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Abacus Settlements LLC - RELATED-PARTY TRANSACTIONS
 6 Months Ended
Jun. 30, 2024
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]  
RELATED-PARTY TRANSACTIONS RELATED-PARTY TRANSACTIONS
As of June 30, 2024 and December 31, 2023, $5,236 and $5,236, respectively, were due to affiliates. As of June 30, 2024 and December 31, 2023, $1,170,589 and $1,007,528, respectively, was due from affiliates. The majority of the due from affiliate amount as of December 31, 2023 represents transaction costs incurred by the Company related to the formation of an investment fund being registered under the Investment Company Act of 1940 that will be reimbursed upon regulatory approval and effectiveness of the investment fund and subsequent sale of shares in the investment fund.
The SPV Purchase and Sale Note of $28,170,326 is a related party transaction given the transfer of cash and policies between the Company and the SPV, which is jointly owned by the Sponsor and former members of LMA and Abacus. The Sponsor PIK Note for $11,799,715 is also recorded as a related party transaction given the relationship between the Sponsor and the Company. Refer to Note 22, Subsequent Events, for additional discussion.
The Company has a related-party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”). The Company earns service revenue related to policy and administrative services on behalf of the Nova Funds. The servicing fee is equal to 50 basis points (0.50%) times the monthly invested amount in policies held by Nova Funds divided by 12. The Company earned $120,670 and $329,629 in service revenue related to the Nova Funds for the three months ended June 30, 2024 and 2023, respectively. The Company earned $305,855 and $543,076 in service revenue related to the Nova Funds for the six months ended June 30, 2024 and 2023, respectively. The Company incurred transition costs with the Nova funds of $1,453 and $2,138 for the three and six months ended June 30, 2024, respectively.
As of June 30, 2024, and December 31, 2023, there were $150,213 and $79,509, respectively, owed by the Nova Funds, which are included as related-party receivables in the consolidated balance sheets.
After the Merger, the Company also originates policies for the Nova Funds. For its origination services to the Nova Funds, the Company earns origination fees equal to the lesser of (i) 2% of the net death benefit for the policy or (ii) $20,000. For the three and six months ended June 30, 2024 and 2023 the Company did not earn any related party origination revenue from the Nova Funds. No transaction costs with the Nova Funds were incurred for the three and six months ended June 30, 2023.
Abacus Settlements, LLC  
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]  
RELATED-PARTY TRANSACTIONS RELATED-PARTY TRANSACTIONS
Abacus has a related-party relationship with Nova Trading (US), LLC (“Nova Trading”), a Delaware limited liability company and Nova Holding (US) LP, a Delaware limited partnership (“Nova Holding” and collectively with Nova Trading, the “Nova Funds”) as the owners of Abacus jointly own 11% of the Nova Funds. For the three months ended June 30, 2023, Abacus originated 38 policies, respectively, for the
Nova Funds with a total value of $56,688,680, respectively. For the six months ended June 30, 2023, Abacus originated 72 policies, respectively, for the Nova Funds with a total value of $96,674,080, respectively. For its origination services to the Nova Funds, Abacus earns origination fees equal to the lesser of (i) 2% of the net death benefit for the policy or (ii) $20,000. For three and six months ended June 30, 2023, revenue earned, and contracts originated are as follows:
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Origination fee revenue$1,504,532 $2,952,837 
Transaction reimbursement revenue75,332 140,960 
Total$1,579,864 $3,093,797 
Cost$5,290,504 $11,656,637 
Face value$56,688,680 $96,674,080 
Total policies38 72 
Average Age7675
In addition to the Nova Funds, Abacus also has another affiliated investor that they provide origination services for. Total revenue earned related to the other affiliated investors was $3,615,738 and $6,838,141, of which $3,615,738 and $6,794,641 was related to LMA for the three and six months ended June 30, 2023, respectively. Total cost of sales related to the other affiliated investor was $2,623,201 and $5,020,603, of which $2,623,201 and $5,012,103 was related to LMA for three and six months ended June 30, 2023, respectively. In addition, there is a related party receivable due from LMA related to transaction expenses of $19,246 as of June 30, 2023.