Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 79

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 79
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 million. 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 thousands): 

122

Finance of America Companies Inc.Notes to Consolidated Financial Statements

Consideration transferred:FOA Class B Common Stock(1) (Note 30 - Equity)$— Cash consideration(2)3,100 Notes payable to Seller4,500 Pay off of indebtedness(2)136,984 Initial equity consideration – Class A LLC Units(3) (Note 30 - Equity)24,419 Deferred equity consideration – Class A LLC Units(4) (Note 30 - Equity)13,137 Other liabilities assumed 8,429 Buyer transaction expenses(2)770 Forgiveness of bridge working capital notes payable24,034 Total cost$215,373 Assets acquired:Loans held for investment, subject to HMBS related obligations$5,448,712 Loans held for investment138,270 Fixed assets and leasehold improvements2,400 Right-of-use leased assets491 Other assets6,270 Total assets acquired5,596,143 Liabilities assumed:HMBS related obligations5,354,372 Operating lease liabilities492 Payables and other liabilities25,906 Total liabilities assumed5,380,770 Net identifiable assets acquired$215,373 (1) The Seller owns one share of FOA Class B Common Stock. Class B Common Stock has no economic rights but entitles each holder of at least one such share (regardless of the number of shares held) to a number of votes that is equal to the aggregate number of Class A LLC Units held by the holder on all matters on which Class A Common Stockholders are entitled to vote. The fair value of the Class B Common Stock was determined to be negligible as there are no economic rights associated with the Class B Common Stock.(2) Amounts represent the cash portion of the consideration paid to