Company: IMXI
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001628280-25-051013
Chunk: 88

Company: International Money Express, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 88
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5December 31, 2024Prepaid insurance$1,488 $1,097 Prepaid fees and services3,256 2,823 Agent incentive advances2,318 2,494 Agent advances receivable, net of allowance1,921 2,087 Prepaid marketing1,577 502 Prepaid income taxes5,374 119 Prepaid expenses and other current assets1,284 1,876 $17,218 $10,998 Other assets consisted of the following (in thousands):September 30, 2025December 31, 2024Revolving credit facility origination fees$3,847 $4,576 Agent incentive advances2,193 3,702 Agent advances receivable, net of allowance2,340 2,198 Right-of-use assets, net17,338 18,511 Funds held by seized banking entities, net of allowance1,743 1,539 Other assets1,643 1,672 $29,104 $32,198 Prior to 2022, local banking regulators in Mexico resolved to close and liquidate a local financial institution, citing a lack of compliance with minimum capital requirements. The Company has approximately $6.0 million of exposure from deposits it held with this bank when it was closed. In accordance with the banking regulations in Mexico, large depositors such as the Company will be paid once the assets of the financial institution are liquidated. Currently, it is difficult to predict the length of the liquidation process or if the proceeds from the asset liquidation will be sufficient to recover any of the Company's funds on deposit. The Company maintains a valuation allowance of approximately $4.3 million as of September 30, 2025 in connection with the balance of deposits held by the financial institution as a result of its closure, which has not materially changed since 2022.

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NOTE 6 – GOODWILL AND INTANGIBLE ASSETS

Goodwill and the majority of intangible assets on the condensed consolidated balance sheets of the Company were recognized from business acquisition transactions. Intangible assets on the condensed consolidated balance sheets of the Company consist of agent relationships, trade names, developed technology and other intangible assets. Agent relationships, trade names and developed technology are amortized over their estimated useful lives of up to 15 years using an accelerated method that correlates with the projected realization of the benefit. The agent relationships intangible represents the