Company: ATLCL
Filing Date: 2025-03-10
Form Type: CORRESP
Source: 0001437749-25-006744
Chunk: 8

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-10
Form: CORRESP
Chunk 8
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 terms of paydown expectations), expected charge off rates were not directly impacted (although the consumer receivable balance on which those rates are applied declined and thus total chargeoffs are reduced). These changes in our methodology result in a slight decrease in the assessed fair value of the asset when compared to our prior fair value methodology. As discussed above, the performance metrics of an installment lending product (or revolving product that typically experiences low subsequent utilization, as noted here) tend to differ from those associated with a more active revolving credit product. In this case, the acceleration of the receivable paydown was not as pronounced due to lower subsequent purchases that were in the model, however the removal of subsequent merchant fees (which directly impact cash flows) did result in a direct reduction to cash flows which in turn reduced fair value.

Confidential Treatment Requested by Atlanticus Holdings Corporation
AHC - 005

Using the revised forecasting approach discussed above, we recalculated our Loans at fair value for December 31, 2023 and concluded that the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would not have been changed or influenced by the inclusion or correction of the item. As a result, we have determined that the change is not material and restatement is not necessary to properly present our December 31, 2023 results. Further, we are in the process of recalculating the fair value our Loans at fair value for the interim periods in the years ended December 31, 2024 and 2023 and, based on initial results, do not believe this will result in a material difference that would require restatement using the same materiality consideration noted above. We are in the process of finalizing these numbers, performing our analysis of materiality and documenting our conclusions. Although we do not believe restatement is required due to materiality, we will include discussion of the revised methodology within Note 2 “Significant Accounting Policies and Consolidated Financial Statement Components” to our consolidated financial statements as follows:

We revised the discounted cash flow analysis used in the calculation of our Loans at fair value to remove the impacts of cash flows related to subsequent purchases associated with consumer receivables and cash flows on related merchant fees. These changes in the calculation of our Loans at fair value did not result in a restatement of our consolidated statements of income in prior periods. Certain disclosures have been revised to conform to current year presentation.

| 4. | We note your response to prior comment 6 where you state that