Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Sep. 14, 2018 | |
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) | 6,685,415 | |
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 | As previously disclosed in the Current Report on Form 8-K filed by Asta Funding, Inc. ("Asta” or the “Company") with the Securities and Exchange Commission (the "SEC") on January 18, 2018, the Board of Directors (the "Board") of the Company, upon the recommendation of the Audit Committee of the Board (the "Audit Committee"), determined that the Company's previously issued financial statements for each of the years ended September 30, 2016, 2015 and 2014, and the interim periods contained therein, as well as the Company’s unaudited consolidated financial statements for the quarters ended December 31, 2016, March 31, 2017 and June 30, 2017, could no longer be relied upon. On September 17, 2018, the Company filed an Annual Report on Form 10-K/A (the "Form 10-K/A") to amend and restate the Company's previously issued financial statements for each of the years ended September 30, 2016, 2015 and 2014, as well as the interim periods contained therein. The Company is filing this Amendment No. 2 on Form 10-Q/A (this "Amendment") to amend and restate the Company's previously issued financial statements contained in its Quarterly Report on Form 10-Q for the quarter ended December 31, 2016 (the "Non-Reliance Period"), which was originally filed with the SEC on February 9, 2017 (the "Original Form 10-Q"), and restated on May 26, 2017 (the "Restated Form 10-Q/A"). The Company expects to file, at a later time, amendments to its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017 and June 30, 2017. Prior period amounts have already been restated in the Company's 10-K/A filed on September 17, 2018, and, accordingly have not been restated in this Amendment. |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | ||
ASSETS | ||||||
Cash and cash equivalents | $ 3,696,000 | $ 6,282,000 | ||||
Restricted cash | 8,165,000 | [1] | 10,000,000 | |||
Available for sale investments (at fair value) | 55,045,000 | 56,763,000 | ||||
Consumer receivables acquired for liquidation (at net realizable value) | 13,462,000 | 13,427,000 | $ 18,800,000 | |||
Other investments, net | 3,354,000 | 3,590,000 | ||||
Due from third party collection agencies and attorneys | 1,004,000 | 1,050,000 | ||||
Prepaid and income taxes receivable | 4,896,000 | 714,000 | ||||
Furniture and equipment, net | 176,000 | 196,000 | ||||
Equity method investment | 49,141,000 | 48,582,000 | ||||
Deferred income taxes | 15,327,000 | 14,903,000 | ||||
Goodwill | 1,410,000 | 1,410,000 | ||||
Other Assets, Total | 6,281,000 | 6,585,000 | ||||
Assets related to discontinued operations | 94,526,000 | 91,506,000 | ||||
Total assets | 256,483,000 | 255,008,000 | 237,800,000 | [2] | ||
LIABILITIES | ||||||
Other Liabilities, Total | 4,731,000 | 3,987,000 | ||||
Liabilities related to discontinued operations | 74,169,000 | 69,238,000 | ||||
Total liabilities | 78,900,000 | 73,225,000 | ||||
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 | 67,028,000 | 67,034,000 | ||||
Retained earnings | 123,792,000 | 126,738,000 | ||||
Accumulated other comprehensive (loss) income | (445,000) | 803,000 | ||||
Treasury stock (at cost) 1,460,284 shares at December 31, 2016 and September 30, 2016 | (12,925,000) | (12,925,000) | ||||
Total stockholders’ equity | 177,583,000 | 181,783,000 | $ 177,696,000 | $ 183,407,000 | ||
Total liabilities and stockholders’ equity | $ 256,483,000 | $ 255,008,000 | ||||
[1] | In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company's December 31, 2016 consolidated balance sheet, this resulted in (i) a decrease in cash of $1,065,000; (ii) a decrease in the investment in personal injury claims of $47,875,000; (iii) a decrease in other assets of $109,000; (iv) a decrease in other liabilities of $1,133,000; (v) an decrease in non-controlling interest of $804,000, offset by a corresponding increase in the equity method investment of $48,720,000. On the Company's consolidated statement of operations, this resulted in (i) a reduction in total revenues of $2,302,000; (ii) a reduction in expenses of $2,197,000; (iii) a decrease in the income attributable to the non-controlling interest of $21,000; and (iv) a decrease in earnings from equity method investment of $84,000 for the three months ended December 31, 2016. This change to the equity method of accounting had no effect on net (loss) income during the Non-Reliance Period. | |||||
[2] | Includes other amounts in other line items on the consolidated balance sheet. |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Dec. 31, 2016 | Sep. 30, 2016 |
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 | $ 4,095,000 | $ 5,106,000 |
Disability fee income | 1,354,000 | 659,000 |
Total revenues | 5,449,000 | 5,765,000 |
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 | 451,000 | 392,000 |
5,900,000 | 6,157,000 | |
Expenses: | ||
General and administrative | 7,295,000 | 5,729,000 |
Earnings from equity method investment | (404,000) | (1,494,000) |
6,891,000 | 4,235,000 | |
(Loss) income from continuing operations before income tax | (991,000) | 1,922,000 |
Income tax 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 | 697,000 | 631,000 |
Net (loss) income from continuing operations | (1,688,000) | 1,291,000 |
Net (loss) income from discontinued operations, net of income tax | (1,258,000) | 272,000 |
Net (loss) income | $ (2,946,000) | $ 1,563,000 |
Net (loss) income per basic shares: | ||
Continuing operations (in dollars per share) | $ (0.14) | $ 0.11 |
Discontinued operations (in dollars per share) | (0.11) | 0.02 |
(in dollars per share) | (0.25) | 0.13 |
Net (loss) income per diluted shares: | ||
Continuing operations (in dollars per share) | (0.14) | 0.11 |
Discontinued operations (in dollars per share) | (0.11) | 0.02 |
(in dollars per share) | $ (0.25) | $ 0.13 |
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 | $ (2,946,000) | $ 1,563,000 |
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) | 330,000 |
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 ($12,000) and ($9,000) during the three month periods ended December 31, 2016 and 2015, respectively. | 18,000 | 14,000 |
Other comprehensive (loss) income | (1,248,000) | 324,000 |
Total comprehensive (loss) income | $ (4,194,000) | $ 1,887,000 |
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 | $ (12,000) | $ (9,000) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Previously Reported [Member]Common Stock [Member] | Previously Reported [Member]Additional Paid-in Capital [Member] | Previously Reported [Member]Retained Earnings [Member] | Previously Reported [Member]AOCI Attributable to Parent [Member] | Previously Reported [Member]Treasury Stock [Member] | Previously Reported [Member]Noncontrolling Interest [Member] | Previously Reported [Member] | 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) at Sep. 30, 2015 | 13,061,673 | |||||||||||||
Balance at Sep. 30, 2015 | $ 131,000 | $ 65,049,000 | $ 119,165,000 | $ 20,000 | $ (1,751,000) | $ 793,000 | $ 183,407,000 | |||||||
Stock based compensation expense | 278,000 | 278,000 | ||||||||||||
Net (loss) income | 1,563,000 | 1,563,000 | ||||||||||||
Amount reclassified from other comprehensive loss | (20,000) | (20,000) | ||||||||||||
Unrealized (loss) on marketable securities, net | 330,000 | 330,000 | ||||||||||||
Foreign currency translation, net | 14,000 | 14,000 | ||||||||||||
Restricted stock (in shares) | 5,000 | |||||||||||||
Purchase of treasury stock | (7,180,000) | (7,180,000) | ||||||||||||
Purchase of subsidiary shares from non-controlling interest | (903,000) | (793,000) | (1,696,000) | |||||||||||
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 | |||||||||||
Balance (in shares) at Dec. 31, 2015 | 13,189,977 | |||||||||||||
Balance at Dec. 31, 2015 | $ 132,000 | 65,423,000 | 120,728,000 | 344,000 | (8,931,000) | 177,696,000 | ||||||||
Balance (in shares) at Sep. 30, 2016 | 13,336,508 | |||||||||||||
Balance at Sep. 30, 2016 | $ 133,000 | $ 67,034,000 | $ 126,738,000 | $ 803,000 | $ (12,925,000) | $ 181,783,000 | 803,000 | 181,783,000 | ||||||
Stock based compensation expense | (6,000) | (6,000) | ||||||||||||
Net (loss) income | (1,657,000) | (2,946,000) | (2,946,000) | |||||||||||
Amount reclassified from other comprehensive loss | (27,000) | (27,000) | (27,000) | |||||||||||
Unrealized (loss) on marketable securities, net | (1,239,000) | (1,239,000) | ||||||||||||
Foreign currency translation, net | (369,000) | 18,000 | 18,000 | |||||||||||
Balance (in shares) at Dec. 31, 2016 | 13,336,508 | |||||||||||||
Balance at Dec. 31, 2016 | $ 178,281,000 | $ 133,000 | $ 67,028,000 | $ 123,792,000 | $ (445,000) | $ (12,925,000) | $ 177,583,000 |
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 from continuing operations | $ (1,688,000) | $ 1,291,000 |
Net (loss) income from discontinued operations, net of income tax | (1,258,000) | 272,000 |
Net (loss) income | (2,946,000) | 1,563,000 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 26,000 | 90,000 |
Deferred income taxes | 420,000 | 95,000 |
Stock based compensation | (6,000) | 278,000 |
Loss on sale of available-for-sale securities | 45,000 | 31,000 |
Unrealized gain on other investments | (18,000) | (62,000) |
Unrealized foreign exchange loss on other investments | 254,000 | 118,000 |
Earnings from equity method investment | (404,000) | (1,494,000) |
Changes in: | ||
Prepaid and income taxes receivable | (4,182,000) | 819,000 |
Due from third party collection agencies and attorneys | 40,000 | 352,000 |
Other assets | 307,000 | (2,360,000) |
Other liabilities | 761,000 | (493,000) |
Net cash provided by (used in) operating activities of discontinued operations | 369,000 | (479,000) |
Net cash used in operating activities | (5,334,000) | (1,542,000) |
Cash flows from investing activities: | ||
Purchase of consumer receivables acquired for liquidation | (2,213,000) | (6,051,000) |
Principal collected on receivables acquired for liquidation | 2,129,000 | 2,299,000 |
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) | |
(Increase) decrease in equity method investment | (155,000) | 5,827,000 |
Capital expenditures | (6,000) | |
Net cash used in investing activities of discontinued operations | (2,632,000) | (2,544,000) |
Net cash (used in) provided by investing activities | (3,313,000) | 3,898,000 |
Cash flows from financing activities: | ||
Purchase of treasury stock | (7,180,000) | |
Net cash provided by financing activities of discontinued operations | 4,131,000 | 4,306,000 |
Net cash provided by (used in) financing activities | 4,131,000 | (2,874,000) |
Foreign currency effect on cash | 52,000 | |
Net decrease in cash, cash equivalents and restricted cash including cash, cash equivalents classified within assets related to discontinued operations | (4,464,000) | (518,000) |
Less: net increase (decrease) in cash, cash equivalents and restricted cash classified within assets related to discontinued operations | 43,000 | (312,000) |
Net decrease in cash, cash equivalents and restricted cash | (4,421,000) | (830,000) |
Cash, cash equivalents and restricted cash at beginning of period | 16,282,000 | 19,947,000 |
Cash, cash equivalents and restricted cash at end of period | 11,861,000 | 19,117,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for: Income taxes | 6,200,000 | |
Cash paid for: Interest | 914,000 | 763,000 |
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 following tables summarize the effects of the restatements on the specific items presented in the Company’s consolidated financial statements previously included in the Restated Form 10 Consolidated Balance Sheet December 31, 2016 As Reported De-Consolidation of Pegasus ( 1 ) Adjustments Restated ASSETS Cash and cash equivalents $ 4,770,000 $ (1,065,000 ) $ (9,000 ) (2)(6) $ 3,696,000 Restricted cash 8,165,000 — — 8,165,000 Available for sale investments (at fair value) 55,045,000 — — 55,045,000 Consumer receivables acquired for liquidation (at net realizable value) 13,243,000 — 219,000 (2) 13,462,000 Investment in personal injury claims, net 47,875,000 (47,875,000 ) — — Other investments, net 3,354,000 — — 3,354,000 Due from third party collection agencies and attorneys 1,035,000 — (31,000 ) (2) 1,004,000 Prepaid and income taxes receivable 5,267,000 — (371,000 ) (8) 4,896,000 Furniture and equipment, net 176,000 — — 176,000 Equity method investment — 48,720,000 421,000 (7) 49,141,000 Deferred income taxes 16,585,000 — (1,258,000 ) (2)(8) 15,327,000 Goodwill 1,410,000 — — 1,410,000 Other assets 6,203,000 (109,000 ) 187,000 (2) 6,281,000 Assets related to discontinued operations 94,335,000 — 191,000 (5)(6) 94,526,000 Total assets $ 257,463,000 $ (329,000 ) $ (651,000 ) $ 256,483,000 LIABILITIES Other liabilities 5,666,000 (1,133,000 ) 198,000 (2) 4,731,000 Liabilities related to discontinued operations 73,516,000 — 653,000 (5) 74,169,000 Total liabilities 79,182,000 (1,133,000 ) 851,000 78,900,000 Commitments and contingencies STOCKHOLDERS’ EQUITY Preferred stock — — — — Common stock 133,000 — — 133,000 Additional paid-in capital 67,020,000 — 8,000 (6) 67,028,000 Retained earnings 126,406,000 — (2,614,000 ) (2)(3) (4)(5) (6)(7)(8) 123,792,000 Accumulated other comprehensive loss (1,549,000 ) — 1,104,000 (2) (445,000 ) Treasury stock (at cost) (12,925,000 ) — — (12,925,000 ) Non-controlling interest (804,000 ) 804,000 — — Total stockholders’ equity 178,281,000 804,000 (1,502,000 ) 177,583,000 Total liabilities and stockholders’ equity $ 257,463,000 $ (329,000 ) $ (651,000 ) $ 256,483,000 Consolidated Statement of Operations For the Three Months Ended December 31, 2016 As Reported De-Consolidation of Pegasus ( 1 ) Adjustments Restated Revenues: Finance income, net $ 4,001,000 $ — $ 94,000 (2) $ 4,095,000 Personal injury claims income 2,302,000 (2,302,000 ) — Disability fee income 1,354,000 — — 1,354,000 Total revenues 7,657,000 (2,302,000 ) 94,000 5,449,000 Other income 544,000 — (93,000 ) (2) 451,000 8,201,000 (2,302,000 ) 1,000 5,900,000 General and administrative 9,556,000 (2,195,000 ) (66,000 ) (2)(6) 7,295,000 Interest 2,000 (2,000 ) — — Earnings from equity method investment — (84,000 ) (320,000 ) (7) (404,000 ) 9,558,000 (2,281,000 ) (386,000 ) 6,891,000 (Loss) from continuing operations before income tax (1,357,000 ) (21,000 ) 387,000 (991,000 ) Income tax (benefit)/expense (555,000 ) — 1,252,000 (8) 697,000 Net (loss) income from continuing operations (802,000 ) (21,000 ) (865,000 ) (1,688,000 ) Net loss from discontinued operations, net of income tax (834,000 ) — (424,000 ) (3)(5)(8) (1,258,000 ) Less: net income attributable to non-controlling interests 21,000 (21,000 ) Net loss attributable to Asta Funding, Inc. $ (1,657,000 ) $ — $ (1,289,000 ) $ (2,946,000 ) Basic and diluted loss per share: Continuing operations $ (0.07 ) $ (0.14 ) Discontinued operations (0.07 ) (0.11 ) $ (0.14 ) $ (0.25 ) Consolidated Statement of Comprehensive Loss For the Three Months Ended December 31, 2016 As Reported De-Consolidation of Pegasus (1 ) Adjustments Restated Comprehensive income (loss) is as follows: Net loss $ (1,657,000 ) $ — $ (1,289,000 ) $ (2,946,000 ) Net unrealized securities (loss) gain, net of tax (1,239,000 ) — — (1,239,000 ) Reclassification adjustments for securities sold, net of tax (27,000 ) — — (27,000 ) Foreign currency translation, net of tax (369,000 ) — 387,000 (2)(6) 18,000 Other comprehensive loss (1,635,000 ) — 387,000 (1,248,000 ) Total comprehensive loss $ (3,292,000 ) $ — $ (902,000 ) $ (4,194,000 ) Consolidated Statement of Cash Flows For the Three Months Ended December 31, 2016 As Reported Adjustments Restated Cash flows from operating activities: Net loss from continuing operations $ (823,000 ) $ (865,000 ) $ (1,688,000 ) Net loss from discontinued operations (834,000 ) (424,000 ) (1,258,000 ) (1,657,000 ) (1,289,000 ) (2,946,000 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 105,000 (79,000 ) 26,000 Deferred income taxes (211,000 ) 631,000 (2)(8) 420,000 Stock based compensation (6,000 ) — (6,000 ) Loss on sale of available-for-sale securities 45,000 — 45,000 Unrealized gain on other investments (18,000 ) — (18,000 ) Unrealized foreign exchange loss on other investments 254,000 — 254,000 Earnings from equity method investment — (404,000 ) (7) (404,000 ) Changes in: Prepaid and income taxes receivable (4,387,000 ) 205,000 (8) (4,182,000 ) Due from third party collection agencies and attorneys (30,000 ) 70,000 (2) 40,000 Other assets 498,000 (191,000 ) (2) 307,000 Income tax payable (252,000 ) 252,000 (8) — Other liabilities 373,000 388,000 (2) 761,000 Non-controlling interest 21,000 (21,000 ) (1) — Net cash used in operating activities of discontinued operations (391,000 ) 760,000 (3)(5) 369,000 Net cash used in operating activities (5,656,000 ) 322,000 (5,334,000 ) Cash flows from investing activities: Purchase of consumer receivables acquired for liquidation (2,213,000 ) — (2,213,000 ) Principal collected on receivables acquired for liquidation 2,641,000 (512,000 ) (2)(4)(5)(6) 2,129,000 Purchase of available-for-sale securities (7,568,000 ) — (7,568,000 ) Proceeds from sales of available-for-sale securities 7,132,000 — 7,132,000 Investments in personal injury claims — advances (5,178,000 ) 5,178,000 (1) — Investments in personal injury claims — receipts 5,592,000 (5,592,000 ) (1) — Increase in equity method investment — (155,000 ) (1) (155,000 ) Capital expenditures (6,000 ) — (6,000 ) Cash flows from investing activities related to discontinued operations (2,632,000 ) — (2,632,000 ) Net cash used in investing activities (2,232,000 ) (1,081,000 ) (3,313,000 ) Cash flows from financing activities: Distributions to non-controlling interest (180,000 ) 180,000 (1) — Cash flows from financing activities related to discontinued operations 4,131,000 — 4,131,000 Net cash used in financing activities 3,951,000 180,000 4,131,000 Foreign currency effect on cash — 52,000 (2) 52,000 Net decrease in cash, cash equivalents and restricted cash including cash, cash equivalents classified within assets related to discontinued operations (3,937,000 ) (527,000 ) (4,464,000 ) Less: net increase in cash, cash equivalents and restricted cash classified within assets related to discontinued operations 43,000 — 43,000 Net decrease in cash , cash equivalents and restricted cash (3,894,000 ) (527,000 ) (1)(2)(3)(4)(5)(6)(7)(8) (4,421,000 ) Cash , cash equivalents and restricted cash at beginning of period 16,829,000 (547,000 ) 16,282,000 Cash , cash equivalents and restricted cash at end of period $ 12,935,000 $ (1,074,000 ) $ 11,861,000 As previously disclosed in the Current Report on Form 8 January 18, 2018, September 30, 2016, 2015 2014, December 31, 2016, March 31, 2017 June 30, 2017, no On September 17, 2018, 10 10 September 30, 2016, 2015 2014, No. 2 10 10 December 31, 2016 ( February 9, 2017 ( 10 May 26, 2017 ( 10 10 March 31, 2017 June 30, 2017. Prior period amounts have already been restated in the Company's Form 10 not This Amendment On January 11, 2018, 810 Consolidation 830 Foreign Currency Matters not The “As Reported” amounts in the tables above represent the amounts reported in the Restated Form 10 December 13, 2017 ( 8 20 The following errors were identified as part of the restatement: 1. In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company’s December 31, 2016 $1,065,000; $47,875,000; $109,000; $1,133,000; $804,000, $48,720,000. $2,302,000; $2,197,000; $21,000; $84,000 three December 31, 2016. no 2. The Company determined that it had not 830. $94,000, $93,000, $204,000 three December 31, 2016. The correction of foreign currency transaction on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ 3,000 $ (10,000 ) $ (7,000 ) Consumer receivables acquired for liquidation (245,000 ) 464,000 219,000 Due from third party collection agencies and attorneys 45,000 (76,000 ) (31,000 ) Deferred income taxes (722,000 ) (199,000 ) (921,000 ) Other assets (33,000 ) 220,000 187,000 Other liabilities (18,000 ) 216,000 198,000 Accumulated other comprehensive loss 718,000 386,000 1,104,000 Retained earnings (1,653,000 ) (203,000 ) (1,856,000 ) 3. Prior to the sale of its structured settlement business, the Company purchased 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 ASC, Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 822 10 50 28 50 22 As previously disclosed in the Restated Form 10 not December 31, 2016 $2.6 $1.0 In connection with the Company’s filing of its Form 10 September 30, 2016, $727,000. three December 31, 2016, $727,000. 4. The Company determined that it had not $648,000 $648,000 September 30, 2016 December 31, 2016. 5. The Company discovered that it did not June 2015 $60,000 three December 31, 2016. The correction of these errors on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30 , 2016 10K/A filing Current period impact Cumulative net impact Assets related to discontinued operations $ 307,000 $ (161,000 ) $ 146,000 Liabilities related to discontinued operations 756,000 (103,000 ) 653,000 Retained earnings (442,000 ) (60,000 ) (502,000 ) 6. The Company identified other transactions that had not $270,000 three December 31, 2016. The correction of these errors on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ - $ (2,000 ) $ (2,000 ) Other liabilities 269,000 (269,000 ) - Retained earnings (137,000 ) 270,000 133,000 Assets related to discontinued operations 45,000 - 45,000 Additional paid in capital 8,000 - 8,000 7. The Company identified the personal injury claims asset balance of Pegasus was determined to be understated at December 31, 2016 $400,000. $320,000, 80% December 31, 2016. $320,000 three December 31, 2016. $101,000 10 8. Some of the corrections noted above impacted earnings (loss) before taxes which, in turn, required a calculation of the tax impact. The net impact to the Company’s consolidated balance sheet was a (i) decrease to prepaid and income taxes receivable of $371,000; $337,000. $1,252,000; $363,000 three December 31, 2016. All of the following notes to consolidated financial statements have been revised to reflect the effects of the above mentioned restatements. |
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 and Basis of Presentatio n Business Asta Funding, Inc., together with its wholly owned significant operating subsidiaries Palisades Collection, LLC, Palisades Acquisition XVI, LLC (“Palisades XVI”), Palisades Acquisition XIX, LLC (“Palisades XIX”), Palisades Acquisition XXIII, LLC (“Palisades XIX”), VATIV Recovery Solutions LLC (“VATIV”), EMIRIC, LLC (“EMIRIC”), ASFI Pegasus Holdings, LLC (“APH”), Fund Pegasus, LLC (“Fund Pegasus”), GAR Disability Advocates, LLC (“GAR Disability Advocates”), Five Star Veterans Disability, LLC (“Five Star”), Simia Capital, LLC (“Simia”) and other subsidiaries, which are not 80% 50% Consumer receivables The Company started out in the consumer receivable business in 1994. Personal injury claims Simia and our equity method investment in Pegasus conduct their business solely in the United States. These companies obtain their business from external brokers and internal sales professionals soliciting individuals with personal injury claims. Business is also obtained from the their websites and through attorneys. 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. Discontinued Operations US GAAP requires the results of operations of a component of an entity that either has been disposed of or is classified as held for sale to be reported as discontinued operations in the consolidated financial statements if the sale or disposition represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. On December 13, 2017, Basis of Presentation The consolidated balance sheet as of December 31, 2016, three December 31, 2016 2015, three December 31, 2016 2015, three 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 US 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 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 five December 31, 2016 $1.4 three $0.5 not $8.2 $10 December 31, 2016 September 30, 2016, not 7 not Equity method investment Investee companies that are not not 20% 50% not Pegasus is the Company's 50% 50% 80% Serlefin BPO&O Peru S.A.C. (“Serlefin Peru”) is the Company's 49% 51% three 51% Additionally, the Company and Serlefin jointly purchase international consumer debt portfolios under a purchase agreement. The Company and Serlefin purchase the portfolios on a pro-rata basis of 80% 20%, $0.2 $0 three December 31, 2016 2015, The carrying value of the investment in Serlefin Peru was $0.2 December 31, 2016 September 30, 2016. December 31, 2016 $0.1 not When the Company's carrying value in an equity method investee company is reduced to zero, no not not no three December 31, 2016 2015. Personal Injury Claim Advances Management assesses the quality of the personal injury claims portfolio through an analysis of the underlying personal injury fundings on a case by case basis. Cases are reviewed through periodic updates with attorneys handling the cases, as well as with third 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 $1.4 $1.4 Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no Recent Accounting Pronouncements In May 2014, 606, December 15, 2017 December 15, 2016, 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 In November 2016, No. 2016 18, 2016 18" not 2016 18 not 2016 18 October 1, 2016, not In January 2017, 2017 04 350 2 December 15, 2019, 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 $ 55,723,000 $ 1,089,000 $ (49,000 ) $ 56,763,000 The available-for-sale investments do not two three December 31, 2016, $45,000. $177,000 three December 31, 2016. three December 31, 2015, two $31,000 $47,000 $132,000 $16,000 three 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 | 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 $ 13,427,000 $ 15,056,000 Acquisitions of receivable portfolios 2,213,000 6,051,000 Net cash collections from collection of consumer receivables acquired for liquidation (6,015,000 ) (7,377,000 ) Net cash collections represented by account sales of consumer receivables acquired for liquidation (190,000 ) — Effect of foreign currency translation (68,000 ) (27,000 ) Finance income recognized 4,095,000 5,106,000 Balance, end of period $ 13,462,000 $ 18,809,000 Finance income as a percentage of collections 66.00 % 69.22 % During the three December 31, 2016, $35.0 $2.2 three December 31, 2015, $97.7 $6.1 As of December 31, 2016, $5.0 $4.6 $9.6 71.1% $13.5 December 31, 2016. As of December 31, 2015, $4.7 $4.0 $8.7 46.3% $18.8 December 31, 2015. 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) $ 11,400,000 $ 12,245,000 Commissions and fees (2) 5,195,000 4,868,000 Net collections $ 6,205,000 $ 7,377,000 ( 1 Gross collections include: collections from third ( 2 Commissions are earned by third December 2007 one 3% |
Note 5 - Litigation Funding
Note 5 - Litigation Funding | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Other Investments Disclosure [Text Block] | Note 5 —Litigation Funding Equity Method Investment On December 28, 2011, 80% $2.3 $3.1 first 2017 2016, $49.1 $48.6 December 31, 2016 September 30, 2016, Equity method investments as of December 31, 2016 September 30, 2016 December 31, 2016 September 30, 2016 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Pegasus Funding, LLC $ 49,141,000 80 % $ 48,582,000 80 % The carrying value of the Company's equity investment at December 31, 2016 $49,141,000, $559,000 $48,582,000. $404,000 three December 31, 2016, $155,000 three December 31, 2016. The carrying value of the Company's equity investment at September 30, 2016 $48,582,000, $7,831,000 $40,751,000. $10,551,000, $2,720,000 2016. On November 8, 2016, 80% 20% not December 28, 2016. December 28, 2011 ( Pursuant to the Term Sheet, the parties thereto have 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 thereto have 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. See Note 20 The results of operations and financial position of the Company’s equity investment in Pegasus are summarized below: Condensed S tatement of O perations I nformation Three months ended December 31, 2016 December 31 , 201 5 Personal injury claims income $ 2,302,000 $ 3,085,000 Operating expenses 1,797,000 1,218,000 Income from operations $ 505,000 $ 1,867,000 Earnings from equity method investment $ 404,000 $ 1,494,000 Condensed Balance Sheet I nformation December 31, 2016 September 30, 2016 Cash $ 1,065,000 $ 539,000 Investment in personal injury claims 48,275,000 48,289,000 Other assets 109,000 188,000 Total Assets $ 49,449,000 $ 49,016,000 Due to Asta $ 34,560,000 $ 34,404,000 Other liabilities 1,006,000 1,053,000 Equity 13,883,000 13,559,000 Total Liabilities and Equity $ 49,449,000 $ 49,016,000 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 6 - Furniture and Equipmen
Note 6 - Furniture and Equipment | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 6 —Furniture & Equipment Furniture and equipment consist of the following as of the dates indicated: December 31 , 2016 September 30, 2016 Furniture $ 273,000 $ 273,000 Equipment 235,000 235,000 Software 1,356,000 1,350,000 1,864,000 1,858,000 Less accumulated depreciation and amortization 1,688,000 1,662,000 Balance, end of period $ 176,000 $ 196,000 |
Note 7- Non Recourse Debt
Note 7- Non Recourse Debt | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 7 —Non Recourse Debt 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, $2.9 $1.9 $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 On May 2, 2014, $20 $20.0 $30 three 275 $150 March 30, 2016, 225 $50 $100 No $8.2 $10 December 31, 2016 September 30, 2016, 2 not no December 31, 2016. |
Note 8 - Discontinued Operation
Note 8 - Discontinued Operations | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 8 —Discontinued Operations 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 ( 13 On January 1, 2016, two two one two December 2016. not January 1, 2017. On December 13, 2017, $10.5 $4.49 $5.75 7% first $1.9 September 30, 2017. As a result of this sale all prior periods presented in the Company's consolidated financial statements will account for CBC as a discontinued operation. This determination resulted in the reclassification of the assets and liabilities comprising the structured settlement business to assets related to discontinued operations in the consolidated balance sheets, and a corresponding adjustment to our consolidated statements of operations to reflect discontinued operations for all periods presented. As of December 31, 2016, $94.5 $74.2 September 30, 2016, $91.5 $69.2 three December 31, 2016 2015, $1.3 $0.3 The following table presents the operating results, for the three December 31, 2016 2015, Three months ended December 31, 201 6 December 31, 201 5 Revenues: Unrealized (loss) gain on structured settlements $ (1,682,000 ) $ 1,527,000 Interest income on structured settlements 1,901,000 1,227,000 Total revenues 219,000 2,754,000 Other income 15,000 — 234,000 2,754,000 Expenses: General and administrative expenses 1,488,000 1,379,000 Interest expense 932,000 726,000 2,420,000 2,105,000 (Loss) income from discontinued operations before income tax (2,186,000 ) 649,000 Income tax (benefit) expense from discontinued operations (928,000 ) 273,000 (Loss) income from discontinued operations before non-controlling interest (1,258,000 ) 376,000 Non-controlling interest — 104,000 (Loss) income from discontinued operations, net of income tax $ (1,258,000 ) $ 272,000 The major components of assets and liabilities related to discontinued operations are summarized below: Dec ember 3 1 , 201 6 Sept ember 3 0 , 2016 Cash and cash equivalents $ 1,241,000 (1) $ 1,198,000 Restricted cash 499,000 499,000 Structured settlements 88,277,000 86,091,000 Furniture and equipment, net 43,000 47,000 Goodwill 1,405,000 1,405,000 Other assets 3,061,000 2,266,000 Total assets related to discontinued operations $ 94,526,000 $ 91,506,000 Other debt - CBC 71,566,000 67,435,000 Other liabilities 2,603,000 1,803,000 Total liabilities related to discontinued operations $ 74,169,000 $ 69,238,000 ( 1 one December 31, 2016 $0.7 Structured Settlements Prior to our sale of CBC, CBC purchased 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 $1.7 three December 31, 2016, $2.1 one $0.5 $3.3 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 purchased 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, 2016: December 31 , September 30, Maturity (1) (2) $ 143,544,000 $ 133,059,000 Unearned income (55,267,000 ) (46,968,000 ) Structured settlements, net $ 88,277,000 $ 86,091,000 ( 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 Interest Rate December 31 , September 30, 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 $25,000,000 revolving line of credit 4.1 % 15,264,000 10,154,000 Encumbered structured settlements 71,566,000 67,435,000 Structured settlements not encumbered 16,711,000 18,656,000 Total structured settlements $ 88,277,000 $ 86,091,000 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 100,963,000 Total $ 143,544,000 The Company assumed $25.9 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% |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 9 —Commitments and Contingencies Employment Agreements On November 11, 2016, $250,000, 15% 18%. third 15% five may may two two 20 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 March 31, 2016, The Company reassessed the situation as of September 30, 2016 $0.3 three September 30, 2016. December 31, 2016 $2.3 20 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 not |
Note 10 - Income Recognition, I
Note 10 - 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 1 0 —Income Recognition, Impairments, and Commissions and Fees 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 ASTA FUNDING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ( R estated) Note 10—Income (continued) Income Recognition 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. Management assesses the quality of the personal injury claims portfolio through an analysis of the underlying personal injury fundings on a case by case basis. Cases are reviewed through periodic updates with attorneys handling the cases, as well as with third not The funding of matrimonial actions is on a non-recourse basis. Revenue from matrimonial actions is recognized under the cost recovery method. The Company recognizes revenue for GAR Disability Advocates when disability claimant's cases close with the social security administration and the applicable 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 $3.4 December 31, 2016. Commissions and fees Commissions and fees are the contractual commissions earned by third third |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 11 —Income Taxes 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 December 31, 2016 70.3%, 32.8% 2017 34% 2016 35% The Company files income tax returns in the U.S federal jurisdiction, various state jurisdictions, and various foreign countries. The Company does not September 30, 2014 2015 ASTA FUNDING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ( R estated) |
Note 12 - Net (Loss) Income Per
Note 12 - Net (Loss) Income Per Share | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 12—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 December 31, 2016 2015: Three Months Ended December 31, 2016 Three Months Ended December 31, 2015 Net Weighted Average Per Share Net Weighted Average Per Share Net (loss) income from continuing operations $ (1,688,000 ) 11,876,224 $ (0.14 ) $ 1,291,000 12,155,421 $ 0.11 Net (loss) income from discontinued operations (1,258,000 ) 11,876,224 (0.11 ) 272,000 12,155,421 0.02 $ (2,946,000 ) $ (0.25 ) $ 1,563,000 $ 0.13 Effect of Dilutive Stock — — 276,465 — Diluted $ (2,946,000 ) 11,876,224 $ (0.25 ) $ 1,563,000 12,431,886 $ 0.13 For the three December 31, 2015, 454,205 $9.47 not |
Note 13 - Stock Based Compensat
Note 13 - Stock Based Compensation | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 1 3 —Stock Based Compensation 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 14 - Stock Option Plans
Note 14 - Stock Option Plans | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stock Option Plans [Text Block] | Note 1 4 —Stock Option Plans 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 15 - Stockholders' Equity
Note 15 - Stockholders' Equity | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 1 5 —Stockholders’ Equity 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 ( 20 |
Note 16 - Fair Value of Financi
Note 16 - Fair Value of Financial Measurements and Disclosures | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 1 6 —Fair Value of Financial Measurements and Disclosures 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 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 September 30, 2016 Carrying Fair Carrying Fair Financial assets Cash equivalents (Level 1) $ 936,000 $ 936,000 $ 923,000 $ 923,000 Other investment, net (Level 1) 3,354,000 3,354,000 3,590,000 3,590,000 Available-for-sale investments (Level 1) 55,045,000 55,045,000 56,763,000 56,763,000 Consumer receivables acquired for liquidation (Level 3) 13,462,000 45,061,000 13,427,000 47,233,000 The following assets have been reclassified to discontinued operations as of December 31, 2016 September 30, 2016: December 31, 2016 September 30, 2016 Carrying Fair Carrying Fair Financial asset Structured settlements (Level 3) 88,277,000 88,277,000 86,091,000 86,091,000 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 equivalents – The Company considers all highly liquid debt instruments purchased with an original maturity of Three months or less to be cash equivalents. The carrying amount of cash equivalents 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. Other investments – The Company estimated the fair value using the net asset value per share of the investment. There are no 5 October 2014). 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 $1.7 three December 31, 2016, $2.1 one $0.5 $3.3 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 Input Weighted Average Rate Structured settlements at fair value $ 88,277,000 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 financial instruments at fair value using significant unobservable inputs (Level 3 three December 31, 2016 Structured Settlement Balance at September 30, 2016 $ 86,091,000 Fair value adjustment (3,611,000 ) Total gains included in earnings 1,598,000 Purchases 4,595,000 Interest accreted 1,567,000 Payments received (1,963,000 ) Total $ 88,277,000 The amount of total losses for the three month period included in earnings attributable to the change in unrealized losses relating to assets held at December 31, 2016 $ (1,682,000 ) Realized and unrealized losses included in earnings in the accompanying consolidated statements of operations for the three December 31, 2016 Total losses included in the three months ended December 31, 2016 $ (1,682,000 ) Change in unrealized losses relating to assets still held at December 31, 2016 $ (1,682,000 ) |
Note 17 - Segment Reporting
Note 17 - Segment Reporting | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 7 —Segment Reporting The Company operates through strategic business units that are aggregated into three three • Consumer receivables - may may • Personal injury claims (Equity Method of Accounting) January 2017, not • 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 GAR Disability (Equity Investment) Personal Injury Claims Corporate Total Three Months Ended December 31, 2016: Revenues $ 4.1 $ 1.4 $ — $ — $ 5.5 Other income — — — 0.4 0.4 Segment profit (loss) 3.2 (0.9 ) 0.4 (3.7 ) (1.0 ) Segment Assets(1) 17.6 1.4 49.2 188.3 (4) 256.5 2015: Revenues 5.1 0.7 — — 5.8 Other income — — — 0.4 0.4 Segment profit (loss) 4.7 (1.8 ) 1.5 (2.5 ) 1.9 Segment Assets(1) 24.8 2.4 36.42 174.2 (4) 237.8 The Company does not ( 1 Includes other amounts in other line items on the consolidated balance sheet. ( 2 The Company records Pegasus as an equity investment in its consolidated financial statements. For segment reporting the Company has included its pro-rated share of the earnings and losses from its investment under the Personal Injury Claims segment. ( 3 Corporate is not three not ( 4 Included in Corporate are approximately $94.5 $74.6 December 31, 2016 2015, |
Note 18 - Accumulated Other Com
Note 18 - Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 18 - Accumulated Other Comprehensive (Loss) Income Accumulated other comprehensive (loss) income consists of: Three Months ended December 31, 201 6 Year Ended September 30, 2016 Unrealized gain (loss) on marketable securities Foreign currency translation, net Total Unrealized gain (loss) on marketable securities Foreign currency translation, net Total Beginning Balance $ 624,000 $ 179,000 $ 803,000 $ (205,000 ) $ 225,000 $ 20,000 Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of ($12,000) and $25,000 at December 31 2016, and September 30, 2016, respectively. - 18,000 18,000 - (46,000 ) (46,000 ) 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 ) 867,000 - 867,000 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 ) (38,000 ) - (38,000 ) Net current-period other comprehensive (loss) income (1,266,000 ) 18,000 (1,248,000 ) 829,000 (46,000 ) $ 783,000 Ending balance $ (642,000 ) $ 197,000 $ (445,000 ) $ 624,000 $ 179,000 $ 803,000 |
Note 19 - Related Party Transac
Note 19 - Related Party Transactions | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 19 —Related Party Transactions On September 17, 2015, not two September 17, 2017. three 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 December 31, 2016. In June 2015, $0.5 $1.2 For the three December 31, 2016 2015, $100,000 $42,000, December 31, 2016 September 30, 2016, $0.7 $0.8 |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 3 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 20—Subsequent Mangrove Matter On March 22, 2016, 15 On January 6, 2017, The Settlement Agreement provided 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. Additionally, the Company indemnified Mangrove from and against any excise tax imposed as a result of this Settlement Agreement. The Settlement Agreement was 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 also entered into a Voting Agreement dated January 6, 2017 ( not 49% not On January 19, 2017, 5,314,009 $10.35 January 6, 2017, 4,005,701 If more than 5,314,009 not The tender offer expired on February 15, 2017, 11:59 6,022,253 not 708,244 88.24% not 5,314,009 not 44.7% February 6, 2017. second 2017 $54.2 $797,000 January 18, 2017 $10.20 2012 471,086 March 10, 2017 $4.9 Simia Effective November 11, 2016, five may may two 5 As of July 17, 2017, no No Pegasus The Company filed for arbitration with the American Arbitration Association ("AAA") against Pegasus in April 2017 April 18, 2017, June 30, 2017 $24.7 5 On July 17, 2017, August 25, 2017 On January 12, 2018, Additionally, on January 12, 2018, 20% $1,800,000. 100% As a result of the purchase of the Seller’s 20% January 12, 2018 March 31, 2018, 5 Legal Matters A competitor of the Company’s former subsidiary CBC Settlement Funding, LLC (“CBC”) alleged that CBC had unlawfully purchased certain of the competitor’s trade secrets and customer lists from intermediaries who allegedly arranged and/or paid for said materials from the competitor. CBC denied any wrongdoing and disclaimed liability. The parties settled the matter for a payment by the Company of $500,000 November 22, 2017, On November 24, 2017, $0.8 On January 23, 2018, $2.3 one third $4.6 third 9 Special Dividend On February 5, 2018, $5.30 February 28, 2018 February 16, 2018, March 1, 2018. $35 IRS Examination The Company's amended federal tax return for the year ended September 30, 2014 2015 US Tax Reform On December 22, 2017 35% 21%. September 30, 2017, one not first 2018. |
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 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 US 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 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 five December 31, 2016 $1.4 three $0.5 not $8.2 $10 December 31, 2016 September 30, 2016, not 7 not |
Equity Method Investments [Policy Text Block] | Equity method investment Investee companies that are not not 20% 50% not Pegasus is the Company's 50% 50% 80% Serlefin BPO&O Peru S.A.C. (“Serlefin Peru”) is the Company's 49% 51% three 51% Additionally, the Company and Serlefin jointly purchase international consumer debt portfolios under a purchase agreement. The Company and Serlefin purchase the portfolios on a pro-rata basis of 80% 20%, $0.2 $0 three December 31, 2016 2015, The carrying value of the investment in Serlefin Peru was $0.2 December 31, 2016 September 30, 2016. December 31, 2016 $0.1 not When the Company's carrying value in an equity method investee company is reduced to zero, no not not no three December 31, 2016 2015. |
Personal Injury Claim Advances [Policy Text Block] | Personal Injury Claim Advances Management assesses the quality of the personal injury claims portfolio through an analysis of the underlying personal injury fundings on a case by case basis. Cases are reviewed through periodic updates with attorneys handling the cases, as well as with third 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 $1.4 $1.4 |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, 606, December 15, 2017 December 15, 2016, 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 In November 2016, No. 2016 18, 2016 18" not 2016 18 not 2016 18 October 1, 2016, not In January 2017, 2017 04 350 2 December 15, 2019, not |
Note 1 - Restatement of Finan31
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] | Consolidated Balance Sheet December 31, 2016 As Reported De-Consolidation of Pegasus ( 1 ) Adjustments Restated ASSETS Cash and cash equivalents $ 4,770,000 $ (1,065,000 ) $ (9,000 ) (2)(6) $ 3,696,000 Restricted cash 8,165,000 — — 8,165,000 Available for sale investments (at fair value) 55,045,000 — — 55,045,000 Consumer receivables acquired for liquidation (at net realizable value) 13,243,000 — 219,000 (2) 13,462,000 Investment in personal injury claims, net 47,875,000 (47,875,000 ) — — Other investments, net 3,354,000 — — 3,354,000 Due from third party collection agencies and attorneys 1,035,000 — (31,000 ) (2) 1,004,000 Prepaid and income taxes receivable 5,267,000 — (371,000 ) (8) 4,896,000 Furniture and equipment, net 176,000 — — 176,000 Equity method investment — 48,720,000 421,000 (7) 49,141,000 Deferred income taxes 16,585,000 — (1,258,000 ) (2)(8) 15,327,000 Goodwill 1,410,000 — — 1,410,000 Other assets 6,203,000 (109,000 ) 187,000 (2) 6,281,000 Assets related to discontinued operations 94,335,000 — 191,000 (5)(6) 94,526,000 Total assets $ 257,463,000 $ (329,000 ) $ (651,000 ) $ 256,483,000 LIABILITIES Other liabilities 5,666,000 (1,133,000 ) 198,000 (2) 4,731,000 Liabilities related to discontinued operations 73,516,000 — 653,000 (5) 74,169,000 Total liabilities 79,182,000 (1,133,000 ) 851,000 78,900,000 Commitments and contingencies STOCKHOLDERS’ EQUITY Preferred stock — — — — Common stock 133,000 — — 133,000 Additional paid-in capital 67,020,000 — 8,000 (6) 67,028,000 Retained earnings 126,406,000 — (2,614,000 ) (2)(3) (4)(5) (6)(7)(8) 123,792,000 Accumulated other comprehensive loss (1,549,000 ) — 1,104,000 (2) (445,000 ) Treasury stock (at cost) (12,925,000 ) — — (12,925,000 ) Non-controlling interest (804,000 ) 804,000 — — Total stockholders’ equity 178,281,000 804,000 (1,502,000 ) 177,583,000 Total liabilities and stockholders’ equity $ 257,463,000 $ (329,000 ) $ (651,000 ) $ 256,483,000 As Reported De-Consolidation of Pegasus ( 1 ) Adjustments Restated Revenues: Finance income, net $ 4,001,000 $ — $ 94,000 (2) $ 4,095,000 Personal injury claims income 2,302,000 (2,302,000 ) — Disability fee income 1,354,000 — — 1,354,000 Total revenues 7,657,000 (2,302,000 ) 94,000 5,449,000 Other income 544,000 — (93,000 ) (2) 451,000 8,201,000 (2,302,000 ) 1,000 5,900,000 General and administrative 9,556,000 (2,195,000 ) (66,000 ) (2)(6) 7,295,000 Interest 2,000 (2,000 ) — — Earnings from equity method investment — (84,000 ) (320,000 ) (7) (404,000 ) 9,558,000 (2,281,000 ) (386,000 ) 6,891,000 (Loss) from continuing operations before income tax (1,357,000 ) (21,000 ) 387,000 (991,000 ) Income tax (benefit)/expense (555,000 ) — 1,252,000 (8) 697,000 Net (loss) income from continuing operations (802,000 ) (21,000 ) (865,000 ) (1,688,000 ) Net loss from discontinued operations, net of income tax (834,000 ) — (424,000 ) (3)(5)(8) (1,258,000 ) Less: net income attributable to non-controlling interests 21,000 (21,000 ) Net loss attributable to Asta Funding, Inc. $ (1,657,000 ) $ — $ (1,289,000 ) $ (2,946,000 ) Basic and diluted loss per share: Continuing operations $ (0.07 ) $ (0.14 ) Discontinued operations (0.07 ) (0.11 ) $ (0.14 ) $ (0.25 ) Consolidated Statement of Comprehensive Loss For the Three Months Ended December 31, 2016 As Reported De-Consolidation of Pegasus (1 ) Adjustments Restated Comprehensive income (loss) is as follows: Net loss $ (1,657,000 ) $ — $ (1,289,000 ) $ (2,946,000 ) Net unrealized securities (loss) gain, net of tax (1,239,000 ) — — (1,239,000 ) Reclassification adjustments for securities sold, net of tax (27,000 ) — — (27,000 ) Foreign currency translation, net of tax (369,000 ) — 387,000 (2)(6) 18,000 Other comprehensive loss (1,635,000 ) — 387,000 (1,248,000 ) Total comprehensive loss $ (3,292,000 ) $ — $ (902,000 ) $ (4,194,000 ) Consolidated Statement of Cash Flows For the Three Months Ended December 31, 2016 As Reported Adjustments Restated Cash flows from operating activities: Net loss from continuing operations $ (823,000 ) $ (865,000 ) $ (1,688,000 ) Net loss from discontinued operations (834,000 ) (424,000 ) (1,258,000 ) (1,657,000 ) (1,289,000 ) (2,946,000 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 105,000 (79,000 ) 26,000 Deferred income taxes (211,000 ) 631,000 (2)(8) 420,000 Stock based compensation (6,000 ) — (6,000 ) Loss on sale of available-for-sale securities 45,000 — 45,000 Unrealized gain on other investments (18,000 ) — (18,000 ) Unrealized foreign exchange loss on other investments 254,000 — 254,000 Earnings from equity method investment — (404,000 ) (7) (404,000 ) Changes in: Prepaid and income taxes receivable (4,387,000 ) 205,000 (8) (4,182,000 ) Due from third party collection agencies and attorneys (30,000 ) 70,000 (2) 40,000 Other assets 498,000 (191,000 ) (2) 307,000 Income tax payable (252,000 ) 252,000 (8) — Other liabilities 373,000 388,000 (2) 761,000 Non-controlling interest 21,000 (21,000 ) (1) — Net cash used in operating activities of discontinued operations (391,000 ) 760,000 (3)(5) 369,000 Net cash used in operating activities (5,656,000 ) 322,000 (5,334,000 ) Cash flows from investing activities: Purchase of consumer receivables acquired for liquidation (2,213,000 ) — (2,213,000 ) Principal collected on receivables acquired for liquidation 2,641,000 (512,000 ) (2)(4)(5)(6) 2,129,000 Purchase of available-for-sale securities (7,568,000 ) — (7,568,000 ) Proceeds from sales of available-for-sale securities 7,132,000 — 7,132,000 Investments in personal injury claims — advances (5,178,000 ) 5,178,000 (1) — Investments in personal injury claims — receipts 5,592,000 (5,592,000 ) (1) — Increase in equity method investment — (155,000 ) (1) (155,000 ) Capital expenditures (6,000 ) — (6,000 ) Cash flows from investing activities related to discontinued operations (2,632,000 ) — (2,632,000 ) Net cash used in investing activities (2,232,000 ) (1,081,000 ) (3,313,000 ) Cash flows from financing activities: Distributions to non-controlling interest (180,000 ) 180,000 (1) — Cash flows from financing activities related to discontinued operations 4,131,000 — 4,131,000 Net cash used in financing activities 3,951,000 180,000 4,131,000 Foreign currency effect on cash — 52,000 (2) 52,000 Net decrease in cash, cash equivalents and restricted cash including cash, cash equivalents classified within assets related to discontinued operations (3,937,000 ) (527,000 ) (4,464,000 ) Less: net increase in cash, cash equivalents and restricted cash classified within assets related to discontinued operations 43,000 — 43,000 Net decrease in cash , cash equivalents and restricted cash (3,894,000 ) (527,000 ) (1)(2)(3)(4)(5)(6)(7)(8) (4,421,000 ) Cash , cash equivalents and restricted cash at beginning of period 16,829,000 (547,000 ) 16,282,000 Cash , cash equivalents and restricted cash at end of period $ 12,935,000 $ (1,074,000 ) $ 11,861,000 Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ 3,000 $ (10,000 ) $ (7,000 ) Consumer receivables acquired for liquidation (245,000 ) 464,000 219,000 Due from third party collection agencies and attorneys 45,000 (76,000 ) (31,000 ) Deferred income taxes (722,000 ) (199,000 ) (921,000 ) Other assets (33,000 ) 220,000 187,000 Other liabilities (18,000 ) 216,000 198,000 Accumulated other comprehensive loss 718,000 386,000 1,104,000 Retained earnings (1,653,000 ) (203,000 ) (1,856,000 ) Increase (decrease) in: Impact from September 30 , 2016 10K/A filing Current period impact Cumulative net impact Assets related to discontinued operations $ 307,000 $ (161,000 ) $ 146,000 Liabilities related to discontinued operations 756,000 (103,000 ) 653,000 Retained earnings (442,000 ) (60,000 ) (502,000 ) Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ - $ (2,000 ) $ (2,000 ) Other liabilities 269,000 (269,000 ) - Retained earnings (137,000 ) 270,000 133,000 Assets related to discontinued operations 45,000 - 45,000 Additional paid in capital 8,000 - 8,000 |
Note 3 - Available-for-sale I32
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 $ 55,723,000 $ 1,089,000 $ (49,000 ) $ 56,763,000 |
Note 4 - Consumer Receivables33
Note 4 - Consumer Receivables Acquired for Liquidation (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 $ 13,427,000 $ 15,056,000 Acquisitions of receivable portfolios 2,213,000 6,051,000 Net cash collections from collection of consumer receivables acquired for liquidation (6,015,000 ) (7,377,000 ) Net cash collections represented by account sales of consumer receivables acquired for liquidation (190,000 ) — Effect of foreign currency translation (68,000 ) (27,000 ) Finance income recognized 4,095,000 5,106,000 Balance, end of period $ 13,462,000 $ 18,809,000 Finance income as a percentage of collections 66.00 % 69.22 % |
Schedule of Collections on Gross Basis [Table Text Block] | For the Three Months Ended December 31 , 2016 (restated) 2015 Gross collections (1) $ 11,400,000 $ 12,245,000 Commissions and fees (2) 5,195,000 4,868,000 Net collections $ 6,205,000 $ 7,377,000 |
Note 5 - Litigation Funding (Ta
Note 5 - Litigation Funding (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Equity Method Investments [Table Text Block] | December 31, 2016 September 30, 2016 Carrying Value Ownership Percentage Carrying Value Ownership Percentage Pegasus Funding, LLC $ 49,141,000 80 % $ 48,582,000 80 % |
Equity Method Investment, Summarized Financial Information [Table Text Block] | Condensed S tatement of O perations I nformation Three months ended December 31, 2016 December 31 , 201 5 Personal injury claims income $ 2,302,000 $ 3,085,000 Operating expenses 1,797,000 1,218,000 Income from operations $ 505,000 $ 1,867,000 Earnings from equity method investment $ 404,000 $ 1,494,000 Condensed Balance Sheet I nformation December 31, 2016 September 30, 2016 Cash $ 1,065,000 $ 539,000 Investment in personal injury claims 48,275,000 48,289,000 Other assets 109,000 188,000 Total Assets $ 49,449,000 $ 49,016,000 Due to Asta $ 34,560,000 $ 34,404,000 Other liabilities 1,006,000 1,053,000 Equity 13,883,000 13,559,000 Total Liabilities and Equity $ 49,449,000 $ 49,016,000 |
Note 6 - Furniture and Equipm35
Note 6 - 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 $ 273,000 $ 273,000 Equipment 235,000 235,000 Software 1,356,000 1,350,000 1,864,000 1,858,000 Less accumulated depreciation and amortization 1,688,000 1,662,000 Balance, end of period $ 176,000 $ 196,000 |
Note 8 - Discontinued Operati36
Note 8 - Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three months ended December 31, 201 6 December 31, 201 5 Revenues: Unrealized (loss) gain on structured settlements $ (1,682,000 ) $ 1,527,000 Interest income on structured settlements 1,901,000 1,227,000 Total revenues 219,000 2,754,000 Other income 15,000 — 234,000 2,754,000 Expenses: General and administrative expenses 1,488,000 1,379,000 Interest expense 932,000 726,000 2,420,000 2,105,000 (Loss) income from discontinued operations before income tax (2,186,000 ) 649,000 Income tax (benefit) expense from discontinued operations (928,000 ) 273,000 (Loss) income from discontinued operations before non-controlling interest (1,258,000 ) 376,000 Non-controlling interest — 104,000 (Loss) income from discontinued operations, net of income tax $ (1,258,000 ) $ 272,000 Dec ember 3 1 , 201 6 Sept ember 3 0 , 2016 Cash and cash equivalents $ 1,241,000 (1) $ 1,198,000 Restricted cash 499,000 499,000 Structured settlements 88,277,000 86,091,000 Furniture and equipment, net 43,000 47,000 Goodwill 1,405,000 1,405,000 Other assets 3,061,000 2,266,000 Total assets related to discontinued operations $ 94,526,000 $ 91,506,000 Other debt - CBC 71,566,000 67,435,000 Other liabilities 2,603,000 1,803,000 Total liabilities related to discontinued operations $ 74,169,000 $ 69,238,000 |
Structured Settlements [Table Text Block] | December 31 , September 30, Maturity (1) (2) $ 143,544,000 $ 133,059,000 Unearned income (55,267,000 ) (46,968,000 ) Structured settlements, net $ 88,277,000 $ 86,091,000 |
Schedule of Fair Value of Debt [Table Text Block] | Interest Rate December 31 , September 30, 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 $25,000,000 revolving line of credit 4.1 % 15,264,000 10,154,000 Encumbered structured settlements 71,566,000 67,435,000 Structured settlements not encumbered 16,711,000 18,656,000 Total structured settlements $ 88,277,000 $ 86,091,000 |
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 100,963,000 Total $ 143,544,000 |
Note 12 - Net (Loss) Income P37
Note 12 - Net (Loss) Income Per Share (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 Three Months Ended December 31, 2015 Net Weighted Average Per Share Net Weighted Average Per Share Net (loss) income from continuing operations $ (1,688,000 ) 11,876,224 $ (0.14 ) $ 1,291,000 12,155,421 $ 0.11 Net (loss) income from discontinued operations (1,258,000 ) 11,876,224 (0.11 ) 272,000 12,155,421 0.02 $ (2,946,000 ) $ (0.25 ) $ 1,563,000 $ 0.13 Effect of Dilutive Stock — — 276,465 — Diluted $ (2,946,000 ) 11,876,224 $ (0.25 ) $ 1,563,000 12,431,886 $ 0.13 |
Note 13 - Stock Based Compens38
Note 13 - 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 14 - Stock Option Plans (T
Note 14 - 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 16 - Fair Value of Finan40
Note 16 - Fair Value of Financial Measurements and Disclosures (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | December 31, 2016 September 30, 2016 Carrying Fair Carrying Fair Financial assets Cash equivalents (Level 1) $ 936,000 $ 936,000 $ 923,000 $ 923,000 Other investment, net (Level 1) 3,354,000 3,354,000 3,590,000 3,590,000 Available-for-sale investments (Level 1) 55,045,000 55,045,000 56,763,000 56,763,000 Consumer receivables acquired for liquidation (Level 3) 13,462,000 45,061,000 13,427,000 47,233,000 December 31, 2016 September 30, 2016 Carrying Fair Carrying Fair Financial asset Structured settlements (Level 3) 88,277,000 88,277,000 86,091,000 86,091,000 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Fair Value Valuation Significant Unobservable Input Weighted Average Rate Structured settlements at fair value $ 88,277,000 Discounted cash flow Discount rate 4.83% - 5.36% |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Structured Settlement Balance at September 30, 2016 $ 86,091,000 Fair value adjustment (3,611,000 ) Total gains included in earnings 1,598,000 Purchases 4,595,000 Interest accreted 1,567,000 Payments received (1,963,000 ) Total $ 88,277,000 The amount of total losses for the three month period included in earnings attributable to the change in unrealized losses relating to assets held at December 31, 2016 $ (1,682,000 ) |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | Total losses included in the three months ended December 31, 2016 $ (1,682,000 ) Change in unrealized losses relating to assets still held at December 31, 2016 $ (1,682,000 ) |
Note 17 - Segment Reporting (Ta
Note 17 - Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (Dollars in millions) Consumer GAR Disability (Equity Investment) Personal Injury Claims Corporate Total Three Months Ended December 31, 2016: Revenues $ 4.1 $ 1.4 $ — $ — $ 5.5 Other income — — — 0.4 0.4 Segment profit (loss) 3.2 (0.9 ) 0.4 (3.7 ) (1.0 ) Segment Assets(1) 17.6 1.4 49.2 188.3 (4) 256.5 2015: Revenues 5.1 0.7 — — 5.8 Other income — — — 0.4 0.4 Segment profit (loss) 4.7 (1.8 ) 1.5 (2.5 ) 1.9 Segment Assets(1) 24.8 2.4 36.42 174.2 (4) 237.8 |
Note 18 - Accumulated Other C42
Note 18 - Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three Months ended December 31, 201 6 Year Ended September 30, 2016 Unrealized gain (loss) on marketable securities Foreign currency translation, net Total Unrealized gain (loss) on marketable securities Foreign currency translation, net Total Beginning Balance $ 624,000 $ 179,000 $ 803,000 $ (205,000 ) $ 225,000 $ 20,000 Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of ($12,000) and $25,000 at December 31 2016, and September 30, 2016, respectively. - 18,000 18,000 - (46,000 ) (46,000 ) 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 ) 867,000 - 867,000 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 ) (38,000 ) - (38,000 ) Net current-period other comprehensive (loss) income (1,266,000 ) 18,000 (1,248,000 ) 829,000 (46,000 ) $ 783,000 Ending balance $ (642,000 ) $ 197,000 $ (445,000 ) $ 624,000 $ 179,000 $ 803,000 |
Note 1 - Restatement of Finan43
Note 1 - Restatement of Financial Statements (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | ||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 3,696,000 | $ 6,282,000 | ||
Other Long-term Investments | ||||
Other Assets, Total | 6,281,000 | 6,585,000 | ||
Other Liabilities, Total | 4,731,000 | 3,987,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | ||||
Equity Method Investments | 49,141,000 | 48,582,000 | ||
Revenues, Total | 5,900,000 | $ 6,157,000 | ||
General and Administrative Expense, Total | 7,295,000 | 5,729,000 | ||
Net Income (Loss) Attributable to Noncontrolling Interest, Total | ||||
Income (Loss) from Equity Method Investments, Total | 404,000 | 1,494,000 | ||
Revenue, Net (Deprecated 2018-01-31) | 5,449,000 | 5,765,000 | ||
Other Nonoperating Income | 451,000 | 392,000 | ||
Disposal Group, Including Discontinued Operation, Assets, Total | 94,526,000 | 91,506,000 | ||
Retained Earnings (Accumulated Deficit), Ending Balance | 123,792,000 | 126,738,000 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 13,462,000 | 18,800,000 | 13,427,000 | |
Income Taxes Receivable | 4,896,000 | 714,000 | ||
Deferred Tax Assets, Net of Valuation Allowance, Total | 15,327,000 | 14,903,000 | ||
Income Tax Expense (Benefit), Total | 697,000 | $ 631,000 | ||
Pegasus Funding LLC [Member] | ||||
Equity Method Investments | $ 49,141,000 | $ 48,582,000 | ||
Equity Method Investment, Ownership Percentage | 80.00% | 80.00% | ||
Restatement Adjustment [Member] | ||||
Income (Loss) from Equity Method Investments, Total | [1] | $ 404,000 | ||
Restatement Adjustment [Member] | Accounting For Investment in Pegasus Under The Equity Method [Member] | ||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | [2],[3],[4] | (1,065,000) | ||
Other Long-term Investments | [2] | (47,875,000) | ||
Other Assets, Total | [2] | (109,000) | ||
Other Liabilities, Total | [2] | (1,133,000) | ||
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | [2] | 804,000 | ||
Equity Method Investments | [2] | 48,720,000 | ||
Revenues, Total | [2] | (2,302,000) | ||
General and Administrative Expense, Total | (2,197,000) | |||
Net Income (Loss) Attributable to Noncontrolling Interest, Total | [2] | (21,000) | ||
Income (Loss) from Equity Method Investments, Total | [2] | 84,000 | ||
Revenue, Net (Deprecated 2018-01-31) | [2] | (2,302,000) | ||
Other Nonoperating Income | [2] | |||
Disposal Group, Including Discontinued Operation, Assets, Total | [2] | |||
Retained Earnings (Accumulated Deficit), Ending Balance | [2] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | [2] | |||
Income Taxes Receivable | [2] | |||
Deferred Tax Assets, Net of Valuation Allowance, Total | [2] | |||
Income Tax Expense (Benefit), Total | [2] | |||
Restatement Adjustment [Member] | Foreign Currency Gains/Losses On Intercompany Balances and Transactions Corrections [Member] | ||||
General and Administrative Expense, Total | 204,000 | |||
Revenue, Net (Deprecated 2018-01-31) | 94,000 | |||
Other Nonoperating Income | (93,000) | |||
Restatement Adjustment [Member] | Revision of The Fair Market of The Structured Settlements [Member] | ||||
Structured Settlements, Fair Value | (2,600,000) | |||
Prepaid Income Taxes and Deferred Tax Assets | 1,000,000 | |||
Disposal Group, Including Discontinued Operation, Assets, Total | $ 727,000 | |||
Retained Earnings (Accumulated Deficit), Ending Balance | 727,000 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | (727,000) | 727,000 | ||
Restatement Adjustment [Member] | Addition of Certain Unallocated Payments [Member] | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | (648,000) | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | $ (648,000) | |||
Restatement Adjustment [Member] | Correction Of An Amortizable Asset and Related Liability In Conjunction With An Asset Purchase Agreement Entered Into In June 2015 With a Related Party [Member] | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | (60,000) | |||
Restatement Adjustment [Member] | Correction of Other Liabilities That Had Not Been Properly Accrued To The Correct Period And/Or In Improper Amounts [Member] | ||||
General and Administrative Expense, Total | (270,000) | |||
Restatement Adjustment [Member] | Correction of Personal Injury Claims Assets Balance of Equity Investment [Member] | Pegasus Funding LLC [Member] | ||||
Equity Method Investments | 320,000 | |||
Income (Loss) from Equity Method Investments, Total | 320,000 | |||
Personal Injury Claims Assets | 400,000 | |||
Restatement Adjustment [Member] | Correction of Personal Injury Claims Assets Balance of Equity Investment, Impact of Related Accruals [Member] | Pegasus Funding LLC [Member] | ||||
Equity Method Investments | 101,000 | |||
Restatement Adjustment [Member] | Tax Impact of Errors Correction [Member] | ||||
Income Taxes Receivable | (371,000) | |||
Deferred Tax Assets, Net of Valuation Allowance, Total | (337,000) | |||
Income Tax Expense (Benefit), Total | 1,252,000 | |||
Discontinued Operation, Tax Effect of Discontinued Operation, Total | $ (363,000) | |||
[1] | The Company identified the personal injury claims asset balance of Pegasus was determined to be understated at December 31, 2016 by $400,000. The correction of these error resulted in an increase in equity method investment of $320,000, representing the Company's 80% financial interest, as of December 31, 2016. As a result of the correction of this error, earnings from the equity investment in Pegasus and income from continuing operations increased $320,000 for the three months ended December 31, 2016. Additionally the equity method investment was increased $101,000 to reflect the impact of related accruals in the September 30, 2016 10K/A. | |||
[2] | In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company's December 31, 2016 consolidated balance sheet, this resulted in (i) a decrease in cash of $1,065,000; (ii) a decrease in the investment in personal injury claims of $47,875,000; (iii) a decrease in other assets of $109,000; (iv) a decrease in other liabilities of $1,133,000; (v) an decrease in non-controlling interest of $804,000, offset by a corresponding increase in the equity method investment of $48,720,000. On the Company's consolidated statement of operations, this resulted in (i) a reduction in total revenues of $2,302,000; (ii) a reduction in expenses of $2,197,000; (iii) a decrease in the income attributable to the non-controlling interest of $21,000; and (iv) a decrease in earnings from equity method investment of $84,000 for the three months ended December 31, 2016. This change to the equity method of accounting had no effect on net (loss) income during the Non-Reliance Period. | |||
[3] | The Company determined that it had not previously accounted for certain foreign currency gains/losses on intercompany balances and transactions in accordance with US GAAP. The Company improperly accounted for the foreign currency effect of certain transactions as if they were long-term investments by including the foreign currency effect in accumulated other comprehensive income instead of properly recording the effect as operating expenses as required under ASC 830. The correction to properly apply US GAAP to these foreign currency matters resulted in increased revenue of $94,000, a decrease in other income of $93,000, and a increase in general and administrative expenses of $204,000 for the three months ended December 31, 2016. ASTA FUNDING, INC. AND SUBSIDIARIES The correction of foreign currency transaction on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ 3,000 $ (10,000 ) $ (7,000 ) Consumer receivables acquired for liquidation (245,000 ) 464,000 219,000 Due from third party collection agencies and attorneys 45,000 (76,000 ) (31,000 ) Deferred income taxes (722,000 ) (199,000 ) (921,000 ) Other assets (33,000 ) 220,000 187,000 Other liabilities (18,000 ) 216,000 198,000 Accumulated other comprehensive loss 718,000 386,000 1,104,000 Retained earnings (1,653,000 ) (203,000 ) (1,856,000 ) | |||
[4] | The Company identified other transactions that had not been properly accounted for in the correct period and/or for improper amounts and/or improper accounts. The adjustments of these errors were immaterial on an individual basis. The correction of this error resulted in decreased general and administrative expense of $270,000 for the three months ended December 31, 2016. The correction of these errors on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ - $ (2,000 ) $ (2,000 ) Other liabilities 269,000 (269,000) - Retained earnings (137,000 ) 270,000 133,000 Assets related to discontinued operations 45,000 - 45,000 Additional paid in capital 8,000 - 8,000 |
Note 1 - Restatement of Finan44
Note 1 - Restatement of Financial Statements - Adjustments to the Financial Statements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Cash and cash equivalents | $ 3,696,000 | $ 6,282,000 | |||||
Restricted cash | 8,165,000 | [1] | 10,000,000 | ||||
Available for sale investments (at fair value) | 55,045,000 | 56,763,000 | |||||
Consumer receivables acquired for liquidation (at net realizable value) | 13,462,000 | $ 18,800,000 | 13,427,000 | ||||
Investment in personal injury claims, net | |||||||
Other investments, net | 3,354,000 | 3,590,000 | |||||
Due from third party collection agencies and attorneys | 1,004,000 | 1,050,000 | |||||
Prepaid and income taxes receivable | 4,896,000 | 714,000 | |||||
Furniture and equipment, net | 176,000 | 196,000 | |||||
Equity method investment | 49,141,000 | 48,582,000 | |||||
Deferred income taxes | 15,327,000 | 14,903,000 | |||||
Goodwill | 1,410,000 | 1,410,000 | |||||
Other assets | 6,281,000 | 6,585,000 | |||||
Assets related to discontinued operations | 94,526,000 | 91,506,000 | |||||
Total assets | 256,483,000 | 237,800,000 | [2] | 255,008,000 | |||
Other liabilities | 4,731,000 | 3,987,000 | |||||
Liabilities related to discontinued operations | 74,169,000 | 69,238,000 | |||||
Total liabilities | 78,900,000 | 73,225,000 | |||||
Commitments and contingencies | |||||||
Preferred stock | |||||||
Common stock | 133,000 | 133,000 | |||||
Additional paid-in capital | 67,028,000 | 67,034,000 | |||||
Retained earnings | 123,792,000 | 126,738,000 | |||||
Accumulated other comprehensive (loss) income | (445,000) | 803,000 | |||||
Treasury stock (at cost) | (12,925,000) | (12,925,000) | |||||
Non-controlling interest | |||||||
Total stockholders’ equity | 177,583,000 | 177,696,000 | 181,783,000 | $ 183,407,000 | |||
Total liabilities and stockholders’ equity | 256,483,000 | 255,008,000 | |||||
Finance income, net | 4,095,000 | 5,106,000 | |||||
Personal injury claims income | |||||||
Disability fee income | 1,354,000 | 659,000 | |||||
Total revenues | 5,449,000 | 5,765,000 | |||||
Other Nonoperating Income | 451,000 | 392,000 | |||||
Revenues, Total | 5,900,000 | 6,157,000 | |||||
General and administrative | 7,295,000 | 5,729,000 | |||||
Interest | |||||||
Earnings from equity method investment | (404,000) | (1,494,000) | |||||
6,891,000 | 4,235,000 | ||||||
(Loss) from continuing operations before income tax | (991,000) | ||||||
Income Tax Expense (Benefit), Total | 697,000 | 631,000 | |||||
Net (loss) income from continuing operations | (1,688,000) | 1,291,000 | |||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (1,258,000) | 272,000 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest, Total | |||||||
Net loss attributable to Asta Funding, Inc. | $ (2,946,000) | ||||||
Continuing operations (in dollars per share) | $ (0.14) | ||||||
Discontinued operations (in dollars per share) | (0.11) | ||||||
(in dollars per share) | $ (0.25) | ||||||
Net loss | $ (2,946,000) | 1,563,000 | |||||
Net unrealized securities (loss) gain, net of tax | (1,239,000) | 330,000 | |||||
Amount reclassified from other comprehensive loss | (27,000) | (20,000) | |||||
Foreign currency translation, net | 18,000 | 14,000 | |||||
Other comprehensive loss | (1,248,000) | 324,000 | |||||
Total comprehensive loss | (4,194,000) | 1,887,000 | |||||
Net (loss) income from continuing operations | (1,688,000) | 1,291,000 | |||||
Net (loss) income from discontinued operations, net of income tax | (1,258,000) | 272,000 | |||||
Net (loss) income | (2,946,000) | 1,563,000 | |||||
Depreciation and amortization | 26,000 | 90,000 | |||||
Deferred income taxes | 420,000 | 95,000 | |||||
Stock based compensation | (6,000) | 278,000 | |||||
Loss on sale of available-for-sale securities | 45,000 | 31,000 | |||||
Unrealized gain on other investments | (18,000) | (62,000) | |||||
Unrealized foreign exchange loss on other investments | 254,000 | 118,000 | |||||
Earnings from equity method investment | (404,000) | (1,494,000) | |||||
Prepaid and income taxes receivable | (4,182,000) | 819,000 | |||||
Due from third party collection agencies and attorneys | 40,000 | 352,000 | |||||
Other assets | 307,000 | (2,360,000) | |||||
Income tax payable | |||||||
Other liabilities | 761,000 | (493,000) | |||||
Non-controlling interest | |||||||
Net cash provided by (used in) operating activities of discontinued operations | 369,000 | (479,000) | |||||
Net cash used in operating activities | (5,334,000) | (1,542,000) | |||||
Purchase of consumer receivables acquired for liquidation | (2,213,000) | (6,051,000) | |||||
Principal collected on receivables acquired for liquidation | 2,129,000 | 2,299,000 | |||||
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 | |||||
Investments in personal injury claims — advances | |||||||
Investments in personal injury claims — receipts | |||||||
(Increase) decrease in equity method investment | (155,000) | 5,827,000 | |||||
Capital expenditures | (6,000) | ||||||
Net cash used in investing activities of discontinued operations | (2,632,000) | (2,544,000) | |||||
Net cash used in investing activities | (3,313,000) | 3,898,000 | |||||
Distributions to non-controlling interest | |||||||
Net cash provided by financing activities of discontinued operations | 4,131,000 | 4,306,000 | |||||
Net cash used in financing activities | 4,131,000 | (2,874,000) | |||||
Foreign currency effect on cash | 52,000 | ||||||
Net decrease in cash, cash equivalents and restricted cash including cash, cash equivalents classified within assets related to discontinued operations | (4,464,000) | (518,000) | |||||
Less: net increase (decrease) in cash, cash equivalents and restricted cash classified within assets related to discontinued operations | 43,000 | (312,000) | |||||
Net decrease in cash, cash equivalents and restricted cash | (4,421,000) | (830,000) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 16,282,000 | 19,947,000 | 19,947,000 | ||||
Cash, cash equivalents and restricted cash at end of period | 11,861,000 | $ 19,117,000 | 16,282,000 | ||||
Correction of Foreign Currency Transaction, Impact from September 30, 2016 10K/A Filing [Member] | |||||||
Cash and cash equivalents | 3,000 | ||||||
Consumer receivables acquired for liquidation (at net realizable value) | (245,000) | ||||||
Due from third party collection agencies and attorneys | 45,000 | ||||||
Deferred income taxes | (722,000) | ||||||
Other assets | (33,000) | ||||||
Other liabilities | (18,000) | ||||||
Retained earnings | (1,653,000) | ||||||
Accumulated other comprehensive (loss) income | 718,000 | ||||||
Correction of Foreign Currency Transaction, Current Period Impact [Member] | |||||||
Cash and cash equivalents | (10,000) | ||||||
Consumer receivables acquired for liquidation (at net realizable value) | 464,000 | ||||||
Due from third party collection agencies and attorneys | (76,000) | ||||||
Deferred income taxes | (199,000) | ||||||
Other assets | 220,000 | ||||||
Other liabilities | 216,000 | ||||||
Retained earnings | (203,000) | ||||||
Accumulated other comprehensive (loss) income | 386,000 | ||||||
Correction of Foreign Currency Transaction, Cumulative Net Impact [Member] | |||||||
Cash and cash equivalents | (7,000) | ||||||
Consumer receivables acquired for liquidation (at net realizable value) | 219,000 | ||||||
Due from third party collection agencies and attorneys | (31,000) | ||||||
Deferred income taxes | (921,000) | ||||||
Other assets | 187,000 | ||||||
Other liabilities | 198,000 | ||||||
Retained earnings | (1,856,000) | ||||||
Accumulated other comprehensive (loss) income | 1,104,000 | ||||||
Correction of Amortizable Asset and Related Liability, Impact from September 30, 2016 10K/A Filing [Member] | |||||||
Assets related to discontinued operations | 307,000 | ||||||
Liabilities related to discontinued operations | 756,000 | ||||||
Retained earnings | (442,000) | ||||||
Correction of Amortizable Asset and Related Liability, Current Period Impact [Member] | |||||||
Assets related to discontinued operations | (161,000) | ||||||
Liabilities related to discontinued operations | (103,000) | ||||||
Retained earnings | (60,000) | ||||||
Correction of Amortizable Asset and Related Liability, Cumulative Net Impact [Member] | |||||||
Assets related to discontinued operations | 146,000 | ||||||
Liabilities related to discontinued operations | 653,000 | ||||||
Retained earnings | (502,000) | ||||||
Correction of Other Transactions, Impact from September 30, 2016 10K/A Filing [Member] | |||||||
Cash and cash equivalents | |||||||
Assets related to discontinued operations | 45,000 | ||||||
Other liabilities | 269,000 | ||||||
Retained earnings | (137,000) | ||||||
Additional paid in capital | 8,000 | ||||||
Correction of Other Transactions, Current Period Impact [Member] | |||||||
Cash and cash equivalents | (2,000) | ||||||
Assets related to discontinued operations | |||||||
Other liabilities | (269,000) | ||||||
Retained earnings | 270,000 | ||||||
Additional paid in capital | |||||||
Correction of Other Transactions, Cumulative Net Impact [Member] | |||||||
Cash and cash equivalents | (2,000) | ||||||
Assets related to discontinued operations | 45,000 | ||||||
Other liabilities | |||||||
Retained earnings | 133,000 | ||||||
Additional paid in capital | 8,000 | ||||||
Previously Reported [Member] | |||||||
Cash and cash equivalents | [1],[3],[4] | 4,770,000 | |||||
Restricted cash | [1] | 8,165,000 | |||||
Available for sale investments (at fair value) | 55,045,000 | ||||||
Consumer receivables acquired for liquidation (at net realizable value) | 13,243,000 | ||||||
Investment in personal injury claims, net | 47,875,000 | ||||||
Other investments, net | 3,354,000 | ||||||
Due from third party collection agencies and attorneys | 1,035,000 | ||||||
Prepaid and income taxes receivable | 5,267,000 | ||||||
Furniture and equipment, net | 176,000 | ||||||
Equity method investment | |||||||
Deferred income taxes | 16,585,000 | ||||||
Goodwill | 1,410,000 | ||||||
Other assets | 6,203,000 | ||||||
Assets related to discontinued operations | 94,335,000 | ||||||
Total assets | 257,463,000 | ||||||
Other liabilities | 5,666,000 | ||||||
Liabilities related to discontinued operations | 73,516,000 | ||||||
Total liabilities | 79,182,000 | ||||||
Commitments and contingencies | |||||||
Preferred stock | |||||||
Common stock | 133,000 | ||||||
Additional paid-in capital | 67,020,000 | ||||||
Retained earnings | 126,406,000 | ||||||
Accumulated other comprehensive (loss) income | (1,549,000) | ||||||
Treasury stock (at cost) | (12,925,000) | ||||||
Non-controlling interest | (804,000) | ||||||
Total stockholders’ equity | 178,281,000 | 181,783,000 | |||||
Total liabilities and stockholders’ equity | 257,463,000 | ||||||
Finance income, net | 4,001,000 | ||||||
Personal injury claims income | 2,302,000 | ||||||
Disability fee income | 1,354,000 | ||||||
Total revenues | 7,657,000 | ||||||
Other Nonoperating Income | 544,000 | ||||||
Revenues, Total | 8,201,000 | ||||||
General and administrative | 9,556,000 | ||||||
Interest | 2,000 | ||||||
Earnings from equity method investment | |||||||
9,558,000 | |||||||
(Loss) from continuing operations before income tax | (1,357,000) | ||||||
Income Tax Expense (Benefit), Total | (555,000) | ||||||
Net (loss) income from continuing operations | (802,000) | ||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (834,000) | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest, Total | 21,000 | ||||||
Net loss attributable to Asta Funding, Inc. | $ (1,657,000) | ||||||
Continuing operations (in dollars per share) | $ (0.07) | ||||||
Discontinued operations (in dollars per share) | (0.07) | ||||||
(in dollars per share) | $ (0.14) | ||||||
Net loss | $ (1,657,000) | ||||||
Net unrealized securities (loss) gain, net of tax | (1,239,000) | ||||||
Amount reclassified from other comprehensive loss | (27,000) | ||||||
Foreign currency translation, net | (369,000) | ||||||
Other comprehensive loss | (1,635,000) | ||||||
Total comprehensive loss | (3,292,000) | ||||||
Net (loss) income from continuing operations | (802,000) | ||||||
Net (loss) income from discontinued operations, net of income tax | (834,000) | ||||||
Net (loss) income | (1,657,000) | ||||||
Depreciation and amortization | 105,000 | ||||||
Deferred income taxes | (211,000) | ||||||
Stock based compensation | (6,000) | ||||||
Loss on sale of available-for-sale securities | 45,000 | ||||||
Unrealized gain on other investments | (18,000) | ||||||
Unrealized foreign exchange loss on other investments | 254,000 | ||||||
Earnings from equity method investment | |||||||
Prepaid and income taxes receivable | (4,387,000) | ||||||
Due from third party collection agencies and attorneys | (30,000) | ||||||
Other assets | 498,000 | ||||||
Income tax payable | (252,000) | ||||||
Other liabilities | 373,000 | ||||||
Non-controlling interest | 21,000 | ||||||
Net cash provided by (used in) operating activities of discontinued operations | (391,000) | ||||||
Net cash used in operating activities | (5,656,000) | ||||||
Purchase of consumer receivables acquired for liquidation | (2,213,000) | ||||||
Principal collected on receivables acquired for liquidation | 2,641,000 | ||||||
Purchase of available-for-sale securities | (7,568,000) | ||||||
Proceeds from sale of available-for-sale securities | 7,132,000 | ||||||
Investments in personal injury claims — advances | (5,178,000) | ||||||
Investments in personal injury claims — receipts | 5,592,000 | ||||||
(Increase) decrease in equity method investment | |||||||
Capital expenditures | (6,000) | ||||||
Net cash used in investing activities of discontinued operations | (2,632,000) | ||||||
Net cash used in investing activities | (2,232,000) | ||||||
Distributions to non-controlling interest | (180,000) | ||||||
Net cash provided by financing activities of discontinued operations | 4,131,000 | ||||||
Net cash used in financing activities | 3,951,000 | ||||||
Foreign currency effect on cash | |||||||
Net decrease in cash, cash equivalents and restricted cash including cash, cash equivalents classified within assets related to discontinued operations | (3,937,000) | ||||||
Less: net increase (decrease) in cash, cash equivalents and restricted cash classified within assets related to discontinued operations | 43,000 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (3,894,000) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 16,829,000 | ||||||
Cash, cash equivalents and restricted cash at end of period | 12,935,000 | 16,829,000 | |||||
Restatement Adjustment [Member] | |||||||
Earnings from equity method investment | [5] | (404,000) | |||||
Net (loss) income from continuing operations | (865,000) | ||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (424,000) | ||||||
Net loss | (1,289,000) | ||||||
Net (loss) income from continuing operations | (865,000) | ||||||
Net (loss) income from discontinued operations, net of income tax | (424,000) | ||||||
Net (loss) income | (1,289,000) | ||||||
Depreciation and amortization | (79,000) | ||||||
Deferred income taxes | [3],[6] | 631,000 | |||||
Stock based compensation | |||||||
Loss on sale of available-for-sale securities | |||||||
Unrealized gain on other investments | |||||||
Unrealized foreign exchange loss on other investments | |||||||
Earnings from equity method investment | [5] | (404,000) | |||||
Prepaid and income taxes receivable | [6] | 205,000 | |||||
Due from third party collection agencies and attorneys | [3] | 70,000 | |||||
Other assets | [3] | (191,000) | |||||
Income tax payable | [6] | 252,000 | |||||
Other liabilities | [3] | 388,000 | |||||
Non-controlling interest | [1] | (21,000) | |||||
Net cash provided by (used in) operating activities of discontinued operations | [7],[8] | 760,000 | |||||
Net cash used in operating activities | 322,000 | ||||||
Purchase of consumer receivables acquired for liquidation | |||||||
Principal collected on receivables acquired for liquidation | [3],[4],[8],[9] | (512,000) | |||||
Purchase of available-for-sale securities | |||||||
Proceeds from sale of available-for-sale securities | |||||||
Investments in personal injury claims — advances | [1] | 5,178,000 | |||||
Investments in personal injury claims — receipts | [1] | (5,592,000) | |||||
(Increase) decrease in equity method investment | [1] | (155,000) | |||||
Capital expenditures | |||||||
Net cash used in investing activities of discontinued operations | |||||||
Net cash used in investing activities | (1,081,000) | ||||||
Distributions to non-controlling interest | [1] | 180,000 | |||||
Net cash provided by financing activities of discontinued operations | |||||||
Net cash used in financing activities | 180,000 | ||||||
Foreign currency effect on cash | [3] | 52,000 | |||||
Net decrease in cash, cash equivalents and restricted cash including cash, cash equivalents classified within assets related to discontinued operations | (527,000) | ||||||
Less: net increase (decrease) in cash, cash equivalents and restricted cash classified within assets related to discontinued operations | |||||||
Net decrease in cash, cash equivalents and restricted cash | [1],[3],[4],[5],[6],[7],[8],[9] | (527,000) | |||||
Cash, cash equivalents and restricted cash at beginning of period | (547,000) | ||||||
Cash, cash equivalents and restricted cash at end of period | (1,074,000) | $ (547,000) | |||||
Restatement Adjustment [Member] | Accounting For Investment in Pegasus Under The Equity Method [Member] | |||||||
Cash and cash equivalents | [1],[3],[4] | (1,065,000) | |||||
Restricted cash | [1] | ||||||
Available for sale investments (at fair value) | [1] | ||||||
Consumer receivables acquired for liquidation (at net realizable value) | [1] | ||||||
Investment in personal injury claims, net | [1] | (47,875,000) | |||||
Other investments, net | [1] | ||||||
Due from third party collection agencies and attorneys | [1] | ||||||
Prepaid and income taxes receivable | [1] | ||||||
Furniture and equipment, net | [1] | ||||||
Equity method investment | [1] | 48,720,000 | |||||
Deferred income taxes | [1] | ||||||
Goodwill | [1] | ||||||
Other assets | [1] | (109,000) | |||||
Assets related to discontinued operations | [1] | ||||||
Total assets | [1] | (329,000) | |||||
Other liabilities | [1] | (1,133,000) | |||||
Liabilities related to discontinued operations | [1] | ||||||
Total liabilities | [1] | (1,133,000) | |||||
Commitments and contingencies | [1] | ||||||
Preferred stock | [1] | ||||||
Common stock | [1] | ||||||
Additional paid-in capital | [1] | ||||||
Retained earnings | [1] | ||||||
Accumulated other comprehensive (loss) income | [1] | ||||||
Treasury stock (at cost) | [1] | ||||||
Non-controlling interest | [1] | 804,000 | |||||
Total stockholders’ equity | [1] | 804,000 | |||||
Total liabilities and stockholders’ equity | [1] | (329,000) | |||||
Finance income, net | [1] | ||||||
Personal injury claims income | [1] | (2,302,000) | |||||
Disability fee income | [1] | ||||||
Total revenues | [1] | (2,302,000) | |||||
Other Nonoperating Income | [1] | ||||||
Revenues, Total | [1] | (2,302,000) | |||||
General and administrative | (2,197,000) | ||||||
Interest | [1] | (2,000) | |||||
Earnings from equity method investment | [1] | (84,000) | |||||
[1] | (2,281,000) | ||||||
(Loss) from continuing operations before income tax | [1] | (21,000) | |||||
Income Tax Expense (Benefit), Total | [1] | ||||||
Net (loss) income from continuing operations | [1] | (21,000) | |||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | [1] | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest, Total | [1] | (21,000) | |||||
Net loss attributable to Asta Funding, Inc. | [1] | ||||||
Net loss | [1] | ||||||
Net unrealized securities (loss) gain, net of tax | [1] | ||||||
Amount reclassified from other comprehensive loss | [1] | ||||||
Foreign currency translation, net | [1] | ||||||
Other comprehensive loss | [1] | ||||||
Total comprehensive loss | [1] | ||||||
Net (loss) income from continuing operations | [1] | (21,000) | |||||
Net (loss) income from discontinued operations, net of income tax | [1] | ||||||
Net (loss) income | [1] | ||||||
Earnings from equity method investment | [1] | (84,000) | |||||
Restatement Adjustment [Member] | All Corrections Not Related to Pegasus [Member] | |||||||
Cash and cash equivalents | [3],[4] | (9,000) | |||||
Restricted cash | [1] | ||||||
Available for sale investments (at fair value) | |||||||
Consumer receivables acquired for liquidation (at net realizable value) | [3] | 219,000 | |||||
Investment in personal injury claims, net | |||||||
Other investments, net | |||||||
Due from third party collection agencies and attorneys | [3] | (31,000) | |||||
Prepaid and income taxes receivable | [6] | (371,000) | |||||
Furniture and equipment, net | |||||||
Equity method investment | [5] | 421,000 | |||||
Deferred income taxes | [3],[6] | (1,258,000) | |||||
Goodwill | |||||||
Other assets | [3] | 187,000 | |||||
Assets related to discontinued operations | [4],[8] | 191,000 | |||||
Total assets | (651,000) | ||||||
Other liabilities | [3] | 198,000 | |||||
Liabilities related to discontinued operations | [8] | 653,000 | |||||
Total liabilities | 851,000 | ||||||
Commitments and contingencies | |||||||
Preferred stock | |||||||
Common stock | |||||||
Additional paid-in capital | [4] | 8,000 | |||||
Retained earnings | [3],[4],[5],[6],[7],[8],[9] | (2,614,000) | |||||
Accumulated other comprehensive (loss) income | [3] | 1,104,000 | |||||
Treasury stock (at cost) | |||||||
Non-controlling interest | |||||||
Total stockholders’ equity | (1,502,000) | ||||||
Total liabilities and stockholders’ equity | (651,000) | ||||||
Finance income, net | [3] | 94,000 | |||||
Personal injury claims income | |||||||
Disability fee income | |||||||
Total revenues | 94,000 | ||||||
Other Nonoperating Income | [3] | (93,000) | |||||
Revenues, Total | 1,000 | ||||||
General and administrative | [3],[4] | (66,000) | |||||
Interest | |||||||
Earnings from equity method investment | [5] | (320,000) | |||||
(386,000) | |||||||
(Loss) from continuing operations before income tax | 387,000 | ||||||
Income Tax Expense (Benefit), Total | [6] | 1,252,000 | |||||
Net (loss) income from continuing operations | (865,000) | ||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | [6],[7],[8] | (424,000) | |||||
Net Income (Loss) Attributable to Noncontrolling Interest, Total | |||||||
Net loss attributable to Asta Funding, Inc. | (1,289,000) | ||||||
Net loss | (1,289,000) | ||||||
Net unrealized securities (loss) gain, net of tax | |||||||
Amount reclassified from other comprehensive loss | |||||||
Foreign currency translation, net | [3],[4] | 387,000 | |||||
Other comprehensive loss | 387,000 | ||||||
Total comprehensive loss | (902,000) | ||||||
Net (loss) income from continuing operations | (865,000) | ||||||
Net (loss) income from discontinued operations, net of income tax | [6],[7],[8] | (424,000) | |||||
Net (loss) income | (1,289,000) | ||||||
Earnings from equity method investment | [5] | $ (320,000) | |||||
[1] | In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company's December 31, 2016 consolidated balance sheet, this resulted in (i) a decrease in cash of $1,065,000; (ii) a decrease in the investment in personal injury claims of $47,875,000; (iii) a decrease in other assets of $109,000; (iv) a decrease in other liabilities of $1,133,000; (v) an decrease in non-controlling interest of $804,000, offset by a corresponding increase in the equity method investment of $48,720,000. On the Company's consolidated statement of operations, this resulted in (i) a reduction in total revenues of $2,302,000; (ii) a reduction in expenses of $2,197,000; (iii) a decrease in the income attributable to the non-controlling interest of $21,000; and (iv) a decrease in earnings from equity method investment of $84,000 for the three months ended December 31, 2016. This change to the equity method of accounting had no effect on net (loss) income during the Non-Reliance Period. | ||||||
[2] | Includes other amounts in other line items on the consolidated balance sheet. | ||||||
[3] | The Company determined that it had not previously accounted for certain foreign currency gains/losses on intercompany balances and transactions in accordance with US GAAP. The Company improperly accounted for the foreign currency effect of certain transactions as if they were long-term investments by including the foreign currency effect in accumulated other comprehensive income instead of properly recording the effect as operating expenses as required under ASC 830. The correction to properly apply US GAAP to these foreign currency matters resulted in increased revenue of $94,000, a decrease in other income of $93,000, and a increase in general and administrative expenses of $204,000 for the three months ended December 31, 2016. ASTA FUNDING, INC. AND SUBSIDIARIES The correction of foreign currency transaction on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ 3,000 $ (10,000 ) $ (7,000 ) Consumer receivables acquired for liquidation (245,000 ) 464,000 219,000 Due from third party collection agencies and attorneys 45,000 (76,000 ) (31,000 ) Deferred income taxes (722,000 ) (199,000 ) (921,000 ) Other assets (33,000 ) 220,000 187,000 Other liabilities (18,000 ) 216,000 198,000 Accumulated other comprehensive loss 718,000 386,000 1,104,000 Retained earnings (1,653,000 ) (203,000 ) (1,856,000 ) | ||||||
[4] | The Company identified other transactions that had not been properly accounted for in the correct period and/or for improper amounts and/or improper accounts. The adjustments of these errors were immaterial on an individual basis. The correction of this error resulted in decreased general and administrative expense of $270,000 for the three months ended December 31, 2016. The correction of these errors on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Cash and cash equivalents $ - $ (2,000 ) $ (2,000 ) Other liabilities 269,000 (269,000) - Retained earnings (137,000 ) 270,000 133,000 Assets related to discontinued operations 45,000 - 45,000 Additional paid in capital 8,000 - 8,000 | ||||||
[5] | The Company identified the personal injury claims asset balance of Pegasus was determined to be understated at December 31, 2016 by $400,000. The correction of these error resulted in an increase in equity method investment of $320,000, representing the Company's 80% financial interest, as of December 31, 2016. As a result of the correction of this error, earnings from the equity investment in Pegasus and income from continuing operations increased $320,000 for the three months ended December 31, 2016. Additionally the equity method investment was increased $101,000 to reflect the impact of related accruals in the September 30, 2016 10K/A. | ||||||
[6] | Some of the corrections noted above impacted earnings (loss) before taxes which, in turn, required a calculation of the tax impact. The net impact to the Company's consolidated balance sheet was a (i) decrease to prepaid and income taxes receivable of $371,000; and (ii) decrease to deferred tax assets of $337,000. On the Company's consolidated statement of operations, there was (i) a net increase to income tax expense of $1,252,000; and (ii) an increase to income tax benefit from discontinued operations of $363,000 for the three months ended December 31, 2016. | ||||||
[7] | Prior to the sale of its structured settlement business, the Company purchased 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 ASC, Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 822-10-50-28 through 50-22). As previously disclosed in the Restated Form 10-Q/A, 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 which resulted in a decrease in the fair value of the Company's structured settlements of approximately $2.6 million (reflected in assets related to discontinued operations in this restated consolidated balance sheet) with an associated increase in prepaid income taxes and deferred tax assets of approximately $1.0 million (reflected in the loss from discontinued operations in this consolidated statement of operations). In connection with the Company's filing of its Annual Report on Form 10-K/A, on September 17, 2018, the Company adjusted the fair value of the Company's structured settlements to reflect the appropriate benchmark interest rates at September 30, 2016, which resulted in an decrease in net loss attributable to discontinued operations and an increase in assets related to discontinued operations of $727,000. As this increase in fair value was originally recorded during the three month period ended December 31, 2016, this Amendment includes an increase in both the retained earnings and the net loss attributable to discontinued operations of $727,000. | ||||||
[8] | The Company discovered that it did not properly record an amortizable asset and related liability in conjunction with an asset purchase agreement entered into in June 2015 with a related party. The correction of this error resulted in a decrease in income from discontinued operations of $60,000 for the three months ended December 31, 2016. The correction of these errors on the consolidated balance sheet are as follows: Increase (decrease) in: Impact from September 30, 2016 10K/A filing Current period impact Cumulative net impact Assets related to discontinued operations $ 307,000 $ (161,000 ) $ 146,000 Liabilities related to discontinued operations 756,000 (103,000 ) 653,000 Retained earnings (442,000 ) (60,000 ) (502,000 ) | ||||||
[9] | The Company determined that it had not accounted for certain unallocated payments reported on its consolidated balance sheet properly during the Non-Reliance Period. The correction of this error resulted in a decrease to consumer receivables acquired for liquidation of $648,000 and retained earnings of $648,000 as of September 30, 2016 and is therefore included in the net adjustment to retained earnings as of December 31, 2016. |
Note 2 - Business and Basis o45
Note 2 - Business and Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2013 | Dec. 28, 2011 | ||
Cash, Uninsured Amount | $ 1,400,000 | ||||||
Cash, Uninsured Amount, Foreign | 500,000 | ||||||
Restricted Cash, Total | $ 8,165,000 | [1] | $ 10,000,000 | ||||
International Consumer Debt Portfolios, Percentage of Ownership | 80.00% | ||||||
Equity Method Investments | $ 49,141,000 | 48,582,000 | |||||
Income (Loss) from Equity Method Investments, Total | 404,000 | $ 1,494,000 | |||||
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | |||||
Goodwill, Ending Balance | 1,410,000 | $ 1,410,000 | |||||
CBC [Member] | |||||||
Equity Method Investment, Ownership Percentage | 100.00% | 80.00% | |||||
Goodwill, Ending Balance | 1,400,000 | ||||||
VATIV [Member] | |||||||
Goodwill, Ending Balance | $ 1,400,000 | ||||||
Pegasus Legal Funding LLC [Member] | |||||||
Equity Method Investment, Percentage of Controlled Equity | 50.00% | ||||||
Equity Method Investment, Ownership Percentage | 80.00% | 80.00% | |||||
Equity Method Investment, Ownership Percentage, Controlled Party | 20.00% | ||||||
Equity Method Investments | $ 49,141,000 | 48,582,000 | $ 48,582,000 | $ 40,751,000 | |||
Income (Loss) from Equity Method Investments, Total | $ 404,000 | 10,551,000 | |||||
Serlefin BPO&O Peru S.A.C. [Member] | |||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||
Equity Method Investment, Ownership Percentage, Controlled Party | 51.00% | ||||||
Equity Method Investments | $ 200,000 | $ 200,000 | |||||
Income (Loss) from Equity Method Investments, Total | $ 100,000 | ||||||
Pegasus Legal Funding LLC [Member] | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 80.00% | ||||||
Serlefin BPO&O Peru S.A.C. [Member] | |||||||
International Consumer Debt Portfolios, Percentage of Ownership | 20.00% | ||||||
Proceeds from International Consumer Debt Portfolios for Performance Fee | $ 200,000 | $ 0 | |||||
[1] | In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company's December 31, 2016 consolidated balance sheet, this resulted in (i) a decrease in cash of $1,065,000; (ii) a decrease in the investment in personal injury claims of $47,875,000; (iii) a decrease in other assets of $109,000; (iv) a decrease in other liabilities of $1,133,000; (v) an decrease in non-controlling interest of $804,000, offset by a corresponding increase in the equity method investment of $48,720,000. On the Company's consolidated statement of operations, this resulted in (i) a reduction in total revenues of $2,302,000; (ii) a reduction in expenses of $2,197,000; (iii) a decrease in the income attributable to the non-controlling interest of $21,000; and (iv) a decrease in earnings from equity method investment of $84,000 for the three months ended December 31, 2016. This change to the equity method of accounting had no effect on net (loss) income during the Non-Reliance Period. |
Note 3 - Available-for-sale I46
Note 3 - Available-for-sale Investments (Details Textual) | 3 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Investments Sold | 2 | 2 |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments, Total | $ (45,000) | $ (31,000) |
Realized Investment Gains (Losses), Total | 177,000 | 47,000 |
Available-for-sale Securities, Gross Realized Gain (Loss), Total | $ 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 I47
Note 3 - Available-for-sale Investments - Investments Classified as Available-for-sale (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Amortized Cost | $ 56,115,000 | $ 55,723,000 |
Unrealized Gains | 29,000 | 1,089,000 |
Unrealized Losses | (1,099,000) | (49,000) |
Fair Value | $ 55,045,000 | $ 56,763,000 |
Note 4 - Consumer Receivables48
Note 4 - Consumer Receivables Acquired for Liquidation (Details Textual) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Face Value of Charged-off Consumer Receivables | $ 35,000,000 | $ 97,700,000 | |
Purchased Cost of Charged-off Consumer Receivables | 2,200,000 | 6,100,000 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | $ 13,462,000 | $ 18,800,000 | $ 13,427,000 |
Foreign Consumer Receivables, Percentage of Total Consumer Receivable | 71.10% | 46.30% | |
Fee Charged on Portfolio Purchase | 3.00% | ||
PERU | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | $ 5,000,000 | $ 4,700,000 | |
COLOMBIA | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 4,600,000 | 4,000,000 | |
Non-US [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | $ 9,600,000 | $ 8,700,000 |
Note 4 - Consumer Receivables49
Note 4 - Consumer Receivables Acquired for Liquidation - Changes In Balance Sheet Account of Consumer Receivables Acquired for Liquidation (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 13,427,000 | $ 15,056,000 |
Acquisitions of receivable portfolios | 2,213,000 | 6,051,000 |
Net cash collections from collection of consumer receivables acquired for liquidation | (6,015,000) | (7,377,000) |
Net cash collections represented by account sales of consumer receivables acquired for liquidation | (190,000) | |
Effect of foreign currency translation | (68,000) | (27,000) |
Finance income, net | 4,095,000 | 5,106,000 |
Balance | $ 13,462,000 | $ 18,809,000 |
Finance income as a percentage of collections | 66.00% | 69.22% |
Note 4 - Consumer Receivables50
Note 4 - Consumer Receivables Acquired for Liquidation - Collections Received Less Commissions and Direct Costs (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Gross collections (1) | [1] | $ 11,400,000 | $ 12,245,000 |
Commissions and fees (2) | [2] | 5,195,000 | 4,868,000 |
Net collections | $ 6,205,000 | $ 7,377,000 | |
[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 are earned by third party collection agencies and attorneys, and include direct costs associated with the collection effort, generally court costs. In December 2007 an arrangement was consummated with one servicer who also receives a 3% fee on gross collections received by the Company in connection with the related Portfolio Purchase.. The fee is charged for asset location, skip tracing and ultimately suing debtors in connection with this portfolio purchase. |
Note 5 - Litigation Funding (De
Note 5 - Litigation Funding (Details Textual) - USD ($) | May 08, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Nov. 08, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | May 02, 2014 | Dec. 28, 2011 |
Company Investment in Personal Injury | $ 49,100,000 | $ 48,600,000 | |||||||
Equity Method Investments | 49,141,000 | 48,582,000 | |||||||
Income (Loss) from Equity Method Investments, Total | 404,000 | $ 1,494,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||||||
Valuation Allowances and Reserves, Other | 2,500,000 | ||||||||
Net Investment Income, Total | 0 | 0 | |||||||
Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 1,500,000 | |||||||
Debt Instrument, Term | 2 years | ||||||||
Long-term Line of Credit, Total | 1,500,000 | ||||||||
Pegasus Legal Funding LLC [Member] | |||||||||
Earnings in Interest and Fees from Invested Venture | $ 2,300,000 | 3,100,000 | |||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 80.00% | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | ||||||||
BP Case Management, LLC [Member] | |||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 60.00% | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 40.00% | ||||||||
Pegasus Legal Funding LLC [Member] | |||||||||
Equity Method Investment, Ownership Percentage | 80.00% | 80.00% | |||||||
Equity Method Investments | $ 49,141,000 | $ 48,582,000 | 48,582,000 | $ 40,751,000 | |||||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions, Total | 559,000 | 7,831,000 | |||||||
Income (Loss) from Equity Method Investments, Total | 404,000 | 10,551,000 | |||||||
Payments to Acquire Equity Method Investments | $ 155,000 | ||||||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 2,720,000 | ||||||||
Equity Method Investment, Ownership Percentage, Controlled Party | 20.00% |
Note 5 - Litigation Funding - E
Note 5 - Litigation Funding - Equity Method Investments (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Equity Method Investments | $ 49,141,000 | $ 48,582,000 |
Pegasus Funding LLC [Member] | ||
Equity Method Investments | $ 49,141,000 | $ 48,582,000 |
Equity Method Investment, Ownership Percentage | 80.00% | 80.00% |
Note 5 - Litigation Funding -53
Note 5 - Litigation Funding - Equity Method Investments Financial Statements (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Earnings from equity method investment | $ 404,000 | $ 1,494,000 | |
Pegasus Legal Funding LLC [Member] | |||
Personal injury claims income | 2,302,000 | 3,085,000 | |
Operating expenses | 1,797,000 | 1,218,000 | |
Income from operations | 505,000 | $ 1,867,000 | |
Pegasus Funding LLC [Member] | |||
Cash | 1,065,000 | $ 539,000 | |
Investment in personal injury claims | 48,275,000 | 48,289,000 | |
Other assets | 109,000 | 188,000 | |
Total Assets | 49,449,000 | 49,016,000 | |
Due to Asta | 34,560,000 | 34,404,000 | |
Other liabilities | 1,006,000 | 1,053,000 | |
Equity | 13,883,000 | 13,559,000 | |
Total Liabilities and Equity | $ 49,449,000 | $ 49,016,000 |
Note 6 - Furniture and Equipm54
Note 6 - Furniture and Equipment - Summary of Furniture and Equipment (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Total | $ 1,864,000 | $ 1,858,000 |
Less accumulated depreciation and amortization | 1,688,000 | 1,662,000 |
Balance, end of period | 176,000 | 196,000 |
Furniture and Fixtures [Member] | ||
Total | 273,000 | 273,000 |
Equipment [Member] | ||
Total | 235,000 | 235,000 |
Software Development [Member] | ||
Total | $ 1,356,000 | $ 1,350,000 |
Note 7- Non Recourse Debt (Deta
Note 7- 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 | |
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 | $ 2,900,000 | ||||||||
Voluntary Debt Prepayment | 1,900,000 | ||||||||
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% | ||||||||
Line of Credit Facility, Covenant Consolidated Tangible Net Worth | $ 150,000,000 | ||||||||
Restricted Cash, Total | $ 8,165,000 | [1] | $ 10,000,000 | ||||||
Amended Loan Agreement [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||
Line of Credit Facility, Covenant Consolidated Tangible Net Worth | $ 100,000,000 | ||||||||
Line of Credit Facility, Covenant Decrease Consolidated Tangible Net Worth | $ 50,000,000 | ||||||||
Long-term Line of Credit, Total | 0 | ||||||||
Bank of Montreal [Member] | |||||||||
Non-Recourse Debt | $ 179,000 | ||||||||
Receivables Financing Agreement [Member] | |||||||||
Non-Recourse Debt | $ 227,000,000 | ||||||||
[1] | In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company's December 31, 2016 consolidated balance sheet, this resulted in (i) a decrease in cash of $1,065,000; (ii) a decrease in the investment in personal injury claims of $47,875,000; (iii) a decrease in other assets of $109,000; (iv) a decrease in other liabilities of $1,133,000; (v) an decrease in non-controlling interest of $804,000, offset by a corresponding increase in the equity method investment of $48,720,000. On the Company's consolidated statement of operations, this resulted in (i) a reduction in total revenues of $2,302,000; (ii) a reduction in expenses of $2,197,000; (iii) a decrease in the income attributable to the non-controlling interest of $21,000; and (iv) a decrease in earnings from equity method investment of $84,000 for the three months ended December 31, 2016. This change to the equity method of accounting had no effect on net (loss) income during the Non-Reliance Period. |
Note 8 - Discontinued Operati56
Note 8 - Discontinued Operations (Details Textual) - USD ($) | Dec. 13, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | Mar. 01, 2015 | Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 29, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Jul. 08, 2016 | Sep. 25, 2015 | Nov. 26, 2014 | May 02, 2014 |
Disposal Group, Including Discontinued Operation, Assets, Total | $ 94,526,000 | $ 91,506,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Total | 74,169,000 | 69,238,000 | ||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (1,258,000) | $ 272,000 | ||||||||||||
Cash, Uninsured Amount | 1,400,000 | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 20,000,000 | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | |||||||||||||
CBC [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Total | 94,526,000 | 91,506,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Total | 74,169,000 | $ 69,238,000 | ||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent, Total | (1,258,000) | $ 272,000 | ||||||||||||
Cash, Uninsured Amount | 700,000 | |||||||||||||
Structured Settlements, Unrealized Gain (Losses) | 1,700,000 | |||||||||||||
Structured Settlements, Gain on New Structured Settlements Financed | 2,100,000 | |||||||||||||
Structured Settlements, Unrealized Gain (Loss), Decrease in Realized Gains Recognized as Realized Interest Income on Structured Settlements | 500,000 | |||||||||||||
Structured Settlements, Reduction in Fair Value | 3,300,000 | |||||||||||||
CBC [Member] | Subsequent Event [Member] | ||||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,500,000 | |||||||||||||
Disposal Group, Including Discontinued Operation, Cash Consideration | 4,490,000 | |||||||||||||
Disposal Group, Including Discontinued Operation, Promissory Note Consideration | $ 5,750,000 | |||||||||||||
Promissory Note Interest Rate, Discontinued Operations | 7.00% | |||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | $ 1,900,000 | |||||||||||||
Restricted Stock [Member] | ||||||||||||||
Shares Lock-up Period | 1 year | |||||||||||||
CBC [Member] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 80.00% | 100.00% | ||||||||||||
Business Combination, Consideration Transferred, Total | $ 1,800,000 | $ 5,900,000 | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | 20.00% | ||||||||||||
Payments to Acquire Businesses, Gross | $ 800,000 | |||||||||||||
Employment Agreement Term | 2 years | |||||||||||||
Employee Agreement Renewal Term | 1 year | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 25,900,000 | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 12,500,000 | |||||||||||||
Debt Instrument, Floor Interest Rate | 4.10% | 5.50% | 4.75% | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | $ 22,000,000 | ||||||||||||
Other Long-term Debt, Total | 71,600,000 | |||||||||||||
Long-term Line of Credit, Total | 15,300,000 | |||||||||||||
Notes Payable, Noncurrent, Total | $ 56,300,000 | |||||||||||||
CBC [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument, Face Amount | $ 14,800,000 | $ 16,600,000 | $ 21,800,000 | |||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.85% | 5.10% | 5.40% | |||||||||||
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] | ||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 61,652 | |||||||||||||
Shares Issued, Price Per Share | $ 7.95 | $ 7.95 |
Note 8 - Discontinued Operati57
Note 8 - Discontinued Operations - Financial Statements (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | ||
(Loss) income from discontinued operations, net of income tax | $ (1,258,000) | $ 272,000 | ||
Total assets related to discontinued operations | 94,526,000 | $ 91,506,000 | ||
Total liabilities related to discontinued operations | 74,169,000 | 69,238,000 | ||
CBC [Member] | ||||
Unrealized (loss) gain on structured settlements | (1,682,000) | 1,527,000 | ||
Interest income on structured settlements | 1,901,000 | 1,227,000 | ||
Total revenues | 219,000 | 2,754,000 | ||
Other income | 15,000 | |||
234,000 | 2,754,000 | |||
General and administrative expenses | 1,488,000 | 1,379,000 | ||
Interest expense | 932,000 | 726,000 | ||
2,420,000 | 2,105,000 | |||
(Loss) income from discontinued operations before income tax | (2,186,000) | 649,000 | ||
Income tax (benefit) expense from discontinued operations | (928,000) | 273,000 | ||
(Loss) income from discontinued operations before non-controlling interest | (1,258,000) | 376,000 | ||
Non-controlling interest | 104,000 | |||
(Loss) income from discontinued operations, net of income tax | (1,258,000) | $ 272,000 | ||
Cash and cash equivalents | 1,241,000 | [1] | 1,198,000 | |
Restricted cash | 499,000 | 499,000 | ||
Structured settlements | 88,277,000 | 86,091,000 | ||
Furniture and equipment, net | 43,000 | 47,000 | ||
Goodwill | 1,405,000 | 1,405,000 | ||
Other assets | 3,061,000 | 2,266,000 | ||
Total assets related to discontinued operations | 94,526,000 | 91,506,000 | ||
Other debt - CBC | 71,566,000 | 67,435,000 | ||
Other liabilities | 2,603,000 | 1,803,000 | ||
Total liabilities related to discontinued operations | $ 74,169,000 | $ 69,238,000 | ||
[1] | Cash balance with one bank at December 31, 2016 that exceeded the balance insured by the FDIC by approximately $0.7 million. |
Note 8 - Discontinued Operati58
Note 8 - Discontinued Operations - Components of Structured Settlements (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | |
Maturity (1) (2) | [1],[2] | $ 143,544,000 | $ 133,059,000 |
Unearned income | (55,267,000) | (46,968,000) | |
Structured settlements, net | $ 88,277,000 | $ 86,091,000 | |
[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 8 - Discontinued Operati59
Note 8 - Discontinued Operations - Structured Settlements (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Interest Rate | ||
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 88,277,000 | $ 86,091,000 |
Structured Settlement [Member] | ||
Interest Rate | 4.10% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 15,264,000 | 10,154,000 |
Structured Settlements Encumbered By Notes Payable Due June 2025 [Member] | ||
Interest Rate | 8.75% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 1,817,000 | 1,862,000 |
Structured Settlements Encumbered By Notes Payable Due August 2026 [Member] | ||
Interest Rate | 7.25% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 4,138,000 | 4,242,000 |
Structured Settlements Encumbered By Notes Payable Due April 2032 [Member] | ||
Interest Rate | 7.125% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 3,948,000 | 3,987,000 |
Structured Settlements Encumbered By Notes Payable Due February 2037 [Member] | ||
Interest Rate | 5.39% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 18,601,000 | 18,978,000 |
Structured Settlements Encumbered By Notes Payable Due March 2034 [Member] | ||
Interest Rate | 5.07% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 14,193,000 | 14,507,000 |
Structured Settlements Encumbered By Notes Payable Due February 2043 [Member] | ||
Interest Rate | 4.85% | |
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 13,605,000 | 13,705,000 |
Structured Settlements Encumbered [Member] | ||
Interest Rate | ||
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 71,566,000 | 67,435,000 |
Structured Settlements Not Encumbered [Member] | ||
Interest Rate | ||
Notes payable secured by settlement receivables with principal and interest outstanding payable, encumbered and unencumbered | $ 16,711,000 | $ 18,656,000 |
Note 8 - Discontinued Operati60
Note 8 - Discontinued Operations - 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 | 100,963,000 | ||
Total | [1],[2] | $ 143,544,000 | $ 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 9 - Commitments and Cont61
Note 9 - 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 10 - Income Recognition,62
Note 10 - 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, Total | $ 1,000,000 | ||
Other Investments, Total | $ 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 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 70.30% | 32.80% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 35.00% |
Unrecognized Tax Benefits, Ending Balance | $ 0 |
Note 12 - Net (Loss) Income P64
Note 12 - Net (Loss) Income Per Share (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 12 - Net (Loss) Income P65
Note 12 - Net (Loss) Income Per Share - Computation of Basic and Diluted Per Share Data (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net (loss) income from continuing operations | $ (1,688,000) | $ 1,291,000 |
Net (loss) income from continuing operations, weighted average shares (in shares) | 11,876,224 | 12,155,421 |
Net (loss) income from continuing operations, per share amount (in dollars per share) | $ (0.14) | $ 0.11 |
Net (loss) income from discontinued operations, net of income tax | $ (1,258,000) | $ 272,000 |
Net (loss) income from discontinued operations, weighted average shares (in shares) | 11,876,224 | 12,155,421 |
Net (loss) income from discontinued operations, per share amount (in dollars per share) | $ (0.11) | $ 0.02 |
Net (loss) income | $ (2,946,000) | $ 1,563,000 |
(in dollars per share) | $ (0.25) | $ 0.13 |
Effect of Dilutive Stock, weighted average shares (in shares) | 276,465 | |
Diluted, weighted average shares (in shares) | 11,876,224 | 12,431,886 |
Diluted, per share amount (in dollars per share) | $ (0.25) | $ 0.13 |
Note 13 - Stock Based Compens66
Note 13 - 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 13 - Stock Based Compens67
Note 13 - 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 14 - Stock Option Plans (D
Note 14 - 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, Gross | 67,100 | 0 | 67,100 | ||||||
Allocated Share-based Compensation Expense, Total | $ | $ 6,000 | $ 283,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ | 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, Total Fair Value | $ | $ 532,000 | ||||||||
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 | |||||
Allocated Share-based Compensation Expense, Total | $ | $ 0 | $ 87,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ | 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | 0 | 40,000 | |||||||
Employee Stock Option [Member] | |||||||||
Allocated Share-based Compensation Expense, Total | $ | 6,000 | $ 196,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ | $ 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, Number of Shares Authorized | 2,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 484,200 | ||||||||
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 | ||||||||
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 Authorized | 1,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | ||||||||
The 2002 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 |
Note 14 - Stock Option Plans -
Note 14 - 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, Number of Shares Exercisable (in shares) | 844,829 | 965,325 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.15 | $ 8.46 |
Note 14 - Stock Option Plans 70
Note 14 - 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] | ||||
Range of Exercise Price, Lower (in dollars per share) | 2.8751 | |||
Range of Exercise Price, Upper (in dollars per share) | $ 5.75 | |||
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 Two [Member] | ||||
Range of Exercise Price, Lower (in dollars per share) | 5.7501 | |||
Range of Exercise Price, Upper (in dollars per share) | $ 8.625 | |||
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 Three [Member] | ||||
Range of Exercise Price, Lower (in dollars per share) | 8.6251 | |||
Range of Exercise Price, Upper (in dollars per share) | $ 11.50 | |||
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 |
Note 14 - Stock Option Plans 71
Note 14 - 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 15 - Stockholders' Equity
Note 15 - 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, Total | $ 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 | |||||
Stock Repurchase Program, Additional Authorized Repurchase Amount | $ 15,000,000 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 9,900,000 | $ 10,100,000 | |||||
Treasury Stock, Shares, Acquired | 1,186,000 |
Note 16 - Fair Value of Finan73
Note 16 - Fair Value of Financial Measurements and Disclosures (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Redemption Restriction Period | 5 years | |
Unrealized Gain (Loss) on Structured Settlements | $ (1,700,000) | |
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 | (3,611,000) | |
Available-for-sale Securities, Total | 55,045,000 | $ 56,763,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale Securities, Total | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale Securities, Total | 0 | |
Structured Settlement [Member] | ||
Assets, Fair Value Adjustment | $ (3,300,000) |
Note 16 - Fair Value of Finan74
Note 16 - Fair Value of Financial Measurements and Disclosures - Fair Value of Financial Measurements (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 |
Fair Value | $ 55,045,000 | $ 56,763,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value | 0 | |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents (Level 1) | 936,000 | 923,000 |
Other investment, net (Level 1) | 3,354,000 | 3,590,000 |
Fair Value | 55,045,000 | 56,763,000 |
Structured settlements (Level 3) | 88,277,000 | 86,091,000 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Consumer receivables acquired for liquidation (Level 3) | 13,462,000 | 13,427,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents (Level 1) | 936,000 | 923,000 |
Other investment, net (Level 1) | 3,354,000 | 3,590,000 |
Fair Value | 55,045,000 | 56,763,000 |
Structured settlements (Level 3) | 88,277,000 | 86,091,000 |
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 |
Note 16 - Fair Value of Finan75
Note 16 - Fair Value of Financial Measurements and Disclosures - Quantitative Information About Level 3 Fair Value Measurements (Details) - Valuation Technique, Discounted Cash Flow [Member] | Dec. 31, 2016USD ($) |
Structured Settlements, Fair Value | $ 88,277,000 |
Minimum [Member] | Measurement Input, Discount Rate [Member] | |
Rate | 0.0483 |
Maximum [Member] | Measurement Input, Discount Rate [Member] | |
Rate | 0.0536 |
Note 16 - Fair Value of Finan76
Note 16 - Fair Value of Financial Measurements and Disclosures - Changes in Structured Settlements at Fair Value Using Significant Unobservable Inputs (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Balance at September 30, 2016 | $ 86,091,000 |
Fair value adjustment | (3,611,000) |
Total gains included in earnings | (1,598,000) |
Purchases | 4,595,000 |
Interest accreted | 1,567,000 |
Payments received | (1,963,000) |
Total | 88,277,000 |
The amount of total losses for the three month period included in earnings attributable to the change in unrealized losses relating to assets held at December 31, 2016 | $ (1,682,000) |
Note 16 - Fair Value of Finan77
Note 16 - Fair Value of Financial Measurements and Disclosures - Schedule of Realized and Unrealized Gains and Losses (Details) | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Total losses included in the three months ended December 31, 2016 | $ (1,682,000) |
Change in unrealized losses relating to assets still held at December 31, 2016 | $ (1,682,000) |
Note 17 - Segment Reporting (De
Note 17 - Segment Reporting (Details Textual) | 3 Months Ended | ||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Reportable Segments | 3 | ||
Disposal Group, Including Discontinued Operation, Assets, Total | $ 94,526,000 | $ 91,506,000 | |
CBC [Member] | |||
Disposal Group, Including Discontinued Operation, Assets, Total | 94,526,000 | $ 91,506,000 | |
CBC [Member] | Corporate, Non-Segment [Member] | |||
Disposal Group, Including Discontinued Operation, Assets, Total | $ 94,500,000 | $ 74,600,000 |
Note 17 - Segment Reporting - S
Note 17 - Segment Reporting - Schedule of Segment Reporting (Details) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |||
Revenues | $ 5,449,000 | $ 5,765,000 | |||
Other income | 400,000 | 400,000 | |||
Segment profit (loss) | (991,000) | 1,922,000 | |||
Segment Assets(1) | 256,483,000 | 237,800,000 | [1] | $ 255,008,000 | |
Operating Segments [Member] | Consumer Receivables [Member] | |||||
Revenues | 4,100,000 | 5,100,000 | |||
Other income | |||||
Segment profit (loss) | 3,200,000 | 4,700,000 | |||
Segment Assets(1) | [1] | 17,600,000 | 24,800,000 | ||
Operating Segments [Member] | GAR Disability Advocates [Member] | |||||
Revenues | 1,400,000 | 700,000 | |||
Other income | |||||
Segment profit (loss) | (900,000) | (1,800,000) | |||
Segment Assets(1) | [1] | 1,400,000 | 2,400,000 | ||
Operating Segments [Member] | Personal Injury Claims [Member] | |||||
Revenues | [2] | ||||
Other income | [2] | ||||
Segment profit (loss) | [2] | 400,000 | 1,500,000 | ||
Segment Assets(1) | [1],[2] | 49,200,000 | 36,420,000 | ||
Corporate, Non-Segment [Member] | |||||
Revenues | [3] | ||||
Other income | [3] | 400,000 | 400,000 | ||
Segment profit (loss) | [3] | (3,700,000) | (2,500,000) | ||
Segment Assets(1) | [1],[3],[4] | $ 188,300,000 | $ 174,200,000 | ||
[1] | Includes other amounts in other line items on the consolidated balance sheet. | ||||
[2] | The Company records Pegasus as an equity investment in its consolidated financial statements. For segment reporting the Company has included its pro-rated share of the earnings and losses from its investment under the Personal Injury Claims segment. | ||||
[3] | Corporate is not part of the three reportable segments, as certain expenses and assets are not earmarked to any specific operating segment. | ||||
[4] | Included in Corporate are approximately $94.5 million and $74.6 million of assets related to discontinued operations as of December 31, 2016 and 2015, respectively. |
Note 18 - Accumulated Other C80
Note 18 - Accumulated Other Comprehensive (Loss) Income - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Balance | $ 181,783,000 | $ 183,407,000 | $ 183,407,000 |
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) | 330,000 | |
Net current-period other comprehensive (loss) income | (1,248,000) | 324,000 | |
Balance | 177,583,000 | 177,696,000 | 181,783,000 |
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 ($12,000) and $25,000 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) | 867,000 | |
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) | (38,000) | |
Net current-period other comprehensive (loss) income | (1,266,000) | 829,000 | |
Balance | (642,000) | 624,000 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Balance | 179,000 | 225,000 | 225,000 |
Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of ($12,000) and $25,000 at December 31 2016, and September 30, 2016, respectively. | 18,000 | (46,000) | |
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. | |||
Net current-period other comprehensive (loss) income | 18,000 | (46,000) | |
Balance | 197,000 | 179,000 | |
AOCI Attributable to Parent [Member] | |||
Balance | 803,000 | 20,000 | 20,000 |
Change in unrealized (losses) gains on foreign currency translation, net of tax benefit/(expense) of ($12,000) and $25,000 at December 31 2016, and September 30, 2016, respectively. | 18,000 | (46,000) | |
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) | 867,000 | |
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) | (38,000) | |
Net current-period other comprehensive (loss) income | (1,248,000) | 783,000 | |
Balance | $ (445,000) | $ 344,000 | $ 803,000 |
Note 18 - Accumulated Other C81
Note 18 - Accumulated Other Comprehensive (Loss) Income - 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 | (12,000) | $ 25,000 | |
Net unrealized securities gain (loss), tax benefit (expense) | 826,000 | (529,000) | |
Reclassification from accumulated other comprehensive loss, tax | $ 18,000 | $ 24,000 |
Note 19 - Related Party Trans82
Note 19 - Related Party Transactions (Details Textual) - USD ($) | Sep. 17, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Jun. 30, 2016 |
Consulting Agreement Period | 2 years | |||||
Payments to Acquire Productive Assets, Total | $ 6,000 | |||||
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 | |||||
Fortress Funding, LLC [Member] | ||||||
Due to Related Parties, Total | 700,000 | $ 800,000 | ||||
Fortress Funding, LLC [Member] | Conversion of Customers From The Acquired Lists [Member] | ||||||
Payments to Acquire Productive Assets, Total | $ 100,000 | $ 42,000 | ||||
Fortress Funding, LLC [Member] | CBC [Member] | ||||||
Assets Purchase Agreement, Consideration Transferred | $ 500,000 | |||||
Fortress Funding, LLC [Member] | CBC [Member] | Conversion of Customers From The Acquired Lists [Member] | ||||||
Assets Purchase Agreement, Contingent Consideration | $ 1,200,000 |
Note 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) - USD ($) | Feb. 28, 2018 | Feb. 05, 2018 | Jan. 23, 2018 | Jan. 12, 2018 | Nov. 24, 2017 | Nov. 22, 2017 | Mar. 10, 2017 | Feb. 15, 2017 | Jan. 06, 2017 | Mar. 31, 2017 | Dec. 31, 2015 | Jun. 30, 2017 | Jan. 18, 2017 | Dec. 31, 2016 | [1] | Nov. 08, 2016 | Sep. 30, 2016 |
Treasury Stock, Value, Acquired, Cost Method | $ 7,180,000 | ||||||||||||||||
Restricted Cash, Total | $ 8,165,000 | $ 10,000,000 | |||||||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 1,696,000 | ||||||||||||||||
Pegasus Legal Funding LLC [Member] | |||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Share Price | $ 10.20 | ||||||||||||||||
Dividends Payable, Amount Per Share | $ 5.30 | ||||||||||||||||
Payments of Dividends, Total | $ 35,000,000 | ||||||||||||||||
Dividends Payable, Date Declared | Feb. 5, 2018 | ||||||||||||||||
Dividends Payable, Date to be Paid | Feb. 28, 2018 | ||||||||||||||||
Dividends Payable, Date of Record | Feb. 16, 2018 | ||||||||||||||||
Subsequent Event [Member] | Montana State Court Litigation [Member] | |||||||||||||||||
Payments for Legal Settlements | $ 800,000 | ||||||||||||||||
Subsequent Event [Member] | Global Settlement [Member] | |||||||||||||||||
Payments for Legal Settlements | $ 2,300,000 | ||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 4,600,000 | ||||||||||||||||
Subsequent Event [Member] | CBC [Member] | |||||||||||||||||
Payments for Legal Settlements | $ 500,000 | ||||||||||||||||
Subsequent Event [Member] | Ricky Stern Family [Member] | Mangrove [Member] | |||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 4,900,000 | ||||||||||||||||
Treasury Stock, Shares, Acquired | 471,086 | ||||||||||||||||
Subsequent Event [Member] | Pegasus Legal Funding LLC [Member] | |||||||||||||||||
Restricted Cash, Total | $ 24,700,000 | ||||||||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 1,800,000 | ||||||||||||||||
Subsequent Event [Member] | Stern Stockholders [Member] | |||||||||||||||||
Voting Agreement, Related Party Maximum Percentage of Voting Right | 49.00% | ||||||||||||||||
Settlement Agreement [Member] | Subsequent Event [Member] | |||||||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,314,009 | ||||||||||||||||
Stock Repurchase Program, Purchase Price Per Share | $ 10.35 | ||||||||||||||||
Stock Repurchase Program, Number of Share Tendered | 6,022,253 | ||||||||||||||||
Stock Repurchase Program, Number of Shares Oversubscribed | 708,244 | ||||||||||||||||
Stock Repurchase Program, Percent of Share Tendered | 88.24% | ||||||||||||||||
Treasury Stock, Percent, Acquired | 44.70% | ||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 54,200,000 | ||||||||||||||||
Settlement Agreement [Member] | Subsequent Event [Member] | General and Administrative Expense [Member] | |||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 797,000 | ||||||||||||||||
Settlement Agreement [Member] | Subsequent Event [Member] | Mangrove [Member] | |||||||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 4,005,701 | ||||||||||||||||
[1] | In connection with the Company determining it lacked the requisite control to consolidate Pegasus during the Non-Reliance Period, the Company has now accounted for its investment in Pegasus under the equity method in accordance with US GAAP. On the Company's December 31, 2016 consolidated balance sheet, this resulted in (i) a decrease in cash of $1,065,000; (ii) a decrease in the investment in personal injury claims of $47,875,000; (iii) a decrease in other assets of $109,000; (iv) a decrease in other liabilities of $1,133,000; (v) an decrease in non-controlling interest of $804,000, offset by a corresponding increase in the equity method investment of $48,720,000. On the Company's consolidated statement of operations, this resulted in (i) a reduction in total revenues of $2,302,000; (ii) a reduction in expenses of $2,197,000; (iii) a decrease in the income attributable to the non-controlling interest of $21,000; and (iv) a decrease in earnings from equity method investment of $84,000 for the three months ended December 31, 2016. This change to the equity method of accounting had no effect on net (loss) income during the Non-Reliance Period. |