Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 125

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 125
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 and Uses of Cash

Our primary sources of funds for liquidity include: (i) payments received from the sale or securitization of loans; (ii) proceeds from payments on our outstanding participating interests in loans; and (iii) advances on warehouse facilities, other secured borrowings, and our senior and working capital promissory notes.  

Our primary uses of funds for liquidity include: (i) funding of borrower advances and draws on outstanding loans; (ii) originations of loans; (iii) payment of operating expenses; and (iv) repayment of borrowings and repurchases or redemptions of outstanding indebtedness.

Our cash flow from operating activities when combined with net proceeds from our portfolio financing activities, as well as capacity through existing facilities, provide adequate resources to fund our anticipated ongoing cash requirements. We rely on these facilities to fund operating activities. As the facilities mature, management believes it will either renew existing facilities or obtain sufficient additional lines of credit. Future debt maturities will be funded with cash and cash equivalents, cash flow from operating activities including portfolio investing and financing activities, and, if necessary, future access to capital markets. We continue to optimize the use of balance sheet cash to avoid unnecessary interest carrying costs.

Cash Flows

The following table presents amounts from our Condensed Consolidated Statements of Cash Flows (in thousands):

For the three months ended March 31, 2025For the three months ended March 31, 2024(As Restated)Net cash provided by (used in):Operating activities$(92,082)$(132,243)Investing activities45,475 85,153 Financing activities(3,500)65,884 Effect of exchange rate changes on cash and cash equivalents(9)(17)Net increase (decrease) in cash and cash equivalents and restricted cash$(50,116)$18,777 Net increase in cash and cash equivalents$4,633 $1,747 Net increase (decrease) in restricted cash(54,749)17,030 

Our cash and cash equivalents and restricted cash decreased by $50.1 million for the three months ended March 31, 2025 compared to an increase of $18.8 million during the comparable period in 2024. Our cash and cash equivalents, excluding restricted cash, increased $4.6 million for the three months ended March 31, 2025 compared to an increase of $1.7 million during the comparable period in 2024