MSP Recovery, Inc. (MSPR) notified the SEC that it will file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 late. The company states it is experiencing severe liquidity constraints, is reliant on loan funding to support operations, and is actively evaluating and pursuing financing and reorganization alternatives, including preparation for a potential restructuring process.
The resignation of the Chief Financial Officer effective February 17, 2026 has created additional operational constraints on completing the quarter-end close and related disclosures. MSP Recovery has implemented interim measures to support financial reporting and is working to complete remaining closing items and file the Form 10-Q as soon as practicable, with timing dependent in part on obtaining sufficient financing or otherwise funding the closing process.
MSP Recovery, Inc. updates its resale registration, allowing selling securityholders to offer up to 909,982 shares of Class A common stock and up to 755,200,000 warrants, and registering up to 236,019 shares issuable upon exercise of warrants. The common stock and warrants trade only via unsolicited quotations on the OTC Expert Market, and there is no active public trading market. All share data reflect a 1-for-7 reverse stock split effective September 1, 2025.
The company also discloses very small, highly discretionary liquidity infusions. Hazel Partners Holdings LLC advanced $0.05 million and $0.06 million under the working capital credit facility’s Operational Collection Floor, characterized as one-time accommodations that do not reinstate availability or create any funding commitment. VRM MSP Recovery Partners, LLC separately provided one-time advances of $0.05 million each, limited to payroll and IT expenses. MSP Recovery states it has no rights to, and no reasonable basis to expect, further advances under these arrangements and cautions that these amounts do not indicate broader liquidity or ability to meet ongoing obligations.
MSP Recovery, Inc. updates its prospectus to cover the resale by Yorkville of up to 285,715 shares of Class A common stock issuable under a $250 million Standby Equity Purchase Agreement. These are being registered for Yorkville’s account; the company will not receive proceeds from Yorkville’s resales.
The Yorkville facility includes convertible notes with fixed conversion prices for specific notes and a variable conversion feature tied to 95% of the lowest VWAP, subject to a $0.50 floor price and a 9.99% Ownership Limitation. Prior stockholder approval effectively lifted a 158,295‑share, 19.99% Exchange Cap, allowing further issuances under the SEPA and notes.
The attached current report also discloses very small, highly discretionary liquidity infusions: Hazel Partners Holdings LLC provided one‑time working‑capital advances of $0.05 million and $0.06 million under its credit facility, and VRM MSP Recovery Partners, LLC advanced $0.05 million twice for payroll and IT expenses. The company notes these do not restore committed availability or create any right or expectation of future funding. The stock now trades on OTC venues, including the Expert Market, and lacks an active public trading market.
MSP Recovery, Inc. updates its resale registration to cover up to 32,220 shares of Class A common stock, including up to 15,239 shares issuable upon exercise of the CPIA Warrant at an exercise price of $0.4375 per share. Any warrant exercise would generate only nominal proceeds for the company. The securities are eligible for unsolicited quotations on the OTC Expert Market, and there is no active public trading market; current closing prices are not publicly available. Share data reflects a 1-for-7 reverse stock split effective September 1, 2025.
Through attached disclosures, the company reports small, one-time funding advances to support operating expenses and payroll. Hazel Partners Holdings LLC provided discretionary advances of $0.05 million and $0.06 million under a working capital credit facility that offers no committed liquidity and imposes no obligation to fund further amounts. VRM MSP Recovery Partners, LLC agreed to additional one-time advances of $0.05 million each, earmarked for payroll and IT costs. MSP Recovery states it has no rights to, and no reasonable basis to expect, further advances under these arrangements, and cautions that these advances should not be viewed as evidence of future funding capacity or its ability to meet ongoing obligations.
MSP Recovery, Inc. is updating a resale registration covering up to 56,896 shares of Class A common stock to reflect a new current report. The shares may be sold from time to time by selling securityholders and include 28,572 shares issuable on exercise of VRM warrants, 2,858 shares issued to VRP, 14,286 shares issuable on a VRP warrant, and 11,180 shares issued to Palantir. The VRM and VRP warrants have a low exercise price of $0.0175 per share, so any proceeds to the company from exercises would be nominal. The company’s common stock and warrants trade only via unsolicited quotations on the OTC Expert Market and currently lack an active public trading market. A 1-for-7 reverse stock split became effective on September 1, 2025.
MSP Recovery also discloses incremental short-term funding arrangements. Hazel Partners Holdings LLC provided one-time advances of $0.05 million and $0.06 million under a discretionary working capital credit facility, increasing the Operational Collection Floor but without creating any ongoing borrowing capacity or funding commitment. VRM MSP Recovery Partners, LLC made two one-time advances of recovery proceeds of $0.05 million each to support payroll and IT expenses. The company states that these are standalone accommodations, do not reinstate availability under the facility, and that it has no rights to, and no reasonable basis to expect, further advances.
MSP Recovery, Inc. entered into new short-term funding arrangements with Hazel Partners Holdings LLC and VRM MSP Recovery Partners, LLC. Hazel agreed, in its sole discretion, to provide one-time advances of $0.05 million and $0.06 million under the existing working capital credit facility’s Operational Collection Floor, funded on August 6 and August 13, 2026. Separately, VRM agreed to one-time advances of recovery proceeds of $0.05 million each, funded on August 3 and August 12, 2026, to support payroll and certain IT expenses. The company states these advances are standalone accommodations, do not reinstate or expand ongoing availability under the facility, create no commitment for future funding, and do not provide access to recurring liquidity. The company cautions that receipt of these amounts should not be viewed as evidence of additional liquidity or of its ability to meet operating or debt service obligations beyond this specific funding.
MSP Recovery, Inc. files a prospectus supplement updating its resale registration and attaching a recent current report. The supplement covers the potential resale by selling securityholders of up to 909,982 shares of Class A common stock and up to 755,200,000 warrants, plus the company’s potential issuance of up to 236,019 shares upon warrant exercise. A 1-for-7 reverse stock split became effective at 11:59 PM EDT on September 1, 2025, and share figures reflect this adjustment.
The attached current report describes two discretionary advances under the company’s working capital credit facility with Hazel Partners Holdings LLC: $0.07 million funded on July 20, 2026, and $0.05 million funded on July 29, 2026, for operating expenses. These are one-time accommodations that do not restore or expand ongoing borrowing capacity. The company states that beyond these advances it has no rights to, and no reasonable basis to expect, further funding under the facility and cautions that the facility does not provide committed liquidity.
MSP Recovery, Inc. filed a prospectus supplement registering up to 285,715 shares of Class A common stock for resale by YA II PN, Ltd. (Yorkville) under an existing Standby Equity Purchase Agreement (Yorkville SEPA). The SEPA permits the company, at its election, to sell up to $250 million of Class A shares to Yorkville, subject to a 9.99% ownership cap and a minimum conversion and sale price floor of $0.50 per share.
The filing describes multiple convertible notes issued to Yorkville totaling agreed principal of $15.75 million plus additional advances, bearing 5.0% interest (rising to 18.0% upon an event of default) and convertible at fixed prices for each note or at 95% of the lowest VWAP over a short lookback period, but never below the floor price. Ongoing amendments have repeatedly reduced the floor price and extended note maturities.
The attached Form 8‑K discloses that subsidiary borrowers obtained two discretionary working‑capital advances of $0.07 million and $0.05 million from Hazel Partners Holdings LLC under an existing facility to fund operating expenses. The company states these are one‑time accommodations, do not restore ongoing availability, and that it has no rights to and no reasonable basis to expect further funding under that facility. The stock now trades on OTCQB and is only eligible for unsolicited quotations on the Expert Market, with no active public trading market.
MSP Recovery, Inc. is updating its resale registration to cover up to 32,220 shares of Class A common stock held by selling securityholders, including 15,239 shares issuable upon exercise of the CPIA Warrant at an exercise price of $0.4375 per share. Any exercise of this warrant would provide only nominal cash proceeds to the company. A 1-for-7 reverse stock split of the common stock became effective on September 1, 2025, and the share figures reflect this adjustment. The common stock and warrants are quoted on the OTC Markets Group’s Expert Market and do not have an active public trading market.
Through subsidiaries, the company entered into two letter agreements with Hazel Partners Holdings LLC under its working capital credit facility, providing $0.07 million and $0.05 million of discretionary advances primarily for operating expenses. These one-time advances increased the Operational Collection Floor beyond the previously disclosed $6.0 million of aggregate advances but do not reinstate or reopen ongoing availability. The company states it has no rights to, and no reasonable basis to expect, further advances and that these arrangements do not provide access to recurring liquidity.
MSP Recovery, Inc. updates its resale registration to cover up to 56,896 shares of Class A common stock for selling securityholders, including shares and low-priced warrants held by Virage-affiliated funds and 11,180 shares issued to Palantir Technologies, Inc. as consideration for products and services. The VRM and VRP warrants carry an exercise price of $0.0175 per share, so any proceeds to the company from exercise would be nominal. The company’s common stock and warrants trade only via unsolicited quotations on the OTC Expert Market and lack an active public market. A 1-for-7 reverse stock split became effective on September 1, 2025, and share data have been adjusted.
Through subsidiaries, MSP Recovery also obtained two discretionary advances from Hazel Partners Holdings LLC under its working capital credit facility: $0.07 million on July 20, 2026 and $0.05 million on July 29, 2026, primarily for operating expenses. These standalone accommodations increase the Operational Collection Floor beyond approximately $6.0 million of prior advances but do not reinstate or reopen ongoing availability, create any future funding commitment, or provide recurring liquidity, and the company states it has no rights to, and no reasonable basis to expect, further advances.