Company: IMXI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001683695-25-000063
Chunk: 68

Company: International Money Express, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 68
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 consisted of severance payments and related benefits, which are included in restructuring costs in the condensed consolidated statement of income and comprehensive income. There were no restructuring costs for the three months ended March 31, 2024.

10

The following table presents the changes in our liability balance related to restructuring costs for the three months ended March 31, 2025 (in thousands):Three Months Ended March 31, 2025Severance costsLegal and professional feesBeginning balance$300 $16 Charges incurred$297 $9 Payments$(528)$(25)Ending balance$69 $— Transaction CostsTransaction costs include all internal and external costs directly related to acquisition activities and the Company's evaluation of strategic alternatives, consisting primarily of legal, consulting, accounting and financial advisory fees. Transaction costs for the three months ended March 31, 2025 and 2024 amounted to $1.2 million and $10.0 thousand, respectively.

NOTE 3 – REVENUES

The Company recognized revenues from contracts with customers, sending agents and others for the three months ended March 31, 2025 and 2024, as follows (in thousands):Three Months Ended March 31,20252024Wire transfer and money order fees$120,889 $127,484 Discounts and promotions(722)(563)Wire transfer and money order fees, net120,167 126,921 Foreign exchange gain, net20,181 20,346 Other income3,962 3,145 Total revenues$144,310 $150,412 There are no significant initial costs incurred to obtain contracts with customers. Until January 31, 2025, the Company had a loyalty program under which customers earned one point for each wire transfer completed. Points are redeemed for a discounted wire transaction fee or a foreign exchange rate that is more favorable to the customer. Because the loyalty program benefits represent a future performance obligation, a portion of the initial consideration was recorded as deferred revenue loyalty program (see Note 9) and a corresponding loyalty program entry was recorded as contra revenue. Revenue from this performance obligation is recognized upon customers redeeming points or upon expiration of any points outstanding. Effective February 1, 2025, the loyalty program was terminated. Under the termination conditions, customers will be able to redeem their points through July 31, 2025. Any points not redeemed until that date, will expire automatically.Except for the loyalty program discussed above, our revenues include only