S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 |
Delaware
|
26-2222607
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | x |
Page No.
|
||
PART I.
|
FINANCIAL INFORMATION
|
|
Item 1.
|
Financial Statements
|
|
Condensed Consolidated Balance Sheets as of June 30, 2013, and December 31, 2012
|
3
|
|
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012
|
4
|
|
Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2013 and 2012
|
5
|
|
Condensed Consolidated Statement of Changes in Equity
|
7
|
|
Notes to Condensed Consolidated Financial Statements
|
8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
28
|
Item 4.
|
Controls and Procedures
|
49
|
PART II.
|
OTHER INFORMATION
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
50
|
Item 6.
|
Exhibits
|
51
|
SIGNATURES
|
52
|
June 30,
2013
|
December 31,
2012
|
|||||||
(unaudited) | ||||||||
A S S E T S
|
||||||||
Cash and cash equivalents
|
$ | 38,240,633 | $ | 27,497,044 | ||||
Restricted cash
|
4,463,867 | 2,093,092 | ||||||
Investment in life settlements, at fair value
|
193,891,894 | 164,317,183 | ||||||
Other assets
|
7,041,894 | 4,040,716 | ||||||
TOTAL ASSETS
|
$ | 243,638,288 | $ | 197,948,035 | ||||
L I A B I L I T I E S & E Q U I T Y (D E F I C I T)
|
||||||||
LIABILITIES
|
||||||||
Revolving credit facility
|
$ | 79,000,000 | $ | 71,000,000 | ||||
Series I Secured notes payable
|
34,505,914 | 37,844,711 | ||||||
Renewable secured debentures
|
93,684,735 | 55,718,950 | ||||||
Interest payable
|
5,771,063 | 3,477,320 | ||||||
Accounts payable and accrued expenses
|
1,642,728 | 1,761,558 | ||||||
Deferred taxes, net
|
7,868,201 | 5,501,407 | ||||||
TOTAL LIABILITIES
|
222,472,641 | 175,303,946 | ||||||
CONVERTIBLE, REDEEMABLE PREFERRED STOCK
|
||||||||
(par value $0.001; shares authorized 40,000,000; shares issued and outstanding 3,356,787 and 3,361,076; liquidation preference of $25,176,000 and $25,208,000, respectively)
|
24,322,651 | 23,905,878 | ||||||
EQUITY
|
||||||||
Common stock (par value $0.001: shares authorized 210,000,000; shares issued and outstanding is 9,124,000 and 9,989,000 on June 30, 2013 and December 31, 2012, respectively)
|
9,124 | 9,989 | ||||||
Additional paid-in capital
|
3,253,670 | 6,971,844 | ||||||
Accumulated deficit
|
(6,419,798 | ) | (8,243,622 | ) | ||||
TOTAL EQUITY (DEFICIT)
|
(3,157,004 | ) | (1,261,789 | ) | ||||
TOTAL LIABILITIES & EQUITY (DEFICIT)
|
$ | 243,638,288 | $ | 197,948,035 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2013
|
June 30, 2012
|
June 30, 2013
|
June 30, 2012
|
|||||||||||||
REVENUE
|
||||||||||||||||
Gain on life settlements, net
|
$ | 7,733,245 | $ | 4,867,478 | $ | 16,073,601 | $ | 5,469,246 | ||||||||
Interest and other income
|
3,274,323 | 47,563 | 3,441,994 | 48,894 | ||||||||||||
TOTAL REVENUE
|
11,007,568 | 4,915,041 | 19,515,595 | 5,518,140 | ||||||||||||
EXPENSES
|
||||||||||||||||
Employee compensation and benefits
|
1,063,923 | 583,338 | 3,001,343 | 1,117,084 | ||||||||||||
Legal and professional fees
|
351,910 | 337,179 | 789,200 | 701,403 | ||||||||||||
Interest expense
|
4,941,942 | 2,379,578 | 9,409,157 | 4,817,991 | ||||||||||||
Other expenses
|
1,091,132 | 703,659 | 2,124,277 | 1,262,652 | ||||||||||||
TOTAL EXPENSES
|
7,448,907 | 4,003,754 | 15,323,977 | 7,899,130 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
3,558,661 | 911,287 | 4,191,618 | (2,380,990 | ) | |||||||||||
INCOME TAX EXPENSE (BENEFIT)
|
1,801,971 | 609,588 | 2,367,794 | (529,860 | ) | |||||||||||
NET INCOME (LOSS)
|
$ | 1,756,690 | $ | 301,699 | $ | 1,823,824 | $ | (1,851,130 | ) | |||||||
NET INCOME (LOSS) PER SHARE
|
||||||||||||||||
Basic
|
$ | 0.18 | $ | 0.03 | $ | 0.19 | $ | (0.19 | ) | |||||||
Diluted
|
$ | 0.12 | $ | 0.03 | $ | 0.13 | $ | (0.19 | ) | |||||||
|
||||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
Basic
|
9,969,989 | 9,989,000 | 9,548,205 | 9,989,000 | ||||||||||||
Diluted
|
15,022,198 | 9,989,000 | 14,580,506 | 9,989,000 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2013
|
June 30, 2012
|
June 30, 2013
|
June 30, 2012
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||
Net income (loss)
|
$ | 1,756,690 | $ | 301,699 | $ | 1,823,824 | $ | (1,851,130 | ) | |||||||
Adjustments to reconcile net income (loss) to net
|
||||||||||||||||
cash flows from operating activities:
|
||||||||||||||||
Gain on life settlements
|
(7,449,180 | ) | (4,575,941 | ) | (18,943,905 | ) | (10,990,249 | ) | ||||||||
Amortization of deferred financing and issuance costs
|
837,133 | 342,297 | 1,930,880 | 909,457 | ||||||||||||
Deferred income taxes
|
1,802,920 | 609,588 | 2,366,794 | (529,860 | ) | |||||||||||
Convertible, redeemable preferred stock dividends payable
|
178,235 | 294,935 | 261,937 | 421,010 | ||||||||||||
(Increase) decrease in operating assets:
|
||||||||||||||||
Other assets
|
(4,164,004 | ) | (298,060 | ) | (3,614,132 | ) | 1,057,285 | |||||||||
Increase (decrease) in operating liabilities:
|
||||||||||||||||
Accounts payable and accrued expenses
|
402,739 | 101,452 | 1,694,797 | 659,134 | ||||||||||||
NET CASH FLOWS USED IN OPERATING ACTIVITIES
|
(6,635,467 | ) | (3,224,030 | ) | (14,479,805 | ) | (10,324,353 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||
Investment in life settlements
|
(2,972,944 | ) | (1,468,770 | ) | (12,885,993 | ) | (2,622,030 | ) | ||||||||
Proceeds from settlement of life settlements
|
1,382,152 | 416,665 | 2,872,152 | 416,665 | ||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES
|
(1,590,792 | ) | (1,052,105 | ) | (10,013,841 | ) | (2,205,365 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||
Net proceeds from revolving credit facility
|
- | 3,500,000 | 8,000,000 | 6,000,000 | ||||||||||||
Proceeds from issuance of Series I Secured notes payable
|
- | - | - | 50,000 | ||||||||||||
Payments for redemption of Series I Secured notes payable
|
(2,423,052 | ) | (1,918,420 | ) | (3,930,876 | ) | (3,468,957 | ) | ||||||||
Proceeds from issuance of renewable secured debentures
|
18,588,867 | 12,695,213 | 42,439,661 | 15,757,086 | ||||||||||||
Payments for redemption and issuance of renewable secured debentures
|
(3,033,303 | ) | (712,587 | ) | (5,336,571 | ) | (712,587 | ) | ||||||||
Proceeds from restricted cash
|
2,160,333 | (3,282,199 | ) | (2,370,775 | ) | (57,361 | ) | |||||||||
Repurchase of common stock
|
(3,252,400 | ) | - | (3,252,400 | ) | - | ||||||||||
Issuance (redemptions) of convertible, redeemable preferred stock
|
(125,135 | ) | 1,350,910 | (311,804 | ) | 5,787,375 | ||||||||||
Payments of issuance cost for preferred stock
|
(810,722 | ) | - | (1,609,362 | ) | |||||||||||
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
11,915,310 | 10,822,195 | 35,237,235 | 21,746,194 | ||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
3,689,051 | 6,546,060 | 10,743,589 | 9,216,476 | ||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||
BEGINNING OF PERIOD
|
34,551,582 | 4,548,765 | 27,497,044 | 1,878,349 | ||||||||||||
END OF PERIOD
|
$ | 38,240,633 | $ | 11,094,825 | $ | 38,240,633 | $ | 11,094,825 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2013
|
June 30, 2012
|
June 30, 2013
|
June 30, 2012
|
|||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||||||||||
Interest paid
|
$ | 3,214,000 | $ | 1,313,000 | $ | 6,512,000 | $ | 2,462,000 | ||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES
|
||||||||||||||||
Series I secured notes:
|
||||||||||||||||
Non-cash conversion of accrued interest and commissions payable to principal
|
$ | 86,000 | $ | 4,000 | $ | 150,000 | $ | 8,000 | ||||||||
Renewable secured debentures:
|
||||||||||||||||
Non-cash conversion of accrued interest and commission payable to principal
|
$ | 59,000 | $ | 37,000 | $ | 100,000 | $ | 70,000 | ||||||||
Convertible, redeemable preferred stock
|
||||||||||||||||
Non-cash conversion of dividends payable
|
$ | 178,000 | $ | 138,000 | $ | 262,000 | $ | 250,000 | ||||||||
Non-cash accretion of convertible, redeemable preferred stock to redemption value
|
$ | 209,000 | $ | 435,000 | $ | 467,000 | $ | 775,000 | ||||||||
Non-cash conversion of Series I secured notes
|
$ | - | $ | 1,130,000 | $ | - | $ | 4,220,000 | ||||||||
Investment in life settlements included in accounts payable
|
$ | 262,000 | $ | 108,000 | $ | 262,000 | $ | 108,000 |
Common
|
Common
Stock
|
Additional
Paid-in
|
Accumulated
|
|||||||||||||||||
Shares
|
(par)
|
Capital
|
Deficit
|
Total Equity
|
||||||||||||||||
Balance, December 31, 2011
|
9,989,000 | $ | 9,989 | $ | 8,169,303 | $ | (7,230,723 | ) | $ | 948,569 | ||||||||||
Net income
|
- | - | - | (1,012,899 | ) | (1,012,899 | ) | |||||||||||||
Issuance of warrants to purchase common stock
|
- | - | 380,946 | - | 380,946 | |||||||||||||||
Accretion of preferred stock to liquidation value
|
- | - | (1,578,405 | ) | - | (1,578,405 | ) | |||||||||||||
Balance, December 31, 2012
|
9,989,000 | 9,989 | 6,971,844 | (8,243,622 | ) | (1,261,789 | ) | |||||||||||||
Net income
|
1,823,824 | 1,823,824 | ||||||||||||||||||
Repurchase of common stock
|
(865,000 | ) | (865 | ) | (3,251,535 | ) | (3,252,400 | ) | ||||||||||||
Accretion of preferred stock to liquidation value
|
(466,639 | ) | (466,639 | ) | ||||||||||||||||
Balance, June 30, 2013
|
9,124,000 | $ | 9,124 | $ | 3,253,670 | $ | (6,419,798 | ) | $ | (3,157,004 | ) |
As of June 30, 2013
|
As of December 31, 2012
|
|||||||||||||||||||||||
Years Ending December 31,
|
Number of Contracts
|
Estimated Fair Value
|
Face Value
|
Number of Contracts
|
Estimated Fair Value
|
Face Value
|
||||||||||||||||||
2013
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||
2014
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
2015
|
2
|
1,239,000
|
2,000,000
|
2
|
1,163,000
|
2,000,000
|
||||||||||||||||||
2016
|
10
|
7,059,000
|
12,729,000
|
13
|
11,608,000
|
22,229,000
|
||||||||||||||||||
2017
|
18
|
25,099,000
|
56,173,000
|
17
|
21,155,000
|
53,439,000
|
||||||||||||||||||
2018
|
31
|
32,382,000
|
77,629,000
|
31
|
28,252,000
|
75,668,000
|
||||||||||||||||||
2019
|
40
|
34,198,000
|
99,668,000
|
35
|
26,947,000
|
84,579,000
|
||||||||||||||||||
Thereafter
|
140
|
93,915,000
|
402,456,000
|
113
|
75,192,000
|
334,331,000
|
||||||||||||||||||
Totals
|
241
|
$
|
193,892,000
|
$
|
650,655,000
|
211
|
$
|
164,317,000
|
$
|
572,246,000
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Change in fair value
|
$ | 7,449,000 | $ | 4,576,000 | $ | 18,944,000 | $ | 9,367,000 | ||||||||
Premiums and other annual fees
|
(4,934,000 | ) | (3,792,000 | ) | (10,598,000 | ) | (7,981,000 | ) | ||||||||
Policy maturities
|
5,218,000 | 4,083,000 | 7,728,000 | 4,083,000 | ||||||||||||
Gain on life settlements, net
|
$ | 7,733,000 | $ | 4,867,000 | $ | 16,074,000 | $ | 5,469,000 |
Years Ending December 31,
|
||||
Six months ending December 31, 2013
|
$ | 10,272,000 | ||
2014
|
21,206,000 | |||
2015
|
22,986,000 | |||
2016
|
25,222,000 | |||
2017
|
27,757,000 | |||
$ | 107,443,000 |
●
|
Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.
|
●
|
Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
|
●
|
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
|
Three month ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Beginning balance
|
$ | 185,020,000 | $ | 128,112,000 | $ | 164,317,000 | $ | 122,169,000 | ||||||||
Purchases
|
2,805,000 | 1,576,000 | 13,503,000 | 2,728,000 | ||||||||||||
Maturities (cash in excess of carrying value)
|
(1,382,000 | ) | (416,000 | ) | (2,872,000 | ) | (416,000 | ) | ||||||||
Net change in fair value
|
7,449,000 | 4,576,000 | 18,944,000 | 9,367,000 | ||||||||||||
Ending balance (June 30)
|
$ | 193,892,000 | $ | 133,848,000 | $ | 193,892,000 | $ | 133,848,000 |
As of
June 30, 2013
|
As of
December 31, 2012
|
|||||||
Weighted average age of insured
|
81.7
|
81.3
|
||||||
Weighted average life expectancy, months*
|
90.4
|
91.6
|
||||||
Average face amount per policy
|
$
|
2,699,814
|
$
|
2,712,063
|
||||
Discount rate
|
11.84
|
%
|
12.08
|
%
|
||||
* Standard life expectancy as adjusted for insured’s specific circumstances.
|
Change in life expectancy
|
||||||||||||||||
plus 8
months
|
minus
8 months
|
plus
4 months
|
minus
4 months
|
|||||||||||||
June 30, 2013
|
$
|
(28,173,000
|
)
|
$
|
29,545,000
|
$
|
(14,258,000
|
)
|
$
|
14,601,000
|
||||||
December 31, 2012
|
$
|
(24,072,000
|
)
|
$
|
25,268,000
|
$
|
(12,185,000
|
)
|
$
|
12,484,000
|
||||||
Change in discount rate
|
||||||||||||||||
plus 2%
|
minus 2%
|
plus 1%
|
minus 1%
|
|||||||||||||
June 30, 2013
|
$
|
(19,390,000
|
)
|
$
|
23,002,000
|
$
|
(10,098,000
|
)
|
$
|
10,998,000
|
||||||
December 31, 2012
|
$
|
(16,811,000
|
)
|
$
|
19,978,000
|
$
|
(8,759,000
|
)
|
$
|
9,547,000
|
Month issued
|
Warrants issued
|
Fair value per share
|
Risk free rate
|
Volatility
|
Term
|
|||||||||||||
December 2011
|
137,874
|
$
|
0.11
|
0.42
|
%
|
25.25
|
%
|
3 years
|
||||||||||
March 2012
|
76,260
|
$
|
0.26
|
0.38
|
%
|
36.20
|
%
|
3 years
|
||||||||||
June 2012
|
323,681
|
$
|
0.58
|
0.41
|
%
|
47.36
|
%
|
3 years
|
||||||||||
July 2012
|
289,093
|
$
|
0.58
|
0.41
|
%
|
47.36
|
%
|
3 years
|
||||||||||
September 2012
|
5,000
|
$
|
0.36
|
0.31
|
%
|
40.49
|
%
|
3 years
|
||||||||||
831,908
|
●
|
changing its corporate name, offices, and jurisdiction of incorporation
|
●
|
changing any deposit accounts or payment instructions to insurers;
|
●
|
changing any operating policies and practices such that it would be reasonably likely to adversely affect the collectability of any asset in any material respect;
|
●
|
merging or consolidating with, or selling all or substantially all of its assets to, any third party;
|
●
|
selling any collateral or creating or permitting to exist any adverse claim upon any collateral;
|
●
|
engaging in any other business or activity than that contemplated by the Agreement;
|
●
|
incurring or guaranteeing any debt for borrowed money;
|
●
|
amending the Company’s certificate of incorporation or bylaws, making any loans or advances to, investments in, or paying any dividends to, any person unless both before and after any such loan, advance, investment or dividend there exists no actual event of default, potential event of default or termination event;
|
●
|
removing an independent director on the board of directors except for cause or with the consent of the lender; or
|
●
|
making payment on or issuing any subsidiary secured notes or debentures, or amending any agreements respecting such notes or debentures, if an event of default, potential event of default or termination event exists or would arise from any such action.
|
Years Ending December 31,
|
||||
Six months ending December 31, 2013
|
$ | 9,358,000 | ||
2014
|
12,561,000 | |||
2015
|
6,675,000 | |||
2016
|
1,802,000 | |||
2017
|
4,085,000 | |||
Thereafter
|
818,000 | |||
$ | 35,299,000 |
Years Ending December 31,
|
||||
Six months ending December 31, 2013
|
$ | 11,839,000 | ||
2014
|
15,272,000 | |||
2015
|
30,085,000 | |||
2016
|
16,359,000 | |||
2017
|
6,529,000 | |||
Thereafter
|
15,774,000 | |||
$ | 95,858,000 |
●
|
Up to 33% of the holder’s unredeemed shares one year after issuance:
|
●
|
Up to 66% of the holder’s unredeemed shares two years after issuance; and
|
●
|
Up to 100% of the holder’s unredeemed shares three years after issuance.
|
Six months ending December 31, 2013
|
$ | 49,000 | ||
2014
|
104,000 | |||
2015
|
70,000 | |||
Total
|
$ | 223,000 |
June 30, 2013
|
Parent
|
Guarantor Sub
|
Non-Guarantor Sub
|
Eliminations
|
Consolidated
|
|||||||||||||||
A S S E T S
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
36,989,169
|
$
|
1,251,464
|
$
|
-
|
$
|
-
|
$
|
38,240,633
|
||||||||||
Restricted cash
|
-
|
2,501,500
|
1,962,367
|
-
|
4,463,867
|
|||||||||||||||
Investment in life settlements, at fair value
|
-
|
-
|
193,891,894
|
-
|
193,891,894
|
|||||||||||||||
Other assets
|
263,555
|
328,363
|
6,449,976
|
-
|
7,041,894
|
|||||||||||||||
Investment in subsidiaries
|
88,702,942
|
122,020,978
|
-
|
(210,723,920
|
)
|
-
|
||||||||||||||
TOTAL ASSETS
|
$
|
125,955,666
|
$
|
126,102,305
|
$
|
202,304,237
|
$
|
(210,723,920
|
)
|
$
|
243,638,288
|
|||||||||
L I A B I L I T I E S & S T O C K H O L D E R S ' E Q U I T Y (D E F I C I T)
|
||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||
Revolving credit facility
|
$
|
-
|
$
|
-
|
$
|
79,000,000
|
$
|
-
|
$
|
79,000,000
|
||||||||||
Series I Secured notes payable
|
-
|
34,505,914
|
-
|
-
|
34,505,914
|
|||||||||||||||
Secured renewable debentures
|
93,684,735
|
-
|
-
|
93,684,735
|
||||||||||||||||
Interest payable
|
2,577,524
|
2,686,747
|
506,792
|
-
|
5,771,063
|
|||||||||||||||
Accounts payable and accrued expenses
|
659,559
|
206,702
|
776,467
|
-
|
1,642,728
|
|||||||||||||||
Deferred taxes, net
|
7,868,201
|
-
|
-
|
-
|
7,868,201
|
|||||||||||||||
TOTAL LIABILITIES
|
104,790,019
|
37,399,363
|
80,283,259
|
-
|
222,472,641
|
|||||||||||||||
CONVERTIBLE, REDEEMABLE PREFERRED STOCK
|
24,322,651
|
-
|
-
|
-
|
24,322,651
|
|||||||||||||||
EQUITY (DEFICIT)
|
||||||||||||||||||||
Member capital
|
-
|
88,702,942
|
122,020,978
|
(210,723,920
|
)
|
-
|
||||||||||||||
Common stock
|
9,124
|
-
|
-
|
-
|
9,124
|
|||||||||||||||
Additional paid-in capital
|
3,253,670
|
-
|
-
|
-
|
3,253,670
|
|||||||||||||||
Accumulated deficit
|
(6,419,798
|
)
|
-
|
-
|
-
|
(6,419,798
|
)
|
|||||||||||||
TOTAL EQUITY (DEFICIT)
|
(3,157,004
|
)
|
88,702,942
|
122,020,978
|
(210,723,920
|
)
|
(3,157,004
|
)
|
||||||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT)
|
$
|
125,955,666
|
$
|
126,102,305
|
$
|
202,304,237
|
$
|
(210,723,920
|
)
|
$
|
243,638,288
|
December 31, 2012
|
Parent
|
Guarantor Sub
|
Non-Guarantor Sub
|
Eliminations
|
Consolidated
|
|||||||||||||||
A S S E T S
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
25,035,579
|
$
|
2,461,465
|
$
|
-
|
$
|
-
|
$
|
27,497,044
|
||||||||||
Restricted cash
|
-
|
1,748,700
|
344,392
|
2,093,092
|
||||||||||||||||
Investment in life settlements, at fair value
|
-
|
-
|
164,317,183
|
-
|
164,317,183
|
|||||||||||||||
Other assets
|
96,994
|
211,592
|
3,732,130
|
-
|
4,040,716
|
|||||||||||||||
Investment in subsidiaries
|
60,608,585
|
96,914,613
|
-
|
(157,523,198
|
)
|
-
|
||||||||||||||
TOTAL ASSETS
|
$
|
85,741,158
|
$
|
101,336,370
|
$
|
168,393,705
|
$
|
(157,523,198
|
)
|
$
|
197,948,035
|
|||||||||
L I A B I L I T I E S & S T O C K H O L D E R S ' E Q U I T Y (D E F I C I T)
|
||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||
Revolving credit facility
|
$
|
-
|
$
|
-
|
$
|
71,000,000
|
$
|
-
|
$
|
71,000,000
|
||||||||||
Series I Secured notes payable
|
-
|
37,844,711
|
-
|
-
|
37,844,711
|
|||||||||||||||
Secured renewable debentures
|
55,718,950
|
-
|
-
|
55,718,950
|
||||||||||||||||
Interest payable
|
905,017
|
2,444,097
|
128,206
|
-
|
3,477,320
|
|||||||||||||||
Accounts payable and accrued expenses
|
971,695
|
490,497
|
302,366
|
-
|
1,761,558
|
|||||||||||||||
Deferred taxes, net
|
5,501,407
|
-
|
-
|
-
|
5,501,407
|
|||||||||||||||
TOTAL LIABILITIES
|
63,097,069
|
40,776,305
|
71,430,572
|
-
|
175,303,946
|
|||||||||||||||
CONVERTIBLE, REDEEMABLE PREFERRED STOCK
|
23,905,878
|
-
|
-
|
-
|
23,905,878
|
|||||||||||||||
EQUITY (DEFICIT)
|
||||||||||||||||||||
Member capital
|
-
|
60,560,065
|
96,963,133
|
(157,523,198
|
)
|
-
|
||||||||||||||
Common stock
|
9,989
|
-
|
-
|
-
|
9,989
|
|||||||||||||||
Additional paid-in capital
|
6,971,844
|
-
|
-
|
-
|
6,971,844
|
|||||||||||||||
Accumulated deficit
|
(8,243,622
|
)
|
-
|
-
|
-
|
(8,243,622
|
)
|
|||||||||||||
TOTAL EQUITY (DEFICIT)
|
(1,261,789
|
)
|
60,560,065
|
96,963,133
|
(157,523,198
|
)
|
(1,261,789
|
)
|
||||||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT)
|
$
|
85,741,158
|
$
|
101,336,370
|
$
|
168,393,705
|
$
|
(157,523,198
|
)
|
$
|
197,948,035
|
For the six months ended June 30, 2013
|
Parent
|
Guarantor Subsidiary
|
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
REVENUE
|
||||||||||||||||||||
Contract servicing fees
|
$ | - | $ | 1,814,202 | $ | - | $ | (1,814,202 | ) | $ | - | |||||||||
Gain on life settlements, net
|
- | - | 16,073,601 | - | 16,073,601 | |||||||||||||||
Interest and other income
|
3,267,454 | 977,855 | 37,620 | (840,935 | ) | 3,441,994 | ||||||||||||||
TOTAL REVENUE
|
3,267,454 | 2,792,057 | 16,111,221 | (2,655,137 | ) | 19,515,595 | ||||||||||||||
EXPENSES
|
||||||||||||||||||||
Origination and servicing fees
|
- | - | 1,814,202 | (1,814,202 | ) | - | ||||||||||||||
Employee compensation and benefits
|
2,213,056 | 788,287 | - | - | 3,001,343 | |||||||||||||||
Legal and professional fees
|
672,317 | 116,883 | - | - | 789,200 | |||||||||||||||
Interest expense
|
4,976,599 | 1,849,861 | 2,582,697 | - | 9,409,157 | |||||||||||||||
Other expenses
|
1,283,269 | 816,009 | 865,934 | (840,935 | ) | 2,124,277 | ||||||||||||||
TOTAL EXPENSES
|
9,145,241 | 3,571,040 | 5,262,833 | (2,655,137 | ) | 15,323,977 | ||||||||||||||
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
|
(5,877,787 | ) | (778,983 | ) | 10,848,388 | - | 4,191,618 | |||||||||||||
EQUITY IN INCOME OF SUBSIDIARIES
|
10,069,405 | 10,896,907 | 10,848,388 | (20,966,312 | ) | - | ||||||||||||||
INCOME BEFORE INCOME TAXES
|
4,191,618 | 10,117,924 | 10,848,388 | (20,966,312 | ) | 4,191,618 | ||||||||||||||
INCOME TAX EXPENSE
|
2,367,794 | - | - | - | 2,367,794 | |||||||||||||||
NET INCOME
|
$ | 1,823,824 | $ | 10,117,924 | $ | 10,848,388 | $ | (20,966,312 | ) | $ | 1,823,824 |
For the six months ended June 30, 2012
|
Parent
|
Guarantor Subsidiary
|
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
REVENUE
|
||||||||||||||||||||
Contract servicing fees
|
$ | - | $ | 438,250 | $ | - | $ | (438,250 | ) | $ | - | |||||||||
Gain on life settlements, net
|
- | 229,277 | 5,239,969 | - | 5,469,246 | |||||||||||||||
Interest and other income
|
3,049 | 3,192 | 42,653 | - | 48,894 | |||||||||||||||
TOTAL REVENUE
|
3,049 | 670,719 | 5,282,622 | (438,250 | ) | 5,518,140 | ||||||||||||||
EXPENSES
|
||||||||||||||||||||
Origination and servicing fees
|
- | (6,500 | ) | 444,750 | (438,250 | ) | - | |||||||||||||
Employee compensation and benefits
|
- | 1,117,084 | - | - | 1,117,084 | |||||||||||||||
Legal and professional fees
|
655,600 | 45,803 | - | - | 701,403 | |||||||||||||||
Interest expense
|
1,268,211 | 2,696,548 | 853,232 | - | 4,817,991 | |||||||||||||||
Other expenses
|
534,100 | 703,552 | 25,000 | - | 1,262,652 | |||||||||||||||
TOTAL EXPENSES
|
2,457,911 | 4,556,487 | 1,322,982 | (438,250 | ) | 7,899,130 | ||||||||||||||
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
|
(2,454,862 | ) | (3,885,768 | ) | 3,959,640 | - | (2,380,990 | ) | ||||||||||||
EQUITY IN INCOME OF SUBSIDIARIES
|
73,872 | 4,017,864 | - | (4,091,736 | ) | - | ||||||||||||||
INCOME BEFORE INCOME TAXES
|
(2,380,990 | ) | 132,096 | 3,959,640 | (4,091,736 | ) | (2,380,990 | ) | ||||||||||||
INCOME TAX BENEFIT
|
(529,860 | ) | - | - | - | (529,860 | ) | |||||||||||||
NET INCOME (LOSS)
|
$ | (1,851,130 | ) | $ | 132,096 | $ | 3,959,640 | $ | (4,091,736 | ) | $ | (1,851,130 | ) |
For the three months ended June 30, 2013
|
Parent
|
Guarantor Subsidiary
|
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
REVENUE
|
||||||||||||||||||||
Contract servicing fees
|
$ | - | $ | 536,100 | $ | - | $ | (536,100 | ) | $ | - | |||||||||
Gain on life settlements, net
|
- | - | 7,733,245 | - | 7,733,245 | |||||||||||||||
Interest and other income
|
3,259,362 | 841,286 | 14,610 | (840,935 | ) | 3,274,323 | ||||||||||||||
TOTAL REVENUE
|
3,259,362 | 1,377,386 | 7,747,855 | (1,377,035 | ) | 11,007,568 | ||||||||||||||
EXPENSES
|
||||||||||||||||||||
Origination and servicing fees
|
- | - | 536,100 | (536,100 | ) | - | ||||||||||||||
Employee compensation and benefits
|
666,354 | 397,569 | - | - | 1,063,923 | |||||||||||||||
Legal and professional fees
|
272,794 | 79,116 | - | - | 351,910 | |||||||||||||||
Interest expense
|
2,655,430 | 942,686 | 1,343,826 | - | 4,941,942 | |||||||||||||||
Other expenses
|
649,112 | 429,520 | 853,435 | (840,935 | ) | 1,091,132 | ||||||||||||||
TOTAL EXPENSES
|
4,243,690 | 1,848,891 | 2,733,361 | (1,377,035 | ) | 7,448,907 | ||||||||||||||
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
|
(984,328 | ) | (471,505 | ) | 5,014,494 | - | 3,558,661 | |||||||||||||
EQUITY IN INCOME OF SUBSIDIARIES
|
4,543,289 | 5,014,494 | - | (9,557,783 | ) | - | ||||||||||||||
INCOME BEFORE INCOME TAXES
|
3,558,961 | 4,542,989 | 5,014,494 | (9,557,783 | ) | 3,558,661 | ||||||||||||||
INCOME TAX EXPENSE (BENEFIT)
|
1,802,271 | (300 | ) | - | - | 1,801,971 | ||||||||||||||
NET INCOME
|
$ | 1,756,690 | $ | 4,543,289 | $ | 5,014,494 | $ | (9,557,783 | ) | $ | 1,756,690 |
For the three months ended June 30, 2012
|
Parent
|
Guarantor Subsidiary
|
Non-Guarantor Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
REVENUE
|
||||||||||||||||||||
Contract servicing fees
|
$ | - | $ | 290,050 | $ | - | $ | (290,050 | ) | $ | - | |||||||||
Gain on life settlements, net
|
- | 79,307 | 4,788,171 | - | 4,867,478 | |||||||||||||||
Interest and other income
|
2,745 | 2,237 | 42,581 | - | 47,563 | |||||||||||||||
TOTAL REVENUE
|
2,745 | 371,594 | 4,830,752 | (290,050 | ) | 4,915,041 | ||||||||||||||
EXPENSES
|
||||||||||||||||||||
Origination and servicing fees
|
- | - | 290,050 | (290,050 | ) | - | ||||||||||||||
Employee compensation and benefits
|
- | 583,338 | - | - | 583,338 | |||||||||||||||
Legal and professional fees
|
364,698 | (27,519 | ) | - | - | 337,179 | ||||||||||||||
Interest expense
|
814,038 | 1,140,239 | 425,301 | - | 2,379,578 | |||||||||||||||
Other expenses
|
387,691 | 303,468 | 12,500 | - | 703,659 | |||||||||||||||
TOTAL EXPENSES
|
1,566,427 | 1,999,526 | 727,851 | (290,050 | ) | 4,003,754 | ||||||||||||||
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
|
(1,563,682 | ) | (1,627,932 | ) | 4,102,901 | - | 911,287 | |||||||||||||
EQUITY IN INCOME OF SUBSIDIARIES
|
2,474,969 | 4,132,013 | - | (6,606,982 | ) | - | ||||||||||||||
INCOME BEFORE INCOME TAXES
|
911,287 | 2,504,081 | 4,102,901 | (6,606,982 | ) | 911,287 | ||||||||||||||
INCOME TAX EXPENSE
|
609,588 | - | - | - | 609,588 | |||||||||||||||
NET INCOME
|
$ | 301,699 | $ | 2,504,081 | $ | 4,102,901 | $ | (6,606,982 | ) | $ | 301,699 |
For the six months ended June 30, 2013
|
Parent
|
Guarantor Sub
|
Non-Guarantor Sub
|
Eliminations
|
Consolidated
|
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||||||
Net income
|
$
|
1,823,824
|
$
|
10,117,924
|
$
|
10,848,388
|
$
|
(20,966,312
|
)
|
$
|
1,823,824
|
|||||||||
Adjustments to reconcile net income to cash:
|
||||||||||||||||||||
Equity income of subsidiaries
|
(982,826
|
)
|
(867,920
|
)
|
-
|
1,850,746
|
-
|
|||||||||||||
Gain on life settlements
|
-
|
-
|
(18,943,905
|
)
|
-
|
(18,943,905
|
)
|
|||||||||||||
Amortization of deferred financing and issuance costs
|
737,959
|
434,431
|
758,490
|
-
|
1,930,880
|
|||||||||||||||
Deferred income taxes
|
2,366,794
|
-
|
-
|
-
|
2,366,794
|
|||||||||||||||
Preferred stock issued for dividends
|
261,937
|
-
|
-
|
-
|
261,937
|
|||||||||||||||
(Increase) decrease in operating assets:
|
||||||||||||||||||||
Other assets
|
(27,278,091
|
)
|
(24,355,215
|
)
|
(3,330,802
|
)
|
51,349,976
|
(3,614,132
|
)
|
|||||||||||
Increase (decrease) in operating liabilities:
|
||||||||||||||||||||
Accounts payable and other accrued expenses
|
1,485,107
|
119,503
|
90,187
|
-
|
1,694,797
|
|||||||||||||||
NET CASH FLOWS USED IN OPERATING ACTIVITIES
|
(21,585,296
|
)
|
(14,551,277
|
)
|
(10,577,642
|
)
|
32,234,410
|
(14,479,805
|
)
|
|||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||
Investment in life settlements
|
-
|
-
|
(12,885,993
|
)
|
-
|
(12,885,993
|
)
|
|||||||||||||
Proceeds from settlement of life settlements
|
-
|
-
|
2,872,152
|
-
|
2,872,152
|
|||||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES
|
-
|
-
|
(10,013,841
|
)
|
-
|
(10,013,841
|
)
|
|||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||
Net proceeds from revolving credit facility
|
-
|
-
|
8,000,000
|
-
|
8,000,000
|
|||||||||||||||
Payments for redemption of Series I Secured notes payable
|
-
|
(3,930,876
|
)
|
-
|
-
|
(3,930,876
|
)
|
|||||||||||||
Proceeds from issuance of debentures
|
42,439,661
|
-
|
-
|
-
|
42,439,661
|
|||||||||||||||
Payments from issuance and redemption of debentures
|
(5,336,571
|
)
|
-
|
-
|
-
|
(5,336,571
|
)
|
|||||||||||||
Payments from restricted cash
|
-
|
(752,800
|
)
|
(1,617,975
|
)
|
-
|
(2,370,775
|
)
|
||||||||||||
Issuance of member capital
|
-
|
18,024,952
|
14,209,458
|
(32,234,410
|
)
|
-
|
||||||||||||||
Repurchase of common stock
|
(3,252,400
|
)
|
-
|
-
|
-
|
(3,252,400
|
)
|
|||||||||||||
Payments for redemption of preferred stock
|
(311,804
|
)
|
-
|
-
|
-
|
(311,804
|
)
|
|||||||||||||
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
33,538,886
|
13,341,276
|
20,591,483
|
(32,234,410
|
)
|
35,237,235
|
||||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
11,953,590
|
(1,210,001
|
)
|
-
|
-
|
10,743,589
|
||||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||||||
BEGINNING OF THE PERIOD
|
25,035,579
|
2,461,465
|
-
|
-
|
27,497,044
|
|||||||||||||||
END OF THE PERIOD
|
$
|
36,989,169
|
$
|
1,251,464
|
$
|
-
|
$
|
-
|
$
|
38,240,633
|
For the six months ended June 30, 2012
|
Parent
|
Guarantor Sub
|
Non-Guarantor Sub
|
Eliminations
|
Consolidated
|
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||||||
Net income
|
$
|
(1,851,130
|
)
|
$
|
132,096
|
$
|
3,949,640
|
$
|
(4,091,736
|
)
|
$
|
(1,851,130
|
)
|
|||||||
Adjustments to reconcile net income to cash:
|
||||||||||||||||||||
Equity income of subsidiaries
|
(8,985,743
|
)
|
(238,602
|
)
|
5,132,609
|
4,091,736
|
-
|
|||||||||||||
(Gain) loss on life settlements
|
-
|
999,677
|
(11,989,926
|
)
|
-
|
(10,990,249
|
)
|
|||||||||||||
Amortization of deferred financing and issuance costs
|
46,622
|
746,387
|
116,448
|
-
|
909,457
|
|||||||||||||||
Deferred income taxes
|
(529,860
|
)
|
-
|
-
|
-
|
(529,860
|
)
|
|||||||||||||
Preferred stock issued for dividends
|
421,010
|
-
|
-
|
-
|
421,010
|
|||||||||||||||
(Increase) decrease in operating assets:
|
||||||||||||||||||||
Other assets
|
(13,027
|
)
|
1,217,186
|
(146,874
|
)
|
-
|
1,057,285
|
|||||||||||||
Increase (decrease) in operating liabilities:
|
||||||||||||||||||||
Accounts payable and other accrued expenses
|
606,991
|
39,087
|
13,056
|
-
|
659,134
|
|||||||||||||||
NET CASH FLOWS USED IN OPERATING ACTIVITIES
|
(10,305,137
|
)
|
2,895,831
|
(2,915,047
|
)
|
-
|
(10,324,353
|
)
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||
Investment in life settlements
|
-
|
-
|
(2,622,030
|
)
|
-
|
(2,622,030
|
)
|
|||||||||||||
Proceeds from settlement of life settlements
|
-
|
-
|
416,665
|
-
|
416,665
|
|||||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES
|
-
|
-
|
(2,205,365
|
)
|
-
|
(2,205,365
|
)
|
|||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||
Net proceeds from revolving credit facility
|
-
|
-
|
6,000,000
|
-
|
6,000,000
|
|||||||||||||||
Proceeds from issuance of Series I Secured notes payable
|
-
|
50,000
|
-
|
-
|
50,000
|
|||||||||||||||
Payments for redemption of Series I Secured notes payable
|
-
|
(3,468,957
|
)
|
-
|
-
|
(3,468,957
|
)
|
|||||||||||||
Proceeds from issuance of debentures
|
15,757,086
|
-
|
-
|
-
|
15,757,086
|
|||||||||||||||
Payments from issuance of debentures
|
(712,587
|
)
|
-
|
-
|
-
|
(712,587
|
)
|
|||||||||||||
Proceeds (payments) from restricted cash
|
-
|
822,227
|
(879,588
|
)
|
-
|
(57,361
|
)
|
|||||||||||||
Proceeds from issuance of preferred stock
|
5,787,375
|
-
|
-
|
-
|
5,787,375
|
|||||||||||||||
Payments for redemption of preferred stock
|
(1,609,362
|
)
|
-
|
-
|
-
|
(1,609,362
|
)
|
|||||||||||||
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
19,222,512
|
(2,569,730
|
)
|
5,120,412
|
-
|
21,746,194
|
||||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
8,917,375
|
299,101
|
-
|
-
|
9,216,476
|
|||||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||||||
BEGINNING OF THE PERIOD
|
1,746,456
|
131,893
|
-
|
-
|
1,878,349
|
|||||||||||||||
END OF THE PERIOD
|
$
|
10,663,831
|
$
|
430,994
|
$
|
-
|
$
|
-
|
$
|
11,094,825
|
For the three months ended June 30, 2013
|
Parent
|
Guarantor Sub
|
Non-Guarantor Sub
|
Eliminations
|
Consolidated
|
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||||||
Net income
|
$
|
1,756,690
|
$
|
4,543,289
|
$
|
5,014,494
|
$
|
(9,557,783
|
)
|
$
|
1,756,690
|
|||||||||
Adjustments to reconcile net income to cash:
|
||||||||||||||||||||
Equity income of subsidiaries
|
4,543,289
|
5,014,494
|
-
|
(9,557,783
|
)
|
-
|
||||||||||||||
(Gain) loss on life settlements
|
-
|
-
|
(7,449,180
|
)
|
-
|
(7,449,180
|
)
|
|||||||||||||
Amortization of deferred financing and issuance costs
|
344,482
|
161,926
|
330,725
|
-
|
837,133
|
|||||||||||||||
Deferred income taxes
|
1,802,920
|
-
|
-
|
-
|
1,802,920
|
|||||||||||||||
Preferred stock issued for dividends
|
178,235
|
-
|
-
|
-
|
178,235
|
|||||||||||||||
(Increase) decrease in operating assets:
|
||||||||||||||||||||
Other assets
|
(13,002,552
|
)
|
(13,654,889
|
)
|
(4,000,000
|
)
|
26,493,437
|
(4,164,004
|
) | |||||||||||
Increase (decrease) in operating liabilities:
|
||||||||||||||||||||
Accounts payable and other accrued expenses
|
639,763
|
(12,024
|
)
|
(225,000
|
)
|
-
|
402,739
|
|||||||||||||
NET CASH FLOWS USED IN OPERATING ACTIVITIES
|
(3,737,173
|
)
|
(3,947,204
|
)
|
(6,328,961
|
)
|
7,377,871
|
(6,635,467
|
)
|
|||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||
Investment in life settlements
|
-
|
-
|
(2,972,944
|
)
|
-
|
(2,972,944
|
)
|
|||||||||||||
Proceeds from settlement of life settlements
|
-
|
-
|
1,382,152
|
-
|
1,382,152
|
|||||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES
|
-
|
-
|
(1,590,792
|
)
|
-
|
(1,590,792
|
)
|
|||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||
Payments for redemption of Series I Secured notes payable
|
-
|
(2,423,052
|
)
|
-
|
-
|
(2,423,052
|
)
|
|||||||||||||
Proceeds from issuance of debentures
|
18,588,867
|
-
|
-
|
-
|
18,588,867
|
|||||||||||||||
Payments from issuance and redemption of debentures
|
(3,033,303
|
)
|
-
|
-
|
-
|
(3,033,303
|
)
|
|||||||||||||
Proceeds (payments) from restricted cash
|
-
|
(2,222,476
|
)
|
4,382,809
|
-
|
2,160,333
|
||||||||||||||
Issuance of member capital
|
-
|
3,840,927
|
3,536,944
|
(7,377,871
|
)
|
-
|
||||||||||||||
Repurchase of common stock
|
(3,252,400
|
)
|
-
|
-
|
-
|
(3,252,400
|
)
|
|||||||||||||
Payments for redemption of preferred stock
|
(125,135
|
)
|
-
|
-
|
-
|
(125,135
|
)
|
|||||||||||||
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
12,178,029
|
(804,601
|
)
|
7,919,753
|
(7,377,871
|
)
|
11,915,310
|
|||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
8,440,856
|
(4,751,805
|
)
|
-
|
-
|
3,689,051
|
||||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||||||
BEGINNING OF THE PERIOD
|
28,548,313
|
6,003,269
|
-
|
-
|
34,551,582
|
|||||||||||||||
END OF THE PERIOD
|
$
|
36,989,169
|
$
|
1,251,464
|
$
|
-
|
$
|
-
|
$
|
38,240,633
|
For the three months ended June 30, 2012
|
Parent
|
Guarantor Sub
|
Non-Guarantor Sub
|
Eliminations
|
Consolidated
|
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||||||
Net income
|
$
|
301,699
|
$
|
2,504,081
|
$
|
4,102,901
|
$
|
(6,606,982
|
)
|
$
|
301,699
|
|||||||||
Adjustments to reconcile net income to cash:
|
||||||||||||||||||||
Equity income of subsidiaries
|
(7,602,533
|
)
|
(352,750
|
)
|
1,348,301
|
6,606,982
|
-
|
|||||||||||||
Gain on life settlements
|
-
|
(66,551
|
)
|
(4,509,390
|
)
|
-
|
(4,575,941
|
)
|
||||||||||||
Amortization of deferred financing and issuance costs
|
46,622
|
237,451
|
58,224
|
-
|
342,297
|
|||||||||||||||
Deferred income taxes
|
609,588
|
-
|
-
|
-
|
609,588
|
|||||||||||||||
Preferred stock issued for dividends
|
294,935
|
-
|
-
|
-
|
294,935
|
|||||||||||||||
(Increase) decrease in operating assets:
|
||||||||||||||||||||
Other assets
|
(42,969
|
)
|
(95,216
|
)
|
(159,875
|
)
|
-
|
(298,060
|
)
|
|||||||||||
Increase (decrease) in operating liabilities:
|
||||||||||||||||||||
Accounts payable and other accrued expenses
|
152,299
|
(44,990
|
)
|
(5,857
|
)
|
-
|
101,452
|
|||||||||||||
NET CASH FLOWS USED IN OPERATING ACTIVITIES
|
(6,240,359
|
)
|
2,182,025
|
(834,304
|
)
|
-
|
(3,224,030
|
)
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||
Investment in life settlements
|
-
|
-
|
(1,468,770
|
)
|
-
|
(1,468,770
|
)
|
|||||||||||||
Proceeds from settlement of life settlements
|
-
|
-
|
416,665
|
-
|
416,665
|
|||||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES
|
-
|
-
|
(1,052,105
|
)
|
-
|
(1,052,105
|
)
|
|||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||
Net proceeds from revolving credit facility
|
-
|
-
|
3,500,000
|
-
|
3.500,000
|
|||||||||||||||
Proceeds from issuance of Series I Secured notes payable
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Payments for redemption of Series I Secured notes payable
|
-
|
(1,918,420
|
)
|
-
|
-
|
(1,918,420
|
)
|
|||||||||||||
Proceeds from issuance of debentures
|
12,695,213
|
-
|
-
|
-
|
12,695,213
|
|||||||||||||||
Payments from issuance of debentures
|
(712,587
|
)
|
-
|
-
|
-
|
(712,587
|
)
|
|||||||||||||
Payments from redemption of debentures
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Payments from restricted cash
|
-
|
-
|
(3,282,199
|
)
|
-
|
(3,282,199
|
)
|
|||||||||||||
Proceeds from issuance of preferred stock
|
1,350,910
|
-
|
-
|
-
|
1,350,910
|
|||||||||||||||
Payments for redemption of preferred stock
|
(810,722
|
)
|
-
|
-
|
-
|
(810,722
|
)
|
|||||||||||||
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
12,522,814
|
(1,918,420
|
)
|
217,801
|
-
|
10,822,195
|
||||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
6,282,455
|
263,605
|
-
|
-
|
6,546,060
|
|||||||||||||||
CASH AND CASH EQUIVALENTS
|
||||||||||||||||||||
BEGINNING OF THE PERIOD
|
4,381,376
|
167,389
|
-
|
-
|
4,548,765
|
|||||||||||||||
END OF THE PERIOD
|
$
|
10,663,831
|
$
|
430,994
|
$
|
-
|
$
|
-
|
$
|
11,094,825
|
June 30, 2013
|
December 31, 2012
|
|||||||
Life insurance company
|
%
|
%
|
||||||
Company A
|
15.18
|
16.96
|
||||||
Company B
|
12.14
|
13.80
|
||||||
Company C
|
10.33
|
11.36
|
June 30, 2013
|
December 31, 2012
|
|||||||
State of residence
|
%
|
%
|
||||||
California
|
29.88
|
28.44
|
||||||
Florida
|
12.45
|
11.85
|
||||||
New York
|
12.03
|
13.27
|
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
June 30, 2013
|
December 31, 2012
|
|||
11.84%
|
12.08%
|
●
|
changes in the secondary market for life insurance;
|
●
|
our limited operating history;
|
●
|
the valuation of assets reflected on our financial statements;
|
●
|
the reliability of assumptions underlying our actuarial models;
|
●
|
our reliance of debt financing;
|
●
|
risks relating to the validity and enforceability of the life insurance policies we purchase;
|
●
|
our reliance on information provided and obtained by third parties;
|
●
|
federal and state regulatory matters;
|
●
|
additional expenses, not reflected in our operating history, related to being a public reporting company;
|
●
|
competition in the secondary life insurance market;
|
●
|
the relative illiquidity of life insurance policies;
|
●
|
life insurance company credit exposure;
|
●
|
economic outlook;
|
●
|
performance of our investments in life insurance policies;
|
●
|
financing requirements;
|
●
|
litigation risks; and
|
●
|
restrictive covenants contained in borrowing agreements.
|
●
|
Policy Benefits Realized. We recognize the difference between the death benefits and carrying values of the policy when an insured event has occurred and the Company determines that settlement and ultimate collection of the death benefits is realizable and reasonably assured. Revenue from a transaction must meet both criteria in order to be recognized. We generally collect the face value of the life insurance policy from the insurance company within 45 days of the insured’s mortality.
|
●
|
Sale of a Life Insurance Policy or a Portfolio of Life Insurance Policies. In an event of a sale of a policy the Company recognizes gain or loss as the difference between the sale price and the carrying value of the policy on the date of the receipt of payment on such sale.
|
●
|
Change in Fair Value of Life Insurance Policies. We have elected to carry our investments in life insurance policies at fair value in accordance with ASC 325-30,Investments in Life Insurance Contracts. Accordingly, we value our investments in life insurance policies each reporting period in accordance with the fair value principles discussed herein, which includes the expected payment of premiums for future periods.
|
●
|
Selling, General and Administrative Expenses. We recognize and record expenses incurred in the operations of the purchasing and servicing of life insurance policies. These expenses include professional fees, salaries, and sales and marketing expenditures.
|
●
|
Interest Expense. We recognize and record interest expenses associated with the costs of financing our life insurance portfolio for the current period. These expenses include interest paid to our senior lender under our revolving credit facility, as well as all interest paid on our debentures and other outstanding indebtedness such as our subsidiary secured notes and dividends on convertible, redeemable preferred stock. When we issue long-term indebtedness, we amortize the issuance costs associated with such indebtedness over the outstanding term of the financing, and classify it as interest expense.
|
Years Ending December 31,
|
||||
Six months ending December 31, 2013
|
$ | 9,358,000 | ||
2014
|
12,561,000 | |||
2015
|
6,675,000 | |||
2016
|
1,802,000 | |||
2017
|
4,085,000 | |||
Thereafter
|
818,000 | |||
$ | 35,299,000 |
Years Ending December 31,
|
||||
Six months ending December 31, 2013
|
$ | 11,839,000 | ||
2014
|
15,272,000 | |||
2015
|
30,085,000 | |||
2016
|
16,359,000 | |||
2017
|
6,529,000 | |||
Thereafter
|
15,774,000 | |||
$ | 95,858,000 |
Issuer/Borrower
|
Principal Amount
Outstanding
|
Weighted Average
Interest Rate
|
||||||
GWG Holdings, Inc. - Renewable Secured Debentures
|
$
|
95,858,000
|
7.58
|
%
|
||||
GWG Life Settlements, LLC -Series I Notes, secured
|
35,299,000
|
8.27
|
%
|
|||||
GWG DLP Funding II, LLC - Revolving credit facility
|
79,000,000
|
6.25
|
%
|
|||||
Total
|
$
|
210,157,000
|
7.20
|
%
|
As of June 30, 2013
|
||||||||||||||||||||
Portfolio Discount Rate
|
11% | 12% | 13% | 14% | 15% | |||||||||||||||
Value of portfolio
|
$ | 203,065,367 | $ | 192,218,326 | $ | 182,255,258 | $ | 173,084,553 | $ | 164,625,845 | ||||||||||
Cash and cash equivalents
|
42,704,500 | 42,704,500 | 42,704,500 | 42,704,500 | 42,704,500 | |||||||||||||||
Total assets
|
245,769,867 | 234,922,826 | 224,959,758 | 215,789,053 | 207,330,345 | |||||||||||||||
Revolving credit facility Autobahn/DZ Bank
|
79,000,000 | 79,000,000 | 79,000,000 | 79,000,000 | 79,000,000 | |||||||||||||||
Net after revolving credit facility
|
166,769,867 | 155,922,826 | 145,959,758 | 136,789,053 | 128,330,345 | |||||||||||||||
Series I Secured notes and Renewable Secured Debentures
|
131,157,025 | 131,157,025 | 131,157,025 | 131,157,025 | 131,157,025 | |||||||||||||||
Net after Series I Secured notes and Renewable Secured Debentures
|
35,612,842 | 24,765,801 | 14,802,733 | 5,632,028 | (2,827,430 | ) | ||||||||||||||
Impairment to Series I Secured notes and Renewable Secured Debentures
|
No impairment
|
No impairment
|
No impairment
|
No impairment
|
Impairment
|
Year
|
Premiums and Servicing
|
|||
Six months ending December 31, 2013
|
$ | 10,561,000 | ||
2014
|
21,495,000 | |||
2015
|
23,275,000 | |||
2016
|
25,511,000 | |||
2017
|
28,046,000 | |||
Total
|
$ | 108,888,000 |
Six months ending December 31, 2013
|
$ | 49,000 | ||
2014
|
$ | 104,000 | ||
2015
|
$ | 70,000 | ||
Total
|
$ | 223,000 |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
GAAP net income (loss)
|
$ | 1,757,000 | $ | 302,000 | $ | 1,824,000 | $ | (1,851,000 | ) | |||||||
Unrealized fair value gain (1)
|
(7,449,000 | ) | (4,576,000 | ) | (18,944,000 | ) | (9,367,000 | ) | ||||||||
Adjusted cost basis increase (2)
|
8,641,000 | 5,540,000 | 18,897,000 | 11,309,000 | ||||||||||||
Accrual of unrealized actuarial gain (3)
|
5,165,000 | 3,783,000 | 10,198,000 | 7,839,000 | ||||||||||||
Total adjusted non-GAAP income (4)
|
$ | 8,114,000 | $ | 5,049,000 | $ | 11,975,000 | $ | 7,930,000 |
(1)
|
Reversal of unrealized fair value gain of life insurance policies for current period.
|
(2)
|
Adjusted cost basis is increased to include those acquisition and servicing expenses which are not capitalized by GAAP.
|
(3)
|
Accrual of actuarial gain at expected internal rate of return based on investment cost basis for the period.
|
(4)
|
We must maintain an annual positive consolidated net income, calculated on a non-GAAP basis, to maintain compliance with our revolving credit facility with DZ Bank/Autobahn.
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Income
|
||||||||||||||||
Investments in life settlement contracts (Unrealized)
|
$
|
5,165,000
|
$
|
3,783,000
|
10,198,000
|
7,839,000
|
||||||||||
Investments in life settlement contracts (Realized)
|
5,218,000
|
4,083,000
|
7,728,000
|
4,083,000
|
||||||||||||
Origination fees and other income
|
3,265,000
|
337,000
|
4,711,000
|
487,000
|
||||||||||||
Total Income
|
13,648,000
|
8,203,000
|
22,637,000
|
12,409,000
|
||||||||||||
Expenses
|
||||||||||||||||
Operations
|
1,873,000
|
2,144,000
|
5,915,000
|
4,100,000
|
||||||||||||
Facility, Series I secured notes and renewable secured debentures marketing and deferred financing costs
|
1,859,000
|
400,000
|
2,379,000
|
909,000
|
||||||||||||
Total Expenses
|
3,732,000
|
2,544,000
|
8,294,000
|
5,009,000
|
||||||||||||
Net income before tax
|
9,916,000
|
5,659,000
|
14,343,000
|
7,400,000
|
||||||||||||
Income tax expense (benefit)
|
1,802,000
|
610,000
|
2,368,000
|
(530,000
|
)
|
|||||||||||
Net Income
|
8,114,000
|
5,049,000
|
11,975,000
|
7,930,000
|
||||||||||||
Income per share
|
||||||||||||||||
Basic and diluted
|
$
|
0.81
|
$
|
0.51
|
$
|
1.25
|
$
|
0.79
|
||||||||
Fully diluted assuming conversion of preferred stock
|
$
|
0.54
|
$
|
0.51
|
$
|
0.82
|
$
|
0.79
|
||||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic and diluted
|
9,969,989
|
9,989,000
|
9,548,205
|
9,989,000
|
||||||||||||
Fully diluted assuming conversion of preferred stock
|
15,022,198
|
9,989,000
|
14,580,506
|
9,989,000
|
As of
June 30,
2013
|
As of
December 31,
2012
|
|||||||
GAAP net worth (1)
|
$
|
21,166,000
|
$
|
22,644,000
|
||||
Less intangible assets
|
(6,033,000
|
)
|
(3,650,000
|
)
|
||||
GAAP tangible net worth
|
15,133,000
|
18,994,000
|
||||||
Unrealized fair value gain (2)
|
(94,350,000
|
)
|
(75,406,000
|
)
|
||||
Adjusted cost basis increase (3)
|
85,408,000
|
67,123,000
|
||||||
Accrual of unrealized actuarial gain (4)
|
38,042,000
|
27,845,000
|
||||||
Total adjusted non-GAAP tangible net worth (5)
|
$
|
44,233,000
|
$
|
38,556,000
|
(1)
|
Includes termination of redeemable member’s interest prior to corporate conversion and preferred stock classified as temporary equity.
|
(2)
|
Reversal of cumulative unrealized fair value gain or loss of life insurance policies.
|
(3)
|
Adjusted cost basis is increased by acquisition and servicing expenses which are not capitalized under GAAP.
|
(4)
|
Accrual of cumulative actuarial gain at expected internal rate of return based on investment cost basis.
|
(5)
|
We must maintain a total adjusted non-GAAP tangible net worth of $15 million to maintain compliance with our revolving credit facility with DZ Bank/Autobahn.
|
As of
June 30,
2013
|
As of
December 31,
2012
|
|||||||
Weighted-average expected IRR (1)
|
12.54
|
%
|
12.84
|
%
|
||||
Weighted-average revolving credit facility interest rate (2)
|
6.27
|
%
|
2.02
|
%
|
||||
Excess spread (3)
|
6.27
|
%
|
10.82
|
%
|
||||
Total weighted-average interest rate on indebtedness for borrowed money (4)
|
7.20
|
%
|
5.39
|
%
|
||||
Total excess spread
|
5.34
|
%
|
7.45
|
%
|
(1)
|
This represents the weighted-average expected internal rate of return of the life insurance policies as of the measurement date based upon our investment cost basis of the insurance policies and the expected cash flows from the life insurance portfolio. The expected internal rate of return as of December 31, 2012 includes an adjustment to increase, by an average of 8.67%, any life expectancy provided by 21st Services. As a result of this adjustment, our expected internal rate of return at December 31, 2012 decreased from 14.27% to 12.84%. Our investment cost basis is calculated as our cash investment in the life insurance policies, without regard to GAAP-based fair value measurements, and is set forth below:
|
Investment Cost Basis
|
As of
June 30,
2013
|
As of
December 31,
2012
|
||||||
GAAP fair value
|
$
|
193,892,000
|
$
|
164,317,000
|
||||
Unrealized fair value gain (A)
|
(94,350,000
|
)
|
(75,406,000
|
)
|
||||
Adjusted cost basis increase (B)
|
85,407,000
|
67,123,000
|
||||||
Investment cost basis (C)
|
$
|
184,949,000
|
$
|
156,034,000
|
(A)
|
This represents the reversal of cumulative unrealized GAAP fair value gain of life insurance policies.
|
|
(B)
|
Adjusted cost basis is increased to include those acquisition and servicing expenses that are not capitalized by GAAP.
|
|
(C)
|
This is the full cash investment cost basis in life insurance policies from which our expected internal rate of return is calculated.
|
(2)
|
This is the weighted-average revolving credit relating to our revolving credit facility interest rate as of the measurement date.
|
(3)
|
We must maintain an excess spread of 2.00% relating to our revolving credit facility to maintain compliance under such facility.
|
(4)
|
Represents the weighted-average interest rate paid on all outstanding indebtedness as of the measurement date, determined as follows:
|
Outstanding Indebtedness
|
As of
June 30, 2013
|
As of
December 31, 2012
|
||||||
Revolving credit facility
|
$
|
79,000,000
|
$
|
71,000,000
|
||||
Series I Subsidiary secured notes
|
35,299,000
|
38,570,000
|
||||||
Renewable Secured Debentures
|
95,858,000
|
57,609,000
|
||||||
Total
|
$
|
210,157,000
|
$
|
167,179,000
|
Interest Rates on Indebtedness
|
|||||||||
Revolving credit facility
|
6.27 | % | 2.02 |
%
|
|||||
Series I subsidiary secured notes
|
8.27 | % | 8.22 |
%
|
|||||
Renewable Secured Debentures
|
7.58 | % | 7.65 |
%
|
|||||
Weighted-average interest rates on indebtedness
|
7.20 | % | 5.39 |
%
|
As of
June 30, 2013
|
As of
December 31, 2012
|
|||||||
Life insurance portfolio policy benefits
|
$
|
650,655,000
|
$
|
572,246,000
|
||||
Discount rate of future cash flows
|
7.20
|
%
|
5.39
|
%
|
||||
Net present value of life insurance portfolio policy benefits
|
$
|
254,394,000
|
$
|
248,702,000
|
||||
Cash and cash equivalents
|
42,704,000
|
29,590,000
|
||||||
Total Coverage
|
297,098,000
|
278,292,000
|
||||||
Revolving credit facility
|
79,000,000
|
71,000,000
|
||||||
Series I Subsidiary secured notes
|
35,299,000
|
38,570,000
|
||||||
Renewable Secured Debentures
|
95,858,000
|
57,609,000
|
||||||
Total Indebtedness
|
$
|
210,157,000
|
$
|
167,179,000
|
||||
Debt Coverage Ratio
|
70.74
|
%
|
60.07
|
%
|
||||
Subordination Ratio
|
26.59
|
%
|
25.51
|
%
|
Total portfolio face value of policy benefits
|
$
|
650,655,000
|
|
Average face value per policy
|
$
|
2,700,000
|
|
Average face value per insured life
|
$
|
2,958,000
|
|
Average age of insured (yrs.) *
|
81.7
|
||
Average life expectancy estimate (yrs.) *
|
7.53
|
||
Total number of policies
|
241
|
||
Demographics
|
66% Males; 34% Females
|
||
Number of smokers
|
No insureds are smokers
|
||
Largest policy as % of total portfolio
|
1.54
|
%
|
|
Average policy as % of total portfolio
|
0.41
|
%
|
|
Average Annual Premium as % of face value
|
3.16
|
%
|
Min Age
|
Max Age
|
Policy Benefits
|
Distribution
|
|||||||
65
|
69
|
$
|
1,156,000
|
0.18
|
%
|
|||||
70
|
74
|
50,717,000
|
7.80
|
%
|
||||||
75
|
79
|
175,961,000
|
27.04
|
%
|
||||||
80
|
84
|
231,435,000
|
35.57
|
%
|
||||||
85
|
89
|
183,315,000
|
28.17
|
%
|
||||||
90
|
95
|
8,071,000
|
1.24
|
%
|
||||||
Total
|
$
|
650,655,000
|
100.00
|
%
|
Min Age
|
Max Age
|
Policies
|
Distribution
|
|||||||
65
|
69
|
3
|
1.24
|
%
|
||||||
70
|
74
|
18
|
7.47
|
%
|
||||||
75
|
79
|
60
|
24.90
|
%
|
||||||
80
|
84
|
90
|
37.35
|
%
|
||||||
85
|
89
|
65
|
26.97
|
%
|
||||||
90
|
95
|
5
|
2.07
|
%
|
||||||
Total
|
241
|
100.00
|
%
|
Min LE (Months)
|
Max LE (Months)
|
Policy Benefits
|
Distribution
|
|||||||
144
|
177
|
$
|
26,450,000
|
4.07
|
%
|
|||||
120
|
143
|
62,296,000
|
9.57
|
%
|
||||||
96
|
119
|
194,159,000
|
29.84
|
%
|
||||||
72
|
95
|
180,952,000
|
27.81
|
%
|
||||||
48
|
71
|
156,084,000
|
23.99
|
%
|
||||||
24
|
47
|
30,714,000
|
4.72
|
%
|
||||||
Total
|
$
|
650,655,000
|
100.00
|
%
|
Primary Disease Category
|
Policy Benefits
|
Distribution
|
||||||
Cancer
|
$
|
40,400,000
|
6.21
|
%
|
||||
Cardiovascular
|
135,338,000
|
20.80
|
%
|
|||||
Cerebrovascular
|
37,485,000
|
5.76
|
%
|
|||||
Dementia
|
26,885,000
|
4.13
|
%
|
|||||
Diabetes
|
35,967,000
|
5.53
|
%
|
|||||
Multiple
|
155,510,000
|
23.90
|
%
|
|||||
Neurological Disorders
|
13,000,000
|
2.00
|
%
|
|||||
No Disease
|
69,986,000
|
10.76
|
%
|
|||||
Other
|
90,384,000
|
13.89
|
%
|
|||||
Respiratory Diseases
|
45,700,000
|
7.02
|
%
|
|||||
Total Policy Benefits
|
$
|
650,655,000
|
100.00
|
%
|
Rank
|
Policy Benefits
|
Percentage
of Policy
Benefit Amt.
|
Insurance Company
|
Ins. Co. S&P Rating
|
||||||||
1
|
$
|
98,780,000
|
15.18%
|
AXA Equitable Life Insurance Company
|
A+
|
|||||||
2
|
$
|
78,995,000
|
12.14%
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
|||||||
3
|
$
|
67,193,000
|
10.33%
|
Transamerica Life Insurance Company
|
AA-
|
|||||||
4
|
$
|
55,769,000
|
8.57%
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
|||||||
5
|
$
|
51,715,000
|
7.95%
|
ING Life Insurance and Annuity Company
|
A-
|
|||||||
6
|
$
|
39,250,000
|
6.03%
|
American General Life Insurance Company
|
A+
|
|||||||
7
|
$
|
32,735,000
|
5.03%
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
|||||||
8
|
$
|
25,450,000
|
3.91%
|
West Coast Life Insurance Company
|
AA-
|
|||||||
9
|
$
|
22,333,000
|
3.43%
|
Metropolitan Life Insurance Company
|
AA-
|
|||||||
10
|
$
|
19,200,000
|
2.95%
|
Lincoln Benefit Life Company
|
A+
|
Face Amount
|
Sex
|
Age (1)
|
LE (2)
|
Carrier
|
S&P Rating
|
|||||||||||||
$
|
1,100,000
|
M
|
92
|
38.7
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
1,770,726
|
F
|
92
|
47.7
|
Aviva Life Insurance Company
|
A-
|
||||||||||||
$
|
3,200,000
|
M
|
92
|
75.9
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
F
|
91
|
48.7
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
F
|
90
|
25.1
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
2,500,000
|
M
|
89
|
52.0
|
Columbus Life Insurance Company
|
AA+
|
||||||||||||
$
|
5,000,000
|
F
|
89
|
74.4
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
2,000,000
|
F
|
89
|
36.6
|
Pruco Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
F
|
89
|
41.0
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
1,000,000
|
F
|
89
|
29.6
|
Protective Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
88
|
49.5
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
1,500,000
|
F
|
88
|
69.6
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
F
|
88
|
52.1
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
600,000
|
F
|
88
|
70.1
|
Columbus Life Insurance Company
|
AA+
|
Face Amount | Sex | Age (1) | LE (2) | Carrier | S&P Rating | |||||||||||||
$
|
1,000,000
|
F
|
87
|
70.1
|
United of Omaha Life Insurance Company
|
A+
|
||||||||||||
$
|
3,500,000
|
F
|
87
|
67.4
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
2,500,000
|
F
|
87
|
72.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
2,500,000
|
F
|
87
|
72.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
F
|
87
|
71.3
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
5,000,000
|
F
|
87
|
43.6
|
Lincoln National Life Insurance Company
|
AA-
|
||||||||||||
$
|
715,000
|
F
|
87
|
80.8
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,203,520
|
M
|
87
|
56.8
|
Columbus Life Insurance Company
|
AA+
|
||||||||||||
$
|
1,350,000
|
F
|
87
|
74.6
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
87
|
40.7
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
3,500,000
|
F
|
87
|
68.9
|
Lincoln National Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
F
|
86
|
53.5
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
2,500,000
|
F
|
86
|
66.9
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
2,500,000
|
M
|
86
|
53.0
|
Pacific Life Insurance Company
|
A+
|
||||||||||||
$
|
4,000,000
|
F
|
86
|
88.5
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
86
|
83.1
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,500,000
|
M
|
86
|
55.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
1,500,000
|
M
|
86
|
55.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
86
|
75.7
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
500,000
|
M
|
86
|
70.2
|
Lincoln National Life Insurance Company
|
AA-
|
||||||||||||
$
|
4,785,380
|
F
|
86
|
56.7
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
8,985,000
|
M
|
86
|
45.6
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
1,803,455
|
F
|
86
|
67.8
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,529,270
|
F
|
86
|
67.8
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
86
|
58.9
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
2,225,000
|
F
|
86
|
90.4
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
F
|
86
|
94.3
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
1,500,000
|
M
|
86
|
50.8
|
Union Central Life Insurance Company
|
A+
|
||||||||||||
$
|
100,000
|
M
|
86
|
39.1
|
Protective Life Insurance Company
|
AA-
|
||||||||||||
$
|
100,000
|
M
|
86
|
39.1
|
Protective Life Insurance Company
|
AA-
|
||||||||||||
$
|
100,000
|
M
|
86
|
39.1
|
Protective Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
86
|
57.0
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
$
|
3,000,000
|
M
|
86
|
54.9
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
1,682,773
|
M
|
85
|
84.1
|
Hartford Life and Annuity Insurance Company
|
BBB+
|
||||||||||||
$
|
500,000
|
F
|
85
|
60.0
|
Sun Life Assurance Company of Canada (U.S.)
|
BBB
|
||||||||||||
$
|
5,000,000
|
F
|
85
|
71.9
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
85
|
59.4
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,200,000
|
M
|
85
|
79.2
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
250,000
|
M
|
85
|
79.4
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
85
|
103.1
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
5,570,000
|
F
|
85
|
65.3
|
ING Life Insurance and Annuity Company
|
A-
|
Face Amount | Sex | Age (1) | LE (2) | Carrier | S&P Rating | |||||||||||||
$
|
5,570,000
|
F
|
85
|
65.3
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
1,000,000
|
F
|
85
|
73.9
|
New York Life Insurance Company
|
AA+
|
||||||||||||
$
|
5,000,000
|
F
|
85
|
50.1
|
Penn Mutual Life Insurance Company
|
AA-
|
||||||||||||
$
|
10,000,000
|
F
|
85
|
117.5
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,500,000
|
M
|
85
|
68.1
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
F
|
85
|
57.9
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
85
|
57.9
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
800,000
|
M
|
85
|
71.0
|
National Western Life Insurance Company
|
A
|
||||||||||||
$
|
200,000
|
M
|
85
|
61.1
|
Lincoln Benefit Life Company
|
A+
|
||||||||||||
$
|
4,445,467
|
M
|
85
|
68.5
|
Penn Mutual Life Insurance Company
|
AA-
|
||||||||||||
$
|
7,500,000
|
M
|
85
|
50.8
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,600,000
|
F
|
85
|
90.9
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
85
|
54.1
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
85
|
80.8
|
Lincoln National Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
85
|
98.6
|
U.S. Financial Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
84
|
71.6
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
84
|
71.6
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
84
|
67.5
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,365,000
|
F
|
84
|
116.6
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
F
|
84
|
105.0
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
2,000,000
|
M
|
84
|
102.6
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
8,500,000
|
M
|
84
|
82.8
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
500,000
|
M
|
84
|
102.2
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
84
|
52.4
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,800,000
|
M
|
84
|
56.2
|
John Hancock Variable Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
84
|
115.4
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
2,000,000
|
M
|
84
|
115.4
|
ING Life Insurance and Annuity Company
|
A-
|
$
|
2,000,000
|
M
|
84
|
115.4
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
1,500,000
|
M
|
83
|
67.5
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,750,000
|
M
|
83
|
94.5
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
83
|
87.7
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
83
|
105.0
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
3,000,000
|
F
|
83
|
95.6
|
Sun Life Assurance Company of Canada (U.S.)
|
BBB
|
$
|
829,022
|
F
|
83
|
34.5
|
Hartford Life and Annuity Insurance Company
|
BBB+
|
||||||||||||
$
|
1,500,000
|
M
|
83
|
74.1
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
83
|
90.0
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
1,500,000
|
M
|
83
|
70.1
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
1,500,000
|
M
|
83
|
70.1
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
3,000,000
|
F
|
83
|
114.0
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
750,000
|
M
|
83
|
35.6
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
750,000
|
M
|
83
|
35.6
|
ING Life Insurance and Annuity Company
|
A-
|
Face Amount | Sex | Age (1) | LE (2) | Carrier | S&P Rating | |||||||||||||
$
|
1,000,000
|
M
|
83
|
48.2
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
4,000,000
|
F
|
83
|
61.4
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
5,000,000
|
F
|
83
|
126.5
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
2,000,000
|
M
|
83
|
79.4
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,750,000
|
M
|
83
|
79.4
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
2,000,000
|
M
|
83
|
46.0
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
F
|
82
|
117.6
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
F
|
82
|
97.7
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
6,000,000
|
F
|
82
|
133.1
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
1,500,000
|
F
|
82
|
116.0
|
Lincoln Benefit Life Company
|
A+
|
||||||||||||
$
|
500,000
|
F
|
82
|
116.8
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
750,000
|
M
|
82
|
112.6
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
4,000,000
|
M
|
82
|
54.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
82
|
100.2
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
82
|
130.7
|
Lincoln Benefit Life Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
82
|
86.2
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
5,000,000
|
M
|
82
|
73.0
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,700,000
|
M
|
82
|
69.2
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
7,600,000
|
F
|
82
|
116.6
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,500,000
|
F
|
82
|
80.8
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
500,000
|
M
|
82
|
58.4
|
Genworth Life Insurance Company
|
A-
|
||||||||||||
$
|
3,000,000
|
F
|
82
|
59.1
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,703,959
|
M
|
82
|
79.0
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
82
|
71.8
|
Hartford Life and Annuity Insurance Company
|
BBB+
|
||||||||||||
$
|
3,500,000
|
F
|
82
|
114.1
|
Lincoln Benefit Life Company
|
A+
|
$
|
10,000,000
|
F
|
82
|
74.2
|
American National Insurance Company
|
A
|
||||||||||||
$
|
500,000
|
M
|
82
|
58.5
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
81
|
75.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
500,000
|
M
|
81
|
119.0
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
81
|
56.4
|
National Life Insurance Company
|
A
|
||||||||||||
$
|
3,000,000
|
M
|
81
|
71.9
|
U.S. Financial Life Insurance Company
|
A+
|
||||||||||||
$
|
4,200,000
|
F
|
81
|
147.7
|
Transamerica Life Insurance Company
|
AA-
|
$
|
1,900,000
|
M
|
81
|
85.2
|
American National Insurance Company
|
A
|
||||||||||||
$
|
500,000
|
M
|
81
|
63.3
|
New York Life Insurance Company
|
AA+
|
||||||||||||
$
|
500,000
|
M
|
81
|
63.3
|
New York Life Insurance Company
|
AA+
|
||||||||||||
$
|
5,000,000
|
M
|
81
|
100.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
250,000
|
M
|
81
|
49.0
|
Jackson National Life Insurance Company
|
AA
|
||||||||||||
$
|
1,500,000
|
M
|
81
|
123.5
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,500,000
|
F
|
81
|
95.8
|
AXA Equitable Life Insurance Company
|
AA+
|
||||||||||||
$
|
750,000
|
M
|
81
|
69.4
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
4,500,000
|
M
|
81
|
77.2
|
AXA Equitable Life Insurance Company
|
AA+
|
||||||||||||
$
|
2,275,000
|
M
|
81
|
110.4
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
2,000,000
|
M
|
81
|
83.8
|
Pacific Life Insurance Company
|
A+
|
Face Amount | Sex | Age (1) | LE (2) | Carrier | S&P Rating | |||||||||||||
$
|
3,500,000
|
M
|
81
|
88.6
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
6,217,200
|
F
|
81
|
112.5
|
Phoenix Life Insurance Company
|
BB-
|
||||||||||||
$
|
3,000,000
|
M
|
81
|
117.5
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
81
|
107.4
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
80
|
86.2
|
Protective Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,500,000
|
M
|
80
|
86.2
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
2,000,000
|
F
|
80
|
123.7
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,500,000
|
F
|
80
|
110.8
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
80
|
85.7
|
Lincoln National Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,500,000
|
M
|
80
|
72.7
|
Pacific Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
80
|
127.8
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
F
|
80
|
92.2
|
Sun Life Assurance Company of Canada (U.S.)
|
BBB
|
||||||||||||
$
|
1,995,000
|
F
|
80
|
90.4
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
4,000,000
|
M
|
80
|
90.6
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,250,000
|
F
|
80
|
93.9
|
Columbus Life Insurance Company
|
AA+
|
||||||||||||
$
|
2,500,000
|
F
|
80
|
92.8
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
5,000,000
|
M
|
80
|
81.4
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
80
|
96.6
|
Ohio National Life Assurance Corporation
|
AA
|
||||||||||||
$
|
1,000,000
|
M
|
80
|
96.6
|
Ohio National Life Assurance Corporation
|
AA
|
||||||||||||
$
|
350,000
|
M
|
80
|
72.4
|
Reassure America Life Insurance Company
|
AA
|
$
|
5,000,000
|
M
|
80
|
95.7
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
79
|
121.7
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
8,000,000
|
M
|
79
|
102.9
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
550,000
|
M
|
79
|
124.0
|
Genworth Life Insurance Company
|
A-
|
||||||||||||
$
|
1,680,000
|
F
|
79
|
89.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
F
|
79
|
117.2
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,250,000
|
M
|
79
|
144.5
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
79
|
116.0
|
AXA Equitable Life Insurance Company
|
A+
|
$
|
1,250,000
|
F
|
79
|
94.0
|
Principal Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
79
|
61.0
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
3,000,000
|
M
|
79
|
112.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
2,000,000
|
M
|
79
|
96.7
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,750,000
|
M
|
79
|
105.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
79
|
61.7
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
250,000
|
M
|
79
|
83.3
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
10,000,000
|
M
|
79
|
112.6
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
3,000,000
|
F
|
79
|
116.1
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
7,000,000
|
M
|
79
|
111.2
|
Genworth Life Insurance Company
|
A-
|
||||||||||||
$
|
2,000,000
|
M
|
78
|
60.2
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
130,000
|
M
|
78
|
68.3
|
Genworth Life Insurance Company
|
A-
|
||||||||||||
$
|
1,000,000
|
M
|
78
|
143.0
|
Empire General Life Assurance Corporation
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
78
|
108.5
|
Pacific Life Insurance Company
|
A+
|
Face Amount | Sex | Age (1) | LE (2) | Carrier | S&P Rating | |||||||||||||
$
|
2,000,000
|
F
|
78
|
130.7
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
78
|
132.9
|
Principal Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
78
|
96.0
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
78
|
96.0
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
500,000
|
M
|
78
|
89.9
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
77
|
65.7
|
Pacific Life Insurance Company
|
A+
|
||||||||||||
$
|
3,000,000
|
M
|
77
|
65.7
|
Minnesota Life Insurance Company
|
A+
|
||||||||||||
$
|
3,000,000
|
M
|
77
|
65.7
|
Prudential Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
77
|
115.9
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
4,000,000
|
M
|
77
|
108.0
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,601,500
|
M
|
77
|
96.5
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
77
|
114.7
|
Sun Life Assurance Company of Canada (U.S.)
|
BBB
|
||||||||||||
$
|
5,000,000
|
M
|
77
|
138.1
|
Principal Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
77
|
94.2
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
7,000,000
|
M
|
77
|
105.6
|
Lincoln Benefit Life Company
|
A+
|
||||||||||||
$
|
2,250,000
|
M
|
77
|
80.4
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
4,300,000
|
F
|
77
|
126.0
|
American National Insurance Company
|
A
|
||||||||||||
$
|
5,000,000
|
F
|
77
|
150.0
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
750,000
|
M
|
77
|
83.9
|
Lincoln National Life Insurance Company
|
AA-
|
||||||||||||
$
|
3,000,000
|
M
|
77
|
114.3
|
Principal Life Insurance Company
|
A+
|
||||||||||||
$
|
5,000,000
|
M
|
76
|
108.6
|
Jefferson-Pilot Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
76
|
96.2
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
$
|
500,000
|
M
|
76
|
78.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
76
|
113.9
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
1,009,467
|
M
|
76
|
69.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
4,000,000
|
M
|
76
|
91.7
|
MetLife Investors USA Insurance Company
|
AA-
|
||||||||||||
$
|
2,500,000
|
M
|
76
|
107.2
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
2,500,000
|
M
|
76
|
107.2
|
Massachusetts Mutual Life Insurance Company
|
AA+
|
||||||||||||
$
|
5,000,000
|
M
|
76
|
83.8
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
500,000
|
F
|
76
|
115.1
|
Columbus Life Insurance Company
|
AA+
|
||||||||||||
$
|
3,750,000
|
M
|
76
|
81.4
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
76
|
109.8
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
76
|
61.6
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,000,000
|
M
|
75
|
131.1
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,840,000
|
M
|
75
|
123.4
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
750,000
|
M
|
75
|
135.8
|
U.S. Financial Life Insurance Company
|
A+
|
||||||||||||
$
|
1,750,000
|
M
|
75
|
83.3
|
John Hancock Life Insurance Company (U.S.A)
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
75
|
117.2
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
600,000
|
M
|
75
|
106.7
|
Protective Life Insurance Company
|
AA-
|
||||||||||||
$
|
2,000,000
|
F
|
74
|
162.3
|
Aviva Life Insurance Company
|
A-
|
||||||||||||
$
|
7,000,000
|
F
|
74
|
161.7
|
Pacific Life Insurance Company
|
A
|
||||||||||||
$
|
1,000,000
|
M
|
74
|
116.4
|
Pacific Life Insurance Company
|
A
|
||||||||||||
$
|
5,000,000
|
M
|
74
|
93.5
|
West Coast Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
73
|
176.0
|
Prudential Life Insurance Company
|
AA-
|
||||||||||||
$
|
200,000
|
M
|
73
|
123.8
|
ING Life Insurance and Annuity Company
|
A-
|
||||||||||||
$
|
8,000,000
|
M
|
73
|
126.5
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
5,000,000
|
M
|
73
|
57.7
|
Lincoln Benefit Life Company
|
A+
|
||||||||||||
$
|
850,000
|
M
|
73
|
89.0
|
New York Life Insurance Company
|
AA+
|
Face Amount | Sex | Age (1) | LE (2) | Carrier | S&P Rating | |||||||||||||
$
|
2,000,000
|
M
|
73
|
115.8
|
U.S. Financial Life Insurance Company
|
A+
|
||||||||||||
$
|
2,000,000
|
M
|
72
|
146.1
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
3,000,000
|
F
|
72
|
135.7
|
General American Life Insurance Company
|
AA-
|
||||||||||||
$
|
500,000
|
M
|
71
|
83.2
|
Midland National Life Insurance Company
|
A+
|
||||||||||||
$
|
3,000,000
|
M
|
71
|
116.3
|
AXA Equitable Life Insurance Company
|
A+
|
||||||||||||
$
|
1,000,000
|
M
|
71
|
113.7
|
United of Omaha Life Insurance Company
|
A+
|
$
|
2,500,000
|
M
|
70
|
130.0
|
American General Life Insurance Company
|
A+
|
||||||||||||
$
|
1,167,000
|
M
|
70
|
49.8
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
1,500,000
|
M
|
70
|
119.5
|
Metropolitan Life Insurance Company
|
AA-
|
||||||||||||
$
|
500,000
|
M
|
68
|
113.0
|
Transamerica Life Insurance Company
|
AA-
|
||||||||||||
$
|
500,000
|
M
|
68
|
113.0
|
North American Company for Life And Health Insurance
|
A+
|
||||||||||||
$
|
156,538
|
F
|
65
|
136.1
|
New York Life Insurance Company
|
AA+
|
||||||||||||
$
|
650,655,277
|
ITEM 4. CONTROLS AND PROCEDURES. |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Gross Offering Proceeds
|
$
|
100,956,000
|
||||||
Net Offering Proceeds
|
94,932,000
|
|||||||
Held in Short-Term Investments
|
35,930,000
|
|||||||
Net Offering Proceeds Used
|
$
|
59,002,000
|
100
|
%
|
||||
Purchase Policies
|
32,886,000
|
56
|
%
|
|||||
Payment of Premiums
|
7,972,000
|
13
|
%
|
|||||
Payment of Principal and Interest
|
12,308,000
|
21
|
%
|
|||||
Other Expenditures
|
5,836,000
|
10
|
%
|
ITEM 6. EXHIBITS |
Exhibit
|
|
10.1 | Purchase and Sale Agreement among GWG Holdings, Inc., Athena Securities Group Limited and GWG Securities International Public Limited Company, dated June 28, 2013 (incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on July 8, 2013). |
31.1
|
Section 302 Certification of the Chief Executive Officer (filed herewith).
|
31.2
|
Section 302 Certification of the Chief Financial Officer (filed herewith).
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
99.1
|
Letter from Model Actuarial Pricing Systems, dated April 18, 2013 (filed herewith).
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
XBRL Taxonomy ExtensionDefinition Linkbase Document
|
GWG HOLDINGS, INC.
|
||
Date: August 14, 2013
|
By:
|
/s/ Jon R. Sabes
|
Chief Executive Officer
|
||
Date: August 14, 2013
|
By:
|
/s/ Jon Gangelhoff
|
Chief Financial Officer
|