COVER
COVER | 9 Months Ended |
Sep. 30, 2023 | |
Document Information [Line Items] | |
Document Type | S-1/A |
Entity Registrant Name | Abacus Life, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 85-1210472 |
Entity Address, Address Line One | 2101 Park Center Drive |
Entity Address, Address Line Two | Suite 170 |
Entity Address, City or Town | Orlando |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32835 |
City Area Code | 800 |
Local Phone Number | 561-4148 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Central Index Key | 0001814287 |
Amendment Flag | false |
Entity Primary SIC Number | 6282 |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Jay J. Jackson |
Entity Address, Address Line One | 2101 Park Center Drive |
Entity Address, Address Line Two | Suite 170 |
Entity Address, City or Town | Orlando |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32835 |
City Area Code | 800 |
Local Phone Number | 561-4148 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ 36,649,190 | $ 30,052,823 | $ 102,420 | ||
Prepaid expenses and other current assets | 961,427 | 116,646 | 24,905 | ||
Total current assets | 39,518,757 | 33,282,927 | 194,816 | ||
Property and equipment, net | 261,882 | 18,617 | 22,899 | ||
Intangible assets, net | 31,217,917 | 0 | |||
Goodwill | 140,287,000 | 0 | |||
Operating right-of-use assets | 171,295 | 77,011 | 122,503 | ||
Life settlement policies, at cost | 4,116,499 | 8,716,111 | 0 | ||
Life settlement policies, at fair value | 83,585,374 | 13,809,352 | 0 | ||
Available-for-sale securities, at fair value | 1,000,000 | 1,000,000 | 250,000 | ||
Other investments, at cost | 1,650,000 | 1,300,000 | 1,250,000 | ||
Other non-current assets, at fair value | 890,829 | 0 | |||
Other assets | 998,469 | 0 | |||
Equity securities, at fair value | 1,494,744 | 890,829 | |||
TOTAL ASSETS | 304,301,937 | 59,094,847 | 1,840,218 | ||
CURRENT LIABILITIES: | |||||
Accrued expenses | 636,788 | 0 | |||
Accounts payable | 2,000 | 40,014 | 0 | ||
Operating lease liability, current | 173,799 | 48,127 | 45,107 | ||
Contract liabilities—deposits on pending settlements | 348,836 | 0 | |||
Accrued transaction costs | 0 | 908,256 | 0 | ||
Income taxes payable | 80,573 | 0 | |||
Total current liabilities | 5,457,675 | 1,302,409 | 995,929 | ||
Operating lease liability, noncurrent | 0 | 29,268 | 77,396 | ||
Deferred tax liability | 10,558,687 | 1,363,820 | 0 | ||
Warrant liability | 3,382,000 | 0 | |||
TOTAL LIABILITIES | 138,212,190 | 30,945,150 | 1,073,325 | ||
COMMITMENTS AND CONTINGENCIES | |||||
SHAREHOLDERS' EQUITY | |||||
Class A common stock | 5,037 | 5,037 | |||
Additional paid-in capital | 194,197,741 | 704,963 | 704,963 | ||
(Accumulated deficit) retained earnings | (28,503,752) | 25,487,323 | 205,048 | ||
Accumulated other comprehensive income | 100,175 | 1,052,836 | 0 | ||
Non-controlling interest | 289,248 | 899,538 | (148,155) | ||
Total shareholders' equity | 166,089,747 | 28,149,697 | [1] | 766,893 | [1] |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 304,301,937 | 59,094,847 | 1,840,218 | ||
Class A Common Stock | |||||
SHAREHOLDERS' EQUITY | |||||
Class A common stock | 6,335 | 5,037 | |||
Nonrelated Party | |||||
CURRENT ASSETS: | |||||
Accounts receivable | 960,720 | 10,448 | 0 | ||
CURRENT LIABILITIES: | |||||
Other current liabilities | 3,050,731 | 42,227 | 20,192 | ||
Long-term debt | 82,278,050 | 28,249,653 | 0 | ||
Affiliated Entity | |||||
CURRENT ASSETS: | |||||
Other receivables | 772,545 | 2,904,646 | 0 | ||
CURRENT LIABILITIES: | |||||
Other current liabilities | 5,236 | 263,785 | 930,630 | ||
Related Party | |||||
CURRENT ASSETS: | |||||
Accounts receivable | 174,875 | 198,364 | 67,491 | ||
CURRENT LIABILITIES: | |||||
Long-term debt | 36,535,778 | 0 | |||
Owners | |||||
CURRENT LIABILITIES: | |||||
Other current liabilities | $ 1,159,712 | 0 | |||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | 1,458,740 | 2,599,302 | |||
Accounts receivable | 402,749 | 590,371 | |||
Other receivables | 122,455 | 40,000 | |||
Prepaid expenses | 216,150 | 305,516 | |||
Other current assets | 15,633 | 0 | |||
Total current assets | 2,215,727 | 3,535,189 | |||
Property and equipment, net | 72,218 | 33,303 | |||
Intangible assets, net | 148,933 | 214,071 | |||
Operating right-of-use assets | 300,866 | 367,508 | |||
Other investments, at cost | 1,448 | 16,536 | |||
State security deposits | 206,873 | 206,640 | |||
Certificate of deposit | 262,500 | 918,750 | |||
Other non-current assets, at fair value | 778,933 | 1,509,434 | |||
Other assets | 7,246 | 0 | |||
TOTAL ASSETS | 3,215,812 | 5,291,997 | |||
CURRENT LIABILITIES: | |||||
Accrued expenses | 541,866 | 510,846 | |||
Accounts payable | 36,750 | 0 | |||
Operating lease liability, current | 214,691 | 135,321 | |||
Contract liabilities—deposits on pending settlements | 322,150 | 1,678,791 | |||
Total current liabilities | 1,116,869 | 2,336,815 | |||
Operating lease liability, noncurrent | 87,806 | 232,187 | |||
TOTAL LIABILITIES | 1,204,675 | 2,569,002 | |||
SHAREHOLDERS' EQUITY | |||||
Additional paid-in capital | 80,000 | 80,000 | |||
(Accumulated deficit) retained earnings | 1,927,137 | 2,638,995 | |||
Common units; $10 par value; 400 common units issued and outstanding at December 31, 2022 and 2021 | 4,000 | 4,000 | |||
Total members' equity | 2,011,137 | 2,722,995 | |||
Total shareholders' equity | 2,011,137 | 2,722,995 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,215,812 | 5,291,997 | |||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Affiliated Entity | |||||
CURRENT ASSETS: | |||||
Other assets | 1,448 | 16,536 | |||
CURRENT LIABILITIES: | |||||
Other current liabilities | $ 1,411 | $ 11,857 | |||
[1]Both the number of shares outstanding and their par value have been retrospectively recast for all prior periods presented to reflect the par value of the outstanding stock of Abacus Life Inc. as a result of the successful Business Combination. |
CONDENSED CONSOLIDATE BALANCE S
CONDENSED CONSOLIDATE BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | |
Common stock, shares issued (in shares) | 63,349,823 | 50,639,350 |
Common stock, shares outstanding (in shares) | 63,349,823 | 50,639,350 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 63,349,823 | 50,369,350 |
Common stock, shares outstanding (in shares) | 63,349,823 | 50,369,350 |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Common stock, par value (in dollars per share) | $ 10 | |
Common unit, issued | 400 | |
Common unit, outstanding | 400 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES: | ||||||
Investment Income from life insurance policies held using investment method | $ 1,817,764 | $ 10,629,978 | $ 18,473,597 | $ 24,610,444 | $ 37,828,829 | $ 120,000 |
Change in fair value of life insurance policies (policies held using fair value method) | 17,108,380 | 495,525 | 21,447,464 | 3,801,031 | 5,413,751 | 0 |
Total active management revenue | 18,926,144 | 11,125,503 | 39,921,061 | 28,411,475 | 43,242,581 | 120,000 |
Total revenues | 21,120,930 | 11,507,748 | 42,705,904 | 29,784,048 | 44,713,553 | 1,199,986 |
COST OF REVENUES (excluding depreciation and amortization stated below) | ||||||
Total cost of revenue | 3,364,957 | 1,754,894 | 4,827,907 | 3,840,969 | 6,245,131 | 735,893 |
Gross Profit | 17,755,973 | 9,752,854 | 37,877,997 | 25,943,079 | 38,468,422 | 464,093 |
OPERATING EXPENSES: | ||||||
Sales and marketing | 1,704,154 | 14,905 | 3,116,999 | 1,664,403 | 2,596,140 | 0 |
General and administrative | 9,838,951 | 59,816 | 11,113,382 | 706,523 | 1,066,403 | 101,406 |
(Gain) loss on change in fair value of debt | (2,088,797) | (1,235,032) | 309,865 | (859,519) | 90,719 | 0 |
Unrealized loss (gain) on investments | 306,800 | 246,846 | (491,356) | 1,301,821 | 1,045,623 | 0 |
Other operating expenses | 0 | 493,849 | ||||
Depreciation and amortization | 1,694,853 | 1,071 | 1,696,994 | 3,211 | 4,282 | 2,447 |
Total operating expenses | 11,455,961 | (912,394) | 15,745,884 | 2,816,439 | 4,803,168 | 597,702 |
Operating income (loss) | 6,300,012 | 10,665,248 | 22,132,113 | 23,126,640 | 33,665,255 | (133,609) |
OTHER INCOME (EXPENSE) | ||||||
Loss on change in fair value of warrant liability | (943,400) | 0 | (943,400) | 0 | ||
Interest (expense) | (2,679,237) | 0 | (3,620,695) | 0 | (41,324) | 0 |
Interest income | 63,826 | 0 | 71,283 | 0 | 1,474 | |
Other income (expense) | 20,086 | 42,289 | (1,565) | (199,958) | (347,013) | 0 |
Total other income (expense) | (3,538,725) | 42,289 | (4,494,377) | (199,958) | (388,337) | 0 |
Net income before provision for income taxes | 2,761,287 | 10,707,537 | 17,637,736 | 22,926,682 | 33,276,917 | (133,609) |
Income tax expense | 1,710,315 | 352,081 | 2,238,419 | 648,887 | 889,943 | 0 |
NET INCOME | 1,050,972 | 10,355,456 | 15,399,317 | 22,277,795 | 32,386,975 | (133,609) |
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | 147,611 | 363,452 | (339,692) | 770,093 | 704,699 | (148,155) |
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ 903,361 | $ 9,992,004 | $ 15,739,009 | $ 21,507,702 | $ 31,682,275 | $ 14,546 |
EARNINGS PER SHARE: | ||||||
Earnings per share - basic (in dollars per share) | $ 0.01 | $ 0.2 | $ 0.29 | $ 0.43 | $ 0.63 | $ 0 |
Earnings per share - diluted (in dollars per share) | $ 0.01 | $ 0.2 | $ 0.29 | $ 0.43 | $ 0.63 | $ 0 |
Weighted-average units outstanding - basic (in shares) | 63,349,823 | 50,369,350 | 54,632,826 | 50,369,350 | 50,639,350 | 50,639,350 |
Weighted-average units outstanding - diluted (in shares) | 63,349,823 | 50,369,350 | 54,632,826 | 50,369,350 | 50,639,350 | 50,639,350 |
NET INCOME | $ 1,050,972 | $ 10,355,456 | $ 15,399,317 | $ 22,277,795 | $ 32,386,975 | $ (133,609) |
Other comprehensive income, net of tax: | ||||||
Change in fair value of debt (risk adjusted) | (1,016,034) | (523,083) | (1,248,010) | 1,494,476 | 1,395,829 | 0 |
Comprehensive income before non-controlling interests | 34,938 | 9,832,373 | 14,151,307 | 23,772,271 | 33,782,804 | 0 |
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | 704,699 | |||||
Net and comprehensive income (loss) attributable to non-controlling interests | (91,292) | 124,677 | (635,041) | 1,136,586 | 342,994 | 0 |
Comprehensive income attributable to Abacus Life, Inc. | 126,230 | 9,707,696 | 14,786,348 | 22,635,685 | 32,735,111 | 0 |
Portfolio servicing revenue | ||||||
REVENUES: | ||||||
Revenue | 224,569 | 382,245 | 814,626 | 1,372,573 | 1,470,973 | 1,079,986 |
Originations revenue | ||||||
REVENUES: | ||||||
Revenue | 1,970,217 | 0 | 1,970,217 | 0 | ||
Related Party | Portfolio servicing revenue | ||||||
REVENUES: | ||||||
Revenue | 168,899 | 132,220 | 711,975 | 752,379 | 818,300 | 699,884 |
Related Party | Originations revenue | ||||||
REVENUES: | ||||||
Revenue | 254,517 | 0 | 254,517 | 0 | ||
Nonrelated Party | Portfolio servicing revenue | ||||||
REVENUES: | ||||||
Revenue | 55,670 | 250,025 | 102,651 | 620,194 | 652,672 | 380,102 |
Nonrelated Party | Originations revenue | ||||||
REVENUES: | ||||||
Revenue | $ 1,715,700 | $ 0 | $ 1,715,700 | $ 0 | ||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
REVENUES: | ||||||
Revenue | 25,203,463 | 22,592,144 | ||||
COST OF REVENUES (excluding depreciation and amortization stated below) | ||||||
Total cost of revenue | 16,561,005 | 14,205,341 | ||||
Gross Profit | 8,642,458 | 8,386,803 | ||||
OPERATING EXPENSES: | ||||||
General and administrative | 8,674,425 | 7,439,549 | ||||
Depreciation and amortization | 12,165 | 10,139 | ||||
Total operating expenses | 8,686,590 | 7,449,688 | ||||
Operating income (loss) | (44,132) | 937,115 | ||||
OTHER INCOME (EXPENSE) | ||||||
Interest (expense) | (8,817) | 0 | ||||
Interest income | 2,199 | 11,500 | ||||
Consulting income | 273 | 50,000 | ||||
Total other income (expense) | (6,345) | 61,500 | ||||
Net income before provision for income taxes | (50,477) | 998,615 | ||||
Income tax expense | 2,018 | 1,200 | ||||
NET INCOME | $ (52,495) | $ 997,415 | ||||
EARNINGS PER SHARE: | ||||||
Earnings per share - basic (in dollars per share) | $ 400 | $ 400 | ||||
Earnings per share - diluted (in dollars per share) | $ 400 | $ 400 | ||||
Weighted-average units outstanding - basic (in shares) | 131.24 | 2,493.54 | ||||
Weighted-average units outstanding - diluted (in shares) | 131.24 | 2,493.54 | ||||
NET INCOME | $ (52,495) | $ 997,415 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Originations revenue | ||||||
REVENUES: | ||||||
Revenue | 25,203,463 | 22,592,144 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Related Party | ||||||
COST OF REVENUES (excluding depreciation and amortization stated below) | ||||||
Total cost of revenue | 11,022,535 | 11,527,312 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Related Party | Originations revenue | ||||||
REVENUES: | ||||||
Revenue | 18,153,456 | 17,685,770 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Nonrelated Party | ||||||
COST OF REVENUES (excluding depreciation and amortization stated below) | ||||||
Total cost of revenue | 5,538,470 | 2,678,029 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Nonrelated Party | Originations revenue | ||||||
REVENUES: | ||||||
Revenue | $ 7,050,007 | $ 4,906,374 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Income Statement [Abstract] | ||
Stock-based compensation | $ 4,583,632 | $ 4,583,632 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Total | Class A Common Stock | Common Stock | Common Stock Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non- Controlling Interests | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE Common Stock | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE Additional Paid-In Capital | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE Retained Earnings | |||||||
Beginning balance (in shares) at Dec. 31, 2020 | 50,639,350 | 400 | |||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,300,502 | $ 5,037 | $ 704,963 | $ 590,502 | $ 2,083,796 | $ 4,000 | $ 80,000 | $ 1,999,796 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Distributions | (400,000) | (400,000) | (358,216) | (358,216) | |||||||||||||||
Net Income (Loss) | $ (133,609) | 14,546 | $ (148,155) | 997,415 | 997,415 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 5,000 | 50,639,350 | 50,369,350 | [1] | 400 | ||||||||||||||
Ending balance at Dec. 31, 2021 | $ 766,893 | [1] | $ 5,037 | $ 5,037 | [1] | 704,963 | [1] | 205,048 | [1] | $ 0 | [1] | (148,155) | [1] | 2,722,995 | $ 4,000 | 80,000 | 2,638,995 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Distributions | (2,400,000) | (2,400,000) | |||||||||||||||||
Other Comprehensive Income | 1,494,476 | 1,127,983 | 366,493 | ||||||||||||||||
Net Income (Loss) | 22,277,795 | 21,507,702 | 770,093 | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | [1],[2] | 50,369,350 | |||||||||||||||||
Ending balance at Sep. 30, 2022 | [1],[2] | $ 22,139,164 | $ 5,037 | 704,963 | 19,312,750 | 1,127,983 | 988,431 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 5,000 | 50,639,350 | 50,369,350 | [1] | 400 | ||||||||||||||
Beginning balance at Dec. 31, 2021 | $ 766,893 | [1] | $ 5,037 | $ 5,037 | [1] | 704,963 | [1] | 205,048 | [1] | 0 | [1] | (148,155) | [1] | 2,722,995 | $ 4,000 | 80,000 | 2,638,995 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Distributions | (6,400,000) | (6,400,000) | (659,363) | (659,363) | |||||||||||||||
Other Comprehensive Income | 1,395,829 | 1,052,836 | 342,994 | ||||||||||||||||
Net Income (Loss) | $ 32,386,975 | 31,682,275 | 704,699 | (52,495) | (52,495) | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 50,639,350 | 50,369,350 | 50,639,350 | 50,369,350 | [1] | 400 | |||||||||||||
Ending balance at Dec. 31, 2022 | $ 28,149,697 | [1] | $ 5,037 | $ 5,037 | [1] | 704,963 | [1] | 25,487,323 | [1] | 1,052,836 | [1] | 899,538 | [1] | 2,011,137 | $ 4,000 | 80,000 | 1,927,137 | ||
Beginning balance (in shares) at Jun. 30, 2022 | [2] | 50,369,350 | |||||||||||||||||
Beginning balance at Jun. 30, 2022 | [2] | 12,306,791 | $ 5,037 | 704,963 | 9,320,746 | 1,412,291 | 863,754 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Other Comprehensive Income | (523,083) | 0 | (284,308) | (238,775) | |||||||||||||||
Net Income (Loss) | 10,355,456 | 9,992,004 | 363,452 | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2022 | [1],[2] | 50,369,350 | |||||||||||||||||
Ending balance at Sep. 30, 2022 | [1],[2] | $ 22,139,164 | $ 5,037 | 704,963 | 19,312,750 | 1,127,983 | 988,431 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 50,639,350 | 50,369,350 | 50,639,350 | 50,369,350 | [1] | 400 | |||||||||||||
Beginning balance at Dec. 31, 2022 | $ 28,149,697 | [1] | $ 5,037 | $ 5,037 | [1] | 704,963 | [1] | 25,487,323 | [1] | 1,052,836 | [1] | 899,538 | [1] | 2,011,137 | $ 4,000 | 80,000 | 1,927,137 | ||
Ending balance (in shares) at Jun. 30, 2023 | [2] | 62,961,688 | |||||||||||||||||
Ending balance at Jun. 30, 2023 | [2] | $ 160,498,915 | $ 6,296 | 188,641,886 | (29,382,362) | 877,306 | 355,789 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 50,639,350 | 50,369,350 | 50,639,350 | 50,369,350 | [1] | 400 | |||||||||||||
Beginning balance at Dec. 31, 2022 | $ 28,149,697 | [1] | $ 5,037 | $ 5,037 | [1] | 704,963 | [1] | 25,487,323 | [1] | 1,052,836 | [1] | 899,538 | [1] | $ 2,011,137 | $ 4,000 | $ 80,000 | $ 1,927,137 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Distributions | (34,451,607) | (34,451,607) | |||||||||||||||||
Deferred transaction costs | (10,841,551) | (10,841,551) | |||||||||||||||||
Public warrants | 960,900 | 4,726,500 | (3,765,600) | ||||||||||||||||
Merger with East Resources Acquisition Company (in shares) | 12,980,473 | ||||||||||||||||||
Merger with East Resources Acquisition Company | (2,796,225) | $ 1,298 | 17,849,052 | (20,646,575) | |||||||||||||||
Acquisition of Abacus Settlements, LLC | 165,361,332 | 165,361,332 | |||||||||||||||||
Proceeds received from SPAC trust | 972,262 | 972,262 | |||||||||||||||||
Stock based compensation | 4,583,632 | 4,583,632 | 0 | ||||||||||||||||
Transfer of non-controlling interest | 0 | (24,751) | 24,751 | ||||||||||||||||
Other Comprehensive Income | (1,248,010) | (952,661) | (295,349) | ||||||||||||||||
Net Income (Loss) | $ 15,399,317 | 15,739,009 | (339,692) | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2023 | 63,349,823 | 63,349,823 | 63,349,823 | ||||||||||||||||
Ending balance at Sep. 30, 2023 | $ 166,089,747 | $ 6,335 | 194,197,741 | (28,503,752) | 100,175 | 289,248 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | [2] | 62,961,688 | |||||||||||||||||
Ending balance at Jun. 30, 2023 | [2] | 160,498,915 | $ 6,296 | 188,641,886 | (29,382,362) | 877,306 | 355,789 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Merger with East Resources Acquisition Company (in shares) | 388,135 | ||||||||||||||||||
Merger with East Resources Acquisition Company | $ 39 | (39) | |||||||||||||||||
Proceeds received from SPAC trust | 972,262 | 972,262 | |||||||||||||||||
Stock based compensation | 4,583,632 | 4,583,632 | |||||||||||||||||
Transfer of non-controlling interest | (24,751) | 24,751 | |||||||||||||||||
Other Comprehensive Income | (1,016,034) | 0 | (777,131) | (238,903) | |||||||||||||||
Net Income (Loss) | $ 1,050,972 | 903,361 | 147,611 | ||||||||||||||||
Ending balance (in shares) at Sep. 30, 2023 | 63,349,823 | 63,349,823 | 63,349,823 | ||||||||||||||||
Ending balance at Sep. 30, 2023 | $ 166,089,747 | $ 6,335 | $ 194,197,741 | $ (28,503,752) | $ 100,175 | $ 289,248 | |||||||||||||
[1]Both the number of shares outstanding and their par value have been retrospectively recast for all prior periods presented to reflect the par value of the outstanding stock of Abacus Life Inc. as a result of the successful Business Combination.[2]Both the number of shares outstanding and their par value have been retrospectively recast for all prior periods presented to reflect the par value of the outstanding stock of Abacus Life, Inc. as a result of the successful Business Combination. |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 15,399,317 | $ 22,277,795 | $ 32,386,975 | $ (133,609) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 1,696,994 | 3,211 | 4,282 | 2,447 |
Stock based compensation | 4,583,632 | 0 | ||
Deferred financing fees | 133,211 | 0 | ||
Unrealized (gain) loss on investments | (491,356) | 1,301,821 | 1,045,623 | 0 |
Unrealized (gain) on policies | (14,259,665) | (3,957,809) | (5,742,377) | 0 |
(Gain) loss on change in fair value of debt | 309,865 | (859,519) | 90,719 | 0 |
Deferred income taxes | 1,743,079 | 648,887 | 889,943 | 0 |
Non-cash interest expense | 1,064,130 | 0 | ||
Non-cash lease expense | (721) | 192 | 383 | 0 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (929,020) | 0 | (10,448) | 0 |
Accounts receivable, related party | 29,199 | (364,931) | (130,873) | (11,047) |
Other receivable | 0 | 18,315 | ||
Prepaid expenses and other current assets | (325,294) | (1,920,015) | (91,741) | (23,738) |
Other noncurrent assets | (634,409) | 0 | (1,936,452) | 0 |
Accounts payable | (38,014) | 44,103,901 | 40,014 | 0 |
Accrued expenses | 112,388 | 0 | ||
Accrued transaction costs | (908,256) | 0 | 908,256 | 0 |
Contract liability—deposits on pending settlement | (632,381) | 0 | ||
Other current liabilities | 3,089,077 | 1,352,878 | 22,035 | 8,463 |
Life settlement policies, at fair value | (55,516,357) | (7,105,000) | (8,066,975) | 0 |
Life settlement policies, at cost | (5,601,493) | (61,876,742) | (8,716,111) | 0 |
Net cash used in operating activities | (51,176,074) | (6,395,331) | 10,693,254 | (139,169) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of other investments | (350,000) | (250,000) | (750,000) | (250,000) |
Purchase of property and equipment | (96,721) | 0 | 0 | (25,346) |
Purchase of other investments, at cost | (50,000) | |||
Due from affiliates | 3,016,158 | (1,682,664) | (2,904,646) | 0 |
Net cash provided (used) in investing activities | 2,569,437 | (1,932,664) | (3,704,646) | (275,346) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Issuance of long term debt, at fair value | 30,028,640 | 0 | ||
Due to owners | 442,283 | 2,500,000 | ||
Issuance of debt certificates | 87,478,232 | 12,900,291 | ||
Issuance of private warrants | 943,400 | 0 | ||
Transaction costs | (10,841,551) | 0 | ||
Proceeds received from SPAC trust | 972,262 | 0 | ||
Net cash provided by financing activities | 55,203,004 | 12,069,661 | 22,961,795 | 381,663 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 6,596,367 | 3,741,666 | 29,950,403 | (32,852) |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 30,052,823 | 102,420 | 102,420 | 135,272 |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 36,649,190 | 3,844,087 | 30,052,823 | 102,420 |
Related Party | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Capital distribution | (23,533,073) | (2,400,000) | (6,400,000) | (400,000) |
Affiliated Entity | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Capital distribution | (258,549) | (930,630) | (666,845) | (781,663) |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | (52,495) | 997,415 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 25,184 | 18,651 | ||
Amortization expense | 80,138 | 12,593 | ||
Deferred financing fees | 7,817 | 0 | ||
Non-cash lease expense | 1,631 | 0 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, related party | 187,622 | (456,240) | ||
Other receivable | (82,455) | (40,000) | ||
Prepaid expenses and other current assets | 89,366 | (58,316) | ||
Other noncurrent assets | (7,246) | |||
Accounts payable | 36,750 | 0 | ||
Accrued expenses | 31,020 | (4,349) | ||
Contract liability—deposits on pending settlement | (1,356,641) | 610,541 | ||
State security deposit | (233) | (32) | ||
Certificate of deposit | 656,250 | 262,500 | ||
Net cash used in operating activities | (383,291) | 1,342,763 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of property and equipment | (64,099) | 0 | ||
Purchase of intangible asset | (15,000) | (226,664) | ||
Change in due from members and affiliates | 15,088 | (14,864) | ||
Net cash provided (used) in investing activities | (64,011) | (241,528) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Financing fees | (23,450) | |||
Change in due to members | (10,446) | 3,639 | ||
Net cash provided by financing activities | (693,259) | (354,577) | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,140,562) | 746,658 | ||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | $ 1,458,740 | $ 2,599,302 | 2,599,302 | 1,852,644 |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 1,458,740 | 2,599,302 | ||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Related Party | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Capital distribution | $ (659,363) | $ (358,216) |
Abacus Settlements LLC - UNAUDI
Abacus Settlements LLC - UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | |
Total revenues | $ 11,507,748 | $ 29,784,048 | ||
Total cost of revenue | 1,754,894 | 3,840,969 | ||
Total gross profit | 9,752,854 | 25,943,079 | ||
OPERATING EXPENSES: | ||||
General and administrative expenses | 59,816 | 706,523 | ||
Depreciation | 3,211 | |||
Total operating expenses | (912,394) | 2,816,439 | ||
Operating income (loss) | 10,665,248 | 23,126,640 | ||
OTHER INCOME (EXPENSE) | ||||
Interest income | 0 | 0 | ||
Interest (expense) | 0 | 0 | ||
Other income (expense) | 42,289 | (199,958) | ||
Total other income (expense) | 42,289 | (199,958) | ||
Net income before provision for income taxes | 10,707,537 | 22,926,682 | ||
Income tax expense | 352,081 | 648,887 | ||
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ 9,992,004 | $ 21,507,702 | ||
WEIGHTED-AVERAGE UNITS USED IN COMPUTING NET INCOME (LOSS) PER UNIT: | ||||
Weighted-average shares used in computing net income per share, basic (in shares) | 50,369,350 | 50,369,350 | ||
Weighted-average units outstanding - diluted (in shares) | 50,369,350 | 50,369,350 | ||
NET INCOME/(LOSS) PER UNIT: | ||||
Basic earnings per unit (in dollars per share) | $ 0.2 | $ 0.43 | ||
Diluted earnings per unit (in dollars per share) | $ 0.2 | $ 0.43 | ||
Abacus Settlements, LLC | ||||
Origination revenue | $ 6,884,690 | $ 6,031,480 | $ 13,184,676 | $ 19,046,144 |
Total revenues | 6,884,690 | 6,031,481 | 13,184,676 | 19,046,144 |
Total cost of revenue | 4,897,980 | 3,864,079 | 9,293,303 | 12,651,704 |
Total gross profit | 1,986,710 | 2,167,402 | 3,891,373 | 6,394,440 |
OPERATING EXPENSES: | ||||
General and administrative expenses | 2,297,577 | 2,284,061 | 4,848,580 | 6,232,419 |
Depreciation | 2,561 | 3,161 | 5,597 | 9,149 |
Total operating expenses | 2,300,138 | 2,287,222 | 4,854,177 | 6,241,568 |
Operating income (loss) | (313,428) | (119,820) | (962,804) | 152,872 |
OTHER INCOME (EXPENSE) | ||||
Interest income | 1,193 | 358 | 1,917 | 1,505 |
Interest (expense) | (5,863) | (2,954) | (11,725) | (2,954) |
Other income (expense) | 0 | 0 | 0 | 273 |
Total other income (expense) | (4,670) | (2,596) | (9,808) | (1,176) |
Net income before provision for income taxes | (318,098) | (122,417) | (972,612) | 151,696 |
Income tax expense | 0 | 582 | 2,289 | 1,907 |
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ (318,098) | $ (122,999) | $ (974,901) | $ 149,789 |
WEIGHTED-AVERAGE UNITS USED IN COMPUTING NET INCOME (LOSS) PER UNIT: | ||||
Weighted-average shares used in computing net income per share, basic (in shares) | 400 | 400 | 400 | 400 |
Weighted-average units outstanding - diluted (in shares) | 400 | 400 | 400 | 400 |
NET INCOME/(LOSS) PER UNIT: | ||||
Basic earnings per unit (in dollars per share) | $ (795.25) | $ (307.5) | $ (2,437.25) | $ 374.47 |
Diluted earnings per unit (in dollars per share) | $ (795.25) | $ (307.5) | $ (2,437.25) | $ 374.47 |
Abacus Settlements, LLC | Nonrelated Party | ||||
Origination revenue | $ 1,689,088 | $ 1,766,853 | $ 3,252,738 | $ 4,951,921 |
Total cost of revenue | 1,505,333 | 933,089 | 2,734,949 | 4,198,402 |
Abacus Settlements, LLC | Related Party | ||||
Origination revenue | 5,195,602 | 4,264,628 | 9,931,938 | 14,094,223 |
Total cost of revenue | $ 3,392,647 | $ 2,930,990 | $ 6,558,354 | $ 8,453,302 |
Abacus Settlements LLC - UNAU_2
Abacus Settlements LLC - UNAUDITED CONDENSED STATEMENTS OF CHANGES IN MEMBERS' EQUITY - USD ($) | Total | Common Units | Additional Paid-In Capital | Retained Earnings | Abacus Settlements, LLC | Abacus Settlements, LLC Common Units | Abacus Settlements, LLC Additional Paid-In Capital | Abacus Settlements, LLC Retained Earnings | |||
Beginning balance (in shares) at Dec. 31, 2020 | 50,639,350 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,300,502 | $ 5,037 | $ 704,963 | $ 590,502 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 14,546 | ||||||||||
Distributions | $ (400,000) | (400,000) | |||||||||
Ending balance (in shares) at Dec. 31, 2021 | 5,000 | 50,639,350 | 400 | ||||||||
Ending balance at Dec. 31, 2021 | $ 766,893 | [1] | $ 5,037 | 704,963 | [1] | 205,048 | [1] | $ 2,722,995 | $ 4,000 | $ 80,000 | $ 2,638,995 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 21,507,702 | 149,789 | 149,789 | ||||||||
Distributions | (2,400,000) | (2,400,000) | (661,308) | (661,308) | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 400 | ||||||||||
Ending balance at Sep. 30, 2022 | $ 22,139,164 | [1],[2] | 704,963 | [1],[2] | 19,312,750 | [1],[2] | 2,211,476 | $ 4,000 | 80,000 | 2,127,476 | |
Beginning balance (in shares) at Dec. 31, 2021 | 5,000 | 50,639,350 | 400 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 766,893 | [1] | $ 5,037 | 704,963 | [1] | 205,048 | [1] | 2,722,995 | $ 4,000 | 80,000 | 2,638,995 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 31,682,275 | ||||||||||
Distributions | $ (6,400,000) | (6,400,000) | |||||||||
Ending balance (in shares) at Dec. 31, 2022 | 50,639,350 | 50,639,350 | 400 | ||||||||
Ending balance at Dec. 31, 2022 | $ 28,149,697 | [1] | $ 5,037 | 704,963 | [1] | 25,487,323 | [1] | 2,011,137 | $ 4,000 | 80,000 | 1,927,137 |
Beginning balance (in shares) at Jun. 30, 2022 | 400 | ||||||||||
Beginning balance at Jun. 30, 2022 | 12,306,791 | [2] | 704,963 | [2] | 9,320,746 | [2] | 2,335,914 | $ 4,000 | 80,000 | 2,251,914 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 9,992,004 | (122,999) | (122,999) | ||||||||
Distributions | (1,439) | (1,439) | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | 400 | ||||||||||
Ending balance at Sep. 30, 2022 | $ 22,139,164 | [1],[2] | 704,963 | [1],[2] | 19,312,750 | [1],[2] | 2,211,476 | $ 4,000 | 80,000 | 2,127,476 | |
Beginning balance (in shares) at Dec. 31, 2022 | 50,639,350 | 50,639,350 | 400 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 28,149,697 | [1] | $ 5,037 | 704,963 | [1] | 25,487,323 | [1] | 2,011,137 | $ 4,000 | 80,000 | 1,927,137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | (974,901) | (974,901) | |||||||||
Distributions | (442,283) | (442,283) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 400 | ||||||||||
Ending balance at Jun. 30, 2023 | $ 160,498,915 | [2] | 188,641,886 | [2] | (29,382,362) | [2] | 593,953 | $ 4,000 | 80,000 | 509,953 | |
Beginning balance (in shares) at Dec. 31, 2022 | 50,639,350 | 50,639,350 | 400 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 28,149,697 | [1] | $ 5,037 | 704,963 | [1] | 25,487,323 | [1] | 2,011,137 | $ 4,000 | 80,000 | 1,927,137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 15,739,009 | ||||||||||
Distributions | $ (34,451,607) | (34,451,607) | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | 63,349,823 | ||||||||||
Ending balance at Sep. 30, 2023 | $ 166,089,747 | 194,197,741 | (28,503,752) | ||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 400 | ||||||||||
Beginning balance at Mar. 31, 2023 | 1,354,334 | $ 4,000 | 80,000 | 1,270,334 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | (318,098) | (318,098) | |||||||||
Distributions | (442,283) | (442,283) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 400 | ||||||||||
Ending balance at Jun. 30, 2023 | 160,498,915 | [2] | 188,641,886 | [2] | (29,382,362) | [2] | $ 593,953 | $ 4,000 | $ 80,000 | $ 509,953 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | $ 903,361 | ||||||||||
Ending balance (in shares) at Sep. 30, 2023 | 63,349,823 | ||||||||||
Ending balance at Sep. 30, 2023 | $ 166,089,747 | $ 194,197,741 | $ (28,503,752) | ||||||||
[1]Both the number of shares outstanding and their par value have been retrospectively recast for all prior periods presented to reflect the par value of the outstanding stock of Abacus Life Inc. as a result of the successful Business Combination.[2]Both the number of shares outstanding and their par value have been retrospectively recast for all prior periods presented to reflect the par value of the outstanding stock of Abacus Life, Inc. as a result of the successful Business Combination. |
Abacus Settlements LLC - UNAU_3
Abacus Settlements LLC - UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ 903,361 | $ 9,992,004 | $ 15,739,009 | $ 21,507,702 | $ 31,682,275 | $ 14,546 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation expense | 12,770 | 1,070 | 14,911 | 3,211 | 4,282 | 2,447 | |
Amortization of deferred financing fees | 133,211 | 0 | |||||
Changes in operating assets and liabilities: | |||||||
Related party receivables | 29,199 | (364,931) | (130,873) | (11,047) | |||
Other receivables | 0 | (18,315) | |||||
Accrued payroll and other expenses | 112,388 | 0 | |||||
Contract liability—deposits on pending settlement | (632,381) | 0 | |||||
Accounts payable | (38,014) | 44,103,901 | 40,014 | 0 | |||
Net cash used in operating activities | (51,176,074) | (6,395,331) | 10,693,254 | (139,169) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Net cash provided (used) in investing activities | 2,569,437 | (1,932,664) | (3,704,646) | (275,346) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net cash provided by financing activities | 55,203,004 | 12,069,661 | 22,961,795 | 381,663 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 6,596,367 | 3,741,666 | 29,950,403 | (32,852) | |||
CASH AND CASH EQUIVALENTS: | |||||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | $ 30,052,823 | 30,052,823 | 102,420 | 102,420 | 135,272 | ||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 36,649,190 | 3,844,087 | 36,649,190 | 3,844,087 | 30,052,823 | 102,420 | |
Abacus Settlements, LLC | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | (122,999) | (974,901) | 149,789 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation expense | 19,157 | 17,807 | |||||
Amortization expense | 40,278 | 60,000 | |||||
Amortization of deferred financing fees | 11,725 | 1,954 | |||||
Non-cash lease expense | 1,210 | 815 | |||||
Changes in operating assets and liabilities: | |||||||
Related party receivables | 397,039 | 0 | |||||
Other receivables | 101,203 | (641,951) | |||||
Prepaid expenses | (198,643) | (33,192) | |||||
Other current assets | (26,211) | (2,561) | |||||
Certificate of deposit | 0 | (656,250) | |||||
Accrued payroll and other expenses | (17,466) | 41,934 | |||||
Contract liability—deposits on pending settlement | 659,067 | (1,096,041) | |||||
Accounts payable | (36,750) | (30,696) | |||||
Net cash used in operating activities | (24,292) | (875,892) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (108,394) | (57,546) | |||||
Purchase of intangible asset | 0 | 0 | |||||
Due from members and affiliates | (74,134) | (58,275) | |||||
Net cash provided (used) in investing activities | (182,528) | (130,821) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Due to members | (1,411) | (11,857) | |||||
Distributions to members | (442,283) | (661,308) | |||||
Net cash provided by financing activities | (443,694) | (673,165) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (650,514) | (1,679,878) | |||||
CASH AND CASH EQUIVALENTS: | |||||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | $ 808,226 | 1,458,740 | $ 1,458,740 | 2,599,302 | 2,599,302 | ||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ 919,424 | $ 808,226 | $ 919,424 | $ 1,458,740 | $ 2,599,302 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Organization and Merger Abacus Life, Inc. (the “Company”) was formerly known as East Resources Acquisition Company (“ERES”), a blank check company incorporated in Delaware on May 22, 2020. Abacus Life, Inc. conducts its business through its wholly-owned, consolidated subsidiaries, primarily Abacus Settlements, LLC (“Abacus Settlements”, or “Abacus”) and Longevity Market Assets, LLC (“LMA”), which are Delaware limited liability companies (collectively, the “Companies”). On June 30, 2023, (the “Closing Date”), ERES, LMA and Abacus Settlements, LLC consummated the combining of the Companies as contemplated by the Merger Agreement dated as of August 30, 2022 (as amended on October 14, 2022 and April 20, 2023) with LMA Merger Sub, LLC, a wholly owned subsidiary of ERES (“LMA Merger Sub”), Abacus Merger Sub, LLC, a wholly owned subsidiary of ERES (“Abacus Merger Sub”), LMA and Abacus (together with LMA, the “Legacy Companies”). Pursuant to the Merger Agreement, on June 30, 2023, (i) LMA Merger Sub merged with and into LMA, with LMA surviving such merger (the “LMA Merger”) and (ii) Abacus Merger Sub merged with and into Abacus, with Abacus surviving such merger (the “Abacus Merger” and, together with the LMA Merger, the “Mergers” and, along with the other transactions contemplated by the Merger Agreement, the “Business Combination”) and the Legacy Companies became direct wholly owned subsidiaries of Abacus and ERES changed its name to Abacus Life, Inc. The condensed consolidated assets, liabilities and statements of operations and comprehensive income prior to the Business Combination are those of legacy LMA. The shares of common stock and corresponding capital amounts and income per share, prior to the Business Combination, have been retroactively restated based on share reflecting the exchange ratio established in the Business Combination. The equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to legacy LMA’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and income per share related to legacy LMA common stock prior to the Business Combination have been retroactively recast as shares reflecting the exchange ratio of 0.8 established in the Business Combination. Business Activity The Company, through its LMA subsidiary, is a provider of services pertaining to life insurance settlements and offers policy servicing to owners and purchasers of life settlement assets, as well as consulting, valuation, and actuarial services. The Company is also engaged in buying and selling of life settlement policies in which it uses its own capital, and purchases life settlement contracts with the intent to either hold to maturity to receive the associated death claim payout or to sell to another purchaser of life settlement contracts for a gain on the sale. The Company, through its Abacus subsidiary, also is an originator of outstanding life insurance policies as a licensed life settlement provider on behalf of investors (“Financing Entities”). Abacus locates and screens policies for eligibility as a commercially desirable life settlement, including verifying that the policy is in force, obtaining consents and disclosures, and submitting cases for life expectancy estimates, also known, collectively, as origination services. When the sale of a policy is completed, this is deemed “settled” and the policy is then referred to as either a “life settlement” in which the insured’s life expectancy is greater than two years or “viatical settlement,” in which the insured’s life expectancy is less than two years. The Company is not an insurance company, and therefore the Company does not underwrite insurable risks for its own account. | 1. DESCRIPTION OF BUSINESS Abacus Life, Inc. (“the Company”) was formerly known as East Resources Acquisition Company (“ERES”), a blank check company incorporated in Delaware on May 22, 2020. Abacus Life, Inc. conducts its business through its wholly-owned, consolidated subsidiaries, primarily Abacus Settlements LLC (“Abacus”) and Longevity Market Assets, LLC (“LMA”), which are incorporated in the state of Delaware (collectively, the “Companies”). On June 30, 2023, (the “Closing Date”), ERES, Longevity Market Assets, LLC and Abacus Settlements, LLC consummated the combining of the Companies as contemplated by the Merger Agreement dated as of August 30, 2022 (as amended on October 14, 2022 and April 20, 2023) with LMA Merger Sub, LLC, a wholly owned subsidiary of ERES (“LMA Merger Sub”), Abacus Merger Sub, LLC, a wholly owned subsidiary of ERES (“Abacus Merger Sub”), Longevity Market Assets, LLC (“LMA”) and Abacus Settlements, LLC (“Legacy Abacus” and, together with LMA, the “Legacy Companies”). Pursuant to the Merger Agreement, on June 30, 2023, (i) LMA Merger Sub merged with and into LMA, with LMA surviving such merger (the “LMA Merger”) and (ii) Abacus Merger Sub merged with and into Legacy Abacus, with Legacy Abacus surviving such merger (the “Abacus Merger” and, together with the LMA Merger, the “Mergers” and, along with the other transactions contemplated by the Merger Agreement, the “Business Combination”) and the Legacy Companies became direct wholly owned subsidiaries of Abacus and ERES changed its name to Abacus Life, Inc. The consolidated balance sheets, statements of operations and comprehensive income (loss) and consolidated statement of changes in shareholder equity prior to the Business Combination are those of legacy LMA. The stocks and corresponding capital amounts and income per stock, prior to the Business Combination, have been retroactively restated based on stocks reflecting the exchange ratio established in the Business Combination. The equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to legacy LMA’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to legacy LMA common stock prior to the Business Combination have been retroactively recast as shares reflecting the exchange ratio of 0.8 established in the Business Combination. The Company is a provider of services pertaining to life insurance settlements and offers policy servicing to owners and purchasers of life settlement assets, as well as consulting, valuation, and actuarial services. The Company offers value to the owners of life settlements by monitoring and maintaining the policy, and performing all administrative work involved to keep the policy in force and at the premium level most advantageous to the owner. The Company is also engaged in buying and selling of life settlement policies in which it uses its own capital, and purchases life settlement contracts with the intent to either hold to maturity to receive the associated death claim payout, or to sell to another purchaser of life settlement contracts for a gain on the sale. The Company is headqu ar |
Abacus Settlements, LLC | ||
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF THE BUSINESS Abacus Settlements, LLC d/b/a Abacus Life (the “Company”) was formed in 2004 in the state of New York. In 2016, the Company obtained its licensure in Florida and re-domesticated to that state. The Company acts as a purchaser of outstanding life insurance policies on behalf of investors (“financing entities”) by locating policies and screening them for eligibility for a life settlement, including verifying that the policy is in force, obtaining consents and disclosures, and submitting cases for life expectancy estimates, also known as origination services. When the sale of a policy is completed, this is deemed “settled” and the policy is then referred to as either a “life settlements,” in which the insured’s life expectancy is greater than two years or “viatical settlements,” in which the insured’s life expectancy is less than two years. The Company is not an insurance company, and therefore does not underwrite insurable risks for its own account. On August 30, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with East Resources Acquisition Company (“ERES”), which was subsequently amended on October 14, 2022 and April 20, 2023. As part of the Merger Agreement, the total transaction value is $618,000,000, where the holders of the Company’s common units together with the holders of Longevity Markets Assets, LLC (“LMA”), a commonly owned affiliate, will receive aggregate consideration of approximately $531,800,000, payable in a number of newly issued shares of ERES Class A common stock, par value $0.0001 per share (“ERES Class A common stock”), with a value ascribed to each share of ERES Class A common stock of $10.00 and, to the extent the aggregate transaction proceeds exceed $200.0 million, at the election of the Company’s and LMA’s members, up to $20.0 million of the aggregate consideration will be payable in cash to the Company’s and LMA’s members. The transaction is expected to close in Q2 2023, subject to shareholder approval and customary closing conditions. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Abacus Merger has been accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of Abacus were recorded at the fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net assets acquired was recognized as goodwill. As a result of the Business Combination, the Company evaluated if ERES, Abacus, or LMA is the predecessor for accounting purposes. In considering the foregoing principles of predecessor determination and in light of the Company’s specific facts and circumstances, management determined that LMA and Abacus are dual predecessors for accounting purposes. The financial statement presentation for Abacus Life, Inc. includes the purchase accounting effects of the Abacus Merger as of the Closing Date with the financial statements of LMA as the comparative period. The predecessor financial statements for Abacus are included separately within this report. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and are prepared in accordance with U.S. GAAP. Unaudited Condensed Consolidated Financial Statements Refer to this note in the LMA annual financial statements for the full list of the Company’s significant accounting policies. The details in those notes have not changed, except as discussed below and as a result of normal adjustments in the interim periods. Consolidation of Variable Interest Entities Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidations On January 1, 2021, the Company entered into an option agreement with two commonly owned full-service origination, servicing, and investment providers (the “Providers”), in which the Company agreed to fund certain capital needs with an option to purchase the outstanding equity ownership of the Providers (the “Option Agreement”). The Company accounted for its investment in the call options under the Option Agreement as an equity security, pursuant to ASC 321, Investments-Equity Securities Derivatives and Hedging The Company provided $0 and $40,800 of funding for the three months ended September 30, 2023 and September 30, 2022, respectively, and provided $29,721 and $283,047 of funding for the nine months ended September 30, 2023 and September 30, 2022, respectively, which is included in other (expense) income on the condensed consolidated statements of operations and comprehensive income. Refer to Note 11 for further details. For the period ended September 30, 2023, and for the year ended December 31, 2022, the Providers were considered to be VIEs, but were not consolidated in the Company’s condensed consolidated financial statements due to a lack of the power criterion or the losses/benefits criterion. As of September 30, 2023, the unaudited financial information for the unconsolidated VIEs are as follows: held assets of $824,375 and liabilities of $191,632. As of December 31, 2022, the unaudited financial information for the unconsolidated VIEs are as follows: held assets of $987,964 and liabilities of $358,586. On October 4, 2021, the Company entered into an operating agreement with LMX Series, LLC (“LMX”) and three other unaffiliated investors to obtain a 70% ownership interest in LMX, which was newly formed in August 2021. LMX had no operating activity prior to the operating agreement being signed. LMX has a wholly owned subsidiary, LMATT Series 2024, Inc., a Delaware C corporation. While the Company and three other investors each contributed $100 to LMX, the Company directs the most significant activities by managing the investment offerings, and sponsoring and creating structured investment grade insurance liabilities, and thus was provided a 70% ownership interest. LMX is a VIE and the Company is the primary beneficiary of LMX. The Company has included the results of LMX and its subsidiaries in its condensed consolidated financial statements for the period ended September 30, 2023. On November 30, 2022, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created general partnership, LMA Income Series, GP, LLC. Subsequent to that, LMA Income Series, GP, LLC formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its condensed consolidated financial statements for the nine months ended September 30, 2023. On January 31, 2023, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created general partnership, LMA Income Series II, GP, LLC. Subsequent to that, LMA Income Series II, GP, LLC formed a limited partnership, LMA Income Series II, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series II, LP and thus has fully consolidated the limited partnership in its condensed consolidated financial statements for the nine months ended September 30, 2023. Noncontrolling Interest Net income of a consolidated entity is allocated to noncontrolling interests based on the noncontrolling shareholder’s ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in net income (loss) attributable to noncontrolling interests in the condensed consolidated statements of operations and comprehensive income. Use of Estimates Life Insurance Settlement Policies Investments in Insurance Contracts The Company follows ASC 820, Fair Value Measurements and Disclosures included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s valuation of life settlements is considered to be Level 3, as there is currently no active market where we are able to observe quoted prices for identical assets. The Company’s valuation model incorporates significant inputs that are not observable. Refer to Note 10 for further details. For policies held at fair value, changes in fair value are reflected in the unaudited condensed consolidated statement of operations and comprehensive income under active management revenue in the period the change is calculated. For policies held under the investment method, the Company tests the impairment if we become aware of information indicating that the carrying value plus undiscounted future premiums of a policy may not be recoverable. This information is gathered initially through extensive underwriting procedures at purchase of the settlement contract, as well as through periodic underwriting review that include medical reports and life expectancy evaluations. The policies held by the Company using the investment method are expected to be owned for a shorter-term, and are actively marketed to potential buyers. The market feedback received through these interactions provides the Company with information related to a potential impairment. If a policy is determined to be impaired, the Company will adjust the carrying value to the fair value determined through the impairment analysis. The Company accounts for cash proceeds from sale and maturity of life insurance settlement policies, as well as cash outflows for premium payments, as operating activities within the condensed consolidated statements of cash flows. Goodwill and Intangible Assets To test for impairment, a qualitative assessment is performed to determine if it is more likely-than-not that the fair value of a reporting unit is less than its carrying value, including goodwill. This initial assessment includes, among other factors, consideration of: (i) past, current and projected future earnings and equity; (ii) recent trends and market conditions; and (iii) valuation metrics involving similar companies that are publicly traded and acquisitions of similar companies, if available. If the more likely-than-not threshold is met, a quantitative impairment test is performed by comparing the estimated fair value with the carrying value. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and will be determined as the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company’s reporting units are at the operating segment level; each operating segment represents a business and discrete financial information is available and reviewed regularly by management. Determining the fair value of its reporting units is subjective in nature and involves the use of significant estimates and assumptions, including projected net cash flows, discount and long-term growth rates. The Company determines the fair value of its reporting units based on an income approach and market approach, whereby the fair value of the reporting unit is derived from the present value of estimated future cash flows associated with the reporting unit. The assumptions about estimated cash flows include factors such as future premiums, loss and expenses, general and administrative expenses and industry trends. The Company considers historical rates and current market conditions when determining the discount and long-term growth rates to use in its analysis. The Company considers other valuation methods if the facts and circumstances indicate these methods provide a more representative approximation of fair value. Changes in these estimates based on evolving economic conditions or business strategies could result in material impairment charges in future periods. The Company bases its fair value estimates on assumptions it believes to be reasonable. Actual results may differ from those estimates. As of September 30, 2023, there were no events or changes in circumstances that indicated that a carrying Cost of Revenues (excluding Depreciation and Amortization) Income Taxes Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and the Company’s experience with similar operations. Existing favorable contracts are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also remeasured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Concentrations anc Two related party customers accounted for 5% and 5% of the total balance of accounts receivable and related party receivables as of September 30, 2023, respectively, and two related party customers accounted for 75% and 16% of the total accounts receivable and related party receivables as of December 31, 2022, respectively. The largest receivables balances are from related parties where the exposed credit risk is estimated to be low. As such, there is no allowance for doubtful accounts as of September 30, 2023, and December 31, 2022. One customer accounted for 13% of active management revenue for the three months ended September 30, 2023. Two related party customers each accounted for 39% and 39% of the portfolio servicing revenue for the three months ended September 30, 2023. One customer accounted for 22% of active management revenue, while 9% of revenue related to 2 policies that matured that were accounted for under the investment method and 1 policy that matured that was accounted for under the fair-value method for the nine months ended September 30, 2023. Two related party customers each accounted for 36% and 37% of the portfolio servicing revenue for the nine months ended September 30, 2023. Two customers accounted for 44% and 29% of the total revenues for the nine months ended September 30, 2022. Warrants Distinguishing Liabilities from Equity For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed consolidated statements of operations and comprehensive income. Stock-Based Compensation Compensation - Stock Compensation gnize | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation LLC and its wholly owned and controlled subsidiaries and subsidiaries in which the Company holds a controlling financial interest or is the primary beneficiary. Intercompany transactions and accounts have been eliminated in consolidation. Consolidation of Variable Interest Entities Accounting Standards Codification (“ASC”) Topic 810, Consolidations, requires the Company to separately disclose on its Consolidated Balance Sheets the assets of consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of December 31, 2022, total assets and liabilities of consolidated VIEs is $30,073,972 and $27,116,762, respectively. As of December 31, 2021, total assets and liabilities of consolidated VIEs is $400 and $0, respectively. On October 4, 2021, the Company entered into an Operating Agreement with LMX Series, LLC (“LMX“) and three other unaffiliated investors to obtain a 70% ownership interest in LMX, which was newly formed in August 2021. LMX had no operating activity prior to the Operating Agreement being signed. LMX has a wholly owned subsidiary, LMATT Series 2024, Inc., a Delaware C-Corporation. On March 3, 2022, the Company formed Longevity Market Advisors, LLC (“Longevity Market Advisors”), which they have an 80% ownership interest in. The Longevity Market Advisors legal entity was established primarily for the purpose of acquiring the assets of a broker/dealer, Regional Investment Services, Inc. (RIS), an Ohio corporation. Longevity Market Advisors is a VIE and the Company is the primary beneficiary of Longevity Market Advisors. The purchase price in exchange for RIS was $60,000. The Company evaluated whether this represented a business combination or an asset acquisition under ASC 805. While the purchase of the RIS represents a business, it was further determined that as RIS was purchased for the primary reason of being registered by the Financial Industry Regulatory Authority (“FINRA”). As there are no tangible or intangible assets of value from the RIS that would meet the capitalization criteria that have standalone value, the Company has expensed the purchase in general and administrative costs. Upon closing of the transaction, Longevity Market Advisors will comprise 100% of the ownership structure of RIS, and RIS will be a wholly owned subsidiary. The Company has included the results of Longevity Market Advisors and its subsidiaries in its consolidated financial statements for the year ended December 31, 2022. On November 30, 2022, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created partnership general partnership, LMA Income Series, GP, LLC. Subsequent to that, LMA Income Series, GP, LLC formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its consolidated financial statements for the year ended December 31, 2022. Non-Consolidated two The Company accounted for its investment in the call options as an equity security, pursuant to ASC 321. In arriving at this accounting conclusion, the Company first considered whether the call option met the definition of a derivative pursuant to ASC 815 and concluded that it did not as the instrument does not provide for net settlement and accordingly is not a derivative. The Company also concluded that the call option does not provide the Company with a controlling financial interest in the legal entity pursuant to ASC 810. The call option includes material contingencies prior to exercisability that the Company does not anticipate will be resolved; additionally, the call option is in a legal entity for which the share price has no readily determinable fair value. The Company’s basis in the call option, pursuant to ASC 321, is zero and accordingly the call option is not reflected in the statement of financial position The Company provided $347,013 of funding for the year-ended December 31, 2022 which is included in Other (Expense) Income on the Consolidated Statements of Operations and Comprehensive Income (Loss) and $ 120,000 For the year ended December 31, 2022 and 2021, the Providers were considered to be VIEs, but were not consolidated in our consolidated financial statements due to a lack of the power criterion or the losses/benefits criterion. For the year ended December 31, 2022, the unaudited financial information for the unconsolidated VIE’s are as follows: held assets of $ 126,040 0 861,924 358,586 non-consolidated 122,279 0 474,288 2,218 Noncontrolling Interest Net income of a consolidated entity is allocated to noncontrolling interests based on the noncontrolling shareholder’s ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in Net income (loss) attributable to noncontrolling interests in the Consolidated Statement of Operations and Comprehensive Income (Loss). Use of Estimates ng Life Insurance Settlement Policies ASC 325-30, Investments in Insurance Contracts The Company follows ASC 820, Fair Value Measurements and Disclosures For policies held under the investment method, the Company tests the impairment if we become aware of information indicating that the carrying value plus undiscounted future premiums of a policy may not be recoverable. This information is gathered initially through extensive underwriting procedures at purchase of the settlement contract, as well as through periodic underwriting review that include medical reports and life expectancy evaluations. The policies held by the Company using the investment method are expected to be owned for a shorter-term and are actively marketed to potential buyers. The market feedback received through these interactions provides the Company with information related to a potential impairment. If a policy is determined to be impaired, the Company will adjust the carrying value to the fair value determined through the impairment analysis. The Company accounts for cash proceeds from sale and maturity of life insurance settlement policies, as well as cash outflows for premium payments, as operating activities within the Consolidated Statements of Cash Flows. Going Concern Cash and Cash Equivalents highly-liquid Fair Value Measurements Level 1 Level 2 Level 3 The Company’s financial instruments consist of cash, cash equivalents, accounts receivables, due to affiliates, equity investments in privately held companies, S&P options, life settlement policies, available for sale securities, market-indexed debt and secured borrowings. Cash, cash equivalents, accounts receivables, and due to affiliates are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Equity investments in privately held companies without readily determinable fair values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available. Available-for-sale S&P options are recognized at fair value using quoted market prices in active markets, with changes in fair value included in net income. Market-indexed debt is measured on a quarterly basis, with qualifying changes in fair value recognized in net income, except for the portion of the total change in the fair value of the liability that results from a change in the instrument-specific credit risk, which is separately included in other comprehensive income in accordance with ASC 825-10-45-5. Related party receivables Other Investments Available-For-Sale available-for-sale available-for-sale Available-for-Sale Other Noncurrent Assets, at fair value Concentrations available-for-sale nsu Two related party customers accounted for 75% and 16% of the total accounts receivable as of December 31, 2022 and two related party customers accounted for 51% and 49% as of December 31, 2021. The largest receivables balances are from related parties where exposed credit risk is low. As such, there is no allowance for doubtful accounts as of December 31, 2022 and December 31, 2021. One customer accounted for 51% of active management revenue, while 22% of revenue related to two policies that matured that were accounted for under the investment method for the year-ended December 31, 2022. Two related party customers each accounted for 28% of the portfolio servicing revenue for the year ended December 31, 2022. Three customers accounted for 29%, 29% and 20% of the total revenues for the year ended December 31, 2021, respectively. Property and Equipment, Net Estimated Useful Life Furniture and fixtures 5 years Leasehold improvements Shorter of remaining lease term or estimated useful life Expenditures for maintenance and repairs that do not extend the useful lives of property and equipment are expensed as incurred. Upon retirement or sale of assets, the cost and related accumulated depreciation are written off and any resulting gain or loss is reflected in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Property and equipment are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of property and equipment is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. There were no impairments recognized during the years ended December 31, 2022 and 2021, respectively. Property and equipment to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Revenue Recognition Portfolio Servicing Revenue — and ensuring timely payment of optimized premiums computed to derive maximum return on maturity of the policy. The company neither assumes the ownership of the contracts nor undertakes the responsibility to make the premium payments, which remains with the owner of the policy. These service arrangements have contractual terms typically ranging from one-month Under consulting engagements, the Company provides services typically for the owners of life settlement contracts who are often customers of the servicing business line, or customers of Abacus. These consulting engagements are comprised of valuation, actuarial services, and overall policy assessments related life settlement contracts and are short-term in nature. The performance obligations are typically identified as separate services with a specific deliverable or a group or deliverables to be provided in tandem, as agreed to in the engagement letter or contract. Each service provided under a contract is considered as a performance obligation and revenue is recognized at a point in time when the deliverable or group of deliverables is transferred to the customer. Active Management Revenue — Other Consideration — Cost to Obtain and Fulfill Contracts — Segments Income Taxes S-corporation C- C-corporations For LMATT Series 2024, Inc. taxes on earnings are based on pretax financial accounting income (losses). The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step The Company recognizes interest and penalties as a component of income tax expense. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Leases Leases The Company has one lease for office space in Orlando, FL that is accounted for as an operating lease and goes through July 31, 2024. The Company is responsible for utilities, maintenance, taxes and insurance, which are variable payments based on a reimbursement to the lessor of the lessor’s costs incurred. The Company excludes variable lease payments from the measurement of lease liabilities and right-of-use non-lease The Company has elected the short-term lease exemption, which permits the Company to not recognize a lease liability and ROU asset for leases with an original term of one year or less. Currently the Company does not have any short-term leases. The Company’s current lease includes a renewal option. The Company has determined that the renewal option is not reasonably certain of exercise based on an evaluation of contract, market and asset-based factors, and therefore does not include periods covered by renewal options in its lease term. The Company’s leases generally do not include purchase options, residual value guarantees, or material restrictive covenants. The Company determines its lease liability and ROU by calculating the present value of future lease payments. The present value of future lease payments is discounted using the Company’s incremental borrowing rate. As the Company’s leases generally do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on market yields and comparable credit ratings, adjusted for lease term, to determine the present value of fixed lease payments based on information available at the lease commencement date. The Company does not have any finance leases, nor is the Company a lessor (or sublessor). See Note 16 for additional disclosures related to leases. Earnings Per Unit pr e per-unit |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Use of Estimates Going Concern Cash and Cash Equivalents Related party receivables Other receivables The Company provides an allowance for credit losses equal to the estimated collection losses that will be incurred in collection of all receivables. Management determines the allowance for credit losses based on a review of outstanding receivables, historical collection experience, current economic conditions, and reasonable and supportable forecasts. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is deemed remote. The Company does not have any material allowance for credit losses as of December 31, 2022 or December 31, 2021. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company did not record material allowance for credit losses as of December 31, 2022 and December 31, 2021, respectively. Concentrations The Company maintains cash deposits with a major bank which from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institution and believes that the risk of loss is minimal. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying Balance Sheet. The Company extends different levels of credit to its customers and maintains allowance for credit loss accounts based upon the expected collectability of accounts receivable. The Company’s procedures for determining this allowance includes evaluating individual customer receivables, considering a customer’s financial condition, monitoring credit history and current economic conditions, using historical experience applied to an aging of accounts, and reasonable and supportable forecasts. Property and Equipment—Net Years Computer equipment 5 Office furniture 5 Expenditures for repairs and maintenance are charged to expense in the period incurred. When items of property and equipment are sold or retired, the related costs and accumulated depreciation are removed from the accounts. The difference between the net book value of the assets and proceeds from disposal is recognized as a gain or loss on disposal, which is included in other income), in the statements of operations and comprehensive (loss) income. Property and equipment are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of property and equipment is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. There were no impairments recognized during the years ended December 31, 2022 and 2021, respectively. Property and equipment to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Intangible Assets—Net Internal-Use Software State security deposit and Certificate of Deposit Fair Value Measurements Level 1 Level 2 Level 3 The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, premiums, commissions and fees receivable, premiums payable and accrued expenses and other current liabilities, approximate their fair values because of the short period of time to maturity and liquidity of those instruments. Revenue Recognition commissions received and the reimbursement of transaction costs. For revenue disaggregation based upon the source of the policy, see disclosure in Note 8—Revenue. The Company’s revenue-generating arrangements are within the scope of ASC 606, Revenue from Contracts with Customers For agent and broker commissions received and transaction costs reimbursed, the Company has determined that it is acting as the principal in the relationship as it maintains control of the services being performed as part of performance obligation prior to facilitating the transfer of the life settlement policy to the investor. While the origination fees are fixed amounts based on the face value of the policy death benefit, there is variable consideration present due to the owners recission right. When variable consideration is present in a contract, the Company estimates the amount of variable consideration to which it expects to be entitled at contract inception and again at each reporting period until the amount is known. The entity applies the variable consideration constraint so that variable consideration is included in the transaction price only to the extent it is probable that a subsequent change in estimate will not result in a significant revenue reversal. While origination fees are variable due to the recission periods, given that the recission periods are relatively short in nature, the Company has concluded that such fees are fully constrained until the rescission period lapses and thus records revenue at a fixed amount based on the face value of the policy death benefit after the recission period is over. Cost to Obtain or Fulfill Contracts Contract Balances Commissions Segment Income Taxes The Company records uncertain tax positions in accordance with ASC 740, Income Taxes The Company recognizes interest and penalties as a component of income tax expense. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Advertising Leases Leases In April 2022, the Company entered into an agreement to lease additional office space in Orlando, Florida from a vendor. The lease commenced on May 1, 2022 and goes through October 30, 2023. Historically, the Company’s lease portfolio consisted of a single lease of office space in Orlando, Florida, which is accounted for as an operating lease. In April 2021, the lease was modified to expand the office space leased by the Company and also extend the term of the lease through July 31, 2024. The Company is responsible for utilities, maintenance, taxes and insurance, which are variable payments based on a reimbursement to the lessor of the lessor’s costs incurred. The Company excludes variable lease payments from the measurement of lease liabilities and right-of-use(“ROU”) assets recognized on the Company’s balance sheets. Variable lease payments are recognized as a lease expense on the Company’s statements of operations and comprehensive (loss) income in the period incurred. The Company has elected the practical expedient to account for lease components and non-lease components together as a single lease component for its real estate leases noted above. The Company has elected the short-term lease exemption, which permits the Company to not recognize a lease liability and ROU asset for leases with an original term of one year or less. Currently, the Company does not have any short-term leases. The Company’s current lease includes a renewal option. The Company has determined that the renewal option is not reasonably certain of exercise based on an evaluation of contract, market and asset-based factors, and therefore does not include periods covered by renewal options in its lease term. The Company’s leases generally do not include purchase options, residual value guarantees, or material restrictive covenants. The Company determines its lease liability and ROU by calculating the present value of future lease payments. The present value of future lease payments is discounted using the Company’s incremental borrowing rate. As the Company’s leases generally do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on market yields and comparable credit ratings, adjusted for lease term, to determine the present value of fixed lease payments based on information available at the lease commencement date. The Company does not have any finance leases, nor is the Company a lessor (or sublessor). See Note 14 for additional disclosures related to leases. Earnings Per Unit |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | 3. BUSINESS COMBINATION Merger consideration conveyed of $531.8 million was allocated between the Companies based on relative values derived through both the discounted cash flow method within the income approach and the guideline public company method within the market approach. Within the discounted cash flow method, the present values of cash flows reasonably expected to be produced by the Companies from their operations were summed to produce an estimate of the Companies’ business enterprise values on a controlling, marketable basis. The cash flows used in the discounted cash flow analysis were discounted at the weighted average cost of capital of 14.5% for LMA and 16.5% for Abacus. The discou nte business enterprise value range of $380.0 million to $460.0 million for LMA and $180.0 million to $195.0 million for Abacus. Within the market approach, Company applied the guideline public company method, which employs market multiples derived from market prices of stocks of Companies that are engaged in the same or similar lines of business as the Companies and that are actively traded on a free and open market. The guideline public company method resulted in a business enterprise value range of $400.0 million to $440.0 million for LMA and $180.0 million to $190.0 million for Abacus. Management concluded on a business enterprise value of $165.4 million for Abacus and $366.4 million for LMA based upon the relative fair value of the Companies allocated to the consideration transferred. The preliminary purchase price was allocated among the identified assets to be acquired. The primary area of the acquisition accounting that is not yet finalized is our estimate of the impact of acquisition accounting on deferred income taxes. An estimate of deferred income taxes has been recorded in the Company’s books based on information available as of September 30, 2023. As the initial acquisition accounting is based on our preliminary assessments, actual values may differ when final information becomes available. We believe that the information gathered to date provides a reasonable basis for estimating the preliminary values of deferred taxes recorded. We will continue to evaluate this item until it is satisfactorily resolved and adjust our acquisition accounting accordingly, within the allowable measurement period, as defined by ASC Topic 805, Business Combinations, All valuation procedures related to existing assets as no new assets were identified as a result of procedures performed. Goodwill was recognized as a result of the acquisition, which represents the excess fair value of consideration over the fair value of the underlying net assets, largely arising from the extensive industry expertise that has been established by Abacus. This was considered appropriate based on the determination that the Abacus Merger would be accounted for as a business acquisition under ASC 805. Net Assets Identified Fair Value Intangibles $ 32,900,000 Goodwill 140,287,000 Current Assets 1,280,100 Non-Current Assets 901,337 Deferred Tax Liabilities (8,310,966 ) Accrued Expenses (524,400 ) Other Liabilities (1,171,739 ) Total Fair Value $ 165,361,332 Value Conveyed Amount Abacus Purchase Consideration $ 165,361,332 LMA Business Enterprise Value $ 366,388,668 Total Consideration $ 531,750,000 Intangible assets were comprised of the following: Asset Type Fair Value Useful Life Valuation Methodology Customer Relationships-Agents $ 12,600,000 5 years Multi-period excess earnings method Customer Relationships-Financing Entities 11,000,000 8 years Multi-period excess earnings method Internally Developed and Used Technology-APA 1,600,000 2 years Relief from royalty method Internally Developed and Used Technology-Marketplace 100,000 3 years Replacement cost method Trade Name 900,000 Indefinite Relief from royalty method Non-Compete Agreements 4,000,000 2 years With and without method State Insurance Licenses 2,700,000 Indefinite Replacement cost method Total Fair Value $ 32,900,000 Useful lives for customer relationships were developed using attrition data for agents and financing entities which resulted in a useful life of 5 years and 8 years, respectively. Estimates over the useful lives of internally developed and used technology contemplates the period in which the Company expects to utilize the technology and the length of time the technology is expected to maintain recognition and value in the market without significant investment. Non-compete agreements have a useful life commensurate with the executed non-compete agreements in place as a result of the Business Combination. The supplemental pro forma financial information in the table below summarizes the combined results of operations for the Business Combination as if the Companies were combined as of January 1, 2022. The unaudited supplemental pro forma financial information as presented below is for illustrative purposes and does not purport to represent what the results of operations would actually have been if the business combinations occurred as of the date indicated or what the results would be for any future periods. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Proforma revenue $ 21,120,930 $ 17,538,734 $ 55,890,580 $ 48,830,191 Proforma net income 1,050,972 10,232,457 14,424,416 22,427,585 |
LIFE INSURANCE SETTLEMENT POLIC
LIFE INSURANCE SETTLEMENT POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | ||
LIFE INSURANCE SETTLEMENT POLICIES | 4. LIFE INSURANCE SETTLEMENT POLICIES As of September 30, 2023, the Company holds 240 life settlement policies, of which 228 are accounted for under the fair value method and 12 are accounted for using the investment method (cost, plus premiums paid). Aggregate face value of policies held at fair value is $303,605,030 as of September 30, 2023, with a corresponding fair value of $83,585,374. The aggregate face value of policies accounted for using the investment method is $37,300,000 as of September 30, 2023, with a corresponding carrying value of $4,116,499. As of December 31, 2022, the Company held 53 life settlement policies, of which 35 were accounted for under the fair value method and 18 were accounted for using the investment method (cost, plus premiums paid). Aggregate face value of policies held at fair value was 40,092,154 as of December 31, 2022, with a corresponding fair value of 13,809,352. The aggregate face value of policies accounted for using the investment method was 42,330,000 as of December 31, 2022, with a corresponding carrying value of 8,716,111. At September 30, 2023, the Company did not have any contractual restrictions on its ability to sell policies, including those held as collateral for the issuance of long-term debt. Refer to Note 11, Long-Term Debt, for further details. Life expectancy reflects the probable number of years remaining in the life of a class of persons determined statistically, affected by such factors as heredity, physical condition, nutrition, and occupation. It is not an estimate or an indication of the actual expected maturity date or indication of the timing of expected cash flows from death benefits. The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of September 30, 2023: Policies Carried at Fair Value— Remaining Life Expectancy (Years) Policies Face Value Fair Value 0-1 0 $ — $ — 1-2 8 10,639,000 8,018,927 2-3 13 26,725,000 8,912,395 3-4 36 69,378,938 28,670,576 4-5 26 22,391,998 8,115,654 Thereafter 145 174,470,094 29,867,822 228 $ 303,605,030 $ 83,585,374 Policies accounted for using the investment method— Remaining Life Expectancy (Years) Number of Face Value Carrying 0-1 0 $ — $ — 1-2 1 500,000 329,714 2-3 2 1,500,000 437,775 3-4 1 8,000,000 82,869 4-5 2 500,000 320,110 Thereafter 6 26,800,000 2,946,031 12 $ 37,300,000 $ 4,116,499 Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of September 30, 2023, are as follows: 2023 remaining $ 59,184 2024 411,445 2025 403,224 2026 97,789 2027 71,775 Thereafter 654,558 Total $ 1,697,975 The Company is required to pay premiums to keep its portion of life insurance policies in force. The estimated total future premium payments could increase or decrease significantly to the extent that actual mortalities of insureds differ from the estimated life expectancies. For policies accounted for under the investment method, the Company has not been made aware of information causing a material change to assumptions relating to the timing of realization of life insurance settlement proceeds. We have also not been made aware of information indicating impairment to the carrying value of policies. | 3. LIFE INSURANCE SETTLEMENT POLICIES As of December 31, 2022, the Company holds 53 life settlement policies, of which 35 are accounted for under the fair value method and 18 are accounted for using the investment method (cost, plus premiums paid). Aggregate face value of policies held at fair value is approximately $40,092,154 as of December 31, 2022, with a corresponding fair value of approximately $13,809,352. Aggregate face value of policies accounted for using the investment method is $42,330,000 as of December 31, 2022, with a corresponding carrying value of approximately $8,716,111. As of December 31, 2021, the Company did not own life settlement policies. As such, information herein has been presented only for the Consolidated Balance Sheet date of December 31, 2022. As of December 31, 2022, the Company did not have any contractual restrictions on its ability to sell policies, including those held as collateral for the issuance of long-term debt. See footnote 11. Long-Term Debt. Life expectancy reflects the probable number of years remaining in the life of a class of persons determined statistically, affected by such factors as heredity, physical condition, nutrition, and occupation. It is not an estimate or an indication of the actual expected maturity date or indication of the timing of expected cash flows from death benefits. The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of December 31, 2022: Policies Carried at Fair Value— Remaining Life Expectancy (Years) Number of Life Face Value Fair Value 0-1 — $ — $ — 1-2 1 200,000 160,000 2-3 11 3,085,549 2,274,406 3-4 1 2,200,000 1,406,451 4-5 1 1,000,000 526,416 Thereafter 21 33,606,605 9,442,079 35 $ 40,092,154 $ 13,809,352 Policies accounted for using the investment method— Remaining Life Expectancy (Years) Number of Life Face Value Carrying 0-1 1 $ 3,000,000 $ 1,220,000 1-2 1 500,000 327,683 2-3 2 2,000,000 1,039,088 3-4 1 500,000 260,000 4-5 2 3,850,000 845,000 Thereafter 11 32,480,000 5,024,340 18 $ 42,330,000 $ 8,716,111 Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of December 31, 2022, are as follows: 2023 $ 799,201 2024 896,961 2025 895,559 2026 981,749 2027 1,096,323 Thereafter 4,197,118 Total $ 8,866,912 The Company is required to pay premiums to keep its portion of life insurance policies in force. The estimated total future premium payments could increase or decrease significantly to the extent that actual mortalities of insureds differ from the estimated life expectancies. For policies accounted for under the investment method, the Company has not been made aware of information causing a material change to assumptions relating to the timing of realization of life insurance settlement proceeds. We have also not been made aware of information indicating impairment to the carrying value of policies. |
PROPERTY AND EQUIPMENT-NET
PROPERTY AND EQUIPMENT-NET | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT-NET | 5. PROPERTY AND EQUIPMENT-NET Property and equipment-net composed of the following: September 30, December 31, Computer equipment $ 240,922 $ — Furniture and fixtures 28,144 19,444 Leasehold improvements 7,726 5,902 Property and equipment—gross 276,792 25,346 Less: accumulated depreciation (14,911 ) (6,729 ) Property and equipment—net $ 261,882 $ 18,617 Depreciation expense for the three months ended September 30, 2023 and 2022, was $12,770 and $1,070, respectively and depreciation expense for the nine months ended September 30 , | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net comprised of the following: As of As of December 31, 2022 December 31, 2021 Furniture and fixtures $ 19,444 $ 19,444 Leasehold improvements 5,902 5,902 Property and equipment—gross 25,346 25,346 Less: accumulated depreciation (6,729 ) (2,447 ) Property and equipment—net $ 18,617 $ 22,899 Depreciation expense for the years ended December 31, 2022 and 2021 was $4,282 and $2,447, respectively. |
Abacus Settlements, LLC | ||
PROPERTY AND EQUIPMENT-NET | 4. PROPERTY AND EQUIPMENT—NET Property and equipment, net consists of the following: 2022 2021 Computer equipment $ 91,993 $ 45,172 Office furniture 68,778 54,069 Leasehold improvement 2,569 — Total property and equipment 163,340 99,241 Less: accumulated depreciation (91,122 ) (65,938 ) Property and equipment—net $ 72,218 $ 33,303 Depreciation expense recorded for property and equipment was $25,184 and $18,651, of which $13,019 and $8,512 has been included in cost of sales, for the years ended December 31, 2022 and 2021, respectively. |
INTANGIBLE ASSETS—NET
INTANGIBLE ASSETS—NET | 12 Months Ended |
Dec. 31, 2022 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |
INTANGIBLE ASSETS—NET | 5. INTANGIBLE ASSETS—NET Intangible assets—net, consist of the following: 2022 2021 Software $ 241,664 $ 226,664 Less: accumulated amortization 92,731 12,593 Intangible assets—net $ 148,933 $ 214,071 Amortization expense for the year ended December 31, 2022 and 2021 amounted to $80,138 and $12,593, respectively, and has been included in cost of s |
ACCRUED PAYROLL AND OTHER EXPEN
ACCRUED PAYROLL AND OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |
ACCRUED PAYROLL AND OTHER EXPENSES | 6. ACCRUED PAYROLL AND OTHER EXPENSES The Company’s accrued payroll and other expenses were as follows: 2022 2021 Accrued payroll $ 224,168 $ 188,529 Accrued credit card fees 235,680 172,189 Other expenses 82,018 150,128 Total accrued payroll and other expenses $ 541,866 $ 510,846 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES Legal Proceedings Commitment For the three months ended September 30, 2023, Abacus Life, Inc. did | 9. COMMITMENTS AND CONTINGENCIES Legal Proceedings — Commitment — Since inception of the Expense Support Agreement on January 1, 2021, through December 31, 2021, ABL had incurred $120,000 related to initial funding of operations, which were subsequently reimbursed and $0 related to expenses. For the year-ended December 31, 2022, ABL incurred $347,013 of expenses related to the Expense Support Agreement, which is included in the Other Expense line of the Consolidated Statements of Operations and Comprehensive Income (Loss) and have not been reimbursed by the Providers. |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Legal Proceedings Letter of credit The other |
REVENUE
REVENUE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
REVENUE | 8. REVENUE Remaining performance obligation Disaggregated Revenue 2022 2021 Agent $ 12,156,552 $ 7,668,256 Broker 9,938,808 11,378,713 Client direct 3,108,103 3,545,175 Total $ 25,203,463 $ 22,592,144 Contract Balances 2022 2021 Contract liabilities—beginning of year $ 1,678,791 $ 1,068,250 Additions to Contract Liabilities 322,150 1,678,791 Recognition of revenue deferred in the prior year (1,678,791 ) (1,068,250 ) Contract liabilities—end of year $ 322,150 $ 1,678,791 | |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
REVENUE | 4. REVENUE Disaggregated Revenue- Three Months Ended 2023 Three Months Ended September 30, 2022 Six Months Ended 2023 Nine Months Ended September 30, 2022 Agent $ 3,334,402 $ 2,982,371 $ 7,143,016 $ 8,673,072 Broker 2,809,499 2,128,912 4,675,973 7,856,882 Client direct 740,789 920,197 1,365,687 2,516,190 Total $ 6,884,690 $ 6,031,480 $ 13,184,676 $ 19,046,144 |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
INCOME TAXES | 17. INCOME TAXES Before June 30, 2023, the Company elected to file as an S corporation for Federal and state income tax purposes, as such, the Company incurred no Federal or state income taxes, except for income taxes related to their consolidated variable interest entities and subsidiaries which are taxable C corporations. These VIE’s and subsidiaries include LMATT Series 2024, Inc., the wholly owned subsidiary of LMX, which is consolidated into LMA as a VIE, as well as LMATT Growth Series 2.2024, Inc., a wholly owned subsidiary of LMATT Growth Series, Inc., and LMATTS Growth and Income Series 1.2026, Inc., a wholly owned subsidiary of LMATT Growth and Income Series, Inc., all of which are 100% owned subsidiaries and fully consolidated. Accordingly, the provision for income taxes was attributable to amounts for LMATT Series 2024, Inc, LMATT Growth Series, Inc. and LMATT Growth and Income Series, Inc. For the three months ended September 30, 2023 and 2022, the Company recorded provision for income taxes of $1,710,315 and $352,081, respectively. The effective tax rate is 61.9% for the three months ended September 30, 2023 primarily driven by non-deductible equity compensation expense and the impact of non-taxable flow-through entities. The effective rate for the three months ended September 30, 2022 was 3.3% due to the impact of state income taxes and the release of the Company’s valuation allowance, as there was sufficient evidence of the Company’s ability to generate future taxable income at September 30, 2022. For the nine months ended September 30, 2023 and 2022, the Company recorded provision for income taxes of $2,238,419 and $648,887, respectively. The effective tax rate is 12.7% for the nine months ended September 30, 2023. The existence of non-taxable flow-through entities within the Company as well as a change in tax status of certain entities upon the Business Combination caused the effective tax rate to vary from the statutory rate. The effective rate for the nine months ended September 30, 2022 was 2.8% due to the impact of state income taxes and the release of the Company’s valuation allowance, as there was sufficient evidence of the Company’s ability to generate future taxable income at September 30, 2022. The Company did not have any unrecognized tax benefits relating to uncertain tax positions as of September 30, 2023, and December 31, 2022, and did not recognize any interest or penalties related to uncertain tax positions as of September 30, 2023, and December 31, 2022. | 14. INCOME TAXES As the Company elected to file as an S corporation for Federal and state income tax purposes, the Company incurred no Federal or state income taxes, except for income taxes recorded related to some of their consolidated variable interest entities and subsidiaries which are taxable C corporations. These VIE’s and subsidiaries include LMATT Series 2024, Inc., the wholly owned subsidiary of LMX Series, LLC., which is consolidated into LMA as a VIE, as well as LMATT Growth Series 2.2024, Inc., a wholly owned subsidiary of LMATT Growth Series, Inc. and LMATT Growth and Income Series 1.2026, Inc., a wholly owned subsidiary of LMATT Growth and Income Series, Inc., which are 100 The components of provision for income taxes are as follows: December 31, 2022 December 31, 2021 Current provision: Federal $ — $ — State — — Foreign — — Total current tax — — Deferred provision (benefit): Federal 737,376 — State 152,567 — Foreign — — Total deferred tax 889,943 — Provision for income taxes $ 889,943 — For the years ended December 31, 2022 and 2021, the income tax expense differs from the provision that would result from applying federal and state statutory tax rates to income before income taxes due to the Company’s S corporation election recognized for federal and state purposes. For LMATT Series 2024, Inc., LMATT Growth Series, Inc. and LMATT Growth and Income Series, Inc., the Company recognized $889,943 of provision related to income taxes for the year ended December 31, 2022. For the year ended December 31, 2021, the Company recognized no provision related to income taxes for LMATT Series 2024, Inc. because the Company incurred operating losses and maintained a full valuation allowance against its net deferred tax assets. The effective income tax rate differs from the federal statutory income tax rate applied to the profit loss before provision for income taxes due to the following: Year Ended Year Ended Income tax benefit computed at federal statutory rate $ 6,988,153 $ (28,058 ) Effect of pass through entities $ (6,147,068 ) $ (75,650 ) State taxes, net of federal benefit 174,024 (21,458 ) Valuation allowance (125,166 ) 125,166 Income tax benefit at effective tax rate $ 889,943 $ — The effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows: Year Ended Year Ended December 31, 2022 December 31, 2021 Deferred tax assets: Net operating loss carryforwards $ 167,554 $ 125,166 Basis Difference in Life Insurance Contracts $ 109,903 Other — — Gross deferred tax assets 277,457 125,166 Less: valuation allowance — (125,166 ) Total deferred tax assets 277,457 — Deferred tax liabilities: Unrealized Gain (1,641,277 ) — Other — — Gross deferred tax liabilities (1,641,277 ) — Deferred tax liabilities—net of allowance $ (1,363,820 ) $ — The components of the Company’s net deferred tax asset are subject to realizability analysis in accordance with ASC 740. The establishment of a valuation allowance is based on consideration of all available evidence, both positive and negative, concerning the expectation of future realization, including, among other items: historical operating results; forecasts of future operations; the duration of statutory carryforward periods; experience with tax attributes expiring unused; future reversals of existing taxable temporary differences and tax planning alternatives. In making such judgments, greater weight is given to evidence that can be objectively verified. Based on this analysis, the Company determined that sufficient positive evidence existed as of December 31, 2022 to support releasing the valuation allowance recorded against net operating loss tax attributes at December 31, 2021. The Company has $661,092 of Federal Net Operating Losses and $661,092 State Net Operating Losses that can be carried forward indefinitely. The Federal Net Operating Losses may be used to offset 80% of taxable income in a given year. The Company did not have any unrecognized tax benefits relating to uncertain tax positions at December 31, 2022 and 2021 and did not recognize any interest or penalties related to uncertain tax position at December 31, 2022 and 2021. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Consolidated Statements of Operations and Comprehensive Income during 2023. |
Abacus Settlements, LLC | ||
INCOME TAXES | 9. INCOME TAXES Since the Company elected to file as an S-corporation for Federal and State income tax purposes, the Company incurred no Federal or State income taxes. Accordingly, tax expense is attributable to minimum state tax payments that are due regardless of their S-corporation status and income position. The components of expense for income taxes for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 State income taxes: Current $ 2,018 $ 1,200 Deferred — — Expense for income taxes $ 2,018 $ 1,200 This expense solely relates to state minimum tax for state taxes that have been paid and settled during the respective years shown above. For the years ended December 31, 2022 and 2021, the income tax expense differs from the provision that would result from applying state statutory tax rates to the income before income taxes due to the Company’s S-corporation election. A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: Tax at federal statutory rate 21.00 % 21.00 % State taxes, net of federal benefit (4.00 ) 0.12 U.S. income attributable to pass-through entity (21.00 ) (21.00 ) Effective income tax rate (4.00 )% 0.12 % The Company did not have any unrecognized tax benefits relating to uncertain tax positions at December 31, 2022 and 2021 and did not recognize any interest or penalties related to uncertain tax position at December 31, 2022 and 2021. Given the company’s S-Corporation status, temporary book and tax differences do not create a deferred tax asset or liability on the balance sheets. Accordingly, an assessment of realizability of any deferred tax asset balances is not relevant. On March 27, 2020, the CARES Act was enacted. The CARES Act includes provisions, among others, addressing the carryback of net operating losses for specific periods, refunds of alternative minimum tax credits, temporary modifications to the limitations placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property. Additionally, the CARES Act provides for various payroll incentives, including PPP loans, refundable employee retention tax credits, and the deferral of the employer-paid portion of social security payroll taxes. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill of $140,287,000 was recognized as a result of the Business Combination, which represents the excess fair value of consideration over the fair value of the underlying net assets, largely arising from the extensive industry expertise that has been established by Abacus. This was considered appropriate based on the determination that the Abacus Merger would be accounted for as a business acquisition under ASC 805. The estimates of fair value are based upon preliminary valuation assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. Refer to Note 3, Business Combination, for further details. The changes in the carrying amount of goodwill by reportable segments were as follows: Portfolio Servicing Active Management Originations Goodwill at January 1, 2023 $ — $ — $ — Additions — — 140,287,000 Goodwill at September 30, 2023 $ — $ — $ 140,287,000 Intangible Assets Acquired comprised of the following: Asset Type Fair Value Useful Life Valuation Methodology Customer Relationships—Agents $ 12,600,000 5 years Multi-period excess-earnings method Customer Relationships—Financial Relationships 11,000,000 8 years Multi-period excess-earnings method Internally Developed and Used Technology-APA 1,600,000 2 years Relief from Royalty Method Internally Developed and Used Technology-Market Place 100,000 3 years Replacement Cost Method Trade Name 900,000 Indefinite Relief from Royalty Method Non-Compete Agreements 4,000,000 2 years With or Without Method State Insurance Licenses 2,700,000 Indefinite Replacement Cost Method $ 32,900,000 Intangible assets and related accumulated amortization as of September 30, 2023 and December 31,2022 are as follows: September 30, 2023 Definite Lived Intangible Assets: Gross Value Accumulated Net Book Customer Relationships—Agents $ 12,600,000 $ 630,000 $ 11,970,000 Customer Relationships—Financial Relationships 11,000,000 343,750 10,656,250 Internally Developed and Used Technology-APA 1,600,000 200,000 1,400,000 Internally Developed and Used Technology-Market Place 100,000 8,333 91,667 Non-Compete Agreements 4,000,000 500,000 3,500,000 Balance at September 30, 2023 $ 29,300,000 $ 1,682,083 $ 27,617,917 Indefinite Lived Intangible Assets: Trade Name 900,000 — 900,000 State Insurance Licenses 2,700,000 — 2,700,000 Total Intangible Asset Balance at September 30, 2023 $ 32,900,000 $ 1,682,083 $ 31,217,917 Substantially all intangible assets with finite useful lives are subject to amortization when they are available for their intended use. Amortization expense for definite lived intangible assets was $1,682,083 and $0 for the three months ended September 30, 2023 and 2022, respectively, and $1,682,083 and $0 for the nine months ended September 30, 2023 and 2022, respectively. Estimated annual amortization of intangible assets for the next five years ending December 31 and thereafter is as follows: Remainder of 2023 $ 1,682,083 2024 6,728,333 2025 5,328,333 2026 3,911,667 2027 3,895,000 Thereafter 6,072,501 Total $ 27,617,917 |
AVAILABLE-FOR-SALE SECURITIES,
AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE | 7. AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE Convertible Promissory Note In October 2022, the Company purchased an additional convertible promissory note in the same unrelated insurance technology company for $500,000 as part of the Tranche 6 offering (“Tranche 6 Promissory Note” and collectively, the “Convertible Promissory Notes”). The Tranche 6 Promissory Note pays eight percent (8 The Company applies the available-for-sale method of accounting for its investment in the Convertible Promissory Note, which is a debt investment. The Convertible Promissory Note does not qualify for either the held-to-maturity method due to the Convertible Promissory Note’s conversion rights or the trading securities method because the Company holds the Convertible Promissory Note as a long-term investment. The Convertible Promissory Notes are measured at fair value at each reporting period-end. Unrealized gains and losses are reported in other comprehensive income until realized. As of December 31, 2022 and September 30, 2023, the Company evaluated the fair value of its investment and determined that the fair value approximates the carrying value of $1,000,000 and there was no unrealized gain or loss recorded. | 5. AVAILABLE-FOR-SALE Convertible Promissory Note In October 2022, the Company purchased a convertible promissory note in the same unrelated insurance technology company for $500,000 as part of the Tranche 6 Maturity Date unless the Tranche 6 Promissory Note converts prior to the 2024 Maturity Date. Conversion into preferred shares occurs if the technology company engages in an additional equity financing event that yields gross cash proceeds in excess of $5,000,000 (“Next Round Securities”). The Company applies the available-for-sale held-to-maturity |
OTHER INVESTMENTS AND OTHER NON
OTHER INVESTMENTS AND OTHER NONCURRENT ASSETS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
OTHER INVESTMENTS AND OTHER NONCURRENT ASSETS | 8. OTHER INVESTMENTS AND OTHER NONCURRENT ASSETS Other Investments: Convertible Preferred Stock Ownership On July 22, 2020, the Company purchased 224,551 units of an unrelated insurance technology company’s Series Seed Preferred units for $750,000 (“Seed Units”). During December 2022, the Company agreed to purchase 119,760 Series Seed Preferred Units for $400,000 in cash consideration by way of eight monthly payments of $50,000 starting December 15, 2022, resulting in a total of $950,000 investment as of March 31, 2023, $1,100,000 investment as of June 30, 2023 and $1,150,000 investment at September 30, 2023. Upon conversion, the Seed Units held by the Company would represent 8.6% control in the technology company. On December 21, 2020, the Company purchased 207,476 shares of a separate unrelated insurance technology company’s Series B-1 preferred stock for $500,000 (“Preferred Shares”). The Preferred Shares are convertible into voting common stock of insured consent at the option of the Company. Upon conversion, the Preferred Shares would represent less than 1% control in the technology company. The Company applies the measurement alternative for its investments in the Seed Units and Preferred Shares because these investments are of an equity nature, and the Company does not have the ability to exercise significant influence over operating and financial policies of entities even in the event of conversion of the Seed Units or Preferred Shares. Under the measurement alternative, the Company records the investment based on original cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the investee. The Company’s share of income or loss of such companies is not included in the Company’s condensed consolidated statements of operations and comprehensive income. The Company tests its investments for impairment whenever circumstances indicate that the carrying value of the investment may not be recoverable. No impairment of investments occurred for the three and nine months ended September 30, 2023 and 2022. Other Noncurrent Assets- at fair value: S&P Options — | 6. OTHER INVESTMENTS AND OTHER NONCURRENT ASSETS Other Investments: Convertible Preferred Stock Ownership — On July 22, 2020, the Company purchased 224,551 units of an unrelated insurance technology company’s Series Seed Preferred units for $750,000 (“Seed Units”). Upon conversion, the Seed Units held by the Company would represent 8.1% control in the technology company. During December 2022, the Company purchased an incremental 14,970 50,000 800,000 On December 21, 2020, the Company purchased 207,476 shares of a separate unrelated insurance technology company’s Series B-1 The Company applies the measurement alternative for its investments in the Seed Units and Preferred Shares because these investments are of an equity nature, and the Company does not have the ability to exercise significant influence over operating and financial policies of entities even in the event of conversion of the Seed Units or Preferred Shares. Under the measurement alternative, the Company records the investment based on original cost less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the investee. The Company’s share of income or loss of such companies is not included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). The Company tests its investments for impairment whenever circumstances indicate that the carrying value of the investment may not be recoverable. No impairment of investments occurred for the years ended December 31, 2022 and 2021. Other Noncurrent Assets- at fair value: S&P Options — |
CONSOLIDATION OF VARIABLE INTER
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | 9. CONSOLIDATION OF VARIABLE INTEREST ENTITIES The Company consolidates VIEs for which it is the primary beneficiary or VOEs for which it controls through a majority voting interest or other arrangement. See Note 2 for more information on how the Company evaluates an entity for consolidation. The Company evaluated any entity in which it had a variable interest upon formation to determine whether the entity should be consolidated. The Company also evaluated the consolidation conclusion during each reconsideration event, such as changes in the governing documents or additional equity contributions to the entity. During the nine months ended September 30, 2023, the Company’s consolidated VIEs, LMA Income Series II LP, LMX Series LLC (LMATT Series 2024, Inc.), and LMA Income Series, LP, had total assets of $62,831,856 and liabilities of $56,775,736. For the year ended December 31, 2022, the Company’s consolidated VIEs, LMATT Series 2024, Inc., Longevity Market Advisors, Regional Investment Services and LMA Income Series, LP, had total assets and liabilities of $30,073,972 and $27,116,762, respectively. The Company did not deconsolidate any entities during the period ended September 30, 2023, or during the year ended December 31, 2022. As of September 30, 2023, the Company held total assets of $824,375 and liabilities of $191,632, in unconsolidated VIEs. As of December 31, 2022, the Company held total assets of $987,964 and liabilities of $358,586 in unconsolidated VIEs. | 7. CONSOLIDATION OF VARIABLE INTEREST ENTITIES The Company consolidates VIEs for which it is the primary beneficiary or VOEs for which it controls through a majority voting interest or other arrangement. See Note 2 for more information on how the Company evaluates an entity for consolidation. The Company evaluated any entity in which it had a variable interest upon formation to determine whether the entity should be consolidated. The Company also evaluated the consolidation conclusion during each reconsideration event, such as changes in the governing documents or additional equity contributions to the entity. During the year ended December 31, 2022, the Company consolidated LMX, Longevity Market Advisors and LMA Income Series, LP, which had total assets and liabilities of $30,073,972 and $27,116,762. For the year ended December 31, 2021, the Company’s consolidated LMX, which had total assets and liabilities of $400 and $0, respectively. The Company did not deconsolidate any entities during the year ended December 31, 2022 or December 31, 2021. For the year ended December 31, 2022, the Company held total assets of $987,964 and liabilities of $358,586, in unconsolidated VIE’s. As of December 31, 2021, the Company held total assets of $596,567 and liabilities of $2,218 in unconsolidated VIE’s. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
SEGMENT REPORTING | 10. SEGMENT REPORTING Segment Information This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision maker (CODM), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting The Portfolio Servicing segment generates revenues by providing policy services to customers on a contract basis. The Active Management segment generates revenues by buying, selling, and trading policies and maintaining policies until receipt of death benefits. The Originations segment generates revenue by originating life insurance policy settlements between investors or buyers, and the sellers, who is often the original policy owner. The policies are purchased from owners or other providers through advisors, brokers or directly through the owner. The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review asset information related to investments nor expenditures incurred for long-lived assets given the Company’s investments are recognized using the measurement alternative, and the Company’s long-lived assets are immaterial to the condensed consolidated financial statements. Revenue related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023, and September 30, 2022, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Portfolio servicing $ 224,569 $ 382,245 $ 814,626 $ 1,372,573 Active management 18,926,144 11,125,503 39,921,061 28,411,475 Originations 10,214,489 — 10,214,489 — Segment revenue (including inter-segment) 29,365,202 11,507,748 50,950,176 29,784,048 Inter-segment elimination (8,244,272 ) — (8,244,272 ) — Total revenue $ 21,120,930 $ 11,507,748 $ 42,705,904 $ 29,784,048 Information related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023 and September 30, 2022 is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Portfolio servicing $ (626,045 ) $ (106,817 ) $ (792,173 ) $ 561,935 Active management 13,856,637 9,859,671 34,144,789 25,381,144 Originations 4,525,381 — 4,525,381 — Total gross profit 17,755,973 9,752,854 37,877,997 25,943,079 Sales and marketing (1,704,154 ) (14,905 ) (3,116,999 ) (1,664,403 ) General and administrative (including stock based compensation of $4,583,632) (9,838,951 ) (59,816 ) (11,113,382 ) (706,523 ) Depreciation and amortization expense (1,694,853 ) (1,071 ) (1,696,994 ) (3,211 ) Other (expense) income 20,086 42,289 (1,565 ) (199,958 ) Loss on change in fair value of warrant liability (943,400 ) — (943,400 ) — Interest expense (2,679,237 ) — (3,620,695 ) — Interest income 63,826 — 71,283 — Gain (Loss) on change in fair value of debt 2,088,797 1,235,032 (309,865 ) 859,519 Unrealized (loss) gain on investments (306,800 ) (246,846 ) 491,356 (1,301,821 ) Provision for income taxes (1,710,315 ) (352,081 ) (2,238,419 ) (648,887 ) Less: Net gain (loss) attributable to non-controlling interests (147,611 ) (363,452 ) 339,692 (770,093 ) Net income attributable to Abacus Life, Inc. $ 903,361 $ 9,992,004 $ 15,739,009 $ 21,507,702 Segment gross profit is defined as revenues less cost of sales, excluding depreciation and amortization. Expenses below the gross profit line are not allocated across operating segments, as they relate primarily to the overall management of the consolidated entity. As of September 30, 2023 and 2022, our operations are confined to the United States. Therefore, we have not generated significant revenues or made significant capital expenditures in any geographic areas outside of the United States. | 8. SEGMENT REPORTING Segment Information This segment structure reflects the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments as well as the current operating focus in compliance with ASC 280, Segment Reporting The Portfolio Servicing segment generates revenues by providing policy services to customers on a contract basis. The Active Management segment generates revenues by buying, selling and trading policies and maintaining policies through to death benefit. The Company’s reportable segments are not aggregated. The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review asset information related to investments nor expenditures incurred for long-lived assets given the Company’s investments are recognized on a cost basis and the company’s long-lived assets are immaterial to the consolidated financial statements. Information related to the Company’s reporting segments for December 31, 2022 and December 31, 2021 is as follows: As of December 31, 2022 As of December 31, 2021 Portfolio Servicing $ 1,470,973 $ 1,079,986 Active Management 43,242,581 120,000 Total Revenue $ 44,713,553 $ 1,199,986 Portfolio Servicing $ 300,235 $ 406,093 Active Management 38,168,187 58,000 Gross profit $ 38,468,422 $ 464,093 Sales and Marketing $ (2,596,140 ) $ — General, administrative and other (1,066,403 ) (101,406 ) Other operating expenses — (493,849 ) Depreciation (4,282 ) (2,447 ) Other expense (347,013 ) — Interest (expense) (42,798 ) Interest income 1,474 Change on fair value of debt (90,719 ) — Unrealized gain(loss) on investments (1,045,623 ) — Income tax expense (889,943 ) — Net loss attributable to non-controlling (704,699 ) 148,155 Net income attributable to Longevity Market Assets, LLC $ 31,682,275 $ 14,546 |
Abacus Settlements, LLC | ||
SEGMENT REPORTING | 3. SEGMENT REPORTING Operating as a centrally-led life insurance policy intermediary, the Company’s President and Chief Executive Officer is the CODM who allocates resources and assesses financial performance based on financial information presented for the Company as a whole. As a result of this management approach, the Company is organized as a single |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS The Company determines fair value based on assumptions that market participants would use in pricing an asset or a liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 inputs: Other than quoted prices in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Recurring Fair Value Measurements Fair Value Hierarchy As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ 83,585,374 $ 83,585,374 Available-for-sale securities, at fair value — — 1,000,000 1,000,000 Other investments — — 1,650,000 1,650,000 S&P 500 options 1,494,744 — — 1,494,744 Other assets 998,469 — — 998,469 Total assets held at fair value $ 2,493,213 $ — $ 86,235,374 $ 88,728,587 Liabilities: Long-term debt $ — $ — $ 59,544,907 $ 59,544,907 Private placement warrants — — 3,382,000 3,382,000 Total liabilities held at fair value: $ — $ — $ 62,926,907 $ 62,926,907 Fair Value Hierarchy As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ 13,809,352 $ 13,809,352 Available-for-sale securities, at fair value — — 1,000,000 1,000,000 Other investments — — 1,300,000 1,300,000 S&P 500 options 890,829 — — 890,829 Total assets held at fair value $ 890,829 $ — $ 16,109,352 $ 17,000,181 Liabilities: Long-term debt $ — $ — $ 28,249,653 $ 28,249,653 Total liabilities held at fair value: $ — $ — $ 28,249,653 $ 28,249,653 Life Settlement Policies - For policies carried at fair value, the Company utilizes valuation services of a third-party actuarial firm, who values the contracts using Level 3 unobservable inputs, including actuarial assumptions, such as life expectancies and cash flow discount rates. The valuation model is based on a discounted cash flow analysis and is sensitive to changes in the discount rate used. The Company utilized a discount rate of 18% for the policies with face values under $ 2 2 2 Discount Rate Sensitivity As of September 30, 2023 Rate Adjustment Fair Value Change in +2% $ 78,288,612 $ (5,296,762 ) No change 83,585,374 -2% 89,102,871 5,517,497 Credit Exposure to Insurance Companies Carrier Percentage of Percentage of Carrier American General Life Insurance Company 11.0 % 13.0 % A+ Transamerica 14.0 % 16.0 % A The following table provides a roll forward of the fair value of life insurance policies for the nine months-ended September 30, 2023: Fair value at December 31, 2022 $ 13,809,352 Policies purchased 116,053,728 Realized gain (loss) on matured/sold policies 9,688,422 Premiums paid (2,500,623 ) Unrealized gain(loss) on held policies 14,259,665 Change in estimated fair value 21,447,464 Matured/sold policies (70,225,793 ) Premiums paid 2,500,623 Fair value at September 30, 2023 $ 83,585,374 Long-Term Debt The total change in fair value of the debt resulted in a loss of $760,457. This loss is comprised of $777,131, net of tax, which is included within accumulated other comprehensive income and $238,902 net of tax, which is included in equity of noncontrolling interests resulting from risk-adjusted valuation scenarios. The Company recognized a gain of $2,088,797 on the change in fair value of the debt resulting from risk-free valuation scenarios, which is included within (Gain)/loss on change in fair value of debt within the condensed consolidated statement of operations and comprehensive income for the three months ended September 30, 2023. The total change in fair value of the debt resulted in a gain of $1,945,461. This gain is comprised of $952,661, net of tax, which is included within accumulated other comprehensive income and $295,348 net of tax, which is included in equity of noncontrolling interests resulting from risk-adjusted valuation scenarios. The Company recognized a loss of $309,865 on the change in fair value of the debt resulting from risk-free valuation scenarios, which is included within (Gain) loss on change in fair value of debt within the condensed consolidated statement of operations and comprehensive income for the nine months ended September 30, 2023. The following table provides a roll forward of the fair value of the issued notes for the nine months ended September 30, 2023: Fair value at December 31, 2022 $ 28,249,653 Debt issued to third parties 88,618,714 Unrealized loss on change in fair value (risk-free) 309,865 Unrealized loss on change in fair value (credit-adjusted) included in OCI 1,635,596 Change in estimated fair value resulted into gain 1,945,461 Fair value at September 30, 2023 $ 118,813,828 Private Placement Warrants The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that (x) the Private Placement Warrants and the shares of Class A common stock issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions, (y) the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees and (z) the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private Placement Warrants will be entitled to registration rights. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. Private Placement Warrants were accounted for as liabilities in accordance with ASC 815-40. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented separately in the condensed consolidated statements of operations. The Private Placement Warrants were considered a Level 3 fair value measurement using a binomial lattice model in a risk-neutral framework. The binomial lattice model’s primary unobservable input utilized in determining the fair value of the Private Placement Warrants is the expected volatility of the common stock. The implied volatility as of the reporting date was derived from observable public warrant traded price provided by Bloomberg LP. The following table presents the key assumptions in the analysis: Private Placement Warrants Expected implied volatility de minimis Risk-free interest rate 4.09 % Term to expiration 5.0 years Exercise price $ 11.50 Common Stock Price $ 10.03 Dividend Yield — % Other Noncurrent Assets: S&P 500 Options Financial Instruments Measured at Fair Value on a Nonrecurring Basis Available-for-Sale Investment Other Investments Financial Instruments Where Carrying Value Approximates Fair Value | 10. FAIR VALUE MEASUREMENTS The Company determines fair value based on assumptions that market participants would use in pricing an asset or a liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 inputs: Other than quoted prices in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Recurring Fair Value Measurements As of December 31, 2022 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ 13,809,352 $ 13,809,352 Available-for-sale — — 1,000,000 1,000,000 Other Investments — — 1,300,000 1,300,000 S&P 500 options 890,829 — — 890,829 Tot assets held at fair value $ 890,829 $ — $ 16,109,352 $ 17,000,181 Liabilities: Long-term debt $ — $ — $ 28,249,653 $ 28,249,653 Fair Value Hierarchy As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ — $ — Available-for-sale — — 250,000 250,000 Other investments — — 1,250,000 1,250,000 Other non-current — — — — Tot assets held at fair value $ — $ — $ 1,500,000 $ 1,500,000 Liabilities: Long-term debt $ — $ — $ — $ — Life Settlement Policies — For policies carried at fair value, the Company utilizes valuation services of third-party actuarial firm, who value the contracts using Level 3 unobservable inputs, including actuarial assumptions, such as life expectancies and cash flow discount rates. The valuation model is based on a discounted cash flow analysis and is sensitive to changes in the discount rate used. The Company utilizes a discount rate of 12% for policy valuation, which is based on economic and company-specific factors. For life settlement policies carried using the investment method, the Company measures these at the cost of the policy plus premiums paid. The policies accounted for using the investment method totaled $8,716,111 at December 31, 2022 and $0 at December 31, 2021, respectively. Discount Rate Sensitivity As of December 31, 2022 Change in Rate Adjustment Fair Value Fair Value +2% $ 12,376,891 $ (1,432,461 ) No change 13,809,352 — -2% 15,571,704 1,762,352 Credit Exposure to Insurance Companies Carrier Face Value Fair Value Rating American General Life Insurance Company 17 % 15 % A John Hancock Life Insurance Company 31 30 A+ ReliaStar Life Insurance Company 5 10 NR Principal Life 10 10 A+ Securian Life Insurance Company 12 4 A+ The following table provides a roll forward of the fair value of life insurance as of December 31, 2022: Fair value at December 31, 2021 $ — Policies purchased 8,161,975 Realized gain on matured/sold policies 105,000 Premius Paid (433,626 ) Unrealized gain on held policies 5,742,377 Change in estimated fair value 5,413,751 Matured/sold policies (200,000 ) Premiums paid 433,626 Fair value at December 31, 2022 $ 13,809,352 Long-Term Debt (i) the S&P 500 Index price, (ii) S&P 500 Index volatility, (iii) a risk-free rate based on data published by the US Treasury, and (iv) a term assumption based on the contractual term of the LMATT Notes. The discounted cash flow analysis includes a discount rate that is based on the implied discount rate developed by calibrating a valuation model to the purchase price on the initial investment date. The implied discount rate is evaluated for reasonableness by benchmarking it to yields on actively traded comparable securities. The total change in fair value of the debt resulted in a gain of $1,778,987. This comprises of a gain of $1,052,836, net of tax, which is included within accumulated other comprehensive income and $342,994 net of tax, is included in equity of noncontrolling interests resulting from risk-adjusted valuation scenarios and a recognized a loss of $90,719 on the change in fair value of the debt resulting from risk-free valuation scenarios, which is included within Change in fair value of debt The following table provides a roll forward of the fair value of the issued as of December 31, 2022: Fair value at December 31, 2021 $ — Debt issued to third parties $ 30,028,640 Unrealized loss on change in fair value (risk-free) 90,719 Unrealized (gain) on change in fair value (credit-adjusted) (1,869,706 ) Change in estimated fair value (1,778,987 ) Fair value at December 31, 2022 $ 28,249,653 Other Noncurrent Assets: S&P 500 Options Financial Instruments Measured at Fair Value on a Nonrecurring Basis Available-for-Sale available-for-sale Available-for-sale available-for-sale Other Investments not identify any impairment indictors and determined that the carrying value of $1,300,000 and $1,250,000, respectively, is the fair value for these equity investments in privately held companies, given that there have been no observable price changes. Long-Term Debt – LMATT 1.2026 Issuance 400,000 Financial Instruments Where Carrying Value Approximates Fair Value |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
LONG-TERM DEBT | 13. LONG-TERM DEBT Outstanding principal balances of Long-term debt comprises of the following: September 30, 2023 December 31, 2022 Cost Fair value Cost Fair value Market-indexed notes: LMATT Series 2024, Inc. $ 9,866,900 $ 9,311,800 $ 9,866,900 $ 8,067,291 LMATT Series 2.2024, Inc. 2,333,391 3,027,681 2,333,391 2,354,013 LMATT Growth & Income Series 1.2026, Inc 400,000 427,284 400,000 400,000 Secured borrowing: LMA Income Series, LP 21,889,444 22,242,291 17,428,349 17,428,349 LMA Income Series II, LP 24,535,851 24,535,851 — — Unsecured borrowing: Owl Rock Credit Facility 25,000,000 25,000,000 — — SPV Purchase and Sale Note 25,750,000 25,750,000 — — Sponsor PIK Note 10,785,778 10,785,778 — — Deferred Financing Cost (2,266,858 ) (2,266,858 ) — — Total long-term debt $ 118,294,506 $ 118,813,827 $ 30,028,640 $ 28,249,653 Owl Rock Credit Facility On July 5, 2023 (the “Owl Rock Closing Date”), the Company entered into that certain Credit Agreement (the “Owl Rock Credit Facility”), among the Company, as borrower, the several banks and other persons from time to time party thereto (the “Owl Rock Lenders”), and Owl Rock Capital Corporation, as administrative and collateral agent for the Owl Rock Lenders thereunder. The Owl Rock Credit Facility provides credit extensions for (i) an initial term loan in an aggregate principal amount of $25.00 million upon the closing of the Owl Rock Credit Facility and (ii) optional delayed draw term loans in an aggregate principal amount of up to $25.00 million available for 180 days after the Owl Rock Closing Date, subject to the requirement that on each delayed draw date, the proceeds may be used for working capital and the business requirements of the enterprise, and to fund acquisitions, investments and other transactions permitted by the loan documentation. It provides a delayed draw commitment fee rate of 0.50% per annum applicable to undrawn commitments during the Delayed Draw Term Loan Availability Period and matures on July 5, 2028, the date that is five years after the closing of the Owl Rock Credit Facility. The Owl Rock Credit Facility, among other things: • requires the Company and certain subsidiaries of the Company to guarantee the loans provided under the Owl Rock Credit Facility pursuant to separate loan documentation; • is secured by a first-priority security interest in substantially all of the assets of the Company and the subsidiary guarantors. No pledge of any equity interests in the Company is required by any holder of such equity interests; • provides for interest to accrue on the loans drawn under the Owl Rock Credit Facility at the election of the Company, by reference to either (i) an alternative base rate (such loans, “ABR Loans”) or (ii) an adjusted term Secured Overnight Financing Rate (SOFR) rate (such loans, “SOFR Loans”) plus an applicable margin. The adjusted term SOFR rate is determined by the applicable term SOFR for a relevant interest period plus a credit spread adjustment of 0.10%, 0.15% and 0.25% per annum for interest periods of one three one three • provides a default rate that will accrue at 2.00% per annum over the rate otherwise applicable; • provides for amortization payments based on the initial principal amount of the loans outstanding of 1.0% per year (0.25% due per quarter), with adjustments made to the overall amortization amount upon the incurrence of any delayed draw loans; • contains provisions requiring mandatory prepayment of the initial term loans and delayed draw term loans with 100% of the proceeds of (a) indebtedness not permitted by the Owl Rock Credit Facility and (b) certain specified asset dispositions and payments (including in respect of settlements) in respect of property, casualty insurance claims or condemnation proceedings, with the proceeds received under this clause (b) subject to certain specified reinvestment rights and procedures set forth in the Owl Rock Credit Facility. The Owl Rock Credit Facility permits voluntary prepayments of outstanding loans at any time; • provides for financial covenants such that (i) a consolidated net leverage ratio cannot exceed 2.50 to 1.00 • contains affirmative covenants related to, among other things, delivery of certain financial reports and compliance certificates, maintenance of existence, compliance with laws, material contracts, payment of taxes, property and insurance matters, inspection of property, books and records, notices, collateral matters and future subsidiaries, in each case, subject to specified limitations and exceptions; • contains an affirmative representation and corresponding covenant that the Company and certain subsidiaries of the Company do not, and will not during the term of the Owl Rock Facility (or if the term of the Owl Rock Credit Facility continues for longer than a year, during the Company’s and certain subsidiaries of the Company’s most recent fiscal year), derive more than fifteen percent (15%) of their aggregate gross revenues from securities related activities; • contains negative covenants related to, among other things, incurrence of debt, creation of liens, mergers, acquisitions and certain other fundamental changes, conditions concerning the creation of new subsidiaries, conditions concerning opening of new accounts, disposition of assets, dividends and other restricted payments, prepayment of certain indebtedness, transactions with affiliates, investments and limitations on lines of business, in each case, subject to specified limitations and exceptions; and • provides for certain specified events of default upon the occurrence and during the continuation of certain events or conditions (subject to specified exceptions, grace periods or cure rights, as applicable) each as set forth in the Owl Rock Credit Facility, which includes among other things, defaults with respect to nonpayment, breaches of representations and warranties, failure to comply with covenants, cross-default to other material indebtedness, bankruptcy and insolvency matters, ERISA matters, material judgments, collateral and perfection matters, the occurrence of a change of control and subordination matters with respect to certain specified indebtedness. The occurrence and continuance of an event of default that is not cured or waived will enable the agent and/or the lenders, as applicable, to accelerate the loans or take other remedial steps as provided in the Owl Rock Credit Facility and the other loan documents. Sponsor PIK Note On the June 30, 2023, in connection with the consummation of the Business Combination and as contemplated by the Merger Agreement, East Sponsor, LLC, a Delaware limited liability company (“Sponsor”), made an unsecured loan to the Company in the aggregate amount of $10,471,648 (the “Sponsor PIK Note”) with an interest rate of 12% per annum compounding semi-annually. Accrued interest is payable in arrears quarterly starting on September 30, 2023 by adding it to the outstanding principal balance. As of September 30, 2023, $314,130 in non-cash interest expense was added to the outstanding principal balance. The Sponsor PIK Note matures on June 30, 2028 (the “Maturity Date”) and may be prepaid at any time in accordance with its terms without any premium or penalty. LMATT Series 2024, Inc. Market-Indexed Notes: On March 31, 2022, LMATT Series 2024, Inc., which the Company consolidates for financial reporting, issued $10,166,900 in market-indexed private placement notes. The note, titled the Longevity Market Assets Target-Term Series (LMATTS) 2024, is a market-indexed instrument designed to provide upside performance exposure of the S&P 500 Index, while limiting downward exposure. Upon maturity of the note in 2024, the principal, plus the return based upon the S&P 500 Index must be paid. The note has a feature to protect debt holders from market downturns, up to 40%. Any subsequent losses below the 40% threshold will reduce the note on a one-to-one The notes are held at fair value, which represents the exit price, or anticipated price to transfer the liability to a third party. As of September 30, 2023, the fair value of the LMATT Series 2024, Inc. notes was $9,311,800. The notes are secured by the assets of the issuing entities, which includes cash, S&P 500 options, and life settlement policies totaling $10,358,537 as of September 30, 2023. The notes’ agreements do not restrict the trading of life settlement contracts prior to maturity of the note, as total assets of the issuing companies are considered as collateral. There are also no restrictive covenants associated with the notes with which the entities must comply. LMATT Series 2.2024, Inc. Market-Indexed Notes: On September 16, 2022, LMATTS Series 2.2024, Inc., a 100% owned subsidiary which the Company consolidates for financial reporting issued $2,333,391 in market-indexed private placement notes. The note, titled the Longevity Market Assets Target-Term Growth Series 2.2024, Inc. (“LMATTSTM Series 2.2024, Inc.”) is a market-indexed instrument designed to provide upside performance exposure of the S&P 500 Index, while limiting downward exposure. Upon maturity of the note in 2024, the principal, plus the return based upon the S&P 500 Index must be paid. The note has a feature to provide upside performance participation that is capped at 120% of the performance of the S&P 500. A separate layer of the note has a feature to protect debt holders from market downturns by up to 20% if the index price experiences a loss during the investment period. After the underlying index has decreased in value by more than 20%, the investment will experience all subsequent losses on a one-to-one The notes are held at fair value, which represents the exit price, or anticipated price to transfer the liability to a third party. As of September 30, 2023, the fair value of the LMATT Series 2.2024, Inc. notes were $3,027,681. The notes are secured by the assets of the issuing entity, LMATT Series 2.2024, Inc., which includes cash, S&P 500 options, and life settlement policies totaling $2,983,754 as of September 30, 2023. The note agreements do not restrict the trading of life settlement contracts prior to maturity of the note, as total assets of the issuing company are considered as collateral. There are also no restrictive covenants associated with the note with which the entity must comply. LMATT Growth and Income Series 1.2026, Inc. Market-Indexed Notes: Additionally, on September 16, 2022, LMATTS Growth and Income Series 1.2026, Inc., a 100% owned subsidiary which the Company consolidates for financial reporting issued $400,000 in market-indexed private placement notes. The note, titled the Longevity Market Assets Target-Term Growth and Income Series 1.2026, Inc (“LMATTSTM Growth and Income Series 1.2026, Inc.”) is a market-indexed instrument designed to provide upside performance exposure of the S&P 500 Index, while limiting downward exposure. Upon maturity of the note in 2026, the principal, plus the return based upon the S&P 500 Index must be paid. The note has a feature to provide upside performance participation that is capped at 140% of the performance of the S&P 500. A separate layer of the note has a feature to protect debt holders from market downturns by up to 10% if the index price experiences a loss during the investment period. After the underlying index has decreased in value by more than 10%, the investment will experience all subsequent losses on a one-to-one The notes are held at fair value, which represents the exit price, or anticipated price to transfer the liability to a third party. As of September 30, 2023, the fair value of the LMATT Growth and Income Series 1.2026, Inc., notes were $427,284. The notes are secured by the assets of the issuing entity, LMATTS Growth and Income Series 1.2026, Inc., which includes cash, S&P 500 options, and life settlement policies totaling $369,253 as of September 30, 2023. The note agreements do not restrict the trading of life settlement contracts prior to maturity of the note, as total assets of the issuing company are considered as collateral. There are also no restrictive covenants associated with the note with which the entity must comply. See additional fair value considerations within Note 12. LMA Income Series, LP and LMA Income Series, GP LLC Secured Borrowing LMA Income Series, GP, LLC, wholly owned and controlled by that LMA Series, LLC, formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. The initial term of the offering is three years with the ability to extend for two additional one-year periods at the discretion of the general partner, LMA Income Series, GP, LLC. The limited partners will receive an annual dividend of 6.5% paid quarterly and 25% of returns in excess of a 6.5% internal rate of return capped at 9% which would require a 15% net internal rate of return. The General Partner will receive 75% of returns in excess of a 6.5% internal rate of return to limited partners then 100% in excess of a 15% net internal rate of return. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its consolidated financial statements for the three and nine months ended September 30, 2023. The private placement offerings proceeds will be used to acquire an actively manage a large and diversified portfolio of financial assets. LMA, through its consolidated subsidiaries, serves as the portfolio manager for the financial asset portfolio, which includes investment sourcing and monitoring. In this role, LMA has the unilateral ability to acquire and dispose of any of the above investments. As the partnership does not represent a business in accordance with ASC 810 and is a consolidated subsidiary that only holds financial assets, this represents a transfer subject to ASC 860-10. As the financial assets are not transferred outside the consolidated group, the proceeds from the offering shall be classified as a liability unless it meets the definition of a participating interest and the derecognition criteria in ASC 860 are met. The transferred interest did not meet the definition of a participating interest as LMA possesses the unilateral ability to direct the sale of the financial assets (ASC 860-10-50-6A(d)). In accordance with ASC 860-30-25-2, as the transfer of the financial assets did not meet the definition of a participating interest, LMA shall recognize the proceeds received from the offering as a secured borrowing. LMA elected to account for the secured borrowing at fair value under the collateralized financing entity guidance within ASC 810-10-30. As of September 30, 2023, the fair value of the secured borrowing was $22,242,291. LMA Income Series II, LP and LMA Income Series II, GP LLC Secured Borrowing LMA Income Series II, GP, LLC, wholly owned and controlled by that LMA Series, LLC, formed a limited partnership, LMA Income Series II, LP and issued partnership interests to limited partners in a private placement offering. The initial term of the offering is three years with the ability to extend for two additional one-year periods at the discretion of the general partner, LMA Income Series II, GP, LLC. The limited partners will receive annual dividends equal to the Preferred Return Amounts as follows: Capital commitment less than $500,000, 7.5%; between $500,000 and $1,000,000, 7.75%; over $1,000,000, 8%. Thereafter, 100% of the excess to be paid to the General Partner. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its consolidated financial statements for the three and nine months ended September 30, 2023. The private placement offerings proceeds will be used to acquire an actively manage a large and diversified portfolio of financial assets. LMA, through its consolidated subsidiaries, serves as the portfolio manager for the financial asset portfolio, which includes investment sourcing and monitoring. In this role, LMA has the unilateral ability to acquire and dispose of any of the above investments. As the partnership does not represent a business in accordance with ASC 810 and is a consolidated subsidiary that only holds financial assets, this represents a transfer subject to ASC 860-10. As the financial assets are not transferred outside the consolidated group, the proceeds from the offering shall be classified as a liability unless it meets the definition of a participating interest and the derecognition criteria in ASC 860 are met. The transferred interest did not meet the definition of a participating interest as LMA possesses the unilateral ability to direct the sale of the financial assets (ASC 860-10-50-6A(d)). In accordance with ASC 860-30-25-2, as the transfer of the financial assets did not meet the definition of a participating interest, LMA shall recognize the proceeds received from the offering as a secured borrowing. LMA elected to account for the secured borrowing at fair value under the collateralized financing entity guidance within ASC 810-10-30. As of September 30, 2023, the fair value of the secured borrowing was $24,535,851. SPV Purchase and Sale Note On July 5, 2023, the Company entered into an Asset Purchase Agreement (the “Policy APA”) to acquire certain insurance policies with an aggregate fair market value of $10.0 million from Abacus Investment SPV, LLC, a Delaware limited liability company (“SPV”), in exchange for a payable obligation owed by the Company to SPV (such acquisition transaction under the Policy APA, the “SPV Purchase and Sale”). The payable obligation owed by the Company to SPV in connection with the SPV Purchase and Sale is evidenced by a note issued by the Company to SPV in connection with the SPV Investment Facility, as defined below, (the “SPV Purchase and Sale Note”) in an original principal amount equal to the aggregate fair market value of the acquired insurance policies. The SPV Purchase and Sale Note has the same material terms and conditions as the other credit extensions under the SPV Investment Facility. SPV Investment Facility On July 5, 2023, the Company entered into a credit agreement between the Company, as borrower, and the SPV, as lender (the “SPV Investment Facility”) whereby the Company is able to borrow additional funds from SPV. The SPV Investment Facility provides, among other things, for the following: • requires that certain subsidiaries of the Company guarantee the credit extensions provided under the SPV Investment Facility pursuant to separate documentation; • is unsecured without collateral security provided in favor of SPV and subordinated in right of payment to the Company’s obligations under the Owl Rock Credit Facility, subject to limited specified exceptions and circumstances for permitting early payment; • provides for certain credit extensions in an aggregate principal amount of $25.0 million recorded in the SPV purchase and sale note line item on the condensed consolidated balance sheets, which includes: (i) an initial credit extension in an original principal amount of $15.0 million that was funded upon the closing of the SPV Investment Facility, and (ii) the SPV Purchase and Sale Note for the original principal amount of $10.0 million to finance the purchase of the insurance policies under the Policy APA; • provides for proceeds to be used for payment of certain transaction expenses, general corporate purposes and any other purposes not prohibited by the agreement or applicable law; • matures on July 5, 2026, three years after the closing of the SPV Investment Facility, subject to two automatic extensions of one year each without any amendment of the relevant documentation, but also subject to applicable subordination restrictions in relation to the Owl Rock Credit Facility; • provides for interest to accrue on the SPV Investment Facility at a rate of 12% per annum, payable quarterly, all of which is to be paid in-kind by the Company by increasing the principal amount of the SPV Investment Facility owing to the SPV on each interest payment date. As of September 30, 2023, $750,000 in non-cash interest expense was added to the outstanding principal balance; • provides a default rate that will accrue at 2.00% per annum (subject to applicable subordination restrictions) over the rate otherwise applicable. If cash payment is not permitted due to applicable subordination restrictions or otherwise, such default interest shall be paid in-kind; • provides that no principal payments shall be required prior to maturity; • contains financial and other covenants substantially similar and not materially worse than those contained in the Owl Rock Credit Facility from the perspective of the Company; and • provides for certain specified events of default (including certain events of default subject to grace or cure periods), with the occurrence and during the continuance of such events of default enabling the lender under the SPV Investment Facility to accelerate the obligations under the SPV Investment Facility, among other rights or remedies, subject to applicable subordination restrictions. The Company paid $0 interest expense during the nine month ended September 30, 2023 and 2022. | 11. LONG-TERM DEBT Long-term debt comprises of the following: December 31, 2022 December 31, 2021 Cost Fair value Cost Fair value Market-indexed notes: LMATT Series 2024, Inc. $ 9,866,900 $ 8,067,291 $ — $ — LMATT Series 2.2024, Inc. 2,333,391 2,354,013 — — LMATT Growth & Income Series 1.2026, Inc. 400,000 400,000 — — Secured borrowing: LMATT Income Series, LP 17,428,349 17,428,349 — — Total long-term debt $ 30,028,640 $ 28,249,653 $ — $ — LMATT Series 2024, Inc. Market-Indexed Notes: On March 31, 2022, LMATT Series 2024, Inc., which the Company consolidates for financial reporting, issued $10,166,900 in market-indexed private placement notes. The note, titled the Longevity Market Assets Target-Term Series (LMATTS) 2024, is a market-indexed instrument designed to provide upside performance exposure of the S&P 500 Index, while limiting downward exposure. Upon maturity of the note in 2024, the principal, plus the return based upon the S&P 500 Index must be paid. The note has a feature to protect debt holders from market downturns, up to 40%. Any subsequent losses below the 40% threshold will reduce the note on a one-to-one The notes are held at fair value, which represents the exit price, or anticipated price to transfer the liability to a third party. As of December 31, 2022, the fair value of the LMATT Series 2024, Inc. notes were $8,067,291. The notes are secured by the assets of the issuing entities, which includes cash, S&P 500 options, and life settlement policies totaling $12,200,797 as of December 31, 2022. The note agreements do not restrict the trading of life settlement contracts prior to maturity of the note, as total assets of the issuing companies are considered as collateral. There are also no restrictive covenants associated with the notes with which the entities must comply. LMATT Series 2.2024, Inc. Market-Indexed Notes: On September 16, 2022, LMATTS Series 2.2024, Inc., a 100% owned subsidiary which the Company consolidates for financial reporting issued $2,333,391 in market-indexed private placement notes. The note, titled the Longevity Market Assets Target-Term Growth Series 2.2024, Inc. (“LMATTSTM Series 2.2024, Inc.”) is a market-indexed instrument designed to provide upside performance exposure of the S&P 500 Index, while limiting downward exposure. Upon maturity of the note in 2024, the principal, plus the return based upon the S&P 500 Index must be paid. The note has a feature to provide upside performance participation that is capped at 120% of the performance of the S&P 500. A separate layer of the note has a feature to protect debt holders from market downturns by up to 20% if the index price experiences a loss during the investment period. After the underlying index has decreased in value by more than 20%, the investment will experience all subsequent losses on a one-to-one The notes are held at fair value, which represents the exit price, or anticipated price to transfer the liability to a third party. As of December 31, 2022, the fair value of the LMATT Series 2.2024, Inc. notes were $2,354,013. The note is secured by the assets of the issuing entity, LMATT Series 2.2024, Inc., which includes cash, S&P 500 options, and life settlement policies totaling $3,246,756 as of December 31, 2022. The note agreement does not restrict the trading of life settlement contracts prior to maturity of the note, as total assets of the issuing company are considered as collateral. There are also no restrictive covenants associated with the note with which the entity must comply. LMATT Growth and Income Series 1.2026, Inc. Market-Indexed Notes: Additionally, on September 16, 2022, LMATT Growth and Income Series 1.2026, Inc., a 100% owned subsidiary which the Company consolidates for financial reporting issued $400,000 in market-indexed private placement notes. The note, titled the Longevity Market Assets Target-Term Growth and Income Series 1.2026, Inc (“LMATTSTM Growth and Income Series 1.2026, Inc.”) is a market-indexed instrument designed to provide upside performance exposure of the S&P 500 Index, while limiting downward exposure. Upon maturity of the note in 2026, the principal, plus the return based upon the S&P 500 Index must be paid. The note has a feature to provide upside performance participation that is capped at 140% of the performance of the S&P 500. A separate layer of the note has a feature to protect debt holders from market downturns by up to 10% if the index price experiences a loss during the investment period. After the underlying index has decreased in value by more than 10%, the investment will experience all subsequent losses on a one-to-one The notes are held at fair value, which represents the exit price, or anticipated price to transfer the liability to a third party. As of December 31, 2022, the fair value of the LMATT Growth and Income Series 1.2026, Inc., notes were $400,000 The note is secured by the assets of the issuing entity, LMATT Growth and Income Series 1.2026, Inc., which includes cash, S&P 500 options, and life settlement policies totaling $752,236 as of December 31, 2022. The note agreement does not restrict the trading of life settlement contracts prior to maturity of the note, as total assets of the issuing company are considered as collateral. There are also no restrictive covenants associated with the note with which the entity must comply. See additional fair value considerations within the Fair Value footnote. LMA Income Series, LP and LMA Income Series, GP Secured Borrowing LMA Income Series, GP, LLC, wholly owned and controlled by that LMA Series, LLC, formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. The initial term of the offering is three years with the ability to extend for two additional one-year It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its consolidated financial statements for the year ended December 31, 2022. The private placement offerings proceeds will be used to acquire an actively managed large and diversified portfolio of financial assets. ABL, through its consolidated subsidiaries, serves as the portfolio manager for the financial asset portfolio, which includes investment sourcing and monitoring. In this role, ABL has the unilateral ability to acquire and dispose of any the above investments. As the partnership does not represent a business in accordance with ASC 810 and is a consolidated subsidiary that only holds financial assets, this represents a represents a transfer subject to ASC 860-10. 860-10-50-6A(d)). 860-30-25-2, ABL elected to account for the secured borrowing at fair value under the collateralized financing entity guidance within ASC 810-10-30. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
SHAREHOLDERS' EQUITY | 14. SHAREHOLDERS’ EQUITY The Company is authorized to issue up to 200,000,000 shares of common stock, par value $0.0001 per share, and 1,000,000 shares of preferred stock, par value $0.0001 per share. No shares of preferred stock are issued or outstanding. Holders of the Company’s common stock are entitled to one vote for each share. As of September 30, 2023, there were 63,349,823 shares of common stock issued and outstanding. Holders of shares were entitled to receive, in the event of a liquidation, dissolution or winding up, ratably the assets available for distribution to the shareholders after payment of all liabilities. The equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, 0.0001 par value per share, issued to legacy LMA’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to legacy LMA common stock prior to the Business Combination have been retroactively recast as shares reflecting the exchange ratio of 0.8 established in the Business Combination. As of December 31, 2022, this resulted in 50,369,350 Public Warrants As of September 30, 2023, the Company has 17,249,984 Public Warrants outstanding. Each redeemable whole Public Warrant entitles the holder thereof to purchase one share of common stock at a price of $11.50 per full share, subject to adjustment as described. The Public Warrants represent a freestanding financial instrument as it is traded on the Nasdaq under the symbol “ABLLW” and legally detachable and separately exercisable from the related underlying shares of the Company’s common stock. Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Proposed Offering. The Public Warrants will expire five years from the completion of a Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable and the Company will not be obligated to issue a share of Class A common stock upon exercise of a warrant unless the share of Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. Redemption of Warrants for Cash—Once the warrants become exercisable, the Company may redeem the outstanding Public Warrants for cash: • in whole and not in part; • at a price of $0.01 per Public Warrant; • upon not less than 30 days’ prior written notice of redemption to each warrant holder; and • if, and only if, the last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. If and when the Public warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. However, the Company will not redeem the warrants unless an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the warrants is effective and a current prospectus relating to those shares of Class A common stock is available throughout the 30-day redemption period, except if the warrants may be exercised on a cashless basis and such cashless exercise is exempt from registration under the Securities Act. Redemption of Warrants for Shares of Class A Common Stock—Once the Public warrants become exercisable, the Company may redeem the outstanding warrants for shares of Class A common stock: • in whole and not in part; • at a price equal to a number of shares of Class A common stock to be determined by reference to the agreed table set forth in the warrant agreement based on the redemption date and the “fair market value” of the Class A common stock; • upon not less than 30 days’ prior written notice of redemption to each warrant holder; and • if, and only if, the last sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted per share splits, share dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. In addition, if (x) the Company issues additional shares of common stock or equity-linked securities for capital raising purposes in connection with the closing of the Company’s initial Business Combination at an issue price or effective issue price of less than $9.20 per share (with such issue price or effective issue price to be determined in good faith by our board of directors), (y) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Price”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of Market Price and the newly issued price. Further, the $10.00 and $18.00 per share redemption trigger prices will be adjusted to be equal to 100% and 180%, respectively, of the higher of the market value and the newly issued price. If the Company elects to redeem all of the Public Warrants or the common stock is at the time of any exercise of a Public Warrant not listed on a national securities exchange, management has the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. In such event, each holder would pay the exercise price by surrendering the whole warrants for that number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants. However, in no instance can the warrant holder unilaterally decide to exercise its Public Warrant on a cashless basis. Upon the Business Combination, the Company accounted for the Public Warrants issued with the IPO as equity instruments. The Company accounted for the warrant as an expense of the IPO resulting in a charge directly to stockholders’ equity. The Company estimates that the fair value of the warrants upon the Business Combination is approximately $4.73 million, or $0.274 per Public Warrant, using the binomial lattice model. The fair value of the warrants is estimated as of the date of grant using the following assumptions: (1) risk-free interest rate of 4.09%, (2) term to expiration of 5.00 years, (3) exercise price of $11.50 and (4) stock price of $10.03. | 12. SHAREHOLDERS’ EQUITY The Company is authorized to issue up to 5,000 units of par value common units. Holders of the Company’s common units are entitled to one vote for each share. At December 31, 2022 and 2021, there were 5,000 units issued and outstanding. Holders of the common units were entitled to receive, in the event of a liquidation, dissolution or winding up, ratably the assets available for distribution to the stockholders after payment of all liabilities. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 15. STOCK- BASED COMPENSATION CEO Restriction Agreement: Effective upon Business Combination close, the Chief Executive Officer (“CEO”) entered into a Restriction Agreement with Abacus Life, Inc. that provides terms for the CEO’s ownership interest grant that were assigned to him from the three original founders of Abacus Settlements. As of the Closing Date as provided in the Merger Agreement amended on April 21, 2023, the CEO shall receive 4,569,922 shares of Restricted Stock. Vesting Conditions. i. 50% of the shares on the 25th month following the Effective Date, ii. 50% of the shares on the 30th month following the Effective Date, iii. Additionally, the Restricted Stock will become fully vested upon the first to occur of one of the following events: (i) separation from service due to disability, (ii) death, (iii) separation from service without cause; or (iv) separation from service for good reason. CEO Stock-based compensation expense is summarized as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock-based compensation expense $ 4,583,632 $ — $ 4,583,632 $ — Restricted Stock activity relative to the CEO for the nine months ended September 30, 2023 is summarized as follows: Number of Shares Weighted Average Outstanding at December 31, 2022 — $ — Granted 4,569,922 10.03 Forfeited — — Settled — — Outstanding at September 30, 2023 4,569,922 $ 10.03 As of September 30, 2023, unamortized stock-based compensation expense for unvested Restricted Stock relative to the CEO was $41,252,686 with a remaining contractual life of 2.3 years. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
EMPLOYEE BENEFIT PLAN | 16. EMPLOYEE BENEFIT PLAN The Company has a defined contribution plan in the U.S. intended to qualify under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer up to 100% of their annual compensation on a pretax basis. For the year ended December 31, 2022, the Company elected to match 50% of employee contributions up to a maximum of 4% of eligible employee compensation. For the three months ended September 30, 2023 and 2022, the Company recognized expenses related to the 401(k) Plan amounting to $61,586 and $4,511, respectively and for the nine months ended September 30, 2023 and 2022, the Company recognized expenses related to the 401(k) Plan amounting to $86,901 and $12,559, respectively. | 13. EMPLOYEE BENEFIT PLAN The Company has a defined contribution plan in the U.S. intended to qualify under Section 401 (k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer up to 100% of their annual compensation on a pre-tax |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
EMPLOYEE BENEFIT PLAN | 10. RETIREMENT PLAN The Company had a 401(k) Safe Harbor and Discretionary Profit-Sharing Plan (the Plan) with a service provider until May 30, 2021, at which time the Company switched to Paychex’s Retirement Services 401(k) Profit Sharing Plan. All eligible employees are able to participate in voluntary salary reduction contributions to the Profit-Sharing Plan. All employees who have completed one year of service with the Company are eligible to receive employer matching contributions. The Company may match contributions to the Profit-Sharing Plan, up to 4% of compensation. For the years ended December 31, 20 2 Pl |
MEMBERS' EQUITY
MEMBERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Abacus Settlements, LLC | |
MEMBERS' EQUITY | 11. MEMBERS’ EQUITY The Company is authorized to issue up to 400 units of par value common units. Holders of the Company’s common units are entitled to one vote for each share. At December 31, 2022 and 2021, there were 400 shares of common units issued and outstanding. Holders of the common units were entitled to receive, in the event of a liquidation, dissolution or winding up, ratably the assets available for distribution to the unit holders after payment of all liabilities. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
RELATED-PARTY TRANSACTIONS | 18. RELATED-PARTY TRANSACTIONS As of September 30, 2023 and December 31, 2022, $5,236 and $263,785, respectively, were due to members and affiliates primarily for reimbursable transaction costs as well as distributions to owners of $717,429 as a part of the Business Combination as of September 30, 2023. As of September 30, 2023 and December 31, 2022, $772,545 and $2,904,646, respectively, was due from affiliates, respectively. Additionally, the SPV Purchase and Sale Note for $25,000,000 was also recorded as a related party transaction given the transfer of cash and policies between the Company and the SPV. Also, the sponsor PIK Note is also recorded as a related party transaction given the relationship between the Sponsor and the Company. Refer to Note 13, Long-Term Debt, for more information. The Company has a related-party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”). The Company also earns service revenue related to policy and administrative services on behalf of Nova Funds. The servicing fee is equal to 50 basis points (0.50%) times the monthly invested amount in policies held by Nova Funds divided by 12. The Company earned $168,899 and $132,220 in service revenue related to Nova Funds for the three months ended September 30, 2023 and 2022, respectively, and earned $711,975 and $752,379 in service revenue related to Nova Funds for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, and December 31, 2022, there were $174,875 and $196,289, respectively owed from the Nova Funds, which are included as related-party receivables in the accompanying condensed consolidated balance sheets. The Company also originates policies for the Nova Funds. For the three months ended September 30, 2023, the Company originated 7 policies for the Nova Funds with a total value of $46,650,000. For its origination services to the Nova Funds, the Company earns origination fees equal to the lesser of (i) 2% of the net death benefit for the policy or (ii) $20,000. In addition to the Nova Funds, the Company also has other affiliated investors that provide origination services. For the three and nine months ended September 30, 2022, the Company did not earn any related party origination revenue for the Nova Funds. For the three and nine months ended September 30, 2023, revenue earned, and contracts originated are below. Three and Nine September 30, Origination fee revenue $ 254,517 Transaction reimbursement revenue — Total $ 254,517 Cost $ 7,981 Face value 46,650,000 Total policies 7 Average Age 70 | 15. RELATED PARTY TRANSACTIONS As of December 31, 2022 and 2021, $263,785 and $930,630 of due to affiliates, respectively were payable to the companies in which Company’s shareholders own interest. As of December 31, 2022 and 2021, $2,904,646 and $0 of due from affiliates, respectively were receivable from the companies in which the Company’s shareholders own interest or are currently in negotiations with. The majority of the due from affiliate amount represents transaction costs incurred by the Company related to the planned business combination in which East Resources Acquisition Company (“ERES”) has committed to reimburse the Company upon consummation of the merger. The Company has a related party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”) as the owners of the Company jointly own 11% of the Nova Funds. The Company also earns service revenue related to policy and administrative services on behalf of Nova Funds. The annual servicing fee is equal to 50 basis points (0.50%) times the invested amount in policies held by Nova Funds. The servicing fee is billed monthly. The Company earned $818,300 and $699,884, respectively in service revenue related to Nova Funds for the years ended December 31, 2022 and December 31, 2021. The Company also uses Abacus to originate life settlement policies that it accounts for under the investment method. The Company incurred $2,268,150 in origination expenses for life settlement policies that are included as part of active management revenue, given that revenue is presented on a net basis. At December 31, 2022 and 2021, there were $196,289 and $67,491, respectively, in expense reimbursements owed from the Nova funds, which are included as related party receivables in the accompanying balance sheets. |
Abacus Settlements, LLC | ||
RELATED-PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS Due from members and affiliates includes $1,448 and $16,536 of short-term advances to affiliates with no stated terms at December 31, 2022 and 2021, respectively. Due to members and affiliates includes $1,411 and $11,857 of distributions owed to members at December 31, 2022 and 2021, respectively. The Company has a related party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”) as the owners of the Company jointly own 11% of the Nova Funds. For the years ended December 31, 2022 and December 31, 2021, the Company has originated 333 and 313 policies, respectively, for the Nova Funds with a total value of $87,143,005 and $106,633,792. For its origination services to the Nova Funds, the Company earns origination fees equal to the lesser of (i) 2% of the net death benefit for the policy or (ii) $20,000 in addition to agent and broker commissions and reimbursements for transaction expenses, where the Company has determined that it is acting as the principal. For the years ended December 31, 2022 and December 31, 2021, revenue earned and contracts originated are as follows: December 31, December 31, 2022 2021 Origination fee revenue $ 6,586,922 $ 6,158,458 Commissions and transaction reimbursement revenue $ 8,656,885 $ 11,093,512 Total revenue $ 15,243,806 $ 17,251,970 Cost 87,143,005 106,633,792 Face value 481,648,010 459,217,638 Total policies 333 313 Average Age 75 78 The Company also has two other affiliated investors that it provides origination services for. Total revenue earned related to the other affiliated investors was $2,909,650 and $433,800, respectively of which $2,268,150 and $0 related to LMA, for the years ended December 31, 2022 and December 31, 2021, respectively. Total cost of sales were $2,365,650 and $433,800 for the other affiliated investors for the years ended December 31, 2022 and December 31, 2021, respectively. In addition, at December 31, 2022 and 2021, there were $175,194 and $590,371, respectively, in expense reimbursements due from the Nova funds, which are included as related party receivables in the accompanying balance sheets. |
SUPPLEMENTAL DISCLOSURE OF CASH
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 13. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION. For the years ended December 31, 2022 and December 31, 2021, respectively, supplemental cash flow information and supplemental disclosure of non-cash investing and financing activity consists of the following: 2022 2021 Supplemental cash flow information: Cash paid for income taxes $ 0 $ 1,200 Supplemental disclosure of non-cash investing and financing activity: Distributions owed to the members 1,411 11,857 |
LEASES
LEASES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
LEASES | 19. LEASES The Company’s right-of-use assets and lease liabilities for its operating lease consisted of the following amounts as of September 30, 2023 and December 31, 2022: Nine Months Ended Year Ended Assets: Operating lease right-of-use assets $ 171,295 $ 77,011 Liabilities: Operating lease liability, current 173,799 48,127 Operating lease liability, non-current — 29,268 Total lease liability $ 173,799 $ 77,395 The Company recognizes lease expense for its operating leases within general, administrative, and other expenses on the Company’s condensed consolidated statements of operations and comprehensive income. The Company’s lease expense for the periods presented consisted of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Operating lease cost $ 69,904 $ 12,471 $ 94,846 $ 36,313 Variable lease cost 20,540 1,221 29,465 2,444 Total lease cost $ 90,444 $ 13,692 $ 124,311 $ 38,757 The following table shows supplemental cash flow information related to lease activities for the periods presented: Nine Months Ended 2023 2022 Cash paid for amounts included in the measurement of the lease liability Operating cash flows from operating leases $ 96,891 $ 36,121 ROU assets obtained in exchange for new lease liabilities — — The table below shows a weighted-average analysis for lease terms and discount rates for all operating leases for the periods presented: Nine Months Ended Year Ended Weighted-average remaining lease term (in years) 0.80 1.58 Weighted-average discount rate 3.42 % 3.36 % Future minimum noncancellable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at September 30, 2023 are as follows: Operating Remaining of 2023 $ 117,527 2024 118,058 2025 — 2026 — 2027 — Thereafter — Total operating lease payments (undiscounted) 235,585 Less: Imputed interest (61,786 ) Lease liability as of September 30, 2023 $ 173,799 | 16. LEASES In April 2021, the Company entered into an agreement to lease office space in Orlando, FL from a related party. The lease is classified as an operating lease and goes through July 31, 2024. The Company does not have any other leasing activities. The Company’s ROU assets and lease liabilities for its operating leases consisted of the following amounts as of December 31, 2022 and 2021: Year Ended Year Ended December 31, 2022 December 31, 2021 Assets: Operating lease right-of-use $ 77,011 $ 122,503 Liabilities: Operating lease liability, current 48,127 45,107 Operating lease liability, non-current 29,268 77,396 Total lease liability — — 77,395 122,503 The Company recognizes lease expense for its operating leases within general, administrative, and other expenses on the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). The Company’s lease expense for the periods presented consisted of the following: Year Ended Year Ended December 31, 2022 December 31, 2021 Operating lease cost $ 48,784 $ 19,868 Variable lease cost 3,664 1,019 52,449 20,887 The following table shows supplemental cash flow information related to lease activities for the periods presented: Cash paid for amounts included in the measurement of the lease liability Operating cash flows from operating leases $ 48,399 $ 19,868 ROU assets obtained in exchange for new lease liabilities — $ 139,025 The table below shows a weighted-average analysis for lease terms and discount rates for all operating leases for the periods presented: Year Ended Year Ended December 31, 2022 December 31, 2021 Weighted-average remaining lease term (in years) 1.58 2.58 Weighted-average discount rate 3.36 % 3.36 % Future minimum noncancelable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at December 31, 2022 are as follows: Operating leases 2023 $ 49,855 2024 29,514 2025 — 2026 — 2027 — Thereafter — Total operating lease payments (undiscounted) 79,369 Less: Imputed interest (1,974 ) Lease liability as of December 31, 2022 $ 77,395 |
Abacus Settlements, LLC | ||
LEASES | 14. LEASES The Company’s ROU assets and lease liabilities for its operating leases consisted of the following amounts as of December 31, 2022 and 2021: As of December 31, 2022 2021 Assets Operating lease right-of-use asset $ 300,866 $ 367,508 Liabilities Operating lease liability, current 214,691 135,321 Operating lease liability, noncurrent 87,806 232,187 Total operating lease liabilities $ 302,497 $ 367,508 The Company recognizes lease expense for its operating leases within general and administrative expenses on the Company’s statements of operations and comprehensive (loss) income. The Company’s lease expense for the periods presented consisted of the following: Year Ended December 31, 2022 2021 Operating lease cost $ 190,183 $ 126,178 Variable lease cost 9,403 10,756 Total lease cost $ 199,586 $ 136,935 The following table shows supplemental cash flow information related to lease activities for the periods presented: Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of the lease liability Operating cash flows from operating leases 201,478 126,178 ROU assets obtained in exchange for new lease liabilities 123,541 417,076 The table below shows a weighted-average analysis for lease term and discount rate for all operating leases as of December 31, 2022 and 2021: As of December 31, 2022 2021 Weighted-average remaining lease term (in years) 1.41 2.58 Weighted-average discount rate 3.71 % 3.36 % Future minimum noncancelable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at December 31, 2022 are as follows: Operating Leases 2023 221,182 2024 88,543 2025 — 2026 — 2027 — Thereafter — Total operating lease payments (undiscounted) $ 309,726 Less: Imputed interest (7,229 ) Lease liability as of December 31, 2022 $ 302,497 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 20. EARNINGS PER SHARE Basic earnings per share (“EPS”) represents income available to ordinary shareholders divided by the weighted average number of ordinary shares outstanding during the reported period. Net income per ordinary share is computed by dividing net income by the weighted-average number of ordinary shares outstanding during the period. The Company has not considered the effect of the Public and Private Placement Warrants to purchase an aggregate of 26,150,000 shares in the calculation of diluted income per ordinary share, since the average market price of the Company’s Class A common shares for the three and nine months ended September 30, 2023 was below the warrants’ $11.50 exercise price. As a result, diluted income per share is the same as basic net income per share for the period presented. Basic and diluted weighted average shares outstanding and earnings per share were as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Net income attributable to Longevity Market Assets $ 903,361 $ 9,992,004 $ 15,739,009 $ 21,507,702 Weighted-average shares used in computing net income per share, basic and diluted 63,349,823 50,369,350 54,632,826 50,369,350 Basic and diluted earnings per share: $ 0.01 $ 0.20 $ 0.29 $ 0.43 |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions from the condensed consolidated balance sheet date through the date at which the condensed consolidated financial statements were issued. Fixed Rate Senior Unsecured Notes On November 6, 2023, the Company filed a prospectus on Form S-1 to issue and sell fixed rate senior unsecured notes up to $40,000,000 aggregate principal amount of the Company’s senior unsecured promissory notes (“Fixed Unsecured Notes”) which closed on November 10, 2023. The net proceeds after related debt issue costs, were used by the Company to repay the Owl Rock Credit Facility, with the remaining to be used for general corporate purposes. This loan is based on a fixed interest rate of 9.875%, provides for quarterly interest payments beginning on February 15, 2024, and has a term of five years with a maturity date of November 15, 2028. The Company has the option to redeem the Fixed Unsecured Notes in whole or in part at a price of 100% of the outstanding principal balance on or after November 15, 2027. The notes will be senior unsecured obligations of the Company and will rank equal in right of payment to all of the Company’s other senior unsecured indebtedness from time to time outstanding. Long-term Incentive Plan In October of 2023, the Compensation Committee approved the issuance of 2,468,500 restricted stock units (“RSU’s”) to executives, employees and directors as part of the Company’s 2023 Long-Term Equity Compensation Incentive Plan (“Long-term Incentive Plan”) This plan provides for equity-based awards, including restricted stock units, performance stock units (“PSU”), stock options and unrestricted shares of common stock, may be granted to officers, key employees and directors of the Company. The Company has granted RSUs that provide the right to receive, subject to service based vesting conditions, shares of common stock pursuant to the Equity Plan. After the issuance, 621,500 shares of common stock remained available for issuance of the 3,090,000 shares that are authorized for issuance under the Long-term Incentive Plan. The expense associated with the awards will be based on the fair value of the shares as of the grant date, where the Company will elect to straight line recognition over the vesting period, which is three years. Each RSU entitles the unit holder to one share of common stock when the restriction expires. RSUs have service conditions associated with them that range from one | 17. SUBSEQUENT EVENTS Completion of the Business Combination on June 30, 2023 On August 30, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with East Resources Acquisition Company (Nasdaq: ERES) and Abacus Settlements, LLC (“Abacus”), which was subsequently amended on October 14, 2022. As part of the Merger Agreement, the holders of the Company’s common units together with the holders of Abacus, a commonly owned affiliate, were to receive aggregate consideration of approximately $531,750,000, payable in a number of newly issued shares of Class A common stock, par value $0.0001 per share. The merger was completed on June 30, 2023. Long-Term Debt Owl Rock Credit Facility On July 5, 2023 (the “Owl Rock Closing Date”), the Company entered into that certain Credit Agreement (the “Owl Rock Credit Facility”), among the Company, as borrower, the several banks and other persons from time to time party thereto (the “Owl Rock Lenders”), and Owl Rock Capital Corporation, as administrative and collateral agent for the Owl Rock Lenders thereunder. The Owl Rock Credit Facility provides credit extensions for (i) an initial term loan in an aggregate principal amount of $25.00 mill ion upon the closing of the Owl Rock Credit Facility and (ii) optional delayed draw term loans in an aggregate principal amount 25.00 0.50 Sponsor PIK Note On the June 30, 2023, in connection with the consummation of the Business Combination and as contemplated by the Merger Agreement, East Sponsor, LLC, a Delaware limited liability company (“Sponsor”), made an unsecured loan to the Company in the aggregate amount of $10,471,648 (the “Sponsor PIK Note”) with an interest rate of 12% per annum compounding semi-annually. Accrued interest is payable in arrears quarterly starting on September 30, 2023 by adding it to the outstanding principal balance. The Sponsor PIK Note matures on June 30, 2028 (the “Maturity Date”) and may be prepaid at any time in accordance with its terms without any premium or penalty. LMA Income Series II, LP and LMA Income Series II, GP LLC Secured Borrowing LMA Income Series II, GP, LLC, wholly owned and controlled by that LMA Series, LLC, formed a limited partnership, LMA Income Series II, LP and issued partnership interests to limited partners in a private placement offering. The initial term of the offering is three years with the ability to extend for two additional one-year SPV Purchase and Sale Note On July 5, 2023, the Company entered into an Asset Purchase Agreement (the “Policy APA”) to acquire certain insurance policies with an aggregate fair market value of $10.0 million from Abacus Investment SPV, LLC, a Delaware limited liability company (“SPV”), in exchange for a payable obligation owed by the Company to SPV (such acquisition transaction under the Policy APA, the “SPV Purchase and Sale”). The payable obligation owed by the Company to SPV in connection with the SPV Purchase and Sale is evidenced by a note issued by the Company to SPV in connection with the SPV Investment Facility, as defined below, (the “SPV Purchase and Sale Note”) in an original principal amount equal to the aggregate fair market value of the acquired insurance policies. The SPV Purchase and Sale Note has the same material terms and conditions as the other credit extensions under the SPV Investment Facility. SPV Investment Facility On July 5, 2023, the Company entered into a credit agreement between the Company, as borrower, and the SPV, as lender (the “SPV Investment Facility”) whereby the Company is able to borrow additional funds from SPV. The SPV Investment Facility provides, among other things, for the following: requires that certain subsidiaries of the Company guarantee the credit extensions provided under the SPV Investment Facility pursuant to separate documentation; is unsecured without collateral security provided in favor of SPV and subordinated in right of payment to the Company’s obligations under the Owl Rock Credit Facility, subject to limited specified exceptions and circumstances for permitting early payment; provides for certain credit extensions in an aggregate principal amount of $25.0 million recorded in the SPV purchase and sale note line item on the condensed consolidated balance sheets, which includes: (i) an initial credit extension in an original principal amount of $ 15.0 provides for proceeds to be used for payment of certain transaction expenses, general corporate purposes and any other purposes not prohibited by the agreement or applicable law; matures on July 5, 2026, three years after the closing of the SPV Investment Facility, subject to two automatic extensions of one year each without any amendment of the relevant documentation, but also subject to applicable subordination restrictions in relation to the Owl Rock Credit Facility; provides for interest to accrue on the SPV Investment Facility at a rate of 12% per annum, payable quarterly, all of which is to be paid in-kind provides a default rate that will accrue at 2.00% per annum (subject to applicable subordination restrictions) over the rate otherwise applicable. If cash payment is not permitted due to applicable subordination restrictions or otherwise, such default interest shall be paid in-kind; provides that no principal payments shall be required prior to maturity; contains financial and other covenants substantially similar and not materially worse than those contained in the Owl Rock Credit Facility from the perspective of the Company; and provides for certain specified events of default (including certain events of default subject to grace or cure periods), with the occurrence and during the continuance of such events of default enabling the lender under the SPV Investment Facility to accelerate the obligations under the SPV Investment Facility, among other rights or remedies, subject to applicable subordination restrictions. Fixed Rate Senior Unsecured Notes On November 10, 2023, the Company issued and sold fixed rate senior unsecured notes of $35,650,000 aggregate principal amount of the Company’s senior unsecured promissory notes (“Fixed Unsecured Notes”). The net proceeds after related debt issue costs, were used by the Company to repay the Owl Rock Credit Facility, with the remaining to be used for general corporate purposes. This loan is based on a fixed interest rate of 9.875%, provides for quarterly interest payments beginning on February 15, 2024, and has a term of five years with a maturity date of November 15, 2028. The Company has the option to redeem the Fixed Unsecured Notes in whole or in part at a price of 100% of the outstanding principal balance on or after November 15, 2027. The notes will be senior unsecured obligations of the Company and will rank equal in right of payment to all of the Company’s other senior unsecured indebtedness from time to time outstanding. Long-term Incentive Plan In October of 2023, the Compensation Committee approved the issuance of 2,468,500 restricted stock units (“RSU’s”) to executives, employees and directors as part of the Company’s 2023 Long-Term Equity Compensation Incentive Plan (“Long-term Incentive Plan”) This plan provides for equity-based awards, including restricted stock units, performance stock units (“PSU”), stock options and unrestricted shares of common stock, may be granted to officers, key employees and directors of the Company. The Company has granted RSUs that provide the right to receive, subject to service based vesting conditions, shares of common stock pursuant to the Equity Plan. After the issuance, 621,500 shares of common stock remained available for issuance of the 3,090,000 shares that are authorized for issuance under the Long-term Incentive Plan. The expense associated with the awards will be based on the fair value of the shares as of the grant date, where the Company will elect to straight line recognition over the vesting period, which is three years. STOCK- BASED COMPENSATION CEO Restriction Agreement: Effective upon Business Combination close, the Chief Executive Officer (“CEO”) entered into a Restriction Agreement with Abacus Life, Inc. that provides terms for the CEO’s ownership interest grant that were assigned to him from the three original founders of Abacus Settlements. As of the Closing Date as provided in the Merger Agreement amended on April 21, 2023, the CEO shall receive 4,569,922 shares of Restricted Stock. |
Abacus Settlements LLC - DESCRI
Abacus Settlements LLC - DESCRIPTION OF THE BUSINESS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
DESCRIPTION OF THE BUSINESS | 1. DESCRIPTION OF BUSINESS Organization and Merger Abacus Life, Inc. (the “Company”) was formerly known as East Resources Acquisition Company (“ERES”), a blank check company incorporated in Delaware on May 22, 2020. Abacus Life, Inc. conducts its business through its wholly-owned, consolidated subsidiaries, primarily Abacus Settlements, LLC (“Abacus Settlements”, or “Abacus”) and Longevity Market Assets, LLC (“LMA”), which are Delaware limited liability companies (collectively, the “Companies”). On June 30, 2023, (the “Closing Date”), ERES, LMA and Abacus Settlements, LLC consummated the combining of the Companies as contemplated by the Merger Agreement dated as of August 30, 2022 (as amended on October 14, 2022 and April 20, 2023) with LMA Merger Sub, LLC, a wholly owned subsidiary of ERES (“LMA Merger Sub”), Abacus Merger Sub, LLC, a wholly owned subsidiary of ERES (“Abacus Merger Sub”), LMA and Abacus (together with LMA, the “Legacy Companies”). Pursuant to the Merger Agreement, on June 30, 2023, (i) LMA Merger Sub merged with and into LMA, with LMA surviving such merger (the “LMA Merger”) and (ii) Abacus Merger Sub merged with and into Abacus, with Abacus surviving such merger (the “Abacus Merger” and, together with the LMA Merger, the “Mergers” and, along with the other transactions contemplated by the Merger Agreement, the “Business Combination”) and the Legacy Companies became direct wholly owned subsidiaries of Abacus and ERES changed its name to Abacus Life, Inc. The condensed consolidated assets, liabilities and statements of operations and comprehensive income prior to the Business Combination are those of legacy LMA. The shares of common stock and corresponding capital amounts and income per share, prior to the Business Combination, have been retroactively restated based on share reflecting the exchange ratio established in the Business Combination. The equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to legacy LMA’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and income per share related to legacy LMA common stock prior to the Business Combination have been retroactively recast as shares reflecting the exchange ratio of 0.8 established in the Business Combination. Business Activity The Company, through its LMA subsidiary, is a provider of services pertaining to life insurance settlements and offers policy servicing to owners and purchasers of life settlement assets, as well as consulting, valuation, and actuarial services. The Company is also engaged in buying and selling of life settlement policies in which it uses its own capital, and purchases life settlement contracts with the intent to either hold to maturity to receive the associated death claim payout or to sell to another purchaser of life settlement contracts for a gain on the sale. The Company, through its Abacus subsidiary, also is an originator of outstanding life insurance policies as a licensed life settlement provider on behalf of investors (“Financing Entities”). Abacus locates and screens policies for eligibility as a commercially desirable life settlement, including verifying that the policy is in force, obtaining consents and disclosures, and submitting cases for life expectancy estimates, also known, collectively, as origination services. When the sale of a policy is completed, this is deemed “settled” and the policy is then referred to as either a “life settlement” in which the insured’s life expectancy is greater than two years or “viatical settlement,” in which the insured’s life expectancy is less than two years. The Company is not an insurance company, and therefore the Company does not underwrite insurable risks for its own account. | 1. DESCRIPTION OF BUSINESS Abacus Life, Inc. (“the Company”) was formerly known as East Resources Acquisition Company (“ERES”), a blank check company incorporated in Delaware on May 22, 2020. Abacus Life, Inc. conducts its business through its wholly-owned, consolidated subsidiaries, primarily Abacus Settlements LLC (“Abacus”) and Longevity Market Assets, LLC (“LMA”), which are incorporated in the state of Delaware (collectively, the “Companies”). On June 30, 2023, (the “Closing Date”), ERES, Longevity Market Assets, LLC and Abacus Settlements, LLC consummated the combining of the Companies as contemplated by the Merger Agreement dated as of August 30, 2022 (as amended on October 14, 2022 and April 20, 2023) with LMA Merger Sub, LLC, a wholly owned subsidiary of ERES (“LMA Merger Sub”), Abacus Merger Sub, LLC, a wholly owned subsidiary of ERES (“Abacus Merger Sub”), Longevity Market Assets, LLC (“LMA”) and Abacus Settlements, LLC (“Legacy Abacus” and, together with LMA, the “Legacy Companies”). Pursuant to the Merger Agreement, on June 30, 2023, (i) LMA Merger Sub merged with and into LMA, with LMA surviving such merger (the “LMA Merger”) and (ii) Abacus Merger Sub merged with and into Legacy Abacus, with Legacy Abacus surviving such merger (the “Abacus Merger” and, together with the LMA Merger, the “Mergers” and, along with the other transactions contemplated by the Merger Agreement, the “Business Combination”) and the Legacy Companies became direct wholly owned subsidiaries of Abacus and ERES changed its name to Abacus Life, Inc. The consolidated balance sheets, statements of operations and comprehensive income (loss) and consolidated statement of changes in shareholder equity prior to the Business Combination are those of legacy LMA. The stocks and corresponding capital amounts and income per stock, prior to the Business Combination, have been retroactively restated based on stocks reflecting the exchange ratio established in the Business Combination. The equity structure has been recast in all comparative periods up to the Closing Date to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to legacy LMA’s stockholders in connection with the Business Combination. As such, the shares and corresponding capital amounts and earnings per share related to legacy LMA common stock prior to the Business Combination have been retroactively recast as shares reflecting the exchange ratio of 0.8 established in the Business Combination. The Company is a provider of services pertaining to life insurance settlements and offers policy servicing to owners and purchasers of life settlement assets, as well as consulting, valuation, and actuarial services. The Company offers value to the owners of life settlements by monitoring and maintaining the policy, and performing all administrative work involved to keep the policy in force and at the premium level most advantageous to the owner. The Company is also engaged in buying and selling of life settlement policies in which it uses its own capital, and purchases life settlement contracts with the intent to either hold to maturity to receive the associated death claim payout, or to sell to another purchaser of life settlement contracts for a gain on the sale. The Company is headqu ar |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
DESCRIPTION OF THE BUSINESS | 1. DESCRIPTION OF THE BUSINESS Abacus Settlements, LLC d/b/a Abacus Life (“Abacus”) was formed in 2004 in the state of New York. In 2016, the Company obtained its licensure in Florida and re-domesticated to that state. On June 13, 2023, the Company re-domesticated to Delaware. Abacus acts as a purchaser of outstanding life insurance policies (“Provider”) on behalf of investors (“Financing Entities”) by locating policies and screening them for eligibility for a life settlement, including verifying that the policy is in force, obtaining consents and disclosures, and submitting cases for life expectancy estimates, also known as origination services. When the sale of a policy is completed, this is deemed “settled” and the policy is then referred to as either a “life settlement” in which the insured’s life expectancy is greater than two years or “viatical settlement,” in which the insured’s life expectancy is less than two years. Abacus is not an insurance company, and therefore Abacus does not underwrite insurable risks for its own account. On August 30, 2022, Abacus entered into an Agreement and Plan of Merger (the “Merger Agreement”) with East Resources Acquisition Company (“ERES”), which was subsequently amended on October 14, 2022. As part of the Merger Agreement, the holders of Abacus’ common units together with the holders of Longevity Markets Assets, LLC (“LMA”), a commonly owned affiliate, will receive aggregate consideration of $531,750,000, payable in a number of newly issued shares of ERES Class A common stock, par value $0.0001 per share (“ERES Class A common stock”), with a value ascribed to each share of ERES Class A common stock of $10.00 and, to the extent the aggregate transaction proceeds exceed $200.0 million, at the election of Abacus’ and LMA’s members, up to $20.0 million of the aggregate consideration will be payable in cash to the Abacus’ and LMA’s members. The transaction closed on June 30, 2023 upon shareholder approval and customary closing conditions. |
Abacus Settlements LLC - SUMMAR
Abacus Settlements LLC - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Abacus Merger has been accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of Abacus were recorded at the fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net assets acquired was recognized as goodwill. As a result of the Business Combination, the Company evaluated if ERES, Abacus, or LMA is the predecessor for accounting purposes. In considering the foregoing principles of predecessor determination and in light of the Company’s specific facts and circumstances, management determined that LMA and Abacus are dual predecessors for accounting purposes. The financial statement presentation for Abacus Life, Inc. includes the purchase accounting effects of the Abacus Merger as of the Closing Date with the financial statements of LMA as the comparative period. The predecessor financial statements for Abacus are included separately within this report. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and are prepared in accordance with U.S. GAAP. Unaudited Condensed Consolidated Financial Statements Refer to this note in the LMA annual financial statements for the full list of the Company’s significant accounting policies. The details in those notes have not changed, except as discussed below and as a result of normal adjustments in the interim periods. Consolidation of Variable Interest Entities Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidations On January 1, 2021, the Company entered into an option agreement with two commonly owned full-service origination, servicing, and investment providers (the “Providers”), in which the Company agreed to fund certain capital needs with an option to purchase the outstanding equity ownership of the Providers (the “Option Agreement”). The Company accounted for its investment in the call options under the Option Agreement as an equity security, pursuant to ASC 321, Investments-Equity Securities Derivatives and Hedging The Company provided $0 and $40,800 of funding for the three months ended September 30, 2023 and September 30, 2022, respectively, and provided $29,721 and $283,047 of funding for the nine months ended September 30, 2023 and September 30, 2022, respectively, which is included in other (expense) income on the condensed consolidated statements of operations and comprehensive income. Refer to Note 11 for further details. For the period ended September 30, 2023, and for the year ended December 31, 2022, the Providers were considered to be VIEs, but were not consolidated in the Company’s condensed consolidated financial statements due to a lack of the power criterion or the losses/benefits criterion. As of September 30, 2023, the unaudited financial information for the unconsolidated VIEs are as follows: held assets of $824,375 and liabilities of $191,632. As of December 31, 2022, the unaudited financial information for the unconsolidated VIEs are as follows: held assets of $987,964 and liabilities of $358,586. On October 4, 2021, the Company entered into an operating agreement with LMX Series, LLC (“LMX”) and three other unaffiliated investors to obtain a 70% ownership interest in LMX, which was newly formed in August 2021. LMX had no operating activity prior to the operating agreement being signed. LMX has a wholly owned subsidiary, LMATT Series 2024, Inc., a Delaware C corporation. While the Company and three other investors each contributed $100 to LMX, the Company directs the most significant activities by managing the investment offerings, and sponsoring and creating structured investment grade insurance liabilities, and thus was provided a 70% ownership interest. LMX is a VIE and the Company is the primary beneficiary of LMX. The Company has included the results of LMX and its subsidiaries in its condensed consolidated financial statements for the period ended September 30, 2023. On November 30, 2022, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created general partnership, LMA Income Series, GP, LLC. Subsequent to that, LMA Income Series, GP, LLC formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its condensed consolidated financial statements for the nine months ended September 30, 2023. On January 31, 2023, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created general partnership, LMA Income Series II, GP, LLC. Subsequent to that, LMA Income Series II, GP, LLC formed a limited partnership, LMA Income Series II, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series II, LP and thus has fully consolidated the limited partnership in its condensed consolidated financial statements for the nine months ended September 30, 2023. Noncontrolling Interest Net income of a consolidated entity is allocated to noncontrolling interests based on the noncontrolling shareholder’s ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in net income (loss) attributable to noncontrolling interests in the condensed consolidated statements of operations and comprehensive income. Use of Estimates Life Insurance Settlement Policies Investments in Insurance Contracts The Company follows ASC 820, Fair Value Measurements and Disclosures included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s valuation of life settlements is considered to be Level 3, as there is currently no active market where we are able to observe quoted prices for identical assets. The Company’s valuation model incorporates significant inputs that are not observable. Refer to Note 10 for further details. For policies held at fair value, changes in fair value are reflected in the unaudited condensed consolidated statement of operations and comprehensive income under active management revenue in the period the change is calculated. For policies held under the investment method, the Company tests the impairment if we become aware of information indicating that the carrying value plus undiscounted future premiums of a policy may not be recoverable. This information is gathered initially through extensive underwriting procedures at purchase of the settlement contract, as well as through periodic underwriting review that include medical reports and life expectancy evaluations. The policies held by the Company using the investment method are expected to be owned for a shorter-term, and are actively marketed to potential buyers. The market feedback received through these interactions provides the Company with information related to a potential impairment. If a policy is determined to be impaired, the Company will adjust the carrying value to the fair value determined through the impairment analysis. The Company accounts for cash proceeds from sale and maturity of life insurance settlement policies, as well as cash outflows for premium payments, as operating activities within the condensed consolidated statements of cash flows. Goodwill and Intangible Assets To test for impairment, a qualitative assessment is performed to determine if it is more likely-than-not that the fair value of a reporting unit is less than its carrying value, including goodwill. This initial assessment includes, among other factors, consideration of: (i) past, current and projected future earnings and equity; (ii) recent trends and market conditions; and (iii) valuation metrics involving similar companies that are publicly traded and acquisitions of similar companies, if available. If the more likely-than-not threshold is met, a quantitative impairment test is performed by comparing the estimated fair value with the carrying value. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and will be determined as the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company’s reporting units are at the operating segment level; each operating segment represents a business and discrete financial information is available and reviewed regularly by management. Determining the fair value of its reporting units is subjective in nature and involves the use of significant estimates and assumptions, including projected net cash flows, discount and long-term growth rates. The Company determines the fair value of its reporting units based on an income approach and market approach, whereby the fair value of the reporting unit is derived from the present value of estimated future cash flows associated with the reporting unit. The assumptions about estimated cash flows include factors such as future premiums, loss and expenses, general and administrative expenses and industry trends. The Company considers historical rates and current market conditions when determining the discount and long-term growth rates to use in its analysis. The Company considers other valuation methods if the facts and circumstances indicate these methods provide a more representative approximation of fair value. Changes in these estimates based on evolving economic conditions or business strategies could result in material impairment charges in future periods. The Company bases its fair value estimates on assumptions it believes to be reasonable. Actual results may differ from those estimates. As of September 30, 2023, there were no events or changes in circumstances that indicated that a carrying Cost of Revenues (excluding Depreciation and Amortization) Income Taxes Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and the Company’s experience with similar operations. Existing favorable contracts are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also remeasured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Concentrations anc Two related party customers accounted for 5% and 5% of the total balance of accounts receivable and related party receivables as of September 30, 2023, respectively, and two related party customers accounted for 75% and 16% of the total accounts receivable and related party receivables as of December 31, 2022, respectively. The largest receivables balances are from related parties where the exposed credit risk is estimated to be low. As such, there is no allowance for doubtful accounts as of September 30, 2023, and December 31, 2022. One customer accounted for 13% of active management revenue for the three months ended September 30, 2023. Two related party customers each accounted for 39% and 39% of the portfolio servicing revenue for the three months ended September 30, 2023. One customer accounted for 22% of active management revenue, while 9% of revenue related to 2 policies that matured that were accounted for under the investment method and 1 policy that matured that was accounted for under the fair-value method for the nine months ended September 30, 2023. Two related party customers each accounted for 36% and 37% of the portfolio servicing revenue for the nine months ended September 30, 2023. Two customers accounted for 44% and 29% of the total revenues for the nine months ended September 30, 2022. Warrants Distinguishing Liabilities from Equity For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed consolidated statements of operations and comprehensive income. Stock-Based Compensation Compensation - Stock Compensation gnize | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation LLC and its wholly owned and controlled subsidiaries and subsidiaries in which the Company holds a controlling financial interest or is the primary beneficiary. Intercompany transactions and accounts have been eliminated in consolidation. Consolidation of Variable Interest Entities Accounting Standards Codification (“ASC”) Topic 810, Consolidations, requires the Company to separately disclose on its Consolidated Balance Sheets the assets of consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of December 31, 2022, total assets and liabilities of consolidated VIEs is $30,073,972 and $27,116,762, respectively. As of December 31, 2021, total assets and liabilities of consolidated VIEs is $400 and $0, respectively. On October 4, 2021, the Company entered into an Operating Agreement with LMX Series, LLC (“LMX“) and three other unaffiliated investors to obtain a 70% ownership interest in LMX, which was newly formed in August 2021. LMX had no operating activity prior to the Operating Agreement being signed. LMX has a wholly owned subsidiary, LMATT Series 2024, Inc., a Delaware C-Corporation. On March 3, 2022, the Company formed Longevity Market Advisors, LLC (“Longevity Market Advisors”), which they have an 80% ownership interest in. The Longevity Market Advisors legal entity was established primarily for the purpose of acquiring the assets of a broker/dealer, Regional Investment Services, Inc. (RIS), an Ohio corporation. Longevity Market Advisors is a VIE and the Company is the primary beneficiary of Longevity Market Advisors. The purchase price in exchange for RIS was $60,000. The Company evaluated whether this represented a business combination or an asset acquisition under ASC 805. While the purchase of the RIS represents a business, it was further determined that as RIS was purchased for the primary reason of being registered by the Financial Industry Regulatory Authority (“FINRA”). As there are no tangible or intangible assets of value from the RIS that would meet the capitalization criteria that have standalone value, the Company has expensed the purchase in general and administrative costs. Upon closing of the transaction, Longevity Market Advisors will comprise 100% of the ownership structure of RIS, and RIS will be a wholly owned subsidiary. The Company has included the results of Longevity Market Advisors and its subsidiaries in its consolidated financial statements for the year ended December 31, 2022. On November 30, 2022, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created partnership general partnership, LMA Income Series, GP, LLC. Subsequent to that, LMA Income Series, GP, LLC formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its consolidated financial statements for the year ended December 31, 2022. Non-Consolidated two The Company accounted for its investment in the call options as an equity security, pursuant to ASC 321. In arriving at this accounting conclusion, the Company first considered whether the call option met the definition of a derivative pursuant to ASC 815 and concluded that it did not as the instrument does not provide for net settlement and accordingly is not a derivative. The Company also concluded that the call option does not provide the Company with a controlling financial interest in the legal entity pursuant to ASC 810. The call option includes material contingencies prior to exercisability that the Company does not anticipate will be resolved; additionally, the call option is in a legal entity for which the share price has no readily determinable fair value. The Company’s basis in the call option, pursuant to ASC 321, is zero and accordingly the call option is not reflected in the statement of financial position The Company provided $347,013 of funding for the year-ended December 31, 2022 which is included in Other (Expense) Income on the Consolidated Statements of Operations and Comprehensive Income (Loss) and $ 120,000 For the year ended December 31, 2022 and 2021, the Providers were considered to be VIEs, but were not consolidated in our consolidated financial statements due to a lack of the power criterion or the losses/benefits criterion. For the year ended December 31, 2022, the unaudited financial information for the unconsolidated VIE’s are as follows: held assets of $ 126,040 0 861,924 358,586 non-consolidated 122,279 0 474,288 2,218 Noncontrolling Interest Net income of a consolidated entity is allocated to noncontrolling interests based on the noncontrolling shareholder’s ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in Net income (loss) attributable to noncontrolling interests in the Consolidated Statement of Operations and Comprehensive Income (Loss). Use of Estimates ng Life Insurance Settlement Policies ASC 325-30, Investments in Insurance Contracts The Company follows ASC 820, Fair Value Measurements and Disclosures For policies held under the investment method, the Company tests the impairment if we become aware of information indicating that the carrying value plus undiscounted future premiums of a policy may not be recoverable. This information is gathered initially through extensive underwriting procedures at purchase of the settlement contract, as well as through periodic underwriting review that include medical reports and life expectancy evaluations. The policies held by the Company using the investment method are expected to be owned for a shorter-term and are actively marketed to potential buyers. The market feedback received through these interactions provides the Company with information related to a potential impairment. If a policy is determined to be impaired, the Company will adjust the carrying value to the fair value determined through the impairment analysis. The Company accounts for cash proceeds from sale and maturity of life insurance settlement policies, as well as cash outflows for premium payments, as operating activities within the Consolidated Statements of Cash Flows. Going Concern Cash and Cash Equivalents highly-liquid Fair Value Measurements Level 1 Level 2 Level 3 The Company’s financial instruments consist of cash, cash equivalents, accounts receivables, due to affiliates, equity investments in privately held companies, S&P options, life settlement policies, available for sale securities, market-indexed debt and secured borrowings. Cash, cash equivalents, accounts receivables, and due to affiliates are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Equity investments in privately held companies without readily determinable fair values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available. Available-for-sale S&P options are recognized at fair value using quoted market prices in active markets, with changes in fair value included in net income. Market-indexed debt is measured on a quarterly basis, with qualifying changes in fair value recognized in net income, except for the portion of the total change in the fair value of the liability that results from a change in the instrument-specific credit risk, which is separately included in other comprehensive income in accordance with ASC 825-10-45-5. Related party receivables Other Investments Available-For-Sale available-for-sale available-for-sale Available-for-Sale Other Noncurrent Assets, at fair value Concentrations available-for-sale nsu Two related party customers accounted for 75% and 16% of the total accounts receivable as of December 31, 2022 and two related party customers accounted for 51% and 49% as of December 31, 2021. The largest receivables balances are from related parties where exposed credit risk is low. As such, there is no allowance for doubtful accounts as of December 31, 2022 and December 31, 2021. One customer accounted for 51% of active management revenue, while 22% of revenue related to two policies that matured that were accounted for under the investment method for the year-ended December 31, 2022. Two related party customers each accounted for 28% of the portfolio servicing revenue for the year ended December 31, 2022. Three customers accounted for 29%, 29% and 20% of the total revenues for the year ended December 31, 2021, respectively. Property and Equipment, Net Estimated Useful Life Furniture and fixtures 5 years Leasehold improvements Shorter of remaining lease term or estimated useful life Expenditures for maintenance and repairs that do not extend the useful lives of property and equipment are expensed as incurred. Upon retirement or sale of assets, the cost and related accumulated depreciation are written off and any resulting gain or loss is reflected in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Property and equipment are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of property and equipment is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. There were no impairments recognized during the years ended December 31, 2022 and 2021, respectively. Property and equipment to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Revenue Recognition Portfolio Servicing Revenue — and ensuring timely payment of optimized premiums computed to derive maximum return on maturity of the policy. The company neither assumes the ownership of the contracts nor undertakes the responsibility to make the premium payments, which remains with the owner of the policy. These service arrangements have contractual terms typically ranging from one-month Under consulting engagements, the Company provides services typically for the owners of life settlement contracts who are often customers of the servicing business line, or customers of Abacus. These consulting engagements are comprised of valuation, actuarial services, and overall policy assessments related life settlement contracts and are short-term in nature. The performance obligations are typically identified as separate services with a specific deliverable or a group or deliverables to be provided in tandem, as agreed to in the engagement letter or contract. Each service provided under a contract is considered as a performance obligation and revenue is recognized at a point in time when the deliverable or group of deliverables is transferred to the customer. Active Management Revenue — Other Consideration — Cost to Obtain and Fulfill Contracts — Segments Income Taxes S-corporation C- C-corporations For LMATT Series 2024, Inc. taxes on earnings are based on pretax financial accounting income (losses). The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step The Company recognizes interest and penalties as a component of income tax expense. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Leases Leases The Company has one lease for office space in Orlando, FL that is accounted for as an operating lease and goes through July 31, 2024. The Company is responsible for utilities, maintenance, taxes and insurance, which are variable payments based on a reimbursement to the lessor of the lessor’s costs incurred. The Company excludes variable lease payments from the measurement of lease liabilities and right-of-use non-lease The Company has elected the short-term lease exemption, which permits the Company to not recognize a lease liability and ROU asset for leases with an original term of one year or less. Currently the Company does not have any short-term leases. The Company’s current lease includes a renewal option. The Company has determined that the renewal option is not reasonably certain of exercise based on an evaluation of contract, market and asset-based factors, and therefore does not include periods covered by renewal options in its lease term. The Company’s leases generally do not include purchase options, residual value guarantees, or material restrictive covenants. The Company determines its lease liability and ROU by calculating the present value of future lease payments. The present value of future lease payments is discounted using the Company’s incremental borrowing rate. As the Company’s leases generally do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on market yields and comparable credit ratings, adjusted for lease term, to determine the present value of fixed lease payments based on information available at the lease commencement date. The Company does not have any finance leases, nor is the Company a lessor (or sublessor). See Note 16 for additional disclosures related to leases. Earnings Per Unit pr e per-unit |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The condensed balance sheet as of June 30, 2023, was derived from amounts included in Abacus’ annual financial statements for the year ended December 31, 2022. Such amounts are included within the condensed consolidated financial statements of Abacus Life, Inc. (the “Company”). Capitalized terms used herein without definition have the meanings ascribed to them in Abacus’ financial statements for the year ended December 31, 2022. Refer to this note in the annual financial statements for the full list of the Company’s significant accounting policies. The details in those notes have not changed except as discussed below and as a result of normal adjustments in the interim periods. Basis of Presentation Unaudited Condensed Financial Statements Use of Estimates contingent assets and liabilities at the date of financial statements and the reports amounts of revenue and expenses during the reporting periods. Abacus’ estimates, judgments, and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from the estimates. Estimates are used when accounting for revenue recognition and related costs, the selection of useful lives of property and equipment, impairment testing, valuation of other receivables from clients, income taxes, and legal reserves. Going Concern Other receivables Abacus provides an allowance for credit losses equal to the estimated collection losses that will be incurred in collection of all receivables. Management determines the allowance for credit losses based on a review of outstanding receivables, historical collection experience, current economic conditions, and reasonable and supportable forecasts. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is deemed remote. Abacus does not have any material allowance for credit losses as of June 30, 2023 or December 31, 2022. If the financial condition of Abacus’ customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Abacus did not record material allowance for credit losses as of June 30, 2023, and December 31, 2022, respectively. Concentrations Advertising |
Abacus Settlements LLC - SEGMEN
Abacus Settlements LLC - SEGMENT REPORTING | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
SEGMENT REPORTING | 10. SEGMENT REPORTING Segment Information This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision maker (CODM), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting The Portfolio Servicing segment generates revenues by providing policy services to customers on a contract basis. The Active Management segment generates revenues by buying, selling, and trading policies and maintaining policies until receipt of death benefits. The Originations segment generates revenue by originating life insurance policy settlements between investors or buyers, and the sellers, who is often the original policy owner. The policies are purchased from owners or other providers through advisors, brokers or directly through the owner. The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review asset information related to investments nor expenditures incurred for long-lived assets given the Company’s investments are recognized using the measurement alternative, and the Company’s long-lived assets are immaterial to the condensed consolidated financial statements. Revenue related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023, and September 30, 2022, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Portfolio servicing $ 224,569 $ 382,245 $ 814,626 $ 1,372,573 Active management 18,926,144 11,125,503 39,921,061 28,411,475 Originations 10,214,489 — 10,214,489 — Segment revenue (including inter-segment) 29,365,202 11,507,748 50,950,176 29,784,048 Inter-segment elimination (8,244,272 ) — (8,244,272 ) — Total revenue $ 21,120,930 $ 11,507,748 $ 42,705,904 $ 29,784,048 Information related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023 and September 30, 2022 is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Portfolio servicing $ (626,045 ) $ (106,817 ) $ (792,173 ) $ 561,935 Active management 13,856,637 9,859,671 34,144,789 25,381,144 Originations 4,525,381 — 4,525,381 — Total gross profit 17,755,973 9,752,854 37,877,997 25,943,079 Sales and marketing (1,704,154 ) (14,905 ) (3,116,999 ) (1,664,403 ) General and administrative (including stock based compensation of $4,583,632) (9,838,951 ) (59,816 ) (11,113,382 ) (706,523 ) Depreciation and amortization expense (1,694,853 ) (1,071 ) (1,696,994 ) (3,211 ) Other (expense) income 20,086 42,289 (1,565 ) (199,958 ) Loss on change in fair value of warrant liability (943,400 ) — (943,400 ) — Interest expense (2,679,237 ) — (3,620,695 ) — Interest income 63,826 — 71,283 — Gain (Loss) on change in fair value of debt 2,088,797 1,235,032 (309,865 ) 859,519 Unrealized (loss) gain on investments (306,800 ) (246,846 ) 491,356 (1,301,821 ) Provision for income taxes (1,710,315 ) (352,081 ) (2,238,419 ) (648,887 ) Less: Net gain (loss) attributable to non-controlling interests (147,611 ) (363,452 ) 339,692 (770,093 ) Net income attributable to Abacus Life, Inc. $ 903,361 $ 9,992,004 $ 15,739,009 $ 21,507,702 Segment gross profit is defined as revenues less cost of sales, excluding depreciation and amortization. Expenses below the gross profit line are not allocated across operating segments, as they relate primarily to the overall management of the consolidated entity. As of September 30, 2023 and 2022, our operations are confined to the United States. Therefore, we have not generated significant revenues or made significant capital expenditures in any geographic areas outside of the United States. | 8. SEGMENT REPORTING Segment Information This segment structure reflects the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments as well as the current operating focus in compliance with ASC 280, Segment Reporting The Portfolio Servicing segment generates revenues by providing policy services to customers on a contract basis. The Active Management segment generates revenues by buying, selling and trading policies and maintaining policies through to death benefit. The Company’s reportable segments are not aggregated. The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review asset information related to investments nor expenditures incurred for long-lived assets given the Company’s investments are recognized on a cost basis and the company’s long-lived assets are immaterial to the consolidated financial statements. Information related to the Company’s reporting segments for December 31, 2022 and December 31, 2021 is as follows: As of December 31, 2022 As of December 31, 2021 Portfolio Servicing $ 1,470,973 $ 1,079,986 Active Management 43,242,581 120,000 Total Revenue $ 44,713,553 $ 1,199,986 Portfolio Servicing $ 300,235 $ 406,093 Active Management 38,168,187 58,000 Gross profit $ 38,468,422 $ 464,093 Sales and Marketing $ (2,596,140 ) $ — General, administrative and other (1,066,403 ) (101,406 ) Other operating expenses — (493,849 ) Depreciation (4,282 ) (2,447 ) Other expense (347,013 ) — Interest (expense) (42,798 ) Interest income 1,474 Change on fair value of debt (90,719 ) — Unrealized gain(loss) on investments (1,045,623 ) — Income tax expense (889,943 ) — Net loss attributable to non-controlling (704,699 ) 148,155 Net income attributable to Longevity Market Assets, LLC $ 31,682,275 $ 14,546 |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
SEGMENT REPORTING | 3. SEGMENT REPORTING Operating as a centrally led life insurance policy intermediary, Abacus’ president and chief executive officer is the chief operating decision maker who allocates resources and assesses financial performance based on financial information presented for Abacus as a whole. As a result of this management approach, Abacus is organized as a single |
Abacus Settlements LLC - INCOME
Abacus Settlements LLC - INCOME TAXES | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
INCOME TAXES | 17. INCOME TAXES Before June 30, 2023, the Company elected to file as an S corporation for Federal and state income tax purposes, as such, the Company incurred no Federal or state income taxes, except for income taxes related to their consolidated variable interest entities and subsidiaries which are taxable C corporations. These VIE’s and subsidiaries include LMATT Series 2024, Inc., the wholly owned subsidiary of LMX, which is consolidated into LMA as a VIE, as well as LMATT Growth Series 2.2024, Inc., a wholly owned subsidiary of LMATT Growth Series, Inc., and LMATTS Growth and Income Series 1.2026, Inc., a wholly owned subsidiary of LMATT Growth and Income Series, Inc., all of which are 100% owned subsidiaries and fully consolidated. Accordingly, the provision for income taxes was attributable to amounts for LMATT Series 2024, Inc, LMATT Growth Series, Inc. and LMATT Growth and Income Series, Inc. For the three months ended September 30, 2023 and 2022, the Company recorded provision for income taxes of $1,710,315 and $352,081, respectively. The effective tax rate is 61.9% for the three months ended September 30, 2023 primarily driven by non-deductible equity compensation expense and the impact of non-taxable flow-through entities. The effective rate for the three months ended September 30, 2022 was 3.3% due to the impact of state income taxes and the release of the Company’s valuation allowance, as there was sufficient evidence of the Company’s ability to generate future taxable income at September 30, 2022. For the nine months ended September 30, 2023 and 2022, the Company recorded provision for income taxes of $2,238,419 and $648,887, respectively. The effective tax rate is 12.7% for the nine months ended September 30, 2023. The existence of non-taxable flow-through entities within the Company as well as a change in tax status of certain entities upon the Business Combination caused the effective tax rate to vary from the statutory rate. The effective rate for the nine months ended September 30, 2022 was 2.8% due to the impact of state income taxes and the release of the Company’s valuation allowance, as there was sufficient evidence of the Company’s ability to generate future taxable income at September 30, 2022. The Company did not have any unrecognized tax benefits relating to uncertain tax positions as of September 30, 2023, and December 31, 2022, and did not recognize any interest or penalties related to uncertain tax positions as of September 30, 2023, and December 31, 2022. | 14. INCOME TAXES As the Company elected to file as an S corporation for Federal and state income tax purposes, the Company incurred no Federal or state income taxes, except for income taxes recorded related to some of their consolidated variable interest entities and subsidiaries which are taxable C corporations. These VIE’s and subsidiaries include LMATT Series 2024, Inc., the wholly owned subsidiary of LMX Series, LLC., which is consolidated into LMA as a VIE, as well as LMATT Growth Series 2.2024, Inc., a wholly owned subsidiary of LMATT Growth Series, Inc. and LMATT Growth and Income Series 1.2026, Inc., a wholly owned subsidiary of LMATT Growth and Income Series, Inc., which are 100 The components of provision for income taxes are as follows: December 31, 2022 December 31, 2021 Current provision: Federal $ — $ — State — — Foreign — — Total current tax — — Deferred provision (benefit): Federal 737,376 — State 152,567 — Foreign — — Total deferred tax 889,943 — Provision for income taxes $ 889,943 — For the years ended December 31, 2022 and 2021, the income tax expense differs from the provision that would result from applying federal and state statutory tax rates to income before income taxes due to the Company’s S corporation election recognized for federal and state purposes. For LMATT Series 2024, Inc., LMATT Growth Series, Inc. and LMATT Growth and Income Series, Inc., the Company recognized $889,943 of provision related to income taxes for the year ended December 31, 2022. For the year ended December 31, 2021, the Company recognized no provision related to income taxes for LMATT Series 2024, Inc. because the Company incurred operating losses and maintained a full valuation allowance against its net deferred tax assets. The effective income tax rate differs from the federal statutory income tax rate applied to the profit loss before provision for income taxes due to the following: Year Ended Year Ended Income tax benefit computed at federal statutory rate $ 6,988,153 $ (28,058 ) Effect of pass through entities $ (6,147,068 ) $ (75,650 ) State taxes, net of federal benefit 174,024 (21,458 ) Valuation allowance (125,166 ) 125,166 Income tax benefit at effective tax rate $ 889,943 $ — The effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows: Year Ended Year Ended December 31, 2022 December 31, 2021 Deferred tax assets: Net operating loss carryforwards $ 167,554 $ 125,166 Basis Difference in Life Insurance Contracts $ 109,903 Other — — Gross deferred tax assets 277,457 125,166 Less: valuation allowance — (125,166 ) Total deferred tax assets 277,457 — Deferred tax liabilities: Unrealized Gain (1,641,277 ) — Other — — Gross deferred tax liabilities (1,641,277 ) — Deferred tax liabilities—net of allowance $ (1,363,820 ) $ — The components of the Company’s net deferred tax asset are subject to realizability analysis in accordance with ASC 740. The establishment of a valuation allowance is based on consideration of all available evidence, both positive and negative, concerning the expectation of future realization, including, among other items: historical operating results; forecasts of future operations; the duration of statutory carryforward periods; experience with tax attributes expiring unused; future reversals of existing taxable temporary differences and tax planning alternatives. In making such judgments, greater weight is given to evidence that can be objectively verified. Based on this analysis, the Company determined that sufficient positive evidence existed as of December 31, 2022 to support releasing the valuation allowance recorded against net operating loss tax attributes at December 31, 2021. The Company has $661,092 of Federal Net Operating Losses and $661,092 State Net Operating Losses that can be carried forward indefinitely. The Federal Net Operating Losses may be used to offset 80% of taxable income in a given year. The Company did not have any unrecognized tax benefits relating to uncertain tax positions at December 31, 2022 and 2021 and did not recognize any interest or penalties related to uncertain tax position at December 31, 2022 and 2021. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Consolidated Statements of Operations and Comprehensive Income during 2023. | |
Abacus Settlements, LLC | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
INCOME TAXES | 5. INCOME TAXES Since Abacus elected to file as an S corporation for federal and State income tax purposes, Abacus incurred no federal or state income taxes. Accordingly, provision for income taxes is attributable to minimum state tax payments that are due regardless of their S corporation status and income position. For the three months ended June 30, 2023, Abacus did not record provision for income taxes. For the three months ended September 30, 2022, Abacus recorded provision for income taxes of $582. For the six months ended June 30, 2023 and nine months ended September 30, 2022, Abacus recorded provision for income taxes of $2,289 and $1,907, respectively, which consist of state minimum taxes for state taxes that have been paid and settled during the period. The effective tax rate was approximately (0.24%) for the six months ended June 30, 2023, compared to 1.26% for the nine months ended September 30, 2022. Given Abacus’ S Corporation status, temporary book and tax differences do not create a deferred tax asset or liability on the balance sheets. Accordingly, an assessment of realizability of any deferred tax asset balances is not relevant. |
Abacus Settlements LLC - RETIRE
Abacus Settlements LLC - RETIREMENT PLAN | 6 Months Ended |
Jun. 30, 2023 | |
Abacus Settlements, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
RETIREMENT PLAN | 6. RETIREMENT PLAN Abacus provides a defined contribution plan to its employees, Abacus Settlements LLC 401(k) Profit Sharing Plan & Trust (the “Plan”). All eligible employees are able to participate in voluntary salary reduction contributions to the Profit-Sharing Plan. All employees who have completed one year of service with Abacus are eligible to receive employer-matching contributions. Abacus may match contributions to the Plan, up to 4% of compensation. For the three months ended June 30, 2023 and September 30, 2022, and for six months ended June 30, 2023 and nine months ended September 30, 2022, Abacus made no discretionary contribution to the Plan |
Abacus Settlements LLC - RELATE
Abacus Settlements LLC - RELATED-PARTY TRANSACTIONS | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
RELATED-PARTY TRANSACTIONS | 18. RELATED-PARTY TRANSACTIONS As of September 30, 2023 and December 31, 2022, $5,236 and $263,785, respectively, were due to members and affiliates primarily for reimbursable transaction costs as well as distributions to owners of $717,429 as a part of the Business Combination as of September 30, 2023. As of September 30, 2023 and December 31, 2022, $772,545 and $2,904,646, respectively, was due from affiliates, respectively. Additionally, the SPV Purchase and Sale Note for $25,000,000 was also recorded as a related party transaction given the transfer of cash and policies between the Company and the SPV. Also, the sponsor PIK Note is also recorded as a related party transaction given the relationship between the Sponsor and the Company. Refer to Note 13, Long-Term Debt, for more information. The Company has a related-party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”). The Company also earns service revenue related to policy and administrative services on behalf of Nova Funds. The servicing fee is equal to 50 basis points (0.50%) times the monthly invested amount in policies held by Nova Funds divided by 12. The Company earned $168,899 and $132,220 in service revenue related to Nova Funds for the three months ended September 30, 2023 and 2022, respectively, and earned $711,975 and $752,379 in service revenue related to Nova Funds for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, and December 31, 2022, there were $174,875 and $196,289, respectively owed from the Nova Funds, which are included as related-party receivables in the accompanying condensed consolidated balance sheets. The Company also originates policies for the Nova Funds. For the three months ended September 30, 2023, the Company originated 7 policies for the Nova Funds with a total value of $46,650,000. For its origination services to the Nova Funds, the Company earns origination fees equal to the lesser of (i) 2% of the net death benefit for the policy or (ii) $20,000. In addition to the Nova Funds, the Company also has other affiliated investors that provide origination services. For the three and nine months ended September 30, 2022, the Company did not earn any related party origination revenue for the Nova Funds. For the three and nine months ended September 30, 2023, revenue earned, and contracts originated are below. Three and Nine September 30, Origination fee revenue $ 254,517 Transaction reimbursement revenue — Total $ 254,517 Cost $ 7,981 Face value 46,650,000 Total policies 7 Average Age 70 | 15. RELATED PARTY TRANSACTIONS As of December 31, 2022 and 2021, $263,785 and $930,630 of due to affiliates, respectively were payable to the companies in which Company’s shareholders own interest. As of December 31, 2022 and 2021, $2,904,646 and $0 of due from affiliates, respectively were receivable from the companies in which the Company’s shareholders own interest or are currently in negotiations with. The majority of the due from affiliate amount represents transaction costs incurred by the Company related to the planned business combination in which East Resources Acquisition Company (“ERES”) has committed to reimburse the Company upon consummation of the merger. The Company has a related party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”) as the owners of the Company jointly own 11% of the Nova Funds. The Company also earns service revenue related to policy and administrative services on behalf of Nova Funds. The annual servicing fee is equal to 50 basis points (0.50%) times the invested amount in policies held by Nova Funds. The servicing fee is billed monthly. The Company earned $818,300 and $699,884, respectively in service revenue related to Nova Funds for the years ended December 31, 2022 and December 31, 2021. The Company also uses Abacus to originate life settlement policies that it accounts for under the investment method. The Company incurred $2,268,150 in origination expenses for life settlement policies that are included as part of active management revenue, given that revenue is presented on a net basis. At December 31, 2022 and 2021, there were $196,289 and $67,491, respectively, in expense reimbursements owed from the Nova funds, which are included as related party receivables in the accompanying balance sheets. | |
Abacus Settlements, LLC | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
RELATED-PARTY TRANSACTIONS | 7. RELATED-PARTY TRANSACTIONS Abacus has a related-party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”) as the owners of Abacus jointly own 11% of the Nova Funds. For the three months ended June 30, 2023 and September 30, 2022, Abacus originated 38 and 82 policies, respectively, for the Nova Funds with a total value of $56,688,680 and $93,605,072, respectively. For the six months ended June 30, 2023 and nine months ended September 30, 2022, Abacus originated 72 and 265 policies, respectively, for the Nova Funds with a total value of $96,674,080 and $376,409,910, respectively. For its origination services to the Nova Funds, Abacus earns origination fees equal to the lesser of (i) 2% of the net death benefit for the policy or (ii) $20,000. For three months ended June 30, 2023 and 2022, and for the six months ended June 30, 2023 and nine months ended September 30, 2022, revenue earned, and contracts originated are as follows: Three Months Ended June 30, 2023 Three Months Ended September 30, 2022 Six Months Ended 2023 Nine Months Ended September 30, 2022 Origination fee revenue $ 1,504,532 $ 8,008,816 $ 2,952,837 $ 8,008,816 Transaction reimbursement revenue 75,332 235,455 140,960 235,455 Total $ 1,579,864 $ 8,244,271 $ 3,093,797 $ 8,244,271 Cost $ 5,290,504 $ 4,511,346 $ 11,656,637 $ 4,511,346 Face value 56,688,680 93,605,072 96,674,080 376,409,910 Total policies 38 82 72 265 Average Age 76 75 75 75 In addition to the Nova Funds, Abacus also has another affiliated investor that they provide origination services for. Total revenue earned related to the other affiliated investor was $3,615,738 and $1,155,000, of which $3,615,739 and $955,000 related to LMA for the three months ended June 30, 2023 and September 30, 2022, respectively. Total cost of sales related to the other affiliated investor was $2,623,201 and $1,055,000, of which $2,623,201 and $875,000 related to LMA for three months ended June 30, 2023 and September 30, 2022, respectively. Total revenue earned related to the other affiliated investor was $6,838,141 and $2,066,700, of which $6,794,641 and $1,425,200 related to LMA, for the six months ended June 30, 2023 and nine months ended September 30, 2022, respectively. Total cost of sales related to the other affiliated investor was $5,020,603 and $1,667,700, of which $5,012,103 and $1,201,200 related to LMA for the six months ended June 30, 2023 and the nine months ended September 30, 2022, respectively. In addition, there is a related party receivable due from LMA related to transaction expenses of $19,246 and $190,805 as of June 30, 2023 and September 30, 2022, respectively, which is included as due from members |
Abacus Settlements LLC - SUBSEQ
Abacus Settlements LLC - SUBSEQUENT EVENT | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
SUBSEQUENT EVENT | 21. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions from the condensed consolidated balance sheet date through the date at which the condensed consolidated financial statements were issued. Fixed Rate Senior Unsecured Notes On November 6, 2023, the Company filed a prospectus on Form S-1 to issue and sell fixed rate senior unsecured notes up to $40,000,000 aggregate principal amount of the Company’s senior unsecured promissory notes (“Fixed Unsecured Notes”) which closed on November 10, 2023. The net proceeds after related debt issue costs, were used by the Company to repay the Owl Rock Credit Facility, with the remaining to be used for general corporate purposes. This loan is based on a fixed interest rate of 9.875%, provides for quarterly interest payments beginning on February 15, 2024, and has a term of five years with a maturity date of November 15, 2028. The Company has the option to redeem the Fixed Unsecured Notes in whole or in part at a price of 100% of the outstanding principal balance on or after November 15, 2027. The notes will be senior unsecured obligations of the Company and will rank equal in right of payment to all of the Company’s other senior unsecured indebtedness from time to time outstanding. Long-term Incentive Plan In October of 2023, the Compensation Committee approved the issuance of 2,468,500 restricted stock units (“RSU’s”) to executives, employees and directors as part of the Company’s 2023 Long-Term Equity Compensation Incentive Plan (“Long-term Incentive Plan”) This plan provides for equity-based awards, including restricted stock units, performance stock units (“PSU”), stock options and unrestricted shares of common stock, may be granted to officers, key employees and directors of the Company. The Company has granted RSUs that provide the right to receive, subject to service based vesting conditions, shares of common stock pursuant to the Equity Plan. After the issuance, 621,500 shares of common stock remained available for issuance of the 3,090,000 shares that are authorized for issuance under the Long-term Incentive Plan. The expense associated with the awards will be based on the fair value of the shares as of the grant date, where the Company will elect to straight line recognition over the vesting period, which is three years. Each RSU entitles the unit holder to one share of common stock when the restriction expires. RSUs have service conditions associated with them that range from one | 17. SUBSEQUENT EVENTS Completion of the Business Combination on June 30, 2023 On August 30, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with East Resources Acquisition Company (Nasdaq: ERES) and Abacus Settlements, LLC (“Abacus”), which was subsequently amended on October 14, 2022. As part of the Merger Agreement, the holders of the Company’s common units together with the holders of Abacus, a commonly owned affiliate, were to receive aggregate consideration of approximately $531,750,000, payable in a number of newly issued shares of Class A common stock, par value $0.0001 per share. The merger was completed on June 30, 2023. Long-Term Debt Owl Rock Credit Facility On July 5, 2023 (the “Owl Rock Closing Date”), the Company entered into that certain Credit Agreement (the “Owl Rock Credit Facility”), among the Company, as borrower, the several banks and other persons from time to time party thereto (the “Owl Rock Lenders”), and Owl Rock Capital Corporation, as administrative and collateral agent for the Owl Rock Lenders thereunder. The Owl Rock Credit Facility provides credit extensions for (i) an initial term loan in an aggregate principal amount of $25.00 mill ion upon the closing of the Owl Rock Credit Facility and (ii) optional delayed draw term loans in an aggregate principal amount 25.00 0.50 Sponsor PIK Note On the June 30, 2023, in connection with the consummation of the Business Combination and as contemplated by the Merger Agreement, East Sponsor, LLC, a Delaware limited liability company (“Sponsor”), made an unsecured loan to the Company in the aggregate amount of $10,471,648 (the “Sponsor PIK Note”) with an interest rate of 12% per annum compounding semi-annually. Accrued interest is payable in arrears quarterly starting on September 30, 2023 by adding it to the outstanding principal balance. The Sponsor PIK Note matures on June 30, 2028 (the “Maturity Date”) and may be prepaid at any time in accordance with its terms without any premium or penalty. LMA Income Series II, LP and LMA Income Series II, GP LLC Secured Borrowing LMA Income Series II, GP, LLC, wholly owned and controlled by that LMA Series, LLC, formed a limited partnership, LMA Income Series II, LP and issued partnership interests to limited partners in a private placement offering. The initial term of the offering is three years with the ability to extend for two additional one-year SPV Purchase and Sale Note On July 5, 2023, the Company entered into an Asset Purchase Agreement (the “Policy APA”) to acquire certain insurance policies with an aggregate fair market value of $10.0 million from Abacus Investment SPV, LLC, a Delaware limited liability company (“SPV”), in exchange for a payable obligation owed by the Company to SPV (such acquisition transaction under the Policy APA, the “SPV Purchase and Sale”). The payable obligation owed by the Company to SPV in connection with the SPV Purchase and Sale is evidenced by a note issued by the Company to SPV in connection with the SPV Investment Facility, as defined below, (the “SPV Purchase and Sale Note”) in an original principal amount equal to the aggregate fair market value of the acquired insurance policies. The SPV Purchase and Sale Note has the same material terms and conditions as the other credit extensions under the SPV Investment Facility. SPV Investment Facility On July 5, 2023, the Company entered into a credit agreement between the Company, as borrower, and the SPV, as lender (the “SPV Investment Facility”) whereby the Company is able to borrow additional funds from SPV. The SPV Investment Facility provides, among other things, for the following: requires that certain subsidiaries of the Company guarantee the credit extensions provided under the SPV Investment Facility pursuant to separate documentation; is unsecured without collateral security provided in favor of SPV and subordinated in right of payment to the Company’s obligations under the Owl Rock Credit Facility, subject to limited specified exceptions and circumstances for permitting early payment; provides for certain credit extensions in an aggregate principal amount of $25.0 million recorded in the SPV purchase and sale note line item on the condensed consolidated balance sheets, which includes: (i) an initial credit extension in an original principal amount of $ 15.0 provides for proceeds to be used for payment of certain transaction expenses, general corporate purposes and any other purposes not prohibited by the agreement or applicable law; matures on July 5, 2026, three years after the closing of the SPV Investment Facility, subject to two automatic extensions of one year each without any amendment of the relevant documentation, but also subject to applicable subordination restrictions in relation to the Owl Rock Credit Facility; provides for interest to accrue on the SPV Investment Facility at a rate of 12% per annum, payable quarterly, all of which is to be paid in-kind provides a default rate that will accrue at 2.00% per annum (subject to applicable subordination restrictions) over the rate otherwise applicable. If cash payment is not permitted due to applicable subordination restrictions or otherwise, such default interest shall be paid in-kind; provides that no principal payments shall be required prior to maturity; contains financial and other covenants substantially similar and not materially worse than those contained in the Owl Rock Credit Facility from the perspective of the Company; and provides for certain specified events of default (including certain events of default subject to grace or cure periods), with the occurrence and during the continuance of such events of default enabling the lender under the SPV Investment Facility to accelerate the obligations under the SPV Investment Facility, among other rights or remedies, subject to applicable subordination restrictions. Fixed Rate Senior Unsecured Notes On November 10, 2023, the Company issued and sold fixed rate senior unsecured notes of $35,650,000 aggregate principal amount of the Company’s senior unsecured promissory notes (“Fixed Unsecured Notes”). The net proceeds after related debt issue costs, were used by the Company to repay the Owl Rock Credit Facility, with the remaining to be used for general corporate purposes. This loan is based on a fixed interest rate of 9.875%, provides for quarterly interest payments beginning on February 15, 2024, and has a term of five years with a maturity date of November 15, 2028. The Company has the option to redeem the Fixed Unsecured Notes in whole or in part at a price of 100% of the outstanding principal balance on or after November 15, 2027. The notes will be senior unsecured obligations of the Company and will rank equal in right of payment to all of the Company’s other senior unsecured indebtedness from time to time outstanding. Long-term Incentive Plan In October of 2023, the Compensation Committee approved the issuance of 2,468,500 restricted stock units (“RSU’s”) to executives, employees and directors as part of the Company’s 2023 Long-Term Equity Compensation Incentive Plan (“Long-term Incentive Plan”) This plan provides for equity-based awards, including restricted stock units, performance stock units (“PSU”), stock options and unrestricted shares of common stock, may be granted to officers, key employees and directors of the Company. The Company has granted RSUs that provide the right to receive, subject to service based vesting conditions, shares of common stock pursuant to the Equity Plan. After the issuance, 621,500 shares of common stock remained available for issuance of the 3,090,000 shares that are authorized for issuance under the Long-term Incentive Plan. The expense associated with the awards will be based on the fair value of the shares as of the grant date, where the Company will elect to straight line recognition over the vesting period, which is three years. STOCK- BASED COMPENSATION CEO Restriction Agreement: Effective upon Business Combination close, the Chief Executive Officer (“CEO”) entered into a Restriction Agreement with Abacus Life, Inc. that provides terms for the CEO’s ownership interest grant that were assigned to him from the three original founders of Abacus Settlements. As of the Closing Date as provided in the Merger Agreement amended on April 21, 2023, the CEO shall receive 4,569,922 shares of Restricted Stock. | |
Abacus Settlements, LLC | |||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||
SUBSEQUENT EVENT | 8. SUBSEQUENT EVENT On June 30, 2023, Abacus consummated the merger with LMA. Abacus has evaluated its subsequent events through August 14, 2023, the date that the financial statements were issued and determined that there were no events that occurred that required disclosure. | 15. SUBSEQUENT EVENTS |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Basis of Presentation and Unaudited Condensed Consolidated Financial Statements | Basis of Presentation The Abacus Merger has been accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of Abacus were recorded at the fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net assets acquired was recognized as goodwill. As a result of the Business Combination, the Company evaluated if ERES, Abacus, or LMA is the predecessor for accounting purposes. In considering the foregoing principles of predecessor determination and in light of the Company’s specific facts and circumstances, management determined that LMA and Abacus are dual predecessors for accounting purposes. The financial statement presentation for Abacus Life, Inc. includes the purchase accounting effects of the Abacus Merger as of the Closing Date with the financial statements of LMA as the comparative period. The predecessor financial statements for Abacus are included separately within this report. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and are prepared in accordance with U.S. GAAP. | Basis of Presentation LLC and its wholly owned and controlled subsidiaries and subsidiaries in which the Company holds a controlling financial interest or is the primary beneficiary. Intercompany transactions and accounts have been eliminated in consolidation. |
Unaudited Condensed Consolidated Financial Statements | Unaudited Condensed Consolidated Financial Statements Refer to this note in the LMA annual financial statements for the full list of the Company’s significant accounting policies. The details in those notes have not changed, except as discussed below and as a result of normal adjustments in the interim periods. | |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidations On January 1, 2021, the Company entered into an option agreement with two commonly owned full-service origination, servicing, and investment providers (the “Providers”), in which the Company agreed to fund certain capital needs with an option to purchase the outstanding equity ownership of the Providers (the “Option Agreement”). The Company accounted for its investment in the call options under the Option Agreement as an equity security, pursuant to ASC 321, Investments-Equity Securities Derivatives and Hedging The Company provided $0 and $40,800 of funding for the three months ended September 30, 2023 and September 30, 2022, respectively, and provided $29,721 and $283,047 of funding for the nine months ended September 30, 2023 and September 30, 2022, respectively, which is included in other (expense) income on the condensed consolidated statements of operations and comprehensive income. Refer to Note 11 for further details. For the period ended September 30, 2023, and for the year ended December 31, 2022, the Providers were considered to be VIEs, but were not consolidated in the Company’s condensed consolidated financial statements due to a lack of the power criterion or the losses/benefits criterion. As of September 30, 2023, the unaudited financial information for the unconsolidated VIEs are as follows: held assets of $824,375 and liabilities of $191,632. As of December 31, 2022, the unaudited financial information for the unconsolidated VIEs are as follows: held assets of $987,964 and liabilities of $358,586. On October 4, 2021, the Company entered into an operating agreement with LMX Series, LLC (“LMX”) and three other unaffiliated investors to obtain a 70% ownership interest in LMX, which was newly formed in August 2021. LMX had no operating activity prior to the operating agreement being signed. LMX has a wholly owned subsidiary, LMATT Series 2024, Inc., a Delaware C corporation. While the Company and three other investors each contributed $100 to LMX, the Company directs the most significant activities by managing the investment offerings, and sponsoring and creating structured investment grade insurance liabilities, and thus was provided a 70% ownership interest. LMX is a VIE and the Company is the primary beneficiary of LMX. The Company has included the results of LMX and its subsidiaries in its condensed consolidated financial statements for the period ended September 30, 2023. On November 30, 2022, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created general partnership, LMA Income Series, GP, LLC. Subsequent to that, LMA Income Series, GP, LLC formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its condensed consolidated financial statements for the nine months ended September 30, 2023. On January 31, 2023, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created general partnership, LMA Income Series II, GP, LLC. Subsequent to that, LMA Income Series II, GP, LLC formed a limited partnership, LMA Income Series II, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series II, LP and thus has fully consolidated the limited partnership in its condensed consolidated financial statements for the nine months ended September 30, 2023. | Consolidation of Variable Interest Entities Accounting Standards Codification (“ASC”) Topic 810, Consolidations, requires the Company to separately disclose on its Consolidated Balance Sheets the assets of consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of December 31, 2022, total assets and liabilities of consolidated VIEs is $30,073,972 and $27,116,762, respectively. As of December 31, 2021, total assets and liabilities of consolidated VIEs is $400 and $0, respectively. On October 4, 2021, the Company entered into an Operating Agreement with LMX Series, LLC (“LMX“) and three other unaffiliated investors to obtain a 70% ownership interest in LMX, which was newly formed in August 2021. LMX had no operating activity prior to the Operating Agreement being signed. LMX has a wholly owned subsidiary, LMATT Series 2024, Inc., a Delaware C-Corporation. On March 3, 2022, the Company formed Longevity Market Advisors, LLC (“Longevity Market Advisors”), which they have an 80% ownership interest in. The Longevity Market Advisors legal entity was established primarily for the purpose of acquiring the assets of a broker/dealer, Regional Investment Services, Inc. (RIS), an Ohio corporation. Longevity Market Advisors is a VIE and the Company is the primary beneficiary of Longevity Market Advisors. The purchase price in exchange for RIS was $60,000. The Company evaluated whether this represented a business combination or an asset acquisition under ASC 805. While the purchase of the RIS represents a business, it was further determined that as RIS was purchased for the primary reason of being registered by the Financial Industry Regulatory Authority (“FINRA”). As there are no tangible or intangible assets of value from the RIS that would meet the capitalization criteria that have standalone value, the Company has expensed the purchase in general and administrative costs. Upon closing of the transaction, Longevity Market Advisors will comprise 100% of the ownership structure of RIS, and RIS will be a wholly owned subsidiary. The Company has included the results of Longevity Market Advisors and its subsidiaries in its consolidated financial statements for the year ended December 31, 2022. On November 30, 2022, LMA Series, LLC, a wholly owned subsidiary of the Company, signed an Operating Agreement to be the sole member of a newly created partnership general partnership, LMA Income Series, GP, LLC. Subsequent to that, LMA Income Series, GP, LLC formed a limited partnership, LMA Income Series, LP and issued partnership interests to limited partners in a private placement offering. It was determined that LMA Series, LLC is the primary beneficiary of LMA Income Series, LP and thus has fully consolidated the limited partnership in its consolidated financial statements for the year ended December 31, 2022. |
Non-Consolidated Variable Interest Entities | Non-Consolidated two The Company accounted for its investment in the call options as an equity security, pursuant to ASC 321. In arriving at this accounting conclusion, the Company first considered whether the call option met the definition of a derivative pursuant to ASC 815 and concluded that it did not as the instrument does not provide for net settlement and accordingly is not a derivative. The Company also concluded that the call option does not provide the Company with a controlling financial interest in the legal entity pursuant to ASC 810. The call option includes material contingencies prior to exercisability that the Company does not anticipate will be resolved; additionally, the call option is in a legal entity for which the share price has no readily determinable fair value. The Company’s basis in the call option, pursuant to ASC 321, is zero and accordingly the call option is not reflected in the statement of financial position The Company provided $347,013 of funding for the year-ended December 31, 2022 which is included in Other (Expense) Income on the Consolidated Statements of Operations and Comprehensive Income (Loss) and $ 120,000 For the year ended December 31, 2022 and 2021, the Providers were considered to be VIEs, but were not consolidated in our consolidated financial statements due to a lack of the power criterion or the losses/benefits criterion. For the year ended December 31, 2022, the unaudited financial information for the unconsolidated VIE’s are as follows: held assets of $ 126,040 0 861,924 358,586 non-consolidated 122,279 0 474,288 2,218 | |
Noncontrolling Interest | Noncontrolling Interest Net income of a consolidated entity is allocated to noncontrolling interests based on the noncontrolling shareholder’s ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in net income (loss) attributable to noncontrolling interests in the condensed consolidated statements of operations and comprehensive income. | Noncontrolling Interest Net income of a consolidated entity is allocated to noncontrolling interests based on the noncontrolling shareholder’s ownership interest during the period. The net income or loss that is not attributable to the Company is reflected in Net income (loss) attributable to noncontrolling interests in the Consolidated Statement of Operations and Comprehensive Income (Loss). |
Use of Estimates | Use of Estimates | Use of Estimates ng |
Life Insurance Settlement Policies | Life Insurance Settlement Policies Investments in Insurance Contracts The Company follows ASC 820, Fair Value Measurements and Disclosures included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s valuation of life settlements is considered to be Level 3, as there is currently no active market where we are able to observe quoted prices for identical assets. The Company’s valuation model incorporates significant inputs that are not observable. Refer to Note 10 for further details. For policies held at fair value, changes in fair value are reflected in the unaudited condensed consolidated statement of operations and comprehensive income under active management revenue in the period the change is calculated. For policies held under the investment method, the Company tests the impairment if we become aware of information indicating that the carrying value plus undiscounted future premiums of a policy may not be recoverable. This information is gathered initially through extensive underwriting procedures at purchase of the settlement contract, as well as through periodic underwriting review that include medical reports and life expectancy evaluations. The policies held by the Company using the investment method are expected to be owned for a shorter-term, and are actively marketed to potential buyers. The market feedback received through these interactions provides the Company with information related to a potential impairment. If a policy is determined to be impaired, the Company will adjust the carrying value to the fair value determined through the impairment analysis. The Company accounts for cash proceeds from sale and maturity of life insurance settlement policies, as well as cash outflows for premium payments, as operating activities within the condensed consolidated statements of cash flows. | Life Insurance Settlement Policies ASC 325-30, Investments in Insurance Contracts The Company follows ASC 820, Fair Value Measurements and Disclosures For policies held under the investment method, the Company tests the impairment if we become aware of information indicating that the carrying value plus undiscounted future premiums of a policy may not be recoverable. This information is gathered initially through extensive underwriting procedures at purchase of the settlement contract, as well as through periodic underwriting review that include medical reports and life expectancy evaluations. The policies held by the Company using the investment method are expected to be owned for a shorter-term and are actively marketed to potential buyers. The market feedback received through these interactions provides the Company with information related to a potential impairment. If a policy is determined to be impaired, the Company will adjust the carrying value to the fair value determined through the impairment analysis. The Company accounts for cash proceeds from sale and maturity of life insurance settlement policies, as well as cash outflows for premium payments, as operating activities within the Consolidated Statements of Cash Flows. |
Going Concern | Going Concern | |
Cash and Cash Equivalents | Cash and Cash Equivalents highly-liquid | |
Fair Value Measurements | Fair Value Measurements Level 1 Level 2 Level 3 The Company’s financial instruments consist of cash, cash equivalents, accounts receivables, due to affiliates, equity investments in privately held companies, S&P options, life settlement policies, available for sale securities, market-indexed debt and secured borrowings. Cash, cash equivalents, accounts receivables, and due to affiliates are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Equity investments in privately held companies without readily determinable fair values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available. Available-for-sale S&P options are recognized at fair value using quoted market prices in active markets, with changes in fair value included in net income. Market-indexed debt is measured on a quarterly basis, with qualifying changes in fair value recognized in net income, except for the portion of the total change in the fair value of the liability that results from a change in the instrument-specific credit risk, which is separately included in other comprehensive income in accordance with ASC 825-10-45-5. | |
Related party receivables | Related party receivables | |
Other Investments | Other Investments | |
Available-For-Sale Securities | Available-For-Sale available-for-sale available-for-sale Available-for-Sale | |
Other Noncurrent Assets, at fair value | Other Noncurrent Assets, at fair value | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets To test for impairment, a qualitative assessment is performed to determine if it is more likely-than-not that the fair value of a reporting unit is less than its carrying value, including goodwill. This initial assessment includes, among other factors, consideration of: (i) past, current and projected future earnings and equity; (ii) recent trends and market conditions; and (iii) valuation metrics involving similar companies that are publicly traded and acquisitions of similar companies, if available. If the more likely-than-not threshold is met, a quantitative impairment test is performed by comparing the estimated fair value with the carrying value. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, goodwill is considered impaired and will be determined as the amount by which the reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company’s reporting units are at the operating segment level; each operating segment represents a business and discrete financial information is available and reviewed regularly by management. Determining the fair value of its reporting units is subjective in nature and involves the use of significant estimates and assumptions, including projected net cash flows, discount and long-term growth rates. The Company determines the fair value of its reporting units based on an income approach and market approach, whereby the fair value of the reporting unit is derived from the present value of estimated future cash flows associated with the reporting unit. The assumptions about estimated cash flows include factors such as future premiums, loss and expenses, general and administrative expenses and industry trends. The Company considers historical rates and current market conditions when determining the discount and long-term growth rates to use in its analysis. The Company considers other valuation methods if the facts and circumstances indicate these methods provide a more representative approximation of fair value. Changes in these estimates based on evolving economic conditions or business strategies could result in material impairment charges in future periods. The Company bases its fair value estimates on assumptions it believes to be reasonable. Actual results may differ from those estimates. As of September 30, 2023, there were no events or changes in circumstances that indicated that a carrying | |
Contract Balances | Cost of Revenues (excluding Depreciation and Amortization) Income Taxes | |
Income Taxes | Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and the Company’s experience with similar operations. Existing favorable contracts are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also remeasured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. | Income Taxes S-corporation C- C-corporations For LMATT Series 2024, Inc. taxes on earnings are based on pretax financial accounting income (losses). The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step The Company recognizes interest and penalties as a component of income tax expense. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. |
Concentrations | Concentrations anc Two related party customers accounted for 5% and 5% of the total balance of accounts receivable and related party receivables as of September 30, 2023, respectively, and two related party customers accounted for 75% and 16% of the total accounts receivable and related party receivables as of December 31, 2022, respectively. The largest receivables balances are from related parties where the exposed credit risk is estimated to be low. As such, there is no allowance for doubtful accounts as of September 30, 2023, and December 31, 2022. One customer accounted for 13% of active management revenue for the three months ended September 30, 2023. Two related party customers each accounted for 39% and 39% of the portfolio servicing revenue for the three months ended September 30, 2023. One customer accounted for 22% of active management revenue, while 9% of revenue related to 2 policies that matured that were accounted for under the investment method and 1 policy that matured that was accounted for under the fair-value method for the nine months ended September 30, 2023. Two related party customers each accounted for 36% and 37% of the portfolio servicing revenue for the nine months ended September 30, 2023. Two customers accounted for 44% and 29% of the total revenues for the nine months ended September 30, 2022. | Concentrations available-for-sale nsu Two related party customers accounted for 75% and 16% of the total accounts receivable as of December 31, 2022 and two related party customers accounted for 51% and 49% as of December 31, 2021. The largest receivables balances are from related parties where exposed credit risk is low. As such, there is no allowance for doubtful accounts as of December 31, 2022 and December 31, 2021. One customer accounted for 51% of active management revenue, while 22% of revenue related to two policies that matured that were accounted for under the investment method for the year-ended December 31, 2022. Two related party customers each accounted for 28% of the portfolio servicing revenue for the year ended December 31, 2022. Three customers accounted for 29%, 29% and 20% of the total revenues for the year ended December 31, 2021, respectively. |
Warrants | Warrants Distinguishing Liabilities from Equity For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed consolidated statements of operations and comprehensive income. | |
Stock-Based Compensation | Stock-Based Compensation Compensation - Stock Compensation gnize | |
Property and Equipment, Net | Property and Equipment, Net Estimated Useful Life Furniture and fixtures 5 years Leasehold improvements Shorter of remaining lease term or estimated useful life Expenditures for maintenance and repairs that do not extend the useful lives of property and equipment are expensed as incurred. Upon retirement or sale of assets, the cost and related accumulated depreciation are written off and any resulting gain or loss is reflected in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Property and equipment are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of property and equipment is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. There were no impairments recognized during the years ended December 31, 2022 and 2021, respectively. Property and equipment to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. | |
Revenue Recognition | Revenue Recognition Portfolio Servicing Revenue — and ensuring timely payment of optimized premiums computed to derive maximum return on maturity of the policy. The company neither assumes the ownership of the contracts nor undertakes the responsibility to make the premium payments, which remains with the owner of the policy. These service arrangements have contractual terms typically ranging from one-month Under consulting engagements, the Company provides services typically for the owners of life settlement contracts who are often customers of the servicing business line, or customers of Abacus. These consulting engagements are comprised of valuation, actuarial services, and overall policy assessments related life settlement contracts and are short-term in nature. The performance obligations are typically identified as separate services with a specific deliverable or a group or deliverables to be provided in tandem, as agreed to in the engagement letter or contract. Each service provided under a contract is considered as a performance obligation and revenue is recognized at a point in time when the deliverable or group of deliverables is transferred to the customer. Active Management Revenue — Other Consideration — Cost to Obtain and Fulfill Contracts — | |
Segments | Segments | |
Lessee | Leases Leases The Company has one lease for office space in Orlando, FL that is accounted for as an operating lease and goes through July 31, 2024. The Company is responsible for utilities, maintenance, taxes and insurance, which are variable payments based on a reimbursement to the lessor of the lessor’s costs incurred. The Company excludes variable lease payments from the measurement of lease liabilities and right-of-use non-lease The Company has elected the short-term lease exemption, which permits the Company to not recognize a lease liability and ROU asset for leases with an original term of one year or less. Currently the Company does not have any short-term leases. The Company’s current lease includes a renewal option. The Company has determined that the renewal option is not reasonably certain of exercise based on an evaluation of contract, market and asset-based factors, and therefore does not include periods covered by renewal options in its lease term. The Company’s leases generally do not include purchase options, residual value guarantees, or material restrictive covenants. The Company determines its lease liability and ROU by calculating the present value of future lease payments. The present value of future lease payments is discounted using the Company’s incremental borrowing rate. As the Company’s leases generally do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on market yields and comparable credit ratings, adjusted for lease term, to determine the present value of fixed lease payments based on information available at the lease commencement date. The Company does not have any finance leases, nor is the Company a lessor (or sublessor). See Note 16 for additional disclosures related to leases. | |
Earnings Per Unit | Earnings Per Unit pr e per-unit | |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Basis of Presentation and Unaudited Condensed Consolidated Financial Statements | Basis of Presentation | |
Unaudited Condensed Consolidated Financial Statements | Unaudited Condensed Financial Statements | |
Use of Estimates | Use of Estimates contingent assets and liabilities at the date of financial statements and the reports amounts of revenue and expenses during the reporting periods. Abacus’ estimates, judgments, and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from the estimates. Estimates are used when accounting for revenue recognition and related costs, the selection of useful lives of property and equipment, impairment testing, valuation of other receivables from clients, income taxes, and legal reserves. | |
Going Concern | Going Concern | |
Other receivables | Other receivables Abacus provides an allowance for credit losses equal to the estimated collection losses that will be incurred in collection of all receivables. Management determines the allowance for credit losses based on a review of outstanding receivables, historical collection experience, current economic conditions, and reasonable and supportable forecasts. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is deemed remote. Abacus does not have any material allowance for credit losses as of June 30, 2023 or December 31, 2022. If the financial condition of Abacus’ customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Abacus did not record material allowance for credit losses as of June 30, 2023, and December 31, 2022, respectively. | |
Concentrations | Concentrations | |
Advertising | Advertising | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Basis of Presentation and Unaudited Condensed Consolidated Financial Statements | Basis of Presentation | |
Use of Estimates | Use of Estimates | |
Going Concern | Going Concern | |
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Fair Value Measurements | Fair Value Measurements Level 1 Level 2 Level 3 The carrying values of the Company’s financial assets and liabilities, including cash and cash equivalents, premiums, commissions and fees receivable, premiums payable and accrued expenses and other current liabilities, approximate their fair values because of the short period of time to maturity and liquidity of those instruments. | |
Related party receivables | Related party receivables | |
Other receivables | Other receivables The Company provides an allowance for credit losses equal to the estimated collection losses that will be incurred in collection of all receivables. Management determines the allowance for credit losses based on a review of outstanding receivables, historical collection experience, current economic conditions, and reasonable and supportable forecasts. Account balances are charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is deemed remote. The Company does not have any material allowance for credit losses as of December 31, 2022 or December 31, 2021. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company did not record material allowance for credit losses as of December 31, 2022 and December 31, 2021, respectively. | |
Contract Balances | Contract Balances | |
Income Taxes | Income Taxes The Company records uncertain tax positions in accordance with ASC 740, Income Taxes The Company recognizes interest and penalties as a component of income tax expense. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. | |
Concentrations | Concentrations The Company maintains cash deposits with a major bank which from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institution and believes that the risk of loss is minimal. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying Balance Sheet. The Company extends different levels of credit to its customers and maintains allowance for credit loss accounts based upon the expected collectability of accounts receivable. The Company’s procedures for determining this allowance includes evaluating individual customer receivables, considering a customer’s financial condition, monitoring credit history and current economic conditions, using historical experience applied to an aging of accounts, and reasonable and supportable forecasts. | |
Advertising | Advertising | |
Property and Equipment, Net | Property and Equipment—Net Years Computer equipment 5 Office furniture 5 Expenditures for repairs and maintenance are charged to expense in the period incurred. When items of property and equipment are sold or retired, the related costs and accumulated depreciation are removed from the accounts. The difference between the net book value of the assets and proceeds from disposal is recognized as a gain or loss on disposal, which is included in other income), in the statements of operations and comprehensive (loss) income. Property and equipment are tested for recoverability whenever events or changes in circumstance indicate that their carrying amounts may not be recoverable. An impairment loss is recognized if the carrying amount of property and equipment is not recoverable and exceeds its fair value. Recoverability is determined based on the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group. There were no impairments recognized during the years ended December 31, 2022 and 2021, respectively. Property and equipment to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. | |
Revenue Recognition | Revenue Recognition commissions received and the reimbursement of transaction costs. For revenue disaggregation based upon the source of the policy, see disclosure in Note 8—Revenue. The Company’s revenue-generating arrangements are within the scope of ASC 606, Revenue from Contracts with Customers For agent and broker commissions received and transaction costs reimbursed, the Company has determined that it is acting as the principal in the relationship as it maintains control of the services being performed as part of performance obligation prior to facilitating the transfer of the life settlement policy to the investor. While the origination fees are fixed amounts based on the face value of the policy death benefit, there is variable consideration present due to the owners recission right. When variable consideration is present in a contract, the Company estimates the amount of variable consideration to which it expects to be entitled at contract inception and again at each reporting period until the amount is known. The entity applies the variable consideration constraint so that variable consideration is included in the transaction price only to the extent it is probable that a subsequent change in estimate will not result in a significant revenue reversal. While origination fees are variable due to the recission periods, given that the recission periods are relatively short in nature, the Company has concluded that such fees are fully constrained until the rescission period lapses and thus records revenue at a fixed amount based on the face value of the policy death benefit after the recission period is over. Cost to Obtain or Fulfill Contracts | |
Segments | Segment | |
Lessee | Leases Leases In April 2022, the Company entered into an agreement to lease additional office space in Orlando, Florida from a vendor. The lease commenced on May 1, 2022 and goes through October 30, 2023. Historically, the Company’s lease portfolio consisted of a single lease of office space in Orlando, Florida, which is accounted for as an operating lease. In April 2021, the lease was modified to expand the office space leased by the Company and also extend the term of the lease through July 31, 2024. The Company is responsible for utilities, maintenance, taxes and insurance, which are variable payments based on a reimbursement to the lessor of the lessor’s costs incurred. The Company excludes variable lease payments from the measurement of lease liabilities and right-of-use(“ROU”) assets recognized on the Company’s balance sheets. Variable lease payments are recognized as a lease expense on the Company’s statements of operations and comprehensive (loss) income in the period incurred. The Company has elected the practical expedient to account for lease components and non-lease components together as a single lease component for its real estate leases noted above. The Company has elected the short-term lease exemption, which permits the Company to not recognize a lease liability and ROU asset for leases with an original term of one year or less. Currently, the Company does not have any short-term leases. The Company’s current lease includes a renewal option. The Company has determined that the renewal option is not reasonably certain of exercise based on an evaluation of contract, market and asset-based factors, and therefore does not include periods covered by renewal options in its lease term. The Company’s leases generally do not include purchase options, residual value guarantees, or material restrictive covenants. The Company determines its lease liability and ROU by calculating the present value of future lease payments. The present value of future lease payments is discounted using the Company’s incremental borrowing rate. As the Company’s leases generally do not have a readily determinable implicit rate, the Company uses its incremental borrowing rate based on market yields and comparable credit ratings, adjusted for lease term, to determine the present value of fixed lease payments based on information available at the lease commencement date. The Company does not have any finance leases, nor is the Company a lessor (or sublessor). See Note 14 for additional disclosures related to leases. | |
Earnings Per Unit | Earnings Per Unit | |
Intangible Assets—Net | Intangible Assets—Net Internal-Use Software | |
State security deposit and Certificate of Deposit | State security deposit and Certificate of Deposit | |
Commissions | Commissions |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Abacus Settlements, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Summary Of Property And Equipment Are Stated At Cost Less Accumulated Depreciation | Property and equipment are stated at cost less accumulated depreciation and are depreciated on a straight-line basis over the following estimated useful lives: Estimated Useful Life Furniture and fixtures 5 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Abacus Settlements, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Summary Of Property And Equipment Are Stated At Cost Less Accumulated Depreciation | Depreciation expense is recognized over the useful lives of the assets using the straight-line method. The estimated useful life of each asset category is as follows: Years Computer equipment 5 Office furniture 5 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase price allocation | Net Assets Identified Fair Value Intangibles $ 32,900,000 Goodwill 140,287,000 Current Assets 1,280,100 Non-Current Assets 901,337 Deferred Tax Liabilities (8,310,966 ) Accrued Expenses (524,400 ) Other Liabilities (1,171,739 ) Total Fair Value $ 165,361,332 |
Value conveyed | Value Conveyed Amount Abacus Purchase Consideration $ 165,361,332 LMA Business Enterprise Value $ 366,388,668 Total Consideration $ 531,750,000 |
Intangible assets acquired | Intangible assets were comprised of the following: Asset Type Fair Value Useful Life Valuation Methodology Customer Relationships-Agents $ 12,600,000 5 years Multi-period excess earnings method Customer Relationships-Financing Entities 11,000,000 8 years Multi-period excess earnings method Internally Developed and Used Technology-APA 1,600,000 2 years Relief from royalty method Internally Developed and Used Technology-Marketplace 100,000 3 years Replacement cost method Trade Name 900,000 Indefinite Relief from royalty method Non-Compete Agreements 4,000,000 2 years With and without method State Insurance Licenses 2,700,000 Indefinite Replacement cost method Total Fair Value $ 32,900,000 |
Pro forma financial information | The supplemental pro forma financial information in the table below summarizes the combined results of operations for the Business Combination as if the Companies were combined as of January 1, 2022. The unaudited supplemental pro forma financial information as presented below is for illustrative purposes and does not purport to represent what the results of operations would actually have been if the business combinations occurred as of the date indicated or what the results would be for any future periods. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Proforma revenue $ 21,120,930 $ 17,538,734 $ 55,890,580 $ 48,830,191 Proforma net income 1,050,972 10,232,457 14,424,416 22,427,585 |
LIFE INSURANCE SETTLEMENT POL_2
LIFE INSURANCE SETTLEMENT POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | ||
Schedule of Life Settlement Contracts, Fair Value Method | The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of September 30, 2023: Policies Carried at Fair Value— Remaining Life Expectancy (Years) Policies Face Value Fair Value 0-1 0 $ — $ — 1-2 8 10,639,000 8,018,927 2-3 13 26,725,000 8,912,395 3-4 36 69,378,938 28,670,576 4-5 26 22,391,998 8,115,654 Thereafter 145 174,470,094 29,867,822 228 $ 303,605,030 $ 83,585,374 | The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of December 31, 2022: Policies Carried at Fair Value— Remaining Life Expectancy (Years) Number of Life Face Value Fair Value 0-1 — $ — $ — 1-2 1 200,000 160,000 2-3 11 3,085,549 2,274,406 3-4 1 2,200,000 1,406,451 4-5 1 1,000,000 526,416 Thereafter 21 33,606,605 9,442,079 35 $ 40,092,154 $ 13,809,352 |
Schedule of Life Settlement Contracts, Investment Method | Policies accounted for using the investment method— Remaining Life Expectancy (Years) Number of Face Value Carrying 0-1 0 $ — $ — 1-2 1 500,000 329,714 2-3 2 1,500,000 437,775 3-4 1 8,000,000 82,869 4-5 2 500,000 320,110 Thereafter 6 26,800,000 2,946,031 12 $ 37,300,000 $ 4,116,499 Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of September 30, 2023, are as follows: 2023 remaining $ 59,184 2024 411,445 2025 403,224 2026 97,789 2027 71,775 Thereafter 654,558 Total $ 1,697,975 | Policies accounted for using the investment method— Remaining Life Expectancy (Years) Number of Life Face Value Carrying 0-1 1 $ 3,000,000 $ 1,220,000 1-2 1 500,000 327,683 2-3 2 2,000,000 1,039,088 3-4 1 500,000 260,000 4-5 2 3,850,000 845,000 Thereafter 11 32,480,000 5,024,340 18 $ 42,330,000 $ 8,716,111 Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of December 31, 2022, are as follows: 2023 $ 799,201 2024 896,961 2025 895,559 2026 981,749 2027 1,096,323 Thereafter 4,197,118 Total $ 8,866,912 |
PROPERTY AND EQUIPMENT-NET (Tab
PROPERTY AND EQUIPMENT-NET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Summary of Property and Equipment, Net | Property and equipment-net composed of the following: September 30, December 31, Computer equipment $ 240,922 $ — Furniture and fixtures 28,144 19,444 Leasehold improvements 7,726 5,902 Property and equipment—gross 276,792 25,346 Less: accumulated depreciation (14,911 ) (6,729 ) Property and equipment—net $ 261,882 $ 18,617 | Property and equipment, net comprised of the following: As of As of December 31, 2022 December 31, 2021 Furniture and fixtures $ 19,444 $ 19,444 Leasehold improvements 5,902 5,902 Property and equipment—gross 25,346 25,346 Less: accumulated depreciation (6,729 ) (2,447 ) Property and equipment—net $ 18,617 $ 22,899 |
Abacus Settlements, LLC | ||
Summary of Property and Equipment, Net | Property and equipment, net consists of the following: 2022 2021 Computer equipment $ 91,993 $ 45,172 Office furniture 68,778 54,069 Leasehold improvement 2,569 — Total property and equipment 163,340 99,241 Less: accumulated depreciation (91,122 ) (65,938 ) Property and equipment—net $ 72,218 $ 33,303 |
INTANGIBLE ASSETS—NET (Ta
INTANGIBLE ASSETS—NET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Finite-Lived Intangible Assets | Intangible Assets Acquired comprised of the following: Asset Type Fair Value Useful Life Valuation Methodology Customer Relationships—Agents $ 12,600,000 5 years Multi-period excess-earnings method Customer Relationships—Financial Relationships 11,000,000 8 years Multi-period excess-earnings method Internally Developed and Used Technology-APA 1,600,000 2 years Relief from Royalty Method Internally Developed and Used Technology-Market Place 100,000 3 years Replacement Cost Method Trade Name 900,000 Indefinite Relief from Royalty Method Non-Compete Agreements 4,000,000 2 years With or Without Method State Insurance Licenses 2,700,000 Indefinite Replacement Cost Method $ 32,900,000 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Schedule of Finite-Lived Intangible Assets | Intangible assets—net, consist of the following: 2022 2021 Software $ 241,664 $ 226,664 Less: accumulated amortization 92,731 12,593 Intangible assets—net $ 148,933 $ 214,071 |
ACCRUED PAYROLL AND OTHER EXP_2
ACCRUED PAYROLL AND OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |
Schedule of Company's Accrued Payroll and Other Expenses | The Company’s accrued payroll and other expenses were as follows: 2022 2021 Accrued payroll $ 224,168 $ 188,529 Accrued credit card fees 235,680 172,189 Other expenses 82,018 150,128 Total accrued payroll and other expenses $ 541,866 $ 510,846 |
Abacus Settlements LLC - REVENU
Abacus Settlements LLC - REVENUE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Schedule of Disaggregation of Revenue | The following table presents a disaggregation of the Company’s revenue by major sources for the years ended December 31, 2022 and 2021: 2022 2021 Agent $ 12,156,552 $ 7,668,256 Broker 9,938,808 11,378,713 Client direct 3,108,103 3,545,175 Total $ 25,203,463 $ 22,592,144 | |
Schedule of Contract with Customer, Liability | The balances of contract liabilities arising from contracts with customers for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 Contract liabilities—beginning of year $ 1,678,791 $ 1,068,250 Additions to Contract Liabilities 322,150 1,678,791 Recognition of revenue deferred in the prior year (1,678,791 ) (1,068,250 ) Contract liabilities—end of year $ 322,150 $ 1,678,791 | |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Schedule of Disaggregation of Revenue | The following table presents a disaggregation of Abacus’ revenue by major sources for three months ended June 30, 2023 and 2022, and for six months ended June 30, 2023 and 2022: Three Months Ended 2023 Three Months Ended September 30, 2022 Six Months Ended 2023 Nine Months Ended September 30, 2022 Agent $ 3,334,402 $ 2,982,371 $ 7,143,016 $ 8,673,072 Broker 2,809,499 2,128,912 4,675,973 7,856,882 Client direct 740,789 920,197 1,365,687 2,516,190 Total $ 6,884,690 $ 6,031,480 $ 13,184,676 $ 19,046,144 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of the Components of Expense for Income Taxes | The components of provision for income taxes are as follows: December 31, 2022 December 31, 2021 Current provision: Federal $ — $ — State — — Foreign — — Total current tax — — Deferred provision (benefit): Federal 737,376 — State 152,567 — Foreign — — Total deferred tax 889,943 — Provision for income taxes $ 889,943 — |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differs from the federal statutory income tax rate applied to the profit loss before provision for income taxes due to the following: Year Ended Year Ended Income tax benefit computed at federal statutory rate $ 6,988,153 $ (28,058 ) Effect of pass through entities $ (6,147,068 ) $ (75,650 ) State taxes, net of federal benefit 174,024 (21,458 ) Valuation allowance (125,166 ) 125,166 Income tax benefit at effective tax rate $ 889,943 $ — |
Schedule of Deferred Tax Assets and Liabilities | The effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows: Year Ended Year Ended December 31, 2022 December 31, 2021 Deferred tax assets: Net operating loss carryforwards $ 167,554 $ 125,166 Basis Difference in Life Insurance Contracts $ 109,903 Other — — Gross deferred tax assets 277,457 125,166 Less: valuation allowance — (125,166 ) Total deferred tax assets 277,457 — Deferred tax liabilities: Unrealized Gain (1,641,277 ) — Other — — Gross deferred tax liabilities (1,641,277 ) — Deferred tax liabilities—net of allowance $ (1,363,820 ) $ — |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |
Schedule of the Components of Expense for Income Taxes | The components of expense for income taxes for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 State income taxes: Current $ 2,018 $ 1,200 Deferred — — Expense for income taxes $ 2,018 $ 1,200 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: Tax at federal statutory rate 21.00 % 21.00 % State taxes, net of federal benefit (4.00 ) 0.12 U.S. income attributable to pass-through entity (21.00 ) (21.00 ) Effective income tax rate (4.00 )% 0.12 % |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segments were as follows: Portfolio Servicing Active Management Originations Goodwill at January 1, 2023 $ — $ — $ — Additions — — 140,287,000 Goodwill at September 30, 2023 $ — $ — $ 140,287,000 |
Schedule of Finite-Lived Intangible Assets | Intangible Assets Acquired comprised of the following: Asset Type Fair Value Useful Life Valuation Methodology Customer Relationships—Agents $ 12,600,000 5 years Multi-period excess-earnings method Customer Relationships—Financial Relationships 11,000,000 8 years Multi-period excess-earnings method Internally Developed and Used Technology-APA 1,600,000 2 years Relief from Royalty Method Internally Developed and Used Technology-Market Place 100,000 3 years Replacement Cost Method Trade Name 900,000 Indefinite Relief from Royalty Method Non-Compete Agreements 4,000,000 2 years With or Without Method State Insurance Licenses 2,700,000 Indefinite Replacement Cost Method $ 32,900,000 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets and related accumulated amortization as of September 30, 2023 and December 31,2022 are as follows: September 30, 2023 Definite Lived Intangible Assets: Gross Value Accumulated Net Book Customer Relationships—Agents $ 12,600,000 $ 630,000 $ 11,970,000 Customer Relationships—Financial Relationships 11,000,000 343,750 10,656,250 Internally Developed and Used Technology-APA 1,600,000 200,000 1,400,000 Internally Developed and Used Technology-Market Place 100,000 8,333 91,667 Non-Compete Agreements 4,000,000 500,000 3,500,000 Balance at September 30, 2023 $ 29,300,000 $ 1,682,083 $ 27,617,917 Indefinite Lived Intangible Assets: Trade Name 900,000 — 900,000 State Insurance Licenses 2,700,000 — 2,700,000 Total Intangible Asset Balance at September 30, 2023 $ 32,900,000 $ 1,682,083 $ 31,217,917 |
Schedule of Estimated Annual Amortization for Intangible Assets | Estimated annual amortization of intangible assets for the next five years ending December 31 and thereafter is as follows: Remainder of 2023 $ 1,682,083 2024 6,728,333 2025 5,328,333 2026 3,911,667 2027 3,895,000 Thereafter 6,072,501 Total $ 27,617,917 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Summary of Revenue by Segment | Revenue related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023, and September 30, 2022, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Portfolio servicing $ 224,569 $ 382,245 $ 814,626 $ 1,372,573 Active management 18,926,144 11,125,503 39,921,061 28,411,475 Originations 10,214,489 — 10,214,489 — Segment revenue (including inter-segment) 29,365,202 11,507,748 50,950,176 29,784,048 Inter-segment elimination (8,244,272 ) — (8,244,272 ) — Total revenue $ 21,120,930 $ 11,507,748 $ 42,705,904 $ 29,784,048 | |
Summary of Segment Information | Information related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023 and September 30, 2022 is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Portfolio servicing $ (626,045 ) $ (106,817 ) $ (792,173 ) $ 561,935 Active management 13,856,637 9,859,671 34,144,789 25,381,144 Originations 4,525,381 — 4,525,381 — Total gross profit 17,755,973 9,752,854 37,877,997 25,943,079 Sales and marketing (1,704,154 ) (14,905 ) (3,116,999 ) (1,664,403 ) General and administrative (including stock based compensation of $4,583,632) (9,838,951 ) (59,816 ) (11,113,382 ) (706,523 ) Depreciation and amortization expense (1,694,853 ) (1,071 ) (1,696,994 ) (3,211 ) Other (expense) income 20,086 42,289 (1,565 ) (199,958 ) Loss on change in fair value of warrant liability (943,400 ) — (943,400 ) — Interest expense (2,679,237 ) — (3,620,695 ) — Interest income 63,826 — 71,283 — Gain (Loss) on change in fair value of debt 2,088,797 1,235,032 (309,865 ) 859,519 Unrealized (loss) gain on investments (306,800 ) (246,846 ) 491,356 (1,301,821 ) Provision for income taxes (1,710,315 ) (352,081 ) (2,238,419 ) (648,887 ) Less: Net gain (loss) attributable to non-controlling interests (147,611 ) (363,452 ) 339,692 (770,093 ) Net income attributable to Abacus Life, Inc. $ 903,361 $ 9,992,004 $ 15,739,009 $ 21,507,702 | Information related to the Company’s reporting segments for December 31, 2022 and December 31, 2021 is as follows: As of December 31, 2022 As of December 31, 2021 Portfolio Servicing $ 1,470,973 $ 1,079,986 Active Management 43,242,581 120,000 Total Revenue $ 44,713,553 $ 1,199,986 Portfolio Servicing $ 300,235 $ 406,093 Active Management 38,168,187 58,000 Gross profit $ 38,468,422 $ 464,093 Sales and Marketing $ (2,596,140 ) $ — General, administrative and other (1,066,403 ) (101,406 ) Other operating expenses — (493,849 ) Depreciation (4,282 ) (2,447 ) Other expense (347,013 ) — Interest (expense) (42,798 ) Interest income 1,474 Change on fair value of debt (90,719 ) — Unrealized gain(loss) on investments (1,045,623 ) — Income tax expense (889,943 ) — Net loss attributable to non-controlling (704,699 ) 148,155 Net income attributable to Longevity Market Assets, LLC $ 31,682,275 $ 14,546 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements, Recurring and Nonrecurring | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Fair Value Hierarchy As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ 83,585,374 $ 83,585,374 Available-for-sale securities, at fair value — — 1,000,000 1,000,000 Other investments — — 1,650,000 1,650,000 S&P 500 options 1,494,744 — — 1,494,744 Other assets 998,469 — — 998,469 Total assets held at fair value $ 2,493,213 $ — $ 86,235,374 $ 88,728,587 Liabilities: Long-term debt $ — $ — $ 59,544,907 $ 59,544,907 Private placement warrants — — 3,382,000 3,382,000 Total liabilities held at fair value: $ — $ — $ 62,926,907 $ 62,926,907 Fair Value Hierarchy As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ 13,809,352 $ 13,809,352 Available-for-sale securities, at fair value — — 1,000,000 1,000,000 Other investments — — 1,300,000 1,300,000 S&P 500 options 890,829 — — 890,829 Total assets held at fair value $ 890,829 $ — $ 16,109,352 $ 17,000,181 Liabilities: Long-term debt $ — $ — $ 28,249,653 $ 28,249,653 Total liabilities held at fair value: $ — $ — $ 28,249,653 $ 28,249,653 | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. As of December 31, 2022 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ 13,809,352 $ 13,809,352 Available-for-sale — — 1,000,000 1,000,000 Other Investments — — 1,300,000 1,300,000 S&P 500 options 890,829 — — 890,829 Tot assets held at fair value $ 890,829 $ — $ 16,109,352 $ 17,000,181 Liabilities: Long-term debt $ — $ — $ 28,249,653 $ 28,249,653 Fair Value Hierarchy As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Life settlement policies $ — $ — $ — $ — Available-for-sale — — 250,000 250,000 Other investments — — 1,250,000 1,250,000 Other non-current — — — — Tot assets held at fair value $ — $ — $ 1,500,000 $ 1,500,000 Liabilities: Long-term debt $ — $ — $ — $ — |
Fair Value Measurement Inputs and Valuation Techniques | If the discount rate increased or decreased by 2 percentage points and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of September 30, 2023, would be as follows: As of September 30, 2023 Rate Adjustment Fair Value Change in +2% $ 78,288,612 $ (5,296,762 ) No change 83,585,374 -2% 89,102,871 5,517,497 The following table presents the key assumptions in the analysis: Private Placement Warrants Expected implied volatility de minimis Risk-free interest rate 4.09 % Term to expiration 5.0 years Exercise price $ 11.50 Common Stock Price $ 10.03 Dividend Yield — % | If the discount rate increased or decreased by 2 percentage points and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of December 31, 2022, would be as follows: As of December 31, 2022 Change in Rate Adjustment Fair Value Fair Value +2% $ 12,376,891 $ (1,432,461 ) No change 13,809,352 — -2% 15,571,704 1,762,352 |
Schedules of Concentration of Risk, by Risk Factor | The following table provides information about the life insurance issuer concentrations that exceed 10% of total face value or 10% of total fair value of the Company’s life insurance policies as of September 30, 2023: Carrier Percentage of Percentage of Carrier American General Life Insurance Company 11.0 % 13.0 % A+ Transamerica 14.0 % 16.0 % A | The following table provides information about the life insurance issuer concentrations that exceed 10% of total death benefit or 10% of total fair value of the Company’s life insurance policies as of December 31, 2022: Carrier Face Value Fair Value Rating American General Life Insurance Company 17 % 15 % A John Hancock Life Insurance Company 31 30 A+ ReliaStar Life Insurance Company 5 10 NR Principal Life 10 10 A+ Securian Life Insurance Company 12 4 A+ |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a roll forward of the fair value of life insurance policies for the nine months-ended September 30, 2023: Fair value at December 31, 2022 $ 13,809,352 Policies purchased 116,053,728 Realized gain (loss) on matured/sold policies 9,688,422 Premiums paid (2,500,623 ) Unrealized gain(loss) on held policies 14,259,665 Change in estimated fair value 21,447,464 Matured/sold policies (70,225,793 ) Premiums paid 2,500,623 Fair value at September 30, 2023 $ 83,585,374 | The following table provides a roll forward of the fair value of life insurance as of December 31, 2022: Fair value at December 31, 2021 $ — Policies purchased 8,161,975 Realized gain on matured/sold policies 105,000 Premius Paid (433,626 ) Unrealized gain on held policies 5,742,377 Change in estimated fair value 5,413,751 Matured/sold policies (200,000 ) Premiums paid 433,626 Fair value at December 31, 2022 $ 13,809,352 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a roll forward of the fair value of the issued notes for the nine months ended September 30, 2023: Fair value at December 31, 2022 $ 28,249,653 Debt issued to third parties 88,618,714 Unrealized loss on change in fair value (risk-free) 309,865 Unrealized loss on change in fair value (credit-adjusted) included in OCI 1,635,596 Change in estimated fair value resulted into gain 1,945,461 Fair value at September 30, 2023 $ 118,813,828 | The following table provides a roll forward of the fair value of the issued as of December 31, 2022: Fair value at December 31, 2021 $ — Debt issued to third parties $ 30,028,640 Unrealized loss on change in fair value (risk-free) 90,719 Unrealized (gain) on change in fair value (credit-adjusted) (1,869,706 ) Change in estimated fair value (1,778,987 ) Fair value at December 31, 2022 $ 28,249,653 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Outstanding principal balances of Long-term debt comprises of the following: September 30, 2023 December 31, 2022 Cost Fair value Cost Fair value Market-indexed notes: LMATT Series 2024, Inc. $ 9,866,900 $ 9,311,800 $ 9,866,900 $ 8,067,291 LMATT Series 2.2024, Inc. 2,333,391 3,027,681 2,333,391 2,354,013 LMATT Growth & Income Series 1.2026, Inc 400,000 427,284 400,000 400,000 Secured borrowing: LMA Income Series, LP 21,889,444 22,242,291 17,428,349 17,428,349 LMA Income Series II, LP 24,535,851 24,535,851 — — Unsecured borrowing: Owl Rock Credit Facility 25,000,000 25,000,000 — — SPV Purchase and Sale Note 25,750,000 25,750,000 — — Sponsor PIK Note 10,785,778 10,785,778 — — Deferred Financing Cost (2,266,858 ) (2,266,858 ) — — Total long-term debt $ 118,294,506 $ 118,813,827 $ 30,028,640 $ 28,249,653 | Long-term debt comprises of the following: December 31, 2022 December 31, 2021 Cost Fair value Cost Fair value Market-indexed notes: LMATT Series 2024, Inc. $ 9,866,900 $ 8,067,291 $ — $ — LMATT Series 2.2024, Inc. 2,333,391 2,354,013 — — LMATT Growth & Income Series 1.2026, Inc. 400,000 400,000 — — Secured borrowing: LMATT Income Series, LP 17,428,349 17,428,349 — — Total long-term debt $ 30,028,640 $ 28,249,653 $ — $ — |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Expense | CEO Stock-based compensation expense is summarized as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock-based compensation expense $ 4,583,632 $ — $ 4,583,632 $ — |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity | Restricted Stock activity relative to the CEO for the nine months ended September 30, 2023 is summarized as follows: Number of Shares Weighted Average Outstanding at December 31, 2022 — $ — Granted 4,569,922 10.03 Forfeited — — Settled — — Outstanding at September 30, 2023 4,569,922 $ 10.03 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Related Party Transactions | For the three and nine months ended September 30, 2023, revenue earned, and contracts originated are below. Three and Nine September 30, Origination fee revenue $ 254,517 Transaction reimbursement revenue — Total $ 254,517 Cost $ 7,981 Face value 46,650,000 Total policies 7 Average Age 70 | |
Abacus Settlements, LLC | ||
Schedule of Related Party Transactions | For the years ended December 31, 2022 and December 31, 2021, revenue earned and contracts originated are as follows: December 31, December 31, 2022 2021 Origination fee revenue $ 6,586,922 $ 6,158,458 Commissions and transaction reimbursement revenue $ 8,656,885 $ 11,093,512 Total revenue $ 15,243,806 $ 17,251,970 Cost 87,143,005 106,633,792 Face value 481,648,010 459,217,638 Total policies 333 313 Average Age 75 78 |
SUPPLEMENTAL DISCLOSURE OF CA_2
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | For the years ended December 31, 2022 and December 31, 2021, respectively, supplemental cash flow information and supplemental disclosure of non-cash investing and financing activity consists of the following: 2022 2021 Supplemental cash flow information: Cash paid for income taxes $ 0 $ 1,200 Supplemental disclosure of non-cash investing and financing activity: Distributions owed to the members 1,411 11,857 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
ROU Assets and Lease Liabilities | The Company’s right-of-use assets and lease liabilities for its operating lease consisted of the following amounts as of September 30, 2023 and December 31, 2022: Nine Months Ended Year Ended Assets: Operating lease right-of-use assets $ 171,295 $ 77,011 Liabilities: Operating lease liability, current 173,799 48,127 Operating lease liability, non-current — 29,268 Total lease liability $ 173,799 $ 77,395 The table below shows a weighted-average analysis for lease terms and discount rates for all operating leases for the periods presented: Nine Months Ended Year Ended Weighted-average remaining lease term (in years) 0.80 1.58 Weighted-average discount rate 3.42 % 3.36 % | The Company’s ROU assets and lease liabilities for its operating leases consisted of the following amounts as of December 31, 2022 and 2021: Year Ended Year Ended December 31, 2022 December 31, 2021 Assets: Operating lease right-of-use $ 77,011 $ 122,503 Liabilities: Operating lease liability, current 48,127 45,107 Operating lease liability, non-current 29,268 77,396 Total lease liability — — 77,395 122,503 The table below shows a weighted-average analysis for lease terms and discount rates for all operating leases for the periods presented: Year Ended Year Ended December 31, 2022 December 31, 2021 Weighted-average remaining lease term (in years) 1.58 2.58 Weighted-average discount rate 3.36 % 3.36 % |
Lease Expense | The Company’s lease expense for the periods presented consisted of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Operating lease cost $ 69,904 $ 12,471 $ 94,846 $ 36,313 Variable lease cost 20,540 1,221 29,465 2,444 Total lease cost $ 90,444 $ 13,692 $ 124,311 $ 38,757 The following table shows supplemental cash flow information related to lease activities for the periods presented: Nine Months Ended 2023 2022 Cash paid for amounts included in the measurement of the lease liability Operating cash flows from operating leases $ 96,891 $ 36,121 ROU assets obtained in exchange for new lease liabilities — — | The Company’s lease expense for the periods presented consisted of the following: Year Ended Year Ended December 31, 2022 December 31, 2021 Operating lease cost $ 48,784 $ 19,868 Variable lease cost 3,664 1,019 52,449 20,887 The following table shows supplemental cash flow information related to lease activities for the periods presented: Cash paid for amounts included in the measurement of the lease liability Operating cash flows from operating leases $ 48,399 $ 19,868 ROU assets obtained in exchange for new lease liabilities — $ 139,025 |
Future Minimum Noncancellable Lease Payments | Future minimum noncancellable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at September 30, 2023 are as follows: Operating Remaining of 2023 $ 117,527 2024 118,058 2025 — 2026 — 2027 — Thereafter — Total operating lease payments (undiscounted) 235,585 Less: Imputed interest (61,786 ) Lease liability as of September 30, 2023 $ 173,799 | Future minimum noncancelable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at December 31, 2022 are as follows: Operating leases 2023 $ 49,855 2024 29,514 2025 — 2026 — 2027 — Thereafter — Total operating lease payments (undiscounted) 79,369 Less: Imputed interest (1,974 ) Lease liability as of December 31, 2022 $ 77,395 |
Abacus Settlements, LLC | ||
ROU Assets and Lease Liabilities | The Company’s ROU assets and lease liabilities for its operating leases consisted of the following amounts as of December 31, 2022 and 2021: As of December 31, 2022 2021 Assets Operating lease right-of-use asset $ 300,866 $ 367,508 Liabilities Operating lease liability, current 214,691 135,321 Operating lease liability, noncurrent 87,806 232,187 Total operating lease liabilities $ 302,497 $ 367,508 The table below shows a weighted-average analysis for lease term and discount rate for all operating leases as of December 31, 2022 and 2021: As of December 31, 2022 2021 Weighted-average remaining lease term (in years) 1.41 2.58 Weighted-average discount rate 3.71 % 3.36 % | |
Lease Expense | The Company’s lease expense for the periods presented consisted of the following: Year Ended December 31, 2022 2021 Operating lease cost $ 190,183 $ 126,178 Variable lease cost 9,403 10,756 Total lease cost $ 199,586 $ 136,935 The following table shows supplemental cash flow information related to lease activities for the periods presented: Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of the lease liability Operating cash flows from operating leases 201,478 126,178 ROU assets obtained in exchange for new lease liabilities 123,541 417,076 | |
Future Minimum Noncancellable Lease Payments | Future minimum noncancelable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at December 31, 2022 are as follows: Operating Leases 2023 221,182 2024 88,543 2025 — 2026 — 2027 — Thereafter — Total operating lease payments (undiscounted) $ 309,726 Less: Imputed interest (7,229 ) Lease liability as of December 31, 2022 $ 302,497 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted weighted average shares outstanding and earnings per share were as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Net income attributable to Longevity Market Assets $ 903,361 $ 9,992,004 $ 15,739,009 $ 21,507,702 Weighted-average shares used in computing net income per share, basic and diluted 63,349,823 50,369,350 54,632,826 50,369,350 Basic and diluted earnings per share: $ 0.01 $ 0.20 $ 0.29 $ 0.43 |
Abacus Settlements LLC - RELA_2
Abacus Settlements LLC - RELATED-PARTY TRANSACTIONS (Tables) | 6 Months Ended | 9 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Schedule of Related Party Transactions | For the three and nine months ended September 30, 2023, revenue earned, and contracts originated are below. Three and Nine September 30, Origination fee revenue $ 254,517 Transaction reimbursement revenue — Total $ 254,517 Cost $ 7,981 Face value 46,650,000 Total policies 7 Average Age 70 | |
Abacus Settlements, LLC | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Schedule of Related Party Transactions | For three months ended June 30, 2023 and 2022, and for the six months ended June 30, 2023 and nine months ended September 30, 2022, revenue earned, and contracts originated are as follows: Three Months Ended June 30, 2023 Three Months Ended September 30, 2022 Six Months Ended 2023 Nine Months Ended September 30, 2022 Origination fee revenue $ 1,504,532 $ 8,008,816 $ 2,952,837 $ 8,008,816 Transaction reimbursement revenue 75,332 235,455 140,960 235,455 Total $ 1,579,864 $ 8,244,271 $ 3,093,797 $ 8,244,271 Cost $ 5,290,504 $ 4,511,346 $ 11,656,637 $ 4,511,346 Face value 56,688,680 93,605,072 96,674,080 376,409,910 Total policies 38 82 72 265 Average Age 76 75 75 75 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | Jun. 30, 2023 USD ($) | Jun. 29, 2023 USD ($) $ / shares | Aug. 30, 2022 USD ($) | Sep. 30, 2023 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares |
Business Acquisition [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
LMA | ||||||
Business Acquisition [Line Items] | ||||||
Exchange ratio | 0.8 | 0.8 | ||||
Consideration | $ 366,388,668 | |||||
LMA and Abacus | ||||||
Business Acquisition [Line Items] | ||||||
Consideration | $ 531,750,000 | |||||
Abacus Settlements, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Consideration | $ 531,800,000 | $ 618,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 10 | $ 10 | ||||
Aggregate transaction proceeds threshold | $ 200,000,000 | |||||
Abacus Settlements, LLC | LMA | ||||||
Business Acquisition [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Aggregate consideration election | $ 20,000,000 | |||||
Abacus Settlements, LLC | LMA and Abacus | ||||||
Business Acquisition [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 10 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary Of Property And Equipment Are Stated At Cost Less Accumulated Depreciation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Shorter of remaining lease term or estimated useful life |
Abacus Settlements, LLC | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 5 years |
Abacus Settlements, LLC | Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Furniture and fixtures | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidation of Variable Interest Entities (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 03, 2022 USD ($) | Oct. 04, 2021 USD ($) investor | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 provider | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Assets | $ 304,301,937 | $ 304,301,937 | $ 59,094,847 | $ 1,840,218 | |||||||
Liabilities | 138,212,190 | 138,212,190 | 30,945,150 | 1,073,325 | |||||||
Option agreement, number of providers | provider | 2 | ||||||||||
Interest expense | 2,679,237 | $ 0 | 3,620,695 | $ 0 | 41,324 | 0 | |||||
Number of unaffiliated investors | investor | 3 | ||||||||||
Regional Investment Services Inc | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Consideration | $ 60,000 | ||||||||||
Variable Interest Entity, Primary Beneficiary | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Assets | 62,831,856 | 62,831,856 | 30,073,972 | 400 | |||||||
Liabilities | 56,775,736 | 56,775,736 | 27,116,762 | 0 | |||||||
Contribution amount | $ 100 | ||||||||||
Variable Interest Entity, Primary Beneficiary | LMX | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Ownership percentage | 70% | ||||||||||
Variable Interest Entity, Primary Beneficiary | Longevity Market Advisors LLC | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Ownership percentage | 80% | ||||||||||
Variable Interest Entity, Not Primary Beneficiary | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Assets | 824,375 | 824,375 | 987,964 | 596,567 | |||||||
Liabilities | 191,632 | 191,632 | 358,586 | 2,218 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Expense Support Agreement | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Interest expense | $ 0 | 40,800 | $ 29,721 | 283,047 | $ 347,013 | $ 120,000 | |||||
Subsidiaries | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Interest expense | $ 5,863 | $ 2,954 | $ 11,725 | $ 2,954 | |||||||
Subsidiaries | Longevity Market Advisors LLC | |||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||
Subsidiary, Ownership Percentage, Parent | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-Consolidated Variable Interest Entities (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 provider | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Option agreement, number of providers | provider | 2 | ||||||
Interest expense | $ 2,679,237 | $ 0 | $ 3,620,695 | $ 0 | $ 41,324 | $ 0 | |
Assets | 304,301,937 | 304,301,937 | 59,094,847 | 1,840,218 | |||
Liabilities | 138,212,190 | 138,212,190 | 30,945,150 | 1,073,325 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Assets | 824,375 | 824,375 | 987,964 | 596,567 | |||
Liabilities | 191,632 | 191,632 | 358,586 | 2,218 | |||
Variable Interest Entity, Not Primary Beneficiary | Provider One | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Assets | 126,040 | 122,279 | |||||
Liabilities | 0 | 0 | |||||
Variable Interest Entity, Not Primary Beneficiary | Provider Two | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Assets | 861,924 | 474,288 | |||||
Liabilities | 358,586 | 2,218 | |||||
Variable Interest Entity, Not Primary Beneficiary | Expense Support Agreement | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Interest expense | $ 0 | $ 40,800 | $ 29,721 | $ 283,047 | $ 347,013 | $ 120,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets—Net (Details) - Abacus Settlements, LLC - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-lived intangible asset, useful life | 3 years | |
Impairment of intangible assets | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Investments (Details) | Dec. 31, 2022 |
Other Investment | |
Noncontrolling Interest [Line Items] | |
Equity investments without readily determinable fair value ownership percentage | 20% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | $ 0 | |
Customer Concentration Risk | Accounts Receivable | Customer 1 | Related Party | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 5% | 75% | 51% | ||
Customer Concentration Risk | Accounts Receivable | Customer 2 | Related Party | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 5% | 16% | 49% | ||
Customer Concentration Risk | Revenue Benchmark | Customer 1 | Related Party | Portfolio servicing | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 39% | 36% | 28% | ||
Customer Concentration Risk | Revenue Benchmark | Customer 1 | Nonrelated Party | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 44% | 29% | |||
Customer Concentration Risk | Revenue Benchmark | Customer 1 | Nonrelated Party | Active management | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13% | 22% | 51% | ||
Customer Concentration Risk | Revenue Benchmark | Customer 2 | Related Party | Portfolio servicing | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 39% | 37% | 28% | ||
Customer Concentration Risk | Revenue Benchmark | Customer 2 | Nonrelated Party | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 29% | 29% | |||
Customer Concentration Risk | Revenue Benchmark | Customer 3 | Nonrelated Party | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20% | ||||
Customer Concentration Risk | Investment Method Revenue Benchmark | Customer 1 | Nonrelated Party | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 9% | 22% | |||
Abacus Settlements, LLC | Customer Concentration Risk | Revenue Benchmark | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 60% | 76% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Impairments recognized during the year | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment (Details) - segment | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | |||
Number of Operating Segments | 1 | 2 | |
Number of Reportable Segments | 3 | 1 | 2 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Abacus Settlements, LLC | ||
Advertising expense | $ 1,414,828 | $ 1,803,000 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Stock-based awards vesting period | 3 years |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) | Jun. 30, 2023 USD ($) |
LMA and Abacus | |
Business Acquisition [Line Items] | |
Consideration | $ 531,750,000 |
LMA and Abacus | Customer Relationships - Agents | |
Business Acquisition [Line Items] | |
Useful Life | 5 years |
LMA and Abacus | Customer Relationships - Financial Relationships | |
Business Acquisition [Line Items] | |
Useful Life | 8 years |
LMA | |
Business Acquisition [Line Items] | |
Consideration | $ 366,388,668 |
Enterprise value | 366,400,000 |
LMA | Minimum | Discounted cash flow method | |
Business Acquisition [Line Items] | |
Enterprise value | 380,000,000 |
LMA | Minimum | Market approach | |
Business Acquisition [Line Items] | |
Enterprise value | 400,000,000 |
LMA | Maximum | Discounted cash flow method | |
Business Acquisition [Line Items] | |
Enterprise value | 460,000,000 |
LMA | Maximum | Market approach | |
Business Acquisition [Line Items] | |
Enterprise value | $ 440,000,000 |
LMA | Discount rate | |
Business Acquisition [Line Items] | |
Measurement input | 0.145 |
Abacus Settlements | |
Business Acquisition [Line Items] | |
Consideration | $ 165,361,332 |
Enterprise value | 165,400,000 |
Abacus Settlements | Minimum | Discounted cash flow method | |
Business Acquisition [Line Items] | |
Enterprise value | 180,000,000 |
Abacus Settlements | Minimum | Market approach | |
Business Acquisition [Line Items] | |
Enterprise value | 180,000,000 |
Abacus Settlements | Maximum | Discounted cash flow method | |
Business Acquisition [Line Items] | |
Enterprise value | 195,000,000 |
Abacus Settlements | Maximum | Market approach | |
Business Acquisition [Line Items] | |
Enterprise value | $ 190,000,000 |
Abacus Settlements | Discount rate | |
Business Acquisition [Line Items] | |
Measurement input | 0.165 |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase Price Allocation (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Intangibles | $ 32,900,000 | ||
Goodwill | 140,287,000 | $ 0 | |
LMA and Abacus | |||
Business Acquisition [Line Items] | |||
Intangibles | 32,900,000 | $ 32,900,000 | |
Goodwill | $ 140,287,000 | 140,287,000 | |
Current Assets | 1,280,100 | ||
Non-Current Assets | 901,337 | ||
Deferred Tax Liabilities | (8,310,966) | ||
Accrued Expenses | (524,400) | ||
Other Liabilities | (1,171,739) | ||
Total Fair Value | $ 165,361,332 |
BUSINESS COMBINATION - Value Co
BUSINESS COMBINATION - Value Conveyed (Details) | Jun. 30, 2023 USD ($) |
Abacus Settlements | |
Business Acquisition [Line Items] | |
Consideration | $ 165,361,332 |
LMA | |
Business Acquisition [Line Items] | |
Consideration | 366,388,668 |
LMA and Abacus | |
Business Acquisition [Line Items] | |
Consideration | $ 531,750,000 |
BUSINESS COMBINATION - Intangib
BUSINESS COMBINATION - Intangible Assets Acquired (Details) - USD ($) | Jun. 30, 2023 | Sep. 30, 2023 |
Business Acquisition [Line Items] | ||
Intangibles | $ 32,900,000 | |
Trade Name | ||
Business Acquisition [Line Items] | ||
Intangibles | 900,000 | |
State Insurance Licenses | ||
Business Acquisition [Line Items] | ||
Intangibles | 2,700,000 | |
Customer Relationships - Agents | ||
Business Acquisition [Line Items] | ||
Intangibles | 12,600,000 | |
Customer Relationships - Financial Relationships | ||
Business Acquisition [Line Items] | ||
Intangibles | 11,000,000 | |
Internally Developed and Used Technology—APA | ||
Business Acquisition [Line Items] | ||
Intangibles | 1,600,000 | |
Internally Developed and Used Technology—Market Place | ||
Business Acquisition [Line Items] | ||
Intangibles | 100,000 | |
Non-Compete Agreements | ||
Business Acquisition [Line Items] | ||
Intangibles | 4,000,000 | |
LMA and Abacus | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 32,900,000 | $ 32,900,000 |
LMA and Abacus | Trade Name | ||
Business Acquisition [Line Items] | ||
Intangibles | 900,000 | |
LMA and Abacus | State Insurance Licenses | ||
Business Acquisition [Line Items] | ||
Intangibles | 2,700,000 | |
LMA and Abacus | Customer Relationships - Agents | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 12,600,000 | |
Useful Life | 5 years | |
LMA and Abacus | Customer Relationships - Financial Relationships | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 11,000,000 | |
Useful Life | 8 years | |
LMA and Abacus | Internally Developed and Used Technology—APA | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 1,600,000 | |
Useful Life | 2 years | |
LMA and Abacus | Internally Developed and Used Technology—Market Place | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 100,000 | |
Useful Life | 3 years | |
LMA and Abacus | Non-Compete Agreements | ||
Business Acquisition [Line Items] | ||
Intangibles | $ 4,000,000 | |
Useful Life | 2 years |
BUSINESS COMBINATION - Pro Form
BUSINESS COMBINATION - Pro Forma Financial Information (Details) - LMA and Abacus - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Proforma revenue | $ 21,120,930 | $ 17,538,734 | $ 55,890,580 | $ 48,830,191 |
Proforma net income | $ 1,050,972 | $ 10,232,457 | $ 14,424,416 | $ 22,427,585 |
LIFE INSURANCE SETTLEMENT POL_3
LIFE INSURANCE SETTLEMENT POLICIES - Narrative (Details) | Sep. 30, 2023 USD ($) insurance_contract | Dec. 31, 2022 USD ($) insurance_contract | Dec. 31, 2021 USD ($) |
Investments, All Other Investments [Abstract] | |||
Number of life settlement policies | insurance_contract | 240 | 53 | |
Number of life settlement policies accounted for under fair value method | insurance_contract | 228 | 35 | |
Number of life settlement policies accounted for under investment method | insurance_contract | 12 | 18 | |
Face value of policies held at fair value | $ 303,605,030 | $ 40,092,154 | |
Life settlement policies, at fair value | 83,585,374 | 13,809,352 | $ 0 |
Face value of policies accounted for using investment method | 37,300,000 | 42,330,000 | |
Life settlement policies, at cost | $ 4,116,499 | $ 8,716,111 | $ 0 |
LIFE INSURANCE SETTLEMENT POL_4
LIFE INSURANCE SETTLEMENT POLICIES - Fair Value (Details) | Sep. 30, 2023 USD ($) insurance_contract | Dec. 31, 2022 USD ($) insurance_contract | Dec. 31, 2021 USD ($) |
Policies | |||
0-1 | insurance_contract | 0 | 0 | |
1-2 | insurance_contract | 8 | 1 | |
2-3 | insurance_contract | 13 | 11 | |
3-4 | insurance_contract | 36 | 1 | |
4-5 | insurance_contract | 26 | 1 | |
Thereafter | insurance_contract | 145 | 21 | |
Policies | insurance_contract | 228 | 35 | |
Face Value | |||
0-1 | $ 0 | $ 0 | |
1-2 | 10,639,000 | 200,000 | |
2-3 | 26,725,000 | 3,085,549 | |
3-4 | 69,378,938 | 2,200,000 | |
4-5 | 22,391,998 | 1,000,000 | |
Thereafter | 174,470,094 | 33,606,605 | |
Face Value | 303,605,030 | 40,092,154 | |
Fair Value | |||
0-1 | 0 | 0 | |
1-2 | 8,018,927 | 160,000 | |
2-3 | 8,912,395 | 2,274,406 | |
3-4 | 28,670,576 | 1,406,451 | |
4-5 | 8,115,654 | 526,416 | |
Thereafter | 29,867,822 | 9,442,079 | |
Fair Value | $ 83,585,374 | $ 13,809,352 | $ 0 |
LIFE INSURANCE SETTLEMENT POL_5
LIFE INSURANCE SETTLEMENT POLICIES - Investment Method (Details) | Sep. 30, 2023 USD ($) insurance_contract | Dec. 31, 2022 USD ($) insurance_contract | Dec. 31, 2021 USD ($) |
Number of Life Insurance Policies | |||
0-1 | insurance_contract | 0 | 1 | |
1-2 | insurance_contract | 1 | 1 | |
2-3 | insurance_contract | 2 | 2 | |
3-4 | insurance_contract | 1 | 1 | |
4-5 | insurance_contract | 2 | 2 | |
Thereafter | insurance_contract | 6 | 11 | |
Number of Life Insurance Policies | insurance_contract | 12 | 18 | |
Face Value | |||
0-1 | $ 0 | $ 3,000,000 | |
1-2 | 500,000 | 500,000 | |
2-3 | 1,500,000 | 2,000,000 | |
3-4 | 8,000,000 | 500,000 | |
4-5 | 500,000 | 3,850,000 | |
Thereafter | 26,800,000 | 32,480,000 | |
Face Value | 37,300,000 | 42,330,000 | |
Carrying Value | |||
0-1 | 0 | 1,220,000 | |
1-2 | 329,714 | 327,683 | |
2-3 | 437,775 | 1,039,088 | |
3-4 | 82,869 | 260,000 | |
4-5 | 320,110 | 845,000 | |
Thereafter | 2,946,031 | 5,024,340 | |
Carrying Value | $ 4,116,499 | $ 8,716,111 | $ 0 |
LIFE INSURANCE SETTLEMENT POL_6
LIFE INSURANCE SETTLEMENT POLICIES - Estimated Premiums (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, All Other Investments [Abstract] | ||
2023 remaining | $ 59,184 | $ 799,201 |
2024 | 411,445 | 896,961 |
2025 | 403,224 | 895,559 |
2026 | 97,789 | 981,749 |
2027 | 71,775 | 1,096,323 |
Thereafter | 654,558 | 4,197,118 |
Total | $ 1,697,975 | $ 8,866,912 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Net Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Total Revenue | $ 21,120,930 | $ 11,507,748 | $ 42,705,904 | $ 29,784,048 | $ 44,713,553 | $ 1,199,986 |
Total gross profit | 17,755,973 | 9,752,854 | 37,877,997 | 25,943,079 | 38,468,422 | 464,093 |
Sales and marketing | (1,704,154) | (14,905) | (3,116,999) | (1,664,403) | (2,596,140) | 0 |
General and administrative | (9,838,951) | (59,816) | (11,113,382) | (706,523) | (1,066,403) | (101,406) |
Other operating expenses | (493,849) | |||||
Depreciation | (12,770) | (1,070) | (14,911) | (3,211) | (4,282) | (2,447) |
Depreciation and amortization expense | (1,694,853) | (1,071) | (1,696,994) | (3,211) | ||
Other (expense) income | 20,086 | 42,289 | (1,565) | (199,958) | (347,013) | 0 |
Loss on change in fair value of warrant liability | (943,400) | 0 | (943,400) | 0 | ||
Interest expense | (2,679,237) | 0 | (3,620,695) | 0 | (42,798) | |
Interest income | 63,826 | 0 | 71,283 | 0 | 1,474 | |
Gain (Loss) on change in fair value of debt | 2,088,797 | 1,235,032 | (309,865) | 859,519 | (90,719) | 0 |
Unrealized (loss) gain on investments | (306,800) | (246,846) | 491,356 | (1,301,821) | (1,045,623) | 0 |
Provision for income taxes | (1,710,315) | (352,081) | (2,238,419) | (648,887) | (889,943) | 0 |
Less: Net gain (loss) attributable to non-controlling interests | (147,611) | (363,452) | 339,692 | (770,093) | (704,699) | 148,155 |
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS | 903,361 | 9,992,004 | 15,739,009 | 21,507,702 | 31,682,275 | 14,546 |
Stock-based compensation | 4,583,632 | 4,583,632 | ||||
Portfolio servicing | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 1,470,973 | 1,079,986 | ||||
Total gross profit | (626,045) | (106,817) | (792,173) | 561,935 | 300,235 | 406,093 |
Active management | ||||||
Segment Reporting Information [Line Items] | ||||||
Active management | 43,242,581 | 120,000 | ||||
Total gross profit | 13,856,637 | 9,859,671 | 34,144,789 | 25,381,144 | $ 38,168,187 | $ 58,000 |
Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total gross profit | $ 4,525,381 | $ 0 | $ 4,525,381 | $ 0 |
SEGMENT REPORTING - Revenue by
SEGMENT REPORTING - Revenue by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 21,120,930 | $ 11,507,748 | $ 42,705,904 | $ 29,784,048 | $ 44,713,553 | $ 1,199,986 |
Portfolio servicing | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 1,470,973 | 1,079,986 | ||||
Active management | ||||||
Segment Reporting Information [Line Items] | ||||||
Active management | $ 43,242,581 | $ 120,000 | ||||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 29,365,202 | 11,507,748 | 50,950,176 | 29,784,048 | ||
Operating Segments | Portfolio servicing | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 224,569 | 382,245 | 814,626 | 1,372,573 | ||
Operating Segments | Active management | ||||||
Segment Reporting Information [Line Items] | ||||||
Active management | 18,926,144 | 11,125,503 | 39,921,061 | 28,411,475 | ||
Operating Segments | Originations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 10,214,489 | 0 | 10,214,489 | 0 | ||
Intercompany Elimination | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ (8,244,272) | $ 0 | $ (8,244,272) | $ 0 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) - segment | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 1 | 2 | |
Number of reportable segments | 3 | 1 | 2 |
LMA | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 2 | ||
Abacus Settlements, LLC | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 1 |
PROPERTY AND EQUIPMENT-NET (Det
PROPERTY AND EQUIPMENT-NET (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | $ 276,792 | $ 276,792 | $ 25,346 | $ 25,346 | ||
Less: accumulated depreciation | (14,911) | (14,911) | (6,729) | (2,447) | ||
Property and equipment—net | 261,882 | 261,882 | 18,617 | 22,899 | ||
Depreciation expense | 12,770 | $ 1,070 | 14,911 | $ 3,211 | 4,282 | 2,447 |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | 163,340 | 99,241 | ||||
Less: accumulated depreciation | (91,122) | (65,938) | ||||
Property and equipment—net | 72,218 | 33,303 | ||||
Depreciation expense | 25,184 | 18,651 | ||||
Depreciation expense included in cost of sales | 13,019 | 8,512 | ||||
Computer equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | 240,922 | 240,922 | 0 | |||
Computer equipment | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | 91,993 | 45,172 | ||||
Furniture and fixtures | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | 28,144 | 28,144 | 19,444 | 19,444 | ||
Furniture and fixtures | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | 68,778 | 54,069 | ||||
Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | $ 7,726 | $ 7,726 | 5,902 | 5,902 | ||
Leasehold improvements | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment—gross | $ 2,569 | $ 0 |
INTANGIBLE ASSETS—NET (De
INTANGIBLE ASSETS—NET (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Software | $ 29,300,000 | $ 29,300,000 | ||||
Less: accumulated amortization | 1,682,083 | 1,682,083 | ||||
Intangible assets—net | 27,617,917 | 27,617,917 | ||||
Amortization expense | $ 1,682,083 | $ 0 | $ 1,682,083 | $ 0 | ||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Less: accumulated amortization | $ 92,731 | $ 12,593 | ||||
Intangible assets—net | 148,933 | 214,071 | ||||
Amortization expense | 80,138 | 12,593 | ||||
Computer Software, Intangible Asset | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Software | $ 241,664 | $ 226,664 |
ACCRUED PAYROLL AND OTHER EXP_3
ACCRUED PAYROLL AND OTHER EXPENSES - Schedule of Company's Accrued Payroll and Other Expenses (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Total accrued payroll and other expenses | $ 636,788 | $ 0 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |||
Accrued payroll | 224,168 | $ 188,529 | |
Accrued credit card fees | 235,680 | 172,189 | |
Other expenses | 82,018 | 150,128 | |
Total accrued payroll and other expenses | $ 541,866 | $ 510,846 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||||||
Other income (expense) | $ 20,086 | $ 42,289 | $ (1,565) | $ (199,958) | $ (347,013) | $ 0 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |||||||
Other Commitments [Line Items] | |||||||
Loss contingency, damages sought, value | $ 4,000,000 | ||||||
Loss contingency, expected trial commencement | 2023-04 | ||||||
Amount of loss contingency liability. | $ 0 | ||||||
Loss contingency, estimate of possible loss | 5,000,000 | ||||||
Loss contingency, estimate of possible loss,deductible per occurrence | 50,000 | ||||||
Letter of Credit | State Penal Bonds | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |||||||
Other Commitments [Line Items] | |||||||
Debt instrument term | 1 year | ||||||
Maximum borrowing capacity | $ 1,012,500 | ||||||
Letter of credit outstanding | 0 | ||||||
Financing fees incurred | 23,450 | ||||||
Prime Rate | Letter of Credit | State Penal Bonds | ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | |||||||
Other Commitments [Line Items] | |||||||
Variable interest rate | 6.50% | ||||||
Expense Support Agreement | Variable Interest Entity, Not Primary Beneficiary | |||||||
Other Commitments [Line Items] | |||||||
Other income (expense) | $ 0 | $ 29,721 | $ 347,013 | 0 | |||
Funds received for operation | $ 120,000 |
REVENUE - Schedule of Contract
REVENUE - Schedule of Contract with Customer, Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract liabilities—end of year | $ 0 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Contract liabilities—beginning of year | 1,678,791 | $ 1,068,250 |
Additions to Contract Liabilities | 322,150 | 1,678,791 |
Recognition of revenue deferred in the prior year | (1,678,791) | (1,068,250) |
Contract liabilities—end of year | $ 322,150 | $ 1,678,791 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||
Revenue performance obligations to be satisfied | $ 322,150 | $ 1,678,791 |
INCOME TAXES - Schedule of the
INCOME TAXES - Schedule of the Components of Expense for Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | $ 0 | $ 0 | ||||
Deferred | 152,567 | 0 | ||||
Expense for income taxes | $ 1,710,315 | $ 352,081 | $ 2,238,419 | $ 648,887 | 889,943 | 0 |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Current | 2,018 | 1,200 | ||||
Deferred | 0 | 0 | ||||
Expense for income taxes | $ 2,018 | $ 1,200 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of the Statutory Federal Income Tax Rate (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective income tax rate | 61.90% | 3.30% | 12.70% | 2.80% | ||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Tax at federal statutory rate | 21% | 21% | ||||
State taxes, net of federal benefit | (4.00%) | 0.12% | ||||
U.S. income attributable to pass-through entity | (21.00%) | (21.00%) | ||||
Effective income tax rate | (4.00%) | 0.12% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 167,554 | $ 125,166 |
Basis Difference in Life Insurance Contracts | 109,903 | |
Other | 0 | 0 |
Gross deferred tax assets | 277,457 | 125,166 |
Less: valuation allowance | 0 | (125,166) |
Total deferred tax assets | 277,457 | 0 |
Deferred tax liabilities: | ||
Unrealized Gain | (1,641,277) | |
Other | 0 | $ 0 |
Gross deferred tax liabilities | (1,641,277) | |
Deferred tax liabilities—net of allowance | $ (1,363,820) |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Income tax benefit computed at federal statutory rate | $ 6,988,153 | $ (28,058) | ||||
Effect of pass through entities | (6,147,068) | (75,650) | ||||
State taxes, net of federal benefit | 174,024 | (21,458) | ||||
Valuation allowance | (125,166) | 125,166 | ||||
Income tax rate | $ 1,710,315 | $ 352,081 | $ 2,238,419 | $ 648,887 | $ 889,943 | $ 0 |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision For Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision: | ||||||
Federal | $ 0 | $ 0 | ||||
State | 0 | 0 | ||||
Foreign | 0 | 0 | ||||
Total current tax | 0 | 0 | ||||
Deferred provision (benefit): | ||||||
Federal | 737,376 | 0 | ||||
State | 152,567 | 0 | ||||
Foreign | 0 | 0 | ||||
Total deferred tax | $ 1,743,079 | $ 648,887 | 889,943 | 0 | ||
Income tax rate | $ 1,710,315 | $ 352,081 | $ 2,238,419 | $ 648,887 | $ 889,943 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expense | $ 1,710,315 | $ 352,081 | $ 2,238,419 | $ 648,887 | $ 889,943 | $ 0 | ||
Effective tax rate percentage | 61.90% | 3.30% | 12.70% | 2.80% | ||||
Percentage of federal net operating losses may be used to offset taxable income in a given year | 80% | |||||||
Domestic Tax Authority | ||||||||
Net operating losses carryforwards | $ 661,092 | |||||||
State and Local Jurisdiction | ||||||||
Net operating losses carryforwards | 661,092 | |||||||
Subsidiaries | ||||||||
Income tax expense | $ 0 | $ 582 | $ 2,289 | $ 1,907 | $ 889,943 | $ 0 | ||
Effective tax rate percentage | 0.24% | 1.26% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Goodwill by Reportable Segments (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | $ 0 |
Goodwill at end of period | 140,287,000 |
Portfolio servicing | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | 0 |
Additions | 0 |
Goodwill at end of period | 0 |
Active management | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | 0 |
Additions | 0 |
Goodwill at end of period | 0 |
Originations | |
Goodwill [Roll Forward] | |
Goodwill at beginning of period | 0 |
Additions | 140,287,000 |
Goodwill at end of period | 140,287,000 |
LMA and Abacus | |
Goodwill [Roll Forward] | |
Goodwill at end of period | $ 140,287,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets Acquired (Details) | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 32,900,000 |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | 900,000 |
Licensing Agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | 2,700,000 |
Customer Relationships—Agents | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 12,600,000 |
Useful Life | 5 years |
Customer Relationships—Financial Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 11,000,000 |
Useful Life | 8 years |
Internally Developed and Used Technology—APA | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 1,600,000 |
Useful Life | 2 years |
Internally Developed and Used Technology—Market Place | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 100,000 |
Useful Life | 3 years |
Non-Compete Agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 4,000,000 |
Useful Life | 2 years |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets and Accumulated Amortization (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Value | $ 29,300,000 | $ 29,300,000 | |||
Accumulated Amortization | 1,682,083 | 1,682,083 | |||
Net Book Value | 27,617,917 | 27,617,917 | |||
Gross Value | 32,900,000 | 32,900,000 | |||
Intangible assets, net | 31,217,917 | 31,217,917 | $ 0 | ||
Amortization expense | 1,682,083 | $ 0 | 1,682,083 | $ 0 | |
Trade Names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets | 900,000 | 900,000 | |||
Licensing Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets | 2,700,000 | 2,700,000 | |||
Customer Relationships - Agents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Value | 12,600,000 | 12,600,000 | |||
Accumulated Amortization | 630,000 | 630,000 | |||
Net Book Value | 11,970,000 | 11,970,000 | |||
Customer Relationships—Financial Relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Value | 11,000,000 | 11,000,000 | |||
Accumulated Amortization | 343,750 | 343,750 | |||
Net Book Value | 10,656,250 | 10,656,250 | |||
Internally Developed and Used Technology—APA | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Value | 1,600,000 | 1,600,000 | |||
Accumulated Amortization | 200,000 | 200,000 | |||
Net Book Value | 1,400,000 | 1,400,000 | |||
Internally Developed and Used Technology—Market Place | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Value | 100,000 | 100,000 | |||
Accumulated Amortization | 8,333 | 8,333 | |||
Net Book Value | 91,667 | 91,667 | |||
Non-Compete Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Value | 4,000,000 | 4,000,000 | |||
Accumulated Amortization | 500,000 | 500,000 | |||
Net Book Value | $ 3,500,000 | $ 3,500,000 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Annual Amortization (Details) | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 1,682,083 |
2024 | 6,728,333 |
2025 | 5,328,333 |
2026 | 3,911,667 |
2027 | 3,895,000 |
Thereafter | 6,072,501 |
Net Book Value | $ 27,617,917 |
AVAILABLE-FOR-SALE SECURITIES_2
AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jan. 07, 2022 | Oct. 31, 2022 | Jan. 31, 2022 | Nov. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||||||
Purchase of convertible promissory note | $ 250,000 | $ 500,000 | $ 250,000 | $ 250,000 | $ 350,000 | $ 250,000 | $ 750,000 | $ 250,000 |
Interest rate per annum | 8% | 6% | ||||||
Equity financing threshold | $ 5,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
OTHER INVESTMENTS AND OTHER N_2
OTHER INVESTMENTS AND OTHER NONCURRENT ASSETS (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 21, 2020 USD ($) shares | Jul. 22, 2020 USD ($) shares | Dec. 31, 2022 USD ($) Payment shares | Sep. 30, 2023 USD ($) entity | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) entity | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Payment | Dec. 31, 2021 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Conversion of Stock [Line Items] | |||||||||||
Number of entities, convertible preferred stock ownership | entity | 2 | 2 | |||||||||
Equity securities without readily determinable fair value, amount | $ 1,300,000 | $ 1,650,000 | $ 1,650,000 | $ 1,300,000 | $ 1,250,000 | ||||||
Increase in series seed preferred units | $ 800,000 | 800,000 | |||||||||
Impairment of investments | 0 | $ 0 | 0 | $ 0 | 0 | $ 0 | |||||
Series Seed Preferred Units | |||||||||||
Conversion of Stock [Line Items] | |||||||||||
Units purchased (in shares) | shares | 224,551 | 119,760 | |||||||||
Equity securities without readily determinable fair value, amount | $ 750,000 | $ 400,000 | $ 1,150,000 | $ 1,150,000 | 400,000 | $ 1,100,000 | $ 950,000 | ||||
Increase in series seed preferred units | $ 14,970 | $ 14,970 | |||||||||
Number of monthly payments | Payment | 8 | 8 | |||||||||
Monthly payment amount | $ 50,000 | ||||||||||
Equity ownership percentage | 8.10% | 8.60% | 8.60% | 8.10% | |||||||
Series B-1 Preferred Stock | |||||||||||
Conversion of Stock [Line Items] | |||||||||||
Units purchased (in shares) | shares | 207,476 | ||||||||||
Equity securities without readily determinable fair value, amount | $ 500,000 | ||||||||||
Equity ownership percentage | 1% |
CONSOLIDATION OF VARIABLE INT_2
CONSOLIDATION OF VARIABLE INTEREST ENTITIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | |||
Assets | $ 304,301,937 | $ 59,094,847 | $ 1,840,218 |
Liabilities | 138,212,190 | 30,945,150 | 1,073,325 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 62,831,856 | 30,073,972 | 400 |
Liabilities | 56,775,736 | 27,116,762 | 0 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 824,375 | 987,964 | 596,567 |
Liabilities | $ 191,632 | $ 358,586 | $ 2,218 |
FAIR VALUE MEASUREMENTS - Recur
FAIR VALUE MEASUREMENTS - Recurring Fair Value Measurements (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | |||
Life settlement policies | $ 83,585,374 | $ 13,809,352 | $ 0 |
Available-for-sale securities, at fair value | 1,000,000 | 1,000,000 | 250,000 |
Other investments, at cost | 1,650,000 | 1,300,000 | 1,250,000 |
Liabilities: | |||
Private placement warrants | 3,382,000 | 0 | |
Fair Value, Recurring | |||
Assets: | |||
Life settlement policies | 83,585,374 | 13,809,352 | 0 |
Available-for-sale securities, at fair value | 1,000,000 | 1,000,000 | 250,000 |
Other investments, at cost | 1,650,000 | 1,300,000 | 1,250,000 |
S&P 500 options | 1,494,744 | 890,829 | 0 |
Other assets | 998,469 | ||
Total assets held at fair value | 88,728,587 | 17,000,181 | 1,500,000 |
Other non-current assets | 1,494,744 | 890,829 | 0 |
Liabilities: | |||
Long-term debt | 59,544,907 | 28,249,653 | 0 |
Private placement warrants | 3,382,000 | ||
Total liabilities held at fair value: | 62,926,907 | 28,249,653 | |
Fair Value, Recurring | Level 1 | |||
Assets: | |||
Life settlement policies | 0 | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 | 0 |
Other investments, at cost | 0 | 0 | 0 |
S&P 500 options | 1,494,744 | 890,829 | 0 |
Other assets | 998,469 | ||
Total assets held at fair value | 2,493,213 | 890,829 | 0 |
Other non-current assets | 1,494,744 | 890,829 | 0 |
Liabilities: | |||
Long-term debt | 0 | 0 | 0 |
Private placement warrants | 0 | ||
Total liabilities held at fair value: | 0 | 0 | |
Fair Value, Recurring | Level 2 | |||
Assets: | |||
Life settlement policies | 0 | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 | 0 |
Other investments, at cost | 0 | 0 | 0 |
S&P 500 options | 0 | 0 | 0 |
Other assets | 0 | ||
Total assets held at fair value | 0 | 0 | 0 |
Other non-current assets | 0 | 0 | 0 |
Liabilities: | |||
Long-term debt | 0 | 0 | 0 |
Private placement warrants | 0 | ||
Total liabilities held at fair value: | 0 | 0 | |
Fair Value, Recurring | Level 3 | |||
Assets: | |||
Life settlement policies | 83,585,374 | 13,809,352 | 0 |
Available-for-sale securities, at fair value | 1,000,000 | 1,000,000 | 250,000 |
Other investments, at cost | 1,650,000 | 1,300,000 | 1,250,000 |
S&P 500 options | 0 | 0 | 0 |
Other assets | 0 | ||
Total assets held at fair value | 86,235,374 | 16,109,352 | 1,500,000 |
Other non-current assets | 0 | 0 | 0 |
Liabilities: | |||
Long-term debt | 59,544,907 | 28,249,653 | $ 0 |
Private placement warrants | 3,382,000 | ||
Total liabilities held at fair value: | $ 62,926,907 | $ 28,249,653 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jan. 07, 2022 | Oct. 31, 2022 | Jan. 31, 2022 | Nov. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 25, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Total change in fair value of debt | $ (760,457) | $ (1,945,461) | $ 1,778,987 | ||||||||
Gain (loss) on change in fair value of debt, included within other comprehensive income | (777,131) | 952,661 | 1,052,836 | ||||||||
Gain (loss) on change in fair value of debt, included within equity of noncontrolling interests | 238,902 | 295,348 | 342,994 | ||||||||
(Gain) loss on change in fair value of debt | (2,088,797) | $ (1,235,032) | 309,865 | $ (859,519) | 90,719 | $ 0 | |||||
Purchase of convertible promissory note | $ 250,000 | $ 500,000 | $ 250,000 | $ 250,000 | 350,000 | $ 250,000 | 750,000 | 250,000 | |||
Available-for-sale securities, at fair value | 1,000,000 | 1,000,000 | 1,000,000 | 250,000 | |||||||
Equity securities without readily determinable fair value, amount | $ 1,650,000 | $ 1,650,000 | 1,300,000 | $ 1,250,000 | |||||||
LongTerm Debt LMATT 1.2026 | Notes Payable, Other Payables | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Face amount | 400,000 | ||||||||||
Debt Instrument, Fair Value Disclosure | $ 400,000 | ||||||||||
Private Placement Warrant | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Warrants outstanding (in shares) | 8,900,000 | 8,900,000 | 900,000 | ||||||||
Price per warrant (in dollars per share) | $ 1 | $ 1 | |||||||||
Warrants outstanding | $ 8,900,000 | $ 8,900,000 | |||||||||
Number of securities called by each warrant (in shares) | 1 | 1 | |||||||||
Exercise price of warrants (in dollars per share) | $ 11.5 | $ 11.5 | |||||||||
Warrants term | 30 days | 30 days | |||||||||
Discount rate | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Life settlement policies, measurement input | 22% | 22% | 12% | ||||||||
Discount rate | Discounted cash flow method | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Life settlement policies, measurement input | 12% | ||||||||||
Discount rate | Valuation Technique, Discounted Cash Flow, Face Value Under $2 Million | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Life settlement policies, measurement input | 18% | 18% | |||||||||
Discount rate | Valuation Technique, Discounted Cash Flow, Face Value Of $2 Million And Over | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Life settlement policies, measurement input | 24% | 24% |
FAIR VALUE MEASUREMENTS - Disco
FAIR VALUE MEASUREMENTS - Discount Rate Sensitivity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||
Life settlement policies, fair value, impact of +2% discount rate adjustment | $ 78,288,612 | $ 12,376,891 | |
Life settlement policies, change in fair value, impact of +2% discount rate adjustment | (5,296,762) | (1,432,461) | |
Life settlement policies, at fair value | 83,585,374 | 13,809,352 | $ 0 |
Life settlement policies, fair value, impact of -2% discount rate adjustment | 89,102,871 | 15,571,704 | |
Life settlement policies, change in fair value, impact of -2% discount rate adjustment | $ 5,517,497 | $ 1,762,352 |
FAIR VALUE MEASUREMENTS - Credi
FAIR VALUE MEASUREMENTS - Credit Exposure to Insurance Companies (Details) - Life Insurance Carrier Concentration Risk | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Life Insurance Contract, Face Value | American General Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 11% | 17% |
Life Insurance Contract, Face Value | Transamerica | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 14% | |
Life Insurance Contract, Face Value | John Hancock Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 31% | |
Life Insurance Contract, Face Value | ReliaStar Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 5% | |
Life Insurance Contract, Face Value | Principal Life | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 10% | |
Life Insurance Contract, Face Value | Securian Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 12% | |
Life Insurance Contract, Fair Value | American General Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 13% | 15% |
Life Insurance Contract, Fair Value | Transamerica | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 16% | |
Life Insurance Contract, Fair Value | John Hancock Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 30% | |
Life Insurance Contract, Fair Value | ReliaStar Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 10% | |
Life Insurance Contract, Fair Value | Principal Life | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 10% | |
Life Insurance Contract, Fair Value | Securian Life Insurance Company | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 4% |
FAIR VALUE MEASUREMENTS - Life
FAIR VALUE MEASUREMENTS - Life Insurance Policies (Details) - Life Insurance Policies - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 13,809,352 | $ 0 |
Policies purchased | 116,053,728 | 8,161,975 |
Realized gain on matured/sold policies | 9,688,422 | 105,000 |
Premiums paid | 2,500,623 | 433,626 |
Unrealized gain on held policies | 14,259,665 | 5,742,377 |
Change in estimated fair value | 21,447,464 | 5,413,751 |
Matured/sold policies | (70,225,793) | (200,000) |
Fair value at end of period | $ 83,585,374 | $ 13,809,352 |
FAIR VALUE MEASUREMENTS - Issue
FAIR VALUE MEASUREMENTS - Issued Notes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Fair value at beginning of period | $ 28,249,653 | $ 0 | $ 0 | |||
Debt issued to third parties | 88,618,714 | 30,028,640 | ||||
Unrealized loss on change in fair value (risk-free) | $ (2,088,797) | $ (1,235,032) | 309,865 | $ (859,519) | 90,719 | $ 0 |
Unrealized (gain) on change in fair value (credit-adjusted) | 1,635,596 | (1,869,706) | ||||
Change in estimated fair value | 760,457 | 1,945,461 | (1,778,987) | |||
Fair value at end of period | $ 118,813,828 | $ 118,813,828 | $ 28,249,653 | $ 0 |
FAIR VALUE MEASUREMENTS - Assum
FAIR VALUE MEASUREMENTS - Assumptions (Details) - Private Placement Warrant | Sep. 30, 2023 yr |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and rights outstanding, measurement input | 0.0409 |
Term to expiration | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and rights outstanding, measurement input | 5 |
Exercise price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and rights outstanding, measurement input | 11.5 |
Common Stock Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and rights outstanding, measurement input | 10.03 |
Dividend Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and rights outstanding, measurement input | 0 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Market-indexed notes | LMATT Series 2024, Inc. | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 9,866,900 | $ 9,886,900 | |
Cost | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 30,028,640 | $ 0 | |
Total long-term debt | 118,294,506 | 30,028,640 | |
Cost | Market-indexed notes | LMATT Series 2024, Inc. | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 9,866,900 | 9,866,900 | 0 |
Cost | Market-indexed notes | LMATT Series 2.2024, Inc. | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 2,333,391 | 2,333,391 | 0 |
Cost | Market-indexed notes | LMATT Growth & Income Series 1.2026, Inc | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 400,000 | 400,000 | 0 |
Cost | Secured borrowing | LMATT Income Series, LP | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 21,889,444 | 17,428,349 | 0 |
Cost | Secured borrowing | LMATT Income Series II, LP | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 24,535,851 | 0 | |
Cost | Unsecured borrowing | |||
Debt Instrument [Line Items] | |||
Deferred Financing Cost | (2,266,858) | 0 | |
Cost | Unsecured borrowing | Owl Rock Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 25,000,000 | 0 | |
Cost | Unsecured borrowing | SPV Purchase and Sale Note | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 25,750,000 | 0 | |
Cost | Unsecured borrowing | Sponsor PIK Note | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 10,785,778 | 0 | |
Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 28,249,653 | 0 | |
Total long-term debt | 118,813,827 | 28,249,653 | |
Fair value | Market-indexed notes | LMATT Series 2024, Inc. | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 9,311,800 | 8,067,291 | 0 |
Fair value | Market-indexed notes | LMATT Series 2.2024, Inc. | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 3,027,681 | 2,354,013 | 0 |
Fair value | Market-indexed notes | LMATT Growth & Income Series 1.2026, Inc | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 427,284 | 400,000 | 0 |
Fair value | Secured borrowing | LMATT Income Series, LP | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 22,242,291 | 17,428,349 | $ 0 |
Fair value | Secured borrowing | LMATT Income Series II, LP | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 24,535,851 | 0 | |
Fair value | Unsecured borrowing | |||
Debt Instrument [Line Items] | |||
Deferred Financing Cost | (2,266,858) | 0 | |
Fair value | Unsecured borrowing | Owl Rock Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 25,000,000 | 0 | |
Fair value | Unsecured borrowing | SPV Purchase and Sale Note | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 25,750,000 | 0 | |
Fair value | Unsecured borrowing | Sponsor PIK Note | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 10,785,778 | $ 0 |
LONG-TERM DEBT - Owl Rock Credi
LONG-TERM DEBT - Owl Rock Credit Facility (Details) - Owl Rock Credit Facility - Line of Credit $ in Thousands | Jul. 05, 2023 USD ($) |
Debt Instrument [Line Items] | |
Additional borrowing capacity availability period | 180 days |
Commitment fee | 0.50% |
Debt instrument term | 5 years |
Default rate | 2% |
Amortization payment percentage | 1% |
Amortization payment per quarter | 0.25% |
Mandatory prepayment percentage | 100% |
Maximum leverage ratio | 2.5 |
Liquid asset minimum coverage ratio | 1.8 |
Maximum securities related activities percentage of aggregate gross revenues | 15% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 7.25% |
Base Rate | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 6.25% |
Variable Rate Component One | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.10% |
Basis spread on variable rate, term | 1 month |
Variable Rate Component Two | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.15% |
Basis spread on variable rate, term | 3 months |
Variable Rate Component Three | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.25% |
Basis spread on variable rate, term | 6 months |
Unsecured borrowing | |
Debt Instrument [Line Items] | |
Face amount | $ 25,000 |
LONG-TERM DEBT - Sponsor PIK No
LONG-TERM DEBT - Sponsor PIK Note (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | |||
Non-cash interest expense | $ 1,064,130 | $ 0 | |
Unsecured borrowing | Sponsor PIK Note | |||
Debt Instrument [Line Items] | |||
Face amount | $ 10,471,648 | ||
Interest rate (as a percent) | 12% | ||
Non-cash interest expense | $ 314,130 |
LONG-TERM DEBT - LMATT Series 2
LONG-TERM DEBT - LMATT Series 2024, Inc. Market-Indexed Notes (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Assets | $ 304,301,937 | $ 59,094,847 | $ 1,840,218 | |
Fair value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 28,249,653 | 0 | ||
LMATT Series 2024, Inc. | Market-indexed notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 10,166,900 | |||
Market downturn protection percentage | 40% | |||
Note reduction ratio for losses below threshold | 100% | 100% | ||
Long-term debt, fair value | $ 9,866,900 | $ 9,886,900 | ||
LMATT Series 2024, Inc. | Market-indexed notes | Fair value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | 9,311,800 | 8,067,291 | $ 0 | |
LMATT Series 2024, Inc. | Market-indexed notes | Asset Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Assets | $ 10,358,537 | $ 12,200,797 |
LONG-TERM DEBT - LMATT Series_2
LONG-TERM DEBT - LMATT Series 2.2024, Inc. Market-Indexed Notes (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 16, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Assets | $ 304,301,937 | $ 59,094,847 | $ 1,840,218 | |
Fair value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 28,249,653 | $ 0 | ||
LMATT Series 2.2024, Inc. | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage | 100% | |||
LMATT Series 2.2024, Inc. | Market-indexed notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 2,333,391 | |||
Upside performance participation cap | 120% | |||
Market downturn protection percentage | 20% | |||
Note reduction ratio for losses below threshold | 100% | 100% | ||
LMATT Series 2.2024, Inc. | Market-indexed notes | Asset Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Assets | 2,983,754 | $ 3,246,756 | ||
LMATT Series 2.2024, Inc. | Market-indexed notes | Fair value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 3,027,681 | $ 2,354,013 |
LONG-TERM DEBT - LMATT Growth a
LONG-TERM DEBT - LMATT Growth and Income Series 1.2026, Inc. Market-Indexed Notes (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 16, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Assets | $ 304,301,937 | $ 59,094,847 | $ 1,840,218 | |
Fair value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | 28,249,653 | $ 0 | ||
LMATT Growth & Income Series 1.2026, Inc | ||||
Debt Instrument [Line Items] | ||||
Ownership percentage | 100% | |||
LMATT Growth & Income Series 1.2026, Inc | Market-indexed notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 400,000 | |||
Upside performance participation cap | 140% | |||
Market downturn protection percentage | 10% | |||
Note reduction ratio for losses below threshold | 100% | |||
Dividend percentage | 4% | |||
LMATT Growth & Income Series 1.2026, Inc | Market-indexed notes | Asset Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Assets | 369,253 | 752,236 | ||
LMATT Growth & Income Series 1.2026, Inc | Market-indexed notes | Fair value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 427,284 | $ 400,000 |
LONG-TERM DEBT - LMA Income Ser
LONG-TERM DEBT - LMA Income Series, LP and LMA Income Series, GP LLC Secured Borrowing (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) option | Dec. 31, 2022 USD ($) option | Dec. 31, 2021 USD ($) | |
Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 28,249,653 | $ 0 | |
LMATT Income Series, LP | Secured borrowing | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 3 years | 3 years | |
Debt Instrument extension options | option | 2 | 2 | |
Debt instrument extension term | 1 year | 1 year | |
Dividend percentage | 6.50% | 6.50% | |
Return rate in excess of minimum internal rate of return | 25% | ||
Minimum internal rate of return threshold | 6.50% | 6.50% | |
Internal rate of return cap | 9% | ||
Net internal rate of return at cap | 15% | 15% | |
Return Rate in excess of capped internal rate of return threshold | 25% | ||
LMATT Income Series, LP | Secured borrowing | Fair value | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 22,242,291 | $ 17,428,349 | $ 0 |
LMATT Income Series, LP | Secured borrowing | General Partner | |||
Debt Instrument [Line Items] | |||
Return rate in excess of minimum internal rate of return | 75% | 75% | |
Minimum internal rate of return threshold | 6.50% | 6.50% | |
LMATT Income Series, LP | Secured borrowing | Limited Partner | |||
Debt Instrument [Line Items] | |||
Internal rate of return cap | 15% | 15% | |
Return Rate in excess of capped internal rate of return threshold | 100% | 100% |
LONG-TERM DEBT - LMA Income S_2
LONG-TERM DEBT - LMA Income Series II, LP and LMA Income Series II, GP LLC Secured Borrowing (Details) - LMATT Income Series II, LP - Secured borrowing | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) option | Dec. 31, 2022 option | |
Debt Instrument [Line Items] | ||
Debt instrument term | 3 years | 3 years |
Debt Instrument extension options | option | 2 | 2 |
Debt instrument extension term | 1 year | |
Long-term debt, gross | $ 24,535,851 | |
General Partner | ||
Debt Instrument [Line Items] | ||
Dividend percentage | 100% | |
Capital Commitment Threshold One | Limited Partner | ||
Debt Instrument [Line Items] | ||
Dividend percentage | 7.50% | |
Capital Commitment Threshold One | Maximum | Limited Partner | ||
Debt Instrument [Line Items] | ||
Capital commitment threshold to determine dividend rate | $ 500,000 | |
Capital Commitment Threshold Two | Limited Partner | ||
Debt Instrument [Line Items] | ||
Dividend percentage | 7.75% | |
Capital Commitment Threshold Two | Maximum | Limited Partner | ||
Debt Instrument [Line Items] | ||
Capital commitment threshold to determine dividend rate | $ 1,000,000 | |
Capital Commitment Threshold Two | Minimum | Limited Partner | ||
Debt Instrument [Line Items] | ||
Capital commitment threshold to determine dividend rate | $ 500,000 | |
Capital Commitment Threshold Three | Limited Partner | ||
Debt Instrument [Line Items] | ||
Dividend percentage | 8% | |
Capital Commitment Threshold Three | Minimum | Limited Partner | ||
Debt Instrument [Line Items] | ||
Capital commitment threshold to determine dividend rate | $ 1,000,000 |
LONG-TERM DEBT - SPV Purchase a
LONG-TERM DEBT - SPV Purchase and Sale and SPV Investment Facility (Details) | 9 Months Ended | ||
Jul. 05, 2023 USD ($) extension | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Non-cash interest expense | $ 1,064,130 | $ 0 | |
Policy APA | |||
Debt Instrument [Line Items] | |||
Insurance policies fair value | $ 10,000,000 | ||
SPV Investment Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Face amount | $ 25,000,000 | ||
Debt instrument term | 3 years | ||
Number of extensions | extension | 2 | ||
Debt instrument extension term | 1 year | ||
Interest rate (as a percent) | 12% | ||
Non-cash interest expense | 750,000 | ||
Default rate | 2% | ||
Interest expense paid | $ 0 | $ 0 | |
SPV Investment Facility | Line of Credit | Secured borrowing | |||
Debt Instrument [Line Items] | |||
Face amount | $ 15,000,000 | ||
SPV Investment Facility | Line of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Face amount | $ 10,000,000 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 Vote $ / shares shares | Dec. 31, 2022 Vote $ / shares shares | Aug. 30, 2022 USD ($) $ / shares | Dec. 31, 2021 shares | |
Class of Warrant or Right [Line Items] | ||||
Common stock, shares authorized (in shares) | shares | 200,000,000 | 5,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares authorized (in shares) | shares | 1,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Preferred stock, shares issued (in shares) | shares | 0 | |||
Preferred stock, shares outstanding (in shares) | shares | 0 | |||
Number of votes per share | Vote | 1 | 1 | ||
Common stock, shares issued (in shares) | shares | 63,349,823 | 50,639,350 | 5,000 | |
Common stock, shares outstanding (in shares) | shares | 63,349,823 | 50,639,350 | 5,000 | |
Public Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants outstanding (in shares) | shares | 17,249,984 | |||
Number of securities called by each warrant (in shares) | shares | 1 | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 11.5 | |||
Warrants, business combination exercisable term | 30 days | |||
Warrants, proposed offering exercisable term | 12 months | |||
Warrants term | 5 years | |||
Redemption price per warrant (in dollars per share) | $ / shares | $ 0.01 | |||
Warrant redemption notice period | 30 days | |||
Common stock price threshold (in dollars per share) | $ / shares | $ 18 | |||
Trading days | 20 days | |||
Trading day period | 30 days | |||
Common stock price threshold for redemption for common stock (in dollars per share) | $ / shares | $ 10 | |||
Warrants, common stock issuance threshold price (in dollars per share) | $ / shares | $ 9.2 | |||
Warrants, common stock issuance trading day period | 20 days | |||
Warrant price adjustment percentage | 115% | |||
Redemption trigger price adjustment percentage | 100% | |||
Redemption for common stock trigger price adjustment percentage | 180% | |||
Warrants outstanding | $ | $ 4,730 | |||
Warrant outstanding fair value per share (in dollars per share) | $ / shares | $ 0.274 | |||
Public Warrants | Binomial Lattice Model | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants term | 5 years | |||
Public Warrants | Risk-free interest rate | Binomial Lattice Model | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants and rights outstanding, measurement input | 0.0409 | |||
Public Warrants | Exercise price | Binomial Lattice Model | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants and rights outstanding, measurement input | 11.5 | |||
Public Warrants | Common Stock Price | Binomial Lattice Model | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants and rights outstanding, measurement input | 10.03 | |||
LMA | ||||
Class of Warrant or Right [Line Items] | ||||
Exchange ratio | 0.8 | 0.8 |
STOCK-BASED COMPENSATION - CEO
STOCK-BASED COMPENSATION - CEO Restriction Agreement (Details) - shares | 9 Months Ended | |
Apr. 21, 2023 | Sep. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock-based awards vesting period | 3 years | |
CEO Restricted Stock | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares authorized (in shares) | 4,569,922 | |
CEO Restricted Stock | Share-Based Payment Arrangement, Tranche One | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting percentage | 50% | |
Stock-based awards vesting period | 25 months | |
CEO Restricted Stock | Share-Based Payment Arrangement, Tranche Two | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting percentage | 50% | |
Stock-based awards vesting period | 30 months |
STOCK-BASED COMPENSATION - CE_2
STOCK-BASED COMPENSATION - CEO Stock-Based Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4,583,632 | $ 4,583,632 | ||
CEO Restricted Stock | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4,583,632 | $ 0 | $ 4,583,632 | $ 0 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Activity (Details) - CEO Restricted Stock | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | 0 |
Granted (in shares) | 4,569,922 |
Forfeited (in shares) | 0 |
Settled (in shares) | 0 |
Outstanding at end of period (in shares) | 4,569,922 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 10.03 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 10.03 |
Unamortized stock-based compensation expense for unvested stock | $ | $ 41,252,686 |
Unamortized stock-based compensation expense weighted-average remaining contractual life | 2 years 3 months 18 days |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Maximum annual contributions (as a percent) | 100% | 100% | ||||
Employer match (as a percent) | 50% | 50% | ||||
Percent of employees gross pay (as a percent) | 4% | |||||
Benefit plan expense | $ 61,586 | $ 4,511 | $ 86,901 | $ 12,559 | $ 22,559 | $ 8,368 |
Deferred Profit Sharing | Abacus Settlements, LLC | ||||||
Employer match (as a percent) | 4% | |||||
Minimum Service Period required to participate in the plan | 1 year | |||||
Discretionary contribution amount | $ 0 | $ 100,000 |
MEMBERS' EQUITY (Details)
MEMBERS' EQUITY (Details) - Abacus Settlements, LLC - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Common unit, authorized | 400 | |
Common unit, voting rights | 1 | |
Common unit, issued | 400 | 400 |
Common unit, outstanding | 400 | 400 |
RELATED-PARTY TRANSACTIONS - Na
RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 05, 2023 | |
Related Party Transaction [Line Items] | |||||||||
Origination expenses for life settlement policies | $ 2,268,150 | ||||||||
Other assets | $ 998,469 | $ 998,469 | 0 | ||||||
Total cost of revenue | 3,364,957 | $ 1,754,894 | 4,827,907 | $ 3,840,969 | $ 6,245,131 | $ 735,893 | |||
Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | $ 6,884,690 | 6,031,480 | $ 13,184,676 | 19,046,144 | |||||
Total cost of revenue | $ 4,897,980 | 3,864,079 | $ 9,293,303 | 12,651,704 | |||||
Nova Funds | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage | 11% | 11% | 11% | ||||||
SPV Investment Facility | Line of Credit | |||||||||
Related Party Transaction [Line Items] | |||||||||
Face amount | $ 25,000,000 | ||||||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other current liabilities | 5,236 | 5,236 | $ 263,785 | 930,630 | |||||
Other receivables | 772,545 | 772,545 | 2,904,646 | 0 | |||||
Affiliated Entity | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | $ 3,615,738 | 1,155,000 | $ 6,838,141 | 2,066,700 | |||||
Total cost of revenue | 2,623,201 | 1,055,000 | 5,020,603 | 1,667,700 | |||||
Affiliated Entity | Nova Funds | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 168,899 | 132,220 | 711,975 | 752,379 | 818,300 | 699,884 | |||
Affiliated Entity | LMA | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 3,615,739 | 955,000 | 6,794,641 | 1,425,200 | |||||
Total cost of revenue | 2,623,201 | 875,000 | 5,012,103 | 1,201,200 | |||||
Affiliated Entity | Expense Reimbursements | Nova Funds | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accounts receivable | 174,875 | 174,875 | 196,289 | 67,491 | |||||
Owners | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other current liabilities | 1,159,712 | 717,429 | 717,429 | 1,159,712 | 0 | ||||
Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accounts receivable | 174,875 | $ 174,875 | 198,364 | 67,491 | |||||
Related Party | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 5,195,602 | 4,264,628 | 9,931,938 | 14,094,223 | |||||
Total cost of revenue | 3,392,647 | 2,930,990 | 6,558,354 | 8,453,302 | |||||
Related Party | Nova Funds | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 254,517 | ||||||||
Face value | $ 46,650,000 | $ 87,143,005 | 106,633,792 | ||||||
Origination revenue percent | 2% | 2% | |||||||
Origination revenue | $ 20,000 | ||||||||
Related Party | Nova Funds | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 1,579,864 | 8,244,271 | 3,093,797 | 8,244,271 | |||||
Face value | $ 56,688,680 | 93,605,072 | $ 96,674,080 | 376,409,910 | 376,409,910 | ||||
Origination revenue percent | 2% | 2% | |||||||
Origination revenue | $ 20,000 | ||||||||
Related Party | LMA | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other assets | $ 19,246 | 190,805 | 19,246 | $ 190,805 | |||||
Related Party | Service Fee Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction rate | 50% | 50% | |||||||
Related Party | Expense Reimbursements | Nova Funds | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | $ 0 | ||||||||
Related Party | Expense Reimbursements | Nova Funds | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | $ 75,332 | $ 235,455 | $ 140,960 | 235,455 | |||||
Related Party | SPV Investment Facility | Line of Credit | |||||||||
Related Party Transaction [Line Items] | |||||||||
Face amount | $ 25,000,000 | $ 25,000,000 | |||||||
Abacus Settlements, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other receivables | $ 122,455 | 40,000 | |||||||
Revenue | 25,203,463 | 22,592,144 | |||||||
Accounts receivable | 402,749 | 590,371 | |||||||
Other assets | 7,246 | 0 | |||||||
Total cost of revenue | 16,561,005 | 14,205,341 | |||||||
Abacus Settlements, LLC | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other current liabilities | 1,411 | 11,857 | |||||||
Other assets | 1,448 | 16,536 | |||||||
Abacus Settlements, LLC | Affiliated Entity | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 2,909,650 | 433,800 | |||||||
Total cost of revenue | 2,365,650 | 433,800 | |||||||
Abacus Settlements, LLC | Affiliated Entity | LMA | Subsidiaries | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 2,268,150 | 0 | |||||||
Abacus Settlements, LLC | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Total cost of revenue | 11,022,535 | 11,527,312 | |||||||
Abacus Settlements, LLC | Related Party | Nova Funds | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | 15,243,806 | 17,251,970 | |||||||
Face value | $ 481,648,010 | 459,217,638 | |||||||
Origination revenue percent | 2% | ||||||||
Origination revenue | $ 20,000 | ||||||||
Other assets | 175,194 | 590,371 | |||||||
Abacus Settlements, LLC | Related Party | Expense Reimbursements | Nova Funds | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue | $ 8,656,885 | $ 11,093,512 |
RELATED-PARTY TRANSACTIONS - Re
RELATED-PARTY TRANSACTIONS - Revenue Earned and Contracts Originated (Details) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) insurance_contract | Dec. 31, 2022 USD ($) insurance_contract | Dec. 31, 2021 USD ($) insurance_contract | |
Nova Funds | Related Party | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 254,517 | ||
Origination expenses for life settlement policies | 7,981 | ||
Face value | $ 46,650,000 | $ 87,143,005 | $ 106,633,792 |
Total policies | insurance_contract | 7 | ||
Average Age | 70 years | ||
Nova Funds | Origination fee revenue | Related Party | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 254,517 | ||
Nova Funds | Expense Reimbursements | Related Party | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 0 | ||
Abacus Settlements, LLC | |||
Related Party Transaction [Line Items] | |||
Revenue | 25,203,463 | 22,592,144 | |
Abacus Settlements, LLC | Nova Funds | Related Party | |||
Related Party Transaction [Line Items] | |||
Revenue | 15,243,806 | 17,251,970 | |
Origination expenses for life settlement policies | 87,143,005 | 106,633,792 | |
Face value | $ 481,648,010 | $ 459,217,638 | |
Total policies | insurance_contract | 333 | 313 | |
Average Age | 75 years | 78 years | |
Abacus Settlements, LLC | Nova Funds | Origination fee revenue | Related Party | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 6,586,922 | $ 6,158,458 | |
Abacus Settlements, LLC | Nova Funds | Expense Reimbursements | Related Party | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 8,656,885 | $ 11,093,512 |
SUPPLEMENTAL DISCLOSURE OF CA_3
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - Schedule of supplemental cash flow information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental cash flow information: | ||
Cash paid for income taxes | $ 0 | $ 1,200 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Distributions owed to the members | $ 1,411 | $ 11,857 |
LEASES - ROU Assets and Lease L
LEASES - ROU Assets and Lease Liabilities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | |||
Operating lease right-of-use assets | $ 171,295 | $ 77,011 | $ 122,503 |
Liabilities: | |||
Operating lease liability, current | 173,799 | 48,127 | 45,107 |
Operating lease liability, non-current | 0 | 29,268 | 77,396 |
Total lease liability | $ 173,799 | 77,395 | 122,503 |
Abacus Settlements, LLC | |||
Assets: | |||
Operating lease right-of-use assets | 300,866 | 367,508 | |
Liabilities: | |||
Operating lease liability, current | 214,691 | 135,321 | |
Operating lease liability, non-current | 87,806 | 232,187 | |
Total lease liability | $ 302,497 | $ 367,508 |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating lease cost | $ 69,904 | $ 12,471 | $ 94,846 | $ 36,313 | $ 48,784 | $ 19,868 |
Variable lease cost | 20,540 | 1,221 | 29,465 | 2,444 | 3,664 | 1,019 |
Total lease cost | $ 90,444 | $ 13,692 | $ 124,311 | $ 38,757 | 52,449 | 20,887 |
Abacus Settlements, LLC | ||||||
Operating lease cost | 190,183 | 126,178 | ||||
Variable lease cost | 9,403 | 10,756 | ||||
Total lease cost | $ 199,586 | $ 136,935 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating cash flows from operating leases | $ 96,891 | $ 36,121 | $ 48,399 | $ 19,868 |
ROU assets obtained in exchange for new lease liabilities | $ 0 | $ 0 | 0 | 139,025 |
Abacus Settlements, LLC | ||||
Operating cash flows from operating leases | 201,478 | 126,178 | ||
ROU assets obtained in exchange for new lease liabilities | $ 123,541 | $ 417,076 |
LEASES - Lease Terms and Discou
LEASES - Lease Terms and Discount Rates (Details) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term (in years) | 9 months 18 days | 1 year 6 months 29 days | 2 years 6 months 29 days |
Weighted-average discount rate | 3.42% | 3.36% | 3.36% |
Abacus Settlements, LLC | |||
Weighted-average remaining lease term (in years) | 1 year 4 months 28 days | 2 years 6 months 29 days | |
Weighted-average discount rate | 3.71% | 3.36% |
LEASES - Future Minimum Noncanc
LEASES - Future Minimum Noncancellable Lease Payments (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Remaining of 2023 | $ 117,527 | $ 49,855 | |
2024 | 118,058 | 29,514 | |
2025 | 0 | 0 | |
2026 | 0 | 0 | |
2027 | 0 | 0 | |
Thereafter | 0 | 0 | |
Total operating lease payments (undiscounted) | 235,585 | 79,369 | |
Less: Imputed interest | (61,786) | (1,974) | |
Lease liability as of September 30, 2023 | $ 173,799 | 77,395 | $ 122,503 |
Abacus Settlements, LLC | |||
Remaining of 2023 | 221,182 | ||
2024 | 88,543 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
Thereafter | 0 | ||
Total operating lease payments (undiscounted) | 309,726 | ||
Less: Imputed interest | (7,229) | ||
Lease liability as of September 30, 2023 | $ 302,497 | $ 367,508 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | Sep. 30, 2023 $ / shares shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 26,150,000 | |
Private Placement Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exercise price of warrants (in dollars per share) | $ / shares | $ 11.5 | $ 11.5 |
Private Placement Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 26,150,000 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||||||
Net income attributable to Longevity Market Assets | $ 903,361 | $ 9,992,004 | $ 15,739,009 | $ 21,507,702 | $ 31,682,275 | $ 14,546 |
Weighted-average shares used in computing net income per share, diluted (in shares) | 63,349,823 | 50,369,350 | 54,632,826 | 50,369,350 | 50,639,350 | 50,639,350 |
Earnings per share - basic (in dollars per share) | $ 0.01 | $ 0.2 | $ 0.29 | $ 0.43 | $ 0.63 | $ 0 |
Earnings per share - diluted (in dollars per share) | $ 0.01 | $ 0.2 | $ 0.29 | $ 0.43 | $ 0.63 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 9 Months Ended | 12 Months Ended | ||||
Nov. 10, 2023 USD ($) | Jul. 05, 2023 USD ($) extension | Sep. 30, 2023 USD ($) option | Dec. 31, 2022 option | Nov. 06, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Sponsor PIK Note | Unsecured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 10,471,648 | |||||
Interest rate (as a percent) | 12% | |||||
LMATT Income Series II, LP | Secured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument term | 3 years | 3 years | ||||
Debt instrument extension term | 1 year | |||||
Debt Instrument extension options | option | 2 | 2 | ||||
LMATT Income Series II, LP | Secured borrowing | General Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 100% | |||||
LMATT Income Series II, LP | Secured borrowing | Capital Commitment Threshold One | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 7.50% | |||||
LMATT Income Series II, LP | Secured borrowing | Capital Commitment Threshold Two | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 7.75% | |||||
LMATT Income Series II, LP | Secured borrowing | Capital Commitment Threshold Three | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 8% | |||||
LMATT Income Series II, LP | Secured borrowing | Minimum | Capital Commitment Threshold Two | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | $ 500,000 | |||||
LMATT Income Series II, LP | Secured borrowing | Minimum | Capital Commitment Threshold Three | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | 1,000,000 | |||||
LMATT Income Series II, LP | Secured borrowing | Maximum | Capital Commitment Threshold One | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | 500,000 | |||||
LMATT Income Series II, LP | Secured borrowing | Maximum | Capital Commitment Threshold Two | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | $ 1,000,000 | |||||
Policy APA | ||||||
Subsequent Event [Line Items] | ||||||
Insurance policies fair value | $ 10,000,000 | |||||
SPV Investment Facility | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 25,000,000 | |||||
Interest rate (as a percent) | 12% | |||||
Debt instrument term | 3 years | |||||
Debt instrument extension term | 1 year | |||||
Number of extensions | extension | 2 | |||||
Default rate | 2% | |||||
SPV Investment Facility | Line of Credit | Secured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 15,000,000 | |||||
SPV Investment Facility | Line of Credit | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 10,000,000 | |||||
Owl Rock Credit Facility | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Default rate | 2% | |||||
Additional borrowing capacity availability period | 180 days | |||||
Commitment fee | 0.50% | |||||
Owl Rock Credit Facility | Line of Credit | Unsecured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 25,000,000 | |||||
Subsequent Event | Fixed Unsecured Notes | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 40,000,000 | |||||
Interest rate (as a percent) | 9.875% | |||||
Debt instrument term | 5 years | |||||
Redemption percentage | 100% | |||||
Subsequent Event | Fixed Unsecured Notes | Unsecured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 35,650,000 | |||||
Interest rate (as a percent) | 9.875% | |||||
Debt instrument term | 5 years | |||||
Redemption percentage | 100% | |||||
Subsequent Event | Sponsor PIK Note | Unsecured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 10,471,648 | |||||
Interest rate (as a percent) | 12% | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument extension term | 1 year | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | General Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 100% | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Capital Commitment Threshold One | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 7.50% | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Capital Commitment Threshold Two | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 7.75% | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Capital Commitment Threshold Three | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Dividend percentage | 8% | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Minimum | Capital Commitment Threshold Two | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | $ 500,000 | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Minimum | Capital Commitment Threshold Three | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | 1,000,000 | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Maximum | Capital Commitment Threshold One | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | 500,000 | |||||
Subsequent Event | LMATT Income Series II, LP | Secured borrowing | Maximum | Capital Commitment Threshold Two | Limited Partner | ||||||
Subsequent Event [Line Items] | ||||||
Capital commitment threshold to determine dividend rate | $ 1,000,000 | |||||
Subsequent Event | Policy APA | ||||||
Subsequent Event [Line Items] | ||||||
Insurance policies fair value | 10,000,000 | |||||
Subsequent Event | SPV Investment Facility | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 25,000,000 | |||||
Interest rate (as a percent) | 12% | |||||
Debt instrument term | 3 years | |||||
Debt instrument extension term | 1 year | |||||
Number of extensions | 2 | |||||
Default rate | 2% | |||||
Subsequent Event | SPV Investment Facility | Line of Credit | Secured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 15,000,000 | |||||
Subsequent Event | SPV Investment Facility | Line of Credit | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 10,000,000 | |||||
Subsequent Event | Owl Rock Credit Facility | Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Additional borrowing capacity availability period | 180 days | |||||
Commitment fee | 0.50% | |||||
Subsequent Event | Owl Rock Credit Facility | Line of Credit | Unsecured borrowing | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 25,000,000 |
SUBSEQUENT EVENTS 1 (Details)
SUBSEQUENT EVENTS 1 (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Apr. 21, 2023 | Oct. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||||
Stock-based awards vesting period | 3 years | ||||
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 | |||
Restricted Stock | |||||
Subsequent Event [Line Items] | |||||
Shares authorized (in shares) | 4,569,922 | ||||
Unamortized stock-based compensation expense weighted-average remaining contractual life | 2 years 3 months 18 days | ||||
Restricted Stock | Share-Based Payment Arrangement, Tranche One | |||||
Subsequent Event [Line Items] | |||||
Vesting percentage | 50% | ||||
Stock-based awards vesting period | 25 months | ||||
Restricted Stock | Share-Based Payment Arrangement, Tranche Two | |||||
Subsequent Event [Line Items] | |||||
Vesting percentage | 50% | ||||
Stock-based awards vesting period | 30 months | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Business combination, consideration transferred, equity interests issued and issuable | $ 531,750,000 | ||||
Common stock, par or stated value per share | $ 0.0001 | ||||
Subsequent Event | Long-term Incentive Plan | Restricted Stock Units (RSUs) | |||||
Subsequent Event [Line Items] | |||||
Issuance of restricted stock units (in shares) | 2,468,500 | ||||
Common stock available for issuance (in shares) | 621,500 | ||||
Shares authorized (in shares) | 3,090,000 | ||||
Unamortized stock-based compensation expense weighted-average remaining contractual life | 3 years | ||||
Vesting percentage | 90% | ||||
Vesting period, employment termination | 12 months | ||||
Subsequent Event | Long-term Incentive Plan | Restricted Stock Units (RSUs) | Share-Based Payment Arrangement, Tranche One | |||||
Subsequent Event [Line Items] | |||||
Vesting percentage | 10% | ||||
Stock-based awards vesting period | 12 months | ||||
Subsequent Event | Long-term Incentive Plan | Restricted Stock Units (RSUs) | Share-Based Payment Arrangement, Tranche Two | |||||
Subsequent Event [Line Items] | |||||
Stock-based awards vesting period | 36 months | ||||
Subsequent Event | Long-term Incentive Plan | Restricted Stock Units (RSUs) | Minimum | |||||
Subsequent Event [Line Items] | |||||
Service period | 1 year | ||||
Vesting percentage, employment termination | 10% | ||||
Subsequent Event | Long-term Incentive Plan | Restricted Stock Units (RSUs) | Maximum | |||||
Subsequent Event [Line Items] | |||||
Service period | 3 years |
Abacus Settlements LLC - DESC_2
Abacus Settlements LLC - DESCRIPTION OF THE BUSINESS (Details) - USD ($) | Jun. 30, 2023 | Jun. 29, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
LMA and Abacus | ||||
Business Acquisition [Line Items] | ||||
Consideration | $ 531,750,000 | |||
Abacus Settlements, LLC | LMA and Abacus | ||||
Business Acquisition [Line Items] | ||||
Consideration | $ 531,750,000 | |||
Share price (in dollars per share) | $ 10 | |||
Aggregate transaction proceeds threshold | $ 200,000,000 | |||
Abacus Settlements, LLC | LMA and Abacus | Minimum | ||||
Business Acquisition [Line Items] | ||||
Aggregate consideration election | $ 20,000,000 | |||
Abacus Settlements, LLC | LMA and Abacus | ERES Class A Common Stock | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.0001 |
Abacus Settlements LLC - SUMM_2
Abacus Settlements LLC - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Abacus Settlements, LLC - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | |
Concentration Risk [Line Items] | ||||
Advertising expense | $ 367,418 | $ 421,088 | $ 741,789 | $ 975,890 |
Revenue Benchmark | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 23% | 63% | ||
Life Settlement Commission Expense Benchmark | Broker Concentration Risk | Two Brokers | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 10% | 10% |
Abacus Settlements LLC - SEGM_2
Abacus Settlements LLC - SEGMENT REPORTING (Details) - segment | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 1 | 2 | |
Abacus Settlements, LLC | |||
Segment Reporting Information [Line Items] | |||
Number of operating segments | 1 |
Abacus Settlements LLC - REVE_2
Abacus Settlements LLC - REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | $ 25,203,463 | $ 22,592,144 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Agent | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | 12,156,552 | 7,668,256 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Broker | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | 9,938,808 | 11,378,713 | ||||
ABACUS SETTLEMENTS LLC DBA ABACUS LIFE | Client direct | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | $ 3,108,103 | $ 3,545,175 | ||||
Abacus Settlements, LLC | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | $ 6,884,690 | $ 6,031,480 | $ 13,184,676 | $ 19,046,144 | ||
Abacus Settlements, LLC | Agent | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | 3,334,402 | 2,982,371 | 7,143,016 | 8,673,072 | ||
Abacus Settlements, LLC | Broker | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | 2,809,499 | 2,128,912 | 4,675,973 | 7,856,882 | ||
Abacus Settlements, LLC | Client direct | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total portfolio servicing revenue | $ 740,789 | $ 920,197 | $ 1,365,687 | $ 2,516,190 |
Abacus Settlements LLC - INCO_2
Abacus Settlements LLC - INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | ||||||||
Income tax expense | $ 1,710,315 | $ 352,081 | $ 2,238,419 | $ 648,887 | $ 889,943 | $ 0 | ||
Effective tax rate percentage | 61.90% | 3.30% | 12.70% | 2.80% | ||||
Abacus Settlements, LLC | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Income tax expense | $ 0 | $ 582 | $ 2,289 | $ 1,907 | $ 889,943 | $ 0 | ||
Effective tax rate percentage | 0.24% | 1.26% |
Abacus Settlements LLC - RETI_2
Abacus Settlements LLC - RETIREMENT PLAN (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Percent of employees gross pay (as a percent) | 4% | ||||
Abacus Settlements, LLC | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Percent of employees gross pay (as a percent) | 4% | ||||
Abacus Settlements, LLC | Deferred Profit Sharing | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Discretionary contribution amount | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum Service Period required to participate in the plan | 1 year |
Abacus Settlements LLC - RELA_3
Abacus Settlements LLC - RELATED-PARTY TRANSACTIONS - Narrative (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2023 USD ($) insurance_contract | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) insurance_contract | Jun. 30, 2023 USD ($) INSURANCE_CONTRACT | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) insurance_contract | Sep. 30, 2022 USD ($) INSURANCE_CONTRACT | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) insurance_contract | Jun. 30, 2023 USD ($) INSURANCE_CONTRACT | Sep. 30, 2023 USD ($) INSURANCE_CONTRACT | Sep. 30, 2022 USD ($) insurance_contract | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||||||||||||||
Total cost of revenue | $ 3,364,957 | $ 1,754,894 | $ 4,827,907 | $ 3,840,969 | $ 6,245,131 | $ 735,893 | ||||||||
Other assets | $ 998,469 | $ 998,469 | 0 | |||||||||||
Related Party | Nova Funds | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total policies | insurance_contract | 7 | |||||||||||||
Face value | $ 46,650,000 | 87,143,005 | 106,633,792 | |||||||||||
Origination revenue percent | 2% | 2% | ||||||||||||
Origination revenue | $ 20,000 | |||||||||||||
Revenue | $ 254,517 | |||||||||||||
Affiliated Entity | Nova Funds | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue | $ 168,899 | 132,220 | $ 711,975 | 752,379 | $ 818,300 | $ 699,884 | ||||||||
Abacus Settlements, LLC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue | $ 6,884,690 | 6,031,480 | $ 13,184,676 | 19,046,144 | ||||||||||
Total cost of revenue | 4,897,980 | 3,864,079 | 9,293,303 | 12,651,704 | ||||||||||
Abacus Settlements, LLC | Related Party | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue | 5,195,602 | 4,264,628 | 9,931,938 | 14,094,223 | ||||||||||
Total cost of revenue | 3,392,647 | 2,930,990 | 6,558,354 | $ 8,453,302 | ||||||||||
Abacus Settlements, LLC | Related Party | Nova Funds | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Total policies | 38 | 38 | 82 | 82 | 72 | 72 | 265 | 265 | ||||||
Face value | $ 56,688,680 | 93,605,072 | $ 96,674,080 | $ 376,409,910 | $ 376,409,910 | |||||||||
Origination revenue percent | 2% | 2% | 2% | 2% | 2% | 2% | ||||||||
Origination revenue | $ 20,000 | |||||||||||||
Revenue | $ 1,579,864 | 8,244,271 | 3,093,797 | $ 8,244,271 | ||||||||||
Abacus Settlements, LLC | Related Party | LMA | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Other assets | 19,246 | $ 19,246 | $ 19,246 | 190,805 | $ 190,805 | $ 190,805 | 19,246 | $ 19,246 | $ 19,246 | 190,805 | ||||
Abacus Settlements, LLC | Affiliated Entity | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue | 3,615,738 | 1,155,000 | 6,838,141 | 2,066,700 | ||||||||||
Total cost of revenue | 2,623,201 | 1,055,000 | 5,020,603 | 1,667,700 | ||||||||||
Abacus Settlements, LLC | Affiliated Entity | LMA | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Revenue | 3,615,739 | 955,000 | 6,794,641 | 1,425,200 | ||||||||||
Total cost of revenue | $ 2,623,201 | $ 875,000 | $ 5,012,103 | $ 1,201,200 | ||||||||||
Abacus Settlements, LLC | Nova Funds | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Ownership percentage | 11% | 11% | 11% | 11% | 11% | 11% | 11% |
Abacus Settlements LLC - RELA_4
Abacus Settlements LLC - RELATED-PARTY TRANSACTIONS - Revenue Earned and Contracts Originated (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2023 USD ($) insurance_contract | Jun. 30, 2023 | Jun. 30, 2023 USD ($) | Jun. 30, 2023 insurance_contract | Jun. 30, 2023 INSURANCE_CONTRACT | Sep. 30, 2022 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 insurance_contract | Sep. 30, 2022 INSURANCE_CONTRACT | Jun. 30, 2023 | Jun. 30, 2023 USD ($) | Jun. 30, 2023 insurance_contract | Jun. 30, 2023 INSURANCE_CONTRACT | Sep. 30, 2023 USD ($) INSURANCE_CONTRACT | Sep. 30, 2022 USD ($) insurance_contract | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party | Nova Funds | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | $ 254,517 | ||||||||||||||||
Cost | 7,981 | ||||||||||||||||
Face value | $ 46,650,000 | $ 87,143,005 | $ 106,633,792 | ||||||||||||||
Total policies | insurance_contract | 7 | ||||||||||||||||
Average Age | 70 years | ||||||||||||||||
Related Party | Origination fee revenue | Nova Funds | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | $ 254,517 | ||||||||||||||||
Related Party | Transaction reimbursement revenue | Nova Funds | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | $ 0 | ||||||||||||||||
Abacus Settlements, LLC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | $ 6,884,690 | $ 6,031,480 | $ 13,184,676 | $ 19,046,144 | |||||||||||||
Abacus Settlements, LLC | Related Party | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | 5,195,602 | 4,264,628 | 9,931,938 | 14,094,223 | |||||||||||||
Abacus Settlements, LLC | Related Party | Nova Funds | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | 1,579,864 | 8,244,271 | 3,093,797 | $ 8,244,271 | |||||||||||||
Cost | 5,290,504 | 4,511,346 | 11,656,637 | 4,511,346 | |||||||||||||
Face value | 56,688,680 | 93,605,072 | 96,674,080 | $ 376,409,910 | $ 376,409,910 | ||||||||||||
Total policies | 38 | 38 | 82 | 82 | 72 | 72 | 265 | 265 | |||||||||
Average Age | 76 years | 75 years | 75 years | 75 years | |||||||||||||
Abacus Settlements, LLC | Related Party | Origination fee revenue | Nova Funds | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | 1,504,532 | 8,008,816 | 2,952,837 | $ 8,008,816 | |||||||||||||
Abacus Settlements, LLC | Related Party | Transaction reimbursement revenue | Nova Funds | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue | $ 75,332 | $ 235,455 | $ 140,960 | $ 235,455 |