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

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 23
---
 based on set thresholds and, subject to meeting the control condition, are settled twoand three yearsfollowing the closing date. The amount of units released to the Seller depends on the dollar amount of indemnified claims FoA pays out on behalf of the Seller related to litigation liabilities and indemnifiable loan losses. Two yearsfollowing the closing date, FoA Equity will issue to the Seller Class A LLC Units equal to the excess of the remaining indemnity holdback units over the threshold of 357,113. The remaining Class A LLC Units the Seller is entitled to are issued three yearsfollowing the closing date. Management has included the fair value of indemnity holdback units, reduced for estimated litigation liabilities and indemnifiable loan losses, above in the consideration given to the Seller.

#### 27
| Finance of America Companies Inc.                                
 Notes to Condensed Consolidated Financial Statements (Unaudited) |

4. Discontinued Operations

During the fourth quarter of 2022 and calendar year 2023, the Company entered into a series of transactions, discontinuing certain business lines while enhancing our reverse mortgage loan business, in order to transform our business from a vertically integrated lending and complementary services platform to a modern retirement solutions platform. This transformation included the wind-down of the previously reported Mortgage Originations segment and sale of the previously reported Commercial Originations and Lender Services segments. This constitutes a strategic shift that has or will have a major effect on our operations and financial results.

The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of June 30, 2024 and December 31, 2023 (in thousands):

|                                |     |   | June 30, 2024 |     |   | December 31, 2023 |
|:-------------------------------|:----|:--|--------------:|:----|:--|------------------:|
| Assets                         |     |   |               |     |   |                   |
| Other assets, net              |     | $ |         4,658 |     | $ |             6,721 |
| Liabilities                    |     |   |               |     |   |                   |
| Payables and other liabilities |     |   |        18,029 |     |   |            18,304 |

#### 28
| Finance of America Companies Inc.                                
 Notes to Condensed Consolidated Financial Statements (Unaudited) |

The following table summarizes the major components of net loss from discontinued operations (in thousands):

|