ASTA FUNDING, INC. (NASDAQ:ASFI) Files An 8-K Results of Operations and Financial Condition

Item 2.02Results of Operations and Financial
Condition.

On May15, 2017, Asta Funding, Inc. (the Company) issued a press
release announcing that it will restate the Quarterly Report on
Form 10-Q for the quarter ended December 31, 2016. A copy of the
Companys press release is attached hereto as Exhibit 99.1 and
incorporated by reference herein.

The information furnished to Item 2.02 in this report on Form8-K,
including Exhibit99.1, shall not be deemed to be filed for the
purposes of Section18 of the Securities Exchange Act of 1934, as
amended (the Exchange Act), or otherwise subject to the liability
of that section, unless the Company specifically states that the
information is to be considered filed under the Exchange Act or
incorporates it by reference into a filing under the Securities
Act of 1933, as amended, or the Exchange Act.

Item 4.02Non-Reliance on Previously
Issued Financial Statements or a Related Audit Report or
Completed Interim Review.

On May12, 2017, the Audit Committee of the Board of Directors the
Company, after consultation with management and EisnerAmper, LLP,
the Companys current independent registered public accounting
firm, concluded that the Companys previously issued unaudited
consolidated financial statements as of and for the quarter ended
December31, 2016 (the Restated Period) included in the Form10-Q
filed February9, 2017 should no longer be relied upon. The
Company will restate its unaudited consolidated financial
statements for the Restated Period to reflect adjustments in the
fair market value for structured annuity settlements and life
contingency assets of CBC Settlement Funding, LLC, a 100% owned
subsidiary of the Company (CBC).

CBC purchases periodic payments under structured settlements and
annuity policies from individuals in exchange for a lump sum
payment (Structured Settlements). The Company elects to carry
these Structured Settlements at fair value. Changes in fair value
are recorded in unrealized gain (loss) in the Companys statements
of operations. For the quarter ended December 31, 2016, the
Company did not reflect the quarterly increase in certain
underlying benchmark interest rates used in determining fair
value of the Structured Settlements. Therefore, the Company is
now calculating fair market values for the Structured Settlements
lower than the values previously reported by the Company in the
unaudited consolidated financial statements for the Restated
Period.Primarily as a result of the revised fair market value of
the Structured Settlements, the Company currently anticipates
that the restatement will result in an increase to the net loss
previously reported for the quarter ended December 31, 2016 of
less than $1.5 million. The financial statement adjustment
relates to a non-cash item and has no material impact on cash
flows from operating activities, investing activities or
financing activities.

The Company will restate its previously issued unaudited
consolidated financial statements and filea Form10-Q/A for the
Restated Period as soon as reasonably practicable. In connection
with this restatement, the Company will correct the financial
statements for all known errors, including those that were
previously corrected in prior filings as immaterial out-of-period
adjustments. These adjustments consist of (i) an asset
reclassification on the balance sheet of $1.4 million from cash
and cash equivalents to an international portfolio acquired for
liquidation and (ii) the activity for the month of December 2016
for two international subsidiaries of the Company, whose effect
on the consolidated statement of operations will result in an
increase to the previously reported net loss for the quarter
ended December 31, 2016 of less than $100,000, where the
reporting packages were delayed and not received prior to the
filing of the Company’s Form 10-Q for the quarter ended December
31, 2016.

Due to the additional time required to address issues relating to
the restatement of the Companys previously issued unaudited
consolidated financial statements for the Restated Period, the
Companys filing of its Form10-Q for the quarter ended March31,
2017 will be delayed. The Company will file the Form10-Q for the
quarter ended March 31, 2017 as soon as reasonably practicable.

Item9.01 Financial Statements and Exhibits.

(d) Exhibits.

About ASTA FUNDING, INC. (NASDAQ:ASFI)

Asta Funding, Inc. is primarily engaged in the businesses of acquiring, managing, servicing and recovering on portfolios of consumer receivables. The Company operates through four segments: Consumer Receivables, Personal Injury Claims, Structured Settlements and GAR Disability Advocates. The Consumer receivables segment is engaged in purchasing, managing for its own account and servicing distressed consumer receivables, including charged off receivables, semi-performing receivables and performing receivables. The Personal injury claims segment includes the operations of its subsidiary, Pegasus Funding, LLC. The Structured settlements segment includes the operations of CBC Settlement Funding, LLC (CBC). The GAR Disability Advocates segment includes the operations of GAR Disability Advocates, LLC (GAR Disability Advocates). GAR Disability Advocates is a social security benefit and disability advocacy group.

ASTA FUNDING, INC. (NASDAQ:ASFI) Recent Trading Information

ASTA FUNDING, INC. (NASDAQ:ASFI) closed its last trading session 00.00 at 7.20 with 1,688 shares trading hands.