Company: AX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001299709-25-000184
Chunk: 98

Company: Axos Financial, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 30, 2025. The allocation will be updated, if necessary, through the measurement period, which ends no later than one year from the acquisition date.The following table provides the Verdant preliminary purchase consideration allocation as of the date of acquisition:(Dollars in thousands)September 30, 2025ASSETS:Cash and cash equivalents$31,635 Restricted cash34,924 Loans—net of allowance for credit losses of $7,7951,020,322 Other assets1223,842 Goodwill and other intangible assets—net72,767 TOTAL ASSETS$1,383,490 LIABILITIES:Secured financings$782,423 Accounts payable and other liabilities29,250 TOTAL LIABILITIES$811,673 TOTAL CONSIDERATION (Including $500.0 million to settle certain debt of Verdant and $30.8 million of Contingent Consideration)$571,817 Amount paid to settle certain debt of Verdant, excluding $2.2 million of transaction costs included in the purchase price(497,776)Contingent Consideration(30,810)PURCHASE PRICE$43,231 1 Includes $212.6 million of equipment under operating lease arrangements.

8

The fair value estimates used in valuing certain acquired assets and liabilities are based, in part, on inputs that are unobservable. For loans, these include, but are not limited to, forecasted future cash flows and discount rates and for equipment under operating lease arrangements, cost and market valuation approaches were utilized.The following table details the intangible assets acquired in the acquisition:(Dollars in thousands)September 30, 2025Weighted-Average Life (Years)Vendor relationships$11,200 13.6Trade name2,600 5.0Developed technologies5,100 3.0Total intangible assets acquired$18,900 9.6The following valuation approaches were utilized to estimate the acquisition-date fair value for the intangible assets acquired:•Vendor relationships: Fair value was estimated with an income approach using a multi-period excess earnings method which discounts expected future cash flows, taking into account historic customer attrition rates and contributory asset charges, among other factors.•Trade name: Fair value was estimated with an income approach using a relief-from-royalty method which considers the hypothetical royalty rate the Company would have paid if it did not own the trade name, taking into account discounted expected future cash flows, market