Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 77

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 77
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als of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations. As of June 30, 2025, due to current year operating results and forecasted taxable income or losses, management has maintained their assessment that the existing taxable temporary 

34

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

differences that will reverse through the course of ordinary business will not more-likely-than-not generate sufficient taxable income to utilize the current attributes. Therefore, a valuation allowance for the deferred tax asset in excess of deferred tax liabilities has been maintained. Management also determined that the future sources of taxable income from reversing temporary differences that comprise the investment in FOA Equity deferred tax liability would only be fully realized upon sale of FOA’s interest in FOA Equity. Accordingly, the deferred tax liability from investment in FOA Equity has been treated as an indefinite-lived intangible and is limited by the federal net operating loss utilization rules.Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ended December 31, 2020 or prior.The One Big Beautiful Bill Act (the “Act”) was signed into law on July 4, 2025, introducing significant tax law changes with various effective dates. Provisions that may affect the Company include changes to the timing of deductions for depreciation, research and development expenditures, and interest expense. While the Company is still evaluating the provisions included in the Act, it does not anticipate a significant impact on overall tax expense and will implement the changes in the third quarter of 2025.

35

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

13.    Business Segment ReportingThe following tables are a presentation of financial information by segment (in thousands):

For the three months ended June 30, 2025Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherEliminationsTotalPortfolio interest incomeInterest income$— $481,800 $481,800 $— $— $481,800 Interest expense— (422,336)(422,336)— — (422,336)Net portfolio interest income— 59,464 59,464 — — 59,464 Other income (expense)Net origination gains56,058 — 56,