v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 37,311,952 $ (24,918,037)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation and amortization 18,605,114 7,910,158
Allowance for credit losses 1,245,575 0
Impairment of other investment 500,000 0
Stock-based compensation 15,519,382 43,435,215
Amortization of debt issuance costs 2,405,939 936,112
Unrealized loss on equity securities, at fair value 0 238,012
Unrealized gain on other investments (204,016) 0
Non-cash gain on policy trades 0 (6,422,002)
Unrealized gain on policies, at fair value (49,287,046) (53,786,829)
Loss (Gain) on change in fair value of debt (3,362,103) 4,835,351
Loss on change in fair value of warrant liability 1,704,193 2,702,040
Non-cash interest income (384,618) (99,969)
Deferred income taxes 824,674 5,999,572
Non-cash lease expense 422,954 352,056
Non-cash other income (1,750,000) 0
Changes in operating assets and liabilities:    
Accounts receivable (798,821) (13,202,882)
Accounts receivable, related party (5,607,465) 266,030
Equity securities, at fair value 0 2,203,367
Prepaid expenses and other current assets (948,416) (361,872)
Other assets 115,807 (537,242)
Accrued expenses 3,948,939 802,510
Accrued transaction costs 1,852,971 483,206
Contract liabilities, deposits on pending settlement (2,304,359) 1,966,543
Other current liabilities (4,303,850) 3,858,345
Income tax payable 3,022,552 (751,734)
Income tax receivable 1,688,618 (2,178,694)
Retrocession fees payable (44,709) 1,675,169
Net change in life settlement policies, at fair value (49,172,436) (187,893,057)
Net change in life settlement policies, at cost 165,672 613,201
Net cash used in operating activities (25,680,465) (208,810,444)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Origination of note receivable (7,000,000) 0
Acquisition of businesses, net of cash acquired (1,647,725) (2,430,620)
Purchase of property and equipment (931,443) (786,236)
Purchase of intangible assets 0 (18,900)
Purchase of other investments (11,699,569) (200,000)
Purchase of available for sale securities (2,000,000) (1,000,000)
Change in due from affiliates 0 (519,534)
Net cash used in investing activities (23,278,737) (4,955,290)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Issuance of long term debt 50,000,000 125,000,000
Issuance of long term-debt, at fair value 26,048,884 73,475,570
Payment of discounts and financing costs (1,475,195) (7,475,569)
Repayment of debt, at fair value (51,226,628) (4,040,758)
Common stock issuance 0 181,702,400
Common stock issuance transaction costs (3,473,280) (14,812,621)
Repurchase of common stock (43,783,458) (10,742,075)
Transaction costs 0 (483,451)
Payment of Series A Convertible Preferred dividend (287,500) 0
Payment of Common dividend (19,550,571) 0
Warrant conversions 0 6,852,206
Net cash (used in) provided by financing activities (44,872,748) 320,121,348
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (93,831,950) 106,355,614
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 131,944,282 25,588,668
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 38,112,332 131,944,282
NON-CASH OPERATING, INVESTING, AND FINANCING ACTIVITIES:    
Non-cash sale of life settlement policies, at fair value 0 24,957,059
Non-cash purchase of life settlement policies, at fair value 0 24,957,059
Non-cash consideration for business acquisition 9,265,197 0
Non-cash issuance of debt in connection with business acquisition 2,002,400 72,727,075
Non-cash issuance of common stock in connection with business acquisition 1,610,893 77,547,880
Non-cash investment in other investments 5,000,000 0
Non-cash issuance of series A convertible preferred stock 5,000,000 0
Warrant Conversions 11,049,193 0
SUPPLEMENTAL DISCLOSURES:    
Interest paid 34,037,633 11,615,613
Income taxes paid, net of refunds 9,187,435 2,146,846
Related Party    
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Unrealized gain on policies, at fair value 89,503,908 0
Non-cash interest expense 1,588,564 3,061,172
Changes in operating assets and liabilities:    
Management and performance fee receivable, related party 1,420,839 (466,649)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayment of debt 0 (28,189,406)
Due to affiliates 0 (1,159,712)
Nonrelated Party    
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Non-cash interest expense 143,629 470,464
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayment of debt (1,125,000) 0
Affiliated Entity    
CASH FLOWS FROM FINANCING ACTIVITIES:    
Due to affiliates $ 0 $ (5,236)

Source

10-K XBRL Zip