Revenue Growth - Total revenues for the three months ended September 30, 2023, were $21,120,930, a significant increase from $11,507,748 in the same period of 2022, representing an 83.5% growth[236] - Active management revenue for the nine months ended September 30, 2023, reached $39,921,061, compared to $28,411,475 for the same period in 2022, reflecting a 40.6% increase[236] - Active management revenue for the three months ended September 30, 2023, was $18,926,144, an increase of $7,800,641 or 70.1% compared to $11,125,503 in the same period of 2022[245] - Total active management revenue for the nine months ended September 30, 2023, was $39,921,061, an increase of $11,509,586 or 40.5% compared to $28,411,475 in the same period of 2022[248] - Total origination revenue reached $1,715,700 for the three months ended September 30, 2023, also a 100% increase from $0 in the prior year[251] - Related party origination revenue increased to $254,517 for the three months ended September 30, 2023, compared to $0 in the same period of 2022, marking a 100% increase[250] Profit and Loss - The company reported a gross profit of $17,755,973 for the three months ended September 30, 2023, compared to $9,752,854 in the same period of 2022, marking an increase of 82.5%[236] - For the three months ended September 30, 2023, net income attributable to Abacus Life, Inc. was $903,361, a decrease from $9,992,004 in the same period of 2022, representing a decline of 91.0%[237] - Adjusted Net Income for the three months ended September 30, 2023, was $9,168,357, a decrease of $1,187,099, or 11.5%, compared to the same period in 2022[308] - Adjusted Net Income for the nine months ended September 30, 2023, was $23,516,703, compared to $22,277,795 for the same period in 2022[309] - Net income for Abacus Life Inc. for the three months ended September 30, 2023, was $1,050,972, a decrease of 89.9% compared to $10,355,455 for the same period in 2022[329] Expenses - The cost of revenue for the three months ended September 30, 2023, was $3,364,957, up from $1,754,894 in the same period of 2022, which is an increase of 91.6%[236] - Sales and marketing expenses for the three months ended September 30, 2023, were $1,704,154, significantly higher than $14,905 in the same period of 2022[236] - General and administrative expenses, including stock-based compensation of $4,538,632, totaled $9,838,951 for the three months ended September 30, 2023, compared to $59,816 in the same period of 2022[236] - General and administrative expenses increased by $9,779,135, or 16,348.7%, to $9,838,951 for the three months ended September 30, 2023, largely due to stock-based compensation and legal consulting fees[264] - Interest expense was $2,679,237 for the three months ended September 30, 2023, compared to $0 for the same period in 2022, driven by the Owl Rock Credit Facility and other notes[279] Investment Performance - The unrealized loss on investments for the three months ended September 30, 2023, was $306,800, compared to a loss of $246,846 in the same period of 2022[236] - The unrealized loss on investments for the nine months ended September 30, 2023, decreased by $1,793,177, or 137.7%, totaling $(491,356) compared to a gain of $1,301,821 in the same period of 2022[270] - The company has not identified any impairment indicators for its equity investments in privately held companies, maintaining a carrying value of $1,650,000 as of September 30, 2023[361] - Abacus Life, Inc. has investments classified as available-for-sale securities, with a fair value approximating the carrying value of $1,000,000 as of September 30, 2023[362] Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2023, was $51,176,074, significantly higher than $6,395,331 used in the same period of 2022[341] - Financing activities generated $55,203,004 of net cash during the nine months ended September 30, 2023, compared to $12,069,661 in the same period of 2022, an increase of $43,133,343[344] - The company may seek additional equity or debt financing in the future to support revenue growth and expansion of active management and portfolio activities[340] - The company is obligated to provide financial support to the Providers, with significant contractual obligations including market-indexed notes totaling $12,900,291 as of September 30, 2023[345] Market and Growth Opportunities - The company has identified significant opportunities for growth in the life settlements industry, with a narrow portion of the potential market currently being captured[368] - Abacus expects to continue investing in technology and marketing infrastructure to support anticipated growth in the life settlements industry[369] Policy and Segment Performance - Total revenue for the active management segment increased by $7,800,641, or 70.1%, for the three months ended September 30, 2023, compared to the same period in 2022[296] - Total revenue for the originations segment increased by $10,214,489 for the three months ended September 30, 2023, with no revenue recorded prior to the Business Combination in June 2023[299] - The number of policies serviced increased by 106.9% to 904 in the nine months ended September 30, 2023, compared to 437 in 2022[316] - The value of policies serviced rose by 49.8% to $943,913,658 in 2023 from $630,312,740 in 2022[316]
ET.RES.ACQ(ERESW) - 2023 Q3 - Quarterly Report