Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Feb. 06, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | ASTA FUNDING INC | |
Entity Central Index Key | 1,001,258 | |
Trading Symbol | asfi | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 11,876,224 | |
Document Type | 10-Q/A | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | true | |
Amendment Description | We are filing this Amendment No. 1 on Form 10-Q/A to revise and restate the following items of our Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, which was originally filed with the Securities and Exchange Commission on February 9, 2017 (the “Original Form 10-Q”): (i) Item 1 of Part I “Financial Information,” (ii) Item 2 of Part I, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” (iii) Item 4 of Part I, “Controls and Procedures,” and (iv) Item 6 of Part II, “Exhibits” We have also updated the signature page, the certifications of our Chief Executive Officer and Chief Financial Officer in Exhibits 31.1, 31.2, 32.1 and 32.2, and our financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibit 101. No other sections were affected, but for the convenience of the reader, this report on Form 10-Q/A restates in its entirety, as amended, our Original Form 10-Q. On May 12, 2017, after discussions with the Company’s Audit Committee, management concluded that the Company did not reflect the quarterly increase in certain underlying benchmark interest rates used in determining fair value of the Company’s structured settlements for the quarter ended December 31, 2016. The Company purchases periodic payments under structured settlements and annuity policies from individuals in exchange for a lump sum payment. The Company has elected to carry the structured settlements at fair value in accordance with the guidance of FASB Accounting Standards Codification ("ASC"), Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 822-10-50-28 through 50-22). The Company subsequently revised the fair market value of the structured settlements, and has reflected the change in its results of operations for the quarter ended December 31, 2016. The misstatement resulted in a decrease in the fair value of the Company's structured settlements of approximately $2.6 million, with an associated increase in prepaid income taxes and deferred tax assets of approximately $1.0 million. As a result of this misstatement, the Company has concluded there was a previously undetected material weakness in the Company’s internal control over financial reporting as of December 31, 2016. Additionally, the Company corrected the financial statements for all known errors consisting of (i) an asset reclassification on the balance sheet from cash and cash equivalents to receivables acquired for liquidation and (ii) the activity for the month of December 2016 for two international subsidiaries of the Company. See Note 1 to notes to consolidated financial statements for more information. This report on Form 10-Q/A has been signed as of a current date and all certifications of the Company’s Chief Executive Officer and Chief Financial Officer are given as of a current date. Except as discussed above, the Company has not modified or updated disclosures presented in this Amendment. Accordingly, this Amendment does not reflect events occurring after the Original Form 10-Q or modify or update those disclosures affected by subsequent events, except as specifically referenced herein. Information not affected by the restatement is unchanged and reflects the disclosures made at the time of the Original Filing. In addition, during Q1 2017, the Company identified known out of period adjustments that would have decreased net income by $0.4 million (net of tax) for unallocated collection expenses for fiscal years 2014 through 2016. The impact of this misstatement, which accumulated over the aforementioned years, on the prior years’ financial statements was not significant to the related interim and annual periods. Due to the immateriality of this error on the Company’s previously filed interim and annual reports, the Company elected to restate the prior period information, as of September 30, 2016, in the current filing, and concluded previous filed reports would not require amendment. The individual financial statement line items that were restated included a $0.6 million reduction of the Company’s consumer receivables acquired for liquidation, a decrease of $0.2 million to income taxes payable and a corresponding reduction of $0.4 million to related earnings, which is reflected in the restated stockholders’ equity as of September 30, 2016. |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 6,510,000 | $ 18,526,000 |
Restricted cash | 8,165,000 | |
Available for sale investments (at fair value) | 55,045,000 | 56,764,000 |
Consumer receivables acquired for liquidation (at net realizable value) | 13,243,000 | 13,671,000 |
Structured settlements (at fair value) | 88,952,000 | 85,708,000 |
Investment in personal injury claims, net | 47,875,000 | 48,289,000 |
Other investments, net | 3,354,000 | 3,590,000 |
Due from third party collection agencies and attorneys | 1,035,000 | 1,005,000 |
Prepaid and income taxes receivable | 5,267,000 | 880,000 |
Furniture and equipment, net | 219,000 | 243,000 |
Deferred income taxes | 16,585,000 | 15,530,000 |
Goodwill | 2,770,000 | 2,770,000 |
Other assets | 8,443,000 | 8,423,000 |
Total assets | 257,463,000 | 255,399,000 |
LIABILITIES | ||
Other debt – CBC (including non-recourse notes payable of $56.3 million at December 31, 2016 and $57.3 million at September 30, 2016) | 71,566,000 | 67,435,000 |
Other liabilities | 7,616,000 | 5,974,000 |
Income taxes payable | 252,000 | |
Total liabilities | 79,182,000 | 73,661,000 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $.01 par value; authorized 5,000,000 shares; issued and outstanding — none | ||
Common stock, $.01 par value, authorized 30,000,000 shares; issued 13,336,508 at December 31, 2016 and September 30, 2016; and outstanding 11,876,224 at December 31, 2016 and September 30, 2016 | 133,000 | 133,000 |
Additional paid-in capital | 67,020,000 | 67,026,000 |
Retained earnings | 126,406,000 | 128,063,000 |
Accumulated other comprehensive income (loss) | (1,549,000) | 86,000 |
Treasury stock (at cost) 1,460,284 shares at December 31, 2016 and September 30, 2016 | (12,925,000) | (12,925,000) |
Non-controlling interest | (804,000) | (645,000) |
Total stockholders’ equity | 178,281,000 | 181,738,000 |
Total liabilities and stockholders’ equity | $ 257,463,000 | $ 255,399,000 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2016 | Sep. 30, 2016 |
Notes Payable, Noncurrent | $ 56.3 | $ 57.3 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 13,336,508 | 13,336,508 |
Common stock, outstanding (in shares) | 11,876,224 | 11,876,224 |
Treasury stock, shares (in shares) | 1,460,284 | 1,460,284 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||
Finance income, net | $ 4,001,000 | $ 5,142,000 |
Personal injury claims income | 2,302,000 | 3,085,000 |
Unrealized Gain (Loss) on Structured Settlements | (955,000) | 1,527,000 |
Interest income on structured settlements | 1,901,000 | 1,407,000 |
Disability fee income | 1,354,000 | 659,000 |
Total revenues | 8,603,000 | 11,820,000 |
Other income — includes ($45,000) and ($31,000) during the three month periods ended December 31, 2016 and 2015, respectively, of accumulated other comprehensive income reclassification for unrealized net (losses) / gains on available for sale securities | 559,000 | 515,000 |
9,162,000 | 12,335,000 | |
Expenses: | ||
General and administrative | 10,983,000 | 8,239,000 |
Interest | 934,000 | 728,000 |
11,917,000 | 8,967,000 | |
(Loss) income before income tax | (2,755,000) | 3,368,000 |
Income tax (benefit)/expense — includes tax benefit of $18,000 and $11,000 during the three month periods ended December 31, 2016 and 2015, respectively, of accumulated other comprehensive income reclassifications for unrealized net (losses) / gains on available for sale securities | (1,119,000) | 1,033,000 |
Net (loss) income | (1,636,000) | 2,335,000 |
Less: net income attributable to non-controlling interests | 21,000 | 529,000 |
Net (loss) income attributable to Asta Funding, Inc. | $ (1,657,000) | $ 1,806,000 |
Net (loss) income per share attributable to Asta Funding, Inc.: | ||
Basic (in dollars per share) | $ (0.14) | $ 0.15 |
Diluted (in dollars per share) | $ (0.14) | $ 0.15 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 11,876,224 | 12,155,421 |
Diluted (in shares) | 11,876,224 | 12,431,886 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification for unrealized net gain (loss) on available for sale securities | $ (45,000) | $ (31,000) |
Income tax (benefit) expense | $ 18,000 | $ 11,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net (loss) income | $ (1,636,000) | $ 2,335,000 |
Net unrealized securities (loss) gain, net of tax benefit/(expense) of $826,000 and ($190,000) during the three month periods ended December 31, 2016 and 2015, respectively. | (1,239,000) | 336,000 |
Reclassification adjustments for securities sold, net of tax benefit of $18,000 and $11,000 during the three month periods ended December 31, 2016 and 2015, respectively. | (27,000) | (20,000) |
Foreign currency translation, net of tax benefit/(expense) of $246,000 and ($161,000) during the three month periods ended December 31, 2016 and 2015, respectively. | (369,000) | 242,000 |
Other comprehensive income (loss) | (1,635,000) | 558,000 |
Total comprehensive income (loss) | $ (3,271,000) | $ 2,893,000 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net unrealized securities gain (loss), tax benefit (expense) | $ 826,000 | $ (190,000) |
Reclassification adjustments for securities, tax (expense) benefit | 18,000 | 11,000 |
Foreign currency translation, tax benefit | $ 246,000 | $ (161,000) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) | 13,061,673 | ||||||
Balance | $ 131,000 | $ 65,011,000 | $ 120,611,000 | $ (1,685,000) | $ (1,751,000) | $ (997,000) | $ 181,320,000 |
Balance (in shares) | 13,061,673 | ||||||
Balance | $ 131,000 | 65,011,000 | 120,611,000 | (1,685,000) | (1,751,000) | (997,000) | 181,320,000 |
Balance at Dec. 31, 2015 | $ 132,000 | 65,420,000 | 122,417,000 | (1,127,000) | (8,931,000) | (1,833,000) | 176,078,000 |
Balance (in shares) at Sep. 30, 2015 | 13,061,673 | ||||||
Balance at Sep. 30, 2015 | $ 131,000 | 65,011,000 | 120,611,000 | (1,685,000) | (1,751,000) | (997,000) | 181,320,000 |
Stock based compensation expense | 283,000 | 283,000 | |||||
Restricted stock (in shares) | 5,000 | ||||||
Net (loss) income | 1,806,000 | 529,000 | 2,335,000 | ||||
Amount reclassified from other comprehensive (loss) income | (20,000) | (20,000) | |||||
Unrealized (loss) on marketable securities, net | 336,000 | 336,000 | |||||
Purchase of treasury stock | (7,180,000) | (7,180,000) | |||||
Foreign currency translation, net | 242,000 | 242,000 | |||||
Purchase of subsidiary shares from non-controlling interest | (873,000) | (927,000) | (1,800,000) | ||||
Issuance of restricted stock to purchase subsidiary shares from non-controlling interest (in shares) | 123,304 | ||||||
Issuance of restricted stock to purchase subsidiary shares from non-controlling interest | $ 1,000 | 999,000 | 1,000,000 | ||||
Distributions to non-controlling interest | (438,000) | (438,000) | |||||
Balance (in shares) at Dec. 31, 2015 | 13,189,977 | ||||||
Balance (in shares) | 13,189,977 | ||||||
Balance | $ 132,000 | 65,420,000 | 122,417,000 | (1,127,000) | (8,931,000) | (1,833,000) | 176,078,000 |
Balance (in shares) | Scenario, Previously Reported [Member] | 13,336,508 | ||||||
Balance (in shares) | 13,336,508 | ||||||
Balance | Scenario, Previously Reported [Member] | $ 133,000 | 67,026,000 | 128,471,000 | 86,000 | (12,925,000) | (645,000) | 182,146,000 |
Balance | 133,000 | 67,026,000 | 128,063,000 | 86,000 | (12,925,000) | (645,000) | 181,738,000 |
Correction of unallocated collection expenses | (408,000) | (408,000) | |||||
Balance (in shares) | Scenario, Previously Reported [Member] | 13,336,508 | ||||||
Balance (in shares) | 13,336,508 | ||||||
Balance | Scenario, Previously Reported [Member] | $ 133,000 | 67,026,000 | 128,471,000 | 86,000 | (12,925,000) | (645,000) | 182,146,000 |
Balance | 133,000 | 67,026,000 | 128,063,000 | 86,000 | (12,925,000) | (645,000) | 178,281,000 |
Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2016 | 179,710,000 | ||||||
Balance at Dec. 31, 2016 | $ 133,000 | 67,020,000 | 126,406,000 | (1,549,000) | (12,925,000) | (804,000) | 178,281,000 |
Balance (in shares) (Scenario, Previously Reported [Member]) at Sep. 30, 2016 | 13,336,508 | ||||||
Balance (in shares) at Sep. 30, 2016 | 13,336,508 | ||||||
Balance (Scenario, Previously Reported [Member]) at Sep. 30, 2016 | $ 133,000 | 67,026,000 | 128,471,000 | 86,000 | (12,925,000) | (645,000) | 182,146,000 |
Balance at Sep. 30, 2016 | 133,000 | 67,026,000 | 128,063,000 | 86,000 | (12,925,000) | (645,000) | 181,738,000 |
Stock based compensation expense | (6,000) | (6,000) | |||||
Net (loss) income | Scenario, Previously Reported [Member] | (636,000) | ||||||
Net (loss) income | (1,657,000) | 21,000 | (1,636,000) | ||||
Amount reclassified from other comprehensive (loss) income | (27,000) | (27,000) | |||||
Unrealized (loss) on marketable securities, net | (1,239,000) | (1,239,000) | |||||
Foreign currency translation, net | Scenario, Previously Reported [Member] | (348,000) | ||||||
Foreign currency translation, net | (369,000) | (369,000) | |||||
Distributions to non-controlling interest | (180,000) | (180,000) | |||||
Balance (in shares) at Dec. 31, 2016 | 13,336,508 | ||||||
Balance (in shares) | 13,336,508 | ||||||
Balance | Scenario, Previously Reported [Member] | 179,710,000 | ||||||
Balance | $ 133,000 | $ 67,020,000 | $ 126,406,000 | $ (1,549,000) | $ (12,925,000) | $ (804,000) | $ 178,281,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,636,000) | $ 2,335,000 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 136,000 | 120,000 |
Deferred income taxes | (211,000) | (876,000) |
Stock based compensation | (6,000) | 283,000 |
Loss on sale of available-for-sale securities | 45,000 | 31,000 |
Structured settlements – accrued interest | (1,567,000) | (1,302,000) |
Structured settlements – gains (losses) | 955,000 | (1,527,000) |
Unrealized gain on other investments | (18,000) | (62,000) |
Unrealized foreign exchange loss on other investments | 254,000 | 118,000 |
Changes in: | ||
Prepaid and income taxes receivable | (4,387,000) | 906,000 |
Due from third party collection agencies and attorneys | (30,000) | 493,000 |
Other assets | (126,000) | (423,000) |
Income taxes payable | (252,000) | |
Other liabilities | 1,273,000 | (219,000) |
Net cash used in operating activities | (5,570,000) | (123,000) |
Cash flows from investing activities: | ||
Purchase of consumer receivables acquired for liquidation | (2,213,000) | (4,419,000) |
Principal collected on receivables acquired for liquidation | 2,641,000 | 2,184,000 |
Purchase of available-for-sale securities | (7,568,000) | (7,136,000) |
Proceeds from sale of available-for-sale securities | 7,132,000 | 12,303,000 |
Purchase of non-controlling interest | (800,000) | |
Investments in personal injury claims – advances | (5,178,000) | (7,013,000) |
Investments in personal injury claims – receipts | 5,592,000 | 9,049,000 |
Capital expenditures | (6,000) | (26,000) |
Investments in structured settlements – advances | (4,595,000) | (4,179,000) |
Investments in structured settlements – receipts | 1,963,000 | 1,661,000 |
Net cash (used in)/provided by investing activities | (2,232,000) | 1,624,000 |
Cash flows from financing activities: | ||
Purchase of treasury stock | (7,180,000) | |
Change in restricted cash | (8,165,000) | |
Distributions to non-controlling interest | (180,000) | (438,000) |
Borrowings of other debt – CBC | 5,309,000 | 5,532,000 |
Repayment of other debt – CBC | (1,178,000) | (1,226,000) |
Net cash used in financing activities | (4,214,000) | (3,312,000) |
Net decrease in cash and cash equivalents | (12,016,000) | (1,811,000) |
Cash and cash equivalents at beginning of period | 18,526,000 | 24,315,000 |
Cash and cash equivalents at end of period | 6,510,000 | 22,504,000 |
Supplemental disclosure of cash flow information : | ||
Cash paid for: Interest | 914,000 | 763,000 |
Cash paid for: Income taxes | 6,200,000 | |
Supplemental disclosure of non-cash flow investing activities : | ||
Issuance of restricted stock to purchase subsidiary shares from non-controlling interest | $ 1,000,000 |
Note 1 - Restatement of Financi
Note 1 - Restatement of Financial Statements | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Accounting Changes and Error Corrections [Text Block] | Note 1— Restatement of Financial Statements The Company has restated its quarterly unaudited consolidated financial statements as of and for the period ended December 31, 2016. 10 December 31, 2016, not $2.6 $1.0 December 31, 2016. December 2016 two In addition, during Q1 2017, $0.4 2014 2016. not September 30, 2016, not $0.6 $0.2 $0.4 September 30, 2016. The following tables summarize the effects of the restatements on the specific items presented in the Company’s consolidated financial statements previously included in the Quarterly Report: Consolidated Balance Sheet December 31, 2016 As Reported Adjustments Restated Cash and cash equivalents $ 16,041,000 $ (9,531,000 ) (1)(2) $ 6,510,000 Restricted cash — 8,165,000 (1) 8,165,000 Consumer receivables acquired for liquidation 11,884,000 1,359,000 (2) 13,243,000 Structured settlements 91,505,000 (2,553,000 ) (3) 88,952,000 Due from third party collection agencies and attorneys 937,000 98,000 (2) 1,035,000 Prepaid and income taxes receivable 4,358,000 909,000 (4) 5,267,000 Deferred income taxes 16,476,000 109,000 (2)(4) 16,585,000 Other assets 8,441,000 2,000 (2) 8,443,000 Total assets $ 258,905,000 $ (1,442,000 ) $ 257,463,000 Other liabilities 7,629,000 (13,000 ) (2) 7,616,000 Total liabilities 79,195,000 (13,000 ) 79,182,000 Retained earnings 127,814,000 (1,408,000 ) (1)(2)(4) 126,406,000 Accumulated other comprehensive loss (1,528,000 ) (21,000 ) (2)(4) (1,549,000 ) Total stockholders’ equity 179,710,000 (1,429,000 ) 178,281,000 Total liabilities and stockholders’ equity $ 258,905,000 $ (1,442,000 ) $ 257,463,000 Consolidated Statement of Operations December 31,2016 As Reported Adjustments Restated Revenues: Finance income, net $ 3,298,000 $ 703,000 (2)(5) $ 4,001,000 Unrealized gain (loss) on structured settlements 1,598,000 (2,553,000 ) (3) (955,000 ) Total revenues 10,453,000 (1,850,000 ) 8,603,000 Other income 466,000 93,000 (2) 559,000 General and administrative 10,931,000 52,000 (2) 10,983,000 Interest 976,000 (42,000 ) (2) 934,000 11,907,000 10,000 11,917,000 Loss before income taxes (988,000 ) (1,767,000 ) (2,755,000 ) Income tax benefit (352,000 ) (767,000 ) (4) (1,119,000 ) Net Loss (636,000 ) (1,000,000 ) (1,636,000 ) Net loss attributable to Asta Funding, Inc. $ (657,000 ) $ (1,000,000 ) $ (1,657,000 ) Basic and diluted loss per share $ (0.06 ) $ (0.08 ) $ (0.14 ) Consolidated Statement of Comprehensive Loss December 31,2016 As Reported Adjustments Restated Net loss (636,000 ) (1,000,000 ) (1,636,000 ) Foreign currency translation (348,000 ) (21,000 ) (2)(4) (369,000 ) Total comprehensive loss $ (2,250,000 ) $ (1,021,000 ) $ (3,271,000 ) Consolidated Statement of Cash Flows December 31, 2016 As Reported Adjustments Restated Cash flows from operating activities: Net loss $ (636,000 ) $ (1,000,000 ) $ (1,636,000 ) Adjustments to reconcile net loss to net cash used in operating activities: Deferred income taxes (102,000 ) (109,000 ) (2)(4) (211,000 ) Structured settlements - gains (1,598,000 ) 2,553,000 (3) 955,000 Prepaid and income taxes receivable (3,478,000 ) (909,000 ) (4) (4,387,000 ) Due from third party collection agencies and attorneys 68,000 (98,000 ) (2) (30,000 ) Other assets (124,000 ) (2,000 ) (2) (126,000 ) Income tax payable (493,000 ) 241,000 (5) (252,000 ) Other liabilities 1,307,000 (34,000 ) (2) 1,273,000 Net cash used in operating activities (6,212,000 ) 642,000 (5,570,000 ) Cash flows from investing activities: Purchase of consumer receivables acquired for liquidation (463,000 ) (1,750,000 ) (2) (2,213,000 ) Principal collected on receivables acquired for liquidation 2,899,000 (258,000 ) (2) 2,641,000 Net cash used in investing activities (224,000 ) (2,008,000 ) (2,232,000 ) Cash flows from financing activities: Change in restricted cash — (8,165,000 ) (1) (8,165,000 ) Net cash provided by (used in) financing activities 3,951,000 (8,165,000 ) (4,214,000 ) Net decrease in cash and cash equivalents (2,485,000 ) (9,531,000 ) (1)(2) (12,016,000 ) Cash and cash equivalents at beginning of period 18,526,000 — 18,526,000 Cash and cash equivalents at end of period $ 16,041,000 $ (9,531,000 ) $ 6,510,000 ( 1 $8.2 ( 2 Consists of (i) an asset reclassification on the balance sheet of $1.4 December 2016 two ( 3 Structured settlements fair value adjustment to reflect underlying benchmark interest rate changes at December 31, 2016. ( 4 Income tax provision adjustments for impact on current year restatement and prior period correction of error. ( 5 Prior period correction of error impact on current year which consists of (i) increase of $0.6 $0.2 $0.4 |
Note 2 - Business and Basis of
Note 2 - Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 2—Business Business Asta Funding, Inc., together with its wholly owned significant operating subsidiaries Palisades Collection, LLC, Palisades Acquisition XVI, LLC (“Palisades XVI”), VATIV Recovery Solutions LLC (“VATIV”), ASFI Pegasus Holdings, LLC (“APH”), Fund Pegasus, LLC (“Fund Pegasus”), GAR Disability Advocates, LLC (“GAR Disability Advocates”), CBC Settlement Funding, LLC (“CBC”), Simia Capital, LLC (“Simia”) and other subsidiaries, not 80% Consumer receivables The Company started out in the consumer receivables business in 1994. not 2010. Personal injury claims Pegasus conducts its business solely in the United States. Pegasus obtains its business from external brokers and internal sales professionals soliciting individuals with personal injury claims. Business is also obtained from the Pegasus website and through attorneys. The newly-formed, wholly owned subsidiary, Simia, also engages in the personal injury claims business. Structured settlements CBC purchases structured settlement and annuity policies through privately negotiated direct consumer purchases and brokered transactions across the United States. CBC funds the purchases primarily from cash, its revolving line of credit, and its securitized debt, issued through its Blue Bell Receivables (“BBR”) subsidiaries. Social security benefit advocacy GAR Disability Advocates provides its disability advocacy services throughout the United States. It relies upon search engine optimization (“SEO”) to bring awareness to its intended market. Basis of Presentation The consolidated balance sheet as of December 31, 2016, three December 31, 2016 2015, three December 31, 2016 2015, three months ended December 31, 2016 2015, three December 31, 2016 2015, September 30, 2016 10 September 30, 2016. December 31, 2016, three December 31, 2016 2015 three December 31, 2016 2015 three December 31, 2016 2015 not The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10 01 X not 10 September 30, 2016 The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates including management’s estimates of future cash flows and the resulting rates of return. Principles of Consolidation The consolidated financial statements include the accounts of Asta Funding, Inc. and its wholly owned and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Concentration of Credit Risk – Cash and Restricted Cash (restated) The Company considers all highly liquid investments with a maturity date of three Cash balances are maintained at various depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company had cash balances with 7 December 31, 2016 $2.9 two $0.5 not $8.2 not 9 not Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination, and is accounted for under ASC 350. fourth not not two 1 not no 2 2 $2.8 $1.4 $1.4 Recent Accounting Pronouncements In May 2014, 606, December 15, 2017 December 15, 2016, not In January 2016, No. 2016 01, 825 10 December 15, 2017, In February 2016, No. 2016 02 842 December 15, 2018 may In March 2016, No. 2016 09, 718 December 15, 2016, In June 2016, 2016 13, 326 December 15, 2019. In August 2016, 2016 15, 230 eight December 15, 2017. not |
Note 3 - Available-for-sale Inv
Note 3 - Available-for-sale Investments | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Available-for-sale Investments [Text Block] | Note 3—Available Investments classified as available-for-sale at December 31, 2016 September 30, 2016, Amortized Unrealized Unrealized Fair Value December 31, 2016 $ 56,115,000 $ 29,000 $ (1,099,000 ) $ 55,045,000 September 30, 2016 $ 55,724,000 $ 1,089,000 $ (49,000 ) $ 56,764,000 The available-for-sale investments do not two three months ended December 31, 2016, $45,000. $177,000 three months ended December 31, 2016. three months ended December 31, 2015, two $31,000 $47,000 $132,000 $16,000 three months ended December 31, 2016 2015, At December 31, 2016, seven five 12 Unrealized holding gains and losses on available-for-sale securities are included in other comprehensive income within stockholders’ equity. Realized gains (losses) on available-for-sale securities are included in other income and, when applicable, are reported as a reclassification adjustment in other comprehensive income. |
Note 4 - Consumer Receivables A
Note 4 - Consumer Receivables Acquired for Liquidation (Restated) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4—Consumer Accounts acquired for liquidation are stated at their net estimated realizable value and consist primarily of defaulted consumer loans of individuals primarily throughout the United States and South America. The Company may • the interest method; or • the cost recovery method. Prior to October 1, 2013 310, 310 30, October 1, 2013, Although the Company has switched to the cost recovery method on its current inventory of portfolios, the Company must still analyze a portfolio upon acquisition to ensure which method is appropriate, and once a static pool is established for a quarter, individual receivable accounts are not The Company uses the cost recovery method when collections on a particular pool of accounts cannot be reasonably predicted. Under the cost recovery method, no zero The Company has extensive liquidating experience in the field of distressed credit card receivables, telecommunication receivables, consumer loan receivables, retail installment contracts, consumer receivables, and auto deficiency receivables. The Company aggregates portfolios of receivables acquired sharing specific common characteristics which were acquired within a given quarter. In addition, the Company uses a variety of qualitative and quantitative factors to estimate collections and the timing thereof. The Company obtains and utilizes, as appropriate, input, including but not third The following tables summarize the changes in the consolidated balance sheet account of consumer receivables acquired for liquidation during the following periods: For the Three Months Ended December 31, 2016 (restated) 2015 Balance, beginning of period $ 13,671,000 $ 15,608,000 Acquisitions of receivable portfolios 2,213,000 4,419,000 Net cash collections from collection of consumer receivables acquired for liquidation (6,179,000 ) (7,293,000 ) Net cash collections represented by account sales of consumer receivables acquired for liquidation (190,000 ) — Effect of foreign currency translation (273,000 ) (33,000 ) Finance income recognized 4,001,000 5,142,000 Balance, end of period $ 13,243,000 $ 17,843,000 Finance income as a percentage of collections 62.8 % 70.5 % During the three December 31, 2016, $35.0 $2.2 three months ended December 31, 2015, $97.7 $4.4 The following table summarizes collections received by the Company’s third three December 31, 2016 2015, For the Three Months Ended December 31 , 2016 (restated) 2015 Gross collections (1) $ 11,495,000 $ 11,411,000 Commissions and fees (2) 5,126,000 4,118,000 Net collections $ 6,369,000 $ 7,293,000 ( 1 Gross collections include: collections from third ( 2 Commissions and fees are the contractual commission earned by third 3% December 2007. |
Note 5 - Acquisition of CBC
Note 5 - Acquisition of CBC | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 5—Acquisition On December 31, 2013, 80% $5.9 On December 31, 2015, 20% $1,800,000, $1,000,000 $800,000 two 61,652 $7.95 $400,000 123,304 one December 31, 2016 ( 15 On January 1, 2016, two one two December 2016. not January 1, 2017 ( 11 |
Note 6 - Structured Settlements
Note 6 - Structured Settlements (Restated) (At Fair Value) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Structured Settlements Disclosure [Text Block] | Note 6—Structured CBC purchases periodic payments under structured settlements and annuity policies from individuals in exchange for a lump sum payment. The Company elected to carry the structured settlements at fair value. Unearned income on structured settlements is recognized as interest income using the effective interest method over the life of the related structured settlement. Changes in fair value are recorded in unrealized gain (loss) on structured settlements in the Company’s statements of operations. Unrealized gains on structured settlements is comprised of both unrealized gains resulting from fair market valuation at the date of acquisition of the structured settlements and the subsequent fair value adjustments resulting from the change in the discount rate. Of the $1.0 three December 31, 2016, $2.1 one $0.5 $2.6 The Company elected the fair value treatment under ASC 825 10 50 28 50 32 The purchased personal injury structured settlements result in payments over time through an annuity policy. Most of the annuities acquired involve guaranteed payments with specific defined ending dates. CBC also purchases a small number of life contingent annuity payments with specific ending dates but the actual payments to be received could be less due to the mortality risk associated with the measuring life. CBC records a provision for loss each period. The life contingent annuities are not December 31, 2016 three December 31, 2016. Structured settlements consist of the following as of December 31, 2016 September 30, 2015: December 31 , September 30, Maturity (1) (2) $ 143,226,000 $ 133,059,000 Unearned income (54,274,000 ) (47,351,000 ) Structured settlements, net $ 88,952,000 $ 85,708,000 ( 1 The maturity value represents the aggregate unpaid principal balance at December 31, 2016 September 30, 2016. ( 2 There are no December 31, 2016 September 30, 2016. Encumbrances on structured settlements as of December 31, 2016 September 30, 2016 December 31 , September 30, Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (3) $ 1,817,000 $ 1,862,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (3) 4,138,000 4,242,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (3) 3,948,000 3,987,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 (3) 18,601,000 18,978,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 (3) 14,193,000 14,507,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2043 (3) 13,605,000 13,705,000 $25,000,000 revolving line of credit (3) 15,264,000 10,154,000 Encumbered structured settlements 71,566,000 67,435,000 Structured settlements not encumbered 17,386,000 18,273,000 Total structured settlements $ 88,952,000 $ 85,708,000 ( 3 See Note 10 At December 31, 2016, September 30, 2017 (9 months) $ 7,635,000 September 30, 2018 8,556,000 September 30, 2019 8,914,000 September 30, 2020 8,371,000 September 30, 2021 9,105,000 Thereafter 100,645,000 Total $ 143,226,000 |
Note 7 - Litigation Funding
Note 7 - Litigation Funding | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Other Investments Disclosure [Text Block] | Note 7—Litigation Personal Injury Claims On December 28, 2011, $2.3 $3.1 first 2017 2016, $47.9 $48.3 December 31, 2016 September 30, 2016, December 31, 2016 2015 $9.5 $5.5 For the Three Months Ended December 31, 2016 2015 Balance at beginning of period $ 8,542,000 $ 5,459,000 Provisions for losses 1,389,000 412,000 Write offs (389,000 ) (375,000 ) Balance at end of period $ 9,542,000 $ 5,496,000 On November 8, 2016, 80% 20% not December 28, 2016. December 28, 2011 ( Pursuant to the Term Sheet, the parties agreed that Pegasus will continue in existence in order to collect advances on its existing Portfolio. The Company will fund overhead expenses relating to the collection of its Portfolio based on a budget agreed upon by the Company and PLF. Any cash received by Pegasus will be distributed to its members in the order provided for in the Operating Agreement. The Company will be repaid an amount equal to 20% October 1, 2016 January 2, 2017, In connection with the Term Sheet, the parties also entered into a customary mutual release and non-disparagement agreement as well as a release from the non-competition obligations under the Operating Agreement. On November 11, 2016, Matrimonial Claims (included in Other Assets) On May 8, 2012, 60% 40% $1.0 twenty-four September 2014, August 2016, $1.5 August 14, 2016, March 31, 2017, September 2014 December 31, 2016 $1.5 December 31, 2016, $2.5 no three December 31, 2016 2015. |
Note 8 - Furniture and Equipmen
Note 8 - Furniture and Equipment | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 8—Furniture Furniture and equipment consist of the following as of the dates indicated: December 31, 2016 September 30, 2016 Furniture $ 417,000 $ 417,000 Equipment 234,000 234,000 Software 1,356,000 1,350,000 2,007,000 2,001,000 Less accumulated depreciation and amortization 1,788,000 1,758,000 Balance, end of period $ 219,000 $ 243,000 |
Note 9 - Non Recourse Debt
Note 9 - Non Recourse Debt | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9—Non Non-Recourse Debt –Bank of Montreal (“BMO”) In March 2007, $227 July 2007, December 2007, May 2008, February 2009, October 2010 August 2013 ( $300 three August 2013. On August 7, 2013, 100% $15 $15 30% $15 June 3, 2014, $2,901,199 $1,866,036 $16.9 During the month of June, 2016, $16.9 December 31, 2016, $179,000, January 10, 2017. Bank Hapoalim B.M. (“Bank Hapoalim”) Line of Credit (restated) On May 2, 2014, $20 $20.0 $30 three 275 $150 March 30, 2016, 225 $50 $100 No $8.2 2 not no December 31, 2016. |
Note 10 - Other Debt - CBC
Note 10 - Other Debt - CBC | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Other Debt Disclosure [Text Block] | Note 10—Other The Company assumed $25.9 5 December 31, 2013, $12.5 5.5%. March 27, 2014 September 29, 2014, three $22.0 4.75%. March 11, 2015, March 1, 2015, February 28, 2015 March 1, 2017. $22.0 $25.0 4.75% 4.1%. November 26, 2014, fourth $21.8 5.4%. September 25, 2015, fifth $16.6 5.1%. July 8, 2016, $14.8 4.85%. As of December 31, 2016, $71.6 $15.3 $56.3 100% December 31, 2016 September 30, 2016: Interest Rate December 30 , September 30, 6 Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 8.75 % $ 1,817,000 $ 1,862,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 7.25 % 4,138,000 4,242,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 7.125 % 3,948,000 3,987,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 5.39 % 18,601,000 18,978,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 5.07 % 14,193,000 14,507,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2043 4.85 % 13,605,000 13,705,000 Subtotal notes payable 56,302,000 57,281,000 $25,000,000 revolving line of credit expiring on March 1, 2017 4.1 % 15,264,000 10,154,000 Total debt – CBC $ 71,566,000 $ 67,435,000 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 11—Commitments Employment Agreements On November 11, 2016, $250,000, 15% 18%. third 15% five may may two two The employment contracts of the original two December 2016. not January 1, 2017. Leases The Company leases its facilities in Englewood Cliffs, NJ, Houston, TX, New York, NY, and Conshohocken, PA. Legal Matters In June 2015, one third The Company filed a motion to strike the class action allegations and compel arbitration or, to the extent the court declines to order arbitration, to dismiss the RICO claims. On or about March 31, 2015, July 2015, $13,000 $39,000. July 24, 2015. third not The plaintiffs’ attorneys advised that they were contemplating the filing of another putative class action complaint against the Company alleging substantially the same claims as those that were asserted in this matter. In anticipation of such an eventuality, the Company agreed to non-binding mediation in order to reach a global settlement with other putative class members, which would avert the possibility of further individual or class actions with respect to the affected accounts. Through March 31, 2016, two $3.9 $2.0 three months ended March 31, 2016, The Company reassessed the situation as of September 30, 2016 $0.3 three September 30, 2016. December 31, 2016 $2.3 In the ordinary course of the Company’s business, it is involved in numerous legal proceedings. The Company regularly initiates collection lawsuits, using its network of third not 10 not |
Note 12 - Income Recognition, I
Note 12 - Income Recognition, Impairments, and Commissions and Fees | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Recognition, Impairments, and Commissions and Fees [Text Block] | Note 12—Income Income Recognition The Company accounts for certain of its investments in finance receivables using the guidance of FASB Accounting Standards Codification (“ASC”), Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310” 310, Under the guidance of ASC 310 30, not The Company uses the cost recovery method when collections on a particular pool of accounts cannot be reasonably predicted. Under the cost recovery method, no zero The Company accounts for its investments in personal injury claims at an agreed upon interest rate, in anticipation of a future settlement. The interest purchased by Pegasus in each claim consists of the right to receive from such claimant part of the proceeds or recoveries which such claimant receives by reason of a settlement, judgment or award with respect to such claimant’s claim. Open case revenue is estimated, recognized and accrued at a rate based on the expected realization and underwriting guidelines and facts and circumstances for each individual case. These personal injury claims are non-recourse. When a case is closed and the cash is received for the advance provided to a claimant, revenue is recognized based upon the contractually agreed upon interest rate, and, if applicable, adjusted for any changes due to a settled amount and fees charged to the claimant. The funding of matrimonial actions is on a non-recourse basis. Revenue from matrimonial actions is recognized under the cost recovery method. CBC purchases periodic payments under structured settlements and annuity policies from individuals in exchange for a lump sum payment. The Company elected to carry structured settlements at fair value. Unearned income on structured settlements is recognized as interest income using the effective interest method over the life of the related settlement. Changes in fair value are recorded in unrealized gain (loss) in structured settlements in our statements of operations. The Company recognizes revenue for GAR Disability Advocates when cases close and fees are collected. Impairments The Company accounts for its impairments in accordance with ASC 310, 310 310 not In October 2014, $5.0 14% June December December 2015, no not During the fiscal year 2016, $1.0 $3,354,000 December 31, 2016. Commissions and fees Commissions and fees are the contractual commissions earned by third third |
Note 13 - Income Taxes (Restate
Note 13 - Income Taxes (Restated) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 13—Income At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. The estimate is used in providing for income taxes on a year-to-date basis and may three months ended December 31, 2016 41%, 31% 2017 34% 2016 35% The Company files income tax returns in the U.S federal jurisdiction, various state jurisdictions, and various foreign countries. The tax returns for the 2014 2015 not |
Note 14 - Net (Loss) Income Per
Note 14 - Net (Loss) Income Per Share (Restated) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 14—Net Basic per share data is calculated by dividing net (loss) income by the weighted average shares outstanding during the period. Diluted earnings per share is calculated similarly, except that it includes the dilutive effect of the assumed exercise of securities, including the effect of shares issuable under the Company’s stock based compensation plans. With respect to the assumed proceeds from the exercise of dilutive options, the treasury stock method is calculated using the average market price for the period. The following table presents the computation of basic and diluted per share data for the three months ended December 31, 2016 2015: Three Months Ended December 31, 2016 (restated) Three Months Ended December 31, 2015 Net Weighted Average Per Share Net Weighted Average Per Share Basic $ (1,657,000 ) 11,876,224 $ (0.14 ) $ 1,806,000 12,155,421 $ 0.15 Effect of Dilutive Stock — — 276,465 — Diluted $ (1,657,000 ) 11,876,224 $ (0.14 ) $ 1,806,000 12,431,886 $ 0.15 For the three months ended December 31, 2015, 454,205 $9.47 not |
Note 15 - Stock Based Compensat
Note 15 - Stock Based Compensation | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 15—Stock The Company accounts for stock-based employee compensation under ASC 718, 718” 718 On December 16, 2015, 67,100 9,100 58,000 three one Risk-free interest rate 0.24 % Expected term (years) 6.25 Expected volatility 23.4 % Dividend yield 0.00 % On December 16, 2015, 5,000 December 31, 2015, 123,304 two 5 one December 31, 2016 ( 5 |
Note 16 - Stock Option Plans
Note 16 - Stock Option Plans | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stock Option Plans [Text Block] | Note 16—Stock 2012 On February 7, 2012, 2012 “2012 March 21, 2012. 2012 The 2012 The Company authorized 2,000,000 2012 2012 484,200 245,625 66,568 1,336,743 December 31, 2016. December 31, 2016, 129 2012 Equity Compensation Plan On December 1, 2005, March 1, 2006. 2002 In addition to permitting the grant of stock options as are permitted under the 2002 The Company authorized 1,000,000 March 21, 2012, no 2002 On March 5, 2002, 2002 “2002 May 1, 2002. 2002 The 2002 422 1986, not The Company authorized 1,000,000 2002 March 5, 2012, no Summary of the Plans Compensation expense for stock options and restricted stock is recognized over the vesting period. Compensation expense for restricted stock is based upon the market price of the shares underlying the awards on the grant date. The following table summarizes stock option transactions under the 2012 2002 Three Months Ended December 31 , 2016 2015 Number Weighted Number Weighted Outstanding options at the beginning of period 949,667 $ 8.47 1,043,566 $ 8.47 Options granted — — 67,100 7.93 Options exercised — — — — Options forfeited/cancelled (52,500 ) 14.16 — — Outstanding options at the end of period 897,167 $ 8.14 1,110,666 $ 8.43 Exercisable options at the end of period 844,829 $ 8.15 965,325 $ 8.46 The following table summarizes information about the 2012 2002 December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Weighted Number Weighted $2.8751 - $5.7500 3,800 2.3 $ 2.95 3,800 $ 2.95 $5.7501 - $8.6250 768,867 5.2 7.96 716,529 7.96 $8.6251 - $11.5000 124,500 6.1 9.40 124,500 9.40 897,167 5.3 $ 8.14 844,829 $ 8.15 The Company recognized ( $6,000 $196,000 three December 31, 2016 2015, December 31, 2016, $76,000 1.8 December 31, 2016 $1,490,000 $1,398,000, 5.1 no three December 31, 2016 2015. three December 31, 2016 2015 $657,000 $830,000, no three December 31, 2016. three December 31, 2015 $532,000. The following table summarizes information about restricted stock transactions: Three Months Ended December 31 , 2016 2015 Number of Weighted Number of Weighted Unvested at the beginning of period — $ — 44,107 $ 9.28 Awards granted — — 5,000 7.89 Vested — — (34,107 ) 9.57 Forfeited — — — — Unvested at the end of period — $ — 15,000 $ 7.92 The Company recognized $0 $87,000 three December 31, 2016 2015, December 31, 2016, no No three December 31, 2016. 5,000 three December 31, 2015. three December 31, 2016 2015 $0 $40,000, The Company recognized an aggregate total of ( $6,000 $283,000 three December 31, 2016 2015, December 31, 2016, $76,000 |
Note 17 - Stockholders' Equity
Note 17 - Stockholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 17—Stockholders’ Dividends are declared at the discretion of the Board and depend upon the Company’s financial condition, operating results, capital requirements and other factors that the Board deems relevant. In addition, agreements with the Company’s lenders may, December 31, 2016, no No three December 31, 2016 2015. On August 11, 2015, $15,000,000 10b 18 10b5 1 December 31, 2015. December 17, 2015 March 31, 2016 $15 March 17, 2016, $9.9 December 31, 2016 $15 March 22, 2016, no September 30, 2016, 1,186,000 $10.1 On May 25, 2016, 4, 1 2 3 As of December 31, 2016, three December 31, 2015 2016, Pursuant to the Agreement, the Company made available to Mangrove and its representatives certain confidential information relating to the Company or its subsidiaries, and Mangrove agreed to make available to the Company and its representatives certain confidential information relating to Mangrove and its affiliates (collectively, the “Confidential Information”). The Company and Mangrove agreed not not one not Further, under the terms of the Agreement, Mangrove and the Company agreed to certain restrictions during the Discussion Period, which began on May 25, 2016 not third not 220 not On November 21, 2016, 1 2 3 30 one 14A 1934, January 6, 2017 ( 22 |
Note 18 - Fair Value of Financi
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 18—Fair Disclosures about Fair Value of Financial Instruments FASB ASC 825, 825” not The estimated fair value of the Company’s financial instruments is summarized as follows: December 31, 2016 (restated) September 30, 2016 Carrying Fair Carrying Fair Financial assets Cash and cash equivalents (Level 1) $ 6,510,000 $ 6,510,000 $ 18,526,000 $ 18,526,000 Restricted cash (Level 1) 8,165,000 8,165,000 — — Available-for-sale investments (Level 1) 55,045,000 55,045,000 56,764,000 56,764,000 Consumer receivables acquired for liquidation (Level 3) 13,243,000 45,061,000 14,320,000 47,233,000 Structured settlements (Level 3) 88,952,000 88,952,000 85,708,000 85,708,000 Other investments, net (1) 3,354,000 3,354,000 3,590,000 3,590,000 Financial liabilities Other debt – CBC, revolving line of credit (Level 3) 15,264,000 15,264,000 10,154,000 10,154,000 Other debt – CBC, non-recourse notes payable with varying installments (Level 3) 56,302,000 56,302,000 57,281,000 57,281,000 ( 1 The Company has adopted ASU 2015 07 2015 07, not Disclosure of the estimated fair values of financial instruments often requires the use of estimates. The Company uses the following methods and assumptions to estimate the fair value of financial instruments: Cash and cash equivalents – The carrying amount of cash and cash equivalents approximates fair value. Restricted cash – The carrying amount of restricted cash approximates fair value. Available-for-sale investments – The available-for-sale securities consist of mutual funds that are valued based on quoted prices in active markets. Consumer receivables acquired for liquidation – The Company computed the fair value of the consumer receivables acquired for liquidation using its proprietary forecasting model. The Company’s forecasting model utilizes a discounted cash flow analysis. The Company’s cash flows are an estimate of collections for consumer receivables based on variables fully described in Note 4 Structured settlements – The Company determined the fair value based on the discounted forecasted future collections of the structured settlements. Unrealized gains on structured settlements is comprised of both unrealized gains resulting from fair market valuation at the date of acquisition of the structured settlements and the subsequent fair value adjustments resulting from the change in the discount rate. Of the $1.0 three December 31, 2016, $2.1 one $0.5 $2.6 Other investments – The Company estimated the fair value using the net asset value per share of the investment. There are no 5 October 2014). Other debt CBC, revolving line of credit – The Company determined the fair value based on similar instruments in the market. Other debt CBC, notes payable with varying installments – The fair value at December 31, 2016 Fair Value Hierarchy The Company recorded its available-for-sale investments at estimated fair value on a recurring basis. The accompanying consolidated financial statements include estimated fair value information regarding its available-for-sale investments as of December 31, 2016, 820, 820” 820 820 Level 1 Level 2 1 not Level 3 no A significant unobservable input used in the fair value measurement of structured settlements is the discount rate. Significant increases and decreases in the discount rate used to estimate the fair value of structured settlements could decrease or increase the fair value measurement of the structured settlements. The discount rate could be affected by factors, which include, but are not 10 The Company’s available-for-sale investments are classified as Level 1 not 1 three December 31, 2016. no 2 3 first three 2017. The following table sets forth the Company’s quantitative information about its Level 3 December 31, 2016: Fair Value Valuation Significant Unobservable Weighted Average Rate Structured settlements at fair value $ 88,952,000 Discounted cash flow Discount rate 4.83% - 5.36% A significant unobservable input used in the fair value measurement of the Company's structured settlements measured at fair value using unobservable inputs (Level 3 The changes in structured settlements at fair value using significant unobservable inputs (Level 3 three months ended December 31, 2016 Balance at September 30, 2016 $ 85,708,000 Fair value adjustment (2,553,000 ) Total gains included in earnings 1,598,000 Purchases 4,595,000 Interest accreted 1,567,000 Payments received (1,963,000 ) Total $ 88,952,000 The amount of total gains (losses) for the three month period included in earnings attributable to the change in unrealized gains relating to assets held at December 31, 2016 $ (955,000 ) Realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of operations for the three months ended December 31, 2016 Total gains included in the three months ended December 31, 2016 $ (955,000 ) Change in unrealized gains relating to assets still held at December 31, 2016 $ (955,000 ) |
Note 19 - Segment Reporting (Re
Note 19 - Segment Reporting (Restated) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 19—Segment The Company operates through strategic business units that are aggregated into four four • Consumer receivables - may may • Personal injury claims January 2017, not • Structured settlements • Social Security benefit advocacy – Certain non-allocated administrative costs, interest income, interest expense and various other non-operating income and expenses are reflected in Corporate. Corporate assets include cash and cash equivalents, available-for-sale securities, property and equipment, goodwill, deferred taxes and other assets. The following table shows results by reporting segment for the three December 31, 2016 2015. The Company eliminates any revenue between the segments. (Dollars in millions) Consumer Personal Injury Structured Social Security Benefit Advocacy Corporate Total Three Months Ended December 31, 2016: Total Revenues $ 4.0 $ 2.3 $ 0.9 $ 1.4 $ — $ 8.6 Other income — — — — 0.6 0.6 Income (loss) before income tax 3.3 — (1.5 ) (0.9 ) (3.7 ) (2.8 ) Total Assets 17.5 49.0 86.6 1.5 102.9 257.5 2015: Total Revenues 5.1 3.1 2.9 0.7 — 11.8 Other income — — — — 0.5 0.5 Income (loss) before income tax 4.7 1.9 0.8 (1.8 ) (2.2 ) 3.4 Total Assets 17.9 35.2 73.9 2.4 106.6 236.0 |
Note 20 - Accumulated Other Com
Note 20 - Accumulated Other Comprehensive (Loss) Income (Restated) | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 20 Accumulated other comprehensive (loss) income consists of: December 31, 2016 (restated) September 30, 2016 Unrealized gain on marketable securities Foreign currency translation, net Total Unrealized gain on marketable securities Foreign currency translation, net Total Beginning Balance $ 624,000 $ (538,000 ) $ 86,000 $ (205,000 ) $ (1,480,000 ) $ (1,685,000 ) Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of $246,000 and ($628,000) at December 31, 2016, and September 30, 2016, respectively. - (369,000 ) (369,000 ) - 942,000 942,000 Change in unrealized (losses) gains on marketable securities, net of tax benefit/ (expense) of $826,000 and ($529,000) at December 31, 2016, and September 30, 2016, respectively. (1,239,000 ) - (1,239,000 ) 868,000 - 868,000 Amount reclassified from accumulated other comprehensive loss, net of tax benefit of $18,000 and $24,000 at December 31, 2016, and September 30, 2016, respectively. (27,000 ) - (27,000 ) (39,000 ) - (39,000 ) Net current-period other comprehensive (loss) income (1,266,000 ) (369,000 ) (1,635,000 ) 829,000 942,000 $ 1,771,000 Ending balance $ (642,000 ) $ (907,000 ) $ (1,549,000 ) $ 624,000 $ (538,000 ) $ 86,000 |
Note 21 - Related Party Transac
Note 21 - Related Party Transactions | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 21—Related On September 17, 2015, not two September 17, 2017. three months ended December 31, 2016, $20,000 January 6, 2017. In addition, A. L. Piccolo & Co., Inc. (“ALP”), which is also owned by Louis Piccolo, received a fee from Pegasus which was calculated based on amounts loaned to Pegasus by Fund Pegasus up to maximum of $700,000. six 4% December 28, 2016. $33,000 three months ended December 31, 2016. |
Note 22 - Subsequent Events
Note 22 - Subsequent Events | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 22—Subsequent On January 6, 2017, The Settlement Agreement provides that, within ten 5,314,009 $10.35 no February 28, 2017. 4,005,701 not January 6, 2017 eleven $10.35 The Settlement Agreement includes customary standstill and related provisions. Mangrove and the Company also agreed on a mutual release of claims. The Settlement Agreement is terminable by either the Company or Mangrove by written notice at any time after the close of business on the second not February 28, 2017 In connection with the Settlement Agreement, the Company entered into a Voting Agreement dated January 6, 2017 ( not 49% not As contemplated by the Settlement Agreement, the Board unanimously approved an amendment dated January 6, 2017 ( January 6, 2019 13 15 1934. On January 19, 2017 5,314,009 $10.35 January 18, 2017, $10.20 The tender offer will expire on February 15, 2017, 11:59 may The Company is making the tender offer pursuant to the Settlement Agreement, by and among the Company, and certain of their respective affiliates, pursuant to which Mangrove and its affiliates will tender their 4,005,701 Upon the terms and subject to the conditions of the tender offer, stockholders will receive the purchase price in cash, less any applicable withholding taxes and without interest, for shares properly tendered (and not $10.35 5,314,009 not The Company will use a portion of its cash and cash equivalents on hand and securities available for sale to fund the purchase of shares in the tender offer. The tender offer is not The Company's directors and executive officers have informed the Company of their intention not not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The consolidated balance sheet as of December 31, 2016, three December 31, 2016 2015, three December 31, 2016 2015, three months ended December 31, 2016 2015, three December 31, 2016 2015, September 30, 2016 10 September 30, 2016. December 31, 2016, three December 31, 2016 2015 three December 31, 2016 2015 three December 31, 2016 2015 not The accompanying unaudited consolidated financial statements have been prepared in accordance with Rule 10 01 X not 10 September 30, 2016 The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates including management’s estimates of future cash flows and the resulting rates of return. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Asta Funding, Inc. and its wholly owned and majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk – Cash and Restricted Cash (restated) The Company considers all highly liquid investments with a maturity date of three Cash balances are maintained at various depository institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company had cash balances with 7 December 31, 2016 $2.9 two $0.5 not $8.2 not 9 not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination, and is accounted for under ASC 350. fourth not not two 1 not no 2 2 $2.8 $1.4 $1.4 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, 606, December 15, 2017 December 15, 2016, not In January 2016, No. 2016 01, 825 10 December 15, 2017, In February 2016, No. 2016 02 842 December 15, 2018 may In March 2016, No. 2016 09, 718 December 15, 2016, In June 2016, 2016 13, 326 December 15, 2019. In August 2016, 2016 15, 230 eight December 15, 2017. not |
Note 1 - Restatement of Finan33
Note 1 - Restatement of Financial Statements (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | December 31, 2016 As Reported Adjustments Restated Cash and cash equivalents $ 16,041,000 $ (9,531,000 ) (1)(2) $ 6,510,000 Restricted cash — 8,165,000 (1) 8,165,000 Consumer receivables acquired for liquidation 11,884,000 1,359,000 (2) 13,243,000 Structured settlements 91,505,000 (2,553,000 ) (3) 88,952,000 Due from third party collection agencies and attorneys 937,000 98,000 (2) 1,035,000 Prepaid and income taxes receivable 4,358,000 909,000 (4) 5,267,000 Deferred income taxes 16,476,000 109,000 (2)(4) 16,585,000 Other assets 8,441,000 2,000 (2) 8,443,000 Total assets $ 258,905,000 $ (1,442,000 ) $ 257,463,000 Other liabilities 7,629,000 (13,000 ) (2) 7,616,000 Total liabilities 79,195,000 (13,000 ) 79,182,000 Retained earnings 127,814,000 (1,408,000 ) (1)(2)(4) 126,406,000 Accumulated other comprehensive loss (1,528,000 ) (21,000 ) (2)(4) (1,549,000 ) Total stockholders’ equity 179,710,000 (1,429,000 ) 178,281,000 Total liabilities and stockholders’ equity $ 258,905,000 $ (1,442,000 ) $ 257,463,000 Consolidated Statement of Operations December 31,2016 As Reported Adjustments Restated Revenues: Finance income, net $ 3,298,000 $ 703,000 (2)(5) $ 4,001,000 Unrealized gain (loss) on structured settlements 1,598,000 (2,553,000 ) (3) (955,000 ) Total revenues 10,453,000 (1,850,000 ) 8,603,000 Other income 466,000 93,000 (2) 559,000 General and administrative 10,931,000 52,000 (2) 10,983,000 Interest 976,000 (42,000 ) (2) 934,000 11,907,000 10,000 11,917,000 Loss before income taxes (988,000 ) (1,767,000 ) (2,755,000 ) Income tax benefit (352,000 ) (767,000 ) (4) (1,119,000 ) Net Loss (636,000 ) (1,000,000 ) (1,636,000 ) Net loss attributable to Asta Funding, Inc. $ (657,000 ) $ (1,000,000 ) $ (1,657,000 ) Basic and diluted loss per share $ (0.06 ) $ (0.08 ) $ (0.14 ) Consolidated Statement of Comprehensive Loss December 31,2016 As Reported Adjustments Restated Net loss (636,000 ) (1,000,000 ) (1,636,000 ) Foreign currency translation (348,000 ) (21,000 ) (2)(4) (369,000 ) Total comprehensive loss $ (2,250,000 ) $ (1,021,000 ) $ (3,271,000 ) Consolidated Statement of Cash Flows December 31, 2016 As Reported Adjustments Restated Cash flows from operating activities: Net loss $ (636,000 ) $ (1,000,000 ) $ (1,636,000 ) Adjustments to reconcile net loss to net cash used in operating activities: Deferred income taxes (102,000 ) (109,000 ) (2)(4) (211,000 ) Structured settlements - gains (1,598,000 ) 2,553,000 (3) 955,000 Prepaid and income taxes receivable (3,478,000 ) (909,000 ) (4) (4,387,000 ) Due from third party collection agencies and attorneys 68,000 (98,000 ) (2) (30,000 ) Other assets (124,000 ) (2,000 ) (2) (126,000 ) Income tax payable (493,000 ) 241,000 (5) (252,000 ) Other liabilities 1,307,000 (34,000 ) (2) 1,273,000 Net cash used in operating activities (6,212,000 ) 642,000 (5,570,000 ) Cash flows from investing activities: Purchase of consumer receivables acquired for liquidation (463,000 ) (1,750,000 ) (2) (2,213,000 ) Principal collected on receivables acquired for liquidation 2,899,000 (258,000 ) (2) 2,641,000 Net cash used in investing activities (224,000 ) (2,008,000 ) (2,232,000 ) Cash flows from financing activities: Change in restricted cash — (8,165,000 ) (1) (8,165,000 ) Net cash provided by (used in) financing activities 3,951,000 (8,165,000 ) (4,214,000 ) Net decrease in cash and cash equivalents (2,485,000 ) (9,531,000 ) (1)(2) (12,016,000 ) Cash and cash equivalents at beginning of period 18,526,000 — 18,526,000 Cash and cash equivalents at end of period $ 16,041,000 $ (9,531,000 ) $ 6,510,000 |
Note 3 - Available-for-sale I34
Note 3 - Available-for-sale Investments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | Amortized Unrealized Unrealized Fair Value December 31, 2016 $ 56,115,000 $ 29,000 $ (1,099,000 ) $ 55,045,000 September 30, 2016 $ 55,724,000 $ 1,089,000 $ (49,000 ) $ 56,764,000 |
Note 4 - Consumer Receivables35
Note 4 - Consumer Receivables Acquired for Liquidation (Restated) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Consumer Receivables after Liquidation [Table Text Block] | For the Three Months Ended December 31, 2016 (restated) 2015 Balance, beginning of period $ 13,671,000 $ 15,608,000 Acquisitions of receivable portfolios 2,213,000 4,419,000 Net cash collections from collection of consumer receivables acquired for liquidation (6,179,000 ) (7,293,000 ) Net cash collections represented by account sales of consumer receivables acquired for liquidation (190,000 ) — Effect of foreign currency translation (273,000 ) (33,000 ) Finance income recognized 4,001,000 5,142,000 Balance, end of period $ 13,243,000 $ 17,843,000 Finance income as a percentage of collections 62.8 % 70.5 % |
Schedule of Collections on Gross Basis [Table Text Block] | For the Three Months Ended December 31 , 2016 (restated) 2015 Gross collections (1) $ 11,495,000 $ 11,411,000 Commissions and fees (2) 5,126,000 4,118,000 Net collections $ 6,369,000 $ 7,293,000 |
Note 6 - Structured Settlemen36
Note 6 - Structured Settlements (Restated) (At Fair Value) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Structured Settlements [Table Text Block] | December 31 , September 30, Maturity (1) (2) $ 143,226,000 $ 133,059,000 Unearned income (54,274,000 ) (47,351,000 ) Structured settlements, net $ 88,952,000 $ 85,708,000 |
Schedule of Fair Value of Debt [Table Text Block] | December 31 , September 30, Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 (3) $ 1,817,000 $ 1,862,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 (3) 4,138,000 4,242,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 (3) 3,948,000 3,987,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 (3) 18,601,000 18,978,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 (3) 14,193,000 14,507,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2043 (3) 13,605,000 13,705,000 $25,000,000 revolving line of credit (3) 15,264,000 10,154,000 Encumbered structured settlements 71,566,000 67,435,000 Structured settlements not encumbered 17,386,000 18,273,000 Total structured settlements $ 88,952,000 $ 85,708,000 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, 2017 (9 months) $ 7,635,000 September 30, 2018 8,556,000 September 30, 2019 8,914,000 September 30, 2020 8,371,000 September 30, 2021 9,105,000 Thereafter 100,645,000 Total $ 143,226,000 |
Note 7 - Litigation Funding (Ta
Note 7 - Litigation Funding (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | For the Three Months Ended December 31, 2016 2015 Balance at beginning of period $ 8,542,000 $ 5,459,000 Provisions for losses 1,389,000 412,000 Write offs (389,000 ) (375,000 ) Balance at end of period $ 9,542,000 $ 5,496,000 |
Note 8 - Furniture and Equipm38
Note 8 - Furniture and Equipment (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2016 September 30, 2016 Furniture $ 417,000 $ 417,000 Equipment 234,000 234,000 Software 1,356,000 1,350,000 2,007,000 2,001,000 Less accumulated depreciation and amortization 1,788,000 1,758,000 Balance, end of period $ 219,000 $ 243,000 |
Note 10 - Other Debt - CBC (Tab
Note 10 - Other Debt - CBC (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
CBC [Member] | |
Notes Tables | |
Other Liabilities [Table Text Block] | Interest Rate December 30 , September 30, 6 Notes payable secured by settlement receivables with principal and interest outstanding payable until June 2025 8.75 % $ 1,817,000 $ 1,862,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until August 2026 7.25 % 4,138,000 4,242,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until April 2032 7.125 % 3,948,000 3,987,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2037 5.39 % 18,601,000 18,978,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until March 2034 5.07 % 14,193,000 14,507,000 Notes payable secured by settlement receivables with principal and interest outstanding payable until February 2043 4.85 % 13,605,000 13,705,000 Subtotal notes payable 56,302,000 57,281,000 $25,000,000 revolving line of credit expiring on March 1, 2017 4.1 % 15,264,000 10,154,000 Total debt – CBC $ 71,566,000 $ 67,435,000 |
Note 14 - Net (Loss) Income P40
Note 14 - Net (Loss) Income Per Share (Restated) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, 2016 (restated) Three Months Ended December 31, 2015 Net Weighted Average Per Share Net Weighted Average Per Share Basic $ (1,657,000 ) 11,876,224 $ (0.14 ) $ 1,806,000 12,155,421 $ 0.15 Effect of Dilutive Stock — — 276,465 — Diluted $ (1,657,000 ) 11,876,224 $ (0.14 ) $ 1,806,000 12,431,886 $ 0.15 |
Note 15 - Stock Based Compens41
Note 15 - Stock Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Risk-free interest rate 0.24 % Expected term (years) 6.25 Expected volatility 23.4 % Dividend yield 0.00 % |
Note 16 - Stock Option Plans (T
Note 16 - Stock Option Plans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Three Months Ended December 31 , 2016 2015 Number Weighted Number Weighted Outstanding options at the beginning of period 949,667 $ 8.47 1,043,566 $ 8.47 Options granted — — 67,100 7.93 Options exercised — — — — Options forfeited/cancelled (52,500 ) 14.16 — — Outstanding options at the end of period 897,167 $ 8.14 1,110,666 $ 8.43 Exercisable options at the end of period 844,829 $ 8.15 965,325 $ 8.46 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Weighted Number Weighted $2.8751 - $5.7500 3,800 2.3 $ 2.95 3,800 $ 2.95 $5.7501 - $8.6250 768,867 5.2 7.96 716,529 7.96 $8.6251 - $11.5000 124,500 6.1 9.40 124,500 9.40 897,167 5.3 $ 8.14 844,829 $ 8.15 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Three Months Ended December 31 , 2016 2015 Number of Weighted Number of Weighted Unvested at the beginning of period — $ — 44,107 $ 9.28 Awards granted — — 5,000 7.89 Vested — — (34,107 ) 9.57 Forfeited — — — — Unvested at the end of period — $ — 15,000 $ 7.92 |
Note 18 - Fair Value of Finan43
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | December 31, 2016 (restated) September 30, 2016 Carrying Fair Carrying Fair Financial assets Cash and cash equivalents (Level 1) $ 6,510,000 $ 6,510,000 $ 18,526,000 $ 18,526,000 Restricted cash (Level 1) 8,165,000 8,165,000 — — Available-for-sale investments (Level 1) 55,045,000 55,045,000 56,764,000 56,764,000 Consumer receivables acquired for liquidation (Level 3) 13,243,000 45,061,000 14,320,000 47,233,000 Structured settlements (Level 3) 88,952,000 88,952,000 85,708,000 85,708,000 Other investments, net (1) 3,354,000 3,354,000 3,590,000 3,590,000 Financial liabilities Other debt – CBC, revolving line of credit (Level 3) 15,264,000 15,264,000 10,154,000 10,154,000 Other debt – CBC, non-recourse notes payable with varying installments (Level 3) 56,302,000 56,302,000 57,281,000 57,281,000 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Fair Value Valuation Significant Unobservable Weighted Average Rate Structured settlements at fair value $ 88,952,000 Discounted cash flow Discount rate 4.83% - 5.36% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Balance at September 30, 2016 $ 85,708,000 Fair value adjustment (2,553,000 ) Total gains included in earnings 1,598,000 Purchases 4,595,000 Interest accreted 1,567,000 Payments received (1,963,000 ) Total $ 88,952,000 The amount of total gains (losses) for the three month period included in earnings attributable to the change in unrealized gains relating to assets held at December 31, 2016 $ (955,000 ) |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | Total gains included in the three months ended December 31, 2016 $ (955,000 ) Change in unrealized gains relating to assets still held at December 31, 2016 $ (955,000 ) |
Note 19 - Segment Reporting (44
Note 19 - Segment Reporting (Restated) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (Dollars in millions) Consumer Personal Injury Structured Social Security Benefit Advocacy Corporate Total Three Months Ended December 31, 2016: Total Revenues $ 4.0 $ 2.3 $ 0.9 $ 1.4 $ — $ 8.6 Other income — — — — 0.6 0.6 Income (loss) before income tax 3.3 — (1.5 ) (0.9 ) (3.7 ) (2.8 ) Total Assets 17.5 49.0 86.6 1.5 102.9 257.5 2015: Total Revenues 5.1 3.1 2.9 0.7 — 11.8 Other income — — — — 0.5 0.5 Income (loss) before income tax 4.7 1.9 0.8 (1.8 ) (2.2 ) 3.4 Total Assets 17.9 35.2 73.9 2.4 106.6 236.0 |
Note 20 - Accumulated Other C45
Note 20 - Accumulated Other Comprehensive (Loss) Income (Restated) (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | December 31, 2016 (restated) September 30, 2016 Unrealized gain on marketable securities Foreign currency translation, net Total Unrealized gain on marketable securities Foreign currency translation, net Total Beginning Balance $ 624,000 $ (538,000 ) $ 86,000 $ (205,000 ) $ (1,480,000 ) $ (1,685,000 ) Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of $246,000 and ($628,000) at December 31, 2016, and September 30, 2016, respectively. - (369,000 ) (369,000 ) - 942,000 942,000 Change in unrealized (losses) gains on marketable securities, net of tax benefit/ (expense) of $826,000 and ($529,000) at December 31, 2016, and September 30, 2016, respectively. (1,239,000 ) - (1,239,000 ) 868,000 - 868,000 Amount reclassified from accumulated other comprehensive loss, net of tax benefit of $18,000 and $24,000 at December 31, 2016, and September 30, 2016, respectively. (27,000 ) - (27,000 ) (39,000 ) - (39,000 ) Net current-period other comprehensive (loss) income (1,266,000 ) (369,000 ) (1,635,000 ) 829,000 942,000 $ 1,771,000 Ending balance $ (642,000 ) $ (907,000 ) $ (1,549,000 ) $ 624,000 $ (538,000 ) $ 86,000 |
Note 1 - Restatement of Finan46
Note 1 - Restatement of Financial Statements (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Oct. 01, 2016 | Sep. 30, 2016 | |
Assets, Fair Value Adjustment | $ (2,553,000) | ||
Increase (Decrease) in Prepaid Taxes | 1,000,000 | ||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ (400,000) | $ 408,000 | |
Reclassification to Restricted Cash in Order to Serve as Collateral for the Line of Credit [Member] | |||
Current Period Reclassification Adjustment | 8,200,000 | ||
Reclassification from Cash and Cash Equivalents to an International Portfolio Acquired for Liquidation [Member] | |||
Current Period Reclassification Adjustment | 1,400,000 | ||
Increase to Finance Income [Member] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 600,000 | ||
Decrease to Income Tax Payable [Member] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 200,000 | ||
Reduction to Retained Earnings [Member] | |||
Quantifying Misstatement in Current Year Financial Statements, Amount | 400,000 | ||
Structured Settlements [Member] | |||
Assets, Fair Value Adjustment | $ (2,600,000) |
Note 1 - Restatement of Finan47
Note 1 - Restatement of Financial Statements - Adjustments to the Financial Statements (Details) - USD ($) | 3 Months Ended | ||||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | ||||
Foreign currency translation, net | $ (369,000) | $ 242,000 | |||||||
Total comprehensive loss | (3,271,000) | 2,893,000 | |||||||
Cash flows from operating activities: | |||||||||
Cash and cash equivalents | 6,510,000 | 24,315,000 | $ 6,510,000 | $ 18,526,000 | $ 22,504,000 | $ 24,315,000 | |||
Restricted cash | 8,165,000 | ||||||||
Consumer receivables acquired for liquidation (at net realizable value) | 13,243,000 | 13,671,000 | |||||||
Structured settlements (at fair value) | 88,952,000 | 85,708,000 | |||||||
Due from third party collection agencies and attorneys | 1,035,000 | 1,005,000 | |||||||
Prepaid and income taxes receivable | 5,267,000 | 880,000 | |||||||
Deferred income taxes | 16,585,000 | 15,530,000 | |||||||
Other assets | 8,443,000 | 8,423,000 | |||||||
Total assets | 257,463,000 | 255,399,000 | 236,000,000 | ||||||
Other liabilities | 7,616,000 | 5,974,000 | |||||||
Total liabilities | 79,182,000 | 73,661,000 | |||||||
Retained earnings | 126,406,000 | 128,063,000 | |||||||
Accumulated other comprehensive income (loss) | (1,549,000) | 86,000 | |||||||
Balance | 178,281,000 | 181,738,000 | $ 176,078,000 | $ 181,320,000 | |||||
Total liabilities and stockholders’ equity | 257,463,000 | 255,399,000 | |||||||
Revenues: | |||||||||
Finance income, net | 4,001,000 | 5,142,000 | |||||||
Unrealized gain (loss) on structured settlements | (955,000) | 1,527,000 | |||||||
Total revenues | 8,603,000 | 11,820,000 | |||||||
Other income | 559,000 | 515,000 | |||||||
General and administrative | 10,983,000 | 8,239,000 | |||||||
Interest | 934,000 | 728,000 | |||||||
11,917,000 | 8,967,000 | ||||||||
Loss before income taxes | (2,755,000) | 3,368,000 | |||||||
Income tax (benefit)/expense — includes tax benefit of $18,000 and $11,000 during the three month periods ended December 31, 2016 and 2015, respectively, of accumulated other comprehensive income reclassifications for unrealized net (losses) / gains on available for sale securities | (1,119,000) | 1,033,000 | |||||||
Net loss attributable to Asta Funding, Inc. | $ (1,657,000) | 1,806,000 | |||||||
Basic and diluted loss per share (in dollars per share) | $ (0.14) | ||||||||
Net (loss) income | $ (1,636,000) | 2,335,000 | |||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||
Deferred income taxes | (211,000) | (876,000) | |||||||
Structured settlements - gains | 955,000 | (1,527,000) | |||||||
Prepaid and income taxes receivable | (4,387,000) | 906,000 | |||||||
Due from third party collection agencies and attorneys | (30,000) | 493,000 | |||||||
Other assets | (126,000) | (423,000) | |||||||
Income tax payable | (252,000) | ||||||||
Other liabilities | 1,273,000 | (219,000) | |||||||
Net cash used in operating activities | (5,570,000) | (123,000) | |||||||
Cash flows from investing activities: | |||||||||
Purchase of consumer receivables acquired for liquidation | (2,213,000) | (4,419,000) | |||||||
Principal collected on receivables acquired for liquidation | 2,641,000 | 2,184,000 | |||||||
Net cash used in investing activities | (2,232,000) | 1,624,000 | |||||||
Cash flows from financing activities: | |||||||||
Change in restricted cash | (8,165,000) | ||||||||
Net cash provided by (used in) financing activities | (4,214,000) | (3,312,000) | |||||||
Net decrease in cash and cash equivalents | (12,016,000) | (1,811,000) | |||||||
Cash and cash equivalents at beginning of period | 18,526,000 | 24,315,000 | |||||||
Cash and cash equivalents at end of period | 6,510,000 | $ 22,504,000 | |||||||
Scenario, Previously Reported [Member] | |||||||||
Foreign currency translation, net | (348,000) | ||||||||
Total comprehensive loss | (2,250,000) | ||||||||
Cash flows from operating activities: | |||||||||
Cash and cash equivalents | 16,041,000 | 16,041,000 | 18,526,000 | ||||||
Restricted cash | |||||||||
Consumer receivables acquired for liquidation (at net realizable value) | 11,884,000 | ||||||||
Structured settlements (at fair value) | 91,505,000 | ||||||||
Due from third party collection agencies and attorneys | 937,000 | ||||||||
Prepaid and income taxes receivable | 4,358,000 | ||||||||
Deferred income taxes | 16,476,000 | ||||||||
Other assets | 8,441,000 | ||||||||
Total assets | 258,905,000 | ||||||||
Other liabilities | 7,629,000 | ||||||||
Total liabilities | 79,195,000 | ||||||||
Retained earnings | 127,814,000 | ||||||||
Accumulated other comprehensive income (loss) | (1,528,000) | ||||||||
Balance | 179,710,000 | 182,146,000 | |||||||
Total liabilities and stockholders’ equity | 258,905,000 | ||||||||
Revenues: | |||||||||
Finance income, net | 3,298,000 | ||||||||
Unrealized gain (loss) on structured settlements | 1,598,000 | ||||||||
Total revenues | 10,453,000 | ||||||||
Other income | 466,000 | ||||||||
General and administrative | 10,931,000 | ||||||||
Interest | 976,000 | ||||||||
11,907,000 | |||||||||
Loss before income taxes | (988,000) | ||||||||
Income tax (benefit)/expense — includes tax benefit of $18,000 and $11,000 during the three month periods ended December 31, 2016 and 2015, respectively, of accumulated other comprehensive income reclassifications for unrealized net (losses) / gains on available for sale securities | (352,000) | ||||||||
Net loss attributable to Asta Funding, Inc. | $ (657,000) | ||||||||
Basic and diluted loss per share (in dollars per share) | $ (0.06) | ||||||||
Net (loss) income | $ (636,000) | ||||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||
Deferred income taxes | (102,000) | ||||||||
Structured settlements - gains | (1,598,000) | ||||||||
Prepaid and income taxes receivable | (3,478,000) | ||||||||
Due from third party collection agencies and attorneys | 68,000 | ||||||||
Other assets | (124,000) | ||||||||
Income tax payable | (493,000) | ||||||||
Other liabilities | 1,307,000 | ||||||||
Net cash used in operating activities | (6,212,000) | ||||||||
Cash flows from investing activities: | |||||||||
Purchase of consumer receivables acquired for liquidation | (463,000) | ||||||||
Principal collected on receivables acquired for liquidation | 2,899,000 | ||||||||
Net cash used in investing activities | (224,000) | ||||||||
Cash flows from financing activities: | |||||||||
Change in restricted cash | |||||||||
Net cash provided by (used in) financing activities | 3,951,000 | ||||||||
Net decrease in cash and cash equivalents | (2,485,000) | ||||||||
Cash and cash equivalents at beginning of period | 18,526,000 | ||||||||
Cash and cash equivalents at end of period | 16,041,000 | ||||||||
Scenario, Adjustment [Member] | |||||||||
Foreign currency translation, net | [1],[2] | (21,000) | |||||||
Total comprehensive loss | (1,021,000) | ||||||||
Cash flows from operating activities: | |||||||||
Cash and cash equivalents | (9,531,000) | [1],[3] | (9,531,000) | [1],[3] | |||||
Restricted cash | [3] | 8,165,000 | |||||||
Consumer receivables acquired for liquidation (at net realizable value) | [1] | 1,359,000 | |||||||
Structured settlements (at fair value) | [4] | (2,553,000) | |||||||
Due from third party collection agencies and attorneys | [1] | 98,000 | |||||||
Prepaid and income taxes receivable | [2] | 909,000 | |||||||
Deferred income taxes | [1],[2] | 109,000 | |||||||
Other assets | [1] | 2,000 | |||||||
Total assets | (1,442,000) | ||||||||
Other liabilities | [1] | (13,000) | |||||||
Total liabilities | (13,000) | ||||||||
Retained earnings | [1],[2],[3] | (1,408,000) | |||||||
Accumulated other comprehensive income (loss) | [1],[2] | (21,000) | |||||||
Balance | (1,429,000) | ||||||||
Total liabilities and stockholders’ equity | $ (1,442,000) | ||||||||
Revenues: | |||||||||
Finance income, net | [1],[5] | 703,000 | |||||||
Unrealized gain (loss) on structured settlements | [4] | (2,553,000) | |||||||
Total revenues | (1,850,000) | ||||||||
Other income | [1] | 93,000 | |||||||
General and administrative | [1] | 52,000 | |||||||
Interest | [1] | (42,000) | |||||||
10,000 | |||||||||
Loss before income taxes | (1,767,000) | ||||||||
Income tax (benefit)/expense — includes tax benefit of $18,000 and $11,000 during the three month periods ended December 31, 2016 and 2015, respectively, of accumulated other comprehensive income reclassifications for unrealized net (losses) / gains on available for sale securities | [2] | (767,000) | |||||||
Net loss attributable to Asta Funding, Inc. | $ (1,000,000) | ||||||||
Basic and diluted loss per share (in dollars per share) | $ (0.08) | ||||||||
Net (loss) income | $ (1,000,000) | ||||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |||||||||
Deferred income taxes | [1],[2] | (109,000) | |||||||
Structured settlements - gains | [4] | 2,553,000 | |||||||
Prepaid and income taxes receivable | [2] | (909,000) | |||||||
Due from third party collection agencies and attorneys | [1] | (98,000) | |||||||
Other assets | [1] | (2,000) | |||||||
Income tax payable | [5] | 241,000 | |||||||
Other liabilities | [1] | (34,000) | |||||||
Net cash used in operating activities | 642,000 | ||||||||
Cash flows from investing activities: | |||||||||
Purchase of consumer receivables acquired for liquidation | [1] | (1,750,000) | |||||||
Principal collected on receivables acquired for liquidation | [1] | (258,000) | |||||||
Net cash used in investing activities | (2,008,000) | ||||||||
Cash flows from financing activities: | |||||||||
Change in restricted cash | [3] | (8,165,000) | |||||||
Net cash provided by (used in) financing activities | (8,165,000) | ||||||||
Net decrease in cash and cash equivalents | [1],[3] | (9,531,000) | |||||||
Cash and cash equivalents at beginning of period | |||||||||
Cash and cash equivalents at end of period | [1],[3] | $ (9,531,000) | |||||||
[1] | Consists of (i) an asset reclassification on the balance sheet of $1.4 million from cash and cash equivalents to an international portfolio acquired for liquidation and (ii) the activity for the month of December 2016 for two international subsidiaries of the Company. | ||||||||
[2] | Income tax provision adjustments for impact on current year and prior period correction of error. | ||||||||
[3] | $8.2 million reclassification to restricted cash in the consolidated balance sheet since these assets serve as collateral for the line of credit. | ||||||||
[4] | Structured settlements fair value adjustment to reflect underlying benchmark interest rate changes at December 31, 2016. | ||||||||
[5] | Prior period correction of error impact on current year which consists of (i) increase of $0.6 million finance income (ii) decrease of $0.2 million income tax payable and (iii) $0.4 million retained earnings reduction. |
Note 2 - Business and Basis o48
Note 2 - Business and Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Cash, Uninsured Amount | $ 2,900,000 | |
Cash, Uninsured Amount, Foreign | 500,000 | |
Restricted Cash | 8,165,000 | |
Goodwill | 2,770,000 | $ 2,770,000 |
CBC [Member] | ||
Goodwill | 1,400,000 | |
VATIV [Member] | ||
Goodwill | $ 1,400,000 | |
Pegasus Legal Funding LLC [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 80.00% |
Note 3 - Available-for-sale I49
Note 3 - Available-for-sale Investments (Details Textual) | 3 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Investments Sold | 2 | 2 |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | $ (45,000) | $ (31,000) |
Realized Investment Gains (Losses) | 177,000 | 47,000 |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 132,000 | $ 16,000 |
Number of Investments | 7 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 5 |
Note 3 - Available-for-sale I50
Note 3 - Available-for-sale Investments - Investments Classified as Available-for-sale (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Unrealized Losses | $ (1,099,000) | $ (49,000) |
Fair Value | 55,045,000 | 56,764,000 |
Amortized Cost | 56,115,000 | 55,724,000 |
Unrealized Gains | $ 29,000 | $ 1,089,000 |
Note 4 - Consumer Receivables51
Note 4 - Consumer Receivables Acquired for Liquidation (Restated) (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Face Value of Charged-off Consumer Receivables | $ 35 | $ 97.7 |
Purchased Cost of Charged-off Consumer Receivables | $ 2.2 | $ 4.4 |
Fee Charged on Portfolio Purchase | 3.00% |
Note 4 - Consumer Receivables52
Note 4 - Consumer Receivables Acquired for Liquidation (Restated) - Changes In Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 13,671,000 | $ 15,608,000 |
Acquisitions of receivable portfolios | 2,213,000 | 4,419,000 |
Net cash collections from collection of consumer receivables acquired for liquidation | (6,179,000) | (7,293,000) |
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (190,000) | |
Effect of foreign currency translation | (273,000) | (33,000) |
Finance income, net | 4,001,000 | 5,142,000 |
Balance | $ 13,243,000 | $ 17,843,000 |
Finance income as a percentage of collections | 62.80% | 70.50% |
Note 4 - Consumer Receivables53
Note 4 - Consumer Receivables Acquired for Liquidation (Restated) - Collections Received Less Commissions and Direct Costs (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Gross collections (1) | [1] | $ 11,495,000 | $ 11,411,000 |
Commissions and fees (2) | [2] | 5,126,000 | 4,118,000 |
Net collections | $ 6,369,000 | $ 7,293,000 | |
[1] | Gross collections include: collections from third-party collection agencies and attorneys, collections from in-house efforts, and collections represented by account sales. | ||
[2] | Commissions and fees are the contractual commission earned by third party collection agencies and attorneys, and direct costs associated with the collection effort, generally court costs. Includes a 3% fee charged by a servicer on gross collections received by the Company in connection with the Portfolio Purchase. Such arrangement was consummated in December 2007. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Note 5 - Acquisition of CBC (De
Note 5 - Acquisition of CBC (Details Textual) - USD ($) | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2016 |
Restricted Stock [Member] | ||||
Shares Lock-up Period | 1 year | |||
CBC [Member] | ||||
Equity Method Investment, Ownership Percentage | 80.00% | 100.00% | ||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | |||
Business Combination, Consideration Transferred | $ 1,800,000 | $ 5,900,000 | ||
Payments to Acquire Businesses, Gross | 800,000 | |||
Employment Agreement Term | 2 years | |||
Employee Agreement Renewal Term | 1 year | |||
CBC [Member] | Principal One [Member] | ||||
Payments to Acquire Businesses, Gross | 400,000 | |||
CBC [Member] | Restricted Stock [Member] | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,000,000 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 123,304 | |||
Shares Lock-up Period | 1 year | |||
CBC [Member] | Restricted Stock [Member] | Principal One [Member] | ||||
Shares Issued, Price Per Share | $ 7.95 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 61,652 |
Note 6 - Structured Settlemen55
Note 6 - Structured Settlements (Restated) (At Fair Value) (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Unrealized Gain (Loss) on Structured Settlements | $ (955,000) | $ 1,527,000 | |
Unrealized Gain (Loss) on Structured Settlements Due to Day One Gains on New Structured Settlements Financed | 2,100,000 | ||
Unrealized Gain (Loss) on Structured Settlements Due to Change in Realized Gains | (500,000) | ||
Assets, Fair Value Adjustment | (2,553,000) | ||
Financing Receivable, Recorded Investment, Past Due | 0 | $ 0 | |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | $ 0 | |
Structured Settlements [Member] | |||
Assets, Fair Value Adjustment | $ (2,600,000) |
Note 6 - Structured Settlemen56
Note 6 - Structured Settlements (Restated) (At Fair Value) - Components of Structured Settlements (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | |
Maturity (1) (2) | [1],[2] | $ 143,226,000 | $ 133,059,000 |
Unearned income | (54,274,000) | (47,351,000) | |
Structured settlements, net | $ 88,952,000 | $ 85,708,000 | |
[1] | The maturity value represents the aggregate unpaid principal balance at December 31, 2016 and September 30, 2016. | ||
[2] | There are no amounts of structured settlements that are past due, or in nonaccrual status at December 31, 2016 and September 30, 2016. |
Note 6 - Structured Settlemen57
Note 6 - Structured Settlements (Restated) (At Fair Value) - Structured Settlements (Details) - Structured Settlement [Member] - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | |
$25,000,000 revolving line of credit (3) | [1] | $ 15,264,000 | $ 10,154,000 |
Total structured settlements | 88,952,000 | 85,708,000 | |
Structured Settlements Encumbered [Member] | |||
Total structured settlements | 71,566,000 | 67,435,000 | |
Structured Settlements Not Encumbered [Member] | |||
Total structured settlements | 17,386,000 | 18,273,000 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until June 2025 [Member] | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable | [1] | 1,817,000 | 1,862,000 |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until August 2026 [Member] | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable | [1] | 4,138,000 | 4,242,000 |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until April 2032 [Member] | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable | [1] | 3,948,000 | 3,987,000 |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until February 2037 [Member] | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable | [1] | 18,601,000 | 18,978,000 |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until March 2034 [Member] | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable | [1] | 14,193,000 | 14,507,000 |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable Until February 2043 [Member] | |||
Notes payable secured by settlement receivables with principal and interest outstanding payable | [1] | $ 13,605,000 | $ 13,705,000 |
[1] | See Note 10 - Other Debt - CBC |
Note 6 - Structured Settlemen58
Note 6 - Structured Settlements (Restated) (At Fair Value) - Structured Settlements (Details) (Parentheticals) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | May 02, 2014 | ||
Line of credit, current borrowing capacity | $ 20,000,000 | |||
Structured Settlement [Member] | ||||
Line of credit, current borrowing capacity | [1] | $ 25,000,000 | $ 25,000,000 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until June 2025 [Member] | Structured Settlement [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | [1] | 2025-06 | 2025-06 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until August 2026 [Member] | Structured Settlement [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | [1] | 2026-08 | 2026-08 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until April 2032 [Member] | Structured Settlement [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | [1] | 2032-04 | 2032-04 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until February 2037 [Member] | Structured Settlement [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | [1] | 2037-02 | 2037-02 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until March 2034 [Member] | Structured Settlement [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | [1] | 2034-03 | 2034-03 | |
Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable Until February 2043 [Member] | Structured Settlement [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | [1] | 2043-02 | 2043-02 | |
[1] | See Note 10 - Other Debt - CBC |
Note 6 - Structured Settlemen59
Note 6 - Structured Settlements (Restated) (At Fair Value) - Expected Cash Flows of Structured Settlements Based on Maturity Value (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | |
September 30, 2017 (9 months) | $ 7,635,000 | ||
September 30, 2018 | 8,556,000 | ||
September 30, 2019 | 8,914,000 | ||
September 30, 2020 | 8,371,000 | ||
September 30, 2021 | 9,105,000 | ||
Thereafter | 100,645,000 | ||
Total | [1],[2] | $ 143,226,000 | $ 133,059,000 |
[1] | The maturity value represents the aggregate unpaid principal balance at December 31, 2016 and September 30, 2016. | ||
[2] | There are no amounts of structured settlements that are past due, or in nonaccrual status at December 31, 2016 and September 30, 2016. |
Note 7 - Litigation Funding (De
Note 7 - Litigation Funding (Details Textual) - USD ($) | May 08, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | May 02, 2014 |
Company Investment in Personal Injury | $ 47,900,000 | $ 48,300,000 | |||||
Allowance for Doubtful Accounts Receivable | 9,500,000 | $ 5,500,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||||
Valuation Allowances and Reserves, Other | 2,500,000 | ||||||
Net Investment Income | 0 | 0 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument, Term | 2 years | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,500,000 | |||||
Long-term Line of Credit | $ 1,500,000 | ||||||
Pegasus Legal Funding LLC [Member] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | ||||||
Earnings in Interest and Fees from Invested Venture | $ 2,300,000 | 3,100,000 | |||||
Allowance for Doubtful Accounts Receivable | $ 9,542,000 | $ 5,496,000 | $ 8,542,000 | $ 5,459,000 | |||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 80.00% | ||||||
BP Case Management, LLC [Member] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | ||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 60.00% |
Note 7 - Litigation Funding - R
Note 7 - Litigation Funding - Reserves for Bad Debts (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at end of period | $ 9,500,000 | $ 5,500,000 |
Pegasus Legal Funding LLC [Member] | ||
Balance at beginning of period | 8,542,000 | 5,459,000 |
Provisions for losses | 1,389,000 | 412,000 |
Write offs | (389,000) | (375,000) |
Balance at end of period | $ 9,542,000 | $ 5,496,000 |
Note 8 - Furniture and Equipm62
Note 8 - Furniture and Equipment - Summary of Furniture and Equipment (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Total | $ 2,007,000 | $ 2,001,000 |
Less accumulated depreciation and amortization | 1,788,000 | 1,758,000 |
Balance, end of period | 219,000 | 243,000 |
Furniture and Fixtures [Member] | ||
Total | 417,000 | 417,000 |
Equipment [Member] | ||
Total | 234,000 | 234,000 |
Software Development [Member] | ||
Total | $ 1,356,000 | $ 1,350,000 |
Note 9 - Non Recourse Debt (Det
Note 9 - Non Recourse Debt (Details Textual) - USD ($) | Mar. 30, 2016 | Jun. 03, 2014 | May 02, 2014 | Aug. 07, 2013 | Mar. 31, 2007 | Jun. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 |
Line of Credit Facility, Covenant Consolidated Tangible Net Worth | $ 150,000,000 | |||||||
Portfolio Purchase | $ 300,000,000 | |||||||
Receivables Financing Agreement Term | 3 years | |||||||
Percentage of Ownership in Subsidiaries | 100.00% | |||||||
Prepayment Fees | $ 15,000,000 | |||||||
Receivable Finance Agreement, Portfolio Purchase Collections, Percentage | 30.00% | |||||||
Debt Instrument, Final Principal Payment | $ 2,901,199 | |||||||
Voluntary Debt Prepayment | 1,866,036 | |||||||
Receivable Finance Agreement, Collections from Portfolio Purchase | $ 16,900,000 | $ 16,900,000 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 20,000,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||||||
Line of Credit Facility, Expiration Period | 3 years | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||
Restricted Cash | $ 8,165,000 | |||||||
Amended Loan Agreement [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||
Line of Credit Facility, Covenant Decrease Consolidated Tangible Net Worth | $ 50,000,000 | |||||||
Long-term Line of Credit | 0 | |||||||
Bank of Montreal [Member] | ||||||||
Non-Recourse Debt | $ 179,000 | |||||||
Receivables Financing Agreement [Member] | ||||||||
Non-Recourse Debt | $ 227,000,000 |
Note 10 - Other Debt - CBC (Det
Note 10 - Other Debt - CBC (Details Textual) - USD ($) | Mar. 01, 2015 | Sep. 29, 2014 | Dec. 31, 2013 | Sep. 29, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jul. 08, 2016 | Sep. 25, 2015 | Nov. 26, 2014 | May 02, 2014 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 20,000,000 | |||||||||
Other Long-term Debt | $ 71,566,000 | $ 67,435,000 | ||||||||
Notes Payable, Noncurrent | 56,300,000 | 57,300,000 | ||||||||
CBC [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 22,000,000 | $ 22,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 25,900,000 | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 12,500,000 | |||||||||
Debt Instrument, Floor Interest Rate | 4.10% | 5.50% | 4.75% | |||||||
Other Long-term Debt | 71,566,000 | 67,435,000 | ||||||||
Long-term Line of Credit | 15,264,000 | 10,154,000 | ||||||||
Notes Payable, Noncurrent | $ 56,302,000 | $ 57,281,000 | ||||||||
Equity Method Investment, Ownership Percentage | 80.00% | 100.00% | ||||||||
Line of Credit Facility, Expiration Date | Mar. 1, 2017 | Feb. 28, 2015 | ||||||||
CBC [Member] | Secured Debt [Member] | ||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.85% | 5.10% | 5.40% | |||||||
Debt Instrument, Face Amount | $ 14,800,000 | $ 16,600,000 | $ 21,800,000 |
Note 10 - Other Debt - CBC - Co
Note 10 - Other Debt - CBC - Component of Other Debt From Acquisition (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Notes Payable, Noncurrent | $ 56,300,000 | $ 57,300,000 |
Other Long-term Debt | 71,566,000 | 67,435,000 |
CBC [Member] | ||
Notes Payable, Noncurrent | $ 56,302,000 | 57,281,000 |
Interest Rate | 4.10% | |
Long-term Line of Credit | $ 15,264,000 | 10,154,000 |
Other Long-term Debt | 71,566,000 | 67,435,000 |
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until June 2025 [Member] | ||
Notes Payable, Noncurrent | $ 1,817,000 | 1,862,000 |
Interest Rate | 8.75% | |
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until August 2026 [Member] | ||
Notes Payable, Noncurrent | $ 4,138,000 | 4,242,000 |
Interest Rate | 7.25% | |
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until April 2032 [Member] | ||
Notes Payable, Noncurrent | $ 3,948,000 | 3,987,000 |
Interest Rate | 7.125% | |
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until February 2037 [Member] | ||
Notes Payable, Noncurrent | $ 18,601,000 | 18,978,000 |
Interest Rate | 5.39% | |
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until March 2034 [Member] | ||
Notes Payable, Noncurrent | $ 14,193,000 | 14,507,000 |
Interest Rate | 5.07% | |
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable Until February 2043 [Member] | ||
Notes Payable, Noncurrent | $ 13,605,000 | $ 13,705,000 |
Interest Rate | 4.85% |
Note 10 - Other Debt - CBC - 66
Note 10 - Other Debt - CBC - Component of Other Debt From Acquisition (Details) (Parentheticals) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | May 02, 2014 | Dec. 31, 2013 | |
Line of Credit Facility, Current Borrowing Capacity | $ 20,000,000 | |||
CBC [Member] | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 12,500,000 | |||
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until June 2025 [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | 2025-06 | 2025-06 | ||
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until August 2026 [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | 2026-08 | 2026-08 | ||
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until April 2032 [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | 2032-04 | 2032-04 | ||
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until February 2037 [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | 2037-02 | 2037-02 | ||
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable until March 2034 [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | 2034-03 | 2034-03 | ||
CBC [Member] | Notes Payable Secured by Settlement Receivables with Principal and Interest Outstanding Payable Until February 2043 [Member] | ||||
Notes payable secured by settlement receivables with principal and interest outstanding payable, maturity date | 2043-02 | 2043-02 | ||
CBC [Member] | Line of Credit [Member] | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 25,000,000 | $ 25,000,000 |
Note 11 - Commitments and Con67
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) | Nov. 11, 2016 | Jul. 24, 2015 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 |
Violation of Federal Fair Debt Collection Practice Act and Racketeer Influenced and Corrupt Organization Act [Member] | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 39,000 | ||||
Litigation Settlement, Amount Offered, Consideration | $ 3,900,000 | ||||
Estimated Litigation Liability | $ 2,300,000 | ||||
Violation of Federal Fair Debt Collection Practice Act and Racketeer Influenced and Corrupt Organization Act [Member] | General and Administrative Expense [Member] | |||||
Litigation Settlement, Expense | $ 300,000 | $ 2,000,000 | |||
Violation of Federal Fair Debt Collection Practice Act and Racketeer Influenced and Corrupt Organization Act [Member] | Individual Basis for a Payment to each Plaintiff [Member] | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 13,000 | ||||
Chief Executive Officer [Member] | Simia Capital LLC [Member] | |||||
Employment Agreement, Annual Base Salary | $ 250,000 | ||||
Employment Agreement, Profit Bonus, Percentage of Profit | 15.00% | ||||
Employment Agreement, Profit Bonus, Minimum Internal Rate of Return | 18.00% | ||||
Employment Agreement, Profit Bonus, Percentage of Closing Consideration | 15.00% | ||||
Employment Agreement Term | 5 years | ||||
Employment Agreement, Severance, Years of Base Salary | 2 years | ||||
Term of Non-compete and Non-solicitation Provision | 2 years |
Note 12 - Income Recognition,68
Note 12 - Income Recognition, Impairments, and Commissions and Fees (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Sep. 30, 2016 | Dec. 31, 2016 | |
Other than Temporary Impairment Losses, Investments | $ 1,000,000 | ||
Other Investments | $ 3,590,000 | $ 3,354,000 | |
Fixed Income Funds [Member] | |||
Available-for-sale Securities, Equity Securities | $ 5,000,000 | ||
Related Party Transaction, Rate | 14.00% |
Note 13 - Income Taxes (Resta69
Note 13 - Income Taxes (Restated) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 31.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 35.00% |
Unrecognized Tax Benefits | $ 0 |
Note 14 - Net (Loss) Income P70
Note 14 - Net (Loss) Income Per Share (Restated) (Details Textual) | 3 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 454,205 |
Weighted Average Exercise Price | $ / shares | $ 9.47 |
Note 14 - Net (Loss) Income P71
Note 14 - Net (Loss) Income Per Share (Restated) - Computation of Basic and Diluted Per Share Data (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Shares, Basic (in shares) | 11,876,224 | 12,155,421 |
Per Share Amount, Basic (in dollars per share) | $ (0.14) | $ 0.15 |
Weighted Average Shares (in shares) | 276,465 | |
Net Income | $ (1,657,000) | $ 1,806,000 |
Weighted Average Shares, Diluted (in shares) | 11,876,224 | 12,431,886 |
Per Share Amount, Diluted (in dollars per share) | $ (0.14) | $ 0.15 |
Note 15 - Stock Based Compens72
Note 15 - Stock Based Compensation (Details Textual) - shares | Dec. 31, 2015 | Dec. 16, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 67,100 | 0 | 67,100 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 123,304 | 5,000 | 0 | 5,000 |
Shares Lock-up Period | 1 year | |||
Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 9,100 | |||
Share-based Compensation Award, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 58,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 15 - Stock Based Compens73
Note 15 - Stock Based Compensation - Weighted Average Assumptions Used in Option Pricing Model (Details) | Dec. 16, 2015 |
Risk-free interest rate | 0.24% |
Expected term (years) (Year) | 6 years 91 days |
Expected volatility | 23.40% |
Dividend yield | 0.00% |
Note 16 - Stock Option Plans (D
Note 16 - Stock Option Plans (Details Textual) | Dec. 31, 2015shares | Dec. 16, 2015shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2016USD ($)shares | Mar. 21, 2012shares | Mar. 05, 2012shares | Mar. 01, 2006shares | May 01, 2002shares |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Total Fair Value | $ | $ 532,000 | ||||||||
Allocated Share-based Compensation Expense | $ | $ 6,000 | $ 283,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | 76,000 | $ 76,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | 1,490,000 | 1,490,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 1,398,000 | 1,398,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 36 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 657,000 | $ 830,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 67,100 | 0 | 67,100 | ||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 0 | $ 40,000 | |||||||
Allocated Share-based Compensation Expense | $ | 0 | $ 87,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 123,304 | 5,000 | 0 | 5,000 | |||||
Employee Stock Option [Member] | |||||||||
Allocated Share-based Compensation Expense | $ | $ 6,000 | $ 196,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 76,000 | $ 76,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days | ||||||||
The 2012 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 66,568 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,336,743 | 1,336,743 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Eligible Employees | 129 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 484,200 | ||||||||
The 2012 Plan [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 245,625 | ||||||||
Equity Compensation Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||||||||
The 2002 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 |
Note 16 - Stock Option Plans -
Note 16 - Stock Option Plans - Summary of Stock Option Plans (Details) - $ / shares | Dec. 16, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Outstanding options at the beginning of period (in shares) | 949,667 | 1,043,566 | |
Outstanding options at the beginning of period (in dollars per share) | $ 8.47 | $ 8.47 | |
Options granted (in shares) | 67,100 | 0 | 67,100 |
Options granted (in dollars per share) | $ 7.93 | ||
Options exercised (in shares) | 0 | 0 | |
Options exercised (in dollars per share) | |||
Options forfeited/cancelled (in shares) | (52,500) | ||
Options forfeited/cancelled (in dollars per share) | $ 14.16 | ||
Outstanding options at the end of period (in shares) | 897,167 | 1,110,666 | |
Outstanding options at the end of period (in dollars per share) | $ 8.14 | $ 8.43 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.15 | $ 8.46 | |
Options Exercisable, Number of Shares Exercisable (in shares) | 844,829 | 965,325 |
Note 16 - Stock Option Plans 76
Note 16 - Stock Option Plans - Summary of Outstanding Options (Details) - $ / shares | 3 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Options Outstanding, Number of Shares Outstanding (in shares) | 897,167 | 949,667 | 1,110,666 | 1,043,566 |
Options Outstanding, Weighted Average Remaining Contractual Life (Year) | 5 years 109 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.14 | $ 8.47 | $ 8.43 | $ 8.47 |
Options Exercisable, Number of Shares Exercisable (in shares) | 844,829 | 965,325 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.15 | $ 8.46 | ||
Range One [Member] | ||||
Options Outstanding, Number of Shares Outstanding (in shares) | 3,800 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Year) | 2 years 109 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 2.95 | |||
Options Exercisable, Number of Shares Exercisable (in shares) | 3,800 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 2.95 | |||
Range of Exercise Price, Lower (in dollars per share) | 2.8751 | |||
Range of Exercise Price, Upper (in dollars per share) | $ 5.75 | |||
Range Two [Member] | ||||
Options Outstanding, Number of Shares Outstanding (in shares) | 768,867 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Year) | 5 years 73 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 7.96 | |||
Options Exercisable, Number of Shares Exercisable (in shares) | 716,529 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.96 | |||
Range of Exercise Price, Lower (in dollars per share) | 5.7501 | |||
Range of Exercise Price, Upper (in dollars per share) | $ 8.625 | |||
Range Three [Member] | ||||
Options Outstanding, Number of Shares Outstanding (in shares) | 124,500 | |||
Options Outstanding, Weighted Average Remaining Contractual Life (Year) | 6 years 36 days | |||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.40 | |||
Options Exercisable, Number of Shares Exercisable (in shares) | 124,500 | |||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.40 | |||
Range of Exercise Price, Lower (in dollars per share) | 8.6251 | |||
Range of Exercise Price, Upper (in dollars per share) | $ 11.50 |
Note 16 - Stock Option Plans 77
Note 16 - Stock Option Plans - Summary of Restricted Stock Transactions (Details) - Restricted Stock [Member] - $ / shares | Dec. 31, 2015 | Dec. 16, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Unvested at the beginning of period (in shares) | 44,107 | |||
Unvested at the beginning of period (in dollars per share) | $ 9.28 | |||
Awards granted (in shares) | 123,304 | 5,000 | 0 | 5,000 |
Awards granted (in dollars per share) | $ 7.89 | |||
Vested (in shares) | (34,107) | |||
Vested (in dollars per share) | $ 9.57 | |||
Forfeited (in shares) | ||||
Forfeited (in dollars per share) | ||||
Unvested at the end of period (in shares) | 15,000 | 15,000 | ||
Unvested at the end of period (in dollars per share) | $ 7.92 | $ 7.92 |
Note 17 - Stockholders' Equity
Note 17 - Stockholders' Equity (Details Textual) - USD ($) | Nov. 21, 2016 | Mar. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Dec. 17, 2015 | Aug. 11, 2015 |
Dividends | $ 0 | $ 0 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 7,180,000 | ||||||
Mangrove [Member] | |||||||
Mutual Confidentiality Agreement, Extended Period | 30 days | ||||||
Shares Repurchase Plan [Member] | |||||||
Stock Repurchase Program, Authorized Amount | $ 15,000,000 | $ 15,000,000 | |||||
Treasury Stock, Shares, Acquired | 1,186,000 | ||||||
Stock Repurchase Program, Additional Authorized Repurchase Amount | $ 15,000,000 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 9,900,000 | $ 10,100,000 |
Note 18 - Fair Value of Finan79
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Unrealized Gain (Loss) on Structured Settlements | $ (955,000) | $ 1,527,000 | |
Unrealized Gain (Loss) on Structured Settlements Due to Day One Gains on New Structured Settlements Financed | 2,100,000 | ||
Unrealized Gain (Loss) on Structured Settlements Due to Change in Realized Gains | (500,000) | ||
Assets, Fair Value Adjustment | $ (2,553,000) | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Redemption Restriction Period | 5 years | ||
Available-for-sale Securities | $ 55,045,000 | $ 56,764,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Available-for-sale Securities | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Available-for-sale Securities | 0 | ||
Structured Settlements [Member] | |||
Assets, Fair Value Adjustment | $ (2,600,000) |
Note 18 - Fair Value of Finan80
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) - Fair Value of Financial Measurements (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | |
Fair Value | $ 55,045,000 | $ 56,764,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value | 0 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value | 0 | ||
Reported Value Measurement [Member] | |||
Other investments, net | [1] | 3,354,000 | 3,590,000 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Cash and cash equivalents (Level 1) | 6,510,000 | 18,526,000 | |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Restricted cash (Level 1) | 8,165,000 | ||
Fair Value | 55,045,000 | 56,764,000 | |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Consumer receivables acquired for liquidation (Level 3) | 13,243,000 | 14,320,000 | |
Structured settlements (Level 3) | 88,952,000 | 85,708,000 | |
Other debt – CBC, revolving line of credit (Level 3) | 15,264,000 | 10,154,000 | |
Other debt – CBC, non-recourse notes payable with varying installments (Level 3) | 56,302,000 | 57,281,000 | |
Estimate of Fair Value Measurement [Member] | |||
Other investments, net | [1] | 3,354,000 | 3,590,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Cash and cash equivalents (Level 1) | 6,510,000 | 18,526,000 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value | 55,045,000 | 56,764,000 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Consumer receivables acquired for liquidation (Level 3) | 45,061,000 | 47,233,000 | |
Structured settlements (Level 3) | 88,952,000 | 85,708,000 | |
Other debt – CBC, revolving line of credit (Level 3) | 15,264,000 | 10,154,000 | |
Other debt – CBC, non-recourse notes payable with varying installments (Level 3) | $ 56,302,000 | $ 57,281,000 | |
[1] | The Company has adopted ASU 2015-07 and in accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
Note 18 - Fair Value of Finan81
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) - Quantitative Information About Level 3 Fair Value Measurements (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Structured Settlements at Fair Value | $ 88,952,000 |
Income Approach Valuation Technique [Member] | |
Structured Settlements at Fair Value | $ 88,952,000 |
Rate | |
Income Approach Valuation Technique [Member] | Minimum [Member] | |
Rate | 4.83% |
Income Approach Valuation Technique [Member] | Maximum [Member] | |
Rate | 5.36% |
Note 18 - Fair Value of Finan82
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) - Changes in Structured Settlements at Fair Value Using Significant Unobservable Inputs (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Balance at September 30, 2016 | $ 85,708,000 |
Fair value adjustment | (2,553,000) |
Total gains included in earnings | (1,598,000) |
Purchases | 4,595,000 |
Interest accreted | 1,567,000 |
Payments received | (1,963,000) |
Total | 88,952,000 |
The amount of total gains (losses) for the three month period included in earnings attributable to the change in unrealized gains relating to assets held at December 31, 2016 | $ (955,000) |
Note 18 - Fair Value of Finan83
Note 18 - Fair Value of Financial Measurements and Disclosures (Restated) - Schedule of Realized and Unrealized Gains and Losses (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Total gains included in the three months ended December 31, 2016 | $ (955,000) |
Change in unrealized gains relating to assets still held at December 31, 2016 | $ (955,000) |
Note 19 - Segment Reporting (84
Note 19 - Segment Reporting (Restated) (Details Textual) | 3 Months Ended |
Dec. 31, 2016 | |
Number of Reportable Segments | 4 |
Note 19 - Segment Reporting (85
Note 19 - Segment Reporting (Restated) - Schedule of Segment Reporting (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Income (loss) before income tax | $ (2,755,000) | $ 3,368,000 | |
Total Assets | 257,463,000 | 236,000,000 | $ 255,399,000 |
Total Revenues | 8,603,000 | 11,820,000 | |
Other income | 600,000 | 500,000 | |
Operating Segments [Member] | Consumer Receivables [Member] | |||
Income (loss) before income tax | 3,300,000 | 4,700,000 | |
Total Assets | 17,500,000 | 17,900,000 | |
Total Revenues | 4,000,000 | 5,100,000 | |
Other income | |||
Operating Segments [Member] | Personal Injury Claims [Member] | |||
Income (loss) before income tax | 1,900,000 | ||
Total Assets | 49,000,000 | 35,200,000 | |
Total Revenues | 2,300,000 | 3,100,000 | |
Other income | |||
Operating Segments [Member] | Structured Settlements [Member] | |||
Income (loss) before income tax | (1,500,000) | 800,000 | |
Total Assets | 86,600,000 | 73,900,000 | |
Total Revenues | 900,000 | 2,900,000 | |
Other income | |||
Operating Segments [Member] | GAR Disability Advocates [Member] | |||
Income (loss) before income tax | (900,000) | (1,800,000) | |
Total Assets | 1,500,000 | 2,400,000 | |
Total Revenues | 1,400,000 | 700,000 | |
Other income | |||
Corporate, Non-Segment [Member] | |||
Income (loss) before income tax | (3,700,000) | (2,200,000) | |
Total Assets | 102,900,000 | 106,600,000 | |
Total Revenues | |||
Other income | $ 600,000 | $ 500,000 |
Note 20 - Accumulated Other C86
Note 20 - Accumulated Other Comprehensive (Loss) Income (Restated) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Balance | $ 181,738,000 | $ 181,320,000 | $ 181,320,000 |
Change in unrealized (losses) gains on marketable securities, net of tax benefit/ (expense) of $826,000 and ($529,000) at December 31, 2016, and September 30, 2016, respectively. | (1,239,000) | 336,000 | |
Other comprehensive income (loss) | (1,635,000) | 558,000 | |
Balance | 178,281,000 | 176,078,000 | 181,738,000 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Balance | 624,000 | (205,000) | (205,000) |
Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of $246,000 and ($628,000) at December 31, 2016, and September 30, 2016, respectively. | |||
Change in unrealized (losses) gains on marketable securities, net of tax benefit/ (expense) of $826,000 and ($529,000) at December 31, 2016, and September 30, 2016, respectively. | (1,239,000) | 868,000 | |
Amount reclassified from accumulated other comprehensive loss, net of tax benefit of $18,000 and $24,000 at December 31, 2016, and September 30, 2016, respectively. | (27,000) | (39,000) | |
Other comprehensive income (loss) | (1,266,000) | 829,000 | |
Balance | (642,000) | 624,000 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Balance | (538,000) | (1,480,000) | (1,480,000) |
Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of $246,000 and ($628,000) at December 31, 2016, and September 30, 2016, respectively. | (369,000) | 942,000 | |
Change in unrealized (losses) gains on marketable securities, net of tax benefit/ (expense) of $826,000 and ($529,000) at December 31, 2016, and September 30, 2016, respectively. | |||
Amount reclassified from accumulated other comprehensive loss, net of tax benefit of $18,000 and $24,000 at December 31, 2016, and September 30, 2016, respectively. | |||
Other comprehensive income (loss) | (369,000) | 942,000 | |
Balance | (907,000) | (538,000) | |
AOCI Attributable to Parent [Member] | |||
Balance | 86,000 | (1,685,000) | (1,685,000) |
Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of $246,000 and ($628,000) at December 31, 2016, and September 30, 2016, respectively. | (369,000) | 942,000 | |
Change in unrealized (losses) gains on marketable securities, net of tax benefit/ (expense) of $826,000 and ($529,000) at December 31, 2016, and September 30, 2016, respectively. | (1,239,000) | 868,000 | |
Amount reclassified from accumulated other comprehensive loss, net of tax benefit of $18,000 and $24,000 at December 31, 2016, and September 30, 2016, respectively. | (27,000) | (39,000) | |
Other comprehensive income (loss) | (1,635,000) | 1,771,000 | |
Balance | $ (1,549,000) | $ (1,127,000) | $ 86,000 |
Note 20 - Accumulated Other C87
Note 20 - Accumulated Other Comprehensive (Loss) Income (Restated) - Accumulated Other Comprehensive Income (Loss) (Details) (Parentheticals) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Net unrealized securities gain (loss), tax benefit (expense) | $ 826,000 | $ (190,000) | |
AOCI Attributable to Parent [Member] | |||
Unrealized gain (loss) on foreign currency translation, tax | 24,600 | $ (628,000) | |
Net unrealized securities gain (loss), tax benefit (expense) | 826,000 | (529,000) | |
Reclassification from accumulated other comprehensive loss, tax | $ 18,000 | $ 24,000 |
Note 21 - Related Party Trans88
Note 21 - Related Party Transactions (Details Textual) - USD ($) | Sep. 17, 2015 | Dec. 31, 2016 |
Consulting Agreement Period | 2 years | |
Louis Piccolo [Member] | ||
Professional Fees | $ 20,000 | |
Louis Piccolo [Member] | Pegasus Funding LLC [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 33,000 | |
Louis Piccolo [Member] | Pegasus Funding LLC [Member] | Professional Fees Incurred by a Related Party [Member] | ||
Due to Related Parties, Term | 6 years | |
Louis Piccolo [Member] | Pegasus Funding LLC [Member] | Interest Based on Professional Fees [Member] | ||
Related Party Transaction, Rate | 4.00% | |
Louis Piccolo [Member] | Maximum [Member] | Pegasus Funding LLC [Member] | ||
Professional Fees | $ 700,000 |
Note 22 - Subsequent Events (De
Note 22 - Subsequent Events (Details Textual) - Subsequent Event [Member] - $ / shares | Jan. 06, 2017 | Jan. 18, 2017 |
Share Price | $ 10.20 | |
Stern Stockholders [Member] | ||
Voting Agreement, Related Party Maximum Percentage of Voting Right | 49.00% | |
Settlement Agreement [Member] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,314,009 | |
Stock Repurchase Program, Purchase Price Per Share | $ 10.35 | |
Settlement Agreement [Member] | Mangrove [Member] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 4,005,701 |