Company: ATLCL
Filing Date: 2025-03-10
Form Type: CORRESP
Source: 0001437749-25-006744
Chunk: 9

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-10
Form: CORRESP
Chunk 9
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 when calculating the fair value of your loans on a “with our without” subsequent purchases basis you tend to see a slight increase in the overall value of the existing portfolio when subsequent purchases are excluded, assuming no other changes in assumptions. In light of our comment above where we state that we do not believe the inclusion of expected subsequent purchases (and future merchant fees) is consistent with the guidance in ASC 820 and ASC 825, please explain in more detail how you intend to calculate the impact of excluding subsequent purchases from your revised fair value measurement. For example, please clarify if your new methodology would result in the revision of other assumptions when subsequent purchases are excluded, such as the assumptions related to payment behavior, credit losses, etc. To the extent you believe that no assumptions need to be changed, please explain why and provide support for your conclusion. |

Company Response:

See response to Comment 3 above. Further, to show the impact of the differences between our legacy fair value model and our revised fair value model, we have included the cash flows (or net cash flows in the case of our prior model which used consumer payments to offset subsequent purchases) recognized under each fair value model (aggregated by year). As can be seen below, there is a significant acceleration in the receipt of cash flows using the revised fair value model, positively impacting our General Purpose Credit Card receivable valuation. The impact on our Private label Credit receivables, for which subsequent purchases do not constitute a meaningful amount, resulted in a slightly negative impact on valuation.

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[*****] One table omitted and provided under separate cover to the Staff pursuant to Rule 83.

Confidential Treatment Requested by Atlanticus Holdings Corporation
AHC - 006

Form 10-Q for the Quarter Ended September 30, 2024

General Purpose Credit Cards, page 26

| 5. | We note your response to comment 2 in your letter dated February 6, 2025 where you have proposed to revise your disclosure to clarify that under your agreements with bank partners, you are required to purchase private label credit receivables for amounts that may be in excess of fair value, in which case you would record a negative fair value on acquisition of the private label receivable. In your response, you also provide the accounting entries for the acquisition of a private label credit receivable. As it relates to your general purchase credit card receivables, we note you charge an annual fee ranging from $0-$175 and you recognize annual fees as income when they