MSP Recovery, Inc.

Good morning, and welcome to the MSP Recovery Second Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to MSP Recovery's General Counsel, Alexandra Plascencia. Please go ahead.

Good morning. I am Alexandra Plascencia, General Counsel of MSP Recovery. Welcome to our second quarter 2022 earnings conference call. Before we begin, please note information about factors that could cause results to differ from those in the forward-looking statements is contained in the company's SEC filings. This includes, but is not limited to, risk factors contained in our quarterly report on Form 10-Q for the quarter ended June 30, 2022, subsequent SEC filings, and in the news release issued earlier today. A copy of these materials can be found in the investors section of our website at msprecovery.com. Non-GAAP financial measures are included in our comments today and in our presentation slides. The reconciliation of these non-GAAP measures to the corresponding GAAP measures is included at the end of the presentation slides and can be found in the investor section of our website. At this time, all participants are in a listen-only mode. The participants on today's call will be John H. Ruiz, founder and CEO of MSP Recovery, Frank Quesada, co-founder and chief legal officer, and Calvin Hamstra, chief financial officer. I would now like to turn the call over to John H. Ruiz.

Good morning, everyone. This is John H. Ruiz, founder and CEO of MSP Recovery. We welcome you to today's earnings call. Today, we will discuss MSP Recovery's second quarter 2022 earnings, including an overview on MSP. I will provide some color on the MSP ecosystem. I started this business in 2014, and at the time, it was designed to disrupt the Medicare, Medicaid, and commercial reimbursement system with data-driven solutions. Over time, Our mission has evolved as a result of uncovering the major issues that confront the U.S. patient, provider, and payer ecosystems. In this regard, we have created solutions that will correct the significant flaws that occur daily and in the process, identify waste, fraud, and improper payments in a real-time solution providing patients with better care and at the same time save lives while decreasing further injury for many as well as providing efficiency for patients, providers, and payers. All this will lead to better care for patients, higher collections for the providers, and less improper payments for health care providers including Medicare, Medicaid, and commercial payers when those payers are at financial risk. In 2014, Frank Quesada and I identified a problem where the government was incorrectly paying for billions of dollars for healthcare expenses where other parties were ultimately the responsible parties. In addressing this issue, MSP's innovative solutions support the long-term sustainability of Medicare and Medicaid programs. relied upon by over 100 million people in the United States of America. By ensuring that the responsible parties, known as primary payers, properly pay in those instances where such payers are liable, billions of dollars in improper payments are identified, which in turn helps sustain the Medicare and Medicaid programs for years to come by preventing improperly paid claims by government programs. MSP continues to be a disruptor in the healthcare technology space, supported by three key pillars. I truly believe that no one has a better understanding of healthcare, healthcare data, and the law all combined, which makes our business unique and very difficult to replicate. We own a unique asset, irrevocably assigned recovery rights that as of June 30th, 2022, were valued at $88.3 billion in identified recovery opportunities, which represents 31% of the recovery rights associated with the Medicare Advantage market. As of June 30th, 2022, the total amount of owned claims was $370.2 billion in paid and $1.553 trillion in billed amounts. Further, our winning legal and recovery strategies have strengthened the Medicare secondary payer laws as shown by the legal precedent we have created since starting this business. And lastly, our intellectual property, which consists of over 1,400 proprietary algorithms, will only serve to strengthen our association with Palantir. whose innovative engineers are working together closely with our team to bolster our next generation recovery detection systems. We furthered that with the creation of LifeWallet, a self-contained ecosystem that was designed for patients, providers, and payers. LifeWallet works in its own self-contained ecosystem. and can be utilized throughout the entire world. Now I'd like to walk you through some of our second quarter highlights regarding our recovery efforts and MSP's LifeWallet platform. On our recovery efforts, our paid value of potentially recoverable claims continues to grow. As of June 30th, we have $88.3 billion in paid value of potentially recoverable claims. During the second quarter, we focused on deploying a new strategy that will enable primary payers to make the required payments prior to engaging in litigation. This effort is truly focused on accident-related recoveries. Additionally, we continue to see investor interest in our very unique asset, the claim rights. as evidenced by our agreement with Prudent Group, which has committed to invest up to $250 million related to our recovery efforts. To significantly bolster our recovery efforts, MSP Recovery has formed strategic alliances with Milberg, Brinson, Phillips, Grossman Law Firm, as well as the Rivera Mestry Law Firm, both of which will bring significant resources and nationally recognized litigators to secure recoveries. Milberg is considered a preeminent firm for mass torts and federal class action cases. They've recovered more than $50 billion for their clients. Rivera Mestre is known for handling the Bet the House litigation for its large corporate clients. Recently, Rivera Mestre prevailed a trial in a $600 billion dispute where they successfully represented Dr. Craig Wright, who is considered by many to be the creator of Bitcoin. We have made significant progress in our recovery efforts with several cases in settlement discussions, others that have already settled. As it pertains to LifeWallet, we entered into an agreement with Seguritech, a Mexican data company, to position LifeWallet for international growth. Also, Cano Health and La Colonia Medical Centers have agreed to load all their patient data onto the LifeWallet ecosystem. We also are working with Tokenology on a tokenized healthcare initiative on the Polygon network. The initiative combined with LifeWallet's biometric technologies should significantly reduce fraud and abuse in the healthcare system. as the invoicing or 837 form, as known in the industry, will be embedded with biometric technology, signifying to the payer that the patient was actually there. I want to take a moment to highlight significant growth, which I believe is indicative of the success we have achieved since starting MSP. When we first started, we had very few Assinores, which made up just over $2.7 million in paid amounts in our portfolio. Today, as it stands, we have over 150 Assinores with over $370 billion paid amounts, of which $88.3 billion have been identified as potentially recoverable. 2021 was a positive year in terms of growth, as we finalized a number of agreements with prospects that we had been working on since 2019 and 2020. As we have stated previously, MSP has engaged in data matching with over 10 auto insurance carriers. Through this process, we have identified over $4.4 billion in accident-related treatments that were paid by our ASINORs. In June 2022, MSP deployed a new strategy, depicted by demand letters. This will enable primary payers to make the required payments outside of the purview of litigation and in the ordinary course of business. As we announced in June of 2022, MSP commenced sending individual claim demands totaling more than $1.5 billion in billed amounts for payment by auto insurers who admitted to the federal government, CMS, that they were the primary payers for the underlying accidents. Now I'll hand it over to Frank Quesada, co-founder and chief legal officer of MSP, to discuss our recent accomplishments and provide 2022 guidance. Good morning.