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Financials

v3.10.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
[1]
ASSETS    
Cash and cash equivalents $ 8,314 $ 18,131
Certificates of deposit 1,014 1,010
Prepaid expenses and other assets 934 617
Deposits - other 1,377 1,377
Life settlements, at estimated fair value (Note 15) 1,006 750
Fixed assets, net 104 145
Investment in affiliates 2,384 2,384
Total assets 649,459 634,390
Liabilities    
Accounts payable and accrued expenses 2,019 2,015
Other liabilities 182 451
Current tax liability 3,120 0
Total liabilities 466,200 437,748
Commitments and Contingencies (Note 17)
Stockholders’ Equity    
Common stock (par value $0.01 per share, 415,000,000 authorized at June 30, 2018 and December 31, 2017; 159,028,458 issued and 158,420,458 outstanding as of June 30, 2018;158,495,399 issued and 157,887,399 outstanding as of December 31, 2017) 1,590 1,585
Preferred stock (par value $0.01 per share, 40,000,000 authorized; 0 issued and outstanding as of June 30, 2018 and December 31, 2017) 0 0
Treasury Stock, net of issuance cost (608,000 shares as of June 30, 2018 and December 31, 2017) (2,534) (2,534)
Additional paid-in-capital 333,844 333,629
Accumulated deficit (149,641) (136,038)
Total stockholders’ equity 183,259 196,642
Total liabilities and stockholders’ equity 649,459 634,390
8.50% Senior Unsecured Convertible Notes    
Liabilities    
Interest payable 46 46
Convertible Notes, net of discount and deferred debt costs 1,139 1,098
5.0% Senior Unsecured Convertible Notes Due 2023    
Liabilities    
Interest payable 1,432 1,432
Convertible Notes, net of discount and deferred debt costs 69,222 68,654
8.5% Senior Secured Notes    
Liabilities    
Interest payable 124 132
Senior Secured Notes, net of deferred debt costs 34,056 33,927
Variable Interest Entity    
ASSETS    
Cash and cash equivalents 17,949 13,136
Prepaid expenses and other assets 30 53
Life settlements, at estimated fair value (Note 15) 568,367 566,742
Receivable for maturity of life settlements (VIE Note 4) 47,980 30,045
Liabilities    
Accounts payable and accrued expenses 1,425 753
Other liabilities 48 0
Variable Interest Entity | White Eagle Revolving Credit Facility    
Liabilities    
White Eagle Revolving Credit Facility, at estimated fair value (VIE Note 4 & Note 9) $ 353,387 $ 329,240
[1] Derived from audited consolidated financial statements.
v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income        
Change in fair value of life settlements (Notes 8 & 15) $ 5,475 $ 3,382 $ 10,920 $ 28,922
Other income 88 79 234 129
Total income 5,563 3,461 11,154 29,051
Expenses        
Interest expense 7,797 8,163 15,401 15,698
Change in fair value of White Eagle Revolving Credit Facility (Notes 9 & 15) 12 (1,785) (2,377) 10,046
Personnel costs 939 1,049 1,706 2,133
Legal fees 910 657 2,633 1,652
Professional fees 1,660 1,204 2,899 2,807
Insurance 199 198 396 390
Other selling, general and administrative expenses 529 449 974 913
Total expenses 12,046 9,935 21,632 33,639
Income (loss) from continuing operations before income taxes (6,483) (6,474) (10,478) (4,588)
(Benefit) provision for income taxes 3,120 0 3,120 0
Net income (loss) from continuing operations (9,603) (6,474) (13,598) (4,588)
Discontinued Operations:        
Income (loss) from discontinued operations before income taxes (4) (35) (5) (225)
(Benefit) provision for income taxes 0 0 0 0
Net income (loss) from discontinued operations (4) (35) (5) (225)
Net income (loss) $ (9,607) $ (6,509) $ (13,603) $ (4,813)
Basic and Diluted income (loss) per share:        
Continuing operations (in dollars per share) $ (0.06) $ (0.23) $ (0.09) $ (0.16)
Discontinued operations (in dollars per share) 0.00 0.00 0.00 (0.01)
Net income (loss) - basic and diluted (in dollars per share) $ (0.06) $ (0.23) $ (0.09) $ (0.17)
Weighted average shares outstanding:        
Basic and diluted (in shares) 155,810,449 28,169,414 155,800,082 28,159,080
v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Cash flows from operating activities          
Net income (loss) $ (9,607) $ (6,509) $ (13,603) $ (4,813)  
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Depreciation and amortization     46 52  
Stock-based compensation expense     211 264  
Finance cost and fees withheld by borrower     484 441  
Interest Paid in Kind on 8.5% Convertible Notes     0 3,477  
Change in fair value of life settlements (5,475) (3,382) (10,920) (28,922)  
Change in fair value of White Eagle Revolving Credit Facility 12 (1,785) (2,377) 10,046  
Interest income     (57) (12)  
Change in assets and liabilities:          
Deposits - other     0 (30)  
Prepaid expenses and other assets     (291) (3,473)  
Accounts payable and accrued expenses     685 3,749  
Other liabilities     (221) (115)  
Current tax liability     3,120 0  
Interest payable     0 11  
Net cash used in operating activities     (22,193) (16,995) $ 34,800
Cash flows from investing activities          
Certificate of deposit     0 5,025  
Premiums paid on life settlements     (44,896) (42,033)  
Proceeds from maturity of life settlements     36,045 26,173  
Net cash used in investing activities     (8,851) (10,835)  
Cash flows from financing activities          
Payment under finance lease obligations     0 (18)  
Net cash provided by financing activities     26,040 39,177  
Net increase (decrease) in cash and cash equivalents     (5,004) 11,347  
Cash and cash equivalents, at beginning of the period     31,267 11,318 11,318
Cash and cash equivalents, at end of the period $ 26,263 $ 22,665 26,263 22,665 $ 31,267
Supplemental disclosures of cash flow information:          
Cash paid for interest during the period     14,662 9,813  
8.50% Senior Unsecured Convertible Notes          
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Amortization of discount and deferred costs     41 2,048  
Change in assets and liabilities:          
Interest payable     0 111  
15.0% Senior Secured Notes          
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Amortization of discount and deferred costs     0 184  
Change in assets and liabilities:          
Interest payable     0 (13)  
5.0% Senior Unsecured Convertible Notes Due 2023          
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Amortization of discount and deferred costs     568 0  
8.5% Senior Secured Notes          
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Amortization of discount and deferred costs     129 0  
Change in assets and liabilities:          
Interest payable     (8) 0  
White Eagle Credit Facility          
Cash flows from financing activities          
Borrowings from White Eagle Revolving Credit Facility     45,583 42,959  
Repayment of borrowings under White Eagle Revolving Credit Facility     (19,543) (5,656)  
15.0% Promissory Note          
Cash flows from financing activities          
Borrowings from White Eagle Revolving Credit Facility     $ 0 $ 1,892  

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