424B3

 


Filed Pursuant to Rule 424(b)(3)

Registration No. 333-265953

 

PROSPECTUS SUPPLEMENT NO. 1

(to Prospectus dated July 21, 2022)

 

MSP Recovery, Inc.

 

Up to 3,981,159,239 Shares of Class A Common Stock

Up to 755,200,000 Warrants to Purchase Shares of Class A Common Stock

Up to 1,032,578,731 Shares of Class A Common Stock Underlying Warrants

 

This prospectus supplement amends and supplements the prospectus dated July 21, 2022 (as supplemented or amended from time to time, the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (No. 333-265953). This prospectus supplement is being filed to update and supplement the information in the Prospectus with the information contained in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the “SEC”) on August 12, 2022 (the “Quarterly Report”). Accordingly, we have attached the Quarterly Report to this prospectus supplement.

 

The Prospectus and this prospectus supplement relate to the offer and sale, from time to time, by the selling securityholders named in the Prospectus (the “Selling Securityholders”), or any of their permitted transferees, of (i) up to an aggregate of 755,525,000 shares of Common Stock (as defined in the Prospectus) otherwise held by the Selling Securityholders; (ii) up to an aggregate of 325,000 shares of Common Stock that may be issued upon exercise of Private Warrants (as defined in the Prospectus); (iii) up to an aggregate of 755,200,000 shares of Common Stock that may be issued upon exercise of New Warrants (as defined in the Prospectus); (iv) up to an aggregate of 5,750,000 shares of Common Stock that were issued to certain investors, including the Sponsor (as defined in the Prospectus) in a private placement in connection with the closing of the Business Combination (as defined in the Prospectus); (v) up to an aggregate of 650,000 shares of Common Stock that were issued to certain investors in a private placement of Private Units (as defined in the Prospectus) in connection with the Business Combination; (vi) up to an aggregate of 3,167,967,900 shares of Common Stock exchangeable for Up-C Units (as defined in the Prospectus) originally issued to certain Selling Securityholders, including the Members (as defined in the Prospectus), as consideration in the Business Combination for their membership interests in the MSP Purchased Companies (as defined in the Prospectus) or issuable pursuant to the terms of existing contracts; (vii) up to an aggregate of 50,022,000 shares of Common Stock issued to certain Selling Securityholders upon exchange of Up-C Units designated by the Members and issued in a private placement by the Company in lieu of a corresponding number of Up-C Units to which such Members were otherwise entitled but designated back to the Company and Opco (as defined in the Prospectus) pursuant to the terms of the Business Combination; (viii) up to an aggregate of 1,244,339 shares of Common Stock issued to certain Selling Securityholders in a private placement by the Company pursuant to the terms of existing contracts; (ix) up to an aggregate of 4,532,405 shares of Common Stock issuable upon the exercise of up to 4,532,405 Public Warrants (as defined in the Prospectus); and (x) up to an aggregate of 1,028,046,326 shares of Common Stock issuable upon the exercise of up to 1,028,046,326 New Warrants. The Prospectus and this prospectus supplement also cover any additional securities that may become issuable by reason of share splits, share dividends or other similar transactions.

 

Our Common Stock, Public Warrants and New Warrants are listed on Nasdaq under the symbols “MSPR,” “MSPRZ” and “MSPRW”. On August 11, 2022, the closing price of Common Stock was $1.43 per share, the closing price of our Public Warrants was $1.51 per warrant and the closing price of our New Warrants was $0.0721 per warrant.

 

Investing in our securities involves risks that are described in the “Risk Factors” section beginning on page 9 of the Prospectus and any in any applicable prospectus supplement.

 

Neither the SEC nor any state securities commission has approved or disapproved of the securities to be issued under the Prospectus or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

The date of this prospectus supplement is August 12, 2022.

 


 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-39445

 

MSP Recovery, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

84-4117825

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

2710 Le Jeune Road

Floor 10

Coral Gables, Florida

33134

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (305) 614-2222

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock, $0.0001 par value per share

 

MSPR

 

The Nasdaq Global Market

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share

 

MSPRW

 

The Nasdaq Global Market

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $0.0001 per share

 

MSPRZ

 

The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

 


 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No

As of July 31, 2022, the registrant had 66,142,649 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

 

 

Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021

2

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021

3

 

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2022 and 2021

4

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

39

Item 4.

Controls and Procedures

39

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

41

Item 1A.

Risk Factors

41

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

76

Item 3.

Defaults Upon Senior Securities

76

Item 4.

Mine Safety Disclosures

76

Item 5.

Other Information

76

Item 6.

Exhibits

76

Signatures

78

 

 

 

 

i


Table of Contents

Part I - Financial Information

Item 1. Financial Statements

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

(In thousands except per share amounts)

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

25,045

 

 

$

1,664

 

Restricted cash

 

 

11,420

 

 

 

-

 

Accounts receivable

 

 

901

 

 

 

-

 

Affiliate receivable (1)

 

 

2,111

 

 

 

4,070

 

Indemnification asset (1)

 

 

719,413

 

 

 

-

 

Prepaid expenses and other current assets (1)

 

 

36,890

 

 

 

13,304

 

Total current assets

 

 

795,780

 

 

 

19,038

 

Property, plant and equipment, net

 

 

950

 

 

 

750

 

Deferred tax asset

 

 

857

 

 

 

-

 

Intangible assets, net

 

 

2,095,735

 

 

 

84,218

 

Investment in rights to claim recovery cash flows

 

 

3,673,610

 

 

 

-

 

Total assets

 

$

6,566,932

 

 

$

104,006

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

29,575

 

 

$

4,609

 

Affiliate payable (1)

 

 

20,202

 

 

 

45,252

 

Commission payable

 

 

476

 

 

 

465

 

Deferred service fee income

 

 

249

 

 

 

249

 

Derivative Liability

 

 

9,003

 

 

 

-

 

Warrant Liability

 

 

9,708

 

 

 

-

 

Guaranty obligation

 

 

719,413

 

 

 

-

 

Other current liabilities

 

 

11,057

 

 

 

3,489

 

Total current liabilities

 

 

799,683

 

 

 

54,064

 

Claims financing obligation and notes payable (1)

 

 

111,395

 

 

 

106,805

 

Loan from related parties (1)

 

 

125,759

 

 

 

-

 

Interest payable

 

 

111,324

 

 

 

94,545

 

Total liabilities

 

$

1,148,161

 

 

$

255,414

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock subject to possible redemption, 1,129,589 shares at redemption value as of June 30, 2022.

 

 

2,417

 

 

 

-

 

 

 

 

 

 

 

 

Stockholders' Equity (Deficit):

 

 

 

 

 

 

Class A common stock, $.0001 par value; 5,500,000,000 shares authorized; 66,051,029 issued and outstanding as of June 30, 2022

 

$

7

 

 

$

-

 

Class V common stock, $.0001 par value; 3,250,000,000 shares authorized; 3,154,473,292 issued and outstanding as of June 30, 2022

 

 

315

 

 

 

-

 

Additional paid-in capital

 

 

187,269

 

 

 

-

 

Members' equity

 

 

-

 

 

 

(155,756

)

Accumulated deficit

 

 

(23,074

)

 

 

-

 

Total Stockholders' Equity (Deficit)

 

$

164,517

 

 

$

(155,756

)

Non-controlling interest

 

 

5,251,837

 

 

 

4,348

 

Total equity

 

$

5,416,354

 

 

$

(151,408

)

Total liabilities and equity

 

$

6,566,932

 

 

$

104,006

 

 

1.
As of June 30, 2022 and December 31, 2021, the total affiliate receivable, indemnification asset, affiliate payable and loan from related parties balances are with related parties. In addition, the prepaid expenses and other current assets and claims financings obligation and notes payable includes balances with related parties. See Note 13, Related Party, for further details.

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2


Table of Contents

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

 

For the three months
ended June 30,

 

 

For the six months
ended June 30,

 

(In thousands except per share amounts)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Claims recovery income

 

$

1,319

 

 

$

 

 

$

1,428

 

 

$

15

 

Claims recovery service income (1)

 

 

3,971

 

 

 

3,360

 

 

 

12,047

 

 

 

6,774

 

Total Claims Recovery

 

$

5,290

 

 

$

3,360

 

 

$

13,475

 

 

$

6,789

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of claim recoveries (2)

 

 

694

 

 

 

-

 

 

 

701

 

 

 

8

 

Claims amortization expense

 

 

23,818

 

 

 

36

 

 

 

26,535

 

 

 

67

 

General and administrative (3)

 

 

5,982

 

 

 

2,723

 

 

 

10,428

 

 

 

5,336

 

Professional fees

 

 

3,118

 

 

 

1,970

 

 

 

5,056

 

 

 

3,067

 

Professional fees - legal (4)

 

 

23,765

 

 

 

8

 

 

 

26,237

 

 

 

30

 

Depreciation and amortization

 

 

72

 

 

 

135

 

 

 

151

 

 

 

167

 

Total operating expenses

 

 

57,449

 

 

 

4,872

 

 

 

69,108

 

 

 

8,675

 

Operating Loss

 

$

(52,159

)

 

$

(1,512

)

 

$

(55,633

)

 

$

(1,886

)

Interest expense

 

 

(10,977

)

 

 

(6,667

)

 

 

(21,392

)

 

 

(12,589

)

Other (expense) income, net

 

 

39

 

 

 

899

 

 

 

37

 

 

 

1,323

 

Change in fair value of warrant and derivative liabilities

 

 

(14,353

)

 

 

-

 

 

 

(14,353

)

 

 

-

 

Net loss before provision for income taxes

 

$

(77,450

)

 

$

(7,280

)

 

$

(91,341

)

 

$

(13,152

)

Provision for income tax benefit (expense)

 

 

326

 

 

 

-

 

 

 

326

 

 

 

-

 

Net loss

 

$

(77,124

)

 

$

(7,280

)

 

$

(91,015

)

 

$

(13,152

)

Less: Net (income) loss attributable to non-controlling members

 

 

75,836

 

 

 

-

 

 

 

89,727

 

 

 

-

 

Net loss attributable to controlling members

 

$

(1,288

)

 

$

(7,280

)

 

$

(1,288

)

 

$

(13,152

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares outstanding, Class A Common Stock (5)

 

 

13,607,255

 

 

N/A

 

 

 

13,607,255

 

 

N/A

 

Basic and diluted net income per share, Class A Common Stock (5)

 

$

(0.09

)

 

N/A

 

 

$

(0.09

)

 

N/A

 

 

1.
For the three and six months ended June 30, 2022 and 2021, claims recovery service income included $3.2 million and $10.6 million, respectively, and $2.6 million and $5.3 million, respectively, of claims recovery service income from VRM MSP Recovery Partners LLC (“VRM”). See Note 13, Related Party, for further details.
2.
For the three and six months ended June 30, 2022, cost of claim recoveries included $231 thousand and $271 thousand, respectively, of related party expenses. This relates to contingent legal expenses earned from claims recovery income pursuant to legal service agreements with the La Ley con John H. Ruiz P.A., d/b/a MSP Recovery Law Firm (the "Law Firm"). See Note 13, Related Party, for further details. For the three and six months ended June 30, 2021, there were no expenses related to contingent legal expenses.
3.
For the three and six months ended June 30, 2022 and 2021, general and administrative expenses included $156 thousand and $250 thousand, respectively, and $19 thousand and $19 thousand, respectively, of related party expenses. See Note 13, Related Party, for further details.
4.
For the three and six months ended June 30, 2022 and 2021, professional fees - legal included $0.0 million and $0.3 million, respectively, $5 thousand and $8 thousand, respectively, of related party expenses related to the Law Firm. See Note 13, Related Party, for further details.
5.
Earnings per share information has not been presented for periods prior to the Business Combination (as defined in Note 1), as it resulted in values that would not be meaningful to the users of these unaudited condensed consolidated financial statements. Refer to Note 15 for further information.

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3


Table of Contents

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

 

Three Months Ended June 30, 2022

 

 

 

Class A Common Stock

 

 

Class V Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands except shares)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional Paid-in Capital

 

 

Members' Deficit

 

 

Accumulated Deficit

 

 

Non- Controlling Interests

 

 

Total Equity

 

Balance at March 31, 2022

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

(169,749

)

 

$

 

 

$

4,348

 

 

$

(165,401

)

Contributions prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

Distributions prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(45

)

 

 

 

 

 

 

 

 

(45

)

Net loss prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,749

)

 

 

 

 

 

 

 

 

(14,749

)

Cumulative effect of recapitalization transaction

 

 

7,582,668

 

 

 

1

 

 

 

3,154,473,292

 

 

 

315

 

 

 

48,773

 

 

 

184,528

 

 

 

 

 

 

5,406,736

 

 

 

5,640,353

 

Opening net assets of Lionheart II Holdings, LLC acquired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,786

)

 

 

 

 

 

(21,786

)

Adjustment for value of derivative on temporary equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,003

 

 

 

 

 

 

 

 

 

 

 

 

9,003

 

Conversion of Warrants

 

 

7,202,022

 

 

 

1

 

 

 

 

 

 

 

 

 

20,462

 

 

 

 

 

 

 

 

 

(12,287

)

 

 

8,177

 

Class A Issuances

 

 

51,266,339

 

 

 

5

 

 

 

 

 

 

 

 

 

109,031

 

 

 

 

 

 

 

 

 

(85,872

)

 

 

23,164

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,288

)

 

 

(61,088

)

 

 

(62,376

)

Balance at June 30, 2022

 

 

66,051,029

 

 

$

7

 

 

 

3,154,473,292

 

 

$

315

 

 

$

187,269

 

 

$

 

 

$

(23,074

)

 

$

5,251,837

 

 

$

5,416,354

 

 

 

4


Table of Contents

Six Months Ended June 30, 2022

 

(In thousands except shares)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional Paid-in Capital

 

 

Members' Deficit

 

 

Accumulated Deficit

 

 

Non- Controlling Interests

 

 

Total Equity

 

Balance at December 31, 2021

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

(155,756

)

 

$

 

 

$

4,348

 

 

$

(151,408

)

Contributions prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

Distributions prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(147

)

 

 

 

 

 

 

 

 

(147

)

Net loss prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,640

)

 

 

 

 

 

 

 

 

(28,640

)

Cumulative effect of recapitalization transaction

 

 

7,582,668

 

 

 

1

 

 

 

3,154,473,292

 

 

 

315

 

 

 

48,773

 

 

 

184,528

 

 

 

 

 

 

5,406,736

 

 

 

5,640,353

 

Opening net assets of Lionheart II Holdings, LLC acquired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,786

)

 

 

 

 

 

(21,786

)

Adjustment for value of derivative on temporary equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,003

 

 

 

 

 

 

 

 

 

 

 

 

9,003

 

Conversion of Warrants

 

 

7,202,022

 

 

 

1

 

 

 

 

 

 

 

 

 

20,462

 

 

 

 

 

 

 

 

 

(12,287

)

 

 

8,177

 

Class A Issuances

 

 

51,266,339

 

 

 

5

 

 

 

 

 

 

 

 

 

109,031

 

 

 

 

 

 

 

 

 

(85,872

)

 

 

23,164

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,288

)

 

 

(61,088

)

 

 

(62,376

)

Balance at June 30, 2022

 

 

66,051,029

 

 

$

7

 

 

 

3,154,473,292

 

 

$

315

 

 

$

187,269

 

 

$

 

 

$

(23,074

)

 

$

5,251,837

 

 

$

5,416,354

 

 

Three Months Ended June 30, 2021

 

(In thousands)

 

Members' Deficit

 

 

Non- Controlling Interests

 

 

Total Equity

 

Balance at March 31, 2021

 

$

(126,096

)

 

$

4,332

 

 

$

(121,764

)

Contributions

 

 

1

 

 

 

 

 

 

1

 

Distributions

 

 

(259

)

 

 

 

 

 

(259

)

Net loss

 

 

(7,280

)

 

 

 

 

 

(7,280

)

Balance at June 30, 2021

 

$

(133,634

)

 

$

4,332

 

 

$

(129,302

)

 

Six Months Ended June 30, 2021

 

5


Table of Contents

(In thousands)

 

Members' Deficit

 

 

Non- Controlling Interests

 

 

Total Equity

 

Balance at December 31, 2020

 

$

(120,179

)

 

$

4,332

 

 

$

(115,847

)

Contributions

 

 

227

 

 

 

 

 

 

227

 

Distributions

 

 

(530

)

 

 

 

 

 

(530

)

Net loss

 

 

(13,152

)

 

 

 

 

 

(13,152

)

Balance at June 30, 2021

 

$

(133,634

)

 

$

4,332

 

 

$

(129,302

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


Table of Contents

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the six months
ended June 30,

 

(In thousands)

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss (1)

 

$

(91,015

)

 

$

(13,152

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

151

 

 

 

167

 

Claims amortization expense

 

 

26,535

 

 

 

67

 

Paid in kind interest

 

 

21,369

 

 

 

12,577

 

Change in fair value of derivatives

 

 

9,003

 

 

 

 

Deferred income taxes

 

 

(857

)

 

 

 

Share based compensation

 

 

20,055

 

 

 

 

Change in fair value of warrant liability

 

 

5,350

 

 

 

 

PPP loan forgiveness

 

 

 

 

 

(958

)

Realized gain on equity securities

 

 

 

 

 

(335

)

Unrealized losses on investments - short position

 

 

 

 

 

(114

)

Change in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(901

)

 

 

 

Affiliate receivable (1)

 

 

1,959

 

 

 

(1,173

)

Affiliate payable (1)

 

 

(25,050

)

 

 

(112

)

Prepaid expenses and other assets

 

 

(36,838

)

 

 

(4,129

)

Commission payable

 

 

10

 

 

 

 

Accounts payable and accrued liabilities

 

 

9,317

 

 

 

1,215

 

Deferred service fee income

 

 

 

 

 

(249

)

Net cash used in operating activities

 

 

(60,912

)

 

 

(6,196

)

Cash flows from investing activities:

 

 

 

 

 

 

Additions to property, plant, and equipment

 

 

(315

)

 

 

(323

)

Additions to intangible assets

 

 

(2,700

)

 

 

 

Proceeds from sale of equity securities

 

 

 

 

 

2,577

 

Purchases of equity securities

 

 

 

 

 

(4,056

)

Purchase of securities to cover short position