RELATED-PARTY TRANSACTIONS |
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| RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS The Sponsor PIK Note payable of $14,541,873 is recorded as a related-party transaction given the relationship between the Sponsor and the Company. Refer to Note 14, Long-Term Debt for more information. Life policy sales to the Carlisle Funds, LP Funds, and the Securitized Entity are considered related party activity. Life policy purchases from the Carlisle or LP Funds are also considered related party activity. In addition, management fees, performance fees, servicing fees and certain expense reimbursement from the Carlisle Funds, LP Funds, and Securitized Entity are considered related party transactions. The servicing fee charged to the Carlisle Funds, LP Funds, and Securitized Entity is $1,000 per policy per year, $996 per policy per year, and 100 basis points of the value of the collateral pool per year, respectively. The Company charges a management fee to the Carlisle and LP funds that range between fifty and two hundred basis points of AUM divided by 12. As of March 31, 2026, the Company had $13,297,909 and $14,509,188 current and noncurrent related party receivables due from the related party funds, respectively. As of December 31, 2025, the Company had $9,320,103 and $14,800,140 current and noncurrent related party receivables due from related party funds, respectively. As of March 31, 2026, the current related-party receivable balance was mainly comprised of $10,134,293 and $1,172,514 from the Carlisle Funds related to management fees and policy sales, respectively. As of December 31, 2025, the current related-party receivable balance was mainly comprised of $6,718,903 and $2,055,170 from the Carlisle Funds related to management fees and policy sales, respectively. All noncurrent related party receivables are due from the Carlisle Funds. The Company may at times purchase life policies with different risk characteristics and risk profiles from the Carlisle Funds or LP Funds for life solutions revenue purposes. For the three months ended March 31, 2026, the Company paid $825,366 to acquire policies from the Carlisle Funds. For the three months ended March 31, 2025, the Company did not acquire policies from the LP Funds. For the three months ended March 31, 2026 and 2025, the Company recognized $6,656,464 and $6,698,201 in asset management fees from the related party funds, respectively, as follows:
For the three months ended March 31, 2026 and 2025, the Company recognized $16,550,621 and $901,346 in net revenue from life policy sales to the Carlisle and LP, respectively. The $16,550,621 revenue for the three months ended March 31, 2026 was a result of realized gains on sales of $87,931,646, offset by the reversals of prior period unrealized gains of $67,637,417 and premiums paid during the period of $3,743,608. The revenue $901,346 for the three months ended March 31, 2025 was a result of realized gains on sales of $901,346.
For the three months ended March 31, 2026 and 2025, the Company recognized $760,237 and $326,487 in servicing revenue from related parties, respectively. Refer to Note 10, Consolidation of Variable Interests for additional information on consolidation considerations for the Carlisle, LP, and Securitization Entity. Refer to Note 2, Summary of Significant Accounting Policies within the 2025 Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional information discussing the Company’s revenue recognition polices for transactions with the Carlisle, LP, and Securitization Entity.
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