Thu, May 15, 9:02 PM (60 days ago)
### Summary of MSP Recovery, Inc. (MSPR) Q1 2025 Financial Health and Performance **Financial Performance:** - **Revenue:** Total revenue for Q1 2025 was $837,000, a significant decrease of 86% compared to $6,001,000 in Q1 2024. - **Operating Expenses:** Total operating expenses were $127,842,000, a 6% decrease from $136,207,000 in Q1 2024. - **Net Loss:** The net loss for Q1 2025 was $236,029,000, a 34% increase from $176,600,000 in Q1 2024. - **Earnings per Share:** Basic and diluted earnings per share were $(33.70), compared to $(31.44) in Q1 2024. **Cash Flow:** - **Operating Activities:** The company used $7,192,000 in cash from operating activities, compared to $2,145,000 in Q1 2024. - **Investing Activities:** The company used $163,000 in cash from investing activities, similar to $143,000 in Q1 2024. - **Financing Activities:** The company generated $4,101,000 in cash from financing activities, compared to $2,628,000 in Q1 2024. **Liquidity and Capital Resources:** - **Cash Position:** As of March 31, 2025, the company had $9,074,000 in cash, down from $12,328,000 at the end of 2024. - **Debt Obligations:** The company has significant debt obligations, including $704,200,000 in claims financing obligations and notes payable. - **Going Concern:** The company has substantial doubt about its ability to continue as a going concern beyond the next twelve months without additional funding. **Future Operations Impact:** - **Restructuring Plan:** The company is negotiating a restructuring plan to reduce costs, deleverage by converting debt to equity, and secure additional funding. - **Funding Sources:** The company anticipates funding from bridge loans, operational collection floor facilities, and potential distributions under the Standby Equity Purchase Agreement with Yorkville. **Uncertainties:** - **Legal and Regulatory:** The company faces ongoing legal investigations and regulatory scrutiny, which could impact its operations and financial condition. - **Market Conditions:** The company's ability to generate revenue and secure funding is subject to market conditions and the trading price of its common stock. **Conclusion:** MSP Recovery, Inc. is facing significant financial challenges, including declining revenue, increasing net losses, and substantial debt obligations. The company is actively seeking to restructure its operations and secure additional funding to address liquidity concerns and ensure its ability to continue as a going concern. The outcome of ongoing legal investigations and market conditions will also impact the company's future performance and financial health.