Company: ATLCL
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001437749-25-033947
Chunk: 15

Company: Atlanticus Holdings Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 15
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45,909
 Total revenue from contracts with customers  $62,703  $199  $62,902

 For the Nine Months Ended September 30, 2024   CaaS    Auto Finance    Total  
 Interchange revenues, net (1)  $14,448  $—  $14,448 
 Servicing income   6,055   576   6,631 
 Service charges and other customer related fees   21,549   46   21,595 
 Total Other revenue   42,052   622   42,674 
 Merchant fees (2)   112,970   —   112,970 
 Total revenue from contracts with customers  $155,022  $622  $155,644 

   (1) Interchange revenue is presented net of customer reward expense and includes network incentives for credit card transactions processed through interchange networks.
   (2) Merchant fees are included in Consumer loans, including past due fees on our condensed consolidated statements of income.

       12

   Asset Acquisitions 
    
   The Company follows the guidance in ASC 805, "Business Combinations", for determining the appropriate accounting treatment for asset acquisitions. Accounting Standards Update ("ASU") 2017-01, "Clarifying the Definition of a Business", provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived.
    
   If the acquisition is deemed to be a business, the purchase method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset acquisition, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. See Note 2 "Acquisition of Mercury Financial LLC" for further discussion on our recent acquisition.
    
   Recent Accounting Pronouncements
    
   In  July 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025-05,