Company: ATLCL
Filing Date: 2025-03-19
Form Type: CORRESP
Source: 0001437749-25-008467
Chunk: 4

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-19
Form: CORRESP
Chunk 4
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Confidential Treatment Requested by Atlanticus Holdings Corporation

AHC2 - 003

In the assessment of quantitative materiality, management reviewed multiple indicators to align with investors’ evaluation of the total mix of information. Management believes key measures to consider in evaluating materiality include pre-tax income and total revenues. In our preliminary calculation of materiality for FY2024 based on FY2023 reported amounts, management determined that $[*****] million is an appropriate materiality threshold based on the risk profile of the Company, noting this amount represents [*****]% of FY2023 pre-tax income (“PTI”) and approximated [*****]% of FY2023 revenue.

[*****]

Further, management evaluated our assessed materiality based on final 2024 metrics as follows, noting that our determined materiality amount represents [*****]% of final PTI and [*****]% of total revenues. Thus the amount deemed to represent total overall materiality remains reasonable based on all metrics presented as of and for the year ended December 31, 2024.

[*****]

ASC 270, InterimReporting (previously APB Opinion No. 28) describes the applicability of generally accepted accounting principles to interim financial information and indicates the types of disclosures necessary to report on a meaningful basis for a period of less than a full year. Paragraph 29 provides guidance on assessing materiality in interim periods: “In determining materiality for the purpose of reporting the cumulative effect of an accounting change or correction of an error, amounts should be related to the estimated income for the full fiscal year and also to the effect on the trend of earnings.”

| B. | Prior Period Impact Evaluation |

The misstatements relate to the calculation of Fair Value of Receivables; specifically, the removal of future purchases, and the merchant fees associated with those purchases, from the future cash flows used to measure fair value of those receivables through a discounted cash flow analysis. The misstatements were identified based on discussions with the Staff of the Securities and Exchange Commission (“SEC”). Management reviewed periods including the year ended December 31, 2023 and the first three quarters of 2024 to evaluate the impact of the fair value of loans receivable adjustment to verify if a restatement of 2024 prior quarters or the prior year was necessary based on the materiality of the misstatements.

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