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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING
10.
SEGMENT REPORTING
Segment Information
—The Company organizes its business into two reportable segments (1) Portfolio Servicing and (2) Active Management, which generate revenue 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 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 Company’s reportable segments are not aggregated.
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
six-month
periods ended June 30, 2023, and June 30, 2022, is as follows:
 
    
Three Months Ended June 30,
     
Six Months Ended June 30,
  
    
2023
     
2022
     
2023
     
2022
  
Portfolio servicing
    $ 354,366      $ 419,422      $ 590,057      $ 990,328  
Active management
      11,024,399        7,979,479        20,994,917        17,285,971  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total revenue
    $ 11,378,765      $ 8,398,901      $ 21,584,974      $ 18,276,299  
  
 
 
     
 
 
     
 
 
     
 
 
  
Information related to the Company’s reporting segments for the three-month and
six-month
periods ended June 30, 2023 and June 30, 2022 is as follows:
 
    
Three Months Ended June 30,
     
Six Months Ended June 30,
  
    
2023
     
2022
     
2023
     
2022
  
Portfolio servicing
    $ (76,705 )     $ 280,303      $ (166,128 )     $ 668,752  
Active management
      10,482,070        7,452,479        20,288,152        15,521,472  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total gross profit
      10,405,365        7,732,782        20,122,024        16,190,224  
  
 
 
     
 
 
     
 
 
     
 
 
  
Sales and marketing
      (683,841 )       (1,019,498 )       (1,412,845 )       (1,649,498 ) 
General, administrative and other
      (577,539 )       (5,499 )       (1,274,431 )       (646,705 ) 
Depreciation
      (1,098 )       (1,098 )       (2,141 )       (2,141 ) 
Other (expense) income
      121,601        (127,455 )       (21,651 )       (242,247 ) 
Interest expense
      (584,075 )       —        (934,001 )       —  
Loss on change in fair value of debt
      (1,445,229 )       (333,879 )       (2,398,662 )       (375,513 ) 
Unrealized gain (loss) on investments
      672,936        (1,039,022 )       798,156        (1,054,975 ) 
Provision for income taxes
      (1,184,571 )       (120,132 )       (528,104 )       (296,806 ) 
Less: Net loss attributable to
non-controlling
interests
      26,596        (406,641 )       487,303        (406,641 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Net income attributable to Abacus Life, Inc.
    $ 6,750,145      $ 4,679,558      $ 14,835,648      $ 11,515,698