Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 25

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 period and is valued based on the fair value of the warrants on the grant date. We recognized an asset of $270.6 million associated with the fair value of the warrants, which were fully vested as of March 31, 2025. During fiscal year 2025, the expected benefit period was extended from six to nine years upon execution of a commercial agreement, which superseded and replaced the previous commercial agreement. The benefit period is reevaluated each reporting period. For the three and nine months ended March 31, 2025, we recorded amortization expense related to the commercial agreement asset of $5.8 million and $23.9 million respectively, and $8.9 million and  $27.0 million for the three and nine months ended March 31, 2024, respectively, in our interim condensed consolidated statements of operations and comprehensive income (loss) as a component of sales and marketing expense.

23

Other Assets    Other assets consisted of the following (in thousands):March 31, 2025June 30, 2024Processing reserves$75,717 $55,754 Prepaid expenses46,082 28,799 Risk sharing asset43,739 33,884 Equity securities, at cost42,316 37,806 Prepaid payroll taxes for stock-based compensation31,163 21,395 Operating lease right-of-use assets21,428 21,863 Foreign deferred tax asset15,333 21,206 Other receivables11,639 18,263 Derivative instruments3,808 17,207 Fixed term deposit— 35,203 Other assets9,827 7,960 Total other assets$301,052 $299,340 Accrued Expenses and Other LiabilitiesAccrued expenses and other liabilities consisted of the following (in thousands):March 31, 2025June 30, 2024Accrued expenses$78,927 $59,613 Operating lease liability35,640 39,493 Collateral held for derivative instruments4,290 17,643 Other liabilities54,772 30,680 Total accrued expenses and other liabilities$173,629 $147,429 

6.   Leases

We lease facilities under operating leases with various expiration dates through 2032. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written