Executive Summary

AAMC’s Q4 2022 earnings press release (8‑K 2.02) and Q4 2022 earnings call transcript were not available via our tools; analysis relies on FY 2022 10‑K and prior Q2/Q3 10‑Qs to assess trajectory and Q4 balance sheet/KPIs .
In FY 2022, AAMC pivoted to Alternative Lending Group (ALG) with $4.6M loan interest income and $0.4M loan fee income; legal expenses declined year over year, while fair value marks on loans and interest expense weighed on results .
Liquidity and funding base expanded: Flagstar master repurchase facility ($52.5M outstanding at 9/30/22) and a new $50M NexBank line added in December, supporting loan growth and originations .
Balance sheet showed loan book re‑mix: Loans held for investment fell and loans held for sale rose sequentially into Q4, reflecting pipeline turnover and funding utilization .
Consensus estimates from S&P Global were unavailable due to CIQ mapping; no numeric guidance issued in filings reviewed. Results should be interpreted against strategic transition and litigation overhang (Luxor preferred stock case) .

What Went Well and What Went Wrong

What Went Well

Built and scaled ALG, generating loan interest income of $4.6M and loan fee income of $0.4M in 2022 as the new business line ramped .
Secured and expanded funding capacity: Flagstar repurchase facility utilized ($52.5M outstanding at 9/30) and new $50M NexBank line to “increase our creation of alternative assets” (CEO quote) .
Year‑over‑year expense discipline: legal fees fell to $4.3M in 2022 from $6.9M in 2021, while adjusted operations focused on core lending platform .

What Went Wrong

Earnings headwinds from fair value marks and carry: $2.0M expense from change in fair value of loans and $1.3M interest expense in 2022 as rates rose and leverage increased .
Continued net losses in Q2 and Q3 from continuing operations (Q2: $(4.132)M; Q3: $(3.986)M) as revenue scale trailed operating costs during ramp .
Litigation overhang (Luxor Series A preferred) persisted; summary judgment denied in Dec 2022, sustaining uncertainty around liquidity risk .

Financial Results

Quarterly P&L trajectory (prior two quarters):

Metric	Q2 2022	Q3 2022
Total Revenues ($USD Millions)	$0.533	$1.906
Net Loss from Continuing Operations ($USD Millions)	$(4.132)	$(3.986)
EPS – Basic (Continuing Operations) ($)	$(2.00)	$(2.24)
Weighted Avg Shares (Basic)	2,063,078	1,777,009

Annual operating metrics:

Metric	FY 2021	FY 2022
Loan Interest Income ($USD Millions)	$0.0	$4.6
Loan Fee Income ($USD Millions)	$0.0	$0.4
Legal Fees ($USD Millions)	$6.9	$4.3
Salaries & Employee Benefits ($USD Millions)	$5.6	$5.8
Interest Expense ($USD Millions)	$0.1	$1.3
Change in Fair Value of Loans ($USD Millions)	$0.0	$(2.0)
Dividends on Equity Securities ($USD Millions)	$3.1	$0.0
Gain on Sale of Equity Securities ($USD Millions)	$8.3	$0.0

Balance sheet and KPI progression (quarterly):

KPI	Q3 2022	Q4 2022
Loans Held for Investment – Fair Value ($USD Millions)	$90.5	$83.1
Loans Held for Sale – Fair Value ($USD Millions)	$7.2	$11.6
Cash & Equivalents ($USD Millions)	$10.2	$10.7
Restricted Cash ($USD Millions)	$3.0	$2.0
Repurchase Agreements Outstanding ($USD Millions)	$52.5	$51.7

Loan commitments by state (portfolio concentration as of Q3 2022):

State	Commitment ($USD Thousands)	Portfolio %
Florida	$34,484	27.7%
New York	$23,142	18.6%
New Jersey	$12,487	10.0%
California	$12,119	9.7%
Washington	$9,093	7.3%
Other	$33,019	26.7%

Note: Q4 2022 revenue/EPS were not disclosed in accessible AAMC filings/press releases; Q4 analysis relies on FY 2022 10‑K and Q3/Q2 10‑Q trend data .

Guidance Changes

No formal numeric guidance (revenue, margins, EPS) identified in reviewed filings; management commentary emphasized growth in ALG originations and funding capacity rather than quantified targets .

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue/EPS)	FY 2023	None disclosed	None disclosed	Maintained (no formal guidance)

Funding capacity developments (operational outlook):

Flagstar master repurchase facility in place; $52.5M outstanding at 9/30/22 .
New $50M NexBank line announced Dec 5, 2022 to support investor property lending .

Earnings Call Themes & Trends

(We were unable to retrieve the Q4 call transcript; themes below derive from filings and press releases.)

Topic	Previous Mentions (Q2/Q3)	Current Period (Q4/FY filings)	Trend
Funding & Liquidity	Flagstar $50M+ line (executed Aug 2022) and covenant framework	Added $50M NexBank credit line (Dec 2022) for investor properties	Improving access/capacity
Business Focus (ALG)	Launch and ramp of ALG; shift to alternative lending	Sole focus on ALG; crypto ATM effort deferred amid market conditions	Strategic clarity/commitment
Profitability Drivers	Rising loan interest/fee income offset by operating costs	FY 2022 loan interest $4.6M and fees $0.4M; fair value and interest expense headwinds	Scaling revenue; margin pressure persists
Litigation/Regulatory	Luxor litigation ongoing; summary motions filed	Summary judgment denied Dec 1, 2022; litigation continues	Ongoing risk
Tax/USVI EDC	EDC benefit and employment waiver updates	Continued EDC benefits; employment status updates	Stable program benefits

Management Commentary

“We are excited to partner with NexBank… This new line of credit gives us additional access to capital to continue to grow and originate alternative assets.” — Jason Kopcak, CEO (Dec 5, 2022) .
“AAMC… created the Alternative Lending Group (ALG) to generate alternative private credit loans… fund originated or acquired alternative loans… and utilize AAMC’s existing operations in India to drive controls and cost efficiencies.” .
“We believe there is a compelling investment opportunity in the investor and business purpose loan market… initial focus on short‑term investor loans provides the opportunity to generate attractive risk‑adjusted returns.” .

Q&A Highlights

The Q4 2022 earnings call transcript was not retrievable via our tools; no Q&A highlights could be extracted [3 read error noted; see document list: earnings‑call‑transcript Q4 2022 existed but retrieval failed] [3 unavailable; 1 unavailable].

Estimates Context

Wall Street consensus (S&P Global) could not be obtained due to missing CIQ mapping for AAMC in our SPGI interface (tool error). As a result, beats/misses vs consensus cannot be assessed for Q4 2022. Values would normally be retrieved from S&P Global but were unavailable in this case.

Key Takeaways for Investors

Funding runway improved: NexBank’s new $50M line plus the Flagstar facility expand lending capacity to scale ALG originations; monitor utilization and covenant headroom .
Revenue scaling underway: Loan interest/fees growing, but profitability hinges on operating leverage, spread management, and fair value volatility; rising rates increased interest expense in 2022 .
Loan book rotation: Q4 mix shift (HFI down, HFS up) signals pipeline turnover and potential near‑term asset sales; track gain‑on‑sale execution and pricing .
Litigation overhang remains: December ruling maintained case trajectory, preserving liquidity risk tail; position sizing should reflect legal uncertainty .
Tax benefits and USVI footprint: EDC program continues to support net tax profile; employment milestones important for program continuity .
With consensus data unavailable, focus on operational KPIs and funding progress as near‑term stock drivers; upcoming filings should clarify revenue scale and margin trajectory.

References: AAMC FY 2022 10‑K ; AAMC Q3 2022 10‑Q ; AAMC Q2 2022 10‑Q ; AAMC NexBank PR & 8‑K (Dec 5, 2022) .

Altisource Asset Management Corp (AAMC)·Q4 2022 Earnings Summary