Abacus Global Management, Inc.

ABACUS GLOBAL MANAGEMENT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying consolidated financial statements (“Interim Financial Statements”) are presented in accordance with the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC") and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”) as contained in the Company’s Annual Report on Form 10-K. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Accordingly, the Interim Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“2025 Annual Report”). Refer to Note 2 in the Company’s 2025 Annual Report for the full list of the Company’s significant accounting policies. The details in those notes have not changed, except as discussed in Note 2 to the Interim Financial Statements and as a result of normal adjustments in the interim periods. Capitalized terms used and not specifically defined herein have the same meanings given to those terms in our 2025 Annual Report. We also may use certain other terms that are defined within these Interim Financial Statements.

The Interim Financial Statements presented herein and discussed below include 100% of the assets, liabilities, revenues, expenses, and cash flows of Abacus Global Management, Inc., (the “Company”) all entities in which the Company has a controlling voting interest (“subsidiaries”), and variable interest entities (“VIEs”) for which the Company is the primary beneficiary, as determined in accordance with consolidation accounting guidance. References in these Interim Financial Statements to net income or loss attributable to common stockholders and stockholders’ equity do not include noncontrolling interests, which represent the outside ownership of our consolidated non-wholly owned entity and are reported separately. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation.

The Interim Financial Statements have been prepared on a basis consistent with the audited annual financial statements as of and for the year ended December 31, 2025, and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, the results of our operations, and cash flows for the periods presented. The Interim Financial Statements are not necessarily indicative of the results to be expected for the full year, or any other period. All references to financial information in the Interim Financial Statements and in the condensed notes to Interim Financial Statements are unaudited.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates include, but are not limited to, revenue recognition, cost of revenue, life settlement policy valuation, goodwill and intangibles valuation, and income taxes. The uncertainties in the broader macroeconomic environment have made it more challenging to make these estimates. Actual results could differ from our estimates, and such differences may be material.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

New Accounting Standards—The Company’s management reviews recent accounting standards to determine the impact to the Company’s financial statements. There were no new accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board’s (“FASB”) in addition to those discussed in our 2025 Annual Report that would have an impact to the Interim Financial Statements.

Recently Adopted Accounting Standards

ASU 2025-05—”Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”. In July 2025, the FASB issued ASU 2025-05 to provide all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. All entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The Company adopted ASU 2025-05 on a prospective basis effective January 1, 2026. The Company elected the practical expedient to estimate expected credit losses for current accounts receivables. The election of the practical expedient provided by this ASU did not have an impact to the Company’s consolidated financial statements upon adoption.

Recently Issued Accounting Pronouncements

ASU 2025-11—”Interim Reporting (Topic 270): Narrow-Scope Improvements.”In December 2025, the FASB issued ASU 2025-11 to clarify interim disclosure requirements. The objective of the amendments is to provide further clarity about the current interim disclosure requirements. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Adoption of this ASU can be applied either using a prospective or a retrospective approach. Early adoption is permitted. The Company is currently evaluating the provisions of this ASU and does not expect this ASU to have a material impact on the Company’s consolidated financial statements.

ASU 2026-01 — “Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity Classified Preferred Stock.” In April 2026, the FASB issued ASU 2026-01 to provide guidance on how an issuer should initially measure paid-in-kind (PIK) dividends on equity classified preferred stock. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2026. Adoption of this ASU can be applied either using a prospective or a retrospective approach. Early adoption is permitted. The Company is currently evaluating the provisions of this ASU and does not expect this ASU to have a material impact on the Company’s consolidated financial statements.

ASU 2026-02 — “Environmental Credits and Environmental Credit Obligations (Topic 818).” In May 2026, the FASB issued ASU 2026-02 to improve the financial accounting for and disclosure of environmental credits and environmental credit obligations. The objective of the amendment is to provide recognition, measurement, presentation, and disclosure requirements for all entities that generate, purchase or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. This ASU is effective for interim reporting periods with annual reporting periods beginning after December 15, 2027. Adoption of this ASU should be applied using a retrospective approach. Early adoption is permitted. The Company is currently evaluating the provisions of this ASU and does not expect this ASU to have a material impact on the Company’s consolidated financial statements.

Concentrations— No customer accounted for 10% or more in revenues related to sales of life insurance policies for the three months ended June 30, 2026. One customer accounted for 26% of in revenues related to sales of life insurance policies for the three months ended June 30, 2025.

One customer accounted for 11% (related party) in revenues related to sales of life insurance policies for the six months ended June 30, 2026. One customer accounted for 15% (related party) of total revenues related to the sales of life insurance policies for the six months ended June 30, 2025.

Liquidity—The first redemption date for LMA Income Series II, LP (“LMAIS II”), a limited partnership that is a variable interest entity in which the Company has invested was March 31, 2026 at which point the investors of that entity had the option to (i) redeem their investment, (ii) extend their investment for an additional year, or (iii) invest into an Abacus managed fund launched in March 2025. The next redemption date for LMAIS II will be June 30, 2027 with the same options available to investors as the first redemption date. As of June 30, 2026, the related remaining liabilities are included within the current portion of long-term debt, at fair value within our consolidated balance sheet. If all investors were to elect to redeem their investment, the Company has determined it has sufficient liquidity available in the form of cash, credit available under the secured credit facility, and the ability to sell life settlement policies in an active market to repay the debt. Refer to Note 14, Long-Term Debt for additional information related to LMAIS II.

Reclassifications—Certain prior period amounts in these Interim Financial Statements and condensed notes have been reclassified to conform to the current presentation for the three and six months ended June 30, 2026 and 2025 and for the year ended December 31, 2025.

3. BUSINESS COMBINATIONS

NIB Acquisition

On April 24, 2025, the Company completed the acquisition of National Insurance Brokerage, LLC ("NIB"), a Delaware limited liability company (the “NIB Acquisition”). NIB was owned by Jay Jackson, Chief Executive Officer of the Company, who held a 25% beneficial interest in NIB, and KMG Group Holdings, LLC ("KMG"), who held a 75% beneficial interest in NIB (the "Sellers"). KMG is equally owned by Matthew Ganovsky, K. Scott Kirby, and Sean McNealy, Co-Founders and Presidents of the Company. The Company paid approximately $2.1 million in cash, net of cash acquired, to acquire 100% of the interest in NIB.

The NIB Acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations (“ASC 805”), which requires the Company to record the assets acquired and liabilities assumed at fair value as of the acquisition date. The values attributed to intangible assets were based on valuations prepared using Level 3 inputs and assumptions in accordance with ASC 820, Fair Value Measurements (“ASC 820”).

Goodwill related to the NIB Acquisition was assigned to the Life Solutions reportable segment. It represents the value that we expect to obtain from growth opportunities from our combined operations and is deductible for tax purposes.

The Company finalized the valuations related to the acquired assets and liabilities of NIB on June 30, 2025. The following table presents the fair value of the assets acquired and the liabilities assumed in connection with the business combination.

Intangible assets were comprised of the following:

AccuQuote Acquisition

On August 14, 2025 (“AccuQuote Acquisition Date”), the Company acquired 100% of Life Distributors, LLC (“AccuQuote”), a Delaware limited liability company (“AccuQuote Acquisition”). AccuQuote is an insurance brokerage firm. The Company used its note receivable balance of approximately $9.3 million due from AccuQuote as consideration as result of the AccuQuote’s default on the note (non-cash consideration). The value of the note receivable balance on the AccuQuote Acquisition Date approximated fair value. The Company acquired approximately $0.3 million of cash and paid approximately $0.8 million in acquisition costs.

The Company evaluated whether the transaction should be accounted for as (i) a loan settlement within the scope of ASC 310-20-40-2 or (ii) a business combination within the scope of ASC 805. As part of the Company’s evaluation of AccuQuote, the April 2025 financing was structured to provide the Company with creditor protections and an enforceable mechanism to obtain control upon the occurrence of defined events of default. Because the Company obtained control of AccuQuote by exercising a contractual call right upon an event of default as defined in the note agreement and acquiring 100% ownership, and because AccuQuote met the definition of a business (including inputs and processes capable of producing outputs), the Company concluded the transaction was a business combination under ASC 805. In addition, until the event of default and election to enforce remedies, AccuQuote remained independent and the Company held only creditor rights. Accordingly, the note receivable (including accrued amounts) was treated as consideration transferred in the acquisition rather than accounted for as a standalone loan settlement under ASC 310-20.

The Company assessed the note receivable prior to the acquisition date and concluded that no allowance for credit losses (ACL) was required and that the carrying amount approximated fair value on the acquisition date. In making these conclusions, the Company considered that (1) the note was secured by 100% of AccuQuote’s assets, including its equity interests, and the Company’s contractual remedies provided a recovery mechanism, (2) the default was related to specified financial covenant and financial metric noncompliance rather than an inability to generate cash flows, and (3) the Company did not identify indicators of material operational deterioration through the default date. The Company also considered that the note was originated approximately 4.5 months prior to the acquisition on negotiated terms, and the Company’s expected recovery under the note was supported by the secured structure and available remedies. The financing and related contractual remedies were designed to provide the Company with multiple paths to value realization—repayment under the note or, upon a defined event of default, the ability to obtain control through enforcement—consistent with the transaction’s economic substance. Therefore, the Company concluded that the note’s carrying value was approximately equal to its fair value at the time of acquisition.

The AccuQuote Acquisition was accounted for as a business combination in accordance with ASC 805, which requires the Company to record the assets acquired and liabilities assumed at fair value as of the acquisition date. The values attributed to intangible assets were based on valuations prepared using Level 3 inputs and assumptions in accordance with ASC 820.

Goodwill related to the AccuQuote Acquisition was assigned to the Life Solutions reportable segment. It represents the value that we expect to obtain from growth opportunities from our combined operations and is deductible for tax purposes.

The Company finalized the valuations related to the acquired assets and liabilities of AccuQuote, except for acquired receivables, accrued expenses, and other liabilities. Accordingly, these estimates are subject to change during the measurement period, which is up to one year from the AccuQuote Acquisition Date, as permitted under GAAP. Any potential adjustments could be material in relation to the values presented in the table below. No adjustments were made to the valuation for the period ended June 30, 2026.

The following table presents the fair value of the assets acquired and the liabilities assumed in connection with the business combination.

Intangible assets were comprised of the following:

On June 24, 2026, the Company issued 237,133 in common stock valued at $2,205,337 to the sellers of FCF Advisors, LLC to settle additional non-cash consideration recorded in other income (expense), net in the consolidated statements of operations and comprehensive income. This consideration is deductible for tax purposes.

4. REVENUES

Disaggregated Revenue—The disaggregation of the Company’s revenue by major sources is as follows:

Further disaggregation of life solutions revenue for the three and six months ended June 30, 2026:

Further disaggregation of life solutions revenue for the three and six months ended June 30, 2025:

Refer to Note 19, Related-Party Transactions for additional information related to revenue from related parties.

Asset Management Balances—The Company has the following asset management related balances recorded within the following accounts in the consolidated balance sheets:

Contract Balances—We had no contract assets at June 30, 2026 and December 31, 2025. The balances of contract liabilities arising from originated contracts with customers were as follows:

Revenue recognized during the six months ended June 30, 2026 that was included in our contract liabilities balance at December 31, 2025 was $169,184.

5. LIFE SETTLEMENT POLICIES

As of June 30, 2026, the Company held 622 life settlement policies which are accounted for using the fair value method. Aggregate face value of policies held at fair value was$682,635,716 as of June 30, 2026, with a corresponding fair value of $383,044,248. Differences between the face value and the net death benefit of certain policies is due to return of premium policies offset by loans on policies.

As of December 31, 2025, the Company held 804 life settlement policies, of which 801 were accounted for under the fair value method and 3 were accounted for using the investment method (cost, plus premiums paid). The aggregate face value of policies held at fair value was $1,063,747,674 as of December 31, 2025, with a corresponding fair value of $468,857,929. The aggregate face value of policies accounted for using the investment method was $1,625,000 as of December 31, 2025, with a corresponding carrying value of $918,305.

At June 30, 2026, the Company did not have any contractual restrictions on its ability to sell policies, including those held as collateral for the issuance of long-term debt. Refer to Note 14, Long-Term Debt for further details.

Life expectancy reflects the probable number of years remaining in the life of a class of persons determined statistically, at origination, affected by such factors as heredity, physical condition, nutrition, and occupation.

There were no significant changes in the Company’s expectation of the timing of the realization of revenues related to life settlement policies. Refer to Note 13, Fair Value Measurements for significant changes to the amounts disclosed related to life settlement policies.

Policies Carried at Fair Value:

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of June 30, 2026:

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of December 31, 2025:

Policies Accounted for Using the Investment Method:

During the second quarter of 2026, the Company sold its remaining life insurance policies accounted for using the investment method.

The following tables summarize the Company’s life insurance policies grouped by remaining life expectancy as of December 31, 2025:

Estimated premiums to be paid by the Company for its portfolio accounted for using the investment method during each of the five succeeding calendar years and thereafter as of December 31, 2025, are as follows:

The Company is required to pay premiums to keep its portion of life insurance policies in force. The estimated total future premium payments could increase or decrease significantly to the extent that actual mortalities of insureds differ from the estimated life expectancies.

6. PROPERTY AND EQUIPMENT—NET

Property and equipment balances are composed of the following:

Depreciation expense for the three months ended June 30, 2026 and 2025, was $138,392 and $87,716, respectively. Depreciation expense for the six months ended June 30, 2026 and 2025 was $248,425 and $154,542, respectively.

7. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill of $252,779,884 was recognized as a result of the business combinations, which represent the excess fair value of consideration over the fair value of the underlying net assets. Refer to Note 3, Business Combinations for further discussion.

The changes in the carrying amount of goodwill by reportable segments were as follows:

Intangible Assets Acquired comprised of the following:

Intangible assets and related accumulated amortization as of June 30, 2026 are as follows:

All intangible assets with finite useful lives are subject to amortization when they are available for their intended use. Amortization expense for definite-lived intangible assets was $3,824,053 and $4,667,987 for the three months ended June 30, 2026 and 2025, respectively. Amortization expense for definite-lived intangible assets was for $7,648,106 and $9,301,141 the six months ended June 30, 2026 and 2025, respectively.

Estimated future amortization of definite-lived intangible assets as of June 30, 2026 is as follows:

The Company also had other insignificant intangible assets of $1,083,017 and $79,059 as of June 30, 2026 and December 31, 2025, respectively.

8. AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE

Convertible Promissory Note—The Company holds investments in convertible promissory notes intwo separate unrelated entities (“Convertible Promissory Notes”) for an initial investment of $1,000,000 each. The first note bore an annual interest rate of 8% and matured on September 30, 2025. The unrelated entity that was due to repay the first convertible promissory note on September 30, 2025, stopped operations in August 2025. The Company does not believe that it will be able to recover its investment in this convertible note and related accrued interest, and has recorded an estimated 100% credit loss as of December 31, 2025, which includes the accrued interest. For the three months ended June 30, 2026, the Company received notification that the underlying entity was dissolved and accordingly, wrote off the remaining allowance.

The second note bears an annual interest rate of 5% and matures on October 15, 2028. During 2025, the Company acquired an additional interest in the second note of $2,000,000, for a total principal investment of $3,000,000.

The Company applies the available-for-sale method of accounting for its investments in the Convertible Promissory Notes, which are debt investments. The Convertible Promissory Notes do not qualify for either the held-to-maturity method due to the Convertible Promissory Notes’ conversion rights or the trading securities method because the Company holds the Convertible Promissory Notes as long-term investments. The Convertible Promissory Notes are measured at fair value at each reporting period-end. As of June 30, 2026 and December 31, 2025, fair value was $3,186,955 and $3,108,750, which includes accrued accumulated non-cash interest income of $432,530 and $354,325, respectively.

There wereno credit losses recognized for the three and six months ended June 30, 2026 and 2025.

The following tables provide a rollforward of the allowance for credit losses on available-for-sale securities for the three and six months ended June 30, 2026 and June 30, 2025:

Interest income recognized for the three months ended June 30, 2026 and 2025 was $39,345 and $44,125, respectively. Interest income recognized for the six months ended June 30, 2026 and 2025 was $78,205 and $81,559, respectively.

9. OTHER INVESTMENTS AND OTHER ASSETS

Other Investments—The Company owns convertible preferred and common stock infour entities as of June 30, 2026 and December 31, 2025, respectively. The value of the combined investment was $73,043,493 and $18,253,585 as of June 30, 2026 and December 31, 2025, respectively.

On May 27, 2026, the Company acquired a minority interest in Manning & Napier, Inc. (Manning & Napier). The investment of $53,050,419 in Manning & Napier was acquired by the Company through a combination of $39,639,750 cash and issued 1,438,913 common shares valued at $13,410,669 (non-cash consideration).

During the first quarter of 2026, the Company impaired an investment by $3,050,000 in one equity investment. During the second quarter of 2026, the Company received notification that the entity was sold to a third party. The Company has not adjusted the previous investment value as a result of this transaction. This impairment is recorded within Other income (expense), net in the consolidated statements of operations and comprehensive income.

During the first quarter of 2026, the Company recorded a $5,400,000 unrealized gain on one equity investment. The entity had a new capital raise during the period, increasing the underlying value of the investment. This capital raise was considered an orderly transaction in the same equity class as the initial investment, representing the intrinsic value in this investee’s business. The unrealized gain is recorded within Other income (expense), net in the consolidated statements of operations and comprehensive income.

During the first quarter of 2025, the Company acquired $3,000,000 convertible preferred stock and $5,000,000 of common stock intwo separate unrelated entities, respectively. The investment of $5,000,000 in common stock was purchased by the Company issuing series A convertible preferred stock. Refer to Note 15, Convertible Preferred Stock and Stockholders’ Equity for further information.

The Company holds a variable interest in 2025 LMA LLC (the “Securitized Entity”). The Company’s interest is subordinate to the Securitized Entity’s obligations to the Noteholders and other third-party creditors of the Securitized Entity. Any distributions to the Company are permitted only after satisfaction of those senior obligations. The Company has no right to require a distribution or redemption at any specified time or in any specified amount. The Company’s does not have a requirement to make additional contributions to the Securitized Entity beyond its initial capital contribution of $8,699,569. Refer to Note 10, Consolidation of Variable Entities for additional information.

The Company applies the measurement alternative for its investments in the common stock and convertible preferred stock because these investments are of an equity nature, and the Company does not have the ability to exercise significant influence over operating and financial policies of entities even in the event of conversion of preferred stock. Under the measurement alternative, the Company records the investment based on original cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the investee. The Company’s share of income or loss of such companies is not included in the Company’s consolidated statements of operations and comprehensive income. The Company tests its investments for impairment whenever circumstances indicate that the carrying value of the investment may not be recoverable.

Other Assets—The Company’s other assets are composed of the following:

During the second quarter of 2025, the Company recorded $1,750,000 in paid-in-kind lending fees in the Company’s consolidated statements of operations and comprehensive income that was included as non-cash consideration for the business acquisition of AccuQuote during the third quarter of 2025.

10. CONSOLIDATION OF VARIABLE INTEREST ENTITIES

The Company consolidates VIEs for which it is the primary beneficiary or VIEs for which it controls through a majority voting interest or other arrangement. See Note 2, Summary of Significant Accounting Policies of our 2025 Annual Report, for more information on how the Company evaluates an entity for consolidation in accordance with ASC 810, Consolidation (“ASC 810”).

The Company evaluated any entity in which it had a variable interest upon formation to determine whether the entity should be consolidated. The Company also evaluated the consolidation conclusion during each reconsideration event, such as changes in the governing documents or additional equity contributions to the entity. As of June 30, 2026, the Company’s consolidated VIE, LMA Income Series II LP, had total assets of $95,902,169 and liabilities of $38,968,493. As of December 31, 2025, the Company’s consolidated VIE, LMA Income Series II LP, had total assets and liabilities of $204,604,881 and $115,186,408. The Company did not deconsolidate any entities during the three and six months ended June 30, 2026, or during the year ended December 31, 2025. Refer to Note 14, Long-Term Debt for information related to the classification of assets and liabilities.

Carlisle manages collective portfolios of several Luxembourg alternative investment funds investing in life insurance policies. Carlisle is registered as an authorized alternative investment fund manager (“AIFM”) by Luxembourg’s Commission de Surveillance du Secteur Financier (“CSSF”). Carlisle managestwo funds andseven sub-funds. The funds and sub-funds managed by Carlisle are collectively referred to as the “Carlisle Funds”. The Company, through LMA, services the life insurance policies held by the Carlisle Funds. The Company concluded that it does not have a controlling financial interest in the Carlisle Funds pursuant to ASC 810-10. Accordingly, the Carlisle Funds are not consolidated in the Company's financial statements. The management fee arrangement is the only interest in the funds and the fees are customary and commensurate, therefore not providing a variable interest in the funds. As a result, all transactions between the Company and the Carlisle Funds, including life policy purchases and sales, servicing fees, and management fee receivables are classified as related party transactions. Refer to Note 4, Revenues and Note 19, Related-Party Transactions for additional information.

The Company established Abacus Enhanced Income Fixed LP, Abacus Enhanced Income Plus LP, Abacus Premiere Income Fixed LP, and Abacus Premiere Income Plus LP (collectively the “LP Funds”) and respective wholly owned general partner entities for the purpose of managing the LP Funds and servicing the policies invested by the LP Funds. The Company concluded that it does not have a controlling financial interest in the LP Funds pursuant to ASC 810-10. Accordingly, the LP Funds are not consolidated in the Company's financial statements. It was determined that the Company’s management has significant influence over the significant activities of the unconsolidated LP Funds through contract but does not have significant economic interest through equity or otherwise. As a result, all transactions between the

Company and the LP Funds, including life policy purchases and sales, servicing fees, and management fee receivables are classified as related party transactions. Refer to Note 4, Revenues and Note 19, Related-Party Transactions for additional information.

The Company holds a variable interest in 2025 LMA LLC (the “Securitized Entity”), a bankruptcy-remote special-purpose vehicle formed in October 2024 to hold a static pool of life settlement policies serving as collateral for Fixed Rate Structured Collateral-Backed Rated Notes issued to third-party investors. The Company’s variable interest consists of a Class B membership interest representing 100% of the non-voting residual economic interest in the Securitized Entity, with a carrying value of $8,243,074 at June 30, 2026, and a servicing arrangement under which the Company’s subsidiary services the collateral pool for market-rate compensation. The Class A member has all of the voting noneconomic interest in the Securitized Entity. The Class A member has substantive power to remove the Company as the servicer of the Securitized Entity. The Company is not the primary beneficiary of the Securitized Entity because the power to direct the activities of the Securitized Entity that most significantly impact its economic performance is held by the Class A member, which is an unaffiliated third party. Accordingly, the Securitized Entity is not consolidated in the Company’s financial statements. It was determined that while the Company’s management does not have the authority to establish policies or make significant decision impacting the Securitization Fund, it is serving as the servicer for the securitized static collateral pool under the direct supervision of an independent manager. As a result, life policy sales and fee revenue earned by LMA from the Securitized Entity is presented as related party servicing revenue in the Company's consolidated financial statements. The Company’s maximum exposure to loss in the Securitized Entity is limited to the $8,243,074 carrying value of its Class B membership interest provided as a structural credit support and does not represent a guarantee of the Notes. The Company has not provided, and is not obligated to provide, financial support to the Securitized Entity beyond its initial capital contribution of $8,699,569. Refer to Note 4, Revenues and Note 19, Related-Party Transactions for additional information.

11. SEGMENT REPORTING

The Company organizes its business into three reportable segments (1) Asset Management, (2) Life Solutions, and (3) Technology Services, which all generate revenue and incur expenses in different manners.

This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision maker (CODM), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting(“ASC 280”). The Company’s CODM is the President and Chief Executive Officer.

The Asset Management segment generates revenues by providing asset management services primarily to institutional investors alongside private clients investing in uncorrelated, and longevity-based assets, fixed-income replacement strategies and free cash flow based investment solutions. The revenue is determined by the asset management agreements with the individual investment vehicles. It also generates revenues by providing policy servicing activities to customers on a contract basis.

The Life Solutions segment generates revenues by buying, selling, and trading policies, and maintaining policies until receipt of death benefits. It also generates revenue by originating life insurance policy settlements between investors or buyers, and the sellers, who is often the original policy owner. The policies are purchased from owners or other providers through advisors, brokers, or directly through the owner. In addition, this segment generates insurance commission revenue from insurance carriers when the initial policy is sold to a policyholder and when the policyholder renews their policy.

The Technology Services segment generates revenues by providing real-time mortality verification, missing participant verification, and other services specific to the life insurance market services to customers on a contract basis.

The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review disaggregated assets by segment due to segment assets not being necessary for resource allocation decisions. The Company’s CODM periodically reviews cost of revenues by segment and treats it as a significant segment expense.

Revenue related to the Company’s reportable segments is as follows:

Cost of revenue (including stock-based compensation) related to the Company’s reportable segments is as follows:

Gross profit related to the Company’s reportable segments and the reconciliation of the total gross profit to net income is as follows:

Segment gross profit is defined as revenues less cost of sales, excluding depreciation and amortization. Expenses below the gross profit line are not allocated across operating segments, as they relate primarily to the overall management of the consolidated entity.

Revenue by geographic location:

12. COMMITMENTS AND CONTINGENCIES

Legal Proceedings—Occasionally, the Company may be subject to various proceedings such as lawsuits, disputes, claims, or challenges to life insurance policy acquisitions. The Company assesses these proceedings as they arise and accrues a liability when losses are probable and reasonably estimable. Although legal proceedings are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually, or taken together, have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows.

13. FAIR VALUE MEASUREMENTS

The Company determines fair value based on assumptions that market participants would use in pricing an asset or a liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

•Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level 2 inputs: Other than quoted prices in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

Recurring Fair Value Measurements—The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. The Company evaluates its estimates and judgments on an ongoing basis. The Company bases its estimates on historical experience and or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ materially from management’s estimates.

Life Settlement Policies— The Company accounts for owned life settlement policies using the fair value method or investment method (cost, plus premiums paid). The valuation method is chosen upon contract acquisition and is irrevocable.

The Company purchases policies from individuals or institutions, bundles those policies into tranches and sells to institutions, insurance carriers or funds that are attracting new investors. These initial purchases happen in the secondary market and the tertiary market. The secondary market is different from the principal or most advantageous market for purchasing policies and has less competition due to state-by-state licensing requirements. The Company leverages its broad policy base and extensive network, to offer individual policies that provide enhanced standalone value. This is achieved by precisely matching each policy’s risk profile to the specific needs of fund managers, institutions, insurance carriers, or funds as well as bundling secondary market originated policies with those originated in the tertiary market. This tailored approach attracts new investors by making it easier to identify and acquire policies that align with their investment objectives. This approach enhances realized gains because it increases market liquidity, broadens the investor base, and enables more efficient price discovery, which in turn supports higher policy values. Our historical realized gains on policies sold and matured, are materially consistent regardless of where policies are originated.

For policies carried at fair value, the valuation is based on Level 3 inputs that reflect our assumptions about what factors market participants would use in pricing the asset.

Prior to June 30, 2026, fair value was determined using a discounted cash flow (“DCF”) with Monte Carlo simulation to determine the fair value of each policy. The Company’s model uses a discount rate based on observed transaction pricing which is assessed against historical realized gains. The valuation process used significant assumptions, including survival probabilities and mortality assumptions informed by third-party life expectancy reports and a base mortality table (SOA 2015 VBT) adjusted via a mortality rating to match the risk-adjusted life expectancy, and market-calibrated discount rates.

The Monte Carlo simulation is applied to each policy to generate one million mortality scenario simulations which provides a comprehensive distribution of potential outcomes and calculates expected cash flows. In certain circumstances, if there is a verbal commitment to purchase a specific policy as of the balance sheet date, we use that transaction price as the fair value as we believe it is a more precise estimate of exit price than that determined using historical data. Further information about the inputs to the valuation are listed below:

•Risk-Based Discount Rate: Each policy's discount rate is determined based on its proprietary risk score (1-5 scale), with discount rates directly calibrated to observed transaction prices for policies in the same risk score category. Specifically, for each risk score category, the Company calculates the annualized internal rate of return ("IRR") implied by the relationship between modeled future cash flows (based on life expectancies) and the actual sales price observed in a dataset comprising over 1,000 executed policy transactions. These implied IRRs are aggregated on a weighted-average basis by risk score category to establish the discount rates applied in the Company's DCF/Monte Carlo valuation model. The dataset is updated periodically and adjusted for current market conditions based on observed institutional demand and contemporaneous trade activity. This transaction-based approach ensures that discount rates reflect actual transaction pricing rather than theoretical market rates.

•Risk Score: Each policy is assigned a proprietary risk score from 1 to 5, with 5 being higher risk, based on multiple factors including insured age, life expectancy, life expectancy extension ratio, survival probability at breakeven, maturity probability, and risk-adjusted return on capital metrics.

•Life expectancy: Survival curves are generated using the Society of Actuaries 2015 VBT mortality tables adjusted by mortality ratings to achieve risk-adjusted life expectancies. For policies with multiple insureds, joint survival probabilities are calculated using statistical modeling techniques.

Effective with the quarter ended June 30, 2026, fair value is determined using a market multiple approach based on historical market-observed returns on cost basis (the “Historical Return Method”). Prior period amounts have not been adjusted. Under this method, the fair value of each policy is determined by applying a risk-grade-specific weighted-average return percentage (i.e., market multiple) to the policy’s cost, which represents the purchase price plus all premiums paid from acquisition through the measurement date less any cash withdrawals or loans. The market-observed returns for each risk grade are derived from the Company’s transaction database of executed policy sales both to external parties and related party funds, as discussed further below.

The Company adopted the Historical Return Method as a change in valuation technique resulting in a measurement that is equally or more representative of fair value. This change is accounted for prospectively as a change in accounting estimate. The Historical Return Method more directly reflects market participant pricing behavior and reduces model complexity relative to the prior discounted cash flow approach.

Each policy is assigned a proprietary risk score from 1 to 5 (with 5 being higher risk), based on multiple factors including insured age, life expectancy, life expectancy extension ratio, survival probability at breakeven, maturity probability, and risk-adjusted return on capital metrics. The risk score determines the applicable risk-grade-specific weighted-average return percentage applied to policies to derive the estimated fair value.

Life expectancy reflects the probable number of years remaining in the life of a class of people determined statistically, affected by such factors as physical condition and age. Survival curves are generated using the Society of Actuaries 2015 VBT mortality tables adjusted by mortality ratings to achieve risk-adjusted life expectancies. For policies with multiple insureds, joint survival probabilities are calculated using statistical modeling techniques. Life expectancy is a determinant of risk score and therefore indirectly drives the applicable risk-grade-specific weighted-average return percentage. These inputs inform policy acquisition pricing for each life settlement policy, which establishes the cost basis of the assets, along with premiums paid to date.

The historical return experience is reviewed and calibrated each quarter based on current period sales experience, only if there is significant volume of transactions for the applicable risk grade in that period.

We consider sales to related funds to be transacted at arms’ length terms. The Company does not rely on related-party transactions in isolation. For related-party policy sales, the Company evaluates whether the transaction was executed at market terms using multiple corroborating indicators:

•Independent market checks where available, including unaffiliated third-party bids or indications of interest and third-party investor interest in the same or similar policies;

•Comparisons to contemporaneous third-party executed sales for policies with comparable characteristics, including Risk Score, life expectancy band, face value range, and other key policy attributes; and

•Parity of key non-price terms and customary execution and approval processes, including confirmation that the approval workflow applied to related-party transactions is consistent with that applied to arm’s-length transactions.

Additionally, for all sales, both to external parties and related party funds, the Company performs a quarterly lookback (e.g., retrospective) analysis to compare fair values against actual sales experience to validate the Company’s valuation methodology. The Company also obtains an external valuation analysis on a sample of policies held at the end of the quarter and for the entire portfolio of held policies at the end of the year.

In certain circumstances, if there is a commitment to purchase a specific policy as of the balance sheet date, we use that transaction price as the fair value as we believe it is a more precise estimate of the life settlement policy’s exit price.

The following table provides quantitative information about significant unobservable inputs for Level 3 fair value measurements as of June 30, 2026:

1 The Historical Return increased from 25% for policies held at December 31, 2025 reflecting recent experience.

The following table provides quantitative information about significant unobservable inputs for Level 3 fair value measurements as of December 31, 2025:

For life settlement policies carried using the investment method, the Company measures these at the cost of the policy plus premiums paid. During the three and six months ended June 30, 2026, the Company sold its remaining life insurance policies accounted for using the investment method. The policies accounted for using the investment method were $918,305 at December 31, 2025.

Historical Return Sensitivity—The fair value of life settlement policies is sensitive to changes in key unobservable inputs used to estimate the fair value of policies held by the Company. The historical return represents the actual sales price of policies less their corresponding total cost basis divided by their total cost basis. The sensitivity analysis is intended to illustrate the potential increase or decrease if policies sold for an average of 1% above or below their determined fair value. The fair value of the Company’s policies would increase when historical realized gains on life insurance policies sold increases. If the historical realized gains increased or decreased by one percentage point and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of June 30, 2026, would be as follows:

Credit Exposure to Insurance Companies—The following table provides information about the life insurance issuer concentrations that exceed 10% of total face value or 10% of total fair value of the Company’s life insurance policies as of June 30, 2026:

1 Carrier ratings are based on AM Best ratings.

The following table provides a rollforward of the fair value of life insurance policies for the three and six months ended June 30, 2026 and June 30, 2025:

1 Policies purchased represents life insurance policies purchased during the period.

2 Matured/sold policies represents life insurance policies held at the beginning of the period and those purchased during the period that also matured or were sold within the period.

The following table provides a reconciliation of revenue from life insurance policies held using the fair value method for the three and six months ended June 30, 2026 and June 30, 2025:

Long-Term Debt—See Note 14, Long-Term Debt for additional information on the secured borrowing. The Company has elected the fair value option in accounting for the long-term debt. Fair value is determined using Level 3 inputs.

Available-for-Sale Investment—The convertible promissory notes are classified as an available-for-sale securities. Available-for-sale investments are subsequently measured at fair value. Unrealized holding gains and losses are excluded from earnings and reported in other comprehensive income until realized. The Company determines fair value of its available-for-sale investments using unobservable inputs by considering the initial investment value, next round financing, and the likelihood of conversion or settlement based on the contractual terms in the agreement. As of June 30, 2026 and December 31, 2025, the Company evaluated the fair value of its Convertible Promissory Notes and determined that the fair value approximates the carrying value of $3,186,955 and $3,108,750, respectively. Refer to Note 8, Available-For-Sale Securities, at Fair Value for additional information.

Non-Recurring Fair Value Measurements

Other Investments— These investments are recorded at cost under the ASC 321 measurement alternative and are adjusted for impairment and observable price changes. Impairment is assessed qualitatively. As of June 30, 2026, and December 31, 2025, the Company determined that the carrying value of $73,043,493 and $18,253,585, respectively, approximates fair value. Refer to Note 9, Other Investments and Other Assets for additional information.

Financial Instruments Where Carrying Value Approximates Fair Value—The carrying value of cash and cash equivalents, accounts receivables, accounts receivable, related party, income tax receivables, accrued expenses, and other current liabilities approximates fair value due to the short-term nature of their maturities.

14. LONG-TERM DEBT

Outstanding principal balances of Long-term debt comprises of the following:

Fixed Rate Senior Unsecured Notes

The Company issued fixed rate senior unsecured notes (“Fixed Unsecured Notes”) between 2023 and 2025. The Fixed Unsecured Notes are based on a fixed interest rate of 9.875% to be paid in quarterly interest payments and mature on November 15, 2028. The Company has the option to redeem the Fixed Unsecured Notes in whole or in part at a price of 100% of the outstanding principal balance on or after February 15, 2027. The notes will be senior unsecured obligations of the Company and will rank equal in right of payment to all of the Company’s other senior unsecured indebtedness from time to time outstanding. As of June 30, 2026, the balance outstanding on the Fixed Unsecured Notes was $135,379,475.

Senior Secured Credit Facility

On December 10, 2024, the Company entered into a Senior Secured Credit Facility (the “SSCF”) providing for a senior secured term loan and a delayed draw term loan facility. The SSCF provides an initial term loan with an aggregate principal amount of $100,000,000 and delayed draw term loans (“DDTL Facility”) with an aggregate principal amount of up to $50,000,000. The SSCF and DDTL Facility bear interest at a rate equal to term SOFR plus a fixed rate of 5.25% per year (subject to a stepdown upon achievement of specified leverage and EBITDA metrics) and mature on December 10, 2030, subject to quarterly amortization. The SSCF and DDLT Facility is secured by substantially all of the assets of the Company and certain of its wholly-owned subsidiaries that have guaranteed the obligations under the SSCF, which excludes the assets of LMA Income Series II, LP. As of June 30, 2026, the outstanding principal balance under the SSCF and DDTL Facility was $148,125,000.

The SSCF contains customary affirmative and negative covenants, including financial maintenance covenants requiring the Company to maintain, a maximum Secured Leverage Ratio, a minimum Consolidated Fixed Charge Coverage Ratio, and a minimum Asset Coverage Ratio, each measured quarterly. The SSCF also restricts the payment of dividends and distributions and the ability of the Company to incur certain indebtedness, make certain investments, and dispose of assets, in each case subject to exceptions. The Company was in compliance with the financial maintenance covenants under the SSCF.

On June 29, 2026, the Company entered into the first amendment to the SSCF (the “SSCF Amendment”) which resulted in additional principal of $75,000,000. The SSCF Amendment bears interest and matures consistent with the terms of the SSCF and DDTL Facility. The SSCF Amendment is secured by substantially all of the assets of the Company and certain of its wholly-owned subsidiaries that have guaranteed the obligations under the SSCF Amendment, which excludes the assets of LMA Income Series II, LP. As of June 30, 2026, the SSCF Amendment was not funded. Refer to Refer to Note 22, Subsequent Events for additional information.

LMA Income Series II, LP and LMA Income Series II, GP LLC Secured Borrowing

On January 31, 2023, LMA Income Series II, GP, LLC, wholly owned and controlled by that LMA Series, LLC (“LMA”), formed a limited partnership, LMA Income Series II, LP (“LMAIS II”), and subsequently issued partnership interests to limited partners in a private placement offering. The initial term of the offering wasthree years ending on March 31, 2026 with the ability to extend fortwo additionalone-year periods ending on June 30, 2027 and on December 31, 2028. The limited partners receive annual dividends equal to the Preferred Return Amounts as follows: Capital commitment of less than $500,000,8.00%; between $500,000 and $1,000,000,8.25%; and over $1,000,000,8.50%. Thereafter,100% of the excess are to be paid to the General Partner.

It was determined that LMA is the primary beneficiary of LMAIS II and thus has fully consolidated the limited partnership in its consolidated financial statements.

The private placement offerings proceeds are used to acquire and actively manage a large and diversified portfolio of financial assets. LMA, through its consolidated subsidiaries, serves as the portfolio manager for the financial asset portfolio, which includes investment sourcing and monitoring. In this role, LMA has the unilateral ability to acquire and dispose of any of the above investments. As the partnership does not represent a business in accordance with ASC 810 and is a consolidated subsidiary that only holds financial assets, this represents a transfer subject to ASC 860-10. As the financial assets are not transferred outside the consolidated group, the proceeds from the offering shall be classified as a liability unless it meets the definition of a participating interest and the derecognition criteria in ASC 860 are met. The transferred interest did not meet the definition of a participating interest as LMA possesses the unilateral ability to direct the sale of the financial assets (ASC 860-10-50-6A(d)). In accordance with ASC 860-30-25-2, as the transfer of the financial assets did not meet the definition of a participating interest, LMA recognizes the proceeds received from the offering as a secured borrowing.

For the three months ended June 30, 2026 and 2025, LMA Income Series II GP LLC, through the LMAIS II, admitted $248,020 and $8,542,382 additional limited partnership interests and redeemed $111,144 and $250,000 existing limited partnership interests, respectively. For the six months ended June 30, 2026 and 2025, LMA Income Series II GP LLC, through the LMAIS II, admitted $992,387 and $24,732,253 additional limited partnership interests and redeemed $77,589,347 and $12,001,343 existing limited partnership interests, respectively.

LMA elected to account for the secured borrowing at fair value under the collateralized financing entity guidance within ASC 810-10-30. As of June 30, 2026, the fair value of the secured borrowing includes debt of $38,293,580 and other liabilities of $674,913, respectively. LMAIS II is secured by its assets, which includes cash of $2,943,636, accounts receivable of $7,796,838, life settlement policies of $83,978,243, and other assets of $87,444 totaling $94,806,161 as of June 30, 2026. The asset coverage ratio is 2.5 x as of June 30, 2026. The assets of LMA Income Series II, LP are restricted to the satisfaction of obligations of LMA Income Series II, LP and are not available to satisfy the general obligations of the Company. The creditors of LMA Income Series II, LP have recourse only to the assets of LMA Income Series II, LP and do not have recourse to the general credit of the Company.

Sponsor PIK Note

On June 30, 2023, in connection with the Merger Agreement, East Sponsor, LLC, a Delaware limited liability company (“Sponsor”), made an unsecured loan to the Company in the aggregate amount of $10,471,648 (the “Sponsor PIK Note”) with an interest rate of 12.0% per year compounding semi-annually. Accrued interest is payable in arrears quarterly starting on September 30, 2023 by adding it to the outstanding principal balance. As of June 30, 2026 and December 31, 2025, $4,510,859 and $3,642,551 in non-cash interest expense was added to the outstanding principal balance, respectively. The Sponsor PIK Note matures on June 30, 2028 and may be prepaid at any time in accordance with its terms without any premium or penalty. Non-cash Interest expense recognized for the three months ended June 30, 2026 and 2025 was $440,634 and $391,040, respectively. Non-cash Interest expense recognized for the six months ended June 30, 2026 and 2025 was $868,308 and $770,579, respectively.

Maturities of long-term debt (secured and unsecured) outstanding, including current maturities, excluding unamortized debt issuance costs, as of June 30, 2026 are as follows:

15. CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY

The Company is authorized to issue up to 200,000,000 shares of common stock, par value $0.0001 per share, and 1,000,000 shares of preferred stock, par value $0.0001 per share.5,000 shares of preferred stock are issued or outstanding. Holders of the Company’s common stock are entitled toone vote for each share. As of June 30, 2026, there were 107,220,874 shares of common stock issued, of which 97,090,784 are outstanding and 10,130,090 shares were held in treasury stock. As of December 31, 2025, there were 104,879,752 shares of common stock issued, of which 97,473,634 were outstanding and 7,406,118 shares were held in treasury stock. Holders of shares were entitled to receive, in the event of a liquidation, dissolution or winding up, ratably the assets available for distribution to the stockholders after payment of all liabilities.

Preferred Stock

On March 18, 2025, the Company’s Board of Directors authorized the issuance and the Company issued 5,000 shares of Series A Convertible Preferred Stock with a $5,000,000 aggregate liquidation preference in in a private placement transaction. The outstanding shares of Series A Convertible Preferred Stock are classified as mezzanine equity due to the holder redemption rights upon change of control, which was determined to be outside of the Company’s control. Key terms include:

•Dividends:7.5% annual rate on the $1,000 per share liquidation preference, payable in cash or in-kind.

•Ranking: Senior to common stock for dividends and liquidation rights.

•Redemption: Company may redeem after March 18, 2028 (3 years after issuance).

•Change of Control: Holders can require repurchase upon a Change of Control.

•Conversion: Initial conversion rate ofone hundred shares of common stock per $1,000 of liquidation preference, subject to anti-dilution adjustments.

•Maturity: No stated maturity; remains outstanding indefinitely unless redeemed, repurchased, or converted.

•Voting Rights: Holders generally vote on an as-converted basis with common stock.

Stock Repurchase Program

Occasionally, the Company’s Board of Directors approves stock repurchase programs. Stock repurchases may be made through open market transactions, block trades, accelerated stock repurchases, privately negotiated transactions, derivative transactions or otherwise, certain of which may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in compliance with applicable state and federal securities laws. The timing, as well as the number and value of stock repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including our assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company's debt and other agreements, applicable legal requirements, the nature of other investment opportunities available to the Company, and other considerations. The Company is not obligated to purchase any stock under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand and expected free cash flow to be generated in the future. Acquired shares of our common stock are held as treasury stock carried at cost in our consolidated financial statements. In connection with the repurchase program, the Company is authorized to adopt one of more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

On December 11, 2023, the Company’s Board of Directors authorized a stock repurchase program under which the Company may purchase shares of our common stock for an aggregate purchase price not to exceed $15,000,000 over a period of up to 18 months.

On April 9, 2025, on June 5, 2025, November 6, 2025, and January 30, 2026 the Company’s Board of Directors authorized the Company to repurchase up to an additional $15,000,000, $20,000,000, $10,000,000, and $20,000,000, respectively, expiring in May 2027.

As of June 30, 2026, there wereno remaining available funds for repurchase under the stock repurchase programs.

The following tables summarize stock repurchase activity under our stock repurchase program for the periods ended June 30, 2026 and 2025:

16. STOCK-BASED COMPENSATION

Long-term Incentive Plan

The Company awards restricted stock units (“RSUs”) to executives, employees, and directors as part of the Company’s Long-Term Equity Compensation Incentive Plan (“Long-term Incentive Plan” or “LTIP”). This plan provides that equity-based awards, including RSUs, performance stock units (“PSU”), stock options, and unrestricted shares of common stock, may be granted to officers, employees, and directors of the Company. The Company has granted RSUs that provide the right to receive, subject to service based vesting conditions, shares of common stock pursuant to the Long-term Incentive Plan. The expense associated with these awards will be based on the fair value of the stock as of the grant date, where the Company elected to use the straight line recognition over the vesting period, which is generally three years. Under the approved Long-term Incentive Plan, generally, each RSU entitles the unit holder toone share of common stock when the restriction expires. After satisfying the above vesting conditions, the participants will be fully entitled to their shares of common stock. Shares that are issued upon vesting are newly issued shares from the Long-term Incentive Plan and are not issued from treasury stock. Forfeitures are recorded as they occur and are made available for subsequent awards.

The following table shows a summary of the unvested restricted stock under the Long-Term Incentive Plan as of June 30, 2026 as well as activity during the year:

After the approved amendment to the Long-Term Incentive Plan on June 3, 2026,15,251,542 shares of common stock remained available for issuance.

Black-Scholes option-pricing model assumptions and the resulting fair value of options on grant date are presented in the following table:

At the time of the award, the Company did not intend to pay dividends for the foreseeable future. The expected volatility reflects the Company’s past daily common stock price volatility. The risk-free interest rate is derived using the term matched U.S. Treasury constant maturity yields. The expected stock option life is based on the average of the average time to vest and the remaining contractual term.

The following table shows the status of, and changes in, common stock options:

Summary of Stock-Based Compensation Expense

Compensation costs recognized for RSUs and stock options were $6,882,980 and $3,486,829 for the three months ended June 30, 2026 and 2025, respectively. Compensation costs recognized for RSUs and stock options were $13,226,381 and $5,842,224 for the six months ended June 30, 2026 and 2025, respectively.

For the three months ended June 30, 2026 and 2025, $907,921 and $485,320 of the compensation costs was recorded in cost of revenue (including stock-based compensation) in the consolidated statements of operations and comprehensive income, respectively. For the three months ended June 30, 2026 and 2025, $5,975,059 and $3,001,509 of the compensation costs is recorded in general and administrative expense (including stock-based compensation) in the consolidated statements of operations and comprehensive income, respectively.

For the six months ended June 30, 2026 and 2025, $1,579,590 and $970,639 of the compensation costs was recorded in cost of revenue (including stock-based compensation) in the consolidated statements of operations and comprehensive income, respectively. For the six months ended June 30, 2026 and 2025, $11,646,791 and $4,871,585 of the compensation costs is recorded in general and administrative expense (including stock-based compensation) in the consolidated statements of operations and comprehensive income, respectively.

As of June 30, 2026, there was $41,806,079 of unrecognized compensation costs related to RSUs and stock options which the Company expects to recognize over the next 2.3 years.

17. EMPLOYEE BENEFIT PLAN

The Company has a defined contribution plan in the U.S. intended to qualify under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer up to 100% of their annual compensation on a pretax basis. The Company matches up to a maximum of 4% of eligible employee contributions and may choose to make additional discretionary contributions to the 401(k) Plan. For the three months ended June 30, 2026 and 2025, the Company recognized expenses related to the 401(k) Plan amounting to $165,788 and $197,685, respectively. For the six months ended June 30, and 2025, the Company recognized expenses related to the 401(k) Plan amounting to $567,226 and $315,808, respectively. For the three and six months ended June 30, 2026 and 2025, the Company did not make discretionary contributions.

18. INCOME TAXES

For the three months ended June 30, 2026 and 2025, the Company recorded a provision for income taxes of $4,348,850 and $4,069,971, respectively. The effective tax rate is 39.6% for the three months ended June 30, 2026 primarily driven by the impact of various permanent differences with the larger of these permanent differences being related to compensation related expenses partially offset by decrease in statutory tax provision due to an increase in taxable income. The effective rate for the three months ended June 30, 2025 was 18.8% primarily driven by the increase in taxable income.

For the six months ended June 30, 2026 and 2025, the Company recorded a provision for income taxes of $8,139,664 and $6,404,056, respectively. The effective tax rate is 36.9% for the six months ended June 30, 2026 primarily driven by the impact of various permanent differences with the larger of these permanent differences being related to compensation related expenses partially offset by decrease in statutory tax provision due to an increase in taxable income. The effective rate for the six months ended June 30, 2025 was 21.8% primarily driven by the increase in taxable income.

The Company didnot have any unrecognized tax benefits relating to uncertain tax positions as of June 30, 2026, and December 31, 2025, and didnot recognize any interest or penalties related to uncertain tax positions as of June 30, 2026, and December 31, 2025. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the consolidated statements of operations and comprehensive income during 2026.

19. RELATED-PARTY TRANSACTIONS

The Sponsor PIK Note payable of $14,982,507 is recorded as a related-party transaction given the relationship between the Sponsor and the Company. Refer to Note 14, Long-Term Debt for more information.

Life policy sales to the Carlisle Funds, LP Funds, and the Securitized Entity are considered related party activity. Life policy purchases from the Carlisle or LP Funds are also considered related party activity. In addition, management fees, performance fees, servicing fees and certain expense reimbursement from the Carlisle Funds, LP Funds, and Securitized Entity are considered related party transactions. The servicing fee charged to the Carlisle Funds, LP Funds, and Securitized Entity is $1,000 per policy per year, $996 per policy per year, and 100 basis points of the value of the collateral pool per year, respectively. The Company charges a management fee to the Carlisle and LP funds that range between fifty andtwo hundred basis points of AUM divided by 12.

As of June 30, 2026, the Company had $10,127,137 and $15,187,416 current and noncurrent related party receivables due from the related party funds, respectively. As of December 31, 2025, the Company had $9,320,103 and $14,800,140 current and noncurrent related party receivables due from related party funds, respectively. As of June 30, 2026, the current related-party receivable balance was mainly comprised of $6,653,641 from the Carlisle Funds related to management fees. As of December 31, 2025, the current related-party receivable balance was mainly comprised of $6,718,903 and $2,055,170 from the Carlisle Funds related to management fees and policy sales, respectively. All noncurrent related party receivables are due from the Carlisle Funds.

As of June 30, 2026, the Company had $21,473,912 related party payables due to related party funds. The Company hadno related party payables as of December 31, 2025. The related party payables were related to policy purchases from the Carlisle Funds.

The Company may at times purchase life policies with different risk characteristics and risk profiles from the Carlisle Funds or LP Funds. For the three and six months ended June 30, 2026, the Company purchased life settlement policies for $21,250,000 and $22,075,366, respectively, from the Carlisle Funds. For the three and six months ended June 30, 2025, the Company paid $2,535,875 to acquire policies from the Carlisle Funds. For the three and six months ended June 30, 2026 and 2025, the Company did not acquire policies from the LP Funds.

For the three and six months ended June 30, 2026 and 2025, the Company recognized asset management fees from the related party funds as follows:

For the three and six months ended June 30, 2026 and 2025, the Company recognized net revenue from life insurance policy sales from the related party funds as follows:

For the three months ended June 30, 2026 and 2025, the Company recognized $11,504,800 and $16,175,271 in net revenue from life policy sales to the Carlisle and LP Funds, respectively. The $11,504,800 revenue for the three months ended June 30, 2026 was a result of realized gains on sales of $56,113,827, offset by the reversals of prior period unrealized gains of $42,257,443 and premiums paid during the period of $2,351,584. The revenue of $16,175,271 for the three months ended June 30, 2025 was a result of realized gains on sales of $53,687,040, offset by the reversals of prior period unrealized gains of $35,975,318 and premiums paid during the period of $1,536,451.

For the six months ended June 30, 2026 and 2025, the Company recognized $28,055,421 and $17,076,617 in net revenue from life policy sales to the Carlisle and LP Funds, respectively. The $28,055,421 in net revenue for the six months ended June 30, 2026 was a result of realized gains on sales of $144,045,473, offset by the reversals of prior period unrealized gains of $109,894,860 and premiums paid during the period of $6,095,192. The revenue of $17,076,617 for the six months ended June 30, 2025 was a result of realized gains on sales of $56,153,818, offset by the reversals of prior period unrealized gains of $37,471,037 and premiums paid during the period of $1,606,164.

For the three months ended June 30, 2026 and 2025, the Company recognized $826,350 and $454,065 in servicing revenue from related parties, respectively. For the six months ended June 30, 2026 and 2025, the Company recognized $1,586,587 and $780,552 in servicing revenue from related parties, respectively.

Refer to Note 10, Consolidation of Variable Interests for additional information on consolidation considerations for the Carlisle Funds, LP Funds, and Securitization Entity. Refer to Note 2, Summary of Significant Accounting Policies within the 2025 Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional information discussing the Company’s revenue recognition polices for transactions with the Carlisle Funds, LP Funds, and Securitization Entity.

20. LEASES

In February 2026, the Company entered into a new lease for office space (“2026 Office Lease”). The Company recognized a lease right of use asset and lease liability related to the 2026 Office Lease increasing the Company’s right of use asset and liability by $6,123,131. The lease terminates at the end of December 2030 with no substantive option to extend or terminate the 2026 Office Lease beyond the term of the lease.

During the second quarter of 2026, the Company entered into equipment leases (“Equipment Leases”). The Company recognized a lease right of use asset and lease liability related to the Equipment Leases increasing the Company’s right of use asset and liability by $2,707,313. The leases terminate in March 2029 with no substantive option to extend or terminate the Equipment Leases beyond the term of the leases.

The Company’s right-of-use assets and lease liabilities for its operating lease consisted of the following amounts:

The Company recognizes lease expense for its operating leases within general, administrative, and other expenses on the Company’s consolidated statements of operations and comprehensive income. The Company’s lease expense for the periods presented consisted of the following:

The following table shows supplemental cash flow information related to lease activities for the periods presented:

The table below shows a weighted-average analysis for lease terms and discount rates for all operating leases for the periods presented:

Future minimum noncancellable lease payments under the Company’s operating leases on an undiscounted basis reconciled to the respective lease liability at June 30, 2026 are as follows:

21. EARNINGS PER SHARE

Basic earnings per share represents net income attributable to stockholders divided by the weighted average number of common stock outstanding during the reported period. Treasury stock is excluded from the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock. For diluted earnings per share, the dilutive effect of outstanding awards is reflected by application of the treasury stock method and convertible securities by application of the if converted method, as applicable.

The table below illustrates the reconciliation of the earnings and number of shares used in our calculation of basic earnings per share attributable to common stockholders:

The table below illustrates the reconciliation of the earnings or loss and number of shares used in our calculation of diluted earnings or loss per share attributable to common stockholders:

The following potentially dilutive outstanding securities were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive for the periods presented, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period:

22. SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions from the consolidated balance sheet date through the date at which the consolidated financial statements were issued. Based upon the review, management did not identify any subsequent events that would have required adjustment or disclosure in the financial statements other than what is disclosed below:

On July 6, 2026, the Company received the funding related to the SSCF Amendment.

On July 13 2026, the ABX Longevity Growth and Income Fund was declared effective.