Abacus Life Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
ABX$8.78+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-12.
0001814287-24-000051
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001814287-24-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 189 previous paragraphs and 185 current paragraphs.
135 unchanged; 45 reworded; 4 added; 7 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 62 previous and 61 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Portfolio servicing revenue increased by $74,164 or 72.2%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase is mainly due to an increase in policies serviced for external funds.
Current report
Origination revenue decreased by ($651,170) from $1,715,700, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease is mainly to due to Abacus Settlements focusing on procuring policies for the Company. The origination revenue is related to Abacus Settlements, which was acquired on June 30, 2023.
Current report
Cost of revenues (excluding depreciation and amortization) decreased by $(1,169,425), or (34.8)%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The decrease in cost of revenues is primarily due to $(1,345,873) decrease in consulting charges related to active management activity partially offset by an increase in non-cash stock-based compensation expense.
Current report
Other income increased by $134,175, or 8573.5%, for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase is primarily related to other income activities.
Removed paragraphs (7)
Previous report
Portfolio servicing revenue increased by $59,481 or 240.5%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase is mainly due to an increase in policies serviced.
Previous report
The Company did not generate related party origination revenue from Nova Funds for thethree orsix months ended June 30, 2024 and 2023. The related party origination revenue is related to Abacus, which was acquired on June 30, 2023.
Previous report
Origination revenue increased to $1,857,457 from$—, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. The origination revenue is related to Abacus, which was acquired on June 30, 2023.
Previous report
Related party cost of revenue of $1,453 is associated with a third party underwriting reimbursement for related party origination activity, which is now included within the consolidated financial statements for the Company subsequent to the acquisition of Abacus that took place on June 30, 2023.
Previous report
Related party cost of revenue of $2,138 is associated with a third party underwriting reimbursement for related party origination activity, which is now included within the consolidated financial statements for the Company subsequent to the acquisition of Abacus that took place on June 30, 2023.
Previous report
Other income (expense) decreased by $164,093, or 757.9%, for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. The decrease is primarily related to other expense activities.
Previous report
During thesix months ended June 30, 2024, our operating activities used$64,542,510 of net cash as compared to $38,364,171 of net cash used from operating activities during thesix months ended June 30, 2023. Theincrease of
Reworded paragraphs (45)
Previous wording
Related party servicing revenue decreased by $208,959, or 63.4%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The decrease is mainly due to a decrease in policies serviced for the Nova Funds.
Current wording
Related party servicing revenue decreased by $112,360, or 66.5%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The decrease is mainly due to a decrease in policies serviced for the Nova Funds.
Previous wording
Related party servicing revenue decreased by $237,221, or 43.7%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The decrease is mainly due to a decrease in policies serviced for the Nova Funds.
Current wording
Related party servicing revenue decreased by $349,581, or 49.1%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The decrease is mainly due to a decrease in policies serviced for the Nova Funds.
Previous wording
Portfolio servicing revenue increased by $69,987 or 149.0%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase is mainly due to an increase in policies serviced for external funds.
Current wording
Portfolio servicing revenue increased by $4,177 or 7.5%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The increase is mainly due to an increase in policies serviced for external funds.
Previous wording
Total active management revenue incre ased by $15,989,358, or 145.0%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase is mainly due to a net increase of $24,245,464 related to policies accounted for under the fair value method (comprised of $12,773,659 realized gains, $13,924,426 unrealized gains and offset by $(2,452,621) in premiums paid) and offset by a decrease of $(8,256,106) in trading activity related to policies accounted for under the investment method.
Current wording
Total active management revenue incre ased by $8,041,431, or 42.5%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The increase is mainly due to a net increase of $9,789,466 related to policies accounted for under the fair value method (comprised of $7,092,164 realized gains, $5,858,258 unrealized gains and offset by ($3,160,956) in premiums paid) and offset by a decrease of$(1,748,035) in trading activity related to policies accounted for under the investment method.
Previous wording
The aggregate face value of policies accounted for using the investment method is $3,725,000 as of June 30, 2024, with a corresponding carrying value of $1,140,497. Additional information regarding policies accounted for under the investment method is as follows:
Current wording
The aggregate face value of policies accounted for using the investment method is $2,225,000 as of September 30, 2024, with a corresponding carrying value of $1,071,172. Additional information regarding policies accounted for under the investment method is as follows:
Previous wording
The aggregate face value of policies held at fair value is $744,204,632 as of June 30, 2024 with a corresponding fair value of $207,571,413. Additional information regarding policies accounted for under the fair value method is as follows:
Current wording
The aggregate face value of policies held at fair value is $976,761,831 as of September 30, 2024 with a corresponding fair value of $273,249,493. Additional information regarding policies accounted for under the fair value method is as follows:
Previous wording
Total active management revenue incre ased by $25,815,839, or 123.0%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase is mainly due to a net increase of $35,005,006 related to policies accounted for under the fair value method (comprised of $21,650,515 realized gains, $18,022,115 unrealized gains and offset by $(4,667,624) in premiums paid) and $6,959,273 fee-based revenue, offset by a decrease of $(16,148,440) in trading activity related to policies accounted for under the investment method.
Current wording
Total active management revenue incre ased by $33,857,270, or 84.8%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase is mainly due to a net increase of $44,794,472 related to policies accounted for under the fair value method (comprised of $28,742,680 realized gains, $23,880,373 unrealized gains and offset by ($7,828,581) in premiums paid) and $6,959,273 fee-based revenue, offset by a decrease of ($17,896,475) in trading activity related to policies accounted for under the investment method.
Previous wording
Origination revenue increased to $3,329,707 from $—, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The origination revenue is related to Abacus, which was acquired on June 30, 2023.
Current wording
Origination revenue increased by$2,678,537 from $1,715,700, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The origination revenue is related to Abacus Settlements, which was acquired on June 30, 2023.
Previous wording
Cost of revenues (excluding depreciation and amortization) increased by $1,768,681, or 181.7%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase in cost of revenues is primarily due to increase in payroll expense related to growth in active management activity, $1,722,445 increase of commissions for origination activity related to the increase in insurance policy purchase activity during 2024, and $322,606 non-cash stock-based compensation expense.
Current wording
Cost of revenues (excluding depreciation and amortization) increased by $2,829,918, or 58.7%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase in cost of revenues is primarily due to $1,954,072 increase in life expectancy fees, $1,417,790 increase of commissions for origination activity related to the increase in insurance policy purchase activity during 2024, and $967,820 non-cash stock-based compensation expense, partially offset by $(1,361,075) decrease in consulting charges related to active management activity.
Previous wording
Gross profit increased by $15,927,203, or 153.1%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase in gross profit is primarily due to an increase in active management revenue driven by an increase in policies purchased.
Current wording
Gross profit increased by $8,204,537, or 46.2%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The increase in gross profit is primarily due to an increase in active management revenue driven by an increase in policies purchased.
Previous wording
Gross profit increased by $24,976,831, or 124.1%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase in gross profit is primarily due to an increase in active management revenue driven by an increase in policies purchased.
Current wording
Gross profit increased by $33,181,368, or 87.6%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase in gross profit is primarily due to an increase in active management revenue driven by an increase in policies purchased.
Previous wording
Sales and marketing expenses increased by $1,868,960 or 273.3%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase was primarily related to an increase in advertising costs to support our origination and active management growth strategy.
Current wording
Sales and marketing expenses increased by $465,043 or 27.3%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The increase was primarily related to an increase in advertising costs to support our origination and active management growth strategy.
Previous wording
Sales and marketing expenses increased by $3,069,900 or 217.3%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase was primarily related to an increase in advertising costs to support our origination and active management growth strategy.
Current wording
Sales and marketing expenses increased by $3,534,943 or 113.4%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase was primarily related to an increase in advertising costs to support our origination and active management growth strategy.
Previous wording
General, administrative, and other increased by $24,632,412, or 1,932.8%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase in general, administrative, and other expenses is primarily related to non-cash stock based compensation expense of $11,613,617, payroll expense of $7,475,407, accounting and auditing fees of $2,538,027 legal and professional fees of $510,338, and an increase in other expenses general and administrative expenses of $2,495,023 to support the Company’s public company compliance costs post the Merger.
Current wording
General, administrative, and other increased by $5,650,552, or 57.4%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The increase in general, administrative, and other expenses is primarily related to non-cash stock based compensation expense of $1,510,139, payroll expense of $2,703,485, and accounting and auditing fees of $221,873, legal and professional fees of $1,700,871, partially offset by a decrease in other expenses general and administrative expenses of ($485,816) to support the Company’s public company compliance costs post the Merger.
Previous wording
General, administrative, and other increased by $13,975,805, or 2,419.9%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase in general, administrative, and other expenses is primarily related to non-cash stock based compensation expense of $5,842,853, payroll expense of $4,581,684, accounting and auditing fees of $1,919,467 legal and professional fees of $412,007, and an increase in other expenses general and administrative expenses of $1,219,794 to support the Company’s public company compliance costs post the Merger.
Current wording
General, administrative, and other increased by $30,282,964, or 272.5%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase in general, administrative, and other expenses is primarily related to non-cash stock based compensation expense of $13,123,756, payroll expense of $10,178,892, accounting and auditing fees of $2,759,900, legal and professional fees of $2,211,209, and an increase in other expenses general and administrative expenses of $2,009,207 to support the Company’s public company compliance costs post the Merger.
Previous wording
The increase of $1,749,354, or 159,321.9%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023 in depreciation and amortization expense is primarily related to the amortization of acquired Abacus intangible assets.
Current wording
The increase of $50,426, or 3.0%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023 in depreciation and amortization expense is primarily related to the amortization of acquired Abacus intangible assets.
Previous wording
The increase of $3,430,365, or 160,222.6%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023 in depreciation and amortization expense is primarily related to the amortization of acquired Abacus intangible assets.
Current wording
The increase of $3,480,791, or 205.1%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023 in depreciation and amortization expense is primarily related to the amortization of acquired Abacus intangible assets.
Previous wording
Unrealized loss on investments increased by $1,035,418 or 153.9% for thethree months ended June 30, 2024, compared to thethree months ended June 30, 2023. The primary cause of this increase pertains to the change in fair value of S&P 500 options.
Current wording
Unrealized loss on investments decreased by $724,477 or 236.1% for thethree months ended September 30, 2024, compared to thethree months ended September 30, 2023. The primary cause of this decrease pertains to the change in fair value of S&P 500 options.
Previous wording
Unrealized gain on investments increased by $4,328 or 0.5% for thesix months ended June 30, 2024, compared to thesix months ended June 30, 2023. The primary cause of this increase pertains to the change in fair value of S&P 500 options.
Current wording
Unrealized gain on investments increased by $728,805 or 148.3% for thenine months ended September 30, 2024, compared to thenine months ended September 30, 2023. The primary cause of this increase pertains to the change in fair value of S&P 500 options.
Previous wording
Realized gain on investments increased by $856,744 or NM for thethree months ended June 30, 2024, compared to thethree months ended June 30, 2023. The primary cause of this increase pertains to the sale of S&P 500 options related to LMATT Growth 2.2024 and LMATT Growth and Income 1.2026 market-indexed notes as discussed in Note 22, Subsequent Events.
Current wording
Realized gain on investments increased by $856,744 or NM for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The increase is related to the sale of S&P 500 options in connection with the LMATT Growth 2.2024 and LMATT Growth and Income 1.2026 market-indexed notes paid off during the quarter.
Previous wording
Loss in the fair value of debt decreased by $245,766, or 17.0% for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The increase is primarily attributable to changes in the risk-free fair value of our market-indexed notes.
Current wording
Loss in the fair value of debt increased by $2,213,034, or 105.9% for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The increase is primarily attributable to changes in the risk-free fair value of our market-indexed notes.
Previous wording
Loss in the fair value of debt increased by $1,513,428, or 63.1% for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase is primarily attributable to changes in the risk-free fair value of our market-indexed notes.
Current wording
Loss in the fair value of debt increased by $3,726,462, or 1202.6% for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The increase is primarily attributable to changes in the risk-free fair value of our market-indexed notes.
Previous wording
Other income (expense) decreased by $73,869, or 60.7%, for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. The decrease is primarily related to other expense activities.
Current wording
Other expense increased by $29,918, or 148.9%, for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. The decrease is primarily related to other expense activities.
Previous wording
Interest expense was $4,529,187 for thethree months ended June 30, 2024, compared to $584,075 for thethree months ended June 30, 2023. The increase in interest expense is primarily related to the Fixed Rate Senior Unsecured Notes interest expense of $1,480,661, the LMA Income Series II LP interest expense of $838,944, the LMA Income Series LP interest expense of $12,419, the SPV Purchase and Sale Note non-cash interest expense $828,494, and the Sponsor PIK Note non-cash interest of $347,028.
Current wording
Interest expense was $4,218,314 for thethree months ended September 30, 2024, compared to $2,679,237 for thethree months ended September 30, 2023. The increase in interest expense is primarily related to the Fixed Rate Senior Unsecured Notes interest expense of $1,622,890, the LMA Income Series II LP interest expense of $1,068,012, the LMA Income Series LP interest expense of $358,778, the Sponsor PIK Note non-cash interest of $357,543, and the SPV Purchase and Sale Note non-cash interest expense $19,080, partially offset by decrease of$(1,873,522) related to the Owl Rock Credit Facility paid off in 2023.
Previous wording
Interest income was 639,906, for the three months ended June 30, 2024, compared to $— for the three months ended June 30, 2023. The increase in interest income is related to interest earned on our bank deposits.
Current wording
Interest income was 609,496, for the three months ended September 30, 2024, compared to $63,826 for the three months ended September 30, 2023. The increase in interest income is related to interest earned on our bank deposits.
Previous wording
(Loss) gain on change in fair value of warrant liability was $(667,500) for the three months ended June 30, 2024, compared to $— for the three months ended June 30, 2023. The change is primarily attributable to the change in the price for the public warrants, which is a determining factor for measuring the fair value of the private warrants.
Current wording
Loss on change in fair value of warrant liability was$(8,766,500) for the three months ended September 30, 2024, compared to$(943,400) for the three months ended September 30, 2023. The change is primarily attributable to the change in the price for the public warrants, which is a determining factor for measuring the fair value of the private warrants.
Previous wording
Interest expense was $8,199,632 for thesix months ended June 30, 2024, compared to $941,458 for thesix months ended June 30, 2023. The increase in interest expense is primarily related to the Fixed Rate Senior Unsecured Notes interest expense of$2,676,521, the LMA Income Series II LP interest expense of$1,797,836, the LMA Income Series LP interest expense of$18,613, the SPV Purchase and Sale Note non-cash interest expense$1,632,322, and the Sponsor PIK Note non-cash interest of$683,850.
Current wording
Interest expense was $12,417,946 for thenine months ended September 30, 2024, compared to $3,620,695 for thenine months ended September 30, 2023. The increase in interest expense is primarily related to the Fixed Rate Senior Unsecured Notes interest expense of$2,541,654, the LMA Income Series II LP interest expense of$2,892,618, the LMA Income Series LP interest expense of$377,391, the SPV Purchase and Sale Note non-cash interest expense$3,189,406, and the Sponsor PIK Note non-cash interest of$1,685,610, partially offset by decrease of$(1,873,522) related to the Owl Rock Credit Facility paid off in 2023.
Previous wording
Interest income increased by $1,061,332, for the six months ended June 30, 2024, compared to $7,457 for the six months ended June 30, 2023. The increase in interest income is related to interest earned on our bank deposits.
Current wording
Interest income was $1,670,828, for the nine months ended September 30, 2024, compared to $71,283 for the nine months ended September 30, 2023. The increase in interest income is related to interest earned on our bank deposits.
Previous wording
(Loss) gain on change in fair value of warrant liability was$279,460 for the six months ended June 30, 2024, compared to $— for the six months ended June 30, 2023. The change is primarily attributable to the change in the price for the public warrants, which is a determining factor for measuring the fair value of the private warrants.
Current wording
Loss on change in fair value of warrant liability was$(8,487,040) for the nine months ended September 30, 2024, compared to$(943,400) for the nine months ended September 30, 2023. The change is primarily attributable to the change in the price for the public warrants, which is a determining factor for measuring the fair value of the private warrants.
Previous wording
Income tax expense increased by $573,139, or 48.4% for thethree months ended June 30, 2024, compared to the three months ended June 30, 2023. Our effective income tax rate for thethree months ended June 30, 2024 and three months June 30, 2023, was 73.0% and 15.0%, respectively. The increase was primarily driven by the portion of the stock-based compensation expense deduction limited by IRC Section 162(m).
Current wording
Income tax expense decreased by $1,960,683, or 114.6% for thethree months ended September 30, 2024, compared to the three months ended September 30, 2023. Our effective income tax rate for thethree months ended September 30, 2024 and three months September 30, 2023, was 4.5% and 61.9%, respectively. The decrease was primarily driven by the decrease in income before income taxes partially offset by the portion of the stock-based compensation expense deduction limited by IRC Section 162(m).
Previous wording
Income tax expense increased by $2,403,119, or 455.0% for thesix months ended June 30, 2024, compared to thesix months ended June 30, 2023. Our effective income tax rate for thesix months ended June 30, 2024 and for thesix months June 30, 2023, was 127.0% and 3.5%, respectively. The increase was primarily driven by the portion of the stock-based compensation expense deduction limited by IRC Section 162(m).
Current wording
Income tax expense increased by $442,436, or 19.8% for thenine months ended September 30, 2024, compared to thenine months ended September 30, 2023. Our effective income tax rate for thenine months ended September 30, 2024 and for thenine months September 30, 2023, was(83.1)% and 12.7%, respectively. The increase was primarily driven by the portion of the stock-based compensation expense deduction limited by IRC Section 162(m).
Previous wording
Total revenue for the portfolio servicing segment decreased by $149,478, or 42.2%, for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. The decrease in portfolio servicing revenue is primarily attributable to a decrease in policies serviced.
Current wording
Total revenue for the portfolio servicing segment decreased by $108,183, or 48.2%, for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. The decrease in portfolio servicing revenue is primarily attributable to a decrease in policies serviced.
Previous wording
Gross profit from our portfolio servicing segment increased by $112,922 or (147.2)%, for thethree months ended June 30, 2024, compared to thethree months ended June 30, 2023, primarily due to decrease in servicing costs.
Current wording
Gross loss from our portfolio servicing segment decreased by $340,938 or (54.5)%, for thethree months ended September 30, 2024, compared to thethree months ended September 30, 2023, primarily due to decrease in servicing costs.
Previous wording
Total revenue for the portfolio servicing segment decreased by $167,234, or 28.3%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The decrease in portfolio servicing revenue is primarily attributable to a net decrease in policies serviced.
Current wording
Total revenue for the portfolio servicing segment decreased by $275,417, or 33.8%, for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. The decrease in portfolio servicing revenue is primarily attributable to a net decrease in policies serviced.
Previous wording
Gross loss from our portfolio servicing segment decreased by $57,888 or 34.8%, for thesix months ended June 30, 2024, compared to thesix months ended June 30, 2023, primarily due to a net decrease in policies serviced.
Current wording
Gross loss from our portfolio servicing segment decreased by $398,826 or 50.3%, for thenine months ended September 30, 2024, compared to thenine months ended September 30, 2023, primarily due to a net decrease in policies serviced.
Previous wording
Total revenue for the active management segment increased by$15,989,358, or 145.0% for thethree months ended June 30, 2024, compared to thethree months ended June 30, 2023. Gross profit from our active management segment increased by $15,679,269, or 149.6% for thethree months ended June 30, 2024, compared to thethree months ended June 30, 2023. The increase in active management revenue and gross profit was primarily attributable to growth in the active management revenue as described in the Results of Operations section and a decrease in cost of revenue from 4.9% of revenue for thethree months ended June 30, 2023 to 3.2% of revenue for thethree months ended June 30, 2024.
Current wording
Total revenue for the active management segment increased by$8,041,431, or 42.5% for thethree months ended September 30, 2024, compared to thethree months ended September 30, 2023. Gross profit from our active management segment increased by $8,697,262, or 49.5% for thethree months ended September 30, 2024, compared to thethree months ended September 30, 2023. The increase in active management revenue and gross profit was primarily attributable to growth in the active management revenue as described in the Results of Operations section and a decrease in cost of revenue from 7.2% of revenue for thethree months ended September 30, 2023 to 2.6% of revenue for thethree months ended September 30, 2024.
Previous wording
Total revenue for the active management segment increased by$25,815,839, or 123.0% for thesix months ended June 30, 2024, compared to thesix months ended June 30, 2023. Gross profit from our active management segment increased by$24,711,714, or 121.8% for thesix months ended June 30, 2024, compared to thesix months ended June 30, 2023. The increase in active management revenue and gross profit was primarily attributable to growth in the active management revenue as described in the Results of Operations section and an increase of cost of revenue from 3.4% of revenue for thesix months ended June 30, 2023 to 3.9% of revenue for thesix months ended June 30, 2024.
Current wording
Total revenue for the active management segment increased by$33,857,270, or 84.8% for thenine months ended September 30, 2024, compared to thenine months ended September 30, 2023. Gross profit from our active management segment increased by$33,408,976, or 88.3% for thenine months ended September 30, 2024, compared to thenine months ended September 30, 2023. The increase in active management revenue and gross profit was primarily attributable to growth in the active management revenue as described in the Results of Operations section and an increase of cost of revenue from 5.2% of revenue for thenine months ended September 30, 2023 to 3.4% of revenue for thenine months ended September 30, 2024.
Previous wording
Total revenue for the originations segment increased by $1,857,457 for thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023. No originations revenue was recorded prior to the June 30, 2023 Business Combination.
Current wording
Total revenue for the originations segment decreased by $(905,687) for thethree months ended September 30, 2024 compared to thethree months ended September 30, 2023. No originations revenue was recorded prior to the June 30, 2023 Business Combination.
Previous wording
Gross profit from our originations segment increased by $135,012, for thethree months ended June 30, 2024, compared to thethree months ended June 30, 2023. No originations revenue was recorded prior to the June 30, 2023 Business Combination.
Current wording
Gross profit from our originations segment decreased by $(833,663), for thethree months ended September 30, 2024, compared to thethree months ended September 30, 2023. No originations revenue was recorded prior to the June 30, 2023 Business Combination.
Previous wording
Total revenue for the originations segment increased by $3,329,707 for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. No originations revenue was recorded prior to the June 30, 2023 Business Combination.
Current wording
Total revenue for the originations segment increased by $2,424,020 for thenine months ended September 30, 2024 compared to thenine months ended September 30, 2023. No originations revenue was recorded prior to the June 30, 2023 Business Combination.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Realized gain on investments increased by $— or NM for thethree months ended September 30, 2024, compared to thethree months ended September 30, 2023.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Cost of revenues (excluding depreciation and amortization) increased by $4,001,481, or 273.5%, for thesix months ended June 30, 2024 compared to thesix months ended June 30, 2023. The increase in cost of revenues is primarily due to increase in payroll expense related to growth in active management activity, $3,122,478 increase of commissions for origination activity related to the increase in insurance policy purchase activity during 2024, and $645,213 non-cash stock-based compensation expense.
Previous report — wording carried elsewhere
Realized gain on investments increased by $856,744 or NM for thesix months ended June 30, 2024, compared to thesix months ended June 30, 2023. The primary cause of this increase pertains to the sale of S&P 500 options related to LMATT Growth 2.2024 and LMATT Growth and Income 1.2026 market-indexed notes as discussed in Note 22, Subsequent Events.