Altisource Asset Management(AAMC) - 2024 Q2 - Quarterly Report

Financial Performance - Loan interest income decreased to $34,000 and$0.3 million for the three and six months ended June 30, 2024, compared to $1.6 million and$3.6 million for the same periods in 2023, driven by the decision to liquidate the loan portfolio[99] - Loan fee income was $8,000 and$14,000 for the three and six months ended June 30, 2024, respectively, down from $0.3 million and$0.4 million in the same periods of 2023, also due to the liquidation of the loan portfolio[100] - Salaries and employee benefits decreased to $0.3 million and$0.5 million for the three and six months ended June 30, 2024, compared to $1.9 million and$3.8 million for the same periods in 2023, reflecting cost reduction measures[102] - General and administrative expenses were $0.2 million and$0.5 million for the three and six months ended June 30, 2024, down from $1.0 million and$1.9 million in the same periods of 2023, attributed to reduced operational costs[104] Cash Flow and Liquidity - As of June 30, 2024, cash and cash equivalents were $8.1 million, a decrease from$8.7 million as of December 31, 2023, indicating a need for ongoing liquidity management[112] - Net cash used in operating activities for the six months ended June 30, 2024, was $(1,177) thousand, a significant improvement from$(18,483) thousand in the same period of 2023[117] - Net cash provided by investing activities for the six months ended June 30, 2024, was $1,568 thousand, compared to$30,639 thousand in the prior year[117] - Net cash used in financing activities for the six months ended June 30, 2024, was $(1,000) thousand, down from$(10,401) thousand in 2023[119] - Total cash flows for the six months ended June 30, 2024, resulted in a net decrease of $(609) thousand, contrasting with an increase of$1,755 thousand in the same period of 2023[117] - The net cash used in operating activities primarily consisted of additional fundings of held for sale loans and general corporate expenses exceeding revenues[118] - The net cash provided by investing activities was mainly from proceeds of sales and principal payments on loans held for investment[118] - Financing activities in 2024 were primarily related to cash used in the conversion of preferred stock[119] Asset Management - Loans held for sale at fair value were $56,000 on June 30, 2024, down from$4.5 million at December 31, 2023, due to the liquidation of the loan portfolio[113] - Loans held for investment at fair value were $4.0 million on June 30, 2024, compared to$5.6 million at December 31, 2023, reflecting the phase-out of the ALG business line[114] Intellectual Property and Agreements - The company signed a non-exclusive patent and technology licensing agreement with System73 Limited, involving a payment of approximately $8.0 million for patents related to optimizing electric vehicle efficiency[89] - Electric vehicle intellectual property development costs were$1.0 million and $2.9 million for the three and six months ended June 30, 2024, with no costs incurred in the comparable prior year periods[109] Shareholder Actions - The company has repurchased a total of$275.2 million in shares under its repurchase plan, with $24.8 million remaining available for future repurchases as of June 30, 2024[115] Market Risks and Accounting - The company is exposed to market risks including changes in interest rates and foreign currency exchange rates[123] - Recent accounting pronouncements and critical accounting judgments are discussed in the company's annual report and financial statements[121][122]