Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 94

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 94
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 assuming an exchange of the Exchangeable Secured Notes for shares of Class A Common Stock in FOA as of the beginning of the reporting period. Additionally, if dilutive, interest expense attributable to the controlling interest for the 

45

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

Exchangeable Secured Notes, including amortization of debt discount and issuance costs, and net of income tax effects, is added back to the continuing operations numerator in calculating diluted earnings (loss) per share.   The Company in its discretion may elect to settle any exchange of the Exchangeable Secured Notes in part or in whole by delivering the cash value of the shares of Class A Common Stock otherwise deliverable upon such exchange. If dilutive, the denominator in the diluted earnings (loss) per share calculation assumes that all of the Exchangeable Secured Notes were converted into Class A Common Stock in FOA at the beginning of the reporting period. The Company had 5,337,928 potentially dilutive shares from the Exchangeable Secured Notes for both the three and nine months ended September 30, 2025. The potentially dilutive shares from the Exchangeable Secured Notes were determined to be anti-dilutive for the three months ended September 30, 2025 and have been excluded from the computation of diluted loss per share. As such, the $2.8 million reallocation of net loss attributable to the controlling interest assuming an exchange of the Exchangeable Secured Notes for shares of Class A Common Stock in FOA was not included in the numerator in calculating diluted loss per share for the three months ended September 30, 2025. Additionally, $1.9 million of interest expense for the Exchangeable Secured Notes, including amortization of debt discount and issuance costs, and net of income tax effects, was not added back in the numerator in calculating diluted loss per share for the three months ended September 30, 2025.(3) As the Convertible Notes are not considered participating securities, the Company calculates diluted earnings (loss) per share for the assumed conversion of Convertible Notes for shares of Class A Common Stock in FOA using the if-converted method. If dilutive, the fair value adjustment for the Convertible Notes, net of income tax effects, is reversed from the continuing operations numerator in calculating diluted earnings (loss) per share. If dilutive, the denominator in the diluted earnings (loss) per share calculation assumes that all of the Convertible Notes were converted