Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 17

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 17
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 acquired. The net present value of payments due was $12.6 million and $9.4 million as of June 30, 2025 and December 31, 2024, respectively, of which approximately $2.6 million and $2.2 million was included in current liabilities in the accompanying condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively. The route and customer acquisition cost asset was comprised of upfront payments made on the contracts of $28.1 million and $22.3 million as of June 30, 2025 and December 31, 2024, respectively. The Company has upfront payments of commissions paid to the third parties for the acquisition of the customer contracts that are subject to a clawback provision if the customer cancels the contract prior to completion. The payments subject to a clawback were $3.6 million and $1.2 million as of June 30, 2025 and December 31, 2024, respectively.Route and customer acquisition costs consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):June 30,2025December 31,2024Cost$45,114 $39,204 Accumulated amortization(16,520)(15,946)Route and customer acquisition costs, net$28,594 $23,258 Amortization expense of route and customer acquisition costs was $0.7 million and $1.3 million for the three and six months ended June 30, 2025, respectively. In comparison, amortization expense of route and customer costs was $0.6 million and $1.1 million for the three and six months ended June 30, 2024, respectively.

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Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

Note 7. Location Contracts Acquired

Location contract assets acquired in business acquisitions are recorded at fair value based on an income approach. Location contracts acquired consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):June 30,2025December 31,2024Cost$331,195 $330,903 Accumulated amortization(138,485)(128,285)Location contracts acquired, net$192,710 $202,618 Am