Abacus Life, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Abacus Life, Inc. has filed its 2023 10-K report detailing financial performance and business operations.</b>

AI Summary

Abacus Life, Inc. (ABXL) filed a Annual Report (10-K) with the SEC on March 21, 2024. Abacus Life, Inc. filed its 2023 Form 10-K on March 21, 2024, reporting on the fiscal year ending December 31, 2023. The filing covers financial data and business operations for Abacus Life, Inc., formerly East Resources Acquisition Co. Key financial statement information includes details on common stock, warrants, and fixed unsecured notes. The report details transactions and balances related to nonrelated parties, related parties, affiliated entities, and former members. Specific financial metrics and disclosures related to portfolio services and origination fees are included for the fiscal years 2022 and 2023.

Why It Matters

For investors and stakeholders tracking Abacus Life, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Abacus Life's financial health and operational activities for the fiscal year 2023, crucial for investors to assess the company's performance and future prospects. The detailed breakdown of financial data, including related party transactions and segment information, allows stakeholders to understand the company's financial structure and revenue streams.

Risk Assessment

Risk Level: medium — Abacus Life, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the lack of specific financial performance figures (revenue, net income, etc.) in the provided header data prevents a deeper risk assessment beyond the general nature of an annual filing.

Analyst Insight

Review the full 10-K filing for detailed financial statements, management's discussion and analysis, and risk factors to form an investment thesis.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-21 — Filing Date (Date of submission)
• 155 — Public Document Count (Number of documents in the filing)
• 0001814287-24-000028 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• Abacus Life, Inc. (company) — Filer name
• East Resources Acquisition Co. (company) — Former company name
• 2024-03-21 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• 2022-12-31 (date) — Prior fiscal year end
• Orlando (location) — Business address city
• DE (location) — State of incorporation
• 001-39403 (other) — SEC file number

FAQ

Industry Context

Abacus Life, Inc. operates within the financial services sector, likely focusing on investment advice or related financial products as indicated by its SIC code.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the full financial statements within the 10-K for revenue, expenses, assets, and liabilities.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into the company's strategy and outlook.
3. Review the Risk Factors section for potential challenges and uncertainties facing Abacus Life, Inc.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-21: Filing Date — Date Abacus Life, Inc. submitted its 10-K report.

Year-Over-Year Comparison

This is the initial 10-K filing for Abacus Life, Inc. under its current name and structure, following its name change from East Resources Acquisition Co. on June 5, 2020.

Key Financial Figures

• $0.0001 — ich registered Common stock, par value $0.0001 per share ABL The NASDAQ Stock Market
• $11.50 — of common stock at an exercise price of $11.50 per share ABLLW The NASDAQ Stock Market
• $5 billion — , holding, and/or servicing). With over $5 billion in face value of policies purchased, Ab
• $13 — ance industry policies is approximately $13 trillion. Historically, more than 90% o
• $233 billion — life settlements market opportunity is $233 billion each year. However, in 2021, the life s
• $4 b — life settlements industry only captured $4 billion, or approximately 2% of the annua
• $200 billion — described above, there is approximately $200 billion in policy value that lapses on an annua
• $6 billion — is expected to grow from approximately $6 billion in 2022 to approximately $8 billion in
• $8 billion — ely $6 billion in 2022 to approximately $8 billion in 2028, which is a 5% compounded annua

Filing Documents

• abl-20231231.htm (10-K) — 2451KB
• descriptionofpubliclytrade.htm (EX-4.14) — 245KB
• abacuslifeincconsentgrantt.htm (EX-23.1) — 2KB
• abacuslifeincfs12312023311.htm (EX-31.1) — 19KB
• abacuslifeincfs12312023312.htm (EX-31.2) — 19KB
• abacuslifeincfs12312023321.htm (EX-32.1) — 7KB
• abacuslifeincfs12312023322.htm (EX-32.2) — 7KB
• clawbackpolicy12312023.htm (EX-97.1) — 22KB
• 0001814287-24-000028.txt (&nbsp;) — 14913KB
• abl-20231231.xsd (EX-101.SCH) — 107KB
• abl-20231231_cal.xml (EX-101.CAL) — 180KB
• abl-20231231_def.xml (EX-101.DEF) — 851KB
• abl-20231231_lab.xml (EX-101.LAB) — 1043KB
• abl-20231231_pre.xml (EX-101.PRE) — 1063KB
• abl-20231231_htm.xml (XML) — 1839KB

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 71 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 73 Item 9 . Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 138 Item 9A .

Controls and Procedures

Controls and Procedures 139 Item 9B . Other Information 140

C

Item 9 C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 140 PART II I

0

Item 1 0 . Directors, Executive Officers and Corporate Governance 141 Item 11.

Executive Compensation

Executive Compensation 141 Item 1 2.

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

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 141 Item 1 3. Certain Relationships and Related Transactions, and Director Independence 141 Item 1 4. Principal Accountant Fees and Services 141 PART IV Item 1 5. Exhibit and Financial Statement Schedules 141 Item 16. Form 10-K Summary 143

Signatures

Signatures 144 Table of Conten ts 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 Conten ts 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

View Full Filing

View this 10-K filing on SEC EDGAR