Company: ATLCL
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001437749-25-033947
Chunk: 184

Company: Atlanticus Holdings Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 184
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,385,144  $5,327,351 
 Amortizing debt facilities  $—  $—  $5,329  $5,329 
 Senior notes, net  $327,730  $—  $392,000  $702,376 

     Liabilities – As of December 31, 2024   Quoted Prices in Active Markets for Identical Assets (Level 1)    Significant Other Observable Inputs (Level 2)    Significant Unobservable Inputs (Level 3)    Carrying Amount of Liabilities  
                 
 Loan purchase commitment  $—  $—  $285  $285 
 Bank partner fees carried at fair value  $—  $—  $13,644  $13,644 
 Contingent consideration  $—  $—  $—  $— 
 Liabilities not carried at fair value                 
 Revolving credit facilities  $—  $—  $2,149,933  $2,193,993 
 Amortizing debt facilities  $—  $—  $5,455  $5,455 
 Senior notes, net  $281,703  $—  $—  $281,552 

   Bank partner fees carried at fair value in accordance with ASC 815, reflect the estimated fair value of future compensation we owe our bank partners associated with the regulatory oversight and other services they provide on our acquired receivables, the underlying accounts of which they continue to own and service. This compensation is based on both a fixed and variable component, dependent on the underlying performance of the acquired receivables. We estimate the present value of this compensation using internally-developed estimates of payment rates and discount rates. We recognize the fair value of these Bank partner fees within Card and loan servicing on the accompanying condensed consolidated statements of income on the date we acquire the underlying receivable. Additionally, as part of our acquisition of Mercury, the seller has the opportunity under the purchase agreement to receive earn out payments for up to three years following the closing of the acquisition in an amount equal to 75% of the amount by which the charge-offs of Mercury’s acquired receivables are less than agreed-upon charge-off levels. We have determined the contingent consideration meets the definition of a derivative instrument under ASC