Company: ATLCL
Filing Date: 2025-03-19
Form Type: CORRESP
Source: 0001437749-25-008467
Chunk: 2

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-19
Form: CORRESP
Chunk 2
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 use only if the characteristics of the financial asset (that is, the contractual terms) are changed. Furthermore, a change in characteristics causes that particular asset to become a different asset, and the objective of a fair value measurement is to measure the asset that exists at the measurement date. Furthermore, you also state in your response that you do not believe you have a contractual right (i.e., firm commitment) related to subsequent purchases that would be eligible for fair value measurement under ASC 825. For these reasons, we do not believe the inclusion of expected subsequent purchases (and future merchant fees) in your fair value measurement is consistent with the guidance in ASC 820 and ASC 825. Please advise or revise your methodology to comply with the guidance in ASC 820.

1

Confidential Treatment Requested by Atlanticus Holdings Corporation

AHC2 - 001

The Company revised the fair value model methodology to comply with the guidance in ASC 820 as of December 31, 2024, to measure and present the fair value of loans receivable using this revised methodology. Within this memo, we are including a consideration of the materiality of the uncorrected misstatements in prior periods. The table below represents the iron curtain impact of the change in loan value for each period.

| FSLI                                        | ABCOT   | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023  |
| Dr. Loans receivable at fair value          | Asset   | [*****] | [*****] | [*****] | [*****]  |
| Cr. Changes in fair value of loans (YTD $ ) | Expense | [*****] | [*****] | [*****] | [*****]1 |

III. Guidance Considerations

In evaluating the misstatements below, management considered guidance from multiple sources to ascertain whether the misstatements are material to financial statement users (and thus for prior period filings with identified misstatements), and whether amounts would require revision through a “Big R” restatement, “Little R” restatement, and/or current period cumulative entry under ASC 250.

| A. | Materiality Guidance |

| ● | Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections |

| ● | SEC Staff Accounting Bulletin (“SAB”) Topics 1.M and 1.N (formerly referred to as SAB Nos. 99 and 108, respectively) [Link] |

|