Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000042
Chunk: 21

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 21
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15, 2024.                                                                            
 Adoption of this ASU should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted.                |

3. Acquisitions

Asset Acquisition

On March 31, 2023, the Company completed the acquisition of the assets and liabilities associated with the AAG Transaction for a total purchase consideration of $ 215.4million.

The Company determined that the AAG Transaction should be considered an asset acquisition, because substantially all of the fair value of the acquired assets was concentrated in a single group of similar assets. Under the accounting for asset acquisitions, the acquisition is recorded using a cost accumulation and allocation model under which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired and liabilities assumed. Acquisition-related transaction costs are capitalized as a component of the cost of the assets acquired. Consequently, no goodwill was recognized as part of this transaction.

The following table summarizes the fair value of the consideration transferred and the major classes of assets acquired and liabilities assumed in relation to the March 31, 2023 acquisition (in thousands):

#### 26
| Finance of America Companies Inc.                                
 Notes to Condensed Consolidated Financial Statements (Unaudited) |

| Consideration transferred:                                     |     |   |           |
|:---------------------------------------------------------------|:----|:--|----------:|
| FoA Class B Common Stock(1)                                    |     | $ |         — |
| Cash consideration(2)                                          |     |   |     3,100 |
| Notes payable to Seller                                        |     |   |     4,500 |
| Pay off indebtedness(2)                                        |     |   |   136,984 |
| Initial equity consideration – Class A LLC Units(3)            |     |   |    24,419 |
| Deferred equity consideration – Class A LLC Units(4)           |     |   |    13,137 |
| Other liabilities assumed                                      |     |   |     8,429 |
| Buyer transaction expenses(2)                                  |     |   |       770 |
| Forgiveness of bridge working capital notes payable            |     |   |    24,034 |
| Total cost                                                     |     | $ |   215,373 |
| Assets acquired:                                               |     |   |           |
| Loans held for investment, subject to HMBS related obligations |     | $ | 5,448,712 |
| Loans held for investment                                      |     |