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Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Claims recovery income $ 1,319   $ 1,428 $ 15
Claims recovery service income [1] 3,971 $ 3,360 12,047 6,774
Total Claims Recovery 5,290 3,360 13,475 6,789
Operating expenses        
Cost of claim recoveries [2] 694   701 8
Claims amortization expense 23,818 36 26,535 67
General and administrative [3] 5,982 2,723 10,428 5,336
Professional fees 3,118 1,970 5,056 3,067
Professional fees - legal [4] 23,765 8 26,237 30
Depreciation and amortization 72 135 151 167
Total operating expenses 57,449 4,872 69,108 8,675
Operating Loss (52,159) (1,512) (55,633) (1,886)
Interest expense (10,977) (6,667) (21,392) (12,589)
Other (expense) income, net 39 899 37 1,323
Change in fair value of warrant and derivative liabilities (14,353)   (14,353)  
Net loss before provision for income taxes (77,450) (7,280) (91,341) (13,152)
Provision for income tax benefit (expense) 326   326  
Net loss (77,124) (7,280) (91,015) [5] (13,152) [5]
Less: Net (income) loss attributable to non-controlling members 75,836   89,727  
Net loss attributable to controlling members $ (1,288) $ (7,280) $ (1,288) $ (13,152)
Class A Common Stock [Member]        
Operating expenses        
Weighted average shares outstanding, basic [6] 13,607,255   13,607,255  
Weighted average shares outstanding, diluted [6] 13,607,255   13,607,255  
Basic net income per common share [6] $ (0.09)   $ (0.09)  
Diluted net income per common share [6] $ (0.09)   $ (0.09)  
[1] For the three and six months ended June 30, 2022 and 2021, claims recovery service income included $3.2 million and $10.6 million, respectively, and $2.6 million and $5.3 million, respectively, of claims recovery service income from VRM MSP Recovery Partners LLC (“VRM”). See Note 13, Related Party, for further details.
[2] For the three and six months ended June 30, 2022, cost of claim recoveries included $231 thousand and $271 thousand, respectively, of related party expenses. This relates to contingent legal expenses earned from claims recovery income pursuant to legal service agreements with the La Ley con John H. Ruiz P.A., d/b/a MSP Recovery Law Firm (the "Law Firm"). See Note 13, Related Party, for further details. For the three and six months ended June 30, 2021, there were no expenses related to contingent legal expenses.
[3] For the three and six months ended June 30, 2022 and 2021, general and administrative expenses included $156 thousand and $250 thousand, respectively, and $19 thousand and $19 thousand, respectively, of related party expenses. See Note 13, Related Party, for further details.
[4] For the three and six months ended June 30, 2022 and 2021, professional fees - legal included $0.0 million and $0.3 million, respectively, $5 thousand and $8 thousand, respectively, of related party expenses related to the Law Firm. See Note 13, Related Party, for further details.
[5] Balances include related party transactions. See Note 13, Related Party, for further details.
[6] Earnings per share information has not been presented for periods prior to the Business Combination (as defined in Note 1), as it resulted in values that would not be meaningful to the users of these unaudited condensed consolidated financial statements. Refer to Note 15 for further information.