Finance of America Companies Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Condensed Financial Information of Registrant (Parent Company Only)

Condensed Financial Information of Registrant (Parent Company Only)

6 Months Ended

Jun. 30, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Registrant (Parent Company Only)

31.	Condensed Financial Information of Registrant (Parent Company Only)

Finance of America Companies Inc.

(Parent company only)

Condensed Statements of Financial Condition

(Dollars in thousands)


	June 30, 2021			December 31, 2020
	Successor			Predecessor
ASSETS
Fixed assets and leasehold improvements, net	$	—		$	23
Investment in subsidiaries		814,440			639,011
Other assets, net		—			2,184

TOTAL ASSETS	$	814,440		$	641,218

LIABILITIES AND EQUITY
Payables and other liabilities	$	76,469		$	13,033

TOTAL LIABILITIES	$	76,469		$	13,033

EQUITY
FoA Equity Capital LLC member’s equity		—			628,176
Class A Common Stock (Successor), $0.0001 par value; 6,000,000,000 shares authorized; 59,881,714 shares issued and outstanding at June 30, 2021		6			—
Additional paid-in capital (Successor)		807,521			—
Accumulated deficit (Successor)		(69,548	)		—
Accumulated other comprehensive (loss) income		(8	)		9

TOTAL EQUITY		737,971			628,185

TOTAL LIABILITIES AND EQUITY	$	814,440		$	641,218

Finance of America Companies Inc.

(Parent Company Only)

Condensed Statements of Operations and Comprehensive Income

(Dollars in thousands)


	April 1, 2021 to June 30, 2021			January 1, 2021 to March 31, 2021			For the three months ended June 30, 2020			For the six months ended June 30, 2020
	Successor			Predecessor
REVENUES
Interest expense	$	—		$	(46	)	$	(2,477	)	$	(3,601	)

TOTAL REVENUES		—			(46	)		(2,477	)		(3,601	)

EXPENSES
Salaries and benefits		—			4,041			3,162			4,263
Occupancy and equipment rentals		—			161			143			312
General and administrative		—			357			215			736

TOTAL EXPENSES		—			4,559			3,520			5,311
OTHER, NET		(2,152	)		—			—			—

NET LOSS BEFORE INCOME TAXES		(2,152	)		(4,605	)		(5,997	)		(8,912	)
Provision for income taxes applicable to parent		(99	)		—			—			—

NET LOSS		(2,053	)		(4,605	)		(5,997	)		(8,912	)
Equity in undistributed income from subsidiaries		4,318			124,464			154,332			129,997

NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST		2,265			119,859			148,335			121,085
Other comprehensive (loss) income		(8	)		(11	)		18			11

COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$	2,257		$	119,848		$	148,353		$	121,096

As disclosed in Note 2—Summary of Significant Accounting Policies, FoA is a holding company and has a controlling interest in FoA Equity. FoA did not have any cash as of June 30, 2021 (Successor), accordingly Condensed Statements of Cash Flows have not been presented. Management determined which assets and liabilities were to be used by the operating subsidiaries, and these amounts have been appropriately excluded from the parent company Condensed Statements of Financial Position of FoA presented above. Changes in these balances are reflected as additional contributions and distributions from FoA Equity in the period in which they occur, and had no impact on any cash balances that may have otherwise been maintained at FoA.

Basis of Presentation

The parent company financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and the accompanying notes thereto. The parent company follows the same accounting policies as disclosed in Note 2—Summary of Significant Accounting Policies to the Company’s Consolidated Financial Statements. For purposes of this condensed financial information, the Company’s consolidated subsidiaries are recorded based upon its proportionate share of the subsidiaries net assets (similar to presenting them on the equity method).

Since restricted net assets of FoA and its subsidiaries exceed 25% of the consolidated net assets of the Company and its subsidiaries, the accompanying condensed parent company financial statements have been prepared in accordance with Rule

12-04

Schedule 1 of Regulation

S-X.

Dividends from Subsidiaries

There were no cash dividends paid to the parent from the Company’s consolidated subsidiaries for the Successor period from April 1, 2021 to June 30, 2021 and $75.0 million for the Predecessor period from January 1, 2021 to March 31, 2021. There were no cash dividends paid to parent from the Company’s consolidated subsidiaries for the three months ended June 30, 2020 or the six months ended June 30, 2020.