MSP Recovery(LIFW) - 2020 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited condensed financial statements for Lionheart Acquisition Corporation II as of June 30, 2020, detailing pre-IPO financial position and subsequent offering events Condensed Balance Sheets As of June 30, 2020, the company's balance sheet showed total assets of $143,861, liabilities of $119,861, and stockholder's equity of $24,000, reflecting its pre-IPO status Condensed Balance Sheets (Unaudited) | | June 30, 2020 (Unaudited, USD) | December 31, 2019 (Audited, USD) | | :--- | :--- | :--- | | Total Assets | $143,861 | $26,171 | | Current asset - cash | $18,378 | $— | | Deferred offering costs | $125,483 | $26,171 | | Total Liabilities | $119,861 | $27,171 | | Promissory note — Related party | $73,171 | $— | | Total Stockholder's Equity | $24,000 | ($1,000) | Condensed Statements of Operations For the three and six months ended June 30, 2020, the company reported a net loss of $0, consistent with its pre-operational development stage Condensed Statements of Operations (Unaudited) | | Three Months Ended June 30, 2020 (Unaudited, USD) | Six Months Ended June 30, 2020 (Unaudited, USD) | | :--- | :--- | :--- | | Net loss | $— | $— | | Basic and diluted net loss per common share | $(0.00) | $(0.00) | Condensed Statements of Changes in Stockholder's Equity For the six months ended June 30, 2020, stockholder's equity increased from a $1,000 deficit to $24,000 due to Class B common stock issuance - The primary equity event was the issuance of 5,750,000 Class B common shares to the Sponsor for an aggregate price of $25,000[16] Condensed Statement of Cash Flows For the six months ended June 30, 2020, net cash provided by financing activities totaled $18,378, driven by stock issuance and promissory note proceeds offset by offering costs Condensed Statement of Cash Flows (Unaudited) | Cash Flow Item | Amount (Six Months Ended June 30, 2020, Unaudited, USD) | | :--- | :--- | | Proceeds from issuance of Class B common stock | $25,000 | | Proceeds from promissory note—related party | $73,171 | | Payment of offering costs | ($79,793) | | Net cash provided by financing activities | $18,378 | Notes to Condensed Financial Statements The notes detail the company's formation as a PropTech SPAC, its pre-operational status, and significant subsequent events including its August 2020 IPO and private placement - The company was formed to effect a business combination and intends to focus on businesses in the PropTech sector[22][23] - Subsequent to the reporting period, on August 18, 2020, the company consummated its IPO, raising gross proceeds of $200 million, later increased to $230 million after the underwriters exercised their over-allotment option[25][28] - An amount of $230 million from the IPO and private placement proceeds was placed in a trust account[27][28] - The company has until February 18, 2022 (the "Combination Period") to complete a Business Combination[37] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's pre-operational status as a blank check company, its post-IPO liquidity, and future expenses related to identifying a business combination - The company is a blank check company formed on December 23, 2019, with activities limited to organizational matters and IPO preparation[93][94] Post-IPO Financial Position | Description | Amount (USD) | | :--- | :--- | | Gross Proceeds from IPO & Over-allotment | $230,000,000 | | Gross Proceeds from Private Placement | $6,500,000 | | Amount Placed in Trust Account | $230,000,000 | | Cash Held Outside Trust for Working Capital | $2,039,384 | | Total Transaction Costs | $13,128,937 | - The company has an agreement to pay its Sponsor a monthly fee of $15,000 for administrative support, commencing August 14, 2020[105] - Underwriters are entitled to a deferred fee of $8,050,000, payable from the Trust Account only upon completion of a Business Combination[106] Item 3. Quantitative and Qualitative Disclosures about Market Risk This disclosure is not required as the company is a smaller reporting company - Disclosure is not required for smaller reporting companies[109] Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal controls - Management concluded that as of June 30, 2020, the company's disclosure controls and procedures were effective[112] - No material changes were made to the internal control over financial reporting during the fiscal quarter[113] PART II – OTHER INFORMATION Item 1. Legal Proceedings The company has no legal proceedings to report - There are no legal proceedings[115] Item 1A. Risk Factors This section highlights the risk of negative interest rates on funds in the Trust Account, potentially reducing the per-share redemption amount below $10.00 - A key risk is that funds held in the Trust Account are invested in securities that could bear a negative interest rate, potentially reducing the per-share redemption amount below $10.00[117] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section details the proceeds from the company's Initial Public Offering and private placement, including the allocation of $230 million to the Trust Account and associated offering costs Equity Offerings and Proceeds | Offering | Units Sold | Price Per Unit (USD) | Gross Proceeds (USD) | | :--- | :--- | :--- | :--- | | Initial Public Offering (incl. over-allotment) | 23,000,000 | $10.00 | $230,000,000 | | Private Placement | 650,000 | $10.00 | $6,500,000 | - Of the gross proceeds, $230 million was placed in the Trust Account[120] - Total offering costs included $4,600,000 in immediate underwriting discounts and commissions and $8,050,000 in deferred commissions[121] Item 3. Defaults Upon Senior Securities The company has no defaults upon senior securities to report - None[123] Item 4. Mine Safety Disclosures This item is not applicable to the company - Not Applicable[124] Item 5. Other Information The company has no other information to report - None[125] Item 6. Exhibits This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including key organizational and offering-related documents - A list of 23 exhibits filed with the report is provided, including key organizational and offering-related documents[127]