Company: ATLCL
Filing Date: 2025-03-19
Form Type: CORRESP
Source: 0001437749-25-008467
Chunk: 8

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-19
Form: CORRESP
Chunk 8
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 Whether the misstatement concerns a segment or other portion of the registrant’s business that has been identified as playing a significant role in the registrant’s operations or profitability. |

Yes – the adjustment impacts Loans Receivable, which is the largest asset on the balance sheet and a focus of investors. This asset and its associated Change in Fair Value impact the Credit as a Service (“CaaS”) segment and do not have any impact on the Auto Finance segment. However, correcting the misstatement would have increased the assets balance and increased net income, albeit by immaterial amounts, as shown below for the year ended December 31, 2023 as well as for the quarters ended March 31, June 30, and September 30, 2024. As shown in the charts in Appendix A, Section D, the iron curtain impacts for year-to-date amounts include CaaS segment Assets impacts of [*****]% to [*****]% for all dates evaluated, impacts on changes in the fair value of loans are the same as the consolidated impacts, and the impacts on segment net margin and income before taxes range from [*****]% to [*****]% and from [*****]% to [*****]%, respectively.

| F. | Whether the misstatement has the effect of increasing management’s compensation — for example, by satisfying requirements for the award of bonuses or other forms of incentive compensation. |

No – the unadjusted misstatement decreased net margin and net income each quarter. As such, the unadjusted misstatement did not have a positive impact on management’s compensation, bonus structure, or incentive compensation.

| G. | Whether the misstatement affects the registrant’s compliance with regulatory requirements. |

No – the change in fair value methodology would not be expected to affect our compliance with regulatory requirements.

| H. | Whether the misstatement affects the registrant’s compliance with loan covenants or other contractual requirements. |

No – the misstatement has no bearing on compliance with loan covenants or other contractual requirements.

[*****] Omitted and provided under separate cover to the Staff pursuant to Rule 83.

7

Confidential Treatment Requested by Atlanticus Holdings Corporation

AHC2 - 007

| I. | Whether the misstatement involves concealment of an unlawful transaction. |

No – the misstatement does not involve the concealment of an unlawful transaction.

Based on management’s analysis above, the adjustment is not considered qualitatively material.

| D. | Conclusion on the Evaluation of Materiality |

Based on the factors above and considered in