Abacus Life Files 2023 Annual Report Amendment

Ticker: ABXL · Form: 10-K/A · Filed: May 30, 2024 · CIK: 1814287

Sentiment: neutral

Topics: amendment, annual-report, financials

TL;DR

Abacus Life filed its 2023 10-K amendment. Check financials.

AI Summary

Abacus Life, Inc. filed an amendment (10-K/A) to its annual report for the fiscal year ending December 31, 2023. The filing, submitted on May 30, 2024, provides updated financial information and disclosures. The company, formerly East Resources Acquisition Co., is incorporated in Delaware and headquartered in Orlando, Florida.

Why It Matters

This amendment to the annual report provides updated financial disclosures for Abacus Life, Inc., which is crucial for investors to assess the company's financial health and performance as of December 31, 2023.

Risk Assessment

Risk Level: low — This filing is an amendment to a routine annual report, not indicating new material adverse events.

Key Numbers

Key Players & Entities

FAQ

What is the primary purpose of this 10-K/A filing for Abacus Life, Inc.?

The 10-K/A filing is an amendment to the annual report for the fiscal year ended December 31, 2023, providing updated information and disclosures.

When was the original 10-K filed or when is this amendment being filed?

The amendment (10-K/A) was filed on May 30, 2024.

What was Abacus Life, Inc. formerly known as?

Abacus Life, Inc. was formerly known as East Resources Acquisition Co.

Where is Abacus Life, Inc. headquartered?

Abacus Life, Inc. is headquartered in Orlando, Florida.

What is the SIC code for Abacus Life, Inc.?

The Standard Industrial Classification (SIC) code for Abacus Life, Inc. is 6282, which corresponds to Investment Advice.

Filing Stats: 4,540 words · 18 min read · ~15 pages · Grade level 13.6 · Accepted 2024-05-30 16:11:42

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26 Item 2.

Properties

Properties 27 Item 3.

Legal Proceedings

Legal Proceedings 27 Item 4. Mine Safety Disclosures 27 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6. [Reserved] 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 68 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 69

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 131

Controls and Procedures

Item 9A. Controls and Procedures 132

Other Information

Item 9B. Other Information 133

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 133 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 134

Executive Compensation

Item 11. Executive Compensation 134

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 134

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 134

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 134 PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 134

Form 10-K Summary

Item 16. Form 10-K Summary 136

Signatures

Signatures 137 Table of Contents Part I

Business

Item 1. Business CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The statements contained in this Annual Report on Form 10-K that are not purely historical are forward-looking statements within the meaning of Section27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations, hopes, intentions or strategies regarding the future. In addition to historical financial analysis, this discussion and analysis contains forward-looking statements based upon current expectations that involve risks, uncertainties, and assumptions . All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to: the potential impact of our business relationships, including with our employees, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; weakness or adverse changes in the level of activity in our sector or the sectors of our affiliated companies, which may be caused by, among other things, high or increasing interest rates, or a weak U.S. economy; significant competition that our operating subsidiaries face; compliance with extensive government regulation; and other risks detailed in the those set forth under "Risk Factors" or elsewhere in this document and in our other public filings with the United States Securities and Exchange Commission (the "SEC"). Our Mission Abacus Life Inc.'s ("Abacus" or the "Company") mission is to educate all life insurance policy owners that their life insurance policy is personal property and to educate investors about alternatives to traditional inves

Underwriting

Underwriting Abacus' origination guidelines focus on the age, gender and health of the insured, the duration, mortality risk and face value of the underlying life insurance policy, the projected internal rate of return of the investment in the underlying life insurance policy after taking into account the cost of making continued premium payments, and the ultimate amount and timing of the death benefit. These guidelines are designed to allow the Company to target the life insurance policies that it believes will generate attractive risk-adjusted returns. The Company invests primarily in non-variable universal life insurance policies. 1 Table of Contents Origination Our proven policy origination process, known as "origination services" first locates policies and screens them for eligibility for a life settlement. This process includes verifying that the policy is in force, obtaining consent forms, and making disclosures to, policy owners, and obtaining or generating life expectancy estimates. We generate fees on the policies we originate, which are sourced from three channels: (i) a network of approximately 30,000 financial advisors and agents, (ii) direct-to-consumer and (iii) a number of traditional life settlements intermediaries that submit policies to us on behalf of a financial advisor, agent or other client. Portfolio Management Once identified, we utilize our proprietary "heat-map" technology platform to determine the initial risk and viability of policies. Thereafter, a purchased policy is "actively managed," whereby we consistently monitor the policy risk to optimize revenue by choosing to either (x) trade the policy to a third-party institutional investor (i.e., receive a trade spread) or (y) hold the policy over time (i.e., pay premiums and receive payout). Additionally, we service policies on behalf of third parties for which we receive fee-based revenue based on a percentage of policy value. Our multi-faceted and dynamic revenue model is

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