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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 14, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	GWG Holdings, Inc.
Entity Central Index Key	0001522690
Trading Symbol	GWGH
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,813,555

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Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
A S S E T S
Cash and cash equivalents	$ 124,444,804	$ 114,421,491
Restricted cash	6,651,309	28,349,685
Investment in life insurance policies, at fair value	726,063,244	650,527,353
Life insurance policy benefits receivable	27,035,000	16,658,761
Other assets	10,841,567	8,898,884
TOTAL ASSETS	895,035,924	818,856,174
LIABILITIES
Senior credit facility with LNV Corporation	180,630,553	212,238,192
L Bonds	518,788,942	447,393,568
Accounts payable	2,626,283	6,394,439
Interest and dividends payable	16,936,725	15,427,509
Other accrued expenses	4,031,070	3,730,723
TOTAL LIABILITIES	723,013,573	685,184,431
STOCKHOLDERS' EQUITY
REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 100,000; shares outstanding 98,095 and 98,611; liquidation preference of $98,667,000 and $99,186,000 as of June 30, 2018 and December 31, 2017, respectively)	88,997,278	92,840,243
SERIES 2 REDEEMABLE PREFERRED STOCK (par value $0.001; shares authorized 150,000; shares outstanding 148,705 and 88,709; liquidation preference of $149,573,000 and $89,208,000 as of June 30, 2018 and December 31, 2017, respectively)	131,704,423	80,275,204
COMMON STOCK (par value $0.001: shares authorized 210,000,000; shares issued and outstanding 5,813,555 as of both June 30, 2018 and December 31, 2017)	5,813	5,813
Additional paid-in capital
Accumulated deficit	(48,685,163)	(39,449,517)
TOTAL STOCKHOLDERS' EQUITY	172,022,351	133,671,743
TOTAL LIABILITIES & EQUITY	$ 895,035,924	$ 818,856,174

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Redeemable preferred stock, par value	$ 0.001	$ 0.001
Redeemable preferred stock, shares authorized	100,000	100,000
Redeemable preferred stock, shares outstanding	98,095	98,611
Redeemable preferred stock, liquidation preference	$ 98,667,000	$ 99,186,000
Series 2 Redeemable Preferred Stock, par value	$ 0.001	$ 0.001
Series 2 Redeemable Preferred Stock, shares authorized	150,000	150,000
Series 2 Redeemable Preferred Stock, shares outstanding	148,705	88,709
Series 2 Redeemable Preferred Stock, liquidation preference	$ 149,573,000	$ 89,208,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	5,813,555	5,813,555
Common stock, shares outstanding	5,813,555	5,813,555

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
REVENUE
Gain on life insurance policies, net	$ 23,339,750	$ 11,296,266	$ 37,208,495	$ 30,696,086
Interest and other income	975,198	371,320	1,648,125	1,059,845
TOTAL REVENUE	24,314,948	11,667,586	38,856,620	31,755,931
EXPENSES
Interest expense	17,147,850	12,246,025	33,211,187	25,490,241
Employee compensation and benefits	3,235,699	3,741,299	6,978,368	6,904,360
Legal and professional fees	1,155,728	1,330,589	2,329,357	2,276,937
Other expenses	2,832,777	3,761,098	5,573,354	6,541,420
TOTAL EXPENSES	24,372,054	21,079,011	48,092,266	41,212,958
INCOME (LOSS) BEFORE INCOME TAXES	(57,106)	(9,411,425)	(9,235,646)	(9,457,027)
INCOME TAX EXPENSE (BENEFIT)		(3,717,174)		(3,717,674)
NET INCOME (LOSS)	(57,106)	(5,694,251)	(9,235,646)	(5,739,353)
Preferred stock dividends	4,338,487	2,031,097	8,042,971	3,898,857
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (4,395,593)	$ (7,725,348)	$ (17,278,617)	$ (9,638,210)
NET INCOME (LOSS) PER SHARE
Basic	$ (0.76)	$ (1.34)	$ (2.97)	$ (1.69)
Diluted	$ (0.76)	$ (1.34)	$ (2.97)	$ (1.69)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,813,555	5,777,724	5,813,555	5,710,909
Diluted	5,813,555	5,777,724	5,813,555	5,710,909

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (57,106)	$ (5,694,251)	$ (9,235,646)	$ (5,739,353)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Change in fair value of life insurance policies	(14,573,175)	(15,235,502)	(31,218,769)	(29,119,335)
Amortization of deferred financing and issuance costs	2,402,773	1,497,948	4,665,961	4,164,151
Deferred income taxes		(3,717,174)		(3,717,674)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(14,732,270)	2,005,000	(10,376,239)	(1,625,000)
Other assets	(1,732,765)	55,656	(1,809,206)	2,252,361
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses	542,090	1,400,844	(1,003,118)	2,947,050
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(28,150,453)	(19,687,479)	(48,977,017)	(30,837,800)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(30,248,939)	(19,432,338)	(55,548,764)	(42,121,671)
Carrying value of matured life insurance policies	6,148,349	3,014,834	11,231,643	5,383,808
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(24,100,590)	(16,417,504)	(44,317,121)	(36,737,863)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt	(29,080,815)	(3,845,037)	(32,135,150)	(7,099,537)
Payments for issuance of senior debt		(1,076,118)		(1,190,412)
Payments for redemption of Series I Secured Notes		(4,348,372)		(9,798,261)
Proceeds from issuance of L Bonds	60,536,446	31,875,811	97,197,545	56,744,470
Payments for issuance and redemption of L Bonds	(13,710,821)	(15,025,566)	(25,956,269)	(39,197,163)
Issuance (repurchase) of common stock		4		(1,603,556)
Proceeds from issuance of preferred stock	14,372,959	34,301,747	56,238,128	61,480,941
Payments for issuance of preferred stock	(984,599)	(1,945,618)	(4,142,294)	(3,963,105)
Payments for redemption of preferred stock	(1,212,690)	(1,372,593)	(1,539,914)	(1,759,332)
Preferred stock dividends	(4,338,487)	(2,031,097)	(8,042,971)	(3,898,857)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	25,581,993	36,533,161	81,619,075	49,715,188
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(26,669,050)	428,178	(11,675,063)	(17,860,475)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF PERIOD	157,765,163	98,024,925	114,421,491	116,313,578
END OF PERIOD	124,444,804	98,453,103	124,444,804	98,453,103
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	13,776,000	14,323,000	27,251,000	26,548,000
Premiums paid, including prepaid	12,393,000	11,646,000	24,226,000	22,606,000
Stock-based compensation	47,000	89,000	260,000	406,000
Payments for exercised stock options		100,000	37,000	100,000
NON-CASH INVESTING AND FINANCING ACTIVITIES
Options and stock appreciation rights issued	164,000	239,000	168,000	264,000
L Bonds:
Conversion of accrued interest and commissions payable to principal	219,000	397,000	562,000	905,000
Conversion of L Bonds to redeemable preferred stock	125,000	657,000	4,546,000	1,788,000
Preferred Stock:
Issuance of Series A Preferred Stock in lieu of cash dividends		166,000		337,000
Conversion of L Bonds to redeemable preferred stock	125,000	657,000	4,546,000	1,788,000
Investment in life insurance policies included in accounts payable	$ 990,000	$ 1,296,000	$ 990,000	$ 1,296,000

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Condensed Consolidated Statement of Changes In Stockholders' Equity (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2016	$ 67,298,498	$ 78,726,297	$ 5,980	$ 7,383,515	$ (18,817,294)
Beginning balance, shares at Dec. 31, 2016		2,699,704	5,980,190
Net income (loss)	(20,632,223)				(20,632,223)
Issuance of common stock	321,003		$ 33	320,970
Issuance of common stock, shares			33,810
Redemption of common stock	(1,603,560)		$ (200)	(1,603,360)
Redemption of common stock, shares			(200,445)
Issuance of Series A preferred stock	498,659	$ 498,659
Issuance of Series A preferred stock, shares		71,237
Redemption of Series A preferred stock	(20,199,792)	$ (20,199,792)
Redemption of Series A preferred stock, shares		(2,711,916)
Issuance of redeemable preferred stock	120,594,649	$ 122,933,106		(2,338,457)
Issuance of redeemable preferred stock, shares		129,622
Redemption of redeemable preferred stock	(1,327,776)	$ (1,327,776)
Redemption of redeemable preferred stock, shares		(1,328)
Preferred stock dividends	(12,702,341)	$ (8,925,807)		(3,776,534)
Stock-based compensation	1,424,626	1,410,760		13,866
Ending balance at Dec. 31, 2017	133,671,743	$ 173,115,447	$ 5,813		(39,449,517)
Ending balance, shares at Dec. 31, 2017		187,319	5,813,555
Net income (loss)	(9,235,646)				(9,235,646)
Issuance of redeemable preferred stock	56,878,238	$ 56,878,238
Issuance of redeemable preferred stock, shares		61,021
Redemption of redeemable preferred stock	(1,539,914)	$ (1,539,914)
Redemption of redeemable preferred stock, shares		(1,540)
Preferred stock dividends	(8,042,971)	$ (8,042,971)
Stock-based compensation	290,901	290,901
Ending balance at Jun. 30, 2018	$ 172,022,351	$ 220,701,701	$ 5,813		$ (48,685,163)
Ending balance, shares at Jun. 30, 2018		246,800	5,813,555

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Nature of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Nature of Business and Summary of Significant Accounting Policies[Abstract]
Nature of Business and Summary of Significant Accounting Policies	(1) Nature of Business and Summary of Significant Accounting Policies Nature of Business — We are a financial services company committed to disrupting and transforming the life insurance and related industries. We built our business by creating opportunities for consumers to obtain significantly more value for their life insurance policies in a secondary market as compared to the traditional options offered by the insurance industry. We are enhancing and extending our activities in the life insurance industry by bringing step change technology through the commercialization of advanced epigenetic technology. At the same time, we are creating opportunities for investors to receive income and capital appreciation from our investment activities related to the life insurance industry. GWG Holdings, Inc. and all of its subsidiaries are incorporated and organized in Delaware. Unless the context otherwise requires or we specifically so indicate, all references in these footnotes to “we,” “us,” “our,” “our Company,” “GWG,” or the “Company” refer to GWG Holdings, Inc. and its subsidiaries collectively and on a consolidated basis. References to the full names of particular entities, such as “GWG Holdings, Inc.” or “GWG Holdings,” are meant to refer only to the particular entity referenced. On August 25, 2016, GWG Holdings formed a wholly owned subsidiary, currently named Life Epigenetics Inc. (“Life Epigenetics”), to commercialize advanced epigenetic technology for the life insurance industry related to its exclusive license for “DNA Methylation Based Predictor of Mortality” technology. Use of Estimates — The preparation of our condensed consolidated financial statements in conformity with the Generally Accepted Accounting Principles in the United States of America (GAAP) requires management to make significant estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenue during the reporting period. We regularly evaluate estimates and assumptions, which are based on current facts, historical experience, management’s judgment, and various other factors that we believe to be reasonable under the circumstances. Our actual results may differ materially and adversely from our estimates. The most significant estimates with regard to these condensed consolidated financial statements relate to (1) the determination of the assumptions used in estimating the fair value of our investments in life insurance policies and (2) the value of our deferred tax assets and liabilities. Cash and Cash Equivalents — We consider cash in demand deposit accounts and temporary investments purchased with an original maturity of three months or less to be cash equivalents. We maintain our cash and cash equivalents with highly rated financial institutions. The balances in our bank accounts may exceed Federal Deposit Insurance Corporation limits. We periodically evaluate the risk of exceeding insured levels and may transfer funds as we deem appropriate. Life Insurance Policies — Accounting Standards Codification 325-30, Investments in Insurance Contracts permits a reporting entity to account for its investments in life insurance policies using either the investment method or the fair value method. We elected to use the fair value method to account for our life insurance policies. We initially record our purchase of life insurance policies at the transaction price, which is the amount paid for the policy, inclusive of all external fees and costs associated with the acquisition. At each subsequent reporting period, we re-measure the investment at fair value in its entirety and recognize the change in fair value as unrealized gain or loss in the current period, net of premiums paid, within gain on life insurance policies, net in our condensed consolidated statements of operations. In a case where our acquisition of a policy is not complete as of a reporting date, but we have nonetheless advanced direct costs and deposits for the acquisition, those costs and deposits are recorded as other assets on our condensed consolidated balance sheets until the acquisition is complete and we have secured title to the policy. On both June 30, 2018 and December 31, 2017, a total of $0 of our other assets comprised direct costs and deposits that we had advanced for life insurance policy acquisitions. We also recognize realized gain (or loss) from a life insurance policy upon one of the two following events: (1) our receipt of notice or verified mortality of the insured; or (2) our sale of the policy (upon filing of change-of-ownership forms and receipt of payment). In the case of mortality, the gain (or loss) we recognize is the difference between the policy benefits and the carrying value of the policy once we determine that collection of the policy benefits is realizable and reasonably assured. In the case of a policy sale, the gain (or loss) we recognize is the difference between the sale price and the carrying value of the policy on the date we receive sale proceeds. Other Assets — Life Epigenetics is engaged in the development of intellectual property related to its exclusive license for the “DNA Methylation Based Predictor of Mortality” technology for the life insurance industry. The cost of entering into this license agreement is included in other assets on our condensed consolidated balance sheets. To maintain the Company’s life insurance provider licenses in certain states, we are required to keep cash security deposits with the states’ licensing authorities. Security deposits included in other assets were $575,000 at both June 30, 2018 and December 31, 2017. Stock-Based Compensation — We measure and recognize compensation expense for all stock-based payments at fair value on the grant date over the requisite service period. We use the Black-Scholes option pricing model to determine the weighted-average fair value of stock options. For restricted stock grants, fair value is determined as of the closing price of our common stock on the date of grant. Stock-based compensation expense is recorded in general and administrative expenses based on the classification of the employee or vendor. The determination of fair value of stock-based payment awards on the date of grant is affected by our stock price and a number of subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards and the expected duration of the awards. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at grant date. Volatility is based on the standard deviation of the average continuously compounded rate of return of five selected comparable companies. We have not paid common stock dividends. Deferred Financing and Issuance Costs — Loans advanced to us under our senior credit facility with LNV Corporation, as described in Note 6, are reported net of financing costs, including issuance costs, sales commissions and other direct expenses, which are amortized using the straight-line method over the term of the facility. We had no loans advanced to us under our senior credit facility with Autobahn Funding Company during the year ended December 31, 2017 and this credit facility has since been terminated, as described in Note 5. The L Bonds, as described in Note 8, are reported net of financing costs, which are amortized using the interest method over the term of those borrowings. The Series I Secured Notes, as described in Note 7 have been redeemed, was reported net of financing costs, all of which were fully amortized using the interest method as of December 31, 2017. The Series A Convertible Preferred Stock (“Series A”), as described in Note 9, was reported net of financing costs (including the fair value of warrants issued), all of which were fully amortized using the interest method as of December 31, 2017. All shares of Series A have been redeemed and the obligations thereunder satisfied. Selling and issuance costs of Redeemable Preferred Stock (“RPS”) and Series 2 Redeemable Preferred Stock (“RPS 2”), described in Notes 10 and 11, are netted against additional paid-in-capital, until depleted, and then against the outstanding balance of the preferred stock. Earnings (loss) per Share — Basic earnings (loss) per share attributable to common shareholders are calculated using the weighted-average number of shares outstanding during the reported period. Diluted earnings (loss) per share are calculated based on the potential dilutive impact of our Series A, RPS, RPS 2, warrants and stock options. Due to our net loss attributable to common shareholders for the three and six months ended June 30, 2018, there are no dilutive securities. Reclassification — Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Recently Issued Accounting Pronouncements — On February 25, 2016, the FASB issued Accounting Standards Update 2016-02 Leases (“ASU 2016-02”). The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 provides more transparency and comparability in the financial statements of lessees by recognizing all leases with a term greater than twelve months on the balance sheet. Lessees will also be required to disclose key information about their leases. Early adoption is permitted. We are currently evaluating the impact of the adoption of this pronouncement and have not yet adopted ASU 2016-02 as of June 30, 2018. In March 2016, the FASB issued Accounting Standards Update 2016-09 (“ASU 2016-09”) to simplify the accounting for stock compensation related to the following items: income tax accounting, award classification, estimation of forfeitures, and cash flow presentation. The new guidance is effective for fiscal years beginning after December 15, 2016. We adopted ASU 2016-09 effective January 1, 2017. The impact of the adoption was not material to the financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18 (“ASU 2016-18”), which amends ASC 230 Statement of Cash Flows to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance, to be applied retrospectively when adopted, requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. We adopted ASU 2016-18 as of March 31, 2018. The impact of the adoption was not material to the financial statements.

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Restrictions on Cash	6 Months Ended
Restrictions on Cash	Jun. 30, 2018
Restrictions on Cash [Abstract]
Restrictions on Cash	(2) Restrictions on Cash Under the terms of our senior credit facility with LNV Corporation (discussed in Note 6), we are required to maintain collection and payment accounts that are used to collect policy benefits from pledged policies, pay annual policy premiums, interest and other charges under the facility, and distribute funds to pay down the facility. The agents for the lender authorize the disbursements from these accounts. At June 30, 2018 and December 31, 2017, there was a balance of $1,937,000 and $19,967,000, respectively, in these collection and payment accounts. To fund the Company’s acquisition of life insurance policies, we are required to maintain escrow accounts. Distributions from these accounts are made according to life insurance policy purchase contracts. At June 30, 2018 and December 31, 2017, there was a balance of $4,714,000 and $8,383,000, respectively, in the Company’s escrow accounts.

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Investment in Life Insurance Policies

6 Months Ended

Jun. 30, 2018

Investment in Life Insurance Policies [Abstract]

Investment in Life Insurance Policies

(3) Investment in Life Insurance Policies

Our investments in life insurance policies are valued based on unobservable inputs that are significant to their overall fair value. Changes in the fair value of these policies, net of premiums paid, are recorded in gain on life insurance policies, net in our condensed consolidated statements of operations. Fair value is determined on a discounted cash flow basis that incorporates life expectancy assumptions generally derived from reports obtained from widely accepted life expectancy providers (other than insured lives covered under small face amount policies – those with $1 million in face value benefits or less), assumptions relating to cost-of-insurance (premium) rates and other assumptions. The discount rate we apply incorporates current information about discount rates applied by other public reporting companies owning portfolios of life insurance policies, the discount rates observed in the life insurance secondary market, market interest rates, the estimated credit exposure to the insurance companies that issued the life insurance policies and management’s estimate of the operational risk premium a purchaser would require to receive the future cash flows derived from our portfolio as a whole. Management has discretion regarding the combination of these and other factors when determining the discount rate. As a result of management’s analysis, a discount rate of 10.45% was applied to our portfolio as of both June 30, 2018 and December 31, 2017.

Portfolio Information

Our portfolio of life insurance policies, owned by our subsidiaries as of June 30, 2018, is summarized below:

Life Insurance Portfolio Summary

Total portfolio face value of policy benefits	$	1,849,079,000
Average face value per policy	$	1,831,000
Average face value per insured life	$	2,052,000
Average age of insured (yrs.)*		81.9
Average life expectancy estimate (yrs.)*		6.8
Total number of policies		1,010
Number of unique lives		901
Demographics		76% Males; 24% Females
Number of smokers		41
Largest policy as % of total portfolio face value		0.72	%
Average policy as % of total portfolio		0.10	%
Average annual premium as % of face value		3.11	%

*	Averages presented in the table are weighted averages.

A summary of our policies, organized according to their estimated life expectancy dates as of the reporting date, is as follows:

	As of June 30, 2018						As of December 31, 2017
Years Ending December 31,	Number of Policies		Estimated Fair Value		Face Value		Number of Policies		Estimated Fair Value		Face Value
2018		4	$	3,328,000	$	3,375,000		8	$	4,398,000	$	4,689,000
2019		35		44,532,000		55,472,000		48		63,356,000		83,720,000
2020		80		77,686,000		115,736,000		87		79,342,000		127,373,000
2021		97		104,685,000		176,820,000		98		96,154,000		170,695,000
2022		119		100,279,000		190,208,000		90		85,877,000		181,120,000
2023		102		84,874,000		205,340,000		93		69,467,000		175,458,000
2024		111		83,602,000		232,258,000		100		77,638,000		228,188,000
Thereafter		462		227,077,000		869,870,000		374		174,295,000		704,905,000
Totals		1,010	$	726,063,000	$	1,849,079,000		898	$	650,527,000	$	1,676,148,000

We recognized life insurance benefits of $27,623,000 and $10,935,000 during the three months ended June 30, 2018 and 2017, respectively. The forgoing amounts pertained to policies with carrying values of $6,148,000 and $3,015,000, respectively, for which we recorded realized gains of $21,475,000 and $7,920,000, respectively. We recognized life insurance benefits of $42,127,000 and $29,910,000 during the six months ended June 30, 2018 and 2017, respectively. The forgoing amounts pertained to policies with carrying values of $11,232,000 and $5,384,000, for which we recorded realized gains of $30,895,000 and $24,526,000, respectively.

Reconciliation of gain on life insurance policies:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Change in estimated probabilistic cash flows ⁽¹⁾	$	17,409,000		$	13,431,000		$	36,414,000		$	27,465,000
Unrealized gain on acquisitions ⁽²⁾		5,795,000			8,044,000			12,769,000			18,646,000
Premiums and other annual fees		(12,708,000	)		(11,859,000	)		(24,906,000	)		(22,949,000	)
Change in discount rates ⁽³⁾		-			4,143,000			-			4,143,000
Change in life expectancy evaluation ⁽⁴⁾		(95,000	)		(6,662,000	)		(4,963,000	)		(8,604,000	)
Face value of matured policies		27,623,000			10,935,000			42,127,000			29,910,000
Fair value of matured policies		(14,684,000	)		(6,736,000	)		(24,233,000	)		(17,915,000	)
Gain on life insurance policies, net	$	23,340,000		$	11,296,000		$	37,208,000		$	30,696,000

(1)	Change in fair value of expected future cash flows relating to our investment in life insurance policies that are not specifically attributable to changes in life expectancy, discount rate or policy maturity events.

(2)	Gain resulting from fair value in excess of transaction price for policies acquired during the reporting period.

(3)	The discount rate of 10.45% as of June 30, 2018 remained unchanged from both the prior quarter and year end dates. The discount rate of 10.81% as of June 30, 2017 reflected a decrease from the 10.96% rate used at both the preceding quarter and year end dates.

(4)	The change in fair value due to updating life expectancy estimates on certain life insurance policies in our portfolio.

We currently estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies in force for the next five years, assuming no mortalities, are as follows:

Years Ending December 31,	Premiums		Servicing		Premiums and Servicing Fees
Six months ending December 31, 2018	$	27,358,000	$	677,000	$	28,035,000
2019		63,323,000		1,355,000		64,678,000
2020		73,758,000		1,355,000		75,113,000
2021		84,700,000		1,355,000		86,055,000
2022		95,964,000		1,355,000		97,319,000
2023		107,289,000		1,355,000		108,644,000
	$	452,392,000	$	7,452,000	$	459,844,000

Management anticipates funding the majority of the premium payments estimated above from cash flows realized from life insurance policy benefits, and to the extent necessary, with additional borrowing capacity, created as the premiums and servicing costs of pledged life insurance policies become due, under the amended and restated senior credit facility with LNV Corporation as described in Note 6, and the net proceeds from our offering of L Bonds as described in Note 8. Management anticipates funding premiums and servicing costs of non-pledged life insurance policies with cash flows realized from life insurance policy benefits from our portfolio of life insurance policies and net proceeds from our offering of L Bonds. The proceeds of these capital sources may also be used for the purchase, policy premiums and servicing costs of additional life insurance policies as well as for other working capital and financing expenditures including paying principal, interest and dividends.

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Fair Value Definition and Hierarchy

6 Months Ended

Jun. 30, 2018

Fair Value Definition and Hierarchy [Abstract]

Fair Value Definition and Hierarchy

(4) Fair Value Definition and Hierarchy

Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is affected by a number of factors, including the type of investment, the characteristics specific to the investment and the state of the marketplace, including the existence and transparency of transactions between market participants. Assets and liabilities with readily available and actively quoted prices, or for which fair value can be measured from actively quoted prices in an orderly market, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

ASC 820 maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the use of observable inputs whenever available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect assumptions about how market participants price an asset or liability based on the best available information. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

The hierarchy is broken down into three levels based on the observability of inputs as follows:

Level 1 —

Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2 —

Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 —

Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The availability of observable inputs can vary by types of assets and liabilities and is affected by a wide variety of factors, including, for example, whether an instrument is established in the marketplace, the liquidity of markets and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for assets and liabilities categorized in Level 3.

Level 3 Valuation Process

The estimated fair value of our portfolio of life insurance policies is determined on a quarterly basis by management taking into consideration a number of factors, including changes in discount rate assumptions, estimated premium payments and life expectancy estimate assumptions, as well as any changes in economic and other relevant conditions. The discount rate incorporates current information about discount rates applied by other reporting companies owning portfolios of life insurance policies, the discount rates observed in the life insurance secondary market, market interest rates, the estimated credit exposure to the insurance company that issued the life insurance policy and management’s estimate of the operational risk premium a purchaser would require to receive the future cash flows derived from our portfolio as a whole. Management has discretion regarding the combination of these and other factors when determining the discount rate.

These inputs are then used to estimate the discounted cash flows from the portfolio using the Model Actuarial Pricing System (“MAPS”) probabilistic and stochastic portfolio pricing model, which estimates the expected cash flows using various mortality probabilities and scenarios. The valuation process includes a review by senior management as of each quarterly valuation date. We also engage MAPS to independently test the accuracy of the valuations using the inputs we provide on a quarterly basis. A copy of a letter documenting the MAPS calculation is filed as Exhibit 99.1 to this report.

The following table reconciles the beginning and ending fair value of our Level 3 investments in our portfolio of life insurance policies for the periods ended June 30, as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Beginning balance	$	687,389,000		$	545,397,000		$	650,527,000		$	511,192,000
Purchases		30,249,000			19,432,000			55,549,000			42,122,000
Maturities (initial cost basis)		(6,148,000	)		(3,015,000	)		(11,232,000	)		(5,384,000	)
Net change in fair value		14,573,000			15,236,000			31,219,000			29,120,000
Ending balance	$	726,063,000		$	577,050,000		$	726,063,000		$	577,050,000

For life insurance policies with face amounts greater than $1 million and that are not pledged under any senior credit facility (approximately 18.4% of our portfolio by face amount of policy benefits) we attempt to update the life expectancy estimates on a continuous rotating three year cycle. For life insurance policies that are pledged under the LNV senior credit facility (approximately 73.1% of our portfolio by face amount of policy benefits) we are presently required to update the life expectancy estimates every two years beginning from the date of the amended facility. For the remaining small face insurance policies (i.e., a policy with $1 million in face value benefits or less) we may employ a range of methods and timeframes to update life expectancy estimates.

The following table summarizes the inputs utilized in estimating the fair value of our portfolio of life insurance policies:

	As of June 30, 2018			As of December 31, 2017
Weighted-average age of insured, years *		81.9			81.7
Weighted-average life expectancy, months *		82.0			82.4
Average face amount per policy	$	1,831,000		$	1,867,000
Discount rate		10.45	%		10.45	%

(*)

Weighted-average by face amount of policy benefits

Life expectancy estimates and market discount rates for a portfolio of life insurance policies are inherently uncertain and the effect of changes in estimates may be significant. For example, if the life expectancy estimates were increased or decreased by four and eight months on each outstanding policy, and the discount rates were increased or decreased by 1% and 2%, with all other variables held constant, the fair value of our investment in life insurance policies would increase or decrease as summarized below:

Change in Fair Value of the Investment in Life Insurance Policies

	Change in Life Expectancy Estimates
	minus 8 months		minus 4 months		plus 4 months			plus 8 months

June 30, 2018	$	96,387,000	$	47,837,000	$	(47,457,000	)	$	(94,194,000	)
December 31, 2017	$	86,391,000	$	42,886,000	$	(42,481,000	)	$	(84,238,000	)

	Change in Discount Rate
	minus 2%		minus 1%		plus 1%			plus 2%

June 30, 2018	$	75,047,000	$	35,898,000	$	(33,001,000	)	$	(63,412,000	)
December 31, 2017	$	68,117,000	$	32,587,000	$	(29,964,000	)	$	(57,583,000	)

Other Fair Value Considerations

The carrying value of receivables, prepaid expenses, accounts payable and accrued expenses approximate fair value due to their short-term maturities and low credit risk. Using the income-based valuation approach, the estimated fair value of our L Bonds, having an aggregate face value of $534,302,000 as of June 30, 2018, is approximately $541,680,000 based on a weighted-average market interest rate of 6.78%. The carrying value of the senior credit facility with LNV Corporation reflects interest charged at 12-month LIBOR plus an applicable margin. The margin represents our credit risk, and the strength of the portfolio of life insurance policies collateralizing the debt. The overall rate reflects market, and the carrying value of the facility approximates fair value.

GWG MCA participates in the merchant cash advance industry by directly advancing sums to merchants and lending money, on a secured basis, to companies that advance sums to merchants. Each quarter, we review the carrying value of these cash advances, and determine if an impairment reserve is necessary. At June 30, 2018 one of our secured cash advances was impaired. Specifically, the secured loan to Nulook Capital LLC had an outstanding balance of $1,914,000 and a loan loss reserve of $1,908,000 at June 30, 2018. We deem fair value to be the estimated collectible value on each loan or advance made from GWG MCA. Secured MCA advances, net of loan loss reserve, of $1,345,000 and $1,662,000 are included within other assets on our condensed consolidated balance sheets as of June 30, 2018 and December 31, 2017, respectively. Where we estimate the collectible amount to be less than the outstanding balance, we record a reserve for the difference. Provision for MCA advances are recorded within other expenses on the statement of operations (see Note 15).

The following table summarizes outstanding common stock warrants (discussed in Note 13) as of June 30, 2018:

Month issued	Warrants issued		Fair value per share		Risk free rate			Volatility			Term
September 2014		16,000	$	1.26		1.85	%		17.03	%	5 years
		16,000

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

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Credit Facility - Autobahn Funding Company LLC	6 Months Ended
Credit Facility - Autobahn Funding Company LLC	Jun. 30, 2018
Credit Facility - Autobahn Funding Company LLC [Abstract]
Credit Facility - Autobahn Funding Company LLC	(5) Credit Facility — Autobahn Funding Company LLC On September 12, 2017, we terminated our $105 million senior credit facility with Autobahn Funding Company LLC, the Credit and Security Agreement governing the facility as well as the related pledge agreement, pursuant to which our obligations under the facility were secured. We paid off in full all obligations under the facility on September 14, 2016, and since that date, we have had no amounts outstanding under the facility. The Credit and Security Agreement contained certain financial and non-financial covenants, and we were in compliance with these covenants during the year ended December 31, 2017 until the date of termination.

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Credit Facility - LNV Corporation	6 Months Ended
Credit Facility - LNV Corporation	Jun. 30, 2018
Credit Facility - LNV Corporation [Abstract]
Credit Facility - LNV Corporation	(6) Credit Facility — LNV Corporation On September 27, 2017, we entered into an amended and restated senior credit facility with LNV Corporation as lender through our subsidiary GWG DLP Funding IV, LLC (“DLP IV”). The Amended and Restated Loan Agreement governing the facility makes available a total of up to $300,000,000 in credit with a maturity date of September 27, 2029. Additional advances are available under the Amended and Restated Loan Agreement at the LIBOR rate as defined in the Amended and Restated Loan Agreement. Advances are available as the result of additional borrowing base capacity, created as the premiums and servicing costs of pledged life insurance policies become due. Interest will accrue on amounts borrowed under the Amended and Restated Loan Agreement at an annual interest rate, determined as of each date of borrowing or quarterly if there is no borrowing, equal to (A) the greater of 12-month LIBOR or the federal funds rate (as defined in the agreement) plus one-half of one percent per annum, plus (B) 7.50% per annum. The effective rate at June 30, 2018 was 10.19%. Interest payments are made on a quarterly basis. As of June 30, 2018, approximately 73.1% of the total face value of our portfolio is pledged to LNV Corporation. The amount outstanding under this facility was $190,389,000 and $222,525,000 at June 30, 2018 and December 31, 2017, respectively. Obligations under the facility are secured by a security interest in DLP IV’s assets, for the benefit of the lenders under the Amended and Restated Loan Agreement, through an arrangement under which Wells Fargo serves as securities intermediary. The life insurance policies owned by DLP IV do not serve as direct collateral for the obligations of GWG Holdings under the L Bonds. The difference between the amount outstanding and the carrying amount on our condensed consolidated balance sheets is due to netting of unamortized debt issuance costs. The Amended and Restated Loan Agreement has certain financial and nonfinancial covenants, and we were in compliance with these covenants at June 30, 2018 and December 31, 2017.

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Series I Secured Notes	6 Months Ended
Series I Secured Notes	Jun. 30, 2018
Series I Secured Notes [Abstract]
Series I Secured Notes	(7) Series I Secured Notes Series I Secured Notes were legal obligations of GWG Life and were privately offered and sold from August 2009 through June 2011. On September 8, 2017, we redeemed all outstanding Series I Secured Notes for an aggregate of $6,815,000.

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L Bonds

6 Months Ended

Jun. 30, 2018

L Bonds [Abstract]

L Bonds

(8) L Bonds

Our L Bonds are legal obligations of GWG Holdings. Obligations under the L Bonds are secured by the assets of GWG Holdings and by GWG Life, as a guarantor, and are subordinate to the obligations under our senior credit facility (see Note 6). We began publicly offering and selling L Bonds in January 2012 under the name “Renewable Secured Debentures”. These debt securities were re-named “L Bonds” in January 2015. L Bonds are publicly offered and sold on a continuous basis under a registration statement permitting us to sell up to $1.0 billion in principal amount of L Bonds through January 2018. On December 1, 2017, an additional public offering was declared effective permitting us to sell up to $1.0 billion in principal amount of L Bonds on a continuous basis. The new offering is a follow-on to the previous L Bond offering and contains the same terms and features. We are party to an indenture governing the L Bonds dated October 19, 2011, as amended (“Indenture”), under which GWG Holdings is obligor, GWG Life is guarantor, and Bank of Utah serves as indenture trustee. On March 27, 2018 GWG L Bond holders approved Amendment No.1 to the Amended and Restated Indenture with Bank of Utah. This amendment expands the definition of Total Coverage to include, without duplication, the value of all of our other assets as reflected on our most recently available balance sheet prepared in accordance with GAAP. The Indenture contains certain financial and non-financial covenants, and we were in compliance with these covenants at June 30, 2018 and December 31, 2017.

The bonds have renewal features under which we may elect to permit their renewal, subject to the right of bondholders to elect to receive payment at maturity. Interest is payable monthly or annually depending on the election of the investor.

At June 30, 2018 and December 31, 2017, the weighted-average interest rate of our L Bonds was 7.15% and 7.29%, respectively. The principal amount of L Bonds outstanding was $534,302,000 and $461,427,000 at June 30, 2018 and December 31, 2017, respectively. The difference between the amount of outstanding L Bonds and the carrying amount on our condensed consolidated balance sheets is due to netting of unamortized deferred issuance costs, cash receipts for new issuances and payments of redemptions in process. Amortization of deferred issuance costs was $2,139,000 and $927,000 for the three months ended June 30, 2018 and 2017, respectively, and $4,138,000 and $2,856,000 for the six months ended June 30, 2018 and 2017, respectively. Future expected amortization of deferred financing costs as of June 30, 2018 is $18,060,000 in total over the next seven years.

Future contractual maturities of L Bonds, and future amortization of their deferred financing costs, at June 30, 2018 are as follows:

Years Ending December 31,	Contractual Maturities		Unamortized Deferred Financing Costs
Six months ending December 31, 2018	$	60,612,000	$	312,000
2019		150,617,000		3,024,000
2020		114,594,000		4,050,000
2021		65,293,000		2,860,000
2022		39,713,000		1,888,000
2023		36,818,000		1,984,000
Thereafter		66,655,000		3,942,000
	$	534,302,000	$	18,060,000

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Series A Convertible Preferred Stock	6 Months Ended
Series A Convertible Preferred Stock	Jun. 30, 2018
Series A Convertible Preferred Stock [Abstract]
Series A Convertible Preferred Stock	(9) Series A Convertible Preferred Stock From July 2011 through September 2012, we privately offered shares of Series A of GWG Holdings at $7.50 per share. In the offering, we sold an aggregate of 3,278,000 shares for gross consideration of $24,582,000. Holders of Series A were entitled to cumulative dividends at the rate of 10% per annum, paid quarterly. The Series A Convertible Preferred Stock were only redeemable at our option. Purchasers of Series A in our offering received warrants to purchase an aggregate of 416,000 shares of our common stock at an exercise price of $12.50 per share. As of June 30, 2018 and December 31, 2017, all of these warrants have expired and none of them had been exercised. On October 9, 2017 all shares of Series A were redeemed with a redemption payment equal to the sum of: (i) $8.25 per Series A share and (ii) all accrued but unpaid dividends.

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Redeemable Preferred Stock	6 Months Ended
Redeemable Preferred Stock	Jun. 30, 2018
Redeemable Preferred Stock [Abstract]
Redeemable Preferred Stock	(10) Redeemable Preferred Stock On November 30, 2015, our public offering of up to 100,000 shares of RPS at $1,000 per share was declared effective. Holders of RPS are entitled to cumulative dividends at the rate of 7% per annum, paid monthly. Dividends on the RPS are recorded as a reduction to additional paid-in capital, if any, then to the outstanding balance of the preferred stock if additional paid-in-capital has been exhausted. Under certain circumstances described in the Certificate of Designation for the RPS, additional shares of RPS may be issued in lieu of cash dividends. The RPS ranks senior to our common stock and pari passu with our RPS 2 and entitles its holders to a liquidation preference equal to the stated value per share (i.e., $1,000) plus accrued but unpaid dividends. Holders of RPS may presently convert their RPS into our common stock at a conversion price equal to the volume-weighted average price of our common stock for the 20 trading days immediately prior to the date of conversion, subject to a minimum conversion price of $15.00 and in an aggregate amount limited to 15% of the stated value of RPS originally purchased by such holder from us and still held by such holder. Holders of RPS may request that we redeem their RPS at a price equal to their stated value plus accrued but unpaid dividends, less an applicable redemption fee, if any. Nevertheless, the Certificate of Designation for RPS permits us in our sole discretion to grant or decline redemption requests. Subject to certain restrictions and conditions, we may also redeem shares of RPS without a redemption fee upon a holder’s death, total disability or bankruptcy. In addition, after one year from the date of original issuance, we may, at our option, call and redeem shares of RPS at a price equal to their liquidation preference. In March 2017, we closed the RPS offering to additional investors having sold 99,127 shares of RPS for an aggregate gross consideration of $99,127,000 and incurred approximately $7,019,000 of related selling costs. At the time of its issuance, we determined that the RPS contained two embedded features: (1) optional redemption by the holder and (2) optional conversion by the holder. We determined that each of the embedded features met the definition of a derivative and that the RPS should be considered an equity host for the purposes of assessing the embedded derivatives for potential bifurcation. Based on our assessment under Accounting Standards Codification 470 “Debt” (“ASC 470”) we do not believe bifurcation of either the holder’s redemption or conversion feature is appropriate.

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Series 2 Redeemable Preferred Stock	6 Months Ended
Series 2 Redeemable Preferred Stock	Jun. 30, 2018
Series 2 Redeemable Preferred Stock [Abstract]
Series 2 Redeemable Preferred Stock	(11) Series 2 Redeemable Preferred Stock On February 14, 2017, our public offering of up to 150,000 shares of RPS 2 at $1,000 per share was declared effective. Holders of RPS 2 are entitled to cumulative dividends at the rate of 7% per annum, paid monthly. Dividends on the RPS 2 are recorded as a reduction to additional paid-in capital, if any, then to the outstanding balance of the preferred stock if additional paid-in capital has been exhausted. Under certain circumstances described in the Certificate of Designation for the RPS 2, additional shares of RPS 2 may be issued in lieu of cash dividends. The RPS 2 ranks senior to our common stock and pari passu with our RPS and entitles its holders to a liquidation preference equal to the stated value per share (i.e., $1,000) plus accrued but unpaid dividends. Holders of RPS 2 may, less an applicable conversion discount, if any, convert their RPS 2 into our common stock at a conversion price equal to the volume-weighted average price of our common stock for the 20 trading days immediately prior to the date of conversion, subject to a minimum conversion price of $12.75 and in an aggregate amount limited to 10% of the stated value of RPS 2 originally purchased by such holder from us and still held by such holder. Holders of RPS 2 may request that we redeem their RPS 2 shares at a price equal to their liquidation preference, less an applicable redemption fee, if any. Nevertheless, the Certificate of Designation for RPS 2 permits us in our sole discretion to grant or decline requests for redemption. Subject to certain restrictions and conditions, we may also redeem shares of RPS 2 without a redemption fee upon a holder’s death, total disability or bankruptcy. In addition, we may, at our option, call and redeem shares of RPS 2 at a price equal to their liquidation preference (subject to a minimum redemption price, in the event of redemptions occurring less than one year after issuance, of 107% of the stated value of the shares being redeemed). In April 2018, we closed the RPS 2 offering to additional investors having sold 149,979 shares of RPS 2 for an aggregate gross consideration of $149,979,000 and incurred approximately $10,284,000 of related selling costs. At the time of its issuance, we determined that the RPS 2 contained two embedded features: (1) optional redemption by the holder; and (2) optional conversion by the holder. We determined that each of the embedded features met the definition of a derivative and that the RPS 2 should be considered an equity host for the purposes of assessing the embedded derivatives for potential bifurcation. Based on our assessment under ASC 470 we do not believe bifurcation of either the holder’s redemption or conversion feature is appropriate.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Taxes [Abstract]

Income Taxes

(12) Income Taxes

We had a current income tax liability of $0 as of both June 30, 2018 and December 31, 2017. The components of our income tax expense (benefit) and the reconciliation at the statutory federal tax rate to our actual income tax expense (benefit) for the three and six months ended June 30, 2018 and 2017 consisted of the following:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017

Statutory federal income tax (benefit)	$	(12,000	)	$	(3,200,000	)	$	(1,939,000	)	$	(3,215,000	)
State income taxes (benefit), net of federal benefit		10,000			(607,000	)		(692,000	)		(609,000	)
Change in valuation allowance		(36,000	)		-			2,568,000			-
Other permanent differences		38,000			90,000			63,000			106,000
Total income tax expense (benefit)	$	-		$	(3,717,000	)	$	-		$	(3,718,000	)

The tax effects of temporary differences that give rise to deferred income taxes were as follows:

	As of June 30, 2018			As of December 31, 2017
Deferred tax assets:
Note receivable from related party	$	1,437,000		$	1,437,000
Net operating loss carryforwards		9,787,000			9,995,000
Other assets		1,487,000			1,724,000
Subtotal		12,711,000			13,156,000
Valuation allowance		(8,954,000	)		(6,386,000	)
Deferred tax assets		3,757,000			6,770,000

Deferred tax liabilities:
Investment in life insurance policies		(3,651,000	)		(6,630,000	)
Other liabilities		(106,000	)		(140,000	)
Net deferred tax asset(liability)	$	-		$	-

At June 30, 2018 and December 31, 2017, we had federal net operating loss (“NOL”) carryforwards of $34,052,000 and $34,775,000, respectively. The NOL carryforwards will begin to expire in 2031. Future utilization of NOL carryforwards is subject to limitations under Section 382 of the Internal Revenue Code. This section generally relates to a more than 50 percent change in ownership over a three-year period. We currently do not believe that any prior issuance of common stock has resulted in an ownership change under Section 382 through June 30, 2018.

We provide for a valuation allowance when it is not considered “more likely than not” that our deferred tax assets will be realized. As of June 30, 2018, based on all available evidence, we have provided a valuation allowance against our total net deferred tax asset of $8,954,000 due to uncertainty as to the realization of our deferred tax assets during the carryforward periods.

On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act (“Tax Reform Bill”). The Tax Reform Bill changed existing United States tax law, including a reduction of the U.S. corporate income tax rate. The Company re-measured deferred taxes as of the date of enactment, reflecting those changes within deferred tax assets as of December 31, 2017.

ASC 740 requires the reporting of certain tax positions that do not meet a threshold of “more-likely-than-not” to be recorded as uncertain tax benefits. It is management’s responsibility to determine whether it is “more-likely-than-not” that a tax position will be sustained upon examination, including resolution of any related appeals or litigation, based upon the technical merits of the position. Management has reviewed all income tax positions taken or expected to be taken for all open years and has determined that the income tax positions are appropriately stated and supported. We do not anticipate that the total unrecognized tax benefits will significantly change prior to December 31, 2018.

Under our accounting policies, interest and penalties on unrecognized tax benefits, as well as interest received from favorable tax settlements are recognized as components of income tax expense. At June 30, 2018 and December 31, 2017, we recorded no accrued interest or penalties related to uncertain tax positions.

Our income tax returns for tax years ended December 31, 2014, 2015, 2016 and 2017, when filed, remain open to examination by the Internal Revenue Service and various state taxing jurisdictions. Our income tax return for tax year ended December 31, 2013 also remains open to examination by various state taxing jurisdictions.

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Common Stock	6 Months Ended
Common Stock	Jun. 30, 2018
Common Stock [Abstract]
Common Stock	(13) Common Stock In September 2014, we consummated an initial public offering of our common stock resulting in the sale of 800,000 shares of common stock at $12.50 per share, and net proceeds of approximately $8.6 million after the payment of underwriting commissions, discounts and expense reimbursements. In connection with this offering, we listed our common stock on the Nasdaq Capital Market under the ticker symbol “GWGH.” In conjunction with the initial public offering our Company issued warrants to purchase 16,000 shares of common stock at an exercise price of $15.63 per share. As of June 30, 2018, none of these warrants had been exercised. The remaining life of these warrants at June 30, 2018 was 1.3 years.

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Stock Incentive Plan

6 Months Ended

Jun. 30, 2018

Stock Incentive Plan [Abstract]

Stock Incentive Plan

(14) Stock Incentive Plan

We adopted our 2013 Stock Incentive Plan in March 2013, as amended on June 1, 2015 and May 5, 2017. The Compensation Committee of our Board of Directors is responsible for the administration of the plan. Participants under the plan may be granted incentive stock options and non-statutory stock options; stock appreciation rights; stock awards; restricted stock; restricted stock units; and performance shares. Eligible participants include officers and employees of GWG Holdings and its subsidiaries, members of our Board of Directors, and consultants. Awards generally expire 10 years from the date of grant. As of June 30, 2018, 6,000,000 common stock options are authorized under the plan, of which 3,735,564 remain available for issuance.

Stock Options

As of June 30, 2018, we had outstanding stock options for 1,679,000 shares of common stock to employees, officers, and directors under the plan. Options for 1,061,000 shares have vested, and the remaining options are scheduled to vest over three years. The options were issued with an exercise price between $6.35 and $10.38 for those beneficially owning more than 10% of our common stock, and between $4.83 and $11.00 for all others, which is equal to the market price of the shares on the date of grant. The expected annualized volatility used in the Black-Scholes model valuation of options issued during the three months ended June 30, 2018 was 20.7%. The annual volatility rate is based on the standard deviation of the average continuously compounded daily changes of stock price of five selected comparable companies. As of June 30, 2018, stock options for 723,000 shares had been forfeited and stock options for 178,000 shares had been exercised.

Outstanding stock options:

	Vested			Un-vested			Total
Balance as of December 31, 2016		738,065			844,334			1,582,399
Granted during the year		61,099			367,500			428,599
Vested during the year		327,061			(327,061	)		-
Exercised during the year		(126,498	)		-			(126,498	)
Forfeited during the year		(142,535	)		(105,017	)		(247,552	)
Balance as of December 31, 2017		857,192			779,756			1,636,948
Granted year-to-date		4,850			99,200			104,050
Vested year-to-date		235,424			(235,424	)		-
Exercised year-to-date		(23,834	)		-			(23,834	)
Forfeited year-to-date		(12,582	)		(25,501	)		(38,083	)
Balance as of June 30, 2018		1,061,050			618,031			1,679,081

As of June 30, 2018, unrecognized compensation expense related to un-vested options is $933,000. We expect to recognize this compensation expense over the remaining vesting period ($304,000 in 2018, $426,000 in 2019, $183,000 in 2020, and $20,000 in 2021).

Stock Appreciation Rights (SARs)

As of June 30, 2018, we had outstanding SARs for 407,000 shares of the common stock to employees. The strike price of the SARs was between $7.84 and $10.38, which was equal to the market price of the common stock at the date of issuance. As of June 30, 2018, 215,000 of the SARs were vested. On June 30, 2018, the market price of GWG’s common stock was $7.68.

Outstanding SARs:

	Vested		Un-vested			Total
Balance as of December 31, 2016		106,608		133,127			239,735
Granted during the year		13,001		91,986			104,987
Vested during the year		69,444		(69,444	)		-
Forfeited during the year		-		(1,750	)		(1,750	)
Balance as of December 31, 2017		189,053		153,919			342,972
Granted year-to-date		-		64,050			64,050
Vested year-to-date		25,699		(25,699	)		-
Forfeited year-to-date		-		-			-
Balance as of June 30, 2018		214,752		192,270			407,022

The liability for the SARs as of June 30, 2018 and December 31, 2017 was $483,000 and $551,000, respectively, and was recorded within other accrued expenses on the condensed consolidated balance sheets. Employee compensation and benefits expense for SARs of ($118,000) and $23,000 was recorded for the three months ended June 30, 2018 and 2017, respectively, and ($68,000) and $312,000 was recorded for the six months ended June 30, 2018 and 2017, respectively.

Upon the exercise of SARs, the Company is obligated to make cash payment equal to the positive difference between the fair market value of the Company’s common stock on the date of exercise less the fair market value of the common stock on the date of grant.

The following summarizes information concerning outstanding options and SARs issued under the 2013 Stock Incentive Plan:

	June 30, 2018
	Outstanding		Weighted-Average Exercise Price		Weighted-Average Remaining Life (years)		Fair Value at Grant Date
Vested
Stock Options		1,061,050	$	8.21		5.90	$	1.82
SARs		214,752	$	8.61		5.41	$	1.89
Total Vested		1,275,802	$	8.28		5.81	$	1.83

Unvested
Stock Options		618,031	$	9.22		7.18	$	2.21
SARs		192,270	$	8.93		6.11	$	2.10
Total Unvested		810,301	$	9.16		6.93	$	2.18

	December 31, 2017
	Outstanding		Weighted-Average Exercise Price		Weighted-Average Remaining Life (years)		Fair Value at Grant Date
Vested
Stock Options		857,192	$	8.05		6.17	$	1.76
SARs		189,053	$	8.54		5.86	$	1.90
Total Vested		1,046,245	$	8.14		6.11	$	1.78

Unvested
Stock Options		779,756	$	9.21		7.50	$	2.17
SARs		153,919	$	9.16		6.24	$	2.02
Total Unvested		933,675	$	9.21		7.30	$	2.15

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Other Expenses

6 Months Ended

Jun. 30, 2018

Other Expenses [Abstract]

Other Expenses

(15) Other Expenses

The components of other expenses in our condensed consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Contract Labor	$	305,000	$	87,000	$	605,000	$	181,000
Marketing		509,000		649,000		930,000		1,201,000
Information Technology		366,000		351,000		866,000		682,000
Servicing and Facility Fees		468,000		405,000		862,000		686,000
Travel and Entertainment		230,000		283,000		446,000		518,000
Insurance and Regulatory		352,000		393,000		719,000		718,000
Charitable Contributions		-		89,000		-		420,000
Provision for MCA Advances		94,000		878,000		94,000		878,000
General and Administrative		509,000		626,000		1,051,000		1,257,000
Total Other Expenses	$	2,833,000	$	3,761,000	$	5,573,000	$	6,541,000

XML 36 R22.htm IDEA: XBRL DOCUMENT

Net Loss Attributable to Common Shareholders

6 Months Ended

Jun. 30, 2018

Net Loss Attributable to Common Shareholders [Abstract]

Net Loss Attributable to Common Shareholders

(16) Net Loss Attributable to Common Shareholders

We have outstanding RPS and RPS 2, as described in Notes 10 and 11. RPS and RPS 2 are anti-dilutive to our net loss attributable to common shareholders calculation for both the three and six months ended June 30, 2018 and 2017. Our vested and un-vested stock options are anti-dilutive for both the three and six months ended June 30, 2018 and 2017.

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Commitments

6 Months Ended

Jun. 30, 2018

Commitments/Contingencies [Abstract]

Commitments

(17) Commitments

We are party to an office lease with U.S. Bank National Association as the landlord. On September 1, 2015, we entered into an amendment to our original lease that expanded the leased space to 17,687 square feet and extended the term through October 2025. Under the amended lease we are obligated to pay base rent plus common area maintenance and a share of building operating costs. Rent expenses under this agreement were $110,000 during both three months ended June 30, 2018 and 2017 and $215,000 and $223,000 during the six months ended June 30, 2018 and 2017, respectively.

Minimum lease payments under the amended lease are as follows:

Six months ending December 31, 2018	$	133,000
2019		275,000
2020		284,000
2021		293,000
2022		302,000
2023		311,000
Thereafter		593,000
	$	2,191,000

XML 38 R24.htm IDEA: XBRL DOCUMENT

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2018
Commitments/Contingencies [Abstract]
Contingencies	(18) Contingencies Litigation — In the normal course of business, we are involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on our financial position, results of operations or cash flows.

XML 39 R25.htm IDEA: XBRL DOCUMENT

Guarantee of L Bonds

6 Months Ended

Jun. 30, 2018

Guarantee of L Bonds [Abstract]

Guarantee of L Bonds

(19) Guarantee of L Bonds

We are publicly offering and selling L Bonds under a registration statement declared effective by the SEC, as described in Note 8. Our obligations under the L Bonds are secured by substantially all the assets of GWG Holdings, a pledge of all our common stock held individually by our largest stockholders, and by a guarantee and corresponding grant of a security interest in substantially all the assets of GWG Life. As a guarantor, GWG Life has fully and unconditionally guaranteed the payment of principal and interest on the L Bonds. GWG Life’s equity in DLP IV serve as collateral for our L Bond obligations. Substantially all of our life insurance policies are held by DLP IV or GWG Life Trust (“the Trust”). The policies held by DLP IV are not collateral for the L Bond obligations as such policies are pledged to the senior credit facility with LNV Corporation.

The consolidating financial statements are presented in lieu of separate financial statements and other related disclosures of the subsidiary guarantor and issuer, because management does not believe that separate financial statements and related disclosures would be material to investors. There are currently no significant restrictions on the ability of GWG Holdings or GWG Life, the guarantor subsidiary, to obtain funds from its subsidiaries by dividend or loan, except as described in these notes. A substantial majority of insurance policies we currently own are subject to a collateral arrangement with LNV Corporation described in Note 6. Under this arrangement, we are required to maintain collection and payment accounts that are used to collect policy benefits from pledged policies, pay interest and other charges under the facility, and distribute funds to pay down the facility.

The following represents condensed consolidating financial information as of June 30, 2018 and December 31, 2017, with respect to the financial position, and as of June 30, 2018 and 2017, with respect to results of operations and cash flows of GWG Holdings and its subsidiaries. The parent column presents the financial information of GWG Holdings, the primary obligor for the L Bonds. The guarantor subsidiary column presents the financial information of GWG Life, the guarantor subsidiary of the L Bonds, presenting its investment in DLP IV and the Trust under the equity method. The non-guarantor subsidiaries column presents the financial information of all non-guarantor subsidiaries, including DLP IV and the Trust.

Condensed Consolidating Balance Sheets

June 30, 2018	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated

A S S E T S

Cash and cash equivalents	$	123,017,408		$	546,177	$	881,219	$	-		$	124,444,804
Restricted cash		-			5,648,925		1,002,384		-			6,651,309
Investment in life insurance policies, at fair value		-			70,892,773		655,170,471		-			726,063,244
Life insurance policy benefits receivable		-			800,000		26,235,000		-			27,035,000
Other assets		4,307,833			1,921,184		4,612,550		-			10,841,567
Investment in subsidiaries		577,018,061			498,224,110		-		(1,075,242,171	)		-

TOTAL ASSETS	$	704,343,302		$	578,033,169	$	687,901,624	$	(1,075,242,171	)	$	895,035,924

L I A B I L I T I E S & S T O C K H O L D E R S’ E Q U I T Y

LIABILITIES
Senior credit facility with LNV Corporation	$	-		$	-	$	180,630,553	$	-		$	180,630,553
L Bonds		518,788,942			-		-		-			518,788,942
Accounts payable		580,162			738,894		1,307,227		-			2,626,283
Interest and dividends payable		11,449,184			-		5,487,541		-			16,936,725
Other accrued expenses		1,502,663			1,736,033		792,374		-			4,031,070
TOTAL LIABILITIES		532,320,951			2,474,927		188,217,695		-			723,013,573

STOCKHOLDERS’ EQUITY
Member capital		-			575,558,242		499,683,929		(1,075,242,171	)		-
Redeemable preferred stock and Series 2 redeemable preferred stock		220,701,701			-		-		-			220,701,701
Common stock		5,813			-		-		-			5,813
Accumulated deficit		(48,685,163	)		-		-		-			(48,685,163	)
TOTAL STOCKHOLDERS’ EQUITY		172,022,351			575,558,242		499,683,929		(1,075,242,171	)		172,022,351

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	704,343,302		$	578,033,169	$	687,901,624	$	(1,075,242,171	)	$	895,035,924

December 31, 2017	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated

A S S E T S

Cash and cash equivalents	$	111,952,829		$	1,486,623	$	982,039	$	-		$	114,421,491
Restricted cash		-			9,367,410		18,982,275		-			28,349,685
Investment in life insurance policies, at fair value		-			51,093,362		599,433,991		-			650,527,353
Life insurance policy benefits receivable		-			1,500,000		15,158,761		-			16,658,761
Other assets		1,912,203			1,986,312		5,000,369		-			8,898,884
Investment in subsidiaries		480,659,789			415,235,212		-		(895,895,001	)		-

TOTAL ASSETS	$	594,524,821		$	480,668,919	$	639,557,435	$	(895,895,001	)	$	818,856,174

L I A B I L I T I E S & S T O C K H O L D E R S’ E Q U I T Y

LIABILITIES
Senior credit facility with LNV Corporation	$	-		$	-	$	212,238,192	$	-		$	212,238,192
L Bonds		447,393,568			-		-		-			447,393,568
Accounts payable		1,434,623			844,899		4,114,917		-			6,394,439
Interest and dividends payable		10,296,584			-		5,130,925		-			15,427,509
Other accrued expenses		1,728,303			1,610,773		391,647		-			3,730,723
TOTAL LIABILITIES		460,853,078			2,455,672		221,875,681		-			685,184,431

STOCKHOLDERS’ EQUITY
Member capital		-			478,213,247		417,681,754		(895,895,001	)		-
Redeemable preferred stock and Series 2 redeemable preferred stock		173,115,447			-		-		-			173,115,447
Common stock		5,813			-		-		-			5,813
Accumulated deficit		(39,449,517	)		-		-		-			(39,449,517	)
TOTAL STOCKHOLDERS’ EQUITY		133,671,743			478,213,247		417,681,754		(895,895,001	)		133,671,743

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	594,524,821		$	480,668,919	$	639,557,435	$	(895,895,001	)	$	818,856,174

Condensed Consolidating Statements of Operations

For the three months ended June 30, 2018	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	6,620,224	$	16,719,526	$	-		$	23,339,750
Interest and other income		661,859			17,798		295,541		-			975,198
TOTAL REVENUE		661,859			6,638,022		17,015,067		-			24,314,948

EXPENSES
Interest expense		11,396,554			-		5,751,296		-			17,147,850
Employee compensation and benefits		1,414,360			1,318,806		502,533		-			3,235,699
Legal and professional fees		399,790			234,740		521,198		-			1,155,728
Other expenses		1,697,222			476,907		658,648		-			2,832,777
TOTAL EXPENSES		14,907,926			2,030,453		7,433,675		-			24,372,054

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(14,246,067	)		4,607,569		9,581,392		-			(57,106	)

EQUITY IN INCOME OF SUBSIDIARIES		14,188,961			10,693,650		-		(24,882,611	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(57,106	)		15,301,219		9,581,392		(24,882,611	)		(57,106	)

INCOME TAX BENEFIT		-			-		-		-			-
NET INCOME (LOSS)		(57,106	)		15,301,219		9,581,392		(24,882,611	)		(57,106	)
Preferred stock dividends		4,338,487			-		-		-			4,338,487
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(4,395,593	)	$	15,301,219	$	9,581,392	$	(24,882,611	)	$	(4,395,593	)

For the three months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	201,685		$	11,094,581	$	-		$	11,296,266
Interest and other income		69,221			163,384			298,141		(159,426	)		371,320
TOTAL REVENUE		69,221			365,069			11,392,722		(159,426	)		11,667,586

EXPENSES
Interest expense		8,325,874			391,061			3,555,266		(26,176	)		12,246,025
Employee compensation and benefits		2,109,562			1,529,188			102,549		-			3,741,299
Legal and professional fees		284,756			179,461			866,372		-			1,330,589
Other expenses		1,885,146			650,320			1,358,882		(133,250	)		3,761,098
TOTAL EXPENSES		12,605,338			2,750,030			5,883,069		(159,426	)		21,079,011

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(12,536,117	)		(2,384,961	)		5,509,653		-			(9,411,425	)

EQUITY IN INCOME OF SUBSIDIARIES		3,124,692			7,241,779			-		(10,366,471	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(9,411,425	)		4,856,818			5,509,653		(10,366,471	)		(9,411,425	)

INCOME TAX BENEFIT		(3,717,174	)		-			-		-			(3,717,174	)
NET INCOME (LOSS)		(5,694,251	)		4,856,818			5,509,653		(10,366,471	)		(5,694,251	)
Preferred stock dividends		2,031,097			-			-		-			2,031,097
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(7,725,348	)	$	4,856,818		$	5,509,653	$	(10,366,471	)	$	(7,725,348	)

For the six months ended June 30, 2018	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	8,013,679	$	29,194,816	$	-		$	37,208,495
Interest and other income		1,113,898			26,524		507,703		-			1,648,125
TOTAL REVENUE		1,113,898			8,040,203		29,702,519		-			38,856,620

EXPENSES
Interest expense		22,019,206			-		11,191,981		-			33,211,187
Employee compensation and benefits		3,337,093			2,794,537		846,738		-			6,978,368
Legal and professional fees		807,102			466,390		1,055,865		-			2,329,357
Other expenses		3,491,702			941,514		1,140,138		-			5,573,354
TOTAL EXPENSES		29,655,103			4,202,441		14,234,722		-			48,092,266

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(28,541,205	)		3,837,762		15,467,797		-			(9,235,646	)

EQUITY IN INCOME OF SUBSIDIARIES		19,305,559			17,557,850		-		(36,863,409	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(9,235,646	)		21,395,612		15,467,797		(36,863,409	)		(9,235,646	)

INCOME TAX BENEFIT							-		-
NET INCOME (LOSS)		(9,235,646	)		21,395,612		15,467,797		(36,863,409	)		(9,235,646	)
Preferred stock dividends		8,042,971			-		-		-			8,042,971
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(17,278,617	)	$	21,395,612	$	15,467,797	$	(36,863,409	)	$	(17,278,617	)

For the six months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	1,701,012		$	28,995,074	$	-		$	30,696,086
Interest and other income		154,228			235,285			923,802		(253,470	)		1,059,845
TOTAL REVENUE		154,228			1,936,297			29,918,876		(253,470	)		31,755,931

EXPENSES
Interest expense		17,587,908			677,415			7,292,113		(67,195	)		25,490,241
Employee compensation and benefits		4,038,357			2,750,770			115,232		-			6,904,360
Legal and professional fees		777,571			440,549			1,058,817		-			2,276,937
Other expenses		3,548,149			1,533,051			1,646,496		(186,275	)		6,541,420
TOTAL EXPENSES		25,951,985			5,401,785			10,112,658		(253,470	)		41,212,958

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(25,797,757	)		(3,465,488	)		19,806,218		-			(9,457,027	)

EQUITY IN INCOME OF SUBSIDIARIES		16,340,730			21,305,986			-		(37,646,716	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(9,457,027	)		17,840,498			19,806,218		(37,646,716	)		(9,457,027	)

INCOME TAX BENEFIT		(3,717,674	)		-			-		-			(3,717,674	)
NET INCOME (LOSS)		(5,739,353	)		17,840,498			19,806,218		(37,646,716	)		(5,739,353	)
Preferred stock dividends		3,898,857			-			-		-			3,898,857
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(9,638,210	)	$	17,840,498		$	19,806,218	$	(37,646,716	)	$	(9,638,210	)

Condensed Consolidating Statements of Cash Flows

For the three months ended June 30, 2018	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(57,106	)	$	15,301,219		$	9,581,392		$	(24,882,611	)	$	(57,106	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(14,188,961	)		(10,693,650	)		-			24,882,611			-
Changes in fair value of life insurance policies		-			(4,693,656	)		(9,879,519	)		-			(14,573,175	)
Amortization of deferred financing and issuance costs		2,139,018			-			263,755			-			2,402,773
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			(600,000	)		(14,132,270	)		-			(14,732,270	)
Other assets		(59,942,967	)		(41,271,719	)		346,531			99,135,390			(1,732,765	)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		471,218			(68,313	)		139,185			-			542,090
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(71,578,798	)		(42,026,119	)		(13,680,926	)		99,135,390			(28,150,453	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			(15,548,000	)		(14,700,939	)		-			(30,248,939	)
Carrying value of matured life insurance policies		-			1,313,885			4,834,464			-			6,148,349
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			(14,234,115	)		(9,866,475	)		-			(24,100,590	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(29,080,815	)		-			(29,080,815	)
Proceeds from issuance of L Bonds		60,536,446			-			-			-			60,536,446
Payments for redemption and issuance of L Bonds		(13,710,821	)		-			-			-			(13,710,821	)
Proceeds from issuance of preferred stock		14,372,959			-			-			-			14,372,959
Payments for issuance of preferred stock		(984,599	)		-			-			-			(984,599	)
Payments for redemption of preferred stock		(1,212,690	)		-			-			-			(1,212,690	)
Preferred stock dividends		(4,338,487	)		-			-			-			(4,338,487	)
Issuance of member capital		-			57,296,366			41,839,024			(99,135,390	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		54,662,808			57,296,366			12,758,209			(99,135,390	)		25,581,993

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(16,915,990	)		1,036,132			(10,789,192	)		-			(26,669,050	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		139,933,398			5,158,970			12,672,795			-			157,765,163

END OF THE PERIOD	$	123,017,408		$	6,195,102		$	1,883,603		$	-		$	131,096,113

For the three months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(5,694,251	)	$	4,856,818		$	5,509,653		$	(10,366,471	)	$	(5,694,251	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(3,124,692	)		(7,241,779	)		-			10,366,471			-
Changes in fair value of life insurance policies		-			(134,399	)		(15,101,103	)		-			(15,235,502	)
Amortization of deferred financing and issuance costs		926,816			28,964			542,168			-			1,497,948
Deferred income taxes		(3,717,174	)		-			-			-			(3,717,174	)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			600,000			1,405,000			-			2,005,000
Other assets		(32,646,205	)		(23,493,280	)		316,604			55,878,537			55,656
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		1,974,991			(1,405,114	)		830,967			-			1,400,844
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(42,280,515	)		(26,788,790	)		(6,496,711	)		55,878,537			(19,687,479	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			-			(19,432,338	)		-			(19,432,338	)
Carrying value of matured life insurance policies		-			256,152			2,758,682			-			3,014,834
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			256,152			(16,673,656	)		-			(16,417,504	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(3,845,037	)		-			(3,845,037	)
Payments for issuance of senior debt		-			(1,076,118	)		-			-			(1,076,118	)
Payments for redemption of Series I Secured Notes		-			(4,348,372	)		-			-			(4,348,372	)
Proceeds from issuance of L Bonds		31,875,811			-			-			-			31,875,811
Payments for redemption and issuance of L Bonds		(15,025,566	)		-			-			-			(15,025,566	)
Issuance of common stock		4			-			-			-			4
Proceeds from issuance of preferred stock		34,301,747			-			-			-			34,301,747
Payments for issuance of preferred stock		(1,945,618	)		-			-			-			(1,945,618	)
Payments for redemption of preferred stock		(1,372,593	)		-			-			-			(1,372,593	)
Preferred stock dividends		(2,031,097	)		-			-			-			(2,031,097	)
Issuance of member capital		-			31,450,843			24,427,694			(55,878,537	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		45,802,688			26,026,353			20,582,657			(55,878,537	)		36,533,161

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,522,173			(506,285	)		(2,587,710	)		-			428,178

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		46,110,677			6,411,771			45,502,477			-			98,024,925

END OF THE PERIOD	$	49,632,850		$	5,905,486		$	42,914,767		$	-		$	98,453,103

For the six months ended June 30, 2018	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(9,235,646	)	$	21,395,612		$	15,467,797		$	(36,863,409	)	$	(9,235,646	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(19,305,559	)		(17,557,850	)		-			36,863,409			-
Changes in fair value of life insurance policies		-			(6,205,841	)		(25,012,928	)		-			(31,218,769	)
Amortization of deferred financing and issuance costs		4,138,451			-			527,510			-			4,665,961
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			700,000			(11,076,239	)		-			(10,376,239	)
Other assets		(79,448,344	)		(65,365,920	)		521,297			142,483,761			(1,809,206	)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		1,161,452			19,255			(2,183,825	)		-			(1,003,118	)
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(102,689,646	)		(67,014,744	)		(21,756,388	)		142,483,761			(48,977,017	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			(15,548,000	)		(40,000,764	)		-			(55,548,764	)
Carrying value of matured life insurance policies		-			1,954,430			9,277,213			-			11,231,643
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			(13,593,570	)		(30,723,551	)		-			(44,317,121	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(32,135,150	)					(32,135,150	)
Proceeds from issuance of L Bonds		97,197,545			-			-			-			97,197,545
Payments for redemption and issuance of L Bonds		(25,956,269	)		-			-			-			(25,956,269	)
Proceeds from issuance of preferred stock		56,238,128			-			-						56,238,128
Payments for issuance of preferred stock		(4,142,294	)		-			-						(4,142,294	)
Payments for redemption of preferred stock		(1,539,914	)		-			-						(1,539,914	)
Preferred stock dividends		(8,042,971	)		-			-			-			(8,042,971	)
Issuance of member capital		-			75,949,383			66,534,378			(142,483,761	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		113,754,225			75,949,383			34,399,228			(142,483,761	)		81,619,075

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		11,064,579			(4,658,931	)		(18,080,711	)		-			(11,675,063	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		111,952,829			10,854,033			19,964,314			-			142,771,176

END OF THE PERIOD	$	123,017,408		$	6,195,102		$	1,883,603		$	-		$	131,096,113

For the six months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(5,739,353	)	$	17,840,498		$	19,806,218		$	(37,646,716	)	$	(5,739,353	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(16,340,730	)		(21,305,986	)		-			37,646,716			-
Changes in fair value of life insurance policies		-			(1,193,821	)		(27,925,514	)		-			(29,119,335	)
Amortization of deferred financing and issuance costs		2,855,809			74,384			1,233,958			-			4,164,151
Deferred income taxes, net		(3,717,674	)		-			-			-			(3,717,674	)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			-			(1,625,000	)		-			(1,625,000	)
Other assets		(27,138,260	)		(55,534,365	)		1,842,210			83,082,776			2,252,361
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		3,428,613			(1,563,526	)		1,081,963			-			2,947,050
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(46,651,595	)		(61,682,816	)		(5,586,165	)		83,082,776			(30,837,800	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			-			(42,121,671	)		-			(42,121,671	)
Carrying value of matured life insurance policies		-			751,576			4,632,232			-			5,383,808
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			751,576			(37,489,439	)		-			(36,737,863	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(7,099,537	)		-			(7,099,537	)
Payments for issuance of senior debt		-			(1,076,118	)		(114,294	)		-			(1,190,412	)
Payments for redemption of Series I Secured Notes		-			(9,798,261	)		-			-			(9,798,261	)
Proceeds from issuance of L Bonds		56,744,470			-			-			-			56,744,470
Payments for redemption and issuance of L Bonds		(39,197,163	)		-			-			-			(39,197,163	)
Redemption of common stock		(1,603,556	)		-			-			-			(1,603,556	)
Proceeds from issuance of preferred stock		61,480,941			-			-			-			61,480,941
Payments for issuance of preferred stock		(3,963,105	)		-			-			-			(3,963,105	)
Payments for redemption of preferred stock		(1,759,332	)		-			-			-			(1,759,332	)
Preferred stock dividends		(3,898,857	)		-			-			-			(3,898,857	)
Issuance of member capital		-			26,232,504			56,850,272			(83,082,776	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		67,803,398			15,358,125			49,636,441			(83,082,776	)		49,715,188

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		21,151,803			(45,573,115	)		6,560,837			-			(17,860,475	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		28,481,047			51,478,601			36,353,930			-			116,313,578

END OF THE PERIOD	$	49,632,850		$	5,905,486		$	42,914,767		$	-		$	98,453,103

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Concentration

6 Months Ended

Jun. 30, 2018

Concentration [Abstract]

Concentration

(20) Concentration

We mostly purchase life insurance policies written by life insurance companies having investment-grade ratings by independent rating agencies. As a result, there may be certain concentrations of policies with life insurance companies. The following summarizes the face value of insurance policies with specific life insurance companies exceeding 10% of the total face value held by our portfolio.

Life Insurance Company	June 30, 2018			December 31, 2017
John Hancock		14.71	%		15.57	%
AXA Equitable		11.39	%		11.88	%
Lincoln National		11.19	%		10.80	%

The following summarizes the states, based on insured state of residence of the insurance policies in our portfolio, exceeding 10% of the total face value held by us:

State of Residence	June 30, 2018			December 31, 2017
Florida		19.90	%		20.16	%
California		18.71	%		18.60	%

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Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	(21) Subsequent Events Subsequent to June 30, 2018, two policies covering two individuals have matured. The combined face value of insurance benefits of these policies were $400,000. Subsequent to June 30, 2018, we have issued approximately $28,462,000 of L Bonds. On January 12, 2018, GWG Holdings and its wholly owned subsidiary GWG Life entered into a Master Exchange Agreement with The Beneficient Company Group, L.P., a Delaware limited partnership (“Beneficient”), MHT Financial SPV, LLC, a Delaware limited liability company (“MHT SPV”), and various related trusts (the “Seller Trusts”), as amended and restated on January 18, 2018 with effect from January 12, 2018, and as further amended by the First Amendment to Master Exchange Agreement and Second Amendment to Master Exchange Agreement (as amended, the “Master Exchange Agreement”). Under the Master Exchange Agreement, GWG Holdings, on the one hand, and any of Beneficient, MHT SPV or the Seller Trusts, on the other hand, could terminate the Master Exchange Agreement prior to the closing under certain circumstances, including if the conditions to closing of the transaction had not been fulfilled by June 30, 2018 (the “Closing Conditions Date”). On March 30, 2018 and June 29, 2018, GWG Holdings, GWG Life, Beneficient, MHT SPV, and the Seller Trusts entered into First and Second Amendments to Master Exchange Agreement pursuant to which the Closing Conditions Date was extended to July 30, 2018. The material terms and conditions of the Master Exchange Agreement were described in GWG Holdings’ Current Report on Form 8-K filed with the Securities and Exchange Commission on January 18, 2018. The transactions contemplated by the Master Exchange Agreement are referred to as the “Exchange Transaction”. On August 10, 2018, GWG Holdings, GWG Life, Beneficient, MHT SPV, and the Seller Trusts entered into a Third Amendment to Master Exchange Agreement (the “Third Amendment”). Pursuant to the Third Amendment, the parties agreed to consummate the Exchange Transaction in two closings. The Third Amendment also generally deleted MHT SPV as a party to the Master Exchange Agreement. The material terms and conditions of the Third Amendment, the Exchange Transaction and the first closing thereof were described in GWG Holdings’ Current Report on Form 8-K filed with the Securities and Exchange Commission on August 14, 2018. In connection with the transactions contemplated by the Third Amendment, on August 10, 2018, GWG Holdings, GWG Life and Bank of Utah, as trustee (the “Trustee”), entered into a Supplemental Indenture (the “Supplemental Indenture”) to the Amended and Restated Indenture dated as of October 23, 2017 between GWG Holdings, GWG Life and the Trustee, as amended. GWG Holdings entered into the Supplemental Indenture to add and change certain provisions of the Amended and Restated Indenture necessary to provide for the issuance of a new class of securities titled “Seller Trust L Bonds”. The maturity date of the Seller Trust L Bonds is August 9, 2023. The Seller Trust L Bonds bear interest at 7.50% per year. The material terms and conditions of the Supplemental Indenture and the Seller Trust L Bonds were described in GWG Holdings’ Current Report on Form 8-K filed with the Securities and Exchange Commission on August 14, 2018. On August 14, 2018 the Company’s Board of Directors declared a special dividend of $4.30 per share of common stock (approximately $25 million) payable in cash on September 5, 2018 to shareholders of record on August 27, 2018.

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Nature of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Nature of Business and Summary of Significant Accounting Policies[Abstract]
Use of Estimates	Use of Estimates — The preparation of our condensed consolidated financial statements in conformity with the Generally Accepted Accounting Principles in the United States of America (GAAP) requires management to make significant estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenue during the reporting period. We regularly evaluate estimates and assumptions, which are based on current facts, historical experience, management’s judgment, and various other factors that we believe to be reasonable under the circumstances. Our actual results may differ materially and adversely from our estimates. The most significant estimates with regard to these condensed consolidated financial statements relate to (1) the determination of the assumptions used in estimating the fair value of our investments in life insurance policies and (2) the value of our deferred tax assets and liabilities.
Cash and Cash Equivalents	Cash and Cash Equivalents — We consider cash in demand deposit accounts and temporary investments purchased with an original maturity of three months or less to be cash equivalents. We maintain our cash and cash equivalents with highly rated financial institutions. The balances in our bank accounts may exceed Federal Deposit Insurance Corporation limits. We periodically evaluate the risk of exceeding insured levels and may transfer funds as we deem appropriate.
Life Insurance Policies	Life Insurance Policies — Accounting Standards Codification 325-30, Investments in Insurance Contracts permits a reporting entity to account for its investments in life insurance policies using either the investment method or the fair value method. We elected to use the fair value method to account for our life insurance policies. We initially record our purchase of life insurance policies at the transaction price, which is the amount paid for the policy, inclusive of all external fees and costs associated with the acquisition. At each subsequent reporting period, we re-measure the investment at fair value in its entirety and recognize the change in fair value as unrealized gain or loss in the current period, net of premiums paid, within gain on life insurance policies, net in our condensed consolidated statements of operations. In a case where our acquisition of a policy is not complete as of a reporting date, but we have nonetheless advanced direct costs and deposits for the acquisition, those costs and deposits are recorded as other assets on our condensed consolidated balance sheets until the acquisition is complete and we have secured title to the policy. On both June 30, 2018 and December 31, 2017, a total of $0 of our other assets comprised direct costs and deposits that we had advanced for life insurance policy acquisitions. We also recognize realized gain (or loss) from a life insurance policy upon one of the two following events: (1) our receipt of notice or verified mortality of the insured; or (2) our sale of the policy (upon filing of change-of-ownership forms and receipt of payment). In the case of mortality, the gain (or loss) we recognize is the difference between the policy benefits and the carrying value of the policy once we determine that collection of the policy benefits is realizable and reasonably assured. In the case of a policy sale, the gain (or loss) we recognize is the difference between the sale price and the carrying value of the policy on the date we receive sale proceeds.
Other Assets	Other Assets — Life Epigenetics is engaged in the development of intellectual property related to its exclusive license for the “DNA Methylation Based Predictor of Mortality” technology for the life insurance industry. The cost of entering into this license agreement is included in other assets on our condensed consolidated balance sheets. To maintain the Company’s life insurance provider licenses in certain states, we are required to keep cash security deposits with the states’ licensing authorities. Security deposits included in other assets were $575,000 at both June 30, 2018 and December 31, 2017.
Stock-Based Compensation	Stock-Based Compensation — We measure and recognize compensation expense for all stock-based payments at fair value on the grant date over the requisite service period. We use the Black-Scholes option pricing model to determine the weighted-average fair value of stock options. For restricted stock grants, fair value is determined as of the closing price of our common stock on the date of grant. Stock-based compensation expense is recorded in general and administrative expenses based on the classification of the employee or vendor. The determination of fair value of stock-based payment awards on the date of grant is affected by our stock price and a number of subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards and the expected duration of the awards. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at grant date. Volatility is based on the standard deviation of the average continuously compounded rate of return of five selected comparable companies. We have not paid common stock dividends.
Deferred Financing and Issuance Costs	Deferred Financing and Issuance Costs — Loans advanced to us under our senior credit facility with LNV Corporation, as described in Note 6, are reported net of financing costs, including issuance costs, sales commissions and other direct expenses, which are amortized using the straight-line method over the term of the facility. We had no loans advanced to us under our senior credit facility with Autobahn Funding Company during the year ended December 31, 2017 and this credit facility has since been terminated, as described in Note 5. The L Bonds, as described in Note 8, are reported net of financing costs, which are amortized using the interest method over the term of those borrowings. The Series I Secured Notes, as described in Note 7 have been redeemed, was reported net of financing costs, all of which were fully amortized using the interest method as of December 31, 2017. The Series A Convertible Preferred Stock (“Series A”), as described in Note 9, was reported net of financing costs (including the fair value of warrants issued), all of which were fully amortized using the interest method as of December 31, 2017. All shares of Series A have been redeemed and the obligations thereunder satisfied. Selling and issuance costs of Redeemable Preferred Stock (“RPS”) and Series 2 Redeemable Preferred Stock (“RPS 2”), described in Notes 10 and 11, are netted against additional paid-in-capital, until depleted, and then against the outstanding balance of the preferred stock.
Earnings (loss) per Share	Earnings (loss) per Share — Basic earnings (loss) per share attributable to common shareholders are calculated using the weighted-average number of shares outstanding during the reported period. Diluted earnings (loss) per share are calculated based on the potential dilutive impact of our Series A, RPS, RPS 2, warrants and stock options. Due to our net loss attributable to common shareholders for the three and six months ended June 30, 2018, there are no dilutive securities.
Reclassification	Reclassification — Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements — On February 25, 2016, the FASB issued Accounting Standards Update 2016-02 Leases (“ASU 2016-02”). The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 provides more transparency and comparability in the financial statements of lessees by recognizing all leases with a term greater than twelve months on the balance sheet. Lessees will also be required to disclose key information about their leases. Early adoption is permitted. We are currently evaluating the impact of the adoption of this pronouncement and have not yet adopted ASU 2016-02 as of June 30, 2018. In March 2016, the FASB issued Accounting Standards Update 2016-09 (“ASU 2016-09”) to simplify the accounting for stock compensation related to the following items: income tax accounting, award classification, estimation of forfeitures, and cash flow presentation. The new guidance is effective for fiscal years beginning after December 15, 2016. We adopted ASU 2016-09 effective January 1, 2017. The impact of the adoption was not material to the financial statements. In November 2016, the FASB issued Accounting Standards Update 2016-18 (“ASU 2016-18”), which amends ASC 230 Statement of Cash Flows to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance, to be applied retrospectively when adopted, requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. We adopted ASU 2016-18 as of March 31, 2018. The impact of the adoption was not material to the financial statements.

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Investment in Life Insurance Policies (Tables)

6 Months Ended

Jun. 30, 2018

Investment in Life Insurance Policies [Abstract]

Schedule of life insurance portfolio

Life Insurance Portfolio Summary

Total portfolio face value of policy benefits	$	1,849,079,000
Average face value per policy	$	1,831,000
Average face value per insured life	$	2,052,000
Average age of insured (yrs.)*		81.9
Average life expectancy estimate (yrs.)*		6.8
Total number of policies		1,010
Number of unique lives		901
Demographics		76% Males; 24% Females
Number of smokers		41
Largest policy as % of total portfolio face value		0.72	%
Average policy as % of total portfolio		0.10	%
Average annual premium as % of face value		3.11	%

*	Averages presented in the table are weighted averages.

Summary of organized according to their estimated life expectancy dates as of the reporting date

	As of June 30, 2018						As of December 31, 2017
Years Ending December 31,	Number of Policies		Estimated Fair Value		Face Value		Number of Policies		Estimated Fair Value		Face Value
2018		4	$	3,328,000	$	3,375,000		8	$	4,398,000	$	4,689,000
2019		35		44,532,000		55,472,000		48		63,356,000		83,720,000
2020		80		77,686,000		115,736,000		87		79,342,000		127,373,000
2021		97		104,685,000		176,820,000		98		96,154,000		170,695,000
2022		119		100,279,000		190,208,000		90		85,877,000		181,120,000
2023		102		84,874,000		205,340,000		93		69,467,000		175,458,000
2024		111		83,602,000		232,258,000		100		77,638,000		228,188,000
Thereafter		462		227,077,000		869,870,000		374		174,295,000		704,905,000
Totals		1,010	$	726,063,000	$	1,849,079,000		898	$	650,527,000	$	1,676,148,000

Schedule of reconciliation of gain on life insurance policies

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Change in estimated probabilistic cash flows ⁽¹⁾	$	17,409,000		$	13,431,000		$	36,414,000		$	27,465,000
Unrealized gain on acquisitions ⁽²⁾		5,795,000			8,044,000			12,769,000			18,646,000
Premiums and other annual fees		(12,708,000	)		(11,859,000	)		(24,906,000	)		(22,949,000	)
Change in discount rates ⁽³⁾		-			4,143,000			-			4,143,000
Change in life expectancy evaluation ⁽⁴⁾		(95,000	)		(6,662,000	)		(4,963,000	)		(8,604,000	)
Face value of matured policies		27,623,000			10,935,000			42,127,000			29,910,000
Fair value of matured policies		(14,684,000	)		(6,736,000	)		(24,233,000	)		(17,915,000	)
Gain on life insurance policies, net	$	23,340,000		$	11,296,000		$	37,208,000		$	30,696,000

(1)	Change in fair value of expected future cash flows relating to our investment in life insurance policies that are not specifically attributable to changes in life expectancy, discount rate or policy maturity events.

(2)	Gain resulting from fair value in excess of transaction price for policies acquired during the reporting period.

(3)	The discount rate of 10.45% as of June 30, 2018 remained unchanged from both the prior quarter and year end dates. The discount rate of 10.81% as of June 30, 2017 reflected a decrease from the 10.96% rate used at both the preceding quarter and year end dates.

(4)	The change in fair value due to updating life expectancy estimates on certain life insurance policies in our portfolio.

Schedule of estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies

Years Ending December 31,	Premiums		Servicing		Premiums and Servicing Fees
Six months ending December 31, 2018	$	27,358,000	$	677,000	$	28,035,000
2019		63,323,000		1,355,000		64,678,000
2020		73,758,000		1,355,000		75,113,000
2021		84,700,000		1,355,000		86,055,000
2022		95,964,000		1,355,000		97,319,000
2023		107,289,000		1,355,000		108,644,000
	$	452,392,000	$	7,452,000	$	459,844,000

XML 44 R30.htm IDEA: XBRL DOCUMENT

Fair Value Definition and Hierarchy (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Definition and Hierarchy [Abstract]

Schedule of reconciliation of investments in life insurance policies

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Beginning balance	$	687,389,000		$	545,397,000		$	650,527,000		$	511,192,000
Purchases		30,249,000			19,432,000			55,549,000			42,122,000
Maturities (initial cost basis)		(6,148,000	)		(3,015,000	)		(11,232,000	)		(5,384,000	)
Net change in fair value		14,573,000			15,236,000			31,219,000			29,120,000
Ending balance	$	726,063,000		$	577,050,000		$	726,063,000		$	577,050,000

Schedule of inputs utilized in estimating the fair value of our portfolio of life insurance policies

	As of June 30, 2018			As of December 31, 2017
Weighted-average age of insured, years *		81.9			81.7
Weighted-average life expectancy, months *		82.0			82.4
Average face amount per policy	$	1,831,000		$	1,867,000
Discount rate		10.45	%		10.45	%

(*)

Weighted-average by face amount of policy benefits

Schedule of change in fair value of the investment in life insurance policies

	Change in Life Expectancy Estimates
	minus 8 months		minus 4 months		plus 4 months			plus 8 months

June 30, 2018	$	96,387,000	$	47,837,000	$	(47,457,000	)	$	(94,194,000	)
December 31, 2017	$	86,391,000	$	42,886,000	$	(42,481,000	)	$	(84,238,000	)

	Change in Discount Rate
	minus 2%		minus 1%		plus 1%			plus 2%

June 30, 2018	$	75,047,000	$	35,898,000	$	(33,001,000	)	$	(63,412,000	)
December 31, 2017	$	68,117,000	$	32,587,000	$	(29,964,000	)	$	(57,583,000	)

Schedule of outstanding warrants

Month issued	Warrants issued		Fair value per share		Risk free rate			Volatility			Term
September 2014		16,000	$	1.26		1.85	%		17.03	%	5 years
		16,000

XML 45 R31.htm IDEA: XBRL DOCUMENT

L Bonds (Tables)

6 Months Ended

Jun. 30, 2018

L Bonds [Abstract]

Schedule of future contractual maturities of L Bonds, and future amortization of deferred financing costs

Years Ending December 31,	Contractual Maturities		Unamortized Deferred Financing Costs
Six months ending December 31, 2018	$	60,612,000	$	312,000
2019		150,617,000		3,024,000
2020		114,594,000		4,050,000
2021		65,293,000		2,860,000
2022		39,713,000		1,888,000
2023		36,818,000		1,984,000
Thereafter		66,655,000		3,942,000
	$	534,302,000	$	18,060,000

XML 46 R32.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Income Taxes [Abstract]

Schedule of income tax expense (benefit) and reconciliation of statutory federal tax rate

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2018			2017			2018			2017

Statutory federal income tax (benefit)	$	(12,000	)	$	(3,200,000	)	$	(1,939,000	)	$	(3,215,000	)
State income taxes (benefit), net of federal benefit		10,000			(607,000	)		(692,000	)		(609,000	)
Change in valuation allowance		(36,000	)		-			2,568,000			-
Other permanent differences		38,000			90,000			63,000			106,000
Total income tax expense (benefit)	$	-		$	(3,717,000	)	$	-		$	(3,718,000	)

Schedule of deferred tax assets and liabilities

	As of June 30, 2018			As of December 31, 2017
Deferred tax assets:
Note receivable from related party	$	1,437,000		$	1,437,000
Net operating loss carryforwards		9,787,000			9,995,000
Other assets		1,487,000			1,724,000
Subtotal		12,711,000			13,156,000
Valuation allowance		(8,954,000	)		(6,386,000	)
Deferred tax assets		3,757,000			6,770,000

Deferred tax liabilities:
Investment in life insurance policies		(3,651,000	)		(6,630,000	)
Other liabilities		(106,000	)		(140,000	)
Net deferred tax asset(liability)	$	-		$	-

XML 47 R33.htm IDEA: XBRL DOCUMENT

Stock Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2018

Stock Incentive Plan [Abstract]

Schedule of outstanding stock options

	Vested			Un-vested			Total
Balance as of December 31, 2016		738,065			844,334			1,582,399
Granted during the year		61,099			367,500			428,599
Vested during the year		327,061			(327,061	)		-
Exercised during the year		(126,498	)		-			(126,498	)
Forfeited during the year		(142,535	)		(105,017	)		(247,552	)
Balance as of December 31, 2017		857,192			779,756			1,636,948
Granted year-to-date		4,850			99,200			104,050
Vested year-to-date		235,424			(235,424	)		-
Exercised year-to-date		(23,834	)		-			(23,834	)
Forfeited year-to-date		(12,582	)		(25,501	)		(38,083	)
Balance as of June 30, 2018		1,061,050			618,031			1,679,081

Schedule of outstanding stock appreciation rights (SARs)

	Vested		Un-vested			Total
Balance as of December 31, 2016		106,608		133,127			239,735
Granted during the year		13,001		91,986			104,987
Vested during the year		69,444		(69,444	)		-
Forfeited during the year		-		(1,750	)		(1,750	)
Balance as of December 31, 2017		189,053		153,919			342,972
Granted year-to-date		-		64,050			64,050
Vested year-to-date		25,699		(25,699	)		-
Forfeited year-to-date		-		-			-
Balance as of June 30, 2018		214,752		192,270			407,022

Schedule of outstanding shares options and SARs issued

	June 30, 2018
	Outstanding		Weighted-Average Exercise Price		Weighted-Average Remaining Life (years)		Fair Value at Grant Date
Vested
Stock Options		1,061,050	$	8.21		5.90	$	1.82
SARs		214,752	$	8.61		5.41	$	1.89
Total Vested		1,275,802	$	8.28		5.81	$	1.83

Unvested
Stock Options		618,031	$	9.22		7.18	$	2.21
SARs		192,270	$	8.93		6.11	$	2.10
Total Unvested		810,301	$	9.16		6.93	$	2.18

	December 31, 2017
	Outstanding		Weighted-Average Exercise Price		Weighted-Average Remaining Life (years)		Fair Value at Grant Date
Vested
Stock Options		857,192	$	8.05		6.17	$	1.76
SARs		189,053	$	8.54		5.86	$	1.90
Total Vested		1,046,245	$	8.14		6.11	$	1.78

Unvested
Stock Options		779,756	$	9.21		7.50	$	2.17
SARs		153,919	$	9.16		6.24	$	2.02
Total Unvested		933,675	$	9.21		7.30	$	2.15

XML 48 R34.htm IDEA: XBRL DOCUMENT

Other Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Other Expenses [Abstract]

Schedule of other expenses in consolidated statements of operations

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Contract Labor	$	305,000	$	87,000	$	605,000	$	181,000
Marketing		509,000		649,000		930,000		1,201,000
Information Technology		366,000		351,000		866,000		682,000
Servicing and Facility Fees		468,000		405,000		862,000		686,000
Travel and Entertainment		230,000		283,000		446,000		518,000
Insurance and Regulatory		352,000		393,000		719,000		718,000
Charitable Contributions		-		89,000		-		420,000
Provision for MCA Advances		94,000		878,000		94,000		878,000
General and Administrative		509,000		626,000		1,051,000		1,257,000
Total Other Expenses	$	2,833,000	$	3,761,000	$	5,573,000	$	6,541,000

XML 49 R35.htm IDEA: XBRL DOCUMENT

Commitments (Tables)

6 Months Ended

Jun. 30, 2018

Commitments/Contingencies [Abstract]

Schedule of minimum lease payments under amendment lease

Six months ending December 31, 2018	$	133,000
2019		275,000
2020		284,000
2021		293,000
2022		302,000
2023		311,000
Thereafter		593,000
	$	2,191,000

XML 50 R36.htm IDEA: XBRL DOCUMENT

Guarantee of L Bonds (Tables)

6 Months Ended

Jun. 30, 2018

Guarantee of L Bonds [Abstract]

Schedule of condensed consolidating balance sheets

June 30, 2018	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated

A S S E T S

Cash and cash equivalents	$	123,017,408		$	546,177	$	881,219	$	-		$	124,444,804
Restricted cash		-			5,648,925		1,002,384		-			6,651,309
Investment in life insurance policies, at fair value		-			70,892,773		655,170,471		-			726,063,244
Life insurance policy benefits receivable		-			800,000		26,235,000		-			27,035,000
Other assets		4,307,833			1,921,184		4,612,550		-			10,841,567
Investment in subsidiaries		577,018,061			498,224,110		-		(1,075,242,171	)		-

TOTAL ASSETS	$	704,343,302		$	578,033,169	$	687,901,624	$	(1,075,242,171	)	$	895,035,924

L I A B I L I T I E S & S T O C K H O L D E R S’ E Q U I T Y

LIABILITIES
Senior credit facility with LNV Corporation	$	-		$	-	$	180,630,553	$	-		$	180,630,553
L Bonds		518,788,942			-		-		-			518,788,942
Accounts payable		580,162			738,894		1,307,227		-			2,626,283
Interest and dividends payable		11,449,184			-		5,487,541		-			16,936,725
Other accrued expenses		1,502,663			1,736,033		792,374		-			4,031,070
TOTAL LIABILITIES		532,320,951			2,474,927		188,217,695		-			723,013,573

STOCKHOLDERS’ EQUITY
Member capital		-			575,558,242		499,683,929		(1,075,242,171	)		-
Redeemable preferred stock and Series 2 redeemable preferred stock		220,701,701			-		-		-			220,701,701
Common stock		5,813			-		-		-			5,813
Accumulated deficit		(48,685,163	)		-		-		-			(48,685,163	)
TOTAL STOCKHOLDERS’ EQUITY		172,022,351			575,558,242		499,683,929		(1,075,242,171	)		172,022,351

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	704,343,302		$	578,033,169	$	687,901,624	$	(1,075,242,171	)	$	895,035,924

December 31, 2017	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated

A S S E T S

Cash and cash equivalents	$	111,952,829		$	1,486,623	$	982,039	$	-		$	114,421,491
Restricted cash		-			9,367,410		18,982,275		-			28,349,685
Investment in life insurance policies, at fair value		-			51,093,362		599,433,991		-			650,527,353
Life insurance policy benefits receivable		-			1,500,000		15,158,761		-			16,658,761
Other assets		1,912,203			1,986,312		5,000,369		-			8,898,884
Investment in subsidiaries		480,659,789			415,235,212		-		(895,895,001	)		-

TOTAL ASSETS	$	594,524,821		$	480,668,919	$	639,557,435	$	(895,895,001	)	$	818,856,174

L I A B I L I T I E S & S T O C K H O L D E R S’ E Q U I T Y

LIABILITIES
Senior credit facility with LNV Corporation	$	-		$	-	$	212,238,192	$	-		$	212,238,192
L Bonds		447,393,568			-		-		-			447,393,568
Accounts payable		1,434,623			844,899		4,114,917		-			6,394,439
Interest and dividends payable		10,296,584			-		5,130,925		-			15,427,509
Other accrued expenses		1,728,303			1,610,773		391,647		-			3,730,723
TOTAL LIABILITIES		460,853,078			2,455,672		221,875,681		-			685,184,431

STOCKHOLDERS’ EQUITY
Member capital		-			478,213,247		417,681,754		(895,895,001	)		-
Redeemable preferred stock and Series 2 redeemable preferred stock		173,115,447			-		-		-			173,115,447
Common stock		5,813			-		-		-			5,813
Accumulated deficit		(39,449,517	)		-		-		-			(39,449,517	)
TOTAL STOCKHOLDERS’ EQUITY		133,671,743			478,213,247		417,681,754		(895,895,001	)		133,671,743

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	594,524,821		$	480,668,919	$	639,557,435	$	(895,895,001	)	$	818,856,174

Schedule of condensed consolidating statements of operations

For the three months ended June 30, 2018	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	6,620,224	$	16,719,526	$	-		$	23,339,750
Interest and other income		661,859			17,798		295,541		-			975,198
TOTAL REVENUE		661,859			6,638,022		17,015,067		-			24,314,948

EXPENSES
Interest expense		11,396,554			-		5,751,296		-			17,147,850
Employee compensation and benefits		1,414,360			1,318,806		502,533		-			3,235,699
Legal and professional fees		399,790			234,740		521,198		-			1,155,728
Other expenses		1,697,222			476,907		658,648		-			2,832,777
TOTAL EXPENSES		14,907,926			2,030,453		7,433,675		-			24,372,054

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(14,246,067	)		4,607,569		9,581,392		-			(57,106	)

EQUITY IN INCOME OF SUBSIDIARIES		14,188,961			10,693,650		-		(24,882,611	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(57,106	)		15,301,219		9,581,392		(24,882,611	)		(57,106	)

INCOME TAX BENEFIT		-			-		-		-			-
NET INCOME (LOSS)		(57,106	)		15,301,219		9,581,392		(24,882,611	)		(57,106	)
Preferred stock dividends		4,338,487			-		-		-			4,338,487
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(4,395,593	)	$	15,301,219	$	9,581,392	$	(24,882,611	)	$	(4,395,593	)

For the three months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	201,685		$	11,094,581	$	-		$	11,296,266
Interest and other income		69,221			163,384			298,141		(159,426	)		371,320
TOTAL REVENUE		69,221			365,069			11,392,722		(159,426	)		11,667,586

EXPENSES
Interest expense		8,325,874			391,061			3,555,266		(26,176	)		12,246,025
Employee compensation and benefits		2,109,562			1,529,188			102,549		-			3,741,299
Legal and professional fees		284,756			179,461			866,372		-			1,330,589
Other expenses		1,885,146			650,320			1,358,882		(133,250	)		3,761,098
TOTAL EXPENSES		12,605,338			2,750,030			5,883,069		(159,426	)		21,079,011

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(12,536,117	)		(2,384,961	)		5,509,653		-			(9,411,425	)

EQUITY IN INCOME OF SUBSIDIARIES		3,124,692			7,241,779			-		(10,366,471	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(9,411,425	)		4,856,818			5,509,653		(10,366,471	)		(9,411,425	)

INCOME TAX BENEFIT		(3,717,174	)		-			-		-			(3,717,174	)
NET INCOME (LOSS)		(5,694,251	)		4,856,818			5,509,653		(10,366,471	)		(5,694,251	)
Preferred stock dividends		2,031,097			-			-		-			2,031,097
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(7,725,348	)	$	4,856,818		$	5,509,653	$	(10,366,471	)	$	(7,725,348	)

For the six months ended June 30, 2018	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	8,013,679	$	29,194,816	$	-		$	37,208,495
Interest and other income		1,113,898			26,524		507,703		-			1,648,125
TOTAL REVENUE		1,113,898			8,040,203		29,702,519		-			38,856,620

EXPENSES
Interest expense		22,019,206			-		11,191,981		-			33,211,187
Employee compensation and benefits		3,337,093			2,794,537		846,738		-			6,978,368
Legal and professional fees		807,102			466,390		1,055,865		-			2,329,357
Other expenses		3,491,702			941,514		1,140,138		-			5,573,354
TOTAL EXPENSES		29,655,103			4,202,441		14,234,722		-			48,092,266

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(28,541,205	)		3,837,762		15,467,797		-			(9,235,646	)

EQUITY IN INCOME OF SUBSIDIARIES		19,305,559			17,557,850		-		(36,863,409	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(9,235,646	)		21,395,612		15,467,797		(36,863,409	)		(9,235,646	)

INCOME TAX BENEFIT							-		-
NET INCOME (LOSS)		(9,235,646	)		21,395,612		15,467,797		(36,863,409	)		(9,235,646	)
Preferred stock dividends		8,042,971			-		-		-			8,042,971
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(17,278,617	)	$	21,395,612	$	15,467,797	$	(36,863,409	)	$	(17,278,617	)

For the six months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Consolidated
REVENUE
Gain on life insurance policies, net	$	-		$	1,701,012		$	28,995,074	$	-		$	30,696,086
Interest and other income		154,228			235,285			923,802		(253,470	)		1,059,845
TOTAL REVENUE		154,228			1,936,297			29,918,876		(253,470	)		31,755,931

EXPENSES
Interest expense		17,587,908			677,415			7,292,113		(67,195	)		25,490,241
Employee compensation and benefits		4,038,357			2,750,770			115,232		-			6,904,360
Legal and professional fees		777,571			440,549			1,058,817		-			2,276,937
Other expenses		3,548,149			1,533,051			1,646,496		(186,275	)		6,541,420
TOTAL EXPENSES		25,951,985			5,401,785			10,112,658		(253,470	)		41,212,958

INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES		(25,797,757	)		(3,465,488	)		19,806,218		-			(9,457,027	)

EQUITY IN INCOME OF SUBSIDIARIES		16,340,730			21,305,986			-		(37,646,716	)		-

NET INCOME (LOSS) BEFORE INCOME TAXES		(9,457,027	)		17,840,498			19,806,218		(37,646,716	)		(9,457,027	)

INCOME TAX BENEFIT		(3,717,674	)		-			-		-			(3,717,674	)
NET INCOME (LOSS)		(5,739,353	)		17,840,498			19,806,218		(37,646,716	)		(5,739,353	)
Preferred stock dividends		3,898,857			-			-		-			3,898,857
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(9,638,210	)	$	17,840,498		$	19,806,218	$	(37,646,716	)	$	(9,638,210	)

Schedule of condensed consolidating statements of cash flows

For the three months ended June 30, 2018	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(57,106	)	$	15,301,219		$	9,581,392		$	(24,882,611	)	$	(57,106	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(14,188,961	)		(10,693,650	)		-			24,882,611			-
Changes in fair value of life insurance policies		-			(4,693,656	)		(9,879,519	)		-			(14,573,175	)
Amortization of deferred financing and issuance costs		2,139,018			-			263,755			-			2,402,773
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			(600,000	)		(14,132,270	)		-			(14,732,270	)
Other assets		(59,942,967	)		(41,271,719	)		346,531			99,135,390			(1,732,765	)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		471,218			(68,313	)		139,185			-			542,090
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(71,578,798	)		(42,026,119	)		(13,680,926	)		99,135,390			(28,150,453	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			(15,548,000	)		(14,700,939	)		-			(30,248,939	)
Carrying value of matured life insurance policies		-			1,313,885			4,834,464			-			6,148,349
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			(14,234,115	)		(9,866,475	)		-			(24,100,590	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(29,080,815	)		-			(29,080,815	)
Proceeds from issuance of L Bonds		60,536,446			-			-			-			60,536,446
Payments for redemption and issuance of L Bonds		(13,710,821	)		-			-			-			(13,710,821	)
Proceeds from issuance of preferred stock		14,372,959			-			-			-			14,372,959
Payments for issuance of preferred stock		(984,599	)		-			-			-			(984,599	)
Payments for redemption of preferred stock		(1,212,690	)		-			-			-			(1,212,690	)
Preferred stock dividends		(4,338,487	)		-			-			-			(4,338,487	)
Issuance of member capital		-			57,296,366			41,839,024			(99,135,390	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		54,662,808			57,296,366			12,758,209			(99,135,390	)		25,581,993

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(16,915,990	)		1,036,132			(10,789,192	)		-			(26,669,050	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		139,933,398			5,158,970			12,672,795			-			157,765,163

END OF THE PERIOD	$	123,017,408		$	6,195,102		$	1,883,603		$	-		$	131,096,113

For the three months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(5,694,251	)	$	4,856,818		$	5,509,653		$	(10,366,471	)	$	(5,694,251	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(3,124,692	)		(7,241,779	)		-			10,366,471			-
Changes in fair value of life insurance policies		-			(134,399	)		(15,101,103	)		-			(15,235,502	)
Amortization of deferred financing and issuance costs		926,816			28,964			542,168			-			1,497,948
Deferred income taxes		(3,717,174	)		-			-			-			(3,717,174	)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			600,000			1,405,000			-			2,005,000
Other assets		(32,646,205	)		(23,493,280	)		316,604			55,878,537			55,656
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		1,974,991			(1,405,114	)		830,967			-			1,400,844
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(42,280,515	)		(26,788,790	)		(6,496,711	)		55,878,537			(19,687,479	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			-			(19,432,338	)		-			(19,432,338	)
Carrying value of matured life insurance policies		-			256,152			2,758,682			-			3,014,834
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			256,152			(16,673,656	)		-			(16,417,504	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(3,845,037	)		-			(3,845,037	)
Payments for issuance of senior debt		-			(1,076,118	)		-			-			(1,076,118	)
Payments for redemption of Series I Secured Notes		-			(4,348,372	)		-			-			(4,348,372	)
Proceeds from issuance of L Bonds		31,875,811			-			-			-			31,875,811
Payments for redemption and issuance of L Bonds		(15,025,566	)		-			-			-			(15,025,566	)
Issuance of common stock		4			-			-			-			4
Proceeds from issuance of preferred stock		34,301,747			-			-			-			34,301,747
Payments for issuance of preferred stock		(1,945,618	)		-			-			-			(1,945,618	)
Payments for redemption of preferred stock		(1,372,593	)		-			-			-			(1,372,593	)
Preferred stock dividends		(2,031,097	)		-			-			-			(2,031,097	)
Issuance of member capital		-			31,450,843			24,427,694			(55,878,537	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		45,802,688			26,026,353			20,582,657			(55,878,537	)		36,533,161

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,522,173			(506,285	)		(2,587,710	)		-			428,178

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		46,110,677			6,411,771			45,502,477			-			98,024,925

END OF THE PERIOD	$	49,632,850		$	5,905,486		$	42,914,767		$	-		$	98,453,103

For the six months ended June 30, 2018	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(9,235,646	)	$	21,395,612		$	15,467,797		$	(36,863,409	)	$	(9,235,646	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(19,305,559	)		(17,557,850	)		-			36,863,409			-
Changes in fair value of life insurance policies		-			(6,205,841	)		(25,012,928	)		-			(31,218,769	)
Amortization of deferred financing and issuance costs		4,138,451			-			527,510			-			4,665,961
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			700,000			(11,076,239	)		-			(10,376,239	)
Other assets		(79,448,344	)		(65,365,920	)		521,297			142,483,761			(1,809,206	)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		1,161,452			19,255			(2,183,825	)		-			(1,003,118	)
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(102,689,646	)		(67,014,744	)		(21,756,388	)		142,483,761			(48,977,017	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			(15,548,000	)		(40,000,764	)		-			(55,548,764	)
Carrying value of matured life insurance policies		-			1,954,430			9,277,213			-			11,231,643
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			(13,593,570	)		(30,723,551	)		-			(44,317,121	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(32,135,150	)					(32,135,150	)
Proceeds from issuance of L Bonds		97,197,545			-			-			-			97,197,545
Payments for redemption and issuance of L Bonds		(25,956,269	)		-			-			-			(25,956,269	)
Proceeds from issuance of preferred stock		56,238,128			-			-						56,238,128
Payments for issuance of preferred stock		(4,142,294	)		-			-						(4,142,294	)
Payments for redemption of preferred stock		(1,539,914	)		-			-						(1,539,914	)
Preferred stock dividends		(8,042,971	)		-			-			-			(8,042,971	)
Issuance of member capital		-			75,949,383			66,534,378			(142,483,761	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		113,754,225			75,949,383			34,399,228			(142,483,761	)		81,619,075

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		11,064,579			(4,658,931	)		(18,080,711	)		-			(11,675,063	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		111,952,829			10,854,033			19,964,314			-			142,771,176

END OF THE PERIOD	$	123,017,408		$	6,195,102		$	1,883,603		$	-		$	131,096,113

For the six months ended June 30, 2017	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiary			Eliminations			Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(5,739,353	)	$	17,840,498		$	19,806,218		$	(37,646,716	)	$	(5,739,353	)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries		(16,340,730	)		(21,305,986	)		-			37,646,716			-
Changes in fair value of life insurance policies		-			(1,193,821	)		(27,925,514	)		-			(29,119,335	)
Amortization of deferred financing and issuance costs		2,855,809			74,384			1,233,958			-			4,164,151
Deferred income taxes, net		(3,717,674	)		-			-			-			(3,717,674	)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable		-			-			(1,625,000	)		-			(1,625,000	)
Other assets		(27,138,260	)		(55,534,365	)		1,842,210			83,082,776			2,252,361
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses		3,428,613			(1,563,526	)		1,081,963			-			2,947,050
NET CASH FLOWS USED IN OPERATING ACTIVITIES		(46,651,595	)		(61,682,816	)		(5,586,165	)		83,082,776			(30,837,800	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies		-			-			(42,121,671	)		-			(42,121,671	)
Carrying value of matured life insurance policies		-			751,576			4,632,232			-			5,383,808
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES		-			751,576			(37,489,439	)		-			(36,737,863	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt		-			-			(7,099,537	)		-			(7,099,537	)
Payments for issuance of senior debt		-			(1,076,118	)		(114,294	)		-			(1,190,412	)
Payments for redemption of Series I Secured Notes		-			(9,798,261	)		-			-			(9,798,261	)
Proceeds from issuance of L Bonds		56,744,470			-			-			-			56,744,470
Payments for redemption and issuance of L Bonds		(39,197,163	)		-			-			-			(39,197,163	)
Redemption of common stock		(1,603,556	)		-			-			-			(1,603,556	)
Proceeds from issuance of preferred stock		61,480,941			-			-			-			61,480,941
Payments for issuance of preferred stock		(3,963,105	)		-			-			-			(3,963,105	)
Payments for redemption of preferred stock		(1,759,332	)		-			-			-			(1,759,332	)
Preferred stock dividends		(3,898,857	)		-			-			-			(3,898,857	)
Issuance of member capital		-			26,232,504			56,850,272			(83,082,776	)		-
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		67,803,398			15,358,125			49,636,441			(83,082,776	)		49,715,188

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		21,151,803			(45,573,115	)		6,560,837			-			(17,860,475	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD		28,481,047			51,478,601			36,353,930			-			116,313,578

END OF THE PERIOD	$	49,632,850		$	5,905,486		$	42,914,767		$	-		$	98,453,103

XML 51 R37.htm IDEA: XBRL DOCUMENT

Concentration (Tables)

6 Months Ended

Jun. 30, 2018

Concentration [Abstract]

Summary of the face value of insurance contracts

Life Insurance Company	June 30, 2018			December 31, 2017
John Hancock		14.71	%		15.57	%
AXA Equitable		11.39	%		11.88	%
Lincoln National		11.19	%		10.80	%

Summary of the number of insurance contracts

State of Residence	June 30, 2018			December 31, 2017
Florida		19.90	%		20.16	%
California		18.71	%		18.60	%

XML 52 R38.htm IDEA: XBRL DOCUMENT

Nature of Business and Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Nature of Business and Summary of Significant Accounting Policies (Textual)
Other assets	$ 10,841,567	$ 8,898,884
Life insurance policy acquisitions [Member]
Nature of Business and Summary of Significant Accounting Policies (Textual)
Other assets	0	0
Security deposits [Member]
Nature of Business and Summary of Significant Accounting Policies (Textual)
Other assets	$ 575,000	$ 575,000

XML 53 R39.htm IDEA: XBRL DOCUMENT

Restrictions on Cash (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Restrictions on Cash (Textual)
Restricted cash collection and payment accounts	$ 1,937,000	$ 19,967,000
Escrow account, balance	$ 4,714,000	$ 8,383,000

XML 54 R40.htm IDEA: XBRL DOCUMENT

Investment in Life Insurance Policies (Details)

6 Months Ended

Jun. 30, 2018

USD ($)

Policies

Lives

Smokers

Investment in Life Insurance Policies [Abstract]

Total portfolio face value of policy benefits

$ 1,849,079,000

Average face value per policy

1,831,000

Average face value per insured life

$ 2,052,000

Average age of insured (yrs.)

81 years 10 months 25 days

^[1]

Average life expectancy estimate (yrs.)

6 years 9 months 18 days

^[1]

Total number of policies | Policies

1,010

Number of unique lives | Lives

901

Demographics

76% Males; 24% Females

Number of smokers | Smokers

Largest policy as % of total portfolio face value

0.72%

Average policy as % of total portfolio

0.10%

Average annual premium as % of face value

3.11%

[1]	Averages presented in the table are weighted averages.

XML 55 R41.htm IDEA: XBRL DOCUMENT

Investment in Life Insurance Policies (Details 1)	Jun. 30, 2018 USD ($) Policies	Dec. 31, 2017 USD ($) Policies
Summary of policies according to estimated life expectancy dates
Number of Policies, 2018 \| Policies	4	8
Number of Policies, 2019 \| Policies	35	48
Number of Policies, 2020 \| Policies	80	87
Number of Policies, 2021 \| Policies	97	98
Number of Policies, 2022 \| Policies	119	90
Number of Policies, 2023 \| Policies	102	93
Number of Policies, 2024 \| Policies	111	100
Number of Policies, Thereafter \| Policies	462	374
Number of Policies, Totals \| Policies	1,010	898
Estimated Fair Value, 2018	$ 3,328,000	$ 4,398,000
Estimated Fair Value, 2019	44,532,000	63,356,000
Estimated Fair Value, 2020	77,686,000	79,342,000
Estimated Fair Value, 2021	104,685,000	96,154,000
Estimated Fair Value, 2022	100,279,000	85,877,000
Estimated Fair Value, 2023	84,874,000	69,467,000
Estimated Fair Value, 2024	83,602,000	77,638,000
Estimated Fair Value, Thereafter	227,077,000	174,295,000
Estimated Fair Value, Totals	726,063,000	650,527,000
Face Value, 2018	3,375,000	4,689,000
Face Value, 2019	55,472,000	83,720,000
Face Value, 2020	115,736,000	127,373,000
Face Value, 2021	176,820,000	170,695,000
Face Value, 2022	190,208,000	181,120,000
Face Value, 2023	205,340,000	175,458,000
Face Value, 2024	232,258,000	228,188,000
Face Value, Thereafter	869,870,000	704,905,000
Face Value, Totals	$ 1,849,079,000	$ 1,676,148,000

XML 56 R42.htm IDEA: XBRL DOCUMENT

Investment in Life Insurance Policies (Details 2) - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Schedule of reconciliation of gain on life insurance policies

Change in estimated probabilistic cash flows

^[1]

$ 17,409,000

$ 13,431,000

$ 36,414,000

$ 27,465,000

Unrealized gain on acquisitions

^[2]

5,795,000

8,044,000

12,769,000

18,646,000

Premiums and other annual fees

(12,708,000)

(11,859,000)

(24,906,000)

(22,949,000)

Change in discount rates

^[3]

4,143,000

Change in life expectancy evaluation

^[4]

(95,000)

(6,662,000)

(4,963,000)

(8,604,000)

Face value of matured policies

27,623,000

10,935,000

42,127,000

29,910,000

Fair value of matured policies

(14,684,000)

(6,736,000)

(24,233,000)

(17,915,000)

Gain on life insurance policies, net

$ 23,340,000

$ 11,296,000

$ 37,208,000

$ 30,696,000

[1]	Change in fair value of expected future cash flows relating to our investment in life insurance policies that are not specifically attributable to changes in life expectancy, discount rate or policy maturity events.
[2]	Gain resulting from fair value in excess of transaction price for policies acquired during the reporting period.
[3]	The discount rate of 10.45% as of June 30, 2018 remained unchanged from both the prior quarter and year end dates. The discount rate of 10.81% as of June 30, 2017 reflected a decrease from the 10.96% rate used at both the preceding quarter and year end dates.
[4]	The change in fair value due to updating life expectancy estimates on certain life insurance policies in our portfolio.

XML 57 R43.htm IDEA: XBRL DOCUMENT

Investment in Life Insurance Policies (Details 3)	Jun. 30, 2018 USD ($)
Premiums [Member]
Schedule of estimated premium payments and servicing fees
Six months ending December 31, 2018	$ 27,358,000
2019	63,323,000
2020	73,758,000
2021	84,700,000
2022	95,964,000
2023	107,289,000
Total	452,392,000
Servicing [Member]
Schedule of estimated premium payments and servicing fees
Six months ending December 31, 2018	677,000
2019	1,355,000
2020	1,355,000
2021	1,355,000
2022	1,355,000
2023	1,355,000
Total	7,452,000
Premiums and Servicing Fees [Member]
Schedule of estimated premium payments and servicing fees
Six months ending December 31, 2018	28,035,000
2019	64,678,000
2020	75,113,000
2021	86,055,000
2022	97,319,000
2023	108,644,000
Total	$ 459,844,000

XML 58 R44.htm IDEA: XBRL DOCUMENT

Investment in Life Insurance Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Investment in Life Insurance Policies (Textual)
Life insurance policies face value			$ 1,000,000
Benefits recognized from insurance policies	$ 27,623,000	$ 10,935,000	42,127,000	$ 29,910,000
Carrying value of life insurance policies	6,148,000	3,015,000	11,232,000	5,384,000
Realized gains from life insurance policies	$ 21,475,000	$ 7,920,000	$ 30,895,000	$ 24,526,000
Discount rate applied to portfolio	10.45%	10.81%	10.45%	10.81%	10.96%

XML 59 R45.htm IDEA: XBRL DOCUMENT

Fair Value Definition and Hierarchy (Details) - USD ($)	3 Months Ended		6 Months Ended
Fair Value Definition and Hierarchy (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule of reconciliation of investments in life insurance policies
Beginning balance	$ 687,389,000	$ 545,397,000	$ 650,527,000	$ 511,192,000
Purchases	30,249,000	19,432,000	55,549,000	42,122,000
Maturities (initial cost basis)	(6,148,000)	(3,015,000)	(11,232,000)	(5,384,000)
Net change in fair value	14,573,000	15,236,000	31,219,000	29,120,000
Ending balance	$ 726,063,000	$ 577,050,000	$ 726,063,000	$ 577,050,000

XML 60 R46.htm IDEA: XBRL DOCUMENT

Fair Value Definition and Hierarchy (Details 1) - Life insurance policies [Member] - USD ($)

6 Months Ended

12 Months Ended

Jun. 30, 2018

Dec. 31, 2017

Summary of inputs utilized in estimating fair value of portfolio life insurance policies

Weighted-average age of insured, years

^[1]

81 years 10 months 25 days

81 years 8 months 12 days

Weighted-average life expectancy, months

^[1]

82 years

82 years 4 months 24 days

Average face amount per policy

$ 1,831,000

$ 1,867,000

Discount rate

10.45%

[1]	Weighted-average by face amount of policy benefits

XML 61 R47.htm IDEA: XBRL DOCUMENT

Fair Value Definition and Hierarchy (Details 2) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Minus 8 months [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	$ 96,387,000	$ 86,391,000
Minus 4 months [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	47,837,000	42,886,000
Plus 4 months [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	(47,457,000)	(42,481,000)
Plus 8 months [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	(94,194,000)	(84,238,000)
Minus 2% [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	75,047,000	68,117,000
Minus 1% [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	35,898,000	32,587,000
Plus 1% [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	(33,001,000)	(29,964,000)
Plus 2% [Member]
Summary of change in fair value of the investment in life insurance policies
Change in fair value of the investment in life insurance policies	$ (63,412,000)	$ (57,583,000)

XML 62 R48.htm IDEA: XBRL DOCUMENT

Fair Value Definition and Hierarchy (Details 3)	6 Months Ended
Fair Value Definition and Hierarchy (Details 3)	Jun. 30, 2018 $ / shares shares
Summary of outstanding warrants
Warrants issued	16,000
September 2014 [Member]
Summary of outstanding warrants
Month issued	Sep. 30, 2014
Warrants issued	16,000
Fair value per share \| $ / shares	$ 1.26
Risk free rate	1.85%
Volatility	17.03%
Term	5 years

XML 63 R49.htm IDEA: XBRL DOCUMENT

Fair Value Definition and Hierarchy (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value Definition and Hierarchy (Textual)
Description for change in discount factor	If the life expectancy estimates were increased or decreased by four and eight months on each outstanding policy, and the discount rates were increased or decreased by 1% and 2%, with all other variables held constant.
Estimated fair value of L Bonds	$ 534,302,000
Debt instruments face value	$ 541,680,000
Weighted-average market interest rate	6.78%
Secured loan outstanding balance	$ 1,914,000
Loan loss reserve	$ 1,908,000
Carrying value of the senior credit facility interest margin, description	12-Month LIBOR
Secured MCA advances, net of loan loss reserve	$ 1,345,000	$ 1,662,000
Description of life insurance policies	For life insurance policies with face amounts greater than $1 million and that are not pledged under any senior credit facility (approximately 18.4% of our portfolio by face amount of policy benefits) we attempt to update the life expectancy estimates on a continuous rotating three year cycle. For life insurance policies that are pledged under the LNV senior credit facility (approximately 73.1% of our portfolio by face amount of policy benefits) we are presently required to update the life expectancy estimates every two years beginning from the date of the amended facility. For the remaining small face insurance policies (i.e., a policy with $1 million in face value benefits or less) we may employ a range of methods and timeframes to update life expectancy estimates.

XML 64 R50.htm IDEA: XBRL DOCUMENT

Credit Facility - Autobahn Funding Company LLC (Details) $ in Millions	Sep. 12, 2017 USD ($)
Credit Facility - Autobahn Funding Company LLC (Textual)
Senior credit facility	$ 105

XML 65 R51.htm IDEA: XBRL DOCUMENT

Credit Facility - LNV Corporation (Details) - USD ($)	1 Months Ended	6 Months Ended
Credit Facility - LNV Corporation (Details) - USD ($)	Sep. 27, 2017	Jun. 30, 2018	Dec. 31, 2017
Credit Facility - LNV Corporation (Textual)
Senior credit facility	$ 300,000,000
Maturity date	Sep. 27, 2029
Interest rate, description	Interest will accrue on amounts borrowed under the Amended and Restated Loan Agreement at an annual interest rate, determined as of each date of borrowing or quarterly if there is no borrowing, equal to (A) the greater of 12-month LIBOR or the federal funds rate (as defined in the agreement) plus one-half of one percent per annum, plus (B) 7.50% per annum.
Effective interest rate		10.19%
Outstanding amount of credit facility		$ 190,389,000	$ 222,525,000
Portfolio pledged, percentage		73.10%

XML 66 R52.htm IDEA: XBRL DOCUMENT

Series I Secured Notes (Details)	Sep. 08, 2017 USD ($)
Series I Secured Notes (Textual)
Redeemed aggregate value	$ 6,815,000

XML 67 R53.htm IDEA: XBRL DOCUMENT

L Bonds (Details) - Renewable Secured Debentures [Member]	Jun. 30, 2018 USD ($)
Contractual Maturities
Six months ending December 31, 2018	$ 60,612,000
2019	150,617,000
2020	114,594,000
2021	65,293,000
2022	39,713,000
2023	36,818,000
Thereafter	66,655,000
Total	534,302,000
Unamortization of Deferred Financing Costs
Six months ending December 31, 2018	312,000
2019	3,024,000
2020	4,050,000
2021	2,860,000
2022	1,888,000
2023	1,984,000
Thereafter	3,942,000
Total	$ 18,060,000

XML 68 R54.htm IDEA: XBRL DOCUMENT

L Bonds (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
L Bonds (Details Textual) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 01, 2017	Jan. 31, 2015
L Bonds (Textual)
Debentures offer for sale	$ 541,680,000		$ 541,680,000
Weighted-average market interest rate	6.78%		6.78%
Renewable Secured Debentures [Member]
L Bonds (Textual)
Debentures offer for sale						$ 1,000,000,000	$ 1,000,000,000
Description of interest payment			Interest is payable monthly or annually depending on the election of the investor.
Weighted-average market interest rate	7.15%		7.15%		7.29%
Amount outstanding under L bonds	$ 534,302,000		$ 534,302,000		$ 461,427,000
Amortization of deferred issuance costs	$ 2,139,000	$ 927,000	4,138,000	$ 2,856,000
Future expected amortization of deferred financing costs			$ 18,060,000
Amortization period of deferred financing cost			7 years

XML 69 R55.htm IDEA: XBRL DOCUMENT

Series A Convertible Preferred Stock (Details) - Series A Convertible Preferred Stock [Member] - USD ($)		15 Months Ended
	Oct. 09, 2017	Sep. 30, 2012	Jun. 30, 2018
Series A Convertible Preferred Stock (Textual)
Preferred stock, liquidation preference per share		$ 7.50
Series A preferred stock shares sold for cash		3,278,000
Consideration received on sale of Series A preferred stock		$ 24,582,000
Cumulative dividends rate, percentage		10.00%
Aggregate shares of common stock, warrants			416,000
Exercise price			$ 12.50
Redemption payment, per share	$ 8.25

XML 70 R56.htm IDEA: XBRL DOCUMENT

Redeemable Preferred Stock (Details) - Redeemable Preferred Stock [Member]		1 Months Ended
	Mar. 31, 2017 USD ($) shares	Nov. 30, 2015 Tradingdays $ / shares shares
Redeemable Preferred Stock (Textual)
Company offering shares of convertible redeemable preferred stock \| shares		100,000
Offering price of series RPS		$ 1,000
Dividends rate of convertible redeemable preferred stock		7.00%
Redeemable preferred stock par value per share		$ 1,000
Number of trading days \| Tradingdays		20
Minimum conversion price		$ 15
Preferred stock redemption, percentage		15.00%
Redeemable preferred stock, shares issued \| shares	99,127
Aggregate gross consideration \| $	$ 99,127,000
Selling costs related to shares \| $	$ 7,019,000

XML 71 R57.htm IDEA: XBRL DOCUMENT

Series 2 Redeemable Preferred Stock (Details) - Series 2 Redeemable Preferred Stock [Member]		1 Months Ended
	Feb. 14, 2017 Tradingdays $ / shares shares	Apr. 30, 2018 USD ($) shares
Series 2 Redeemable Preferred Stock (Textual)
Public offering, shares \| shares	150,000
Offering price of RPS 2, per share	$ 1,000
Dividend rate, per annum	7.00%
Liquidation preference value, per share	$ 1,000
Number of trading days \| Tradingdays	20
Minimum conversion price	$ 12.75
Preferred stock redemption, percentage	10.00%
Preferred stock redemption, terms	We may, at our option, call and redeem shares of RPS 2 at a price equal to their liquidation preference (subject to a minimum redemption price, in the event of redemptions occurring less than one year after issuance, of 107% of the stated value of the shares being redeemed).
Number of shares sold \| shares		149,979
Aggregate gross consideration \| $		$ 149,979,000
Selling costs related to shares \| $		$ 10,284,000

XML 72 R58.htm IDEA: XBRL DOCUMENT

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Taxes [Abstract]
Statutory federal income tax (benefit)	$ (12,000)	$ (3,200,000)	$ (1,939,000)	$ (3,215,000)
State income taxes (benefit), net of federal benefit	10,000	(607,000)	(692,000)	(609,000)
Change in valuation allowance	(36,000)		2,568,000
Other permanent differences	38,000	90,000	63,000	106,000
Total income tax expense (benefit)		$ (3,717,174)		$ (3,717,674)

XML 73 R59.htm IDEA: XBRL DOCUMENT

Income Taxes (Details 1) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Deferred tax assets:
Note receivable from related party	$ 1,437,000	$ 1,437,000
Net operating loss carryforwards	9,787,000	9,995,000
Other assets	1,487,000	1,724,000
Subtotal	12,711,000	13,156,000
Valuation allowance	(8,954,000)	(6,386,000)
Deferred tax assets	3,757,000	6,770,000
Deferred tax liabilities:
Investment in life insurance policies	(3,651,000)	(6,630,000)
Other liabilities	(106,000)	(140,000)
Net deferred tax asset(liability)

XML 74 R60.htm IDEA: XBRL DOCUMENT

Income Taxes (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
Income Taxes (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Income Taxes (Textual)
Current income tax liability	$ 0	$ 0
Valuation allowance	8,954,000	6,386,000
Federal net operating loss carryforwards	$ 34,052,000	$ 34,775,000
Net operating loss carryforwards expiration date	Dec. 31, 2031
Future utilization of net operating loss carryforwards, description	Future utilization of NOL carryforwards is subject to limitations under Section 382 of the Internal Revenue Code. This section generally relates to a more than 50 percent change in ownership over a three-year period.

XML 75 R61.htm IDEA: XBRL DOCUMENT

Common Stock (Details) - Initial Public Offering [Member] - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended
	Sep. 30, 2014	Jun. 30, 2018
Common Stock (Textual)
Issuance of common stock, shares	800,000
Common stock, par value	$ 12.50
Net proceeds	$ 8.6
Exercise price		$ 15.63
Warrants issued		16,000
Warrants term		1 year 3 months 19 days

XML 76 R62.htm IDEA: XBRL DOCUMENT

Stock Incentive Plan (Details) - shares	6 Months Ended	12 Months Ended
Stock Incentive Plan (Details) - shares	Jun. 30, 2018	Dec. 31, 2017
Stock Option [Member]
Outstanding stock options:
Beginning Balance	1,636,948	1,582,399
Granted during the year	104,050	428,599
Vested during the year
Exercised during the year	(23,834)	(126,498)
Forfeited during the year	(38,083)	(247,552)
Ending Balance	1,679,081	1,636,948
Vesteddont Use [Member]
Outstanding stock options:
Beginning Balance	857,192	738,065
Granted during the year	4,850	61,099
Vested during the year	235,424	327,061
Exercised during the year	(23,834)	(126,498)
Forfeited during the year	(12,582)	(142,535)
Ending Balance	1,061,050	857,192
Un-vested [Member]
Outstanding stock options:
Beginning Balance	779,756	844,334
Granted during the year	99,200	367,500
Vested during the year	(235,424)	(327,061)
Exercised during the year
Forfeited during the year	(25,501)	(105,017)
Ending Balance	618,031	779,756

XML 77 R63.htm IDEA: XBRL DOCUMENT

Stock Incentive Plan (Details 1) - Stock Appreciation Rights [Member] - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Outstanding Stock Appreciation Rights:
Beginning Balance	342,972	239,735
Granted during the year	64,050	104,987
Vested year-to-date
Forfeited during the year		(1,750)
Ending Balance	407,022	342,972
Vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance	189,053	106,608
Granted during the year		13,001
Vested year-to-date	25,699	69,444
Forfeited during the year
Ending Balance	214,752	189,053
Un-vested [Member]
Outstanding Stock Appreciation Rights:
Beginning Balance	153,919	133,127
Granted during the year	64,050	91,986
Vested year-to-date	(25,699)	(69,444)
Forfeited during the year		(1,750)
Ending Balance	192,270	153,919

XML 78 R64.htm IDEA: XBRL DOCUMENT

Stock Incentive Plan (Details 2) - $ / shares	6 Months Ended	12 Months Ended
Stock Incentive Plan (Details 2) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Vested [Member] \| SARs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	214,752	189,053
Weighted-Average Exercise Price	$ 8.61	$ 8.54
Weighted-Average Remaining Life (years)	5 years 4 months 28 days	5 years 10 months 10 days
Fair Value at Grant Date	$ 1.89	$ 1.90
Vested [Member] \| Total Vested [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	1,275,802	1,046,245
Weighted-Average Exercise Price	$ 8.28	$ 8.14
Weighted-Average Remaining Life (years)	5 years 9 months 22 days	6 years 1 month 9 days
Fair Value at Grant Date	$ 1.83	$ 1.78
Vested [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	1,061,050	857,192
Weighted-Average Exercise Price	$ 8.21	$ 8.05
Weighted-Average Remaining Life (years)	5 years 10 months 25 days	6 years 2 months 1 day
Fair Value at Grant Date	$ 1.82	$ 1.76
Unvested [Member] \| Total Unvested [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	810,301	933,675
Weighted-Average Exercise Price	$ 9.16	$ 9.21
Weighted-Average Remaining Life (years)	6 years 11 months 4 days	7 years 3 months 19 days
Fair Value at Grant Date	$ 2.18	$ 2.15
Unvested [Member] \| SARs Unvested [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	192,270	153,919
Weighted-Average Exercise Price	$ 8.93	$ 9.16
Weighted-Average Remaining Life (years)	6 years 1 month 9 days	6 years 2 months 27 days
Fair Value at Grant Date	$ 2.10	$ 2.02
Unvested [Member] \| Stock Options Unvested [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding	618,031	779,756
Weighted-Average Exercise Price	$ 9.22	$ 9.21
Weighted-Average Remaining Life (years)	7 years 2 months 5 days	7 years 6 months
Fair Value at Grant Date	$ 2.21	$ 2.17

XML 79 R65.htm IDEA: XBRL DOCUMENT

Stock Incentive Plan (Details Textual)	3 Months Ended		6 Months Ended
Stock Incentive Plan (Details Textual)	Jun. 30, 2018 USD ($) $ / pure shares	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / pure shares	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Stock Options [Member]
Stock Incentive Plan (Textual)
Outstanding stock options	1,679,000		1,679,000
Number of options vested			1,061,000
Options exercise price description			The options were issued with an exercise price between $6.35 and $10.38 for those beneficially owning more than 10% of our common stock, and between $4.83 and $11.00 for all others, which is equal to the market price of the shares on the date of grant.
Expected volatility rate			20.70%
Forfeited			723,000
Exercised during the year			178,000
Unrecognized compensation expense related to un-vested options \| $	$ 933,000		$ 933,000
Unrecognized compensation expense related to un-vested options, period of recognition			3 years
Compensation expense remaining vesting in 2018 \| $			$ 304,000
Compensation expense remaining vesting in 2019 \| $			426,000
Compensation expense remaining vesting in 2020 \| $			183,000
Compensation expense remaining vesting in 2021 \| $			$ 20,000
Expiry award grant term			10 years
2013 Stock Incentive Plan [Member]
Stock Incentive Plan (Textual)
Common stock options authorized	6,000,000		6,000,000
Common stock options available for issuance	3,735,564		3,735,564
Stock Appreciation Rights [Member]
Stock Incentive Plan (Textual)
Outstanding stock options	407,000		407,000
Number of options vested			215,000
Options exercise price description			The strike price of the SARs was between $7.84 and $10.38, which was equal to the market price of the common stock at the date of issuance.
Strike price	7.68		7.68
Other accrued expenses \| $	$ 483,000		$ 483,000		$ 551,000
Employee compensation and benefits expense \| $	$ (118,000)	$ 23,000	$ (68,000)	$ 312,000

XML 80 R66.htm IDEA: XBRL DOCUMENT

Other Expenses (Details) - USD ($)	3 Months Ended		6 Months Ended
Other Expenses (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Expenses [Abstract]
Contract Labor	$ 305,000	$ 87,000	$ 605,000	$ 181,000
Marketing	509,000	649,000	930,000	1,201,000
Information Technology	366,000	351,000	866,000	682,000
Servicing and Facility Fees	468,000	405,000	862,000	686,000
Travel and Entertainment	230,000	283,000	446,000	518,000
Insurance and Regulatory	352,000	393,000	719,000	718,000
Charitable Contributions		89,000		420,000
Provision for MCA Advances	94,000	878,000	94,000	878,000
General and Administrative	509,000	626,000	1,051,000	1,257,000
Total Other Expenses	$ 2,832,777	$ 3,761,098	$ 5,573,354	$ 6,541,420

XML 81 R67.htm IDEA: XBRL DOCUMENT

Commitments (Details)	Jun. 30, 2018 USD ($)
Summary of minimum lease payments under amendment lease
Six months ending December 31, 2018	$ 133,000
2019	275,000
2020	284,000
2021	293,000
2022	302,000
2023	311,000
Thereafter	593,000
Total	$ 2,191,000

XML 82 R68.htm IDEA: XBRL DOCUMENT

Commitments (Details Textual)		3 Months Ended		6 Months Ended
Commitments (Details Textual)	Sep. 01, 2015 ft²	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Commitments (Textual)
Description of lessor leasing arrangements	We entered into an amendment to our original lease that expanded the leased space to 17,687 square feet and extended the term through October 2025.
Office space in square feet \| ft²	17,687
Lease term date	Oct. 31, 2025
Rent expenses \| $		$ 110,000	$ 110,000	$ 215,000	$ 223,000

XML 83 R69.htm IDEA: XBRL DOCUMENT

Guarantee of L Bonds (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
A S S E T S
Cash and cash equivalents	$ 124,444,804	$ 157,765,163	$ 114,421,491	$ 98,453,103	$ 98,024,925	$ 116,313,578
Restricted cash	6,651,309		28,349,685
Investment in life insurance policies, at fair value	726,063,244		650,527,353
Life insurance policy benefits receivable	27,035,000		16,658,761
Other assets	10,841,567		8,898,884
Investment in subsidiaries
TOTAL ASSETS	895,035,924		818,856,174
LIABILITIES
Senior credit facility with LNV Corporation	180,630,553		212,238,192
L Bonds	518,788,942		447,393,568
Accounts payable	2,626,283		6,394,439
Interest and dividends payable	16,936,725		15,427,509
Other accrued expenses	4,031,070		3,730,723
TOTAL LIABILITIES	723,013,573		685,184,431
STOCKHOLDERS' EQUITY
Member capital
Redeemable preferred stock and Series 2 redeemable preferred stock	88,997,278		92,840,243
Common stock	5,813		5,813
Accumulated deficit	(48,685,163)		(39,449,517)
TOTAL STOCKHOLDERS' EQUITY	172,022,351		133,671,743			$ 67,298,498
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	895,035,924		818,856,174
Parent [Member]
A S S E T S
Cash and cash equivalents	123,017,408		111,952,829
Restricted cash
Investment in life insurance policies, at fair value
Life insurance policy benefits receivable
Other assets	4,307,833		1,912,203
Investment in subsidiaries	577,018,061		480,659,789
TOTAL ASSETS	704,343,302		594,524,821
LIABILITIES
Senior credit facility with LNV Corporation
L Bonds	518,788,942		447,393,568
Accounts payable	580,162		1,434,623
Interest and dividends payable	11,449,184		10,296,584
Other accrued expenses	1,502,663		1,728,303
TOTAL LIABILITIES	532,320,951		460,853,078
STOCKHOLDERS' EQUITY
Member capital
Redeemable preferred stock and Series 2 redeemable preferred stock	220,701,701		173,115,447
Common stock	5,813		5,813
Accumulated deficit	(48,685,163)		(39,449,517)
TOTAL STOCKHOLDERS' EQUITY	172,022,351		133,671,743
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	704,343,302		594,524,821
Eliminations [Member]
A S S E T S
Cash and cash equivalents
Restricted cash
Investment in life insurance policies, at fair value
Life insurance policy benefits receivable
Other assets
Investment in subsidiaries	(1,075,242,171)		(895,895,001)
TOTAL ASSETS	(1,075,242,171)		(895,895,001)
LIABILITIES
Senior credit facility with LNV Corporation
L Bonds
Accounts payable
Interest and dividends payable
Other accrued expenses
TOTAL LIABILITIES
STOCKHOLDERS' EQUITY
Member capital	(1,075,242,171)		(895,895,001)
Redeemable preferred stock and Series 2 redeemable preferred stock
Common stock
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	(951,224,170)		(895,895,001)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	(1,075,242,171)		(895,895,001)
Guarantor Subsidiary [Member]
A S S E T S
Cash and cash equivalents	546,177		1,486,623
Restricted cash	5,648,925		9,367,410
Investment in life insurance policies, at fair value	70,892,773		51,093,362
Life insurance policy benefits receivable	800,000		1,500,000
Other assets	1,921,184		1,986,312
Investment in subsidiaries	498,224,110		415,235,212
TOTAL ASSETS	578,033,169		480,668,919
LIABILITIES
Senior credit facility with LNV Corporation
L Bonds
Accounts payable	738,894		844,899
Interest and dividends payable
Other accrued expenses	1,736,033		1,610,773
TOTAL LIABILITIES	2,474,927		2,455,672
STOCKHOLDERS' EQUITY
Member capital	575,558,242		478,213,247
Redeemable preferred stock and Series 2 redeemable preferred stock
Common stock
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	575,558,242		478,213,247
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	578,033,169		480,668,919
Non-Guarantor Subsidiaries [Member]
A S S E T S
Cash and cash equivalents	881,219		982,039
Restricted cash	1,002,384		18,982,275
Investment in life insurance policies, at fair value	655,170,471		599,433,991
Life insurance policy benefits receivable	26,235,000		15,158,761
Other assets	4,612,550		5,000,369
Investment in subsidiaries
TOTAL ASSETS	687,901,624		639,557,435
LIABILITIES
Senior credit facility with LNV Corporation	180,630,553		212,238,192
L Bonds
Accounts payable	1,307,227		4,114,917
Interest and dividends payable	5,487,541		5,130,925
Other accrued expenses	792,374		391,647
TOTAL LIABILITIES	188,217,695		221,875,681
STOCKHOLDERS' EQUITY
Member capital	499,683,929		417,681,754
Redeemable preferred stock and Series 2 redeemable preferred stock
Common stock
Accumulated deficit
TOTAL STOCKHOLDERS' EQUITY	499,683,929		417,681,754
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 687,901,624		$ 639,557,435

XML 84 R70.htm IDEA: XBRL DOCUMENT

Guarantee of L Bonds (Details 1) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Guarantee of L Bonds (Details 1) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
REVENUE
Gain on life insurance policies, net	$ 23,339,750	$ 11,296,266	$ 37,208,495	$ 30,696,086
Interest and other income	975,198	371,320	1,648,125	1,059,845
TOTAL REVENUE	24,314,948	11,667,586	38,856,620	31,755,931
EXPENSES
Interest expense	17,147,850	12,246,025	33,211,187	25,490,241
Employee compensation and benefits	3,235,699	3,741,299	6,978,368	6,904,360
Legal and professional fees	1,155,728	1,330,589	2,329,357	2,276,937
Other expenses	2,832,777	3,761,098	5,573,354	6,541,420
TOTAL EXPENSES	24,372,054	21,079,011	48,092,266	41,212,958
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(57,106)	(9,411,425)	(9,235,646)	(9,457,027)
EQUITY IN INCOME OF SUBSIDIARIES
NET INCOME (LOSS) BEFORE INCOME TAXES	(57,106)	(9,411,425)	(9,235,646)	(9,457,027)
INCOME TAX BENEFIT		(3,717,174)		(3,717,674)
NET INCOME (LOSS)	(57,106)	(5,694,251)	(9,235,646)	(5,739,353)	$ (20,632,223)
Preferred stock dividends	4,338,487	2,031,097	8,042,971	3,898,857
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	(4,395,593)	(7,725,348)	(17,278,617)	(9,638,210)
Eliminations [Member]
REVENUE
Gain on life insurance policies, net
Interest and other income		(159,426)		(253,470)
TOTAL REVENUE		(159,426)		(253,470)
EXPENSES
Interest expense		(26,176)		(67,195)
Employee compensation and benefits
Legal and professional fees
Other expenses		(133,250)		(186,275)
TOTAL EXPENSES		(159,426)		(253,470)
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES
EQUITY IN INCOME OF SUBSIDIARIES	(24,882,611)	(10,366,471)	(36,863,409)	(37,646,716)
NET INCOME (LOSS) BEFORE INCOME TAXES	(24,882,611)	(10,366,471)	(36,863,409)	(37,646,716)
INCOME TAX BENEFIT
NET INCOME (LOSS)	(24,882,611)	(10,366,471)	(36,863,409)	(37,646,716)
Preferred stock dividends
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	(24,882,611)	(10,366,471)	(36,863,409)	(37,646,716)
Parent [Member]
REVENUE
Gain on life insurance policies, net
Interest and other income	661,859	69,221	1,113,898	154,228
TOTAL REVENUE	661,859	69,221	1,113,898	154,228
EXPENSES
Interest expense	11,396,554	8,325,874	22,019,206	17,587,908
Employee compensation and benefits	1,414,360	2,109,562	3,337,093	4,038,357
Legal and professional fees	399,790	284,756	807,102	777,571
Other expenses	1,697,222	1,885,146	3,491,702	3,548,149
TOTAL EXPENSES	14,907,926	12,605,338	29,655,103	25,951,985
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	(14,246,067)	(12,536,117)	(28,541,205)	(25,797,757)
EQUITY IN INCOME OF SUBSIDIARIES	14,188,961	3,124,692	19,305,559	16,340,730
NET INCOME (LOSS) BEFORE INCOME TAXES	(57,106)	(9,411,425)	(9,235,646)	(9,457,027)
INCOME TAX BENEFIT		(3,717,174)		(3,717,674)
NET INCOME (LOSS)	(57,106)	(5,694,251)	(9,235,646)	(5,739,353)
Preferred stock dividends	4,338,487	2,031,097	8,042,971	3,898,857
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	(4,395,593)	(7,725,348)	(17,278,617)	(9,638,210)
Guarantor Subsidiary [Member]
REVENUE
Gain on life insurance policies, net	6,620,224	201,685	8,013,679	1,701,012
Interest and other income	17,798	163,384	26,524	235,285
TOTAL REVENUE	6,638,022	365,069	8,040,203	1,936,297
EXPENSES
Interest expense		391,061		677,415
Employee compensation and benefits	1,318,806	1,529,188	2,794,537	2,750,770
Legal and professional fees	234,740	179,461	466,390	440,549
Other expenses	476,907	650,320	941,514	1,533,051
TOTAL EXPENSES	2,030,453	2,750,030	4,202,441	5,401,785
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	4,607,569	(2,384,961)	3,837,762	(3,465,488)
EQUITY IN INCOME OF SUBSIDIARIES	10,693,650	7,241,779	17,557,850	21,305,986
NET INCOME (LOSS) BEFORE INCOME TAXES	15,301,219	4,856,818	21,395,612	17,840,498
INCOME TAX BENEFIT
NET INCOME (LOSS)	15,301,219	4,856,818	21,395,612	17,840,498
Preferred stock dividends
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	15,301,219	4,856,818	21,395,612	17,840,498
Non-Guarantor Subsidiaries [Member]
REVENUE
Gain on life insurance policies, net	16,719,526	11,094,581	29,194,816	28,995,074
Interest and other income	295,541	298,141	507,703	923,802
TOTAL REVENUE	17,015,067	11,392,722	29,702,519	29,918,876
EXPENSES
Interest expense	5,751,296	3,555,266	11,191,981	7,292,113
Employee compensation and benefits	502,533	102,549	846,738	115,232
Legal and professional fees	521,198	866,372	1,055,865	1,058,817
Other expenses	658,648	1,358,882	1,140,138	1,646,496
TOTAL EXPENSES	7,433,675	5,883,069	14,234,722	10,112,658
INCOME (LOSS) BEFORE EQUITY IN INCOME OF SUBSIDIARIES	9,581,392	5,509,653	15,467,797	19,806,218
EQUITY IN INCOME OF SUBSIDIARIES
NET INCOME (LOSS) BEFORE INCOME TAXES	9,581,392	5,509,653	15,467,797	19,806,218
INCOME TAX BENEFIT
NET INCOME (LOSS)	9,581,392	5,509,653	15,467,797	19,806,218
Preferred stock dividends
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 9,581,392	$ 5,509,653	$ 15,467,797	$ 19,806,218

XML 85 R71.htm IDEA: XBRL DOCUMENT

Guarantee of L Bonds (Details 2) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Guarantee of L Bonds (Details 2) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (57,106)	$ (5,694,251)	$ (9,235,646)	$ (5,739,353)	$ (20,632,223)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries
Changes in fair value of life insurance policies	(14,573,175)	(15,235,502)	(31,218,769)	(29,119,335)
Amortization of deferred financing and issuance costs	2,402,773	1,497,948	4,665,961	4,164,151
Deferred income taxes		(3,717,174)		(3,717,674)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(14,732,270)	2,005,000	(10,376,239)	(1,625,000)
Other assets	(1,732,765)	55,656	(1,809,206)	2,252,361
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses	542,090	1,400,844	(1,003,118)	2,947,050
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(28,150,453)	(19,687,479)	(48,977,017)	(30,837,800)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(30,248,939)	(19,432,338)	(55,548,764)	(42,121,671)
Carrying value of matured life insurance policies	6,148,349	3,014,834	11,231,643	5,383,808
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES	(24,100,590)	(16,417,504)	(44,317,121)	(36,737,863)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt	(29,080,815)	(3,845,037)	(32,135,150)	(7,099,537)
Payments for issuance of senior debt		(1,076,118)		(1,190,412)
Payments for redemption of Series I Secured Notes		(4,348,372)		(9,798,261)
Proceeds from issuance of L Bonds	60,536,446	31,875,811	97,197,545	56,744,470
Payments for redemption and issuance of L Bonds	(13,710,821)	(15,025,566)	(25,956,269)	(39,197,163)
Redemption of common stock				(1,603,556)
Issuance of common stock		(4)		1,603,556
Proceeds from issuance of preferred stock	14,372,959	34,301,747	56,238,128	61,480,941
Payments for issuance of preferred stock	(984,599)	(1,945,618)	(4,142,294)	(3,963,105)
Payments for redemption of preferred stock	(1,212,690)	(1,372,593)	(1,539,914)	(1,759,332)
Preferred stock dividends	(4,338,487)	(2,031,097)	(8,042,971)	(3,898,857)
Issuance of member capital
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	25,581,993	36,533,161	81,619,075	49,715,188
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(26,669,050)	428,178	(11,675,063)	(17,860,475)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD	124,444,804	98,453,103	124,444,804	98,453,103	114,421,491	$ 157,765,163	$ 98,024,925	$ 116,313,578
END OF THE PERIOD	124,444,804	98,453,103	124,444,804	98,453,103	114,421,491	157,765,163	98,024,925	116,313,578
Eliminations [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(24,882,611)	(10,366,471)	(36,863,409)	(37,646,716)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	24,882,611	10,366,471	36,863,409	37,646,716
Changes in fair value of life insurance policies
Amortization of deferred financing and issuance costs
Deferred income taxes
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	99,135,390	55,878,537	142,483,761	83,082,776
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses
NET CASH FLOWS USED IN OPERATING ACTIVITIES	99,135,390	55,878,537	142,483,761	83,082,776
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt
Payments for issuance of senior debt
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Redemption of common stock
Issuance of common stock
Proceeds from issuance of preferred stock
Payments for issuance of preferred stock
Payments for redemption of preferred stock
Preferred stock dividends
Issuance of member capital	(99,135,390)	(55,878,537)	(142,483,761)	(83,082,776)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(99,135,390)	(55,878,537)	(142,483,761)	(83,082,776)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD
END OF THE PERIOD
Parent [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(57,106)	(5,694,251)	(9,235,646)	(5,739,353)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	(14,188,961)	(3,124,692)	(19,305,559)	(16,340,730)
Changes in fair value of life insurance policies
Amortization of deferred financing and issuance costs	2,139,018	926,816	4,138,451	2,855,809
Deferred income taxes		(3,717,174)		(3,717,674)
(Increase) decrease in operating assets:
Life insurance policy benefits receivable
Other assets	(59,942,967)	(32,646,205)	(79,448,344)	(27,138,260)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses	471,218	1,974,991	1,161,452	3,428,613
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(71,578,798)	(42,280,515)	(102,689,646)	(46,651,595)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies
Carrying value of matured life insurance policies
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt
Payments for issuance of senior debt
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds	60,536,446	31,875,811	97,197,545	56,744,470
Payments for redemption and issuance of L Bonds	(13,710,821)	(15,025,566)	(25,956,269)	(39,197,163)
Redemption of common stock				(1,603,556)
Issuance of common stock		4
Proceeds from issuance of preferred stock	14,372,959	34,301,747	56,238,128	61,480,941
Payments for issuance of preferred stock	(984,599)	(1,945,618)	(4,142,294)	(3,963,105)
Payments for redemption of preferred stock	(1,212,690)	(1,372,593)	(1,539,914)	(1,759,332)
Preferred stock dividends	(4,338,487)	(2,031,097)	(8,042,971)	(3,898,857)
Issuance of member capital
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	54,662,808	45,802,688	113,754,225	67,803,398
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(16,915,990)	3,522,173	11,064,579	21,151,803
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD	123,017,408	49,632,850	123,017,408	49,632,850	111,952,829	139,933,398	46,110,677	28,481,047
END OF THE PERIOD	123,017,408	49,632,850	123,017,408	49,632,850	111,952,829	$ 139,933,398	$ 46,110,677	$ 28,481,047
Guarantor Subsidiary [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	15,301,219	4,856,818	21,395,612	17,840,498
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries	(10,693,650)	(7,241,779)	(17,557,850)	(21,305,986)
Changes in fair value of life insurance policies	(4,693,656)	(134,399)	(6,205,841)	(1,193,821)
Amortization of deferred financing and issuance costs		28,964		74,384
Deferred income taxes
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(600,000)	600,000	700,000
Other assets	(41,271,719)	(23,493,280)	(65,365,920)	(55,534,365)
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses	(68,313)	(1,405,114)	19,255	(1,563,526)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(42,026,119)	(26,788,790)	(67,014,744)	(61,682,816)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(15,548,000)		(15,548,000)
Carrying value of matured life insurance policies	1,313,885	256,152	1,954,430	751,576
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES	(14,234,115)	256,152	(13,593,570)	751,576
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt
Payments for issuance of senior debt		(1,076,118)		(1,076,118)
Payments for redemption of Series I Secured Notes		(4,348,372)		(9,798,261)
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Redemption of common stock
Issuance of common stock
Proceeds from issuance of preferred stock
Payments for issuance of preferred stock
Payments for redemption of preferred stock
Preferred stock dividends
Issuance of member capital	57,296,366	31,450,843	75,949,383	26,232,504
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	57,296,366	26,026,353	75,949,383	15,358,125
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,036,132	(506,285)	(4,658,931)	(45,573,115)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD	546,177		546,177		1,486,623
END OF THE PERIOD	546,177		546,177		1,486,623
Non-Guarantor Subsidiaries [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	9,581,392	5,509,653	15,467,797	19,806,218
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Equity of subsidiaries
Changes in fair value of life insurance policies	(9,879,519)	(15,101,103)	(25,012,928)	(27,925,514)
Amortization of deferred financing and issuance costs	263,755	542,168	527,510	1,233,958
Deferred income taxes
(Increase) decrease in operating assets:
Life insurance policy benefits receivable	(14,132,270)	1,405,000	(11,076,239)	(1,625,000)
Other assets	346,531	316,604	521,297	1,842,210
Increase (decrease) in operating liabilities:
Accounts payable and other accrued expenses	139,185	830,967	(2,183,825)	1,081,963
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(13,680,926)	(6,496,711)	(21,756,388)	(5,586,165)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in life insurance policies	(14,700,939)	(19,432,338)	(40,000,764)	(42,121,671)
Carrying value of matured life insurance policies	4,834,464	2,758,682	9,277,213	4,632,232
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES	(9,866,475)	(16,673,656)	(30,723,551)	(37,489,439)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings on (repayments of) senior debt	(29,080,815)	(3,845,037)	(32,135,150)	(7,099,537)
Payments for issuance of senior debt				(114,294)
Payments for redemption of Series I Secured Notes
Proceeds from issuance of L Bonds
Payments for redemption and issuance of L Bonds
Redemption of common stock
Issuance of common stock
Proceeds from issuance of preferred stock
Payments for issuance of preferred stock
Payments for redemption of preferred stock
Preferred stock dividends
Issuance of member capital	41,839,024	24,427,694	66,534,378	56,850,272
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	12,758,209	20,582,657	34,399,228	49,636,441
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(10,789,192)	$ (2,587,710)	(18,080,711)	$ 6,560,837
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
BEGINNING OF THE PERIOD	881,219		881,219		982,039
END OF THE PERIOD	$ 881,219		$ 881,219		$ 982,039

XML 86 R72.htm IDEA: XBRL DOCUMENT

Concentration (Details)	Jun. 30, 2018	Dec. 31, 2017
John Hancock [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	14.71%	15.57%
AXA Equitable [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	11.39%	11.88%
Lincoln National [Member]
Summary of the face value of insurance contracts with specific life insurance companies
Face value percentage of insurance policies with specific life insurance companies	11.19%	10.80%

XML 87 R73.htm IDEA: XBRL DOCUMENT

Concentration (Details 1)	Jun. 30, 2018	Dec. 31, 2017
Florida [Member]
Summary of the number of insurance contracts held in specific states exceeding 10% of the total face value held by the Company
Percentage of insurance policies held in specific states	19.90%	20.16%
California [Member]
Summary of the number of insurance contracts held in specific states exceeding 10% of the total face value held by the Company
Percentage of insurance policies held in specific states	18.71%	18.60%

XML 88 R74.htm IDEA: XBRL DOCUMENT

Concentration (Details Textual)	6 Months Ended	12 Months Ended
Concentration (Details Textual)	Jun. 30, 2018	Dec. 31, 2017
Concentrations (Textual)
Percentage of portfolio	10.00%	10.00%

XML 89 R75.htm IDEA: XBRL DOCUMENT

Subsequent Events (Details) - USD ($)	6 Months Ended
Subsequent Events (Details) - USD ($)	Jun. 30, 2018	Aug. 14, 2018	Aug. 10, 2018	Dec. 31, 2017
Subsequent Events (Textual)
Insurance benefits the policies	$ 400,000
Issued of L bonds	28,462,000
Issued of redeemable preferred stock
Policy benefit percentage
Trusts L Bonds bear interest	10.19%
Common stock, per share	$ 0.001			$ 0.001
Maturity date	Aug. 09, 2023
Subsequent Event [Member]
Subsequent Events (Textual)
Trusts L Bonds bear interest			7.50%
Subsequent Event [Member] \| Board of Directors [Member]
Subsequent Events (Textual)
Common stock, per share		$ 4.30
Payable in common stock cash		$ 25,000,000

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Delaware		26-2222607
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☒
		Emerging growth company	☐

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of June 30, 2018, and December 31, 2017	1
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017	2
	Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2018 and 2017	3
	Consolidated Statement of Changes in Stockholders’ Equity	5
	Notes to Condensed Consolidated Financial Statements	6
Item 1A.	Risk Factors	29
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 4.	Controls and Procedures	48

PART II. OTHER INFORMATION
Item 6.	Exhibits	49

SIGNATURES		50

	Three Months Ended June 30,							Six Months Ended June 30,
	2018		2017		Increase/ Decrease			2018		2017		Increase/ Decrease
Interest expense (including amortization of deferred financing costs) ⁽¹⁾	$	17,148,000	$	12,246,000	$	4,902,000		$	33,211,000	$	25,490,000	$	7,721,000
Employee compensation and benefits ⁽²⁾		3,236,000		3,741,000		(505,000	)		6,978,000		6,904,000		74,000
Legal and professional expenses ⁽³⁾		1,155,000		1,331,000		(176,000	)		2,330,000		2,278,000		52,000
Other expenses ⁽⁴⁾		2,833,000		3,761,000		(928,000	)		5,573,000		6,541,000		(968,000	)
Total expenses	$	24,372,000	$	21,079,000	$	3,293,000		$	48,092,000	$	41,213,000	$	6,879,000

	As of June 30, 2018					As of December 31, 2017
Issuer/Borrower	Principal Amount Outstanding		Weighted Average Interest Rate			Principal Amount Outstanding		Weighted Average Interest Rate
GWG Holdings, Inc. – L Bonds (see Note 8)	$	534,302,000		7.15	%	$	461,427,000		7.29	%
GWG DLP Funding IV, LLC – LNV senior credit facility (see Note 6)		190,389,000		10.19	%		222,525,000		9.31	%
Total	$	724,691,000		7.95	%	$	683,952,000		7.95	%

	June 30, 2018			December 31, 2017
	(unaudited)
A S S E T S
Cash and cash equivalents	$	124,444,804		$	114,421,491
Restricted cash		6,651,309			28,349,685
Investment in life insurance policies, at fair value		726,063,244			650,527,353
Life insurance policy benefits receivable		27,035,000			16,658,761
Other assets		10,841,567			8,898,884
TOTAL ASSETS	$	895,035,924		$	818,856,174

L I A B I L I T I E S & S T O C K H O L D E R S’ E Q U I T Y
LIABILITIES
Senior credit facility with LNV Corporation	$	180,630,553		$	212,238,192
L Bonds		518,788,942			447,393,568
Accounts payable		2,626,283			6,394,439
Interest and dividends payable		16,936,725			15,427,509
Other accrued expenses		4,031,070			3,730,723
TOTAL LIABILITIES		723,013,573			685,184,431

STOCKHOLDERS’ EQUITY

REDEEMABLE PREFERRED STOCK
(par value $0.001; shares authorized 100,000; shares outstanding 98,095 and 98,611; liquidation preference of $98,667,000 and $99,186,000 as of June 30, 2018 and December 31, 2017, respectively)		88,997,278			92,840,243
SERIES 2 REDEEMABLE PREFERRED STOCK
(par value $0.001; shares authorized 150,000; shares outstanding 148,705 and 88,709; liquidation preference of $149,573,000 and $89,208,000 as of June 30, 2018 and December 31, 2017, respectively)		131,704,423			80,275,204
COMMON STOCK
(par value $0.001: shares authorized 210,000,000; shares issued and outstanding 5,813,555 as of both June 30, 2018 and December 31, 2017)		5,813			5,813
Additional paid-in capital		-			-
Accumulated deficit		(48,685,163	)		(39,449,517	)
TOTAL STOCKHOLDERS’ EQUITY		172,022,351			133,671,743

TOTAL LIABILITIES & EQUITY	$	895,035,924		$	818,856,174

	Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
REVENUE
Gain on life insurance policies, net	$	23,339,750		$	11,296,266		$	37,208,495		$	30,696,086
Interest and other income		975,198			371,320			1,648,125			1,059,845
TOTAL REVENUE		24,314,948			11,667,586			38,856,620			31,755,931

EXPENSES
Interest expense		17,147,850			12,246,025			33,211,187			25,490,241
Employee compensation and benefits		3,235,699			3,741,299			6,978,368			6,904,360
Legal and professional fees		1,155,728			1,330,589			2,329,357			2,276,937
Other expenses		2,832,777			3,761,098			5,573,354			6,541,420
TOTAL EXPENSES		24,372,054			21,079,011			48,092,266			41,212,958

INCOME (LOSS) BEFORE INCOME TAXES		(57,106	)		(9,411,425	)		(9,235,646	)		(9,457,027	)
INCOME TAX EXPENSE (BENEFIT)		-			(3,717,174	)		-			(3,717,674	)

NET INCOME (LOSS)		(57,106	)		(5,694,251	)		(9,235,646	)		(5,739,353	)

Preferred stock dividends		4,338,487			2,031,097			8,042,971			3,898,857
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(4,395,593	)	$	(7,725,348	)	$	(17,278,617	)	$	(9,638,210	)
NET INCOME (LOSS) PER SHARE
Basic	$	(0.76	)	$	(1.34	)	$	(2.97	)	$	(1.69	)
Diluted	$	(0.76	)	$	(1.34	)	$	(2.97	)	$	(1.69	)

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,813,555			5,777,724			5,813,555			5,710,909
Diluted		5,813,555			5,777,724			5,813,555			5,710,909

	Preferred Stock			Preferred			Common			Common Stock			Additional Paid-in			Accumulated			Total
	Shares			Stock			Shares			(par)			Capital			Deficit			Equity
Balance, December 31, 2016		2,699,704		$	78,726,297			5,980,190		$	5,980		$	7,383,515		$	(18,817,294	)	$	67,298,498

Net income (loss)		-			-			-			-			-			(20,632,223	)		(20,632,223	)

Issuance of common stock		-			-			33,810			33			320,970			-			321,003

Redemption of common stock		-			-			(200,445	)		(200	)		(1,603,360	)		-			(1,603,560	)

Issuance of Series A preferred stock		71,237			498,659			-			-			-			-			498,659

Redemption of Series A preferred stock		(2,711,916	)		(20,199,792	)		-			-			-			-			(20,199,792	)

Issuance of redeemable preferred stock		129,622			122,933,106			-			-			(2,338,457	)		-			120,594,649

Redemption of redeemable preferred stock		(1,328	)		(1,327,776	)		-			-			-			-			(1,327,776	)

Preferred stock dividends		-			(8,925,807	)		-			-			(3,776,534	)		-			(12,702,341	)

Stock-based compensation		-			1,410,760			-			-			13,866			-			1,424,626
Balance, December 31, 2017		187,319		$	173,115,447			5,813,555		$	5,813		$	-		$	(39,449,517	)	$	133,671,743

Net income (loss)		-			-			-			-			-			(9,235,646	)		(9,235,646	)

Issuance of redeemable preferred stock		61,021			56,878,238			-			-			-			-			56,878,238

Redemption of redeemable preferred stock		(1,540	)		(1,539,914	)		-			-			-			-			(1,539,914	)

Preferred stock dividends		-			(8,042,971	)		-			-						-			(8,042,971	)

Stock-based compensation		-			290,901			-			-			-			-			290,901
Balance, June 30, 2018		246,800		$	220,701,701			5,813,555		$	5,813		$	-		$	(48,685,163	)	$	172,022,351

Years Ending December 31,	L Bonds
Six months ending December 31, 2018	$	60,612,000
2019		150,617,000
2020		114,594,000
2021		65,293,000
2022		39,713,000
2023		36,818,000
Thereafter		66,655,000
	$	534,302,000

	As of June 30, 2018			As of December 31, 2017
Total senior facility with LNV Corporation and other indebtedness
Face amount outstanding	$	190,389,000		$	222,525,000
Unamortized selling costs		(9,758,000	)		(10,287,000	)
Carrying amount	$	180,631,000		$	212,238,000

L Bonds:
Face amount outstanding	$	534,302,000		$	461,427,000
Subscriptions in process		2,547,000			1,560,000
Unamortized selling costs		(18,060,000	)		(15,593,000	)
Carrying amount	$	518,789,000		$	447,394,000

Portfolio Discount Rate	10%		12%		14%		16%		17%
Value of portfolio	$	741,839,000	$	676,034,000	$	620,015,000	$	571,903,000	$	550,346,000
Cash, cash equivalents and policy benefits receivable		158,131,000		158,131,000		158,131,000		158,131,000		158,131,000
Total assets		899,970,000		834,165,000		778,146,000		730,034,000		708,477,000
Senior credit facility		190,389,000		190,389,000		190,389,000		190,389,000		190,389,000
Net after senior credit facility		709,581,000		643,776,000		587,757,000		539,645,000		518,088,000
L Bonds		534,302,000		534,302,000		534,302,000		534,302,000		534,302,000
Net after L Bonds	$	175,279,000	$	109,474,000	$	53,455,000	$	5,343,000	$	(16,214,000	)
Impairment to L Bonds		No impairment		No impairment		No impairment		No Impairment		Impairment

Quarter End Date	Portfolio Face Amount ($)		12-Month Trailing Benefits Realized ($)		12-Month Trailing Premiums Paid ($)		12-Month Trailing Benefits/Premium Coverage Ratio
March 31, 2015	754,942,000		46,675,000		23,786,000		196.2		%
June 30, 2015		806,274,000		47,125,000		24,348,000		193.5	%
September 30, 2015		878,882,000		44,482,000		25,313,000		175.7	%
December 31, 2015		944,844,000		31,232,000		26,650,000		117.2	%
March 31, 2016		1,027,821,000		21,845,000		28,771,000		75.9	%
June 30, 2016		1,154,798,000		30,924,000		31,891,000		97.0	%
September 30, 2016		1,272,078,000		35,867,000		37,055,000		96.8	%
December 31, 2016		1,361,675,000		48,452,000		40,239,000		120.4	%
March 31, 2017		1,447,558,000		48,189,000		42,753,000		112.7	%
June 30, 2017		1,525,363,000		49,295,000		45,414,000		108.5	%
September 30, 2017		1,622,627,000		53,742,000		46,559,000		115.4	%
December 31, 2017		1,676,148,000		64,719,000		52,263,000		123.8	%
March 31, 2018		1,758,066,000		60,248,000		53,169,000		113.3	%
June 30, 2018		1,849,079,000		76,936,000		53,886,000		142.8	%

Non-GAAP Investment Cost Basis	As of June 30, 2018			As of December 31, 2017
GAAP fair value	$	726,063,000		$	650,527,000
Unrealized fair value gain ⁽¹⁾		(362,605,000	)		(331,386,000	)
Adjusted cost basis increase ⁽²⁾		365,886,000			325,100,000
Non-GAAP investment cost basis ⁽³⁾	$	729,344,000		$	644,241,000

	As of June 30, 2018			As of December 31, 2017
Expected IRR ⁽¹⁾		10.19	%		10.48	%
Total weighted-average interest rate on indebtedness for borrowed money ⁽²⁾		7.95	%		7.95	%
Total excess spread ⁽³⁾		2.24	%		2.53	%

Indebtedness	As of June 30, 2018			As of December 31, 2017
Senior credit facility with LNV Corporation	$	190,389,000		$	222,525,000
L Bonds		534,302,000			461,427,000
Total	$	724,691,000		$	683,952,000

Interest Rates on Indebtedness
Senior credit facility with LNV Corporation		10.19	%		9.31	%
L Bonds		7.15	%		7.29	%
Weighted-average interest rates paid on indebtedness		7.95	%		7.95	%

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
GAAP net income (loss) attributable to common shareholders	$	(4,396,000	)	$	(7,725,000	)	$	(17,279,000	)	$	(9,638,000	)
Unrealized fair value gain (1)		(14,573,000	)		(15,235,000	)		(31,219,000	)		(29,119,000	)
Adjusted cost basis increase (2)		27,453,000			22,739,000			53,450,000			44,461,000
Accrual of unrealized actuarial gain (3)		4,973,000			7,505,000			11,575,000			12,415,000
Total adjusted non-GAAP net income (loss)	$	13,457,000		$	7,284,000		$	16,527,000		$	18,119,000

	As of June 30, 2018			As of December 31, 2017
GAAP net worth	$	172,022,000		$	133,672,000
Less intangible assets ⁽¹⁾		(33,133,000	)		(30,354,000	)
GAAP tangible net worth		138,889,000			103,318,000
Unrealized fair value gain ⁽²⁾		(362,605,000	)		(331,386,000	)
Adjusted cost basis increase ⁽³⁾		365,886,000			325,100,000
Accrual of unrealized actuarial gain ⁽⁴⁾		169,816,000			158,241,000
Total adjusted non-GAAP tangible net worth	$	311,986,000		$	255,273,000

	As of June 30, 2018			As of December 31, 2017
Life insurance portfolio policy benefits	$	1,849,079,000		$	1,676,148,000
Discount rate of future cash flows ⁽¹⁾		7.95	%⁽¹⁾		7.95	%⁽¹⁾
Net present value of life insurance portfolio policy benefits	$	822,029,000		$	737,625,000
Cash and cash equivalents		131,096,000			142,771,000
Life insurance policy benefits receivable		27,035,000			16,659,000
Other assets ⁽²⁾		10,841,000			-
Total Coverage	$	991,001,000		$	897,055,000

Senior credit facility	$	190,389,000		$	222,525,000
L Bonds		534,302,000			461,427,000
Total Indebtedness	$	724,691,000		$	683,952,000

Debt Coverage Ratio		73.13	%		76.24	%

(1)	Weighted-average interest rate paid on indebtedness.
(2)	The Total Coverage amount as of June 30, 2018 includes “Other assets” as defined in the Amendment No.1 to Amended and Restated Indenture with Bank of Utah, dated March 27, 2018.

								Percentage of Total
Min Age		Max Age		Number of Policies		Policy Benefits		Number of Policies			Policy Benefits			Wtd. Avg. LE (yrs.)
	95		100		12	$	16,954,000		1.2	%		0.9	%		1.4
	90		94		111		209,514,000		11.0	%		11.3	%		2.8
	85		89		213		446,986,000		21.1	%		24.2	%		4.7
	80		84		213		453,283,000		21.1	%		24.5	%		6.5
	75		79		205		368,928,000		20.3	%		20.0	%		8.9
	70		74		180		263,198,000		17.8	%		14.2	%		10.6
	60		69		76		90,216,000		7.5	%		4.9	%		10.1
	Total				1,010	$	1,849,079,000		100.0	%		100.0	%		6.8

								Percentage of Total
Min LE (Months)		Max LE (Months)		Number of Policies		Policy Benefits		Number of Policies			Policy Benefits
	1		47		268	$	442,256,000		26.5	%		23.9	%
	48		71		198		361,295,000		19.6	%		19.5	%
	72		95		207		391,580,000		20.5	%		21.2	%
	96		119		166		329,115,000		16.4	%		17.8	%
	120		143		97		150,815,000		9.6	%		8.2	%
	144		179		60		130,376,000		6.0	%		7.0	%
	180		228		14		43,642,000		1.4	%		2.4	%
	Total				1,010	$	1,849,079,000		100.0	%	$	100.0	%

Rank	Policy Benefits		Percentage of Policy Benefit Amount			Insurance Company	Ins. Co. S&P Rating
1	$	271,936,000		14.7	%	John Hancock Life Insurance Company (U.S.A.)	AA-
2		210,626,000		11.4	%	AXA Equitable Life Insurance Company	A+
3		206,917,000		11.2	%	Lincoln National Life Insurance Company	AA-
4		171,627,000		9.3	%	Transamerica Life Insurance Company	AA-
5		120,081,000		6.5	%	Metropolitan Life Insurance Company	AA-
6		90,168,000		4.9	%	American General Life Insurance Company	A+
7		61,737,000		3.3	%	Pacific Life Insurance Company	AA-
8		60,893,000		3.3	%	Massachusetts Mutual Life Insurance Company	AA+
9		54,632,000		2.9	%	Reliastar Life Insurance Company	A
10		53,202,000		2.9	%	Security Life of Denver Insurance Company	A
	$	1,301,819,000		70.4	%

Exhibit
10.1	Second Amendment to Master Exchange Agreement, dated June 29, 2018 (filed herewith).
31.1	Section 302 Certification of the Chief Executive Officer (filed herewith).
31.2	Section 302 Certification of the Chief Financial Officer (filed herewith).
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
99.1	Letter from Model Actuarial Pricing Systems, dated July 23, 2018 (filed herewith).
99.2	Portfolio of Life Insurance Policies as of June 30, 2018 (filed herewith).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

	GWG HOLDINGS, INC.

Date: August 14, 2018	By:	/s/ Jon R. Sabes
		Chief Executive Officer

Date: August 14, 2018	By:	/s/ William B. Acheson
		Chief Financial Officer

	GWG HOLDINGS, INC.

	By:	Jon Sabes
	Name:	Jon Sabes
	Title:	Chief Executive Officer

	GWG LIFE, LLC

	By:	Jon Sabes
	Name:	Jon Sabes
	Title:	Chief Executive Officer

	THE BENEFICIENT COMPANY GROUP, L.P.

	By:	Brad K. Heppner
	Name:	Brad K. Heppner
	Title:	Chief Executive Officer

	MHT FINANCIAL SPV, LLC

	By:	Murray T. Holland
	Name:	Murray T. Holland
	Title:	Manager

	THE LT-1 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-2 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-3 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-4 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-5 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-6 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-7 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	THE LT-8 EXCHANGE TRUST,

	By: DELAWARE TRUST COMPANY, not in its individual capacity but solely as Trustee

	By:	Alan R. Halpern
	Name:	Alan R. Halpern
	Title:	Vice President

	MURRAY T. HOLLAND, as Trust Advisor

	Murray T. Holland

	JEFFREY S. HINKLE, as Trust Advisor

	Jeffrey S. Hinkle

1.	I have reviewed this quarterly report on Form 10-Q of GWG Holdings, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ Jon R. Sabes
	Jon R. Sabes
	Chief Executive Officer

	August 14, 2018

	/s/ William B. Acheson
	William B. Acheson
	Chief Financial Officer

	August 14, 2018