0000950170-22-017118 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2022	Jul. 31, 2022
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity File Number	001-39445
Entity Registrant Name	MSP Recovery, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4117825
Entity Address State Or Province	FL
Entity Address, City or Town	Coral Gables
Entity Address, Postal Zip Code	33134
City Area Code	305
Local Phone Number	614-2222
Entity Address, Address Line One	2710 Le Jeune Road
Entity Address, Address Line Two	Floor 10
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Bankruptcy Proceedings, Reporting Current	false
Entity Central Index Key	0001802450
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		66,142,649
Class A Common Stock [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	MSPR
Security Exchange Name	NASDAQ
Redeemable Warrants Each Whole Warrant Exercisable For One Share Of Class A Common Stock At An Exercise Price Of 11.50 Per Share [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share
Trading Symbol	MSPRW
Security Exchange Name	NASDAQ
Redeemable Warrants Each Whole Warrant Exercisable For One Share Of Class A Common Stock At An Exercise Price Of 0.0001 Per Share [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $0.0001 per share
Trading Symbol	MSPRZ
Security Exchange Name	NASDAQ

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2022

Dec. 31, 2021

Current assets:

Cash and cash equivalents

$ 25,045

$ 1,664

Restricted cash

11,420

Accounts receivable

901

Affiliate receivable

^[1]

2,111

4,070

Indemnification asset

^[1]

719,413

Prepaid expenses and other current assets

^[1]

36,890

13,304

Total current assets

795,780

19,038

Property, plant and equipment, net

950

750

Deferred tax asset

857

Intangible assets, net

2,095,735

84,218

Investment in rights to claim recovery cash flows

3,673,610

Total assets

6,566,932

104,006

Current liabilities:

Accounts payable

29,575

4,609

Affiliate payable

^[1]

20,202

45,252

Commission payable

476

465

Deferred service fee income

249

Derivative Liability

9,003

Warrant Liability

9,708

Guaranty obligation

719,413

Other current liabilities

11,057

3,489

Total current liabilities

799,683

54,064

Claims financing obligation & notes payable

^[1]

111,395

106,805

Loan from related parties

^[1]

125,759

Interest payable

111,324

94,545

Total liabilities

1,148,161

255,414

Commitments and Contingencies

Class A common stock subject to possible redemption, 1,129,589 shares at redemption value as of June 30, 2022.

2,417

Stockholders' Equity (Deficit):

Additional paid-in capital

187,269

Members' equity

(155,756)

Accumulated deficit

(23,074)

Total Stockholders' Equity (Deficit)

164,517

(155,756)

Non-controlling interest

5,251,837

4,348

Total equity

5,416,354

(151,408)

Total liabilities and equity

6,566,932

$ 104,006

Class A Common Stock [Member]

Stockholders' Equity (Deficit):

Common stock

Class V Common Stock [Member]

Stockholders' Equity (Deficit):

Common stock

$ 315

[1]

As of June 30, 2022 and December 31, 2021, the total affiliate receivable, indemnification asset, affiliate payable and loan from related parties balances are with related parties. In addition, the prepaid expenses and other current assets and claims financings obligation and notes payable includes balances with related parties. See Note 13, Related Party, for further details.

Condensed Consolidated Balance Sheets (Parenthetical)	Jun. 30, 2022 $ / shares shares
Class A common stock subject to possible redemption, shares	1,129,589
Class A Common Stock [Member]
Common stock, par value \| $ / shares	$ 0.0001
Common stock, shares authorized	5,500,000,000
Common stock, shares issued	66,051,029
Common stock, shares outstanding	66,051,029
Class V Common Stock [Member]
Common stock, par value \| $ / shares	$ 0.0001
Common stock, shares authorized	3,250,000,000
Common stock, shares issued	3,154,473,292
Common stock, shares outstanding	3,154,473,292

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

Claims amortization expense

23,818

26,535

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

26,237

Depreciation and amortization

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

899

1,323

Change in fair value of warrant and derivative liabilities

(14,353)

Net loss before provision for income taxes

(77,450)

(7,280)

(91,341)

(13,152)

Provision for income tax benefit (expense)

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

Weighted average shares outstanding, diluted

^[6]

13,607,255

Basic net income per common share

^[6]

$ (0.09)

Diluted net income per common share

^[6]

$ (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.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2021

Claims recovery service income

^[1]

$ 3,360

$ 6,774

Related party legal expense

General and Administrative Expense [Member]

Related party expenses

VRM [Member]

Claims recovery service income

2,600

5,300

MSP Recovery Law Firm [Member] | Professional Fees - Legal [Member]

Related party expenses

$ 5

$ 8

[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.

Condensed Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands

Total