Abacus Life(ABL) - 2024 Q3 - Quarterly Report

Revenue Growth - Total revenues for the three months ended September 30, 2024, were $28,148,491, an increase from$21,120,930 for the same period in 2023, representing a growth of approximately 33%[11] - Active management revenue increased significantly to $26,967,575 for the three months ended September 30, 2024, compared to$18,926,144 in the prior year, marking a growth of about 42%[11] - Gross profit for the three months ended September 30, 2024, was $25,960,510, up from$17,755,973 in the same period of 2023, reflecting a growth of approximately 46%[11] - Total revenue for the three months ended September 30, 2024, was $28,148,491, an increase of 33.5$21,120,930 for the same period in 2023[40] - Active management revenue for the three months ended September 30, 2024, was $26,967,575, representing a 42.5$18,926,144 in the prior year[40] - Total active management revenue for the nine months ended September 30, 2024, was $73,778,331, an increase of$33,857,270, or 84.8%, compared to the same period in 2023[181] Financial Position - Total current assets decreased slightly to $30,796,677 as of September 30, 2024, from$31,776,834 at December 31, 2023[5] - Total liabilities increased to $219,369,540 as of September 30, 2024, compared to$167,755,991 at December 31, 2023, indicating a rise of about 31%[7] - Long-term debt at fair value increased to $96,358,740 as of September 30, 2024, from$55,318,923 at December 31, 2023, representing a significant rise of about 74%[7] - The accumulated deficit as of September 30, 2024, was $39,639,373, compared to$34,726,135 at December 31, 2023, indicating an increase in losses[7] - Total stockholders' equity increased to $257,939,628 as of September 30, 2024, from$164,070,076 at December 31, 2023, reflecting a growth of about 57%[7] - The total accumulated deficit as of September 30, 2024, increased to $(39,639,373) from$(34,514,318) as of June 30, 2024, indicating a worsening financial position[16] Net Loss and Earnings - For the three months ended September 30, 2024, the net loss attributable to common stockholders was $5,125,055, compared to a net income of$903,361 for the same period in 2023, representing a significant decline[14] - The loss per share for the three months ended September 30, 2024, was ($0.07), compared to earnings per share of$0.01 for the same period in 2023[14] - The comprehensive loss attributable to common stockholders for the three months ended September 30, 2024, was $5,156,658, compared to a comprehensive income of$126,230 for the same period in 2023[14] - The company reported a net loss of $(5,284,811) for the three months ended September 30, 2024, compared to a net income of$1,050,972 for the same period in 2023[14] - The net loss attributable to non-controlling interests for the three months ended September 30, 2024, was $(170,730), compared to$(91,292) for the same period in 2023[14] Cash and Cash Equivalents - The company’s cash and cash equivalents decreased to $19,409,615 as of September 30, 2024, from$25,588,668 at December 31, 2023, a decline of approximately 24%[5] - Cash and cash equivalents at the end of the period were $19,409,615, down from$36,649,190 at the end of September 30, 2022[23] Stock and Equity - The weighted-average shares outstanding for the three months ended September 30, 2024, were 74,694,319, an increase from 63,349,823 for the same period in 2023[14] - The total stockholders' equity as of September 30, 2024, was $257,939,628, reflecting a decrease from$256,849,488 as of June 30, 2024[16] - The Company has 8,900,000 Private Placement Warrants outstanding, exercisable for one share of Class A common stock at a price of $11.50 per share[84] - As of September 30, 2024, the Company had 75,756,439 shares of common stock issued, with 74,708,213 outstanding and 1,048,226 held as treasury stock[107] Expenses and Costs - General and administrative expenses increased by$30,282,964, or 272.5%, to $41,396,346 for the nine months ended September 30, 2024, compared to$11,113,382 for the same period in 2023, primarily due to non-cash stock-based compensation[196] - Sales and marketing expenses increased by $3,534,943, or 113.4$6,651,942 for the nine months ended September 30, 2024, compared to $3,116,999 for the same period in 2023, mainly due to higher advertising costs[194] - The Company incurred total lease costs of$438,838 for the three months ended September 30, 2024, compared to $90,444 for the same period in 2023, indicating a significant increase[132] Acquisitions and Strategic Moves - The company plans to acquire Carlisle Management Company for approximately$200 million, with payment in common stock and senior unsecured notes[37] - The acquisition of Abacus was completed on June 30, 2023, with a business enterprise value of $165,361,332, resulting in recognized goodwill of$139,930,190[31][32] - Abacus Settlements, LLC was acquired by LMA on June 30, 2023, indicating a strategic move for market expansion[152] Tax and Compliance - The effective tax rate for the three months ended September 30, 2024, was 4.5%, significantly lower than the 61.9% effective rate for the same period in 2023, primarily due to stock-based compensation expense deductions[126] - The Company recognized a provision for income taxes of $(250,368) for the three months ended September 30, 2024, compared to$1,710,315 for the same period in 2023[126] Life Settlement Policies - The company held 532 life settlement policies as of September 30, 2024, with an aggregate face value of $976,761,831 and a corresponding fair value of$273,249,493[43] - Life settlement policies at fair value totaled $273,249,493 as of September 30, 2024, with a weighted average discount rate of 20%[74][78] - The average realized gain on policies sold under the investment method was 43.2% for the three months ended September 30, 2024, compared to 29.2% for the same period in 2023[180]