FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2026

Schedules of Fair Value Measurements, Recurring and Nonrecurring

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. The Company evaluates its estimates and judgments on an ongoing basis. The Company bases its estimates on historical experience and or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ materially from management’s estimates.


	Fair Value Hierarchy
As of March 31, 2026	Level 1		Level 2		Level 3		Total
Assets:
Life settlement policies, at fair value	$	—	$	—	$	392,770,863	$	392,770,863


Total assets held at fair value	$	—	$	—	$	392,770,863	$	392,770,863

Liabilities:

Long-term debt, at fair value	$	—	$	—	$	38,156,705	$	38,156,705

Total liabilities held at fair value:	$	—	$	—	$	38,156,705	$	38,156,705


	Fair Value Hierarchy
As of December 31, 2025	Level 1		Level 2		Level 3		Total
Assets:
Life settlement policies, at fair value	$	—	$	—	$	468,857,929	$	468,857,929


Total assets held at fair value	$	—	$	—	$	468,857,929	$	468,857,929

Liabilities:
Current portion of long-term debt, at fair value	$	—	$	—	$	114,424,000	$	114,424,000


Total liabilities held at fair value:	$	—	$	—	$	114,424,000	$	114,424,000

Schedules of Fair Value Measurement Inputs and Valuation Techniques

The following table provides quantitative information about significant unobservable inputs for Level 3 fair value measurements as of March 31, 2026:


Fair Value		Valuation Technique	Significant Unobservable Inputs	Weighted Average		Range
Life insurance polices:
$	392,770,863	Discounted cash flow with Monte Carlo simulation	Discount rate	10	%	10% —11%

			Life expectancy (months)	39 months		1 month —265 months
			Risk score	2.25		1 —5
Secured borrowing, at fair value:
$	38,156,705	Discounted cash flow	Discount rate	8.4	%	8.0% — 8.5%

The following table provides quantitative information about significant unobservable inputs for Level 3 fair value measurements as of December 31, 2025:

Fair Value

Valuation Technique

Significant Unobservable Inputs

Weighted Average

Range

Life insurance polices:

468,857,929

Discounted cash flow with Monte Carlo simulation

Discount rate

13% —15%

Life expectancy (months)

45 months

1 month —267 months

Risk score

2.16

1 —5

If the discount rate increased or decreased by one percentage point and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of March 31, 2026, would be as follows:


	Fair Value		Change in Fair Value	Implied Realized Gain
+1%	$	385,694,793	(7,076,070)	22	%
No change	392,770,863			24	%
-1%	$	409,128,486	16,357,623	29	%

If the historical realized gains increased or decreased by one percentage point and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of March 31, 2026, would be as follows:


	Fair Value		Change in Fair Value
+1%	$	395,142,114	$	2,371,251
No change	392,770,863		—
-1%	$	388,819,840	$	(3,951,023)

Schedules of Concentration of Risk, by Risk Factor

The following table provides information about the life insurance issuer concentrations that exceed 10% of total face value or 10% of total fair value of the Company’s life insurance policies as of March 31, 2026:

Carrier

Percentage of
Face Value

Percentage of
Fair Value

Carrier

Rating1

Transamerica

14.8%

16.1%

Lincoln National Life Insurance Company

12.1%

13.5%

1 Carrier ratings are based on AM Best ratings.

Schedules of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a rollforward of the fair value of life insurance policies for the three months ended March 31, 2026 and March 31, 2025:


	Three Months Ended March 31,
	2026		2025
Balance, beginning of period	$	468,857,929	$	370,398,447
Policies purchased1	156,739,049		105,633,081
Matured/sold policies2	(197,620,829)		(56,836,082)


Unrealized gain on held policies and reversal of prior quarter unrealized gain on policies sold and matured	(35,205,286)		27,012,517



Balance, end of period	$	392,770,863	$	446,207,963

1 Policies purchased represents life insurance policies purchased during the period.
2 Matured/sold policies represents life insurance policies held at the beginning of the period and those purchased during the period that also matured or were sold within the period.

The following table provides a reconciliation of revenue from life insurance policies held using the fair value method for the three months ended March 31, 2026 and March 31, 2025:


	Three Months Ended March 31,
Gains or losses recognized in life solutions revenue in the consolidated statements of operations and comprehensive income:	2026		2025
Realized gain on matured/sold policies	$	92,894,712	$	15,130,764
Premiums paid	(9,676,748)		(8,308,074)
Unrealized gain on held policies and reversal of prior quarter unrealized gain on policies sold and matured	(35,205,286)		27,012,517
Revenue from life insurance policies held using the fair value method	$	48,012,678	$	33,835,207

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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