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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-39445

 

MSP Recovery, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

84-4117825

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

2710 Le Jeune Road

Floor 10

Coral Gables, Florida

33134

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (305) 614-2222

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A common stock, $0.0001 par value per share

 

LIFW

 

The Nasdaq Global Market

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share

 

LIFWW

 

The Nasdaq Global Market

Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $0.0001 per share

 

LIFWZ

 

The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of August 28, 2023, the registrant had 332,445,943 shares of Class A common stock, $0.0001 par value per share, and 3,106,616,119 shares of Class V common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Explanatory Note

As previously reported, MSP Recovery, Inc., d/b/a LifeWallet, identified errors in the accounting for the indemnification asset, various intangible assets and rights to cash flows, and consolidation of an entity in connection with our business combination. As a result of these errors, management and the audit committee of our board of directors concluded that our previously issued unaudited condensed consolidated financial statements for the periods ended June 30, 2022, and September 30, 2022, were materially misstated. Accordingly, our unaudited condensed consolidated financial statements for the foregoing periods require restatement and should no longer be relied upon. The financial information that was previously filed or otherwise reported as of and for the periods ended June 30, 2022 and September 30, 2022 is superseded by the information in our Annual Report on Form 10-K filed with the SEC on July 27, 2023 and this Quarterly Report on Form 10-Q. See Note 2, Basis of Presentation And Summary of Significant Accounting Policies, to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for additional information on the restatement and the related financial information impacts.

i


 

Table of Contents

 

Page

PART I.

FINANCIAL INFORMATION

4

Item 1.

Financial Statements (Unaudited)

4

Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022

4

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022 (as restated)

5

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2023 and 2022 (as restated)

6

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (as restated)

8

Notes to Unaudited Condensed Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

28

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

43

Item 4.

Controls and Procedures

43

PART II.

OTHER INFORMATION

46

Item 1.

Legal Proceedings

46

Item 1A.

Risk Factors

46

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

46

Item 3.

Defaults Upon Senior Securities

46

Item 4.

Mine Safety Disclosures

47

Item 5.

Other Information

47

Item 6.

Exhibits

48

Signatures

49

 

ii


 

DEFINITIONS

Unless otherwise stated or unless the context otherwise requires, the terms “we,” “us,” “our,” the “Company,” and “LifeWallet” refer to MSP Recovery, Inc. d/b/a LifeWallet. As used in this Quarterly Report on Form 10-Q, unless otherwise noted or the context otherwise requires, the terms below are defined as follows:

 

“2022 Form 10-K” means the Annual Report on Form 10-K for the year ended December 31, 2022, which was filed by the Company on July 27, 2023.

 

“Algorithm” refers to a set of instructions that perform a particular action. Our team of data scientists and medical professionals create proprietary instruction sets, or “Algorithms,” to identify recovery opportunities within the data sets of our Assignors’ Claims. Our proprietary algorithms incorporate various data points within the data sets of our Assignors’ Claims, which may include, but are not limited to, medical coding classification systems such as diagnosis codes (e.g., ICD-8/ICD-9/ICD-10 codes), procedure codes (e.g., CPT codes), and drug codes (e.g., NDC codes); non-medical data such as demographics and date ranges; and data from public sources such as crash reports, offense incident reports, and other reports that provide details as to an occurrence. These Algorithms are then applied to our Assignors’ aggregated Claims data, filtering through the billions of lines of data from our Assignors to identify recoverable opportunities consistent with a given Algorithm’s criteria. Identified potential recoveries are then further quality reviewed by our medical team.

“Billed Amount” (a/k/a the charged amount or retail price) is the full commercial value of services billed by the provider, or the full charge that the provider would ordinarily bill for the service provided. The Billed Amount for a specific procedure code is based on the provider and varies from location to location. The Company uses historical data from Claims submitted by providers to determine the Billed Amount when a Billed Amount is not provided in the data received from the Assignor.

“Board of Directors” or “Board” means the board of directors of the Company;

“Business Combination” means the business combination pursuant to that certain Membership Interest Purchase Agreement, dated as of July 11, 2021, as described in more detail in Note 3 Business Combination of this Form 10-Q;

“CF” means Cantor Fitzgerald, L.P., a New York based investment bank.;

 

“Claim” means the right, title to, and/or interest in, any and all claims or potential claims, including all related reimbursement and recovery rights, which the Company has, may have had, or may have in the future assigned to it (whether or not asserted), including all rights to causes of action and remedies against any third-party, whether a primary payer or responsible party, at law or in equity. The term “Claim” includes but is not limited to: (i) claims arising under consumer protection statutes and laws; (ii) claims arising under the Medicare and Medicare Advantage secondary payer statutes, whether based in contract, tort, statutory right, or otherwise, in connection with the payment to provide healthcare services or supplies; (iii) claims arising under any state statutes and common laws irrespective of the rights that are conferred to MSP through assignment or otherwise; and (iv) all right, title, and interest to any recovery rights that may exist for any potential cause of action where a responsible party or primary payer is liable, even where it has not been established because liability is not yet proven as of the date that the Claim is identified or discovered, together with all receivables, general intangibles, payment intangibles, and other rights to payment now existing or hereafter arising and all products and proceeds of the foregoing;

“Class A Common Stock” means the shares of the Company’s Class A common stock, par value $0.0001 per share;

“Class V Common Stock” means the shares of the Company’s Class V common stock, par value $0.0001 per share;

“Class B Unit” means the non-voting economic Class B Units of the Company, as described in more detail in Note 3, Business Combination of this Form 10-Q;

“Closing” means the closing of the Business Combination, as described in more detail in Note 3 Business Combination of this Form 10-Q;

“Company” means the registrant, MSP Recovery, Inc. d/b/a LifeWallet, a Delaware corporation.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended;

i


 

“Existing Warrant Agreement” means the Warrant Agreement dated as of August 13, 2020, by and between the Company and Continental Stock Transfer & Trust Company;

“GAAP” means generally accepted accounting principles in the United States, as applied on a consistent basis;

 

“Hazel” means Hazel Holdings I LLC, a Delaware limited liability company, together with its affiliates;

“Working Capital Credit Facility” means the credit agreement as described in more detail in Note 10, Claims Financing Obligations and Notes Payable of this Form 10-Q;

 

“IPO” means the initial public offering by the Company;

“Legacy MSP” means MSP Recovery as it was organized in 2014 as a Medicaid and Medicare Secondary Pay Act recovery specialist.

 

“LLC Agreement” means the first amended and restated limited liability company agreement of Opco;

“Members’ Representative” means John H. Ruiz, solely in his capacity as the representative of the Members;

“MIPA” means the Membership Interest Purchase Agreement, dated as of July 11, 2021, as described in more detail in Note 3 Business Combination of this Form 10-Q;

“MSP Recovery” means MSP Recovery, LLC, a Florida limited liability company;

“MSP RH Series 01” means MSP Recovery Holdings Series 01, LLC, a Delaware limited liability company;

“MSP RH Series 01 Recovery Services Agreement” means the Recovery Services Agreement dated as of October 23, 2020 by and between MSP RH Series 01 and MSP Recovery;

“New Warrants” means 1,029,000,000 warrants, each to purchase one share of Class A Common Stock issued as a dividend to the holders of record of Class A Common Stock as of the close of business on the date of Closing;

“Nomura” means Nomura Securities International, Inc.;

“Opco” means Lionheart II Holdings, LLC, a wholly owned subsidiary of the Company;

 

“OTC Equity Prepaid Forward Transaction” means an agreement between the Company and CF in which CF agreed to (a) transfer to the Company for cancellation any warrants to purchase shares received as a result of being the stockholder of record of a share as of the close of business on the closing date of the Business Combination, pursuant to the previously announced and declared LCAP dividend and (b) waive any redemption right that would require the redemption of the Subject Shares (as defined below) in exchange for a pro rata amount of the funds held in LCAP’s trust account.

“Paid Amount,” (a/k/a Medicare Paid Rate or wholesale price) means the amount paid to the provider from the health plan or insurer. This amount varies based on the party making payment. For example, Medicare typically pays a lower fee for service rate than commercial insurers. The Paid Amount is derived from the Claims data we receive from our Assignors. In the limited instances where the data received lacks a paid value, our team calculates the Paid Amount with a formula. The formula used provides rates for outpatient services and is derived from the customary rate at the 95th percentile as it appears from standard industry commercial rates or, where that data is unavailable, the billed amount if present in the data. These amounts are then adjusted to account for the customary Medicare adjustment to arrive at the calculated Paid Amount. Management believes that this formula provides a conservative estimate for the Medicare paid amount rate, based on industry studies which show the range of differences between private insurers and Medicare rates for outpatient services.

 

We periodically update this formula to enhance the calculated paid amount where that information is not provided in the Assignor data. Management believes this measure provides a useful baseline for potential recoveries, but it is not a measure of the total amount that may be recovered in respect of potentially recoverable Claims, which in turn may be influenced by any applicable potential statutory recoveries such as double damages or fines, as described below. This calculation accounts for an approximate 7% increase in the total Paid Amount. Where we have to extrapolate a Paid Amount to establish damages, the calculated amount may be contested by opposing parties.

“Public Units” means units comprised of one share of Class A Common Stock and one-half of one Public Warrant issued in the IPO;

ii


 

“Public Warrants” means warrants included in the Public Units issued in the IPO, each of which is exercisable for one share of Class A Common Stock, in accordance with its terms, as described in more detail in Note 3 Business Combination of this Form 10-Q;

“PVPRC” means the cumulative Paid Amount value of potentially recoverable Claims. We analyze our Claims portfolio and identify potentially recoverable Claims using Algorithms that comb through historical paid Claims data and search for potential recoveries. The PVPRC is a measure of the Paid Amount in respect of those potentially recoverable Claims. In the limited instances where the data received from our Assignors lacks a paid value, the adjustment formula described in the definition of Paid Amount is applied and increases PVPRC by approximately 7%.

 

“Recovery Proceeds” means, with respect to any Claim, any and all of the gross proceeds recovered, including compensation, interest, penalties, and fees which may be paid or payable with respect to such Claim (including any and all cash, securities, instruments or other property which may be paid or issued by defendants or third parties in litigation proceedings in satisfaction of such Claim).

 

“SEC” means the U.S. Securities and Exchange Commission;

“Securities Act” means the Securities Act of 1933, as amended;

“Series MRCS” means Series MRCS, a series of MDA, Series LLC, a Delaware series limited liability company;

“Trust Account” means the trust account established by the Company for the benefit of its stockholders with Continental Stock Transfer & Trust Company;

“Up-C Unit” means each pair consisting of one share of Class V Common Stock and one Class B Unit, as described in more detail in Note 3 Business Combination of this Form 10-Q.

“Virage” means Virage Capital Management LP, a Delaware limited partnership;

“VRM” means Virage Recovery Master LP, a Delaware limited partnership and affiliate of Virage; and

“VRM MSP” means VRM MSP Recovery Partners LLC, a Delaware limited liability company and joint investment vehicle of VRM and Series MRCS.

iii


Table of Contents

Part I – Financial Information

Item 1. Financial Statements

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

June 30,

 

 

December 31,

 

(In thousands except per share amounts)

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,433

 

 

$

3,661

 

Restricted cash

 

 

 

 

 

11,420

 

Accounts receivable

 

 

4,610

 

 

 

6,195

 

Affiliate receivable (1)

 

 

832

 

 

 

2,425

 

Prepaid expenses and other current assets (1)

 

 

19,360

 

 

 

27,656

 

Total current assets

 

 

31,235

 

 

 

51,357

 

Property, plant and equipment, net

 

 

4,712

 

 

 

3,432

 

Intangible assets, net (2)

 

 

3,374,615

 

 

 

3,363,156

 

Total assets

 

$

3,410,562

 

 

$

3,417,945

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

7,260

 

 

$

8,422

 

Affiliate payable (1)

 

 

19,822

 

 

 

19,822

 

Commission payable

 

 

802

 

 

 

545

 

Derivative liability

 

 

 

 

 

9,613

 

Warrant liability

 

 

1,012

 

 

 

5,311

 

Other current liabilities

 

 

77,726

 

 

 

72,002

 

Total current liabilities

 

 

106,622

 

 

 

115,715

 

Guaranty obligation (1)

 

 

862,219

 

 

 

787,945

 

Claims financing obligation and notes payable (1)

 

 

485,060

 

 

 

198,489

 

Loan from related parties (1)

 

 

130,709

 

 

 

125,759

 

Interest payable (1)

 

 

22,467

 

 

 

2,765

 

Total liabilities

 

$

1,607,077

 

 

$

1,230,673

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock subject to possible redemption, 1,129,589 shares at redemption value as of December 31, 2022 (None as of June 30, 2023)

 

 

 

 

 

1,807

 

 

 

 

 

 

 

 

Stockholders’ Equity (Deficit):

 

 

 

 

 

 

Class A common stock, $0.0001 par value; 5,500,000,000 shares authorized; 132,235,847 and 74,605,284 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

 

$

13

 

 

$

7

 

Class V common stock, $0.0001 par value; 3,250,000,000 shares authorized; 3,106,616,119 and 3,147,979,494 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

 

 

311

 

 

 

315

 

Additional paid-in capital

 

 

176,331

 

 

 

136,760

 

Members’ equity

 

 

-

 

 

 

-

 

Accumulated deficit

 

 

(42,339

)

 

 

(29,203

)

Total Stockholders’ Equity (Deficit)

 

 

134,316

 

 

 

107,879

 

Non-controlling interest

 

 

1,669,169

 

 

 

2,077,586

 

Total equity

 

$

1,803,485

 

 

$

2,185,465

 

Total liabilities and equity

 

$

3,410,562

 

 

$

3,417,945

 

 

1.
As of June 30, 2023 and December 31, 2022, the total affiliate receivable, affiliate payable, guaranty obligation and loan from related parties balances are with related parties. In addition, the prepaid expenses and other current assets, claims financing obligation and notes payable, and interest payable includes balances with related parties. See Note 13, Related Party Transactions, for further details.
2.
As of June 30, 2023 and December 31, 2022, intangible assets, net included $2.4 billion and $2.3 billion, respectively, related to a consolidated VIE. See Note 9, Variable Interest Entities, for further details.

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4


Table of Contents

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Statements of Operations (As Restated)

(Unaudited)

 

 

Three months ended
June 30,

 

 

Six months ended June 30,

 

(In thousands except per share amounts)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

As Restated

 

 

 

 

 

As Restated

 

Claims recovery income

 

$

2,542

 

 

$

1,357

 

 

$

6,039

 

 

$

1,466

 

Claims recovery service income (1)

 

 

 

 

 

3,971

 

 

 

498

 

 

 

12,047

 

Total Claims Recovery

 

$

2,542

 

 

$

5,328

 

 

$

6,537

 

 

$

13,513

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of claim recoveries (2)

 

 

377

 

 

 

702

 

 

 

1,398

 

 

 

709

 

Claims amortization expense

 

 

121,004

 

 

 

38,991

 

 

 

234,473

 

 

 

41,708

 

General and administrative (3)

 

 

7,706

 

 

 

5,982

 

 

 

14,561

 

 

 

10,428

 

Professional fees

 

 

3,417

 

 

 

3,131

 

 

 

13,145

 

 

 

5,069

 

Professional fees – legal (4)

 

 

10,467

 

 

 

23,765

 

 

 

19,018

 

 

 

26,237

 

Allowance for credit losses

 

 

 

 

 

 

 

 

5,000

 

 

 

 

Depreciation and amortization

 

 

88

 

 

 

72

 

 

 

97

 

 

 

151

 

Total operating expenses

 

 

143,059

 

 

 

72,643

 

 

 

287,692

 

 

 

84,302

 

Operating Loss

 

$

(140,517

)

 

$

(67,315

)

 

$

(281,155

)

 

$

(70,789

)

Interest expense (5)

 

 

(73,618

)

 

 

(24,352

)

 

 

(116,008

)

 

 

(34,767

)

Other income, net

 

 

1,662

 

 

 

39

 

 

 

8,289

 

 

 

37

 

Change in fair value of warrant and derivative liabilities

 

 

1,644

 

 

 

(14,353

)

 

 

3,899

 

 

 

(14,353

)

Net loss before provision for income taxes

 

$

(210,829

)

 

$

(105,981

)

 

$

(384,975

)

 

$

(119,872

)

Provision for income tax expense

 

 

-

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(210,829

)

 

$

(105,981

)

 

$

(384,975

)

 

$

(119,872

)

Less: Net loss attributable to non-controlling members

 

 

202,609

 

 

 

104,101

 

 

 

371,839

 

 

 

117,992

 

Net loss attributable to controlling members

 

$

(8,220

)

 

$

(1,880

)

 

$

(13,136

)

 

$

(1,880

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares outstanding, Class A Common Stock

 

 

123,564,802

 

 

 

13,607,255

 

 

 

106,183,727

 

 

 

13,607,255

 

Basic and diluted net loss per share, Class A Common Stock

 

$

(0.07

)

 

$

(0.14

)

 

$

(0.12

)

 

$

(0.14

)

 

(1)
For the three and six months ended June 30, 2022, claims recovery service income included $3.2 million and $10.6 million, and respectively, of claims recovery service income from VRM MSP. There was no claims recovery service income from VRM MSP for the three and six months ended June 30, 2023. See Note 13, Related Party Transactions, for further details.
(2)
For the three and six months ended June 30, 2022, cost of claim recoveries included $0.2 million and $0.3 million 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”). No such related party expenses were present for the three and six months ended June 30, 2023. See Note 13, Related Party Transactions, for further details.
(3)
For the three and six months ended June 30, 2022, general and administrative expenses included $0.2 million and $ $0.3 million of related party expenses. See Note 13, Related Party Transactions, for further details. No such related party expenses were present for the three and six months ended June 30, 2023.
(4)
For the three and six months ended June 30, 2023 and 2022, professional fees – legal included $4.7 million and $8.9 million, and $0.0 million and $0.3 million, respectively, of related party expenses related to the Law Firm. See Note 13, Related Party Transactions, for further details.
(5)
For three and six months ended June 30, 2023, interest expense included $38.9 million and $91.4 million, respectively, related to interest expense due to VRM. For three ended June 30, 2022, interest expense included $13.4 million related to interest expense due to VRM. No such interest was due to VRM prior three months ended June 30, 2022 See Note 13, Related Party Transactions, for further details..

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

5


Table of Contents

MSP RECOVERY, INC. and Subsidiaries

Condensed Consolidated Statements of Changes in Equity (As Restated)

(Unaudited)

 

Three Months Ended June 30, 2023

 

 

 

Class A Common Stock

 

 

Class V Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands except shares)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional Paid-in Capital

 

 

Accumulated Deficit

 

 

Non- Controlling Interests

 

 

Total Equity

 

Balance at March 31, 2023

 

 

96,002,855

 

 

$

9

 

 

 

3,128,121,511

 

 

$

313

 

 

$

153,332

 

 

$

(34,119

)

 

$

1,894,008

 

 

$

2,013,543

 

Conversion of Warrants

 

 

130,802

 

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

50

 

Class A Issuances

 

 

36,102,190

 

 

 

4

 

 

 

(21,505,392

)

 

 

(2

)

 

 

22,949

 

 

 

 

 

 

(22,230

)

 

 

721

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,220

)

 

 

(202,609

)

 

 

(210,829

)

Balance at June 30, 2023

 

 

132,235,847

 

 

$

13

 

 

 

3,106,616,119

 

 

$

311

 

 

$

176,331

 

 

$

(42,339

)

 

$

1,669,169

 

 

$

1,803,485

 

 

Three Months Ended June 30, 2022 (As Restated)

 

(In thousands)

 

Class A Common Stock

 

 

Class V Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional Paid-in Capital

 

 

Member’s Deficit

 

 

Accumulated Deficit

 

 

Non- Controlling Interests

 

 

Total Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(As Restated)

 

 

 

 

 

(As Restated)

 

 

(As Restated)

 

 

(As Restated)

 

Balance at March 31, 2022

 

 

 

 

$

 

 

 

 

 

$

 

 

$

 

 

$

(169,749

)

 

$

 

 

$

4,348

 

 

$

(165,401

)

Contributions prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

Distributions prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(45

)

 

 

 

 

 

 

 

 

(45

)

Net loss prior to recapitalization transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,749

)

 

 

 

 

 

 

 

 

(14,749

)

Cumulative effect of recapitalization transaction

 

 

7,582,668

 

 

 

1

 

 

 

3,154,473,292

 

 

 

315

 

 

 

41,277

 

 

 

184,528

 

 

 

 

 

 

2,490,751

 

 

 

2,716,872

 

Opening net assets of Lionheart II Holdings, LLC acquired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,786

)

 

 

 

 

 

(21,786

)

Adjustment for value of derivative on temporary equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,003

 

 

 

 

 

 

 

 

 

 

 

 

9,003

 

Conversion of Warrants

 

 

7,202,022

 

 

 

1