Altisource Asset Management(AAMC) - 2021 Q2 - 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 recognized[103]. - Dividend income was $0.9 million and $3.0 million for the three and six months ended June 30, 2021, with no dividends received in 2020[114]. - The company recorded a pre-tax gain on disposal of $7.5 million from the sale of certain assets and operations to Front Yard[115]. - The company has classified all revenues from Front Yard as discontinued operations following the termination of the Amended Asset Management Agreement[105]. - The change in fair value of equity securities was $(2.4) million and $3.3 million for the three and six months ended June 30, 2021[114]. - The company has no results from discontinued operations for the three and six months ended June 30, 2021[116]. - The company recorded a pre-tax gain on the disposal of $7.5 million from the sale of the remainder of the Disposal Group on January 1, 2021[115]. - Dividend income for the six months ended June 30, 2021, was $3.0 million, with no dividends received in 2020[114]. - The change in fair value of equity securities was $3.3 million for the six months ended June 30, 2021, compared to no holdings in 2020[114]. Cash and Investments - As of June 30, 2021, the company had cash and cash equivalents of $52.0 million and marketable equity securities valued at $39.8 million[117]. - The company purchased $97 million of equity securities, funded by $68 million in cash and $29 million borrowed under a margin arrangement[123]. - In Q2 2021, the company sold $66.8 million in equity securities, fully repaying the margin arrangement during the same quarter[123]. - Net cash provided by investing activities from continuing operations was $19.2 million for the six months ended June 30, 2021, compared to $(22) thousand in 2020[126]. - Net cash provided by investing activities from discontinued operations for the six months ended June 30, 2021, was $511 million, slightly up from $483 million in 2020[126]. Operating Activities - For the six months ended June 30, 2021, net cash used in operating activities from continuing operations was $(11.2) million, compared to $(8.8) million in the same period of 2020[126]. - Net cash used in operating activities from continuing operations for the six months ended June 30, 2021, was $(11,151) million, compared to $(8,768) million for the same period in 2020[126]. - Net cash provided by operating activities from discontinued operations for the six months ended June 30, 2021, was $5,439 million, up from $4,451 million in 2020[126]. - Total cash flows relating to discontinued operations for the six months ended June 30, 2021, were $6,030 million, compared to $4,663 million in 2020[126]. - Total cash flows relating to continuing operations for the six months ended June 30, 2021, amounted to $4,075 million, compared to $(8,701) million in 2020[126]. Expenses - Salaries and employee benefits decreased to $(0.3) million and $3.2 million for the three and six months ended June 30, 2021, compared to $3.3 million and $6.4 million for the same periods in 2020[112]. - Legal and professional fees increased to $2.7 million and $4.5 million for the three and six months ended June 30, 2021, compared to $1.7 million and $3.2 million for the same periods in 2020[113]. - Legal and professional fees increased to $4.5 million for the six months ended June 30, 2021, from $3.2 million in the same period of 2020[113]. Business Strategy - The company is exploring new business lines, including fix and flip lending, fee-based real estate investment banking, and cryptocurrency-related businesses[99]. - The company had no off-balance sheet arrangements as of June 30, 2021, or December 31, 2020[130]. - The company reported significant cash flow improvements in both continuing and discontinued operations compared to the previous year[126].