Company: IMXI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001683695-25-000030
Chunk: 98

Company: International Money Express, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 98
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.72 19.40 20.09 U.S. dollar/Guatemala quetzal7.68 7.74 7.81 7.82 7.85 7.73 U.S. dollar/Canadian dollar1.44 1.37 1.32 1.35 1.36 1.30 U.S. dollar/Dominican peso(3)61.10 59.43 58.04 55.76 — — U.S. dollar/Euro(3)0.96 0.92 0.91 0.92 — — U.S. dollar/British Pound Sterling(4)0.80 0.77 — — — — 

(1)Spot exchange rates are as of December 31, 2024, 2023 and 2022.

(2)Average exchange rates are for the years ended December 31, 2024, 2023 and 2022.

(3)We commenced operations in the Dominican Republic and Europe in connection with the acquisition of LAN Holdings, Corp. in April 2023 and, therefore, no information is provided prior to 2023.

(4)We commenced operations in the United Kingdom in connection with an acquisition of a money service entity in July 2024 and, therefore, no information is provided prior to 2024.

Long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could affect our gross profit and margin.

Interest Rate Risk

As discussed above, interest under the Second A&R Credit Agreement is variable based on certain benchmark rates, including SOFR, EURIBOR and SONIA. Because interest expense is subject to fluctuation, if interest rates increase, our debt service obligations on such variable rate indebtedness would increase even though the amount borrowed may remain the same. Accordingly, an increase in interest rates would adversely affect our profitability.

During the year ended December 31, 2024, the Federal Reserve lowered the fed funds rate from 5.50% to 4.50% to ease monetary policy and support economic stability. As a consequence, other benchmark interest rates such as SOFR started to decrease during the second half of the year as well. The Company expects that the Federal Reserve will continue to monitor inflation and other economic indicators to assess if additional interest rate decreases in 2025 are warranted. As of December