What Abacus Global Management, Inc. told the SEC could break it.

Abacus has substantial concentration among related parties (its affiliated Carlisle Funds, LP Funds and Securitized Fund): for 2025 one related-party customer accounted for 10% of life-solutions revenue from life-settlement contract sales, and three related-party customers accounted for 15%, 13% and 12% of portfolio-servicing revenue, while in 2024 two related-party Sellers supplied 15% and 14% of policies purchased; this dependence on affiliated funds for both buying and servicing/selling policies concentrates its revenue and creates conflict-of-interest and continuity risk if those relationships change.

“One customer accounted for 10 % (related party) of life solutions revenue specific to sales of life settlement contracts for the year ended December 31, 2025. Three customers accounted for 15 % (related party), 13 % (related party), and 12 % (related party) of the portfolio servicing revenue for the”

Abacus relies on debt and continued capital access to fund its capital-intensive policy-acquisition model: it has Fixed Unsecured Notes bearing a 9.875% fixed rate maturing November 15, 2028, and its ability to raise capital in the future on acceptable terms may be limited; it also bears credit risk on its investments (it recorded a 100% credit loss on a $1.0 million convertible promissory note whose borrower ceased operations), so higher rates, constrained capital markets or credit losses would pressure its liquidity and growth.

“are based on a fixed interest rate of 9.875 % to be paid in quarterly interest payments beginning on February 15, 2024 and mature on November 15, 2028.”

Abacus's core economics depend on accurately estimating insured life expectancies: improvements in health care treatments and people living longer than expected would lower the returns on its life-settlement policies (longer premium-payment periods, delayed maturities), and its ability to grow is limited by the market availability of life insurance policies meeting its eligibility and purchase parameters — so a failure to secure enough quality policies, or systematic longevity improvements, could materially and adversely affect its business and returns.

“or from improvements in health care treatments, resulting from people living longer in the future, which could result in a lower return on the Company's life settlement policies. The Company's policy acquisitions are limited by the market availability of life insurance policies that meet the Company's eligibility criteria and purchase parameters, and failure to secure a sufficient number of quality life insurance policies could have a material adverse effect on the Company's business.”

Abacus faces significant securities and investment regulation: it could in the future be required to register as an investment company under the Investment Company Act (or substantively change its business model to fit an exemption), it may be subject to U.S. state securities laws (with fines, sanctions and transaction rescission for non-compliance), it must comply with Sarbanes-Oxley Section 404, and its EU/Luxembourg asset-management operations subject it to the GDPR; adverse outcomes under any of these regimes could impose substantial cost, restrict its activities or force business-model changes.

“The Company could in the future be required to register as an investment company under the Investment Company Act or could have to substantively change its business model to fit within an applicable exemption from such registration requireme”