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FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
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.
| Fair Value Hierarchy
As of September 30, 2023 | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Life settlement policies | $ | — |  |  | $ | — |  |  | $ | 83,585,374 |  |  | $ | 83,585,374 |
Available-for-sale securities, at fair value | — |  |  | — |  |  | 1,000,000 |  |  | 1,000,000 |
Other investments | — |  |  | — |  |  | 1,650,000 |  |  | 1,650,000 |
S&P 500 options | 1,494,744 |  |  | — |  |  | — |  |  | 1,494,744 |
Other assets | 998,469 |  |  | — |  |  | — |  |  | 998,469 |
Total assets held at fair value | $ | 2,493,213 |  |  | $ | — |  |  | $ | 86,235,374 |  |  | $ | 88,728,587 |
Liabilities: |  |  |  |  |  |  |
Long-term debt | $ | — |  |  | $ | — |  |  | $ | 59,544,907 |  |  | $ | 59,544,907 |
Private placement warrants | — |  |  | — |  |  | 3,382,000 |  |  | 3,382,000 |
Total liabilities held at fair value: | $ | — |  |  | $ | — |  |  | $ | 62,926,907 |  |  | $ | 62,926,907 |
| Fair Value Hierarchy
As of December 31, 2022 | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Life settlement policies | $ | — |  |  | $ | — |  |  | $ | 13,809,352 |  |  | $ | 13,809,352 |
Available-for-sale securities, at fair value | — |  |  | — |  |  | 1,000,000 |  |  | 1,000,000 |
Other investments | — |  |  | — |  |  | 1,300,000 |  |  | 1,300,000 |
S&P 500 options | 890,829 |  |  | — |  |  | — |  |  | 890,829 |
Total assets held at fair value | $ | 890,829 |  |  | $ | — |  |  | $ | 16,109,352 |  |  | $ | 17,000,181 |
Liabilities: |  |  |  |  |  |  |
Long-term debt | $ | — |  |  | $ | — |  |  | $ | 28,249,653 |  |  | $ | 28,249,653 |
Total liabilities held at fair value: | $ | — |  |  | $ | — |  |  | $ | 28,249,653 |  |  | $ | 28,249,653 |
Fair Value Measurement Inputs and Valuation Techniques | If the discount rate increased or decreased by 2 percentage points and the other assumptions used to estimate fair value remained the same, the change in estimated fair value as of September 30, 2023, would be as follows:
As of September 30, 2023 | Fair Value |  | Change in Fair Value
Rate Adjustment |
+2% | $ | 78,288,612 |  |  | $ | (5,296,762) |
No change | 83,585,374 |  |  |
-2% | 89,102,871 |  |  | 5,517,497 |
The following table presents the key assumptions in the analysis:
| Private Placement Warrants
Expected implied volatility | de minimis
Risk-free interest rate | 4.09%
Term to expiration | 5.0 years
Exercise price | $11.50
Common Stock Price | $10.03
Dividend Yield | —%
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 September 30, 2023:
Carrier | Percentage of Face Value |  | Percentage of Fair Value |  | Carrier Rating
American General Life Insurance Company | 11.0 | % |  | 13.0 | % |  | A+
Transamerica | 14.0 | % |  | 16.0 | % |  | A
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a roll forward of the fair value of life insurance policies for the nine months-ended September 30, 2023:
Fair value at December 31, 2022 | $ | 13,809,352 |
Policies purchased | 116,053,728 |
Realized gain (loss) on matured/sold policies | 9,688,422 |
Premiums paid | (2,500,623) |
Unrealized gain(loss) on held policies | 14,259,665 |
Change in estimated fair value | 21,447,464 |
Matured/sold policies | (70,225,793) |
Premiums paid | 2,500,623 |
Fair value at September 30, 2023 | $ | 83,585,374 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a roll forward of the fair value of the issued notes for the nine months ended September 30, 2023:
Fair value at December 31, 2022 | $ | 28,249,653 |
Debt issued to third parties | 88,618,714 |
Unrealized loss on change in fair value (risk-free) | 309,865 |
Unrealized loss on change in fair value (credit-adjusted) included in OCI | 1,635,596 |
Change in estimated fair value resulted into gain | 1,945,461 |
Fair value at September 30, 2023 | $ | 118,813,828 |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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