MSPRW

• Debt Reduction: MSP negotiated a $63 million debt reduction with Brickell Key Investments, expected to save ~$40 million in interest expense annually.
• Potentially Recoverable Claims: Paid value of potentially recoverable claims stood at $89.2 billion as of September 30, 2022, exceeding projections by 3.5 times.
• Settlements: Settled an accident-related case for $1.75 million (2x recovery multiple) and a Group Health Plan recovery for $1.15 million, including unfunneled recoveries not in the $89.2 billion PVPRC.
• Data Matching: Engaged with over 13 primary payers using 76 data matching techniques, identifying over $5 billion in possible accident-related treatments; sent over 22,000 demand letters, received payment on ~130, with a recovery multiple of 2.1x.
• Legal Wins: Second Circuit affirmed Aetna's right to sue under MSP Act; 11th Circuit ruled against MSP in Tower Hill Prime case but MSP had a win in Metropolitan Insurance Co. case; LifeWallet launched with $7.5 million licensing fee and $1 million annual servicing fee, legal referral services to roll out end 2022/early 2023.

• 2022 paid value of potentially recoverable claims surpassed guidance by 3.5x the previous projection.
• Total gross recoveries expected ~$992 million for 2022, but some may spill into 2023 due to factors like appeals.
• Revenue guidance dependent on completion of data matching and settlements; interest on recoveries likely 2.11x legal rate as recoveries accrue interest.

The transcript does not clearly break down financial performance by distinct product segments. However, key financial highlights include: As of September 30th, the paid value of potentially recoverable claims was $89.2 billion, which exceeded projections by 3.5 times. During the quarter, $1.75 million was collected from an accident-related case and $1.15 million from a Group Health Plan recovery. For the nine months ended September 30, 2022, claim recovery income was $7.9 million, with 51% from previously identified opportunities and 49% from unfunneled recoveries.

• Uncertainty in timing and amount of total gross recoveries due to inherent unpredictability of the business.
• Statute of limitations issues (e.g., 11th Circuit ruling in Tower Hill Prime case affecting certain claims).
• Dependence on successful data matching, settlements, and favorable court rulings for recoveries.

Q: Josh Siegler asked about LifeWallet adoption trended over the quarter and new client wins.

A: John Ruiz discussed LifeWallet's real-time processing, biometric and blockchain tech, transition from complex claims data to user-friendly system, pilot programs with Cano Health, and licensing fees from clients.

Q: Kyle Bowser inquired about LifeWallet adoption driving and impact of recession on claims rights value.

A: John Ruiz stated LifeWallet is uniquely positioned in the market, legal claims are recession-proof as they're black-and-white legal obligations, and interest rates can positively affect liquidated damages claims.

Q: Ben Haner asked about LifeWallet lawyer referral info services, economics, and intercepting 837 form.

A: John Ruiz explained referral services targeting personal injury, antitrust, etc., with law firms paying $100k+ monthly, and technical details of intercepting 837 forms involving raw data, NDAs, and biometric verification to reduce data errors.