Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-K/A
Source: 0001828937-25-000032
Chunk: 195

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-K/A
Chunk 195
---
ASB issued ASU 2024-04 which is intended to clarify the requirements for determining whether to account for certain early settlements of convertible debt instruments as induced conversions or extinguishments.                                                                                                                                       |     | For the year ending December 31, 2026 and interim reporting periods beginning in 2026. |     | The Company does not expect this ASU will have a material impact on our consolidated financial statements.                                                          
 Adoption of this ASU can be applied on a prospective or a retrospective basis.                                                                                      |

3. Acquisitions

Asset Acquisition

On March 31, 2023, the Company completed the acquisition of the assets, including the retail loan originations platform, 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 thousands):

#### 126
| 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 Seller                                                |     |   |     4,500 |
| 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 |
|