Company: IMXI
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-051013
Chunk: 58

Company: International Money Express, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 58
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 increase in advertising and marketing related expenses primarily as a result of campaigns to promote our digital channel services;

•$0.4 million - loss on disposal of assets primarily relating to asset disposals due to the integration of La Nacional;

•$0.4 million - higher IT related expenses incurred to sustain our business expansion and to improve our technology environment; and

•$0.3 million - related to other professional and legal fees.

Provision for credit losses — Provision for credit losses of $2.2 million for the three months ended September 30, 2025 increased by $0.5 million, or 29.4%, from $1.7 million for the three months ended September 30, 2024. The increase is primarily due to a higher 

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average balance outstanding of receivables balances from sending agents during the period, and an increase in write-offs of receivable balances primarily as a result of sending agents that were not able to pay in accordance with the original terms of their agreements with us and are, accordingly, subject to our normal collection procedures.

Transaction costs — Transaction costs of $5.4 million for the three months ended September 30, 2025 consist primarily of financial advisory fees as well as other professional fees and legal fees incurred in connection with the Company's evaluation of strategic alternatives, including the pending Merger with Western Union.

Depreciation and amortization — Depreciation and amortization of $4.4 million for the three months ended September 30, 2025 increased by $1.0 million or 29.4% from $3.4 million for the three months ended September 30, 2024. The increase is primarily the result of higher depreciation associated with additional software developed being placed into production and computer equipment acquired to support our proprietary software enhancements and increasing sending agent network, as well as amortization related to the Amigo Paisano brands acquired in December 2024. 

Non-Operating Expenses

Interest expense — Interest expense of $3.0 million for the three months ended September 30, 2025 decreased by $0.2 million, or 6.3%, from $3.2 million for the three months ended September 30, 2024. The decrease was primarily due to a loss on debt extinguishment of $0.3 million associated with the payoff of our term loan facility as a result of entering into the Second A&R Credit Agreement on August 29, 2024 and lower market interest rates,