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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTINGSegment Information—The Business Combination that took place on June 30, 2023, where ERES, LMA and Abacus Settlements consummated the combining of the Companies, triggered a re-organization of Abacus Life Inc., where the legacy Abacus Settlements business and legacy LMA business would both operate under Abacus Life, Inc. subsequent to the Business Combination date. Abacus Settlement’s historically had one operating segment one reportable segment, Originations. LMA historically had two operating segments, (1) Portfolio Servicing and (2) Active Management. As the Business Combination did not occur until the last day of the second quarter, income activity related to Abacus Settlements had not yet been reported by Abacus Life, Inc. as the businesses did not begin operating as a combined Company until July 1, 2023. As such, beginning in the third quarter, the Company now organizes its business into three reportable segments (1) Portfolio Servicing, (2) Active Management and (3) Originations, which all generate revenue and incur expenses in different manners.
This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision maker (CODM), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s CODM is the President and Chief Executive Officer. The Company’s reportable segments are not aggregated.
The Portfolio Servicing segment generates revenues by providing policy services to customers on a contract basis.
The Active Management segment generates revenues by buying, selling, and trading policies and maintaining policies until receipt of death benefits.
The Originations segment generates revenue by originating life insurance policy settlements between investors or buyers, and the sellers, who is often the original policy owner. The policies are purchased from owners or other providers through advisors, brokers or directly through the owner.

The Company’s method for measuring profitability on a reportable segment basis is gross profit. The CODM does not review asset information related to investments nor expenditures incurred for long-lived assets given the Company’s investments are recognized using the measurement alternative, and the Company’s long-lived assets are immaterial to the condensed consolidated financial statements.
Revenue related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023, and September 30, 2022, is as follows:

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Portfolio servicing$224,569 $382,245 $814,626 $1,372,573 
Active management18,926,144 11,125,503 39,921,061 28,411,475 
Originations
10,214,489 — 10,214,489 — 
Segment revenue (including inter-segment)
29,365,202 11,507,748 50,950,176 29,784,048 
    Inter-segment elimination(8,244,272)— (8,244,272)— 
Total revenue$21,120,930 $11,507,748 $42,705,904 $29,784,048 
Information related to the Company’s reporting segments for the three-month and nine-month periods ended September 30, 2023 and September 30, 2022 is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Portfolio servicing$(626,045)$(106,817)$(792,173)$561,935 
Active management13,856,637 9,859,671 34,144,789 25,381,144 
Originations4,525,381 — 4,525,381 — 
Total gross profit17,755,973 9,752,854 37,877,997 25,943,079 
Sales and marketing(1,704,154)(14,905)(3,116,999)(1,664,403)
General and administrative (including stock based compensation of $4,583,632)
(9,838,951)(59,816)(11,113,382)(706,523)
Depreciation and amortization expense(1,694,853)(1,071)(1,696,994)(3,211)
Other (expense) income20,086 42,289 (1,565)(199,958)
Loss on change in fair value of warrant liability (943,400)— (943,400)— 
Interest expense(2,679,237)— (3,620,695)— 
Interest income63,826 — 71,283 — 
Gain (Loss) on change in fair value of debt2,088,797 1,235,032 (309,865)859,519 
Unrealized (loss) gain on investments(306,800)(246,846)491,356 (1,301,821)
Provision for income taxes(1,710,315)(352,081)(2,238,419)(648,887)
Less: Net gain (loss) attributable to non-controlling interests(147,611)(363,452)339,692 (770,093)
Net income attributable to Abacus Life, Inc.$903,361 $9,992,004 $15,739,009 $21,507,702 
Segment gross profit is defined as revenues less cost of sales, excluding depreciation and amortization. Expenses below the gross profit line are not allocated across operating segments, as they relate primarily to the overall management of the consolidated entity.
As of September 30, 2023 and 2022, our operations are confined to the United States. Therefore, we have not generated significant revenues or made significant capital expenditures in any geographic areas outside of the United States.