0001683695-20-000016 | 10-Q | XBRL Viewer | International Money Express INC

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ACCOUNTS RECEIVABLE, NET OF ALLOWANCE, Accounts Receivable Outstanding Balance (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable	$ 61,205	$ 40,513
Allowance for credit losses	(1,243)	(759)
Accounts receivable, net	$ 59,962	$ 39,754

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash	$ 109,067	$ 86,117
Accounts receivable, net of allowance of $1,243 and $759, respectively	59,962	39,754
Prepaid wires, net	8,983	18,201
Prepaid expenses and other current assets	2,685	4,155
Total current assets	180,697	148,227
Property and equipment, net	12,770	13,282
Goodwill	36,260	36,260
Intangible assets, net	22,168	27,381
Deferred tax asset, net	0	741
Other assets	2,328	1,415
Total assets	254,223	227,306
Current liabilities:
Current portion of long-term debt, net	7,044	7,044
Accounts payable	9,890	13,401
Wire transfers and money orders payable, net	48,189	40,197
Accrued and other liabilities	24,086	23,074
Total current liabilities	89,209	83,716
Long-term liabilities:
Debt, net	82,340	87,623
Deferred tax liabilities, net	571	0
Total long-term liabilities	82,911	87,623
Commitments and contingencies
Stockholders' equity:
Common stock $0.0001 par value; 230,000,000 shares authorized, 38,059,737 and 38,034,389 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively.	4	4
Additional paid-in capital	56,793	54,694
Retained earnings	25,340	1,176
Accumulated other comprehensive (loss) income	(34)	93
Total stockholders' equity	82,103	55,967
Total liabilities and stockholders' equity	$ 254,223	$ 227,306

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2018	$ 44,473	$ 4	$ 61,889	$ (17,418)	$ (2)
Beginning balance (in shares) at Dec. 31, 2018		36,182,783
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Warrant exchange	(10,031)		(10,031)
Warrant exchange (in shares)		1,800,065
Net income	14,268			14,268
Issuance of common stock:
Exercise of stock options	(4)		(4)
Exercise of stock options (in shares)		1,583
Restricted stock units	0
Restricted stock units (in shares)		21,192
Share-based compensation	1,894		1,894
Adjustment from foreign currency translation, net	34				34
Ending balance at Sep. 30, 2019	49,619	$ 4	53,748	(4,165)	32
Ending balance (in shares) at Sep. 30, 2019		38,005,623
Beginning balance at Jun. 30, 2019	44,960	$ 4	53,118	(8,203)	41
Beginning balance (in shares) at Jun. 30, 2019		37,982,848
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,038			4,038
Issuance of common stock:
Exercise of stock options	(4)		(4)
Exercise of stock options (in shares)		1,583
Restricted stock units	0
Restricted stock units (in shares)		21,192
Share-based compensation	634		634
Adjustment from foreign currency translation, net	(9)				(9)
Ending balance at Sep. 30, 2019	49,619	$ 4	53,748	(4,165)	32
Ending balance (in shares) at Sep. 30, 2019		38,005,623
Beginning balance at Dec. 31, 2019	55,967	$ 4	54,694	1,176	93
Beginning balance (in shares) at Dec. 31, 2019		38,034,389
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24,164			24,164
Issuance of common stock:
Exercise of stock options	(110)		(110)
Exercise of stock options (in shares)		11,497
Restricted stock units	0
Restricted stock units (in shares)		13,851
Share-based compensation	2,209		2,209
Adjustment from foreign currency translation, net	(127)				(127)
Ending balance at Sep. 30, 2020	82,103	$ 4	56,793	25,340	(34)
Ending balance (in shares) at Sep. 30, 2020		38,059,737
Beginning balance at Jun. 30, 2020	71,896	$ 4	56,098	15,842	(48)
Beginning balance (in shares) at Jun. 30, 2020		38,035,279
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,498			9,498
Issuance of common stock:
Exercise of stock options	(106)		(106)
Exercise of stock options (in shares)		10,607
Restricted stock units	0
Restricted stock units (in shares)		13,851
Share-based compensation	801		801
Adjustment from foreign currency translation, net	14				14
Ending balance at Sep. 30, 2020	$ 82,103	$ 4	$ 56,793	$ 25,340	$ (34)
Ending balance (in shares) at Sep. 30, 2020		38,059,737

INCOME TAXES, Reconciliation of Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income before income taxes	$ 13,042	$ 6,291	$ 33,053	$ 20,204
US statutory tax rate	21.00%	21.00%	21.00%	21.00%
Income tax expense at statutory rate	$ 2,739	$ 1,321	$ 6,941	$ 4,243
State tax expense, net of federal	745	345	1,803	1,140
Foreign tax rates different from U.S. statutory rate	19	26	78	41
Non-deductible expenses	92	218	114	246
Credits	(7)	8	(10)	(1)
Other	(44)	335	(37)	267
Total tax provision	$ 3,544	$ 2,253	$ 8,889	$ 5,936

REVENUES

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUES

The Company recognized revenues from contracts with customers for the three and nine months ended September 30, 2020 and 2019, as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Wire transfer and money order fees	$	82,890	$	72,710	$	223,171	$	202,202
Discounts and promotions	(244)		(242)		(637)		(792)
Wire transfer and money order fees, net	82,646		72,468		222,534		201,410
Foreign exchange gain, net	12,296		12,272		33,510		33,297
Other income	652		594		1,863		1,652
Total revenues	$	95,594	$	85,334	$	257,907	$	236,359

There are no significant initial costs incurred to obtain contracts with customers, although the Company has a loyalty program under which customers earn one point for each wire transfer completed. Points can be redeemed for a discounted wire transaction fee or higher foreign exchange rate. The discounts vary by country, and the earned points expire if the customer has not initiated and completed an eligible wire transfer transaction within the immediately preceding 180 day period. In addition, earned points will expire 30 days after the end of the program. Therefore, because the loyalty program benefits represent a future performance obligation, a portion of the initial consideration is recorded as deferred revenue (see Note 7) and a corresponding loyalty program expense is recorded as contra revenue. Revenue from this performance obligation is recognized upon customers redeeming points or upon expiration of any points outstanding.

Except for the loyalty program discussed above, our revenues include only one performance obligation, which is to collect the customer’s money and make funds available for payment, generally on the same day, to a designated recipient in the currency requested.

The Company also offers several other services, including money orders and check cashing, for which revenue is derived from a fee per transaction. For substantially all of the Company’s revenues, the Company acts as principal in the transactions and reports revenue on a gross basis, because the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss and has the ability to establish transaction prices.

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION, Stock Option Activity (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares
Weighted-Average Grant Date Fair Value
Exercisable ending balance (in dollars per share)	$ 3.48
Stock options \| the “2018 Plan”
Number of Options
Outstanding, beginning balance (in shares) \| shares	2,905,219
Granted (in shares) \| shares	555,000
Exercised (in shares) \| shares	(47,500)
Forfeited (in shares) \| shares	(244,792)
Outstanding, ending balance (in shares) \| shares	3,167,927	2,905,219
Exercisable, ending balance (in shares) \| shares	1,239,443
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 10.51
Granted (in dollars per share)	12.66
Exercised (in dollars per share)	9.98
Forfeited (in dollars per share)	11.66
Outstanding, ending balance (in dollars per share)	10.81	$ 10.51
Exercisable, ending balance (in dollars per share)	$ 10.11
Weighted-Average Remaining Contractual Term (Years)
Weighted average remaining contractual term, outstanding	8 years 2 months 26 days	8 years 8 months 26 days
Weighted average remaining contractual term, exercisable	7 years 10 months 17 days
Weighted-Average Grant Date Fair Value
Outstanding beginning balance (in dollars per share)	$ 3.58
Granted (in dollars per share)	5.54
Exercised (in dollars per share)	3.45
Forfeited (in dollars per share)	3.89
Outstanding ending balance (in dollars per share)	$ 3.90	$ 3.58

FAIR VALUE MEASUREMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS	Sep. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The Company determines fair value in accordance with the provisions of FASB guidance, Fair Value Measurements and Disclosures, which defines fair value as an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-level fair value hierarchy that prioritizes the inputs used to measure fair value was established. There are three levels of inputs used to measure fair value and for disclosure purposes. Level 1 relates to quoted market prices for identical assets or liabilities in active markets. Level 2 relates to observable inputs other than quoted prices included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s non-financial assets measured at fair value on a nonrecurring basis include goodwill and intangibles assets. The determination of our intangible fair values includes several assumptions and inputs (Level 3) that are subject to various risks and uncertainties. Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties. All other financial assets and liabilities are carried at amortized cost. The Company’s cash is representative of fair value as these balances are comprised of deposits available on demand. Accounts receivable, prepaid wires, accounts payable and wire transfers and money orders payable are representative of their fair values because of the short turnover of these items. The Company’s financial liabilities include its revolving credit facility and term loan. The fair value of the term loan, which approximates book value, is estimated by discounting the future cash flows using a current market interest rate. The estimated fair value of the revolving credit facility would approximate face value given the payment schedule and interest rate structure, which approximates current market interest rates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

COMMITMENTS AND CONTINGENCIES, Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 07, 2019 USD ($)	Oct. 31, 2020 USD ($)	Sep. 30, 2020 USD ($) territory country	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) territory country	Sep. 30, 2019 USD ($)
Loss Contingencies [Line Items]
Rent expense			$ 600	$ 500	$ 1,600	$ 1,500
Amount of settlement created	$ 3,250
Balance of settlement liabilities			$ 2,900		$ 2,900
Number of territories in which entity operates \| territory			2		2
Number of countries in which entity operates \| country			3		3
Subsequent Event
Loss Contingencies [Line Items]
Amount paid for settlement		$ 2,900

GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Goodwill and Intangible Assets

The following table presents the changes in goodwill and intangible assets (in thousands):


	Goodwill		Intangibles
Balance at December 31, 2019	$	36,260	$	27,381
Amortization expense	—		(5,213)
Balance at September 30, 2020	$	36,260	$	22,168

Amortization Expense Related to Intangible Assets

Amortization expense related to intangible assets for the next five years and thereafter is as follows (in thousands):


2020	$	1,738
2021	5,161
2022	3,997
2023	2,989
2024	2,270
Thereafter	6,013
	$	22,168

ACCRUED AND OTHER LIABILITIES, Changes in Deferred Revenue Loyalty Program Liability (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 2,495
Revenue deferred during the period	535
Revenue recognized during the period	(428)
Ending balance	$ 2,602

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

9 Months Ended

Sep. 30, 2020

Prepaid Expense and Other Assets [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Prepaid insurance	$	431	$	404
Prepaid fees	682		1,211
Notes receivable, net of allowance	705		648
Prepaid taxes	130		1,025
Other prepaid expenses and current assets	737		867
	$	2,685	$	4,155

EARNINGS PER SHARE, Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Income (Loss) Per Share, Basic and Diluted [Abstract]
Net income for basic and diluted earnings per common share	$ 9,498	$ 4,038	$ 24,164	$ 14,268
Shares:
Weighted-average common shares outstanding - basic (in shares)	38,050,610	37,984,316	38,040,339	37,230,831
Weighted-average common shares outstanding - diluted (in shares)	38,652,707	38,286,702	38,246,429	37,365,371
Earnings per common share – basic (in dollars per share)	$ 0.25	$ 0.11	$ 0.64	$ 0.38
Earnings per common share – diluted (in dollars per share)	$ 0.25	$ 0.11	$ 0.63	$ 0.38
RSUs
Shares:
Effect of dilutive securities (in shares)	12,721	19,222	9,570	16,555
Stock options
Shares:
Effect of dilutive securities (in shares)	589,376	283,164	196,520	100,975
Warrants
Shares:
Effect of dilutive securities (in shares)	0	0	0	17,010

DEBT, Narrative (Details)			3 Months Ended	9 Months Ended
DEBT, Narrative (Details)	Apr. 20, 2020 USD ($)	Nov. 07, 2018 USD ($)	Jun. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Funds received under the Paycheck Protection Program	$ 3,500,000
Minimum
Debt Instrument [Line Items]
Fixed charge coverage ratio				1.25
Maximum
Debt Instrument [Line Items]
Consolidated leverage ratio				3.25
Term loan
Debt Instrument [Line Items]
Long-term debt, gross				$ 91,298,000	$ 97,044,000
Revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross				$ 0	$ 0
Credit Agreement
Debt Instrument [Line Items]
Unused line fee percentage		0.35%
Credit Agreement \| LIBOR
Debt Instrument [Line Items]
Interest rate		4.50%
Credit Agreement \| Base Rate
Debt Instrument [Line Items]
Interest rate		3.50%
Credit Agreement \| Term loan
Debt Instrument [Line Items]
Debt instrument, face amount		$ 90,000,000
Effective interest rate				5.93%
Credit Agreement \| Term loan \| Year 1
Debt Instrument [Line Items]
Periodic repayment percentage		5.00%
Credit Agreement \| Term loan \| Year 2
Debt Instrument [Line Items]
Periodic repayment percentage		7.50%
Credit Agreement \| Term loan \| Year 3
Debt Instrument [Line Items]
Periodic repayment percentage		7.50%
Credit Agreement \| Term loan \| Year 4
Debt Instrument [Line Items]
Periodic repayment percentage		10.00%
Credit Agreement \| Term loan \| Year 5
Debt Instrument [Line Items]
Periodic repayment percentage		10.00%
Credit Agreement \| Revolving credit facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 35,000,000
Effective interest rate				0.99%
Credit Agreement \| Incremental Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 30,000,000
Repayments under revolving loan, net			$ 12,000,000

INCOME TAXES

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

A reconciliation between the income tax provision at the US statutory tax rate and the Company’s income tax provision on the condensed consolidated statements of operations and comprehensive income is below (in thousands, except for tax rates):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Income before income taxes	$	13,042		$	6,291		$	33,053		$	20,204
US statutory tax rate	21		%	21		%	21		%	21		%
Income tax expense at statutory rate	2,739			1,321			6,941			4,243

State tax expense, net of federal	745			345			1,803			1,140
Foreign tax rates different from U.S. statutory rate	19			26			78			41
Non-deductible expenses	92			218			114			246
Credits	(7)			8			(10)			(1)
Other	(44)			335			(37)			267
Total tax provision	$	3,544		$	2,253		$	8,889		$	5,936

Effective income tax rates for interim periods are based upon our current estimated annual rate. The Company’s effective income tax rate varies based upon an estimate of taxable earnings as well as on the mix of taxable earnings in the various states and countries in which we operate. Changes in the annual allocation and apportionment of the Company’s activity among these jurisdictions results in changes to the effective rate utilized to measure the Company’s deferred tax assets and liabilities.

As presented in the income tax reconciliation above, the tax provision recognized on the condensed consolidated statements of operations and comprehensive income was affected by state taxes, non-deductible expenses, share-based compensation expenses and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate.

In January 2020, Intermex Holdings II, Inc., the Company's parent company prior to the 2018 merger, was notified by the IRS that its 2017 federal income tax return was selected for examination. In August 2020, the examination was closed with no changes to the reported tax.

On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The Cares Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effects of COVID-19. The CARES Act provides various tax law changes in response to the COVID-19 pandemic, including increasing the ability to deduct interest expense, providing for deferral on tax deposits, and amending certain provisions of the previously enacted Tax Cuts and Jobs Act. After considering the provisions of the CARES Act, the Company determined that the CARES Act did not have a material effect on its annual effective tax rate and the income tax provision for the three and nine months ended on September 30, 2020.

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,015,000)
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,015,000)

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION, Narrative (Details)			3 Months Ended			9 Months Ended
	Nov. 03, 2020 USD ($) shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) installment $ / shares shares	Sep. 30, 2019 USD ($)	Jun. 26, 2020 shares
the “2020 Plan”
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)								3,400,000
Shares issued in period (in shares)			300,000
the “2018 Plan”
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)								400,000
Stock options vested (in shares)						700,000
the “2018 Plan” \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options term						10 years
Number of equal installments for options vesting \| installment						4
Award vesting period						1 year
Share-based compensation expense \| $				$ 700,000	$ 600,000	$ 1,900,000	$ 1,900,000
Outstanding stock options (in shares)		3,200,000	3,200,000	3,200,000		3,200,000
Unrecognized compensation expense \| $		$ 7,400,000	$ 7,400,000	$ 7,400,000		$ 7,400,000
Weighted-average period for recognition						2 years 6 months
Granted (in shares)						555,000
Forfeited RSUs (in shares)						244,792
the “2018 Plan” \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period						1 year
Stock options vested (in shares)						0
Share-based compensation expense \| $				89,100	$ 17,500	$ 300,000	$ 100,000
Unrecognized compensation expense \| $		$ 400,000	$ 400,000	$ 400,000		$ 400,000
Weighted-average period for recognition						1 year 8 months 26 days
Percentage of vesting of award						25.00%
Granted (in shares)						10,000.0
Forfeited RSUs (in shares)						0
Underwriting Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock newly issued (in shares)		4,900,000
Share price (in dollars per share) \| $ / shares		$ 13.50	$ 13.50	$ 13.50		$ 13.50
Underwriting Agreement \| Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares of common stock issuable at the option of underwriters (in shares)	700,000
Period of option for purchasing additional shares	30 days
Offering cost \| $	$ 500,000

ACCRUED AND OTHER LIABILITIES

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Commissions payable to sending agents	$	11,866	$	10,124
Accrued legal settlement (see Note 13)	2,925		3,250
Accrued salaries and benefits	2,413		2,374
Accrued bank charges	1,158		976
Accrued interest	12		17
Accrued legal fees	343		120
Accrued other professional fees	848		655
Accrued taxes	866		2,345
Deferred revenue loyalty program	2,602		2,495
Other	1,053		718
	$	24,086	$	23,074

The following table shows the changes in the deferred revenue loyalty program liability (in thousands):


Balance, December 31, 2019	$	2,495
Revenue deferred during the period	535
Revenue recognized during the period	(428)
Balance, September 30, 2020	$	2,602

REVENUES (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

The Company recognized revenues from contracts with customers for the three and nine months ended September 30, 2020 and 2019, as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Wire transfer and money order fees	$	82,890	$	72,710	$	223,171	$	202,202
Discounts and promotions	(244)		(242)		(637)		(792)
Wire transfer and money order fees, net	82,646		72,468		222,534		201,410
Foreign exchange gain, net	12,296		12,272		33,510		33,297
Other income	652		594		1,863		1,652
Total revenues	$	95,594	$	85,334	$	257,907	$	236,359

DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

DEBT

Debt consisted of the following (in thousands):


	September 30, 2020		December 31, 2019

Term loan	$	91,298	$	97,044

Less: Current portion of long-term debt (1)	(7,044)		(7,044)
Less: Debt origination costs	(1,914)		(2,377)
	$	82,340	$	87,623

(1)Current portion of long-term debt is net of debt origination costs of approximately $0.6 million both at September 30, 2020 and December 31, 2019.

The Company and certain of its domestic subsidiaries as borrowers (the “Loan Parties”) have a financing agreement (as amended, the “Credit Agreement”) with a group of banking institutions. The Credit Agreement provides for a $35 million revolving credit facility, a $90 million term loan facility and an up to $30 million incremental facility of which $12 million was utilized in the second quarter of 2019. The Credit Agreement also provides for the issuance of letters of credit, which would reduce availability under the revolving credit facility. The maturity date of the Credit Agreement is November 7, 2023. As of September 30, 2020 and December 31, 2019, there were no outstanding amounts drawn on the revolving credit facility.

Interest on the term loan facility and revolving credit facility under the Credit Agreement is determined by reference to either LIBOR or a “base rate”, in each case plus an applicable margin of 4.50% per annum for LIBOR loans or 3.50% per annum for base rate loans. The Company is also required to pay a fee on the unused portion of the revolving credit facility equal to 0.35% per annum. The effective interest rates for the nine months ended September 30, 2020 for the term loan facility and revolving credit facility were 5.93% and 0.99%, respectively.

The principal amount of the term loan facility under the Credit Agreement must be repaid in consecutive quarterly installments of 5.0% in year 1, 7.5% in years 2 and 3, and 10.0% in years 4 and 5, in each case on the last day of each quarter, which commenced in March 2019 with a final payment at maturity. The loans under the Credit Agreement may be prepaid at any time without premium or penalty.

The Credit Agreement contains covenants that limit the Company’s and its subsidiaries’ ability to, among other things, grant liens, incur additional indebtedness, make acquisitions or investments, dispose of certain assets, make dividends and distributions, change the nature of their businesses, enter into certain transactions with affiliates or amend the terms of material indebtedness.

The Credit Agreement also contains financial covenants that require the Company to maintain a quarterly minimum fixed charge coverage ratio of 1.25:1.00 and a quarterly maximum consolidated leverage ratio of 3.25:1.00.

The obligations under the Credit Agreement are guaranteed by the Company and certain domestic subsidiaries of the Company and secured by liens on substantially all of the assets of the Loan Parties, subject to certain exclusions and limitations.

On April 20, 2020, the Company received funds under the Paycheck Protection Program (the “Program”) in the amount of $3.5 million. Although the Company believes that it met all eligibility criteria for a loan under the Program at the time of its application, subsequent to receiving the funds, the Small Business Administration (“SBA”), in consultation with the Department of the Treasury (“Treasury”), provided additional guidance to address public, borrower and lender questions concerning the eligibility criteria under the Program. Based on this guidance provided by the SBA and Treasury, the Company returned the funds received under the Program on April 29, 2020.

COMMITMENTS AND CONTINGENCIES, Future Minimum Rental Payments (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 385
2021	1,374
2022	1,096
2023	882
2024	776
Thereafter	662
Total	$ 5,175

GOODWILL AND INTANGIBLE ASSETS, Narrative (Details)	9 Months Ended
GOODWILL AND INTANGIBLE ASSETS, Narrative (Details)	Sep. 30, 2020
Agent Relationships
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets amortization period, under accelerated method	15 years
Trade Names
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets amortization period, under accelerated method	15 years
Developed Technology Rights
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets amortization period, under accelerated method	15 years
Number of development years for state-of-the-art system	20 years
Other Intangible Assets
Finite-Lived Intangible Assets, Net [Abstract]
Intangible asset, useful life	10 years

REVENUES, Narrative (Details)	9 Months Ended
REVENUES, Narrative (Details)	Sep. 30, 2020 point obligation
Revenue from Contract with Customer [Abstract]
Point earned for each wire transfer processed \| point	1
Point expiration period for non completion of wire transfer transaction	180 days
Point expiration period after end of program	30 days
Number of performance obligation \| obligation	1

GOODWILL AND INTANGIBLE ASSETS, Amortization Expense Related to Intangible Assets (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 1,738
2021	5,161
2022	3,997
2023	2,989
2024	2,270
Thereafter	6,013
Net amortizable intangible assets	$ 22,168

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-37986
Entity Registrant Name	INTERNATIONAL MONEY EXPRESS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-4219082
Entity Address, Address Line One	9480 South Dixie Highway
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33156
City Area Code	305
Local Phone Number	671-8000
Title of 12(b) Security	Common stock ($0.0001 par value)
Trading Symbol	IMXI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,072,882
Entity Central Index Key	0001683695
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments

At September 30, 2020, future minimum rental payments required under operating leases for the remainder of 2020 and thereafter are as follows (in thousands):


2020	$	385
2021	1,374
2022	1,096
2023	882
2024	776
Thereafter	662
	$	5,175

BUSINESS AND ACCOUNTING POLICIES (Policies)	9 Months Ended
BUSINESS AND ACCOUNTING POLICIES (Policies)	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Accounting	The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant inter-company balances and transactions have been eliminated from the condensed consolidated financial statements. The Company’s interim condensed consolidated financial statements and related notes are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. Certain information and footnote disclosures required by GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Risks and Uncertainties	Risks and Uncertainties On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of the outbreak of a new strain of coronavirus (“COVID-19”) and the risks to the international community as the virus spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally and national, state and local governments in the jurisdictions where we operate and serve our customers imposed emergency restrictions to mitigate the spread of the virus. Starting in March 2020, governmental authorities took measures that restricted the normal course of operations of businesses and consumers. Although those restrictions were in place for most of the second and third quarter and affected the Company, sending and paying agents as well as consumers and their beneficiaries, those measures did not have a material adverse effect on the Company’s financial condition, results of operations and cash flows for the three and nine month periods ended September 30, 2020. The Company and our sending agents are considered essential businesses under current federal guidance; however, the Company’s business is dependent upon the willingness and ability of its employees, network of agents and consumers to conduct money transfer services and the ultimate effects of the economic disruption caused by the pandemic and responses thereto. Although the Company’s operations continued effectively despite social distancing and other measures taken in response to the pandemic, the ultimate impact of the COVID-19 pandemic on our results of operations and financial condition is dependent on future developments, including the duration of the pandemic and the related extent of its severity, as well as its impact on the economic conditions, particularly the level of unemployment of our customers, all of which remain uncertain and cannot be predicted at this time. If the global response to contain the COVID-19 pandemic escalates further or is unsuccessful, or if governmental decisions to ease pandemic related restrictions are ineffective, premature, counterproductive or reversed, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows.
Accounting Pronouncements	Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued guidance, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance requires that a lessee recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. This guidance is required to be adopted by the Company on January 1, 2022 and may be applied using either the earliest period adjustment method or the modified retrospective approach. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment. The amended standard simplifies how an entity tests goodwill by eliminating Step 2 of the goodwill impairment test related to measuring an impairment charge. Instead, impairment will be recorded for the amount that the carrying amount of a reporting unit exceeds its fair value. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amended standard requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customers in a software licensing arrangement. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, regarding the measurement of credit losses for certain financial instruments. The new standard replaces the incurred loss model with a current expected credit loss (“CECL”) model. The CECL model is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company is currently required to adopt the new standard on January 1, 2023. The Company is currently evaluating the impact this guidance will have on the condensed consolidated financial statements. The FASB issued guidance, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This accounting standards update provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This new guidance may be adopted by the Company no later than December 1, 2022, with early adoption permitted. The potential adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable allowance	$ 1,243	$ 759
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common shares, authorized (in shares)	230,000,000	230,000,000
Common shares, issued (in shares)	38,059,737	38,034,389
Common shares, outstanding (in shares)	38,059,737	38,034,389

BUSINESS AND ACCOUNTING POLICIES	9 Months Ended
BUSINESS AND ACCOUNTING POLICIES	Sep. 30, 2020
Accounting Policies [Abstract]
BUSINESS AND ACCOUNTING POLICIES	BUSINESS AND ACCOUNTING POLICIES International Money Express, Inc. (the “Company” or “us” or “we”) operates as a money transmitter between the United States of America (“U.S.”) and Canada to Mexico, Guatemala and other countries in Latin America, Africa and Asia through a network of authorized agents located in various unaffiliated retail establishments and 34 Company-operated stores throughout the U.S. and Canada. The condensed consolidated financial statements of the Company include Intermex Holdings, Inc., its wholly-owned indirect subsidiary, Intermex Wire Transfer, LLC (“LLC”), Intermex Wire Transfers de Guatemala, S.A. (“Intermex Guatemala”) - 99.8% owned by LLC, Intermex Wire Transfer de Mexico, S.A. and Intermex Transfers de Mexico, S.A. (“Intermex Mexico”) - 98% owned by LLC, Intermex Wire Transfer Corp. - 100% owned by LLC, Intermex Wire Transfer II, LLC - 100% owned by LLC and Canada International Transfers Corp. - 100% owned by LLC. Non-controlling interest in the results of operations of consolidated subsidiaries represents the minority stockholders’ share of the profit or loss of Intermex Mexico and Intermex Guatemala. The non-controlling interest asset and non-controlling interest in the portion of the profit or loss from operations of these subsidiaries were not recorded by the Company as they are considered immaterial. The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant inter-company balances and transactions have been eliminated from the condensed consolidated financial statements. The Company’s interim condensed consolidated financial statements and related notes are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. Certain information and footnote disclosures required by GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Risks and Uncertainties On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of the outbreak of a new strain of coronavirus (“COVID-19”) and the risks to the international community as the virus spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally and national, state and local governments in the jurisdictions where we operate and serve our customers imposed emergency restrictions to mitigate the spread of the virus. Starting in March 2020, governmental authorities took measures that restricted the normal course of operations of businesses and consumers. Although those restrictions were in place for most of the second and third quarter and affected the Company, sending and paying agents as well as consumers and their beneficiaries, those measures did not have a material adverse effect on the Company’s financial condition, results of operations and cash flows for the three and nine month periods ended September 30, 2020. The Company and our sending agents are considered essential businesses under current federal guidance; however, the Company’s business is dependent upon the willingness and ability of its employees, network of agents and consumers to conduct money transfer services and the ultimate effects of the economic disruption caused by the pandemic and responses thereto. Although the Company’s operations continued effectively despite social distancing and other measures taken in response to the pandemic, the ultimate impact of the COVID-19 pandemic on our results of operations and financial condition is dependent on future developments, including the duration of the pandemic and the related extent of its severity, as well as its impact on the economic conditions, particularly the level of unemployment of our customers, all of which remain uncertain and cannot be predicted at this time. If the global response to contain the COVID-19 pandemic escalates further or is unsuccessful, or if governmental decisions to ease pandemic related restrictions are ineffective, premature, counterproductive or reversed, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued guidance, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance requires that a lessee recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. This guidance is required to be adopted by the Company on January 1, 2022 and may be applied using either the earliest period adjustment method or the modified retrospective approach. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment. The amended standard simplifies how an entity tests goodwill by eliminating Step 2 of the goodwill impairment test related to measuring an impairment charge. Instead, impairment will be recorded for the amount that the carrying amount of a reporting unit exceeds its fair value. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amended standard requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customers in a software licensing arrangement. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, regarding the measurement of credit losses for certain financial instruments. The new standard replaces the incurred loss model with a current expected credit loss (“CECL”) model. The CECL model is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company is currently required to adopt the new standard on January 1, 2023. The Company is currently evaluating the impact this guidance will have on the condensed consolidated financial statements. The FASB issued guidance, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This accounting standards update provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This new guidance may be adopted by the Company no later than December 1, 2022, with early adoption permitted. The potential adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements.

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Prepaid Expense and Other Assets [Abstract]
Prepaid insurance	$ 431	$ 404
Prepaid fees	682	1,211
Notes receivable, net of allowance	705	648
Prepaid taxes	130	1,025
Other prepaid expenses and current assets	737	867
Prepaid expenses and other assets	$ 2,685	$ 4,155

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Tables)

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Schedule of Wire Transfer and Money Orders Payable

Wire transfers and money orders payable, net consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Wire transfers payable, net	$	18,995	$	16,058
Customer voided wires payable	13,888		10,937
Money orders payable	15,306		13,202
	$	48,189	$	40,197

REVENUES, Revenues from Contract with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Wire transfer and money order fees	$ 82,890	$ 72,710	$ 223,171	$ 202,202
Discounts and promotions	(244)	(242)	(637)	(792)
Revenues	95,594	85,334	257,907	236,359
Wire transfer and money order fees, net
Disaggregation of Revenue [Line Items]
Revenues	82,646	72,468	222,534	201,410
Foreign exchange gain, net
Disaggregation of Revenue [Line Items]
Revenues	12,296	12,272	33,510	33,297
Other income
Disaggregation of Revenue [Line Items]
Revenues	$ 652	$ 594	$ 1,863	$ 1,652

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHAREBasic earnings per share is calculated by dividing net income for the period by the weighted average number of common shares outstanding for the period. In computing dilutive earnings per share, basic earnings per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards, including common stock options and RSUs.

Below are basic and diluted earnings per share for the periods indicated (in thousands, except for share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

Net income for basic and diluted earnings per common share	$	9,498	$	4,038	$	24,164	$	14,268
Shares:
Weighted-average common shares outstanding – basic	38,050,610		37,984,316		38,040,339		37,230,831
Effect of dilutive securities:
RSUs	12,721		19,222		9,570		16,555
Stock options	589,376		283,164		196,520		100,975
Warrants	—		—		—		17,010
Weighted-average common shares outstanding – diluted	38,652,707		38,286,702		38,246,429		37,365,371

Earnings per common share – basic	$	0.25	$	0.11	$	0.64	$	0.38
Earnings per common share – diluted	$	0.25	$	0.11	$	0.63	$	0.38

As of September 30, 2020, there were 0.7 million options excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive.

As of September 30, 2019, there were 0.4 million options excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive. In April 2019, the Company executed a tender offer for all warrants, subsequent to which all warrants ceased to exist.

ACCRUED AND OTHER LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Accrued and Other Liabilities

Accrued and other liabilities consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Commissions payable to sending agents	$	11,866	$	10,124
Accrued legal settlement (see Note 13)	2,925		3,250
Accrued salaries and benefits	2,413		2,374
Accrued bank charges	1,158		976
Accrued interest	12		17
Accrued legal fees	343		120
Accrued other professional fees	848		655
Accrued taxes	866		2,345
Deferred revenue loyalty program	2,602		2,495
Other	1,053		718
	$	24,086	$	23,074

Changes in Deferred Revenue Loyalty Program Liability

The following table shows the changes in the deferred revenue loyalty program liability (in thousands):


Balance, December 31, 2019	$	2,495
Revenue deferred during the period	535
Revenue recognized during the period	(428)
Balance, September 30, 2020	$	2,602

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION

On September 30, 2020, the Company entered into an underwriting agreement with certain selling stockholders and several underwriters relating to the underwritten public offering of 4.9 million shares of the Company’s common stock at a price to the public of $13.50 per share. The closing of the offering occurred on October 5, 2020. Also, on November 4, 2020, the underwriters completed the purchase of 0.7 million additional shares of common stock at the same price as the initial shares under a 30-day option granted by certain of the selling stockholders. The Company did not receive any of the proceeds from the offering. It did, however, incur approximately $0.5 million in certain costs, which are included in other selling, general and administrative expenses in the condensed consolidated statement of operations and comprehensive income.

On June 26, 2020, at the 2020 Annual Meeting of Stockholders, the Company's stockholders approved the International Money Express, Inc. 2020 Omnibus Equity Compensation Plan (the “2020 Plan”), which provides for the granting of stock-based incentive awards, including stock options and restricted stock units (“RSUs”), to employees and independent directors of the Company. There are 3.4 million shares of the Company's common stock available for issuance under the 2020 Plan, including 0.4 million shares that were available for grant under the International Money Express, Inc. 2018 Omnibus Equity Compensation Plan (the “2018 Plan”). As of September 30, 2020, there are 0.3 million stock options granted under the 2020 Plan. The 2018 Plan was terminated effective June 26, 2020. Hereafter, we refer to the 2020 Plan and 2018 Plan together as the “Plans.”

The value of each option grant is estimated on the grant date using the Black-Scholes option pricing model (“BSM”). The option pricing model requires the input of certain assumptions, including the grant date fair value of our common stock, expected volatility, risk-free interest rates, expected term and expected dividend yield. To determine the grant date fair value of the Company’s common stock, we use the closing market price of our common stock at the grant date. We also use an expected volatility based on the historical volatility of the

Company's common stock and the “simplified” method for calculating the expected life of our stock options as the options are “plain vanilla” and we do not have any significant historical post-vesting activity. We have elected to account for forfeitures as they occur. The risk-free interest rates are obtained from publicly available U.S. Treasury yield curve rates.

Share-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The stock options issued under the Company’s Plans have 10-year terms and vest in four equal annual installments beginning one year after the date of the grant. During the nine months ended September 30, 2020, 0.7 million stock options vested. The Company recognized compensation expense for stock options of approximately $0.7 million and $0.6 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million for both the nine months ended September 30, 2020 and 2019, which are included in salaries and benefits in the condensed consolidated statements of operations and comprehensive income. As of September 30, 2020, there were 3.2 million outstanding stock options and unrecognized compensation expense of $7.4 million is expected to be recognized over a weighted-average period of 2.5 years.

A summary of the stock option activity under the Company’s Plans during the nine months ended September 30, 2020 is presented below:


	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2019	2,905,219	$	10.51	8.74	$	3.58
Granted	555,000	$	12.66		$	5.54
Exercised	(47,500)	$	9.98		$	3.45
Forfeited	(244,792)	$	11.66		$	3.89
Outstanding at September 30, 2020	3,167,927	$	10.81	8.24	$	3.90

Exercisable at September 30, 2020	1,239,443	$	10.11	7.88	$	3.48

The RSUs issued under the Company’s Plans to the Company’s independent directors vest on the one-year anniversary from the grant date and the RSUs issued under the 2020 Plan to the Company’s employees vest with respect to 25% of the shares on each of the first four anniversaries of the date of grant. The Company recognized compensation expense for RSUs of $89.1 thousand and $17.5 thousand for the three months ended September 30, 2020 and 2019, respectively, and $0.3 million and $0.1 million for the nine months ended September 30, 2020 and 2019, respectively, which is included in salaries and benefits in the condensed consolidated statements of operations and comprehensive income. During the nine months ended September 30, 2020, 10.0 thousand RSUs were granted to the Company's employees and no RSUs vested. There were no forfeited RSUs during the nine months ended September 30, 2020. As of September 30, 2020, there was $0.4 million of unrecognized compensation expense for the restricted stock units, which is expected to be recognized over a weighted-average period of 1.74 years.

ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables)

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

Accounts Receivable, Allowance for Credit Loss

Accounts receivable represent outstanding balances from sending agents for pending wire transfers or money orders from our customers. The outstanding balance consists of the following (in thousands):


	September 30, 2020		December 31, 2019
Accounts receivable	$	61,205	$	40,513
Allowance for credit losses	(1,243)		(759)
Accounts receivable, net	$	59,962	$	39,754

The changes in the allowance for credit losses related to accounts receivable and notes receivable are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning balance	$	1,350	$	1,236	$	1,236	$	1,290
Provision	320		619		1,421		1,171
Charge-offs	(120)		(589)		(1,338)		(1,317)
Recoveries	154		45		385		167
Ending Balance	$	1,704	$	1,311	$	1,704	$	1,311

The allowance for credit losses allocated by financial instrument category is as follows (in thousands):


	September 30, 2020		December 31, 2019
Accounts receivable	$	1,243	$	759
Notes receivable (1)	461		477
Allowance for credit losses	$	1,704	$	1,236

(1) This allowance relates to $1.3 million in notes receivable from sending agents as of both September 30, 2020 and December 31, 2019. The current portion of these notes amounted to $1.1 million and $1.0 million as of September 30, 2020 and December 31, 2019, respectively. The net current portion is included in prepaid expenses and other current assets (see Note 4) and the net long-term portion is included in other assets in the condensed consolidated balance sheets.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Revenues	$ 95,594	$ 85,334	$ 257,907	$ 236,359
Operating expenses:
Service charges from agents and banks	63,904	56,319	172,403	156,510
Salaries and benefits	8,084	7,612	22,512	22,806
Other selling, general and administrative expenses	6,336	9,788	16,827	20,850
Depreciation and amortization	2,698	3,179	8,079	9,486
Total operating expenses	81,022	76,898	219,821	209,652
Operating income	14,572	8,436	38,086	26,707
Interest expense	1,530	2,145	5,033	6,503
Income before income taxes	13,042	6,291	33,053	20,204
Income tax provision	3,544	2,253	8,889	5,936
Net income	9,498	4,038	24,164	14,268
Other comprehensive income (loss)	14	(9)	(127)	34
Comprehensive income	$ 9,512	$ 4,029	$ 24,037	$ 14,302
Earnings per common share:
Basic (in dollars per share)	$ 0.25	$ 0.11	$ 0.64	$ 0.38
Diluted (in dollars per share)	$ 0.25	$ 0.11	$ 0.63	$ 0.38
Weighted-average common shares outstanding:
Basic (in shares)	38,050,610	37,984,316	38,040,339	37,230,831
Diluted (in shares)	38,652,707	38,286,702	38,246,429	37,365,371
Wire transfer and money order fees, net
Revenues:
Revenues	$ 82,646	$ 72,468	$ 222,534	$ 201,410
Foreign exchange gain, net
Revenues:
Revenues	12,296	12,272	33,510	33,297
Other income
Revenues:
Revenues	$ 652	$ 594	$ 1,863	$ 1,652

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases

The Company is a party to leases for office space, warehouses and Company-operated store locations. Rent expense under all operating leases, included in other selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income, amounted to approximately $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively, and $1.6 million and $1.5 million for the nine months ended September 30, 2020 and 2019, respectively.

At September 30, 2020, future minimum rental payments required under operating leases for the remainder of 2020 and thereafter are as follows (in thousands):


2020	$	385
2021	1,374
2022	1,096
2023	882
2024	776
Thereafter	662
	$	5,175

Contingencies and Legal Proceedings

The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is the opinion of the Company’s management, based upon the information available at this time and the stage of the proceedings, that it is not possible to determine the probability of loss or estimate of damages, and therefore, the Company has not established a reserve for any of these proceedings, except for the matter related to a complaint filed under the Telephone Consumer Protection Act of 1991 (the “TCPA claim”) described below.

On May 30, 2019, Stuart Sawyer filed a putative class action complaint in the United States District Court for the Southern District of Florida asserting a claim under the TCPA, 47 U.S.C. § 227, et seq., based on allegations that since May 30, 2015, the Company had sent text messages to class members’ wireless telephones without their consent. Following a mediation held on October 7, 2019, the Company and the plaintiff entered into a term sheet providing the general terms for the settlement of the action, which was memorialized in a definitive Settlement Agreement on March 16, 2020 subject to subsequent Court approval. The Settlement Agreement provides for resolution of Mr. Sawyer's TCPA claims and the claims of a class of similarly situated individuals, as defined in the complaint, who received text messages from the Company during the period May 30, 2015 through October 7, 2019, and for the creation of a $3.25 million settlement fund that will be used to pay all class member claims, class counsel's fees and the costs of administering the settlement.

The Settlement Agreement also established procedures for the notification of claimants and the processing of claims. The settlement fund will be managed by a duly-appointed settlement administrator which will be authorized to communicate with class members, process claims and make payments from the fund in accordance with the terms of the Settlement Agreement and the final judgment in the case. No amount of the settlement fund will revert to the Company; instead, any unclaimed funds will be sent to a consumer advocacy organization approved by the Court.

The remaining balance of the amount payable under the Settlement Agreement of approximately $2.9 million is included in accrued and other liabilities in the condensed consolidated balance sheet as of September 30, 2020. The $2.9 million was paid to the settlement fund in October 2020.

The Company operates in all U.S. states, two U.S. territories and three other countries. Money transmitters and their agents are under regulation by state and federal laws. Violations may result in civil or criminal penalties or a prohibition from providing money transfer services in a particular jurisdiction. It is the opinion of the Company’s management, based on information available at this time, that the expected outcome of regulatory examinations will not have a material adverse effect on either the results of operations or financial condition of the Company.

Regulatory Requirements

Pursuant to applicable licensing laws, certain domestic subsidiaries of the Company are required to maintain minimum tangible net worth and liquid assets (eligible securities) to cover the amount outstanding of wire transfers and money orders payable. As of September 30, 2020, the Company’s subsidiaries were in compliance with these two requirements.

STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Option Activity

A summary of the stock option activity under the Company’s Plans during the nine months ended September 30, 2020 is presented below:


	Number of Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)	Weighted-Average Grant Date Fair Value
Outstanding at December 31, 2019	2,905,219	$	10.51	8.74	$	3.58
Granted	555,000	$	12.66		$	5.54
Exercised	(47,500)	$	9.98		$	3.45
Forfeited	(244,792)	$	11.66		$	3.89
Outstanding at September 30, 2020	3,167,927	$	10.81	8.24	$	3.90

Exercisable at September 30, 2020	1,239,443	$	10.11	7.88	$	3.48

ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

9 Months Ended

Sep. 30, 2020

Receivables [Abstract]

ACCOUNTS RECEIVABLE, NET OF ALLOWANCE

Accounts receivable represent outstanding balances from sending agents for pending wire transfers or money orders from our customers. The outstanding balance consists of the following (in thousands):


	September 30, 2020		December 31, 2019
Accounts receivable	$	61,205	$	40,513
Allowance for credit losses	(1,243)		(759)
Accounts receivable, net	$	59,962	$	39,754

The changes in the allowance for credit losses related to accounts receivable and notes receivable are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning balance	$	1,350	$	1,236	$	1,236	$	1,290
Provision	320		619		1,421		1,171
Charge-offs	(120)		(589)		(1,338)		(1,317)
Recoveries	154		45		385		167
Ending Balance	$	1,704	$	1,311	$	1,704	$	1,311

The allowance for credit losses allocated by financial instrument category is as follows (in thousands):


	September 30, 2020		December 31, 2019
Accounts receivable	$	1,243	$	759
Notes receivable (1)	461		477
Allowance for credit losses	$	1,704	$	1,236

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETSIntangible assets on the condensed consolidated balance sheets of the Company consist of goodwill, agent relationships, trade name, developed technology and other intangible assets. Agent relationships, trade name and developed technology are all amortized over 15 years using an accelerated method that correlates with the projected realization of the benefit. The agent relationships intangible represents the network of independent sending agents; trade name refers to the Intermex name, branded on all agent locations and well recognized in the market; and developed technology includes the state-of-the-art system that the Company has continued to develop and improve upon over the past 20 years. Other intangible assets primarily relate to the acquisition of Company-operated stores, which are amortized on a straight line basis over 10 years. The determination of our intangible fair values includes several assumptions that are subject to various

risks and uncertainties. Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties. See below for further discussion on impairment.

The following table presents the changes in goodwill and intangible assets (in thousands):


	Goodwill		Intangibles
Balance at December 31, 2019	$	36,260	$	27,381
Amortization expense	—		(5,213)
Balance at September 30, 2020	$	36,260	$	22,168

Amortization expense related to intangible assets for the next five years and thereafter is as follows (in thousands):


2020	$	1,738
2021	5,161
2022	3,997
2023	2,989
2024	2,270
Thereafter	6,013
	$	22,168

Due to the COVID-19 pandemic that has resulted in a deterioration in macro-economic conditions and increased stock market volatility, the Company performed a qualitative assessment of goodwill during both the second and third quarter of 2020 to determine whether a quantitative test was necessary. Although our fair value measurements include some significant inputs, such as the Company’s forecasted revenues and assumed turnover of agent locations, that may have or will be affected by the pandemic, we believe that as of September 30, 2020, the effects of the pandemic have not had a material negative effect on the Company’s financial condition, results of operations and cash flows. As a result, there are currently no indicators that the fair value of the Company’s goodwill is below its carrying amount based on our qualitative assessment. Therefore, we determined that a quantitative test was not necessary as of September 30, 2020.

For our finite-lived intangibles, we also assessed during both the second and third quarter of 2020 whether there were events or changes in circumstances that indicated that the carrying amounts of our intangible assets may not be recoverable. Similar to our goodwill assessment above, we believe that as of September 30, 2020, the effects of the COVID-19 pandemic have not had a material negative effect on the company’s financial condition, results of operations and cash flows. As a result, there are currently no indicators that could require an impairment test. Therefore, we determined that the carrying amounts of our intangibles are recoverable as of September 30, 2020.

We will continue to monitor this evolving pandemic to determine the need, if any, to further evaluate for impairment our goodwill and intangible assets.

DEBT, Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Less: Current portion of long-term debt	$ (7,044)	$ (7,044)
Less: Debt origination costs	(1,914)	(2,377)
Long-term debt, noncurrent	82,340	87,623
Debt origination costs, current	600	600
Term loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 91,298	$ 97,044

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Basic and Diluted Net Loss per Share

Below are basic and diluted earnings per share for the periods indicated (in thousands, except for share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

Net income for basic and diluted earnings per common share	$	9,498	$	4,038	$	24,164	$	14,268
Shares:
Weighted-average common shares outstanding – basic	38,050,610		37,984,316		38,040,339		37,230,831
Effect of dilutive securities:
RSUs	12,721		19,222		9,570		16,555
Stock options	589,376		283,164		196,520		100,975
Warrants	—		—		—		17,010
Weighted-average common shares outstanding – diluted	38,652,707		38,286,702		38,246,429		37,365,371

Earnings per common share – basic	$	0.25	$	0.11	$	0.64	$	0.38
Earnings per common share – diluted	$	0.25	$	0.11	$	0.63	$	0.38

DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt Instruments

Debt consisted of the following (in thousands):


	September 30, 2020		December 31, 2019

Term loan	$	91,298	$	97,044

Less: Current portion of long-term debt (1)	(7,044)		(7,044)
Less: Debt origination costs	(1,914)		(2,377)
	$	82,340	$	87,623

(1)Current portion of long-term debt is net of debt origination costs of approximately $0.6 million both at September 30, 2020 and December 31, 2019.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 24,164	$ 14,268
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,079	9,486
Share-based compensation	2,209	1,894
Provision for bad debt	1,421	1,171
Debt origination costs amortization	564	546
Deferred income tax provision, net	1,312	572
Loss on disposal of property and equipment	336	182
Total adjustments	13,921	13,851
Changes in operating assets and liabilities:
Accounts receivable	(21,694)	(19,224)
Prepaid wires, net	7,773	17,259
Prepaid expenses and other assets	433	933
Wire transfers and money orders payable, net	9,465	21,047
Accounts payable and accrued and other liabilities	(2,465)	9,013
Net cash provided by operating activities	31,597	57,147
Cash flows from investing activities:
Purchases of property and equipment	(2,770)	(3,817)
Acquisition of agent locations	0	(250)
Net cash used in investing activities	(2,770)	(4,067)
Cash flows from financing activities:
Borrowings under term loan	0	12,000
Repayments of term loan	(5,746)	(3,679)
Repayments under revolving loan, net	0	(30,000)
Debt origination costs	0	(240)
Proceeds from exercise of options	20	0
Cash paid in warrant exchange	0	(10,031)
Net cash used in financing activities	(5,726)	(31,950)
Effect of exchange rate changes on cash	(151)	30
Net increase in cash	22,950	21,160
Cash, beginning of period	86,117	73,029
Cash, end of period	109,067	94,189
Supplemental disclosure of cash flow information:
Cash paid for interest	4,475	5,780
Cash paid for income taxes	7,323	2,550
Supplemental disclosure of non-cash investing activity:
Agent business acquired in exchange for receivables	0	85
Supplemental disclosure of non-cash financing activity:
Issuance of common stock for cashless exercise of options	$ 130	$ 4

GOODWILL AND INTANGIBLE ASSETS, Changes in Goodwill and Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Goodwill
Goodwill, beginning balance	$ 36,260
Amortization expense	0
Goodwill, ending balance	36,260
Intangibles
Other intangible assets, beginning balance	27,381
Amortization expense	(5,213)
Other intangible assets, ending balance	$ 22,168

BUSINESS AND ACCOUNTING POLICIES (Details)	9 Months Ended
BUSINESS AND ACCOUNTING POLICIES (Details)	Sep. 30, 2020 store
Noncontrolling Interest [Line Items]
Number of company owned stores	34
Intermex Guatemala
Noncontrolling Interest [Line Items]
Ownership percentage	99.80%
Intermex Mexico
Noncontrolling Interest [Line Items]
Ownership percentage	98.00%
Intermex Wire Transfer Corp
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
Intermex Wire Transfer II, LLC
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%
Canada International Transfers Corp
Noncontrolling Interest [Line Items]
Ownership percentage	100.00%

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Wire transfers payable, net	$ 18,995	$ 16,058
Customer voided wires payable	13,888	10,937
Money orders payable	15,306	13,202
Total wire transfers and money orders payable, net	$ 48,189	$ 40,197

ACCOUNTS RECEIVABLE, NET OF ALLOWANCE, Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,350	$ 1,236	$ 1,236	$ 1,290
Provision	320	619	1,421	1,171
Charge-offs	(120)	(589)	(1,338)	(1,317)
Recoveries	154	45	385	167
Ending Balance	$ 1,704	$ 1,311	$ 1,704	$ 1,311

EARNINGS PER SHARE, Narrative (Details) - shares shares in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted loss per share (in shares)	0.7	0.4

PREPAID EXPENSES AND OTHER CURRENT ASSETS

9 Months Ended

Sep. 30, 2020

Prepaid Expense and Other Assets [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Prepaid insurance	$	431	$	404
Prepaid fees	682		1,211
Notes receivable, net of allowance	705		648
Prepaid taxes	130		1,025
Other prepaid expenses and current assets	737		867
	$	2,685	$	4,155

ACCOUNTS RECEIVABLE, NET OF ALLOWANCE, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable	$ 1,243	$ 759
Notes receivable	461	477
Allowance for credit losses	1,704	1,236
Notes receivable allowance	1,300	1,300
Short-term portion of notes receivable allowance	$ 1,100	$ 1,000

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Reconciliation of Tax Provision (Benefit)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Income before income taxes	$	13,042		$	6,291		$	33,053		$	20,204
US statutory tax rate	21		%	21		%	21		%	21		%
Income tax expense at statutory rate	2,739			1,321			6,941			4,243

State tax expense, net of federal	745			345			1,803			1,140
Foreign tax rates different from U.S. statutory rate	19			26			78			41
Non-deductible expenses	92			218			114			246
Credits	(7)			8			(10)			(1)
Other	(44)			335			(37)			267
Total tax provision	$	3,544		$	2,253		$	8,889		$	5,936

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET

Wire transfers and money orders payable, net consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Wire transfers payable, net	$	18,995	$	16,058
Customer voided wires payable	13,888		10,937
Money orders payable	15,306		13,202
	$	48,189	$	40,197

Customer voided wires payable consist of wire transfers that were not completed because the recipient did not collect the funds within 30 days and the sender has not claimed the funds and, therefore, are considered unclaimed property. Unclaimed property laws of each state in the United States in which we operate, the District of Columbia, and Puerto Rico require us to track certain information for all of our money remittances and payment instruments and, if the funds underlying such remittances and instruments are unclaimed at the end of an applicable statutory abandonment period, require us to remit the proceeds of the unclaimed property to the appropriate jurisdiction. Applicable statutory abandonment periods range from three to seven years.

ACCRUED AND OTHER LIABILITIES, Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Commissions payable to sending agents	$ 11,866	$ 10,124
Accrued legal settlement	2,925	3,250
Accrued salaries and benefits	2,413	2,374
Accrued bank charges	1,158	976
Accrued interest	12	17
Accrued legal fees	343	120
Accrued other professional fees	848	655
Accrued taxes	866	2,345
Deferred revenue loyalty program	2,602	2,495
Other	1,053	718
Total accrued and other liabilities	$ 24,086	$ 23,074