	1 Months Ended	9 Months Ended
	Nov. 30, 2015Tradingdays$ / sharesshares	Sep. 30, 2017USD ($)shares
Redeemable Preferred Stock (Textual)
Company offering shares of convertible redeemable preferred stock | shares	100,000
Offering price of series redeemable preferred stock	$ 1,000
Dividend rate of convertible redeemable preferred stock	7.00%
Redeemable preferred stock par value per share	$ 1,000
Number of trading days | Tradingdays	20
Minimum conversion price	$ 15
Preferred stock redemption percentage	15.00%
Redeemable preferred stock, shares issued | shares		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) - Series 2 Redeemable Preferred Stock [Member]	9 Months Ended
	Sep. 30, 2017USD ($)Tradingdays$ / sharesshares
Series 2 Redeemable Preferred Stock (Textual)
Company offering shares of convertible redeemable preferred stock | shares	150,000
Offering price of series redeemable preferred stock	$ 1,000
Dividend rate of convertible redeemable preferred stock	7.00%
Redeemable preferred stock par value per share	$ 1,000
Number of trading days | Tradingdays	20
Minimum conversion price	$ 12.75
Preferred stock redemption percentage	10.00%
Preferred stock redemption terms	We may, at our option, call and redeem shares of RPS 2 at a price equal to their liquidation preference (subject to a minimum redemption price, in the event of redemptions occurring less than one year after issuance, of 107% of the stated value of the shares being redeemed).
Redeemable preferred stock, shares issued | shares	48,316
Proceeds from redeemable preferred stock | $	$ 48,316,000
Redeemable preferred stock for sale | $	$ 2,322,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Deferred:
Federal	$ (2,095,000)	$ (1,082,000)	$ (4,912,000)	$ 1,121,000
State	(669,000)	(346,000)	(1,570,000)	358,000
Total income tax expense (benefit)	$ (2,764,000)	$ (1,428,000)	$ (6,482,000)	$ 1,479,000

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Income Taxes (Textual)
Current income tax liability	$ 0	$ 0
Valuation allowance	$ 2,164,000	$ 2,164,000

Common Stock (Details)

Common Stock (Details) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2017
Common Stock (Textual)
Net proceeds		$ (1,603,526)
Initial public offering [Member]
Common Stock (Textual)
Exercise price		$ 15.63
Warrants issued		16,000
Warrants term		2 years
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	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Stock Option [Member]
Outstanding stock options:
Beginning Balance	1,582,399	1,053,615
Granted year-to-date	268,400	630,850
Vested year-to-date
Exercised year-to-date	(92,000)
Forfeited year-to-date	(244,434)	(102,066)
Ending Balance	1,514,365	1,582,399
Vested [Member]
Outstanding stock options:
Beginning Balance	738,065	483,703
Granted year-to-date	40,100	22,500
Vested year-to-date	218,218	251,788
Exercised year-to-date	(92,000)
Forfeited year-to-date	(142,119)	(19,926)
Ending Balance	762,264	738,065
Un-vested [Member]
Outstanding stock options:
Beginning Balance	844,334	569,912
Granted year-to-date	228,300	608,350
Vested year-to-date	(218,218)	(251,788)
Exercised year-to-date
Forfeited year-to-date	(102,315)	(82,140)
Ending Balance	752,101	844,334

Stock Incentive Plan (Details 1

Stock Incentive Plan (Details 1) - Stock Appreciation Rights (SARs) [Member] - shares	9 Months Ended	12 Months Ended
	Sep. 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 year-to-date
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	38,197
Forfeited year-to-date
Ending Balance	148,868	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	(38,197)
Forfeited year-to-date
Ending Balance	131,604	133,127

Stock Incentive Plan (Details T

Stock Incentive Plan (Details Textual)	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)$ / pureshares	Sep. 30, 2017USD ($)$ / shares$ / pureshares
Stock Incentive Plan (Textual)
Compensation expense related to unvested options not yet recognized | $	$ 488,000	$ 488,000
Compensation expense related to unvested options, period of recognition		3 years
Compensation expense in 2017 | $		$ 103,000
Compensation expense in 2018 | $		267,000
Compensation expense in 2019 | $		103,000
Compensation expense in 2020 | $		$ 15,000
Options vesting period		3 years
Other accrued expenses | $	307,000	$ 307,000
Employee compensation and benefits expense | $	$ 9,000	$ 303,000
Common Stock [Member]
Stock Incentive Plan (Textual)
Common stock to employees, officers, and directors		1,514,000
Number of options vested		762,000
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	3,000,000
Expected volatility rate		34.90%
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 year-to-date		682,000
Exercised during the year		120,000
Stock Appreciation Rights (SARs) [Member]
Stock Incentive Plan (Textual)
Common stock to employees, officers, and directors		280,472
Number of options vested
Forfeited year-to-date
Strike price	10.07	10.07
Stock Appreciation Rights (SARs) [Member] | Maximum [Member]
Stock Incentive Plan (Textual)
Strike price	10.38	10.38
Stock Appreciation Rights (SARs) [Member] | Minimum [Member]
Stock Incentive Plan (Textual)
Strike price	7.84	7.84
Stock Appreciation Rights (SARs) [Member] | Common Stock [Member]
Stock Incentive Plan (Textual)
Number of options vested		149,000

Other Expenses (Details)

Other Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Expenses Disclosure [Abstract]
Contract Labor	$ 130,041	$ 218,884	$ 311,314	$ 717,111
Marketing	485,510	423,041	1,686,943	1,234,372
Information Technology	410,903	194,653	1,093,011	522,552
Servicing and Facility Fees	276,826	520,235	855,928	680,208
Travel and Entertainment	249,684	272,785	767,958	838,111
Insurance and Regulatory	415,817	452,814	1,239,670	1,107,088
Charitable Contributions	42,093	277,508	462,103	279,682
General and Administrative	760,322	503,292	2,017,690	1,828,933
Other expenses	$ 2,771,196	$ 2,863,212	$ 8,434,617	$ 7,208,057

Commitments (Details)

Commitments (Details)	Sep. 30, 2017USD ($)
Summary of minimum lease payments under amendment lease
Three months ending December 31, 2017	$ 64,000
2,018	266,000
2,019	275,000
2,020	284,000
2,021	293,000
2,022	302,000
2,023	904,000
Total	$ 2,388,000

Commitments (Details Textual)

Commitments (Details Textual)	Sep. 01, 2015ft²	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
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 | $		$ 121,000	$ 102,000	$ 344,000	$ 306,000

Guarantee of L Bonds (Details)

Guarantee of L Bonds (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
A S S E T S
Cash and cash equivalents	$ 115,345,481	$ 52,293,472	$ 78,486,982	$ 18,773,828	$ 17,379,350	$ 34,425,105
Restricted cash	5,819,230		37,826,596
Investment in life insurance policies, at fair value	620,097,938		511,192,354
Secured MCA advances	2,623,657		5,703,147
Life insurance policy benefits receivable	14,597,000		5,345,000
Deferred taxes, net	7,605,919
Other assets	3,824,200		4,688,103
Investment in subsidiaries
TOTAL ASSETS	766,692,052		643,242,182
LIABILITIES
Senior credit facilities	201,978,580		156,064,818
Series I Secured Notes			16,404,836
L Bonds	413,060,517		381,312,587
Accounts payable	3,715,236		2,226,712
Interest and dividends payable	13,521,174		16,160,599
Other accrued expenses	2,792,521		1,676,761
Deferred taxes, net			2,097,371
TOTAL LIABILITIES	635,068,028		575,943,684
STOCKHOLDERS' EQUITY
Member's capital
Convertible preferred stock	19,408,980		19,701,133
Dividends payable aggregate value	96,106,633		59,025,164
Common stock	5,814		5,980
Additional paid-in capital			7,383,515
Accumulated deficit	(28,619,150)		(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	131,624,024		67,298,498
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	766,692,052		643,242,182
Parent [Member]
A S S E T S
Cash and cash equivalents	31,382,104		28,481,047
Restricted cash
Investment in life insurance policies, at fair value
Secured MCA advances
Life insurance policy benefits receivable
Deferred taxes, net	384,546
Other assets	1,883,433		3,854,233
Investment in subsidiaries	519,803,823		429,971,148
TOTAL ASSETS	557,453,906		462,306,428
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds	413,060,517		381,312,587
Accounts payable	1,062,708		853,470
Interest and dividends payable	10,541,613		9,882,133
Other accrued expenses	1,165,044		862,369
Deferred taxes, net			2,097,371
TOTAL LIABILITIES	425,829,882		395,007,930
STOCKHOLDERS' EQUITY
Member's capital
Convertible preferred stock	19,408,980		19,701,133
Common stock	5,814		5,980
Additional paid-in capital			7,383,515
Accumulated deficit	(28,619,150)		(18,817,294)
TOTAL STOCKHOLDERS' EQUITY	131,624,024		67,298,498
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	557,453,906		462,306,428
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	(134,613)		(2,033,592)
Investment in subsidiaries	(905,557,617)		(782,308,185)
TOTAL ASSETS	(905,692,230)		(784,341,777)
LIABILITIES
Senior credit facilities
Series I Secured Notes
L Bonds
Accounts payable
Interest and dividends payable	(1,021)
Other accrued expenses	(133,592)		(2,033,592)
Deferred taxes, net	(134,613)
TOTAL LIABILITIES			(2,033,592)
STOCKHOLDERS' EQUITY
Member's capital	(905,557,617)		(782,308,185)
Convertible preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	(890,302,248)		(782,308,185)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	(905,692,230)		(784,341,777)
Guarantor Subsidiary [Member]
A S S E T S
Cash and cash equivalents	82,587,231	1,451,260	49,360,952	4,372,845	6,822,484	1,982,722
Restricted cash	2,647,121		2,117,649
Investment in life insurance policies, at fair value	45,962,331		41,277,896
Secured MCA advances
Life insurance policy benefits receivable
Deferred taxes, net
Other assets	2,013,796		2,056,822
Investment in subsidiaries	385,753,794		352,337,037
TOTAL ASSETS	518,964,273		447,150,356
LIABILITIES
Senior credit facilities
Series I Secured Notes			16,404,836
L Bonds
Accounts payable	1,259,708		731,697
Interest and dividends payable			3,743,277
Other accrued expenses	1,351,379		544,032
Deferred taxes, net
TOTAL LIABILITIES	2,611,087		21,423,842
STOCKHOLDERS' EQUITY
Member's capital	516,353,186		425,726,514
Convertible preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	508,366,154		425,726,514
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	518,964,273		447,150,356
Non-Guarantor Subsidiaries [Member]
A S S E T S
Cash and cash equivalents	1,376,146	$ 1,209,362	644,983	$ 1,088,232	$ 505,245	$ 150,221
Restricted cash	3,172,109		35,708,947
Investment in life insurance policies, at fair value	574,135,607		469,914,458
Secured MCA advances	2,623,657		5,703,147
Life insurance policy benefits receivable	14,597,000		5,345,000
Deferred taxes, net
Other assets	61,584		810,640
Investment in subsidiaries
TOTAL ASSETS	595,966,103,000		518,127,175
LIABILITIES
Senior credit facilities	201,978,580		156,064,818
Series I Secured Notes
L Bonds
Accounts payable	1,392,820		641,545
Interest and dividends payable	2,980,582		2,535,189
Other accrued expenses	409,690		2,303,952
Deferred taxes, net
TOTAL LIABILITIES	206,761,672		161,545,504
STOCKHOLDERS' EQUITY
Member's capital	389,204,431		356,581,671
Convertible preferred stock
Common stock
Additional paid-in capital
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	381,936,094		356,581,671
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 595,966,103		$ 518,127,175

Guarantee of L Bonds (Details 1

Guarantee of L Bonds (Details 1) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
REVENUE
Policy servicing income	$ 20,000		$ 20,000
Gain on life insurance policies, net	14,421,353	13,509,755	45,117,438	51,606,815
MCA income	100,367	286,225	480,526	654,441
Interest and other income	155,323	124,998	835,009	341,098
TOTAL REVENUE	14,697,043	13,920,978	46,452,973	52,602,354
EXPENSES
Policy servicing fees
Interest expense	13,275,407	10,942,790	38,765,647	29,856,601
Employee compensation and benefits	3,792,096	2,912,463	10,696,455	8,450,168
Legal and professional fees	1,657,090	586,830	3,934,027	3,097,312
Provision for MCA advances	28,000		906,000	400,000
Other expenses	2,771,196	2,863,212	8,434,617	7,208,057
TOTAL EXPENSES	21,523,789	17,305,295	62,736,746	49,012,138
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(6,826,746)	(3,384,317)	(16,283,773)	3,590,216
EQUITY IN INCOME OF SUBSIDIARIES
INCOME (LOSS) BEFORE INCOME TAXES	(6,826,746)	(3,384,317)	(16,283,773)	3,590,216
INCOME TAX EXPENSE	(2,764,243)	(1,428,130)	(6,481,917)	1,478,617
NET INCOME (LOSS)	(4,062,503)	(1,956,187)	(9,801,856)	2,111,599	$ 391,909
Preferred stock dividends	3,548,165	1,041,178	7,447,022	2,153,333
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(7,610,668)	(2,997,365)	(17,248,878)	(41,734)
Eliminations [Member]
REVENUE
Policy servicing income	(105,525)		(291,800)	(13,417)
Gain on life insurance policies, net
MCA income
Interest and other income	(12,104)	(64,249)	(79,300)	(154,126)
TOTAL REVENUE	(117,629)	(64,249)	(371,100)	(167,543)
EXPENSES
Policy servicing fees	(105,525)		(291,800)	(13,417)
Interest expense	(12,104)	(64,249)	(79,300)	(154,126)
Employee compensation and benefits
Legal and professional fees
Provision for MCA advances
Other expenses
TOTAL EXPENSES	(117,629)	(64,249)	(371,100)	(167,543)
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
EQUITY IN INCOME OF SUBSIDIARIES	(15,935,633)	(20,054,252)	(53,582,349)	(84,008,189)
INCOME (LOSS) BEFORE INCOME TAXES	(15,935,633)	(20,054,252)	(53,582,349)	(84,008,189)
INCOME TAX EXPENSE
NET INCOME (LOSS)	(15,935,633)	(20,054,252)	(53,582,349)	(84,008,189)
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(15,935,633)	(20,054,252)	(53,582,349)	(84,008,189)
Parent [Member]
REVENUE
Policy servicing income
Gain on life insurance policies, net
MCA income
Interest and other income	40,044	75,808	194,273	181,828
TOTAL REVENUE	40,044	75,808	194,273	181,828
EXPENSES
Policy servicing fees
Interest expense	9,907,959	8,705,950	27,495,867	23,323,987
Employee compensation and benefits	2,140,675	1,718,683	6,179,032	4,894,006
Legal and professional fees	746,939	263,917	1,524,510	1,642,252
Provision for MCA advances
Other expenses	1,743,730	1,464,498	5,291,881	4,241,825
TOTAL EXPENSES	14,539,303	12,153,048	40,491,290	34,102,070
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(14,499,259)	(12,077,240)	(40,297,017)	(33,920,242)
EQUITY IN INCOME OF SUBSIDIARIES	7,672,513	8,692,923	24,013,243	37,510,458
INCOME (LOSS) BEFORE INCOME TAXES	(6,826,746)	(3,384,317)	(16,283,773)	3,590,216
INCOME TAX EXPENSE	(2,764,243)	(1,428,130)	(6,481,917)	1,478,617
NET INCOME (LOSS)	(4,062,503)	(1,956,187)	(9,801,856)	2,111,599
Preferred stock dividends	3,548,165	1,041,178	(7,447,022)	2,153,333
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	(7,610,668)	(2,997,365)	(17,248,878)	(41,734)
Guarantor Subsidiary [Member]
REVENUE
Policy servicing income	125,525		311,800	13,417
Gain on life insurance policies, net	780,544		4,481,555
MCA income
Interest and other income	(12,115)	30,126	36,895	31,137
TOTAL REVENUE	2,893,954	30,126	4,830,250	44,554
EXPENSES
Policy servicing fees
Interest expense	253,422	554,938	930,837	1,856,909
Employee compensation and benefits	1,413,103	1,038,058	4,163,873	3,151,107
Legal and professional fees	246,691	297,804	687,240	1,308,959
Provision for MCA advances
Other expenses	711,528	803,106	2,244,577	2,197,133
TOTAL EXPENSES	2,624,744	2,693,906	8,026,527	8,514,108
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(269,210)	(2,663,780)	(3,196,277)	(8,469,554)
EQUITY IN INCOME OF SUBSIDIARIES	8,263,120	11,361,329	29,569,106	46,497,731
INCOME (LOSS) BEFORE INCOME TAXES	8,532,330	8,697,549	26,372,828	38,028,177
INCOME TAX EXPENSE
NET INCOME (LOSS)	8,532,330	8,697,549	26,372,828	38,028,177
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	8,532,330	8,697,549	26,372,828	38,028,177
Non-Guarantor Subsidiaries [Member]
REVENUE
Policy servicing income
Gain on life insurance policies, net	11,640,809	13,509,755	40,365,883	51,606,815
MCA income	100,367	286,225	480,526	654,441
Interest and other income	139,498	83,313	683,141	282,259
TOTAL REVENUE	11,880,674	13,879,293	41,799,550	52,543,515
EXPENSES
Policy servicing fees	105,525		291,800	13,417
Interest expense	3,126,130	1,746,151	10,418,243	4,829,831
Employee compensation and benefits	238,318	155,722	353,550	405,055
Legal and professional fees	663,460	25,109	1,722,277	146,101
Provision for MCA advances	28,000		906,000
Other expenses	315,938	595,608	898,159	1,169,099
TOTAL EXPENSES	4,477,371	2,522,590	14,590,029	6,563,503
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	7,403,303	11,356,703	27,209,521	45,980,012
EQUITY IN INCOME OF SUBSIDIARIES
INCOME (LOSS) BEFORE INCOME TAXES	7,403,303	11,356,703	27,209,521	45,980,012
INCOME TAX EXPENSE
NET INCOME (LOSS)	7,403,303	11,356,703	27,209,521	45,980,012
Preferred stock dividends
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 7,403,303	$ 11,356,703	$ 27,209,521	$ 45,980,012

Guarantee of L Bonds (Details 2

Guarantee of L Bonds (Details 2) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (4,062,503)	$ (1,956,187)	$ (9,801,856)	$ 2,111,599	$ 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	(20,181,732)	(21,073,226)	(49,301,067)	(53,846,155)
Amortization of deferred financing and issuance costs	2,344,541	2,765,743	6,508,692	6,077,905
Deferred income taxes	(2,764,243)	(1,428,130)	(6,481,917)	1,478,617
Preferred stock dividends payable	333,391	333,565	1,034,139	663,614
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(7,627,000)	700,000	(9,252,000)	(6,129,022)
Other assets	102,437	419,836	970,767	(617,630)
Increase (decrease) in operating liabilities:
Due to related party	(3,429)	(80,949)	(13,214)	(182,730)
Accounts payable and other accrued expenses	(415,471)	(3,216,990)	1,840,616	(2,024,234)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(32,274,009)	(23,536,338)	(64,495,840)	(52,468,036)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(25,199,692)	(25,770,326)	(67,321,363)	(74,470,362)
Carrying value of matured life insurance policies	2,333,039	1,078,889	7,716,847	7,381,132
Investment in Secured MCA advances		(1,965,896)	(39,671)	(7,613,310)
Proceeds from Secured MCA advances	826,621	220,911	2,250,323	1,246,703
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(22,040,032)	(26,436,422)	(57,393,864)	(73,455,837)
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayment of senior credit facilities	56,887,491	(10,761,048)	49,787,954	6,238,952
Payments for issuance of senior debt	(3,937,907)		(5,128,319)
Payments for redemption of Series I Secured Notes	(6,815,406)	(541,275)	(16,613,667)	(6,264,018)
Proceeds from issuance of L Bonds	30,271,873	64,350,430	87,016,343	135,477,090
Payments for issuance and redemption of L Bonds	(19,752,717)	(14,373,447)	(58,949,880)	(37,036,922)
Payments to restricted cash	40,340,401	(4,527,232)	32,007,366	(13,346,126)
Issuance of common stock	30	31,515		244,185
Issuance of member capital
Payments for issuance and redemption of common stock			(1,603,526)
Proceeds from issuance of preferred stock	25,211,870	20,786,332	86,692,811	31,287,541
Payments for issuance and redemption of preferred stock	(1,291,420)	(2,556,859)	(7,013,857)	(4,174,773)
Payment of preferred stock dividends	(3,548,165)	(1,041,178)	(7,447,022)	(2,153,333)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	117,366,050	51,367,238	158,748,203	110,272,596
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	63,052,009	1,394,478	36,858,499	(15,651,277)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	52,293,472	17,379,350	78,486,982	34,425,105	34,425,105
END OF PERIOD	115,345,481	18,773,828	115,345,481	18,773,828	78,486,982
Eliminations [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(15,935,633)	(20,054,252)	(53,582,349)	(84,008,189)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	15,935,633	20,054,252	53,582,349	84,008,189
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	(13,415,694)	109,120,577	69,667,082	206,436,523
Increase (decrease) in operating liabilities:
Due to related party
Accounts payable and other accrued expenses
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(13,415,694)	109,120,577	69,667,082	206,436,523
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 repayment 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 common stock
Issuance of member capital	13,415,694	(109,120,577)	69,667,082	(206,436,523)
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	13,415,694	(109,120,577)	69,667,082	(206,436,523)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD
END OF PERIOD
Parent [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(4,062,503)	(1,956,187)	(9,801,856)	2,111,599
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	(7,672,513)	(8,692,923)	(24,013,243)	(37,510,458)
Change in fair value of life insurance policies
Amortization of deferred financing and issuance costs	2,075,632	2,072,879	4,931,441	5,982,802
Deferred income taxes	(2,764,243)	(1,428,130)	(6,481,917)	1,478,617
Preferred stock dividends payable	333,391	333,565	1,034,139	663,614
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	(38,552,778)	(54,428,152)	(65,691,037)	(114,885,990)
Increase (decrease) in operating liabilities:
Due to related party	807,511	(64,249)	1,897,406	(2,867,225)
Accounts payable and other accrued expenses	693,285	155,980	2,331,255	2,396,503
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(49,142,217,000)	(64,007,218)	(95,793,812)	(142,630,539)
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 repayment of senior credit facilities
Payments for issuance of senior debt
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds	30,271,873	64,350,430	87,016,343	135,477,090
Payments for issuance and redemption of L Bonds	(19,752,717)	(14,373,447)	(58,949,880)	(37,036,922)
Payments to restricted cash
Issuance of common stock	30	31,515		244,185
Issuance of member capital
Payments for issuance and redemption of common stock			(1,603,526)
Proceeds from issuance of preferred stock	25,211,870	20,786,332	86,692,811	31,215,986
Payments for issuance and redemption of preferred stock	(1,291,420)	(2,485,304)	(7,013,857)	(4,095,878)
Payment of preferred stock dividends	(3,548,165)	(1,041,178)	(7,447,022)	(2,153,333)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	30,891,471	67,268,348	98,694,869	123,651,128
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(18,250,746)	3,261,130	2,901,057	(18,979,411)
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	49,632,850	10,051,621	28,481,047	32,292,162	32,292,162
END OF PERIOD	31,382,104	13,312,751	31,382,104	13,312,751	28,481,047
Guarantor Subsidiary [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	8,532,330	8,697,549	26,372,828	38,028,177
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	(8,263,120)	(11,361,329)	(29,569,106)	(46,497,731)
Change in fair value of life insurance policies	(3,609,194)		(4,803,015)
Amortization of deferred financing and issuance costs	134,445	81,849	208,829	(1,364,614)
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	51,740,361	(54,272,589)	(3,794,004)	(92,168,163)
Increase (decrease) in operating liabilities:
Due to related party	(10,940)	(16,700)	(10,620)	(15,505)
Accounts payable and other accrued expenses	(844,072)	2,172,227	(2,407,918)	2,889,525
NET CASH FLOWS USED IN OPERATING ACTIVITIES	47,679,810	(54,698,992)	(14,003,006)	(99,128,310)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies	505,000		1,256,576
Investment in Secured MCA advances
Proceeds from Secured MCA advances
NET CASH FLOWS USED IN INVESTING ACTIVITIES	505,000		1,256,576
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayment of senior credit facilities
Payments for issuance of senior debt			(1,076,118)
Payments for redemption of Series I Secured Notes	(6,815,406)	(541,275)	(16,613,667)	(6,264,018)
Proceeds from issuance of L Bonds
Payments for issuance and redemption of L Bonds
Payments to restricted cash	1,807,105	486,283	(529,472)	(2,335,768)
Issuance of common stock
Issuance of member capital	37,959,462	52,304,345	64,191,966	110,118,219
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	32,951,161	52,249,353	45,972,709	101,518,433
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	81,135,971	(2,449,639)	33,226,279	2,390,123
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	1,451,260	6,822,484	49,360,952	1,982,722	1,982,722
END OF PERIOD	82,587,231	4,372,845	82,587,231	4,372,845	49,360,952
Non-Guarantor Subsidiaries [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	7,403,303	11,356,703	27,209,521	45,980,012
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries
Change in fair value of life insurance policies	(16,572,538)	(21,073,226)	(44,498,052)	(53,846,155)
Amortization of deferred financing and issuance costs	134,464	611,015	1,368,422	1,459,717
Deferred income taxes
Preferred stock dividends payable
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(7,627,000)	700,000	(9,252,000)	(6,129,022)
Other assets	330,547		788,726
Increase (decrease) in operating liabilities:
Due to related party	(800,000)		(1,900,000)	2,700,000
Accounts payable and other accrued expenses	(264,684)	(5,545,197)	1,917,279	(7,310,262)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(17,395,908)	(13,950,705)	(24,366,104)	(17,145,710)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(25,199,692)	(25,770,326)	(67,321,363)	(74,470,362)
Carrying value of matured life insurance policies	1,828,039	1,078,889	6,460,271	7,381,132
Investment in Secured MCA advances		(1,965,896)	(39,671)	(7,613,310)
Proceeds from Secured MCA advances	826,621	220,911	2,250,323	1,246,703
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(22,545,032)	(26,436,422)	(58,650,440)	(73,455,837)
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayment of senior credit facilities	56,887,491	(10,761,048)	49,787,954	6,238,952
Payments for issuance of senior debt	(3,937,907)		(4,052,201)
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	38,533,296	(5,013,515)	32,536,838	(11,010,358)
Issuance of common stock
Issuance of member capital	(51,375,156)	56,816,232	5,475,116	96,318,304
Payments for issuance and redemption of common stock
Proceeds from issuance of preferred stock				71,555
Payments for issuance and redemption of preferred stock		(71,555)		(78,895)
Payment of preferred stock dividends
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	40,107,724	40,970,114	83,747,707	91,539,558
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	166,784	582,987	731,163	938,011
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD	1,209,362	505,245	644,983	150,221	150,221
END OF PERIOD	$ 1,376,146	$ 1,088,232	$ 1,376,146	$ 1,088,232	$ 644,983

Concentrations (Details)

Concentrations (Details)	Sep. 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	14.92%	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	12.24%	13.42%
Lincoln National [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	11.27%	11.22%

Concentrations (Details 1)

Concentrations (Details 1)	Sep. 30, 2017	Dec. 31, 2016
Florida [Member]
Summary of the number of insurance contracts held in specific states exceeding 10% of the total face value held by the Company
Percentage of insurance policies held in specific states	19.76%	19.42%
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	19.06%	20.72%

Concentrations (Details Textual

Concentrations (Details Textual)	9 Months Ended
	Sep. 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 ($)	9 Months Ended
	Sep. 30, 2017	Oct. 09, 2017	Dec. 31, 2016
Subsequent Events (Textual)
Additional principal amount	$ 424,778,000
Redemption of preferred stock	$ 96,106,633		$ 59,025,164
Life insurance benefits, description	Since September 30, 2017, eight policies covering seven individuals have matured. The combined life insurance benefits of these policies were $14,953,000.
Subsequent Event [Member]
Subsequent Events (Textual)
Unpaid dividends annual rate		$ 0.75
Redemption of preferred stock		$ 22,252,000
RPS 2 [Member]
Subsequent Events (Textual)
Additional principal amount	$ 13,037,000
L Bonds [Member]
Subsequent Events (Textual)
Additional principal amount	$ 18,277,000