Altisource Asset Management(AAMC) - 2021 Q1 - Quarterly Report

Financial Performance - The Company recognized a Base Management Fee of $3.584 million for the year ended December 31, 2020, with no incentive fees recorded[106]. - Revenues from discontinued operations decreased to $0 from $4.0 million for the three months ended March 31, 2021, compared to the same period in 2020[118]. - Other income from discontinued operations increased to $7.5 million from a nominal amount for the three months ended March 31, 2021, driven by the completion of the sale of the remainder of the Disposal Group[119]. - AAMC reported net cash used in operating activities from continuing operations of $7.7 million for the three months ended March 31, 2021, compared to $5.1 million for the same period in 2020[128]. - For the three months ended March 31, 2021, net cash used in operating activities from continuing operations was $(7,681,000), compared to $(5,078,000) for the same period in 2020[128]. - Net cash used in investing activities from continuing operations for the three months ended March 31, 2021, was $(49,818,000), primarily due to the purchase of securities[130]. - Net cash provided by financing activities from continuing operations for the three months ended March 31, 2021, was $24,444,000, mainly from borrowed funds[131]. - Cash flows from discontinued operations for the three months ended March 31, 2021, totaled $6,030,000, primarily from operating activities[132]. Employee Compensation - Salaries and employee benefits increased to $3.5 million for the three months ended March 31, 2021, up from $3.1 million in the same period in 2020[114]. - Salaries and employee benefits increased to $3.5 million for the three months ended March 31, 2021, from $3.1 million in the same period in 2020, primarily due to restricted stock grants[114]. - Legal and professional fees increased to $1.9 million for the three months ended March 31, 2021, from $1.5 million in the same period in 2020[114]. - Legal and professional fees rose to $1.9 million for the three months ended March 31, 2021, compared to $1.5 million in the same period in 2020, driven by litigation-related costs[114]. Cash and Investments - The Company had cash and cash equivalents of $14.9 million as of March 31, 2021, down from $41.6 million as of December 31, 2020[120]. - AAMC's cash and cash equivalents decreased to $14.9 million as of March 31, 2021, from $41.6 million as of December 31, 2020, primarily due to investments in equity securities[120]. - The Company held $102.7 million in equity securities as of March 31, 2021, financed partially by borrowings of $28.4 million under a margin loan[120]. - The change in fair value of equity securities was $5.7 million for the three months ended March 31, 2021, compared to zero in the same period in 2020[116]. - Dividend income was $2.2 million for the three months ended March 31, 2021, compared to zero in the same period in 2020[116]. - The company purchased $97 million of equity securities between February 9, 2021, and February 17, 2021, using $68 million in cash and $29 million borrowed[125]. Legal Matters - AAMC intends to continue pursuing its strategic business initiatives despite ongoing litigation with Luxor, which could materially affect liquidity if Luxor prevails[124]. - AAMC is facing a lawsuit from Luxor seeking at least $144,212,000 in damages for breach of contract related to the redemption of Series A Shares[122]. - AAMC entered into a settlement agreement with Putnam, exchanging 81,800 Series A Shares for 288,283 shares of AAMC's common stock, and will pay a total of $2,863,000 to Putnam[123]. - The company intends to continue pursuing strategic business initiatives despite ongoing litigation with Luxor[124]. - AAMC's liquidity could be materially affected if Luxor prevails in its lawsuit[124]. Share Repurchase - AAMC repurchased a total of $268.7 million in shares of common stock under a Board-approved repurchase plan, with $31.3 million remaining available for future repurchases[126]. - As of March 31, 2021, AAMC repurchased $268.7 million in shares under a $300 million repurchase authorization, with $31.3 million remaining for future repurchases[126].