v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Segment Information—During the first quarter of 2025, the Company updated how it organizes its business. Beginning in the first quarter of 2025, the Company organized its business into three reportable segments (1) Asset Management, (2) Life Solutions, and (3) Technology Services, which all generate revenue and incur expenses in different manners.
This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision maker (CODM), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s CODM is the President and Chief Executive Officer. The Company’s reportable segments are not aggregated.
The Asset Management segment generates revenues by providing asset management services to primarily institutional investors alongside private clients investing in uncorrelated, and longevity-based assets, fixed-income replacement strategies and free cash flow based investment solutions. The revenue is determined by the asset management agreements with the individual investment vehicles. It also generates revenues by providing policy servicing activities to customers on a contract basis (legacy Portfolio Servicing segment).
The Life Solutions segment generates revenues by buying, selling, and trading policies, and maintaining policies until receipt of death benefits (legacy Active Management segment). It also generates revenue by originating life insurance policy settlements between investors or buyers, and the sellers, who is often the original policy owner (legacy Originations segment). The policies are purchased from owners or other providers through advisors, brokers, or directly through the owner.
The Technology Services segment generates revenues by providing real-time mortality verification, missing participant verification, and other services specific to the life insurance market services to customers on a contract basis.
The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review disaggregated assets by segment. The Company’s CODM periodically reviews cost of revenues by segment and treats it as a significant segment expense.
Revenue related to the Company’s reporting segments is as follows:
Three Months Ended March 31,
20252024
Asset management$7,773,077 $217,935 
Life solutions36,298,657 21,269,249 
Technology services67,612 — 
Total revenue$44,139,346 $21,487,184 
Cost of revenue related to the Company’s reporting segments is as follows:
Three Months Ended March 31,
20252024
Asset management$2,742,018 $362,393 
Life solutions3,900,859 2,358,504 
Technology services465,530 — 
Total cost of revenue$7,108,407 $2,720,897 
Gross profit related to the Company’s reporting segments reconciled to net income (loss) attributable to common stockholders:
Three Months Ended March 31,
20252024
Asset management$5,031,059 $(144,458)
Life solutions32,397,798 18,910,745 
Technology services(397,918)— 
Total gross profit37,030,939 18,766,287 
Sales and marketing(2,616,000)(1,929,944)
General and administrative (including stock-based compensation)(12,263,786)(11,353,499)
Depreciation and amortization expense(4,758,546)(1,682,054)
Other (expense) income(44,524)(53,028)
Loss on change in fair value of warrant liability (4,806,000)946,960 
Interest expense(9,618,330)(3,670,445)
Interest income1,175,001 421,426 
Gain (Loss) on change in fair value of debt3,362,103 (2,712,627)
Unrealized (loss) gain on investments272,254 1,164,966 
Provision for income taxes(2,334,085)(1,173,513)
Net income (loss) attributable to non-controlling interests(759,443)(73,274)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$4,639,583 $(1,348,745)
Segment gross profit is defined as revenues less cost of sales, excluding depreciation and amortization. Expenses below the gross profit line are not allocated across operating segments, as they relate primarily to the overall management of the consolidated entity.
As of March 31, 2025 and March 31, 2024, our operations are mostly confined to the United States. In connection with the Carlisle Acquisition closed on December 2, 2024, the Company’s total revenues, total cost of revenue, and total gross profit is comprised of approximately 15%, 28%, and 13%, respectively, related to our operations in Luxembourg for the three-month ended March 31, 2025.