Company: IMXI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001683695-25-000063
Chunk: 18

Company: International Money Express, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 18
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1,209 The goodwill balance for this acquisition represents the estimated values of the Company’s assembled workforce and synergies expected to be achieved from the combined operations of the acquired entity and the Company. Goodwill resulting from this acquisition is not deductible for tax purposes.Restructuring costsDuring 2024, the Company started executing a restructuring plan primarily related to certain of its foreign operations and Envios de Valores La Nacional Corp (“La Nacional”). These restructuring costs are part of the Company's plan, for which the objectives are to reorganize the workforce, streamline operational processes, integrate technology functionality, as well as to develop efficiencies within the Company. For the three months ended March 31, 2025, the Company incurred approximately $0.3 million in expenses for a reduction of workforce in certain locations. These expenses primarily 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,