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MSP Recovery Inc. (LIFW+93.08%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing claims recovery income of $3,577,000, up from $440,000 in the same quarter the previous year. The increase is attributed to higher settlements during the period.
Cost of revenue for the quarter was $1,671,000, compared to $574,000 in the same quarter of the previous year. This increase is due to higher assignor and law firm costs, correlating with the rise in claims recovery income.
The company reported a net loss of $190,384,000 for the quarter, compared to $224,217,000 in the previous year. The decrease in net loss is primarily due to a $45,341,000 gain from changes in the fair value of warrant and derivative liabilities.
Interest expense for the quarter increased to $106,653,000 from $88,279,000 in the previous year, mainly driven by increases related to the guaranty obligation and the new Hazel Working Credit Facility.
General and administrative expenses decreased to $5,329,000 from $6,130,000, primarily due to reductions in marketing and promotions, rent, and insurance expenses.
Professional fees decreased to $3,248,000 from $2,466,000, while professional fees - legal decreased significantly to $2,213,000 from $6,871,000, due to a reduction in outsourced law firm fees.
Cash used in operating activities was $17,851,000 for the nine months ended September 30, 2024, compared to $31,533,000 in the same period the previous year. The decrease is primarily due to changes in working capital and claims amortization expense.
MSP Recovery reported total assets of $2,787,852,000 and total liabilities of $1,940,864,000 as of September 30, 2024. The company's stockholders' equity was $300,347,000.
The company acknowledges substantial doubt about its ability to continue as a going concern, citing the need for additional funds through debt or equity securities to meet future obligations.
The filing also details various financial agreements, including amendments to the Hazel Working Capital Credit Facility and the Yorkville Standby Equity Purchase Agreement.
MSP Recovery continues to focus on expanding its claims recovery operations and addressing its liquidity challenges through strategic financial arrangements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the MSP Recovery Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.