Company: IMXI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001683695-25-000030
Chunk: 72

Company: International Money Express, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 72
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 million recorded in accrued and other liabilities in the consolidated balance sheet as of December 31, 2024. The Company anticipates to incur additional restructuring costs through March 31, 2025 of approximately $0.4 million.

As a result of implementing this restructuring plan, the Company expects to reduce compensation expense and certain facilities related charges in an amount of approximately $2.0 million a year. The anticipated effect of this reduction in expenses will be primarily realized during 2025. In addition, the Company does not expect that the execution of this restructuring plan will result in any material reduction of revenues or increase of its ongoing operating expenses.

Strategic alternatives assessment

On November 8, 2024, the Company announced that the Board had initiated a process to assess strategic alternatives as part of our commitment to maximize stockholder value, which could include, among others, a potential sale in a private transaction. On February 26, 2025, the Company announced that with the approval and recommendation of the SAC, the Board unanimously determined to suspend the Company’s previously announced assessment of strategic alternatives.

The Board conducted the review of strategic alternatives through the SAC, composed solely of independent members of the Board. The SAC, along with its independent financial advisor, the Company’s financial advisor and the assistance of its independent legal counsel, evaluated a comprehensive range of strategic alternatives to maximize stockholder value and held discussions with a wide array of strategics and financial investors since the process was announced in November of 2024 regarding potential alternatives, including a sale or merger of the Company and other transactions. The robust strategic review process did not, however, result in a definitive offer at a price that offered a superior alternative to the long-term stockholder value potentially created by the Company’s current business model and its strategic plan, which includes a significant investment to increase revenue from the Company's digital services, as more fully discussed in Item 1, Business.

Key Factors and Trends Affecting our Business

Various trends and other factors have affected and may continue to affect our business, financial condition and operating results, including, but not limited to:

•the potential adverse effects on the Company’s stock price from the suspension of the strategic alternatives evaluation process;

•our success in expanding customer acceptance of our digital services, the cost of acquiring digital customers, as well as our ability to continue to develop new products, services and infrastructure;

•new technology or competitors that disrupt the current money transfer and payment ecosystem, including the introduction and         increased consumer preference for digital platforms;