Company: ATLCL
Filing Date: 2025-03-19
Form Type: CORRESP
Source: 0001437749-25-008467
Chunk: 3

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-19
Form: CORRESP
Chunk 3
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 o | SAB Topic 1.M (SAB 99) — states that the assessment of the materiality of errors should consider both qualitative and quantitative considerations and discusses more specific aspects of the qualitative considerations. |

| o | SAB Topic 1.N (SAB 108) — addresses quantifying the financial statement effects of errors (i.e., the quantitative analysis) and provides guidance on the correction of errors, including the correction of immaterial errors existing in prior period financial statements. |

| ● | KPMG’s Handbook: Accounting changes and error corrections |

| ● | BDO’s guide: Accounting Changes and Error Corrections |

[*****] Omitted and provided under separate cover to the Staff pursuant to Rule 83.

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Confidential Treatment Requested by Atlanticus Holdings Corporation

AHC2 - 002

Materiality Considerations

As summarized in the guidance referenced above, the following materiality factors were considered

| ● | When an error is identified, the accounting and reporting conclusions are dependent on the materiality of the error(s) to the financial statements. |

| ● | An item is considered material if there is “a substantial likelihood that the…fact would have been viewed by the reasonable investor as having significantly altered the ‘total mix’ of information made available.” |

| ● | Companies (particularly SEC registrants) are directed to consider both the quantitative and qualitative considerations outlined in the extensive materiality guidance set forth in SEC Staff Accounting Bulletin (“SAB”) Topics 1.M and 1.N (formerly referred to as SAB Nos. 99 and 108, respectively). |

| ● | Materiality should be assessed with respect to the misstatement’s impact on prior period financial statements and, in the event prior period financial statements are not restated or adjusted, with respect to the impact of the misstatement’s correction on the current period financial statements. |

| ● | Management should also consider whether the correction (or non-correction) of errors would result in other potential impacts such as compliance with debt or other covenants that could be affected by the error. |

Management has evaluated extensively the quantitative and qualitative considerations listed in SAB Topic 1.M (SAB 99) and 1.N (SAB 108), and we have considered the potential impact to users of our prior period financial information in the event the error remains unadjusted. Documentation of this assessment is below.

IV. Evaluation of the Materiality of the Misstatements

| A. | Quantitative Materiality Evaluation |

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