Company: HLI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001302215-25-000092
Chunk: 21

Company: HOULIHAN LOKEY, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) Term SOFR plus a 0.10% SOFR adjustment. Commitment fees apply to unused amounts, and the HLI Line of Credit contains debt covenants which require that the Company maintain certain financial ratios. As of June 30, 2025 and March 31, 2025, no principal was outstanding under the HLI Line of Credit.In December 2023, the Company acquired 7 Mile Advisors, LLC ("7MA"). Total consideration included an unsecured note of $14,500 bearing interest at an annual rate of 2.00% and payable on December 11, 2053. The note was issued by the Company to the former principals and sellers of 7MA (who became employees of the Company). Under certain circumstances, the note will be pre-paid to each seller for Company stock over a three-year period in equal annual installments starting in December 2025. The Company incurred interest expense of $72 and $72 for the three months ended June 30, 2025 and 2024, respectively. Contingent consideration was also issued in connection with the acquisition of 7MA, which had a fair value of $2,200 and $4,000 as of June 30, 2025 and March 31, 2025, respectively.In December 2024, the Company acquired Waller Helms Advisors LLC (“WHA”). Contingent consideration was issued in connection with the acquisition of WHA, which had a fair value of $47,900 and $30,000 as of June 30, 2025 and March 31, 2025, respectively.

Note 11 — Accumulated Other Comprehensive (Loss)

Accumulated other comprehensive (loss) is comprised of Foreign currency translation adjustments of $48,319 and $(2,962) for the three months ended June 30, 2025 and 2024, respectively.Accumulated other comprehensive (loss) as of June 30, 2025 was comprised of the following:Balance, April 1, 2025$(63,281)Foreign currency translation adjustment48,319 Balance, June 30, 2025$(14,962)

Note 12 — Income Taxes

The Company’s provision for income taxes was $517 and $10,934 for the three months ended June 30