MSP Recovery, Inc. (d/b/a LifeWallet) reported significant financial developments in its recent 10-Q filing for the third quarter of 2024. As of September 30, 2024, the company experienced a notable increase in claims recovery income, which reached $3.6 million, a substantial rise from $440,000 in Q3 2023. For the nine months ending September 30, 2024, total revenues amounted to $10.0 million, compared to $7.0 million in the same period last year, reflecting a 43% increase.

Despite the revenue growth, MSP Recovery reported an operating loss of $129.9 million for Q3 2024, a slight improvement from a loss of $136.7 million in Q3 2023. The net loss for the quarter was $190.4 million, down from $224.2 million year-over-year. However, the net loss attributable to MSP Recovery, Inc. increased to $29.8 million from $19.8 million in the prior year, indicating challenges in profitability.

The company’s total current assets decreased significantly to $10.8 million from $21.9 million at the end of 2023, while total assets fell from $3.16 billion to $2.79 billion. Current liabilities surged to $1.21 billion, up from $46.5 million, primarily due to increased obligations related to claims financing. Total stockholders’ equity rose to $300.3 million, up from $272.4 million, but total equity decreased from $1.42 billion to $847.0 million.

Strategically, MSP Recovery has been active in securing financing to support its operations. The company amended its Working Capital Credit Facility to allow for up to $48 million in proceeds, with a recent agreement enabling a draw of $23.3 million until September 2025. Additionally, the company has engaged in settlements, including a $3.1 million cash settlement with a pharmaceutical manufacturer for alleged antitrust violations.

MSP Recovery is also addressing compliance issues with Nasdaq, having been notified of non-compliance due to its Class A Common Stock closing bid price falling below $1.00. A reverse stock split was authorized by stockholders, expected to take effect on November 18, 2024, to regain compliance.

The company continues to face challenges, including an accumulated deficit of $159.4 million and substantial doubt about its ability to continue as a going concern without raising additional funds. The ongoing SEC investigation regarding its business combination and financial disclosures adds further complexity to its operational landscape.