Company: ATLCL
Filing Date: 2025-03-19
Form Type: CORRESP
Source: 0001437749-25-008467
Chunk: 1

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-19
Form: CORRESP
Chunk 1
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 and each page is marked for the record with the identifying numbers and code “AHC2 – 001” through “AHC2 – 0012.”

If you have any questions, please do not hesitate to call me at (404) 885-3310.

| Sincerely,             |
| /s/ Paul Davis Fancher |
| Paul Davis Fancher     |

| cc: | William R. McCamey (Atlanticus Holdings Corporation)   
 Mitchell C. Saunders (Atlanticus Holdings Corporation) |

Annex A

<div align='center'>FOIA CONFIDENTIAL TREATMENT REQUEST
This memorandum omits confidential information included in the unredacted version of this memorandum that was delivered to the Staff.
Redacted information is reflected with an “[*****].”</div>

I. Background and Purpose

The purpose of this memorandum is to provide management's assessment of the impact of the fair value of loans receivable misstatement for prior periods.

II. Summary of Misstatement

During FY2024, the Company received inquiries from the SEC regarding our accounting for the Loans receivable at fair value, specifically related to the company’s fair value methodology whereby expected subsequent purchases (and future merchant fees) have been included in our fair value measurement for receivables. In the first quarter of 2025, Management identified errors in the model methodology used to determine the fair value of loans receivable. These errors impacted the balance sheet and income statement and required a revision in the model methodology to correct the cumulative impact of the error in the measurement of our Loans receivable at fair value at December 31, 2024.

A response from the SEC on this matter included the following information:

We note your response to prior comment 5 regarding the inclusion of expected subsequent purchases (and future merchant fees) in your fair value measurement for receivables. In your response, you refer to the guidance in ASC 820-10-35-10E and 35-11A as support for the inclusion of expected subsequent purchases in the fair measurement for your receivables. However, this guidance is not applicable for the measurement of financial assets. As discussed in paragraphs BC46 and BC47 of ASU 2011-04, the FASB Board does not believe the concepts of highest and best use and valuation premise are relevant when measuring the fair value of financial assets, at least in part due to the fact that financial assets do not have alternative uses because a financial asset has specific contractual terms and can have a different