Altisource Asset Management(AAMC) - 2021 Q4 - Annual Report

Financial Performance - For the fiscal year ended December 31, 2021, salaries and employee benefits decreased to $5.6 million from $12.0 million in 2020, a reduction of approximately 53.3%[169] - Legal fees increased to $6.9 million in 2021 from $4.7 million in 2020, representing a rise of approximately 46.8%[170] - Dividend income for the year ended December 31, 2021, was $3.1 million, compared to zero in 2020, indicating a significant increase due to newly acquired REIT equity securities[173] - The company reported a realized gain of $8.3 million from the purchase and sale of REIT equity securities in 2021, with no gains recognized in 2020[174] - Total cash flows from continuing operations for the year ended December 31, 2021, were $30.4 million, compared to a cash outflow of $18.6 million in 2020[182] Cash and Investments - As of December 31, 2021, cash and cash equivalents increased to $78.3 million from $41.6 million in 2020, an increase of approximately 88%[177] - The company plans to invest $40 million to grow its Alternative Lending Group (ALG) and pursue opportunities related to Crypto ATMs[158] - The company intends to initially invest $2.0 million in the Crypto ATM business, with plans for further investment as opportunities arise[163] - The company has repurchased a total of $268.7 million in shares under its Board-approved repurchase plan, with $31.3 million remaining for future repurchases[180] Discontinued Operations - The company recorded a pre-tax gain on the disposal of discontinued operations amounting to $7.5 million upon the sale of the remainder of the Disposal Group[175] - Cash flows from discontinued operations in 2021 were related to the termination of the Amended AMA with Front Yard[186] - Discontinued operations are reported in accordance with ASC 205-20, reflecting the termination agreement with Front Yard as discontinued operations[194] Tax and Equity - Income taxes are recognized using the asset and liability method, with deferred tax assets and liabilities measured using enacted rates expected to apply to taxable income in future years[192] - The Series A preferred stock is classified as temporary equity, with $250.0 million requested for redemption on March 15, 2020, but the company lacked legally available funds for full redemption[191] - The company had no off-balance sheet arrangements as of December 31, 2021 or 2020[187]