Abacus Global Management, Inc.

Previous wording

The statements contained in this Quarterly Report on Form 10-Q 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, as described under the heading “Cautionary Note Regarding Forward-Looking Statements.”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 thethose set forth under “Risk Factors” or elsewhere in this quarterly statement and in our 2024 Annual Report on Form 10-K. Unless the context otherwise requires, references in this “Abacus Global Management, Inc. Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” and “Company” are intended to mean the business and operations of Abacus Global Management, Inc.

Current wording

The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A 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, as described under the heading “Cautionary Note Regarding Forward-Looking Statements.” 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 quarterly statement and in our 2024 Annual Report on Form 10-K. Unless the context otherwise requires, references in this “Abacus Global Management, Inc. Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “we,” “us,” “our,” and “Company” are intended to mean the business and operations of Abacus Global Management, Inc.

Previous wording

The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of the Company’s financial condition and results of operations. This discussion should be read in conjunction with the Company’s financial statements and related notes thereto that appear elsewhere in this Quarterly Report on Form 10-Q andour 2024 Annual Report on Form 10-K.

Current wording

The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of the Company’s financial condition and results of operations. This discussion should be read in conjunction with the Company’s financial statements and related notes thereto that appear elsewhere in this Quarterly Report on Form 10-Q and our 2024 Annual Report on Form 10-K.

Previous wording

Asset management revenue increased by $7,555,142 or 3,466.7% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase is mainly due to the Carlisle Acquisition and FCF Acquisition with their corresponding revenue activity having commenced in December 2024.

Current wording

Asset management revenue increased by $8,556,988, or 4176.4%, for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024. The increase is mainly due to the Carlisle Acquisition and FCF Acquisition with their corresponding revenue activity having commenced in December 2024.

Previous wording

Technology services revenue increased to$67,612 for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase is mainly due technology service revenue activity having commenced in December 2024.

Current wording

Technology services revenue increased by$161,900 for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024. The increase is mainly due technology service revenue activity having commenced in December 2024.

Previous wording

Cost of revenues (excluding depreciation and amortization) increased by $4,388,195, or 161.3%, for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024. The increase in cost of revenues is primarily due to increase in payroll expense related to growth in life policy acquisition and sale activity, $2,117,349 asset management retrocession fees, and $1,208,138 increase of commissions for origination activity.

Current wording

Cost of revenues (including stock-based compensation) increased by $7,698,620, or 140.9%, for thesix months ended June 30, 2025 compared to thesix months ended June 30, 2024. The increase in cost of revenues is primarily due to $4,460,600 asset management retrocession fees, $1,478,036 increase of commissions for origination activity, and increase in payroll expense related to growth in life policy acquisition and sale activity.

Previous wording

Gross profit increased by $18,264,652, or 97.3%, for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024. The increase in gross profit is primarily due to an increase in active management revenue.

Current wording

Gross profit increased by $23,837,408, or 90.5%, for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024. The increase in gross profit is primarily due to an increase in asset management revenue and life solutions revenue driven by an increase in policies purchased.

Previous wording

Sales and marketing expenses increased by $686,056 or 35.5%, for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024. The increase was primarily related to an increase in advertising costs to support our life policy revenue growth strategy.

Current wording

Sales and marketing expenses increased by $714,914 or 28.0%, for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024. The increase was primarily related to an increase in advertising costs to support our life solutions growth strategy.

Previous wording

General and administrative (including stock-based compensation) increased by $910,287, or 8.0%, for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024. The increase is primarily related to payroll expense of $2,583,886 in connection with the 2024 business acquisitions, legal and professional fees of $1,477,121, and an increase in other expenses general and administrative expenses of $1,246,315, partially offset by decrease in non-cash stock based compensation expense of $(3,900,688) related to CEO stock-based expenses offset by a quarter of employee RSU expenses.

Current wording

General and administrative (including stock-based compensation) increased by $4,372,985, or 30.0%, for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024. The increase is primarily related to increases in legal and professional fees of $3,672,671, payroll expense of $2,735,246 mainly due to acquisitions, and other expenses general and administrative expenses of $1,725,146, partially offset by decreases in non-cash stock-based compensation expense of $(2,841,344) and accounting and auditing fees of $(918,734).

Previous wording

The increase of $3,076,492, or 182.9% for thethree months ended March 31, 2025 compared to thethree months ended March 31, 2024 in depreciation and amortization expense is related to the amortization of acquired Carlisle and FCF intangible assets.

Current wording

The increase of $3,433,631, or 196.2%, for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024 in depreciation and amortization expense is primarily related to the amortization of acquired businesses intangible assets.

Previous wording

Unrealized gain on investments decreased by $892,712 or 76.6% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The change is mainly due to the sale of investments in S&P 500 options in June and December 2024 used to pay off the market-indexed notes between July 2024 and January 2025.

Current wording

Realized gain on investments increased by $856,744 or (100.0)% for thethree months ended June 30, 2025, compared to thethree months ended June 30, 2024. The change is mainly due to the sale of investments in S&P 500 options in June and December 2024 used to pay off the market-indexed notes between July 2024 and January 2025.

Previous wording

Gain in the fair value of debt increased by $6,074,730, or (223.9)% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase is primarily attributable to the payoff of the market-indexed notes between July 2024 and January 2025.

Current wording

Loss on change in fair value of debt decreased by $(1,199,463) or (100.0)% for thethree months ended June 30, 2025 compared to thethree months ended June 30, 2024. The change is primarily attributable to the payoff of the market-indexed notes between July 2024 and January 2025.

Previous wording

Interest income was 1,175,001, for the three months ended March 31, 2025, compared to $421,426 for the three months ended March 31, 2024. The increase in interest income is related to interest earned on our bank deposits.

Current wording

Interest income increased by $372,372 or 58.2% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase in interest income is related to interest earned on our bank deposits.

Previous wording

Change in fair value of warrant liability was $(4,806,000) for the three months ended March 31, 2025, compared to 946,960 for the three months ended March 31, 2024. The change is primarily attributable to the increase in the price for the public warrants from March 31, 2024 to March 31, 2025, which is a determining factor for measuring the fair value of the private warrants.

Current wording

Gain on change in fair value of warrant liability increased by $4,850,500 or (726.7)% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The change is primarily attributable to the change in the price for the public warrants, which is a determining factor for measuring the fair value of the private warrants.

Previous wording

Interest expense was $9,618,330 for thethree months ended March 31, 2025 compared to $3,670,445 thethree months ended March 31, 2024. The increase in interest expense is primarily related to the $72,727,075 increase in the Fixed Rate Senior Unsecured Notes in connection with the Carlisle Acquisition and to the $100,000,000 issuance of the Senior Secured Credit Facility in December 2024.

Current wording

Interest expense increased by$(10,170,843) or 124.0% for thesix months ended June 30, 2025 compared to thesix months ended June 30, 2024. The increase in interest expense is primarily related to the $72,727,075 increase in the Fixed Rate Senior Unsecured Notes in connection with the Carlisle Acquisition and to the $100,000,000 issuance of the Senior Secured Credit Facility in December 2024.

Previous wording

Income tax expense increased by $1,160,572, or 98.9% for thethree months ended March 31, 2025, compared to the three months ended March 31, 2024. Our effective income tax rate for thethree months ended March 31, 2025 and three months March 31, 2024, was 30.2% and 1151.0%, respectively. The increase was primarily driven by the increase in net income, offset by a decrease in stock-based compensation expense deduction limited by IRC Section 162(m).

Current wording

Income tax expense increased by $2,312,261, or 131.5% for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily driven by the increase in net income. Our effective income tax rate for the three months ended June 30, 2025 and three months June 30, 2024, was 18.8% and 73.0%, respectively.

Previous wording

Cost of revenue from our asset management segment increased by $2,379,625 or 656.6%, for thethree months ended March 31, 2025, compared to thethree months ended March 31, 2024, primarily due to the Carlisle Acquisition and FCF Acquisition with their corresponding revenue and related cost of revenue activity commenced in December 2024.

Current wording

Cost of revenue from our asset management segment increased by $5,258,048, or 990.1%, for thesix months ended June 30, 2025 compared to thesix months ended June 30, 2024, primarily due to the Carlisle Acquisition and FCF Acquisition with their corresponding revenue and related cost of revenue activity that commenced in December 2024.

Previous wording

Cost of revenue from our life solutions segment increased by $1,542,355 or 65.4%, for thethree months ended March 31, 2025, compared to thethree months ended March 31, 2024, mainly due to an increase in policy acquisition activity, policy trading activity, and compensation related expenses, including an increase of $1,208,138 related to origination services.

Current wording

Cost of revenue from our life solutions segment increased by$1,478,036, or 30.0% for thesix months ended June 30, 2025, compared to thesix months ended June 30, 2024, mainly due to an increase in policy acquisition activity, policy trading activity, and compensation related expenses, including an increase related to origination related services.

Previous wording

Cost of revenue from our life solutions segment increased by $465,530, for thethree months ended March 31, 2025, compared to thethree months ended March 31, 2024, mainly due to compensation expenses. Our technology service revenue and related cost of revenue activity commenced in December 2024.

Current wording

Cost of revenue from our technology services segment increased by $497,006, for thethree months ended June 30, 2025, compared to thethree months ended June 30, 2024, mainly due to compensation expenses. Our technology service revenue and related cost of revenue activity commenced in December 2024.

Previous wording

Adjusted Net Income is presented for the purpose of calculating Adjusted EPS. The Company defines Adjusted Net Income as net income (loss) attributable to common stockholders adjusted for non-controlling interest income, amortization, change in fair value of warrants and non-cash stock-based compensation and the related tax effect of those adjustments. Management believes that Adjusted Net Income is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance.

Current wording

Adjusted Net Income is presented for the purpose of calculating Adjusted EPS. The Company defines Adjusted Net Income as net income (loss) attributable to common stockholders adjusted for non-controlling interest income, amortization, change in fair value of warrants, business acquisition costs, and non-cash stock-based compensation and the related tax effect. We believe that Adjusted Net Income provides an additional measure of operating performance that eliminates the impact of expenses that do not relate to business performance.

Previous wording

Adjusted EPS measures our per share earnings and is calculated as Adjusted Net Income divided by adjusted weighted-average shares outstanding. We believe Adjusted EPS is useful to investors because it enables them to better evaluate per share operating performance across reporting periods and management believes that Adjusted EPS is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance.

Current wording

Adjusted EPS measures our per share earnings and is calculated as Adjusted Net Income divided by adjusted weighted-average shares outstanding. We believe that Adjusted EPS may be useful to investors because it enables them to better evaluate per share operating performance across reporting periods by eliminating the impact of expenses that do not relate to the Company’s business performance.

Previous wording

Adjusted EBITDA is net income adjusted for depreciation expense, amortization, interest expense, income tax, business acquisition costs, non-cash expenses, and certain other items that in our judgement significantly impact the period-over-period assessment of performance and operating results thatdo not directly relate to business performance within the Company's control. These items may include payments made as part of the Company's expense support commitment, change in fair value of debt, change in fair value of warrant liability, S&P 500 options that were entered into as an economic hedge related to the debt (described as the realized and unrealized loss on investments), non-cash stock based compensation, and other items. Adjusted EBITDA should not be determined as substitution for net income (loss), cash flows from operating, investing, and financing activities, operating income (loss), or other metrics prepared in accordance with U.S. GAAP.

Current wording

Adjusted EBITDA is net income adjusted for depreciation expense, amortization, interest expense, income tax, business acquisition costs, non-cash expenses, and certain other items that in our judgment significantly impact the period-over-period assessment of performance and operating results thatdo not directly relate to business performance within the Company's control. These items may include payments made as part of the Company's expense support commitment, change in fair value of debt, change in fair value of warrant liability, S&P 500 options that were entered into as an economic hedge related to the debt (described as the realized and unrealized loss on investments), non-cash stock based compensation, and other items. Adjusted EBITDA should not be determined as substitution for net income (loss), cash flows from operating, investing, and financing activities, operating income (loss), or other metrics prepared in accordance with U.S. GAAP.

Previous wording

Management believes the use of Adjusted EBITDA assists investors in understanding the ongoing operating performance by presenting comparable financial results between periods. We believe that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are variable from year to year, Adjusted EBITDA provides our investors with performance measures that reflect the impact to operations from trends in changes in revenue, policy values and operating expenses, providing a perspective not immediately apparent from net income (loss) and operating income (loss). The adjustments we make to derive the non-GAAP measure of Adjusted EBITDA exclude items which may cause short-term fluctuations in net income (loss) and operating income (loss) and which we do not consider to be the fundamental attributes or primary drivers of our business.

Current wording

We believe that Adjusted EBITDA assists investors in understanding the Company’s ongoing operating performance by presenting comparable financial results between periods. We believe that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are variable from year to year. We believe that Adjusted EBITDA provides our investors with performance measures that reflect the impact to operations from trends in changes in revenue, policy values, and operating expenses that provides a perspective not immediately apparent from net income (loss) and operating income (loss). Adjusted EBITDA excludes items which we believe may cause short-term fluctuations in net income (loss) and operating income (loss) which we do not consider to be the primary drivers of the Company’s business.

Previous wording

Refer to the Adjusted Net Income and Pro Forma Adjusted EPS section for the description of this measure and comparable GAAP measures. The three months ended March 31, 2024 includes Carlisle’s historical information prior the Carlisle Acquisition.

Current wording

Refer to the Adjusted Net Income and Adjusted EPS section for the description of this measure and comparable GAAP measures. The three and six months ended June 30, 2025 includes Carlisle’s historical information prior the Carlisle Acquisition.

Previous wording

The following table presents a reconciliation of Pro Forma Adjusted Net Income to the most comparable GAAP financial measure, net income (loss) attributable to common stockholders and Pro Forma Adjusted EPS to the most comparable GAAP financial measure, earnings (loss) per share combined with Carlisle on a historical basis for the three months ended March 31, 2024:

Current wording

The following table presents a reconciliation of Pro Forma Adjusted Net Income to the most comparable GAAP financial measure, net income (loss) attributable to common stockholders and Pro Forma Adjusted EPS to the most comparable GAAP financial measure, earnings (loss) per share combined with Carlisle on a historical basis for the three and six months ended June 30, 2025:

Previous wording

The pro forma change in adjusted net Income was primarily a result of the factors described in connection with non-pro forma operating revenues and operating expenses adjusted for $2,034,030 pro forma Carlisle net income for the three months ended March 31, 2024.

Current wording

The pro forma change in adjusted net Income was primarily a result of the factors described in connection with non-pro forma operating revenues and operating expenses adjusted for $2,304,875 and $4,338,905 pro forma Carlisle net income for the three and six months ended June 30, 2024, respectively.

Previous wording

The following table presents a reconciliation of Proforma Adjusted EBITDA and Proforma Adjusted EBITDA Margin to the most comparable GAAP financial measure, net income (loss) for common stockholders combined with Carlisle on a historical basis for the three months ended March 31, 2024:

Current wording

The following table presents a reconciliation of Proforma Adjusted EBITDA and Proforma Adjusted EBITDA Margin to the most comparable GAAP financial measure, net income (loss) for common stockholders combined with Carlisle on a historical basis for the three and six months ended June 30, 2025:

Previous wording

The pro forma change in adjusted EBITDA was primarily a result of the non-pro forma factors described in connection with operating revenues and operating expenses and the items listed above adjusted for $2,034,030 pro forma Carlisle net income and $106,775 Carlisle EBITDA adjustments for the three months ended March 31, 2024.

Current wording

The pro forma change in adjusted EBITDA was primarily a result of the non-pro forma factors described in connection with operating revenues and operating expenses and the items listed above adjusted for $2,304,875 and $4,338,905 pro forma Carlisle net income for the three and six months ended June 30, 2024, respectively.

Previous wording

The table below summarizes the combined results of operations for the Company and Carlisle in connection with the Carlisle Acquisition as if the Companies were combinedfor the three months ended March 31, 2024. The unaudited supplemental pro forma financial information related to the asset management segment as presented below is for illustrative purposes only and does not purport to represent what the results of operations would actually have been if the business combinations occurred as of the date indicated or what the results would be for any future periods.

Current wording

The table below summarizes the combined results of operations for the Company and Carlisle in connection with the Carlisle Acquisition as if the Companies were combinedfor the three and six three months ended June 30, 2024. The unaudited supplemental pro forma financial information related to the asset management segment as presented below is for illustrative purposes only and does not purport to represent what the results of operations would actually have been if the business combinations occurred as of the date indicated or what the results would be for any future periods.

Previous wording

▪Revenue generated from life policies: (i) policies sold and purchased, (ii) realized gains on sold and matured policies, (iii) unrealized gains on held policies, and (iv) face value of policies held. The number of policies sold and purchased helps us measure the level of active management activity for the period that leads to realized and unrealized gains, respectively. Realized gains on sold and matured policies is used to measure the level of profit optimization. Unrealized gains on held policies is used to measure our policy optimization. The face value or net death benefit of policies represents the maximum potential revenue realization on policies held. Refer to the Results from Operations section above for a summary of active management key business metrics for investment and fair value method policies.

Current wording

•Revenue generated from life policies: (i) policies sold, matured, and bought, (ii) realized gains, (iii) revenues from maturities, and (iv) net death benefit value of policies held. The number of policies sold and purchased helps us measure the level of trading activity for the period that leads to realized and unrealized gains, respectively. Realized gains on sold policies and revenues from maturities is used to measure our profit optimization. The net death benefit of policies represents the maximum potential maturity revenue realization on policies held.

Previous wording

▪Asset management revenue: (i) assets under management also referred to as net asset value of funds (“AUM” or “NAV”). AUM drives management fees and performance fees generated by the Company.

Current wording

•Asset management revenue: (i) assets under management also referred to as the net asset value of funds (“AUM” or “NAV”). AUM drives management fees and performance fees generated by the Company.

Previous wording

▪Servicing revenue: (i) number of policies serviced, (ii) value of policies serviced, and (iii) total invested dollars. Servicing revenue involves the provision of services to one affiliate by common ownership and third parties which own life insurance policies. The number of policies and the value of policies serviced represents the volume and dollar value of policies over which the above services are performed. Total invested dollars represent the acquisition cost plus premiums paid by the policy.

Current wording

•Servicing revenue: (i) number of policies serviced, (ii) face value of policies serviced, and (iii) total invested dollars. Servicing revenue involves the provision of services for maintaining the policy, managing processing of claims in the event of death of the insured, and ensuring timely payment of optimized premiums computed to derive maximum return on maturity of the policy. The number of policies and the face value of policies serviced represents the volume and dollar face value of policies over which the above services are performed. Total invested dollars represent the acquisition cost plus premiums paid for serviced policies and is used to determine servicing fees.

Previous wording

▪Origination revenue: the number of policies originated year-over-year in measuring our performance. Origination revenues represent fees negotiated for each purchase and sale of a policy to an investor. The number of policy originations represents the volume of policies over which the above origination services are performed. The number of policy originations directly correlates with origination revenues allowing management to evaluate fees earned upon each transaction. There are no estimates, assumptions, or limitations specific to the number of policy originations.

Current wording

•Origination revenue: Origination revenues represent fees negotiated for each purchase and sale of a policy with an investor. The number of policy originations (i) represents the volume of policies over which the above origination services are performed. The number of policy originations directly correlates with origination revenues allowing management to evaluate fees earned upon each transaction.

Previous wording

The aggregate face value of policies held at fair value is $1,430,721,703 as of March 31, 2025 with a corresponding fair value of $446,207,963. Additional information regarding policies accounted for under the fair value method is as follows:

Current wording

Information regarding policies accounted for under the fair value method is as follows:

Previous wording

The aggregate face value of policies accounted for using the investment method is $2,225,000 as of March 31, 2025, with a corresponding carrying value of $1,096,866. Additional information regarding policies accounted for under the investment method is as follows:

Current wording

Information regarding policies accounted for under the investment method is as follows:

Previous wording

[1] For the three months ended March 31, 2025, LMA and LMA subsidiaries comprised 736 of the policies serviced, $1,379,845,928 value of the policies serviced, and $334,557,381 of the total invested dollars. For the three months ended March 31, 2024, LMA and LMA subsidiaries comprised 323 of the policies serviced, $537,855,702 value of the policies serviced, and $103,405,908 of the total invested dollars. All servicing revenues related to LMA or LMA subsidiaries are eliminated in consolidation.

Current wording

[1] For thesix months ended June 30, 2025, LMA and LMA subsidiaries comprised 627 of the policies serviced, $1,027,006,147 face value of the policies serviced, and $292,823,428 of the total invested dollars. For thesix months ended June 30, 2024, LMA and LMA subsidiaries comprised 458 of the policies serviced, $747,942,758 face value of the policies serviced, and $170,008,843 of the total invested dollars. All servicing revenues related to LMA or LMA subsidiaries are eliminated in consolidation.

Previous wording

The Company finances its operations primarily through cash generated from operations and net proceeds from debt or equity financing. The Company actively manages its working capital and the associated cash requirements when servicing and originating policies while also effectively utilizing cash and other sources of liquidity to purchase additional life settlement policies. As of March 31, 2025 and December 31, 2024, our principal source of liquidity was cash and cash equivalents totaling $43,761,731 and $131,944,282, respectively.

Current wording

The Company finances its operations primarily through cash generated from operations and net proceeds from debt or equity financing. The Company actively manages its working capital and the associated cash requirements when servicing and originating policies while also effectively utilizing cash and other sources of liquidity to purchase additional life settlement policies. As of June 30, 2025 and December 31, 2024, our principal source of liquidity was cash and cash equivalents totaling $74,836,871 and $131,944,282, respectively.

Previous wording

Our future capital requirements will depend on many factors, including our revenue growth rate and the expansion of our active management, portfolio, and origination activities. The Company may, in the future, enter into arrangements to acquire or invest in complementary businesses, products and technologies. The Company may seek additional equity or debt financing.

Current wording

Our future capital requirements will depend on many factors, including our revenue growth rate. The Company. may, in the future, enter into arrangements to acquire or invest in complementary businesses, products, and technologies. The Company may seek additional equity or debt financing.

Previous wording

In December 2023, the Company’s board of directors approved a $15,000,000 share repurchase plan that will expire in May 2025. As of March 31, 2025, $2,974,863 remains available for repurchases under the approved plan. Refer to Note 15, Convertible Preferred Stock and Stockholders’ Equity, to the Interim Financial Statements for additional information.

Current wording

In December 2023, April 2025, and June 2025, the Company’s Board of Directors approved a $15,000,000, $15,000,000, and $20,000,000 repurchase plans, respectively, that will expire in December 2026. As of June 30, 2025, $2,923,082 remains available for repurchases under the approved plan. Refer to Note 15, Convertible Preferred Stock and Stockholders’ Equity, to the Interim Financial Statements for additional information.

Previous wording

During the three months ended March 31, 2025 our operating activities used$(61,590,694) of net cash as compared to $2,514,288 of net cash provided from operating activities during the three months ended March 31, 2024. The increase of $(64,104,982) in net cash used from operating activities was primarily due to $(51,171,210) change in life settlement purchase and sale activity and $(21,721,963) increase in unrealized gains on life settlement policies, partially offset by $9,906,246 decrease in accounts receivable.

Current wording

During thesix months ended June 30, 2025, our operating activities provided $14,511,602 of net cash compared to $(64,542,510) of net cash used from operating activities during thesix months ended June 30, 2024. Theincrease of $79,054,112 in net cash provided from operating activities was primarily due to $65,481,868 increase in net life settlement sales and $23,633,677 increase in net income, partially offset by an increase of$(6,049,540) in related party receiva bles and a decrease of$(3,364,157) in contract liabilities.

Previous wording

During the three months ended March 31, 2025 investing activities used $(3,739,403) of net cash as compared to$(253,793) net cash used during the three months ended March 31, 2024. The increase of $(3,485,610) in net cash used in investing activities was primarily related to the $(3,000,000) purchase of other investments.

Current wording

During thesix months ended June 30, 2025, investing activities used $(13,743,342) of net cash compared to$(716,113) net cash used during thesix months ended June 30, 2024. The increase of$(13,027,229) in net cash used in investing activities was primarily related to the issuance of $(7,000,000) note receivable and $(2,096,021) paid for the NIB Acquisition.