0001683695-21-000005 | 10-K | XBRL Viewer | International Money Express INC

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Mar. 05, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 307,492,116
Entity Common Stock, Shares Outstanding		38,218,156
Documents Incorporated by Reference	None.
Entity Central Index Key	0001683695
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash	$ 74,907	$ 86,117
Accounts receivable, net of allowance of $1,503 and $759, respectively	55,017	39,754
Prepaid wires, net	53,281	18,201
Prepaid expenses and other current assets	3,521	4,155
Total current assets	186,726	148,227
Property and equipment, net	13,021	13,282
Goodwill	36,260	36,260
Intangible assets, net	20,430	27,381
Deferred tax asset, net	0	741
Other assets	3,036	1,415
Total assets	259,473	227,306
Current liabilities:
Current portion of long-term debt, net	7,044	7,044
Accounts payable	12,771	13,401
Wire transfers and money orders payable, net	41,746	40,197
Accrued and other liabilities	22,380	23,074
Total current liabilities	83,941	83,716
Long-term liabilities:
Debt, net	80,579	87,623
Deferred tax liabilities, net	692	0
Total long-term liabilities	81,271	87,623
Commitments and contingencies
Stockholders’ equity:
Common stock $0.0001 par value; 230,000,000 shares authorized, 38,217,125 and 38,034,389 shares issued and outstanding as of December 31, 2020 and 2019, respectively	4	4
Additional paid-in capital	59,310	54,694
Retained earnings	34,960	1,176
Accumulated other comprehensive (loss) income	(13)	93
Total stockholders’ equity	94,261	55,967
Total liabilities and stockholders’ equity	$ 259,473	$ 227,306

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	May 31, 2019	Dec. 31, 2018	Jul. 26, 2018
Statement of Financial Position [Abstract]
Accounts receivable allowance	$ 1,503	$ 759		$ 842
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	230,000,000	230,000,000
Common shares, issued (in shares)	38,217,125	38,034,389
Common shares, outstanding (in shares)	38,217,125	38,034,389	38,000,000.0		36,200,000

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Revenues	$ 357,209	$ 319,601	$ 273,901
Operating expenses:
Service charges from agents and banks	238,597	212,670	182,471
Salaries and benefits	32,831	30,705	32,926
Other selling, general and administrative expenses	22,086	27,095	19,442
Transaction costs	0	0	10,319
Depreciation and amortization	10,828	12,689	15,671
Total operating expenses	304,342	283,159	260,829
Operating income	52,867	36,442	13,072
Interest expense	6,566	8,510	18,448
Income (loss) before income taxes	46,301	27,932	(5,376)
Income tax provision	12,517	8,323	1,868
Net income (loss)	33,784	19,609	(7,244)
Other comprehensive (loss) income	(106)	95	0
Comprehensive income (loss)	$ 33,678	$ 19,704	$ (7,244)
Earnings (loss) per common share:
Basic (in dollars per share)	$ 0.89	$ 0.52	$ (0.28)
Diluted (in dollars per share)	$ 0.88	$ 0.52	$ (0.28)
Weighted-average common shares outstanding:
Basic (in shares)	38,060,290	37,428,345	25,484,386
Diluted (in shares)	38,358,171	37,594,158	25,484,386
Wire transfer and money order fees, net
Revenues:
Revenues	$ 307,909	$ 273,081	$ 232,380
Foreign exchange gain, net
Revenues:
Revenues	46,763	44,268	39,765
Other income
Revenues:
Revenues	$ 2,537	$ 2,252	$ 1,756

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive (Loss) Income
Beginning Balance at Dec. 31, 2017	$ 35,902		$ 2	$ 46,076	$ (10,174)		$ (2)
Beginning balance (in shares) at Dec. 31, 2017			17,227,682
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201409Member
Net income (loss)	$ (7,244)				(7,244)
Net equity infusion from reverse recapitalization	9,989		$ 2	9,987
Net equity infusion from reverse recapitalization (in shares)			18,955,101
Issuance of common stock:
Share-based compensation	5,826			5,826
Ending Balance at Dec. 31, 2018	44,473	$ (1,015)	$ 4	61,889	(17,418)	$ (1,015)	(2)
Ending 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 (loss)	19,609				19,609
Issuance of common stock:
Exercise of stock options	227			227
Exercise of stock options (in shares)			30,349
Restricted stock units	0
Restricted stock units (in shares)			21,192
Share-based compensation	2,609			2,609
Adjustment from foreign currency translation, net	95						95
Ending Balance at Dec. 31, 2019	55,967		$ 4	54,694	1,176		93
Ending Balance (in shares) at Dec. 31, 2019			38,034,389
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	33,784				33,784
Issuance of common stock:
Exercise of stock options	1,379			1,379
Exercise of stock options (in shares)			163,783
Restricted stock units	0
Restricted stock units (in shares)			18,953
Share-based compensation	3,237			3,237
Adjustment from foreign currency translation, net	(106)						(106)
Ending Balance at Dec. 31, 2020	$ 94,261		$ 4	$ 59,310	$ 34,960		$ (13)
Ending Balance (in shares) at Dec. 31, 2020			38,217,125

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 33,784	$ 19,609	$ (7,244)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	10,828	12,689	15,671
Share-based compensation	3,237	2,609	5,826
Provision for bad debt	1,801	1,626	1,236
Debt origination costs amortization	760	734	4,448
Deferred income tax provision, net	1,433	1,863	191
Debt extinguishment costs	0	0	1,843
Loss on disposal of property and equipment	419	265	216
Total adjustments	18,478	19,786	29,431
Changes in operating assets and liabilities:
Accounts receivable	(17,080)	(5,655)	14,337
Prepaid wires, net	(35,598)	8,805	(19,000)
Prepaid expenses and other assets	(1,137)	(659)	(2,080)
Wire transfers and money orders payable, net	2,092	3,416	(11,899)
Accounts payable and accrued and other liabilities	(1,419)	7,232	16,293
Net cash (used in) provided by operating activities	(880)	52,534	19,838
Cash flows from investing activities:
Purchases of property and equipment	(4,062)	(6,469)	(5,331)
Acquisition of agent locations	0	(250)	(120)
Net cash used in investing activities	(4,062)	(6,719)	(5,451)
Cash flows from financing activities:
Borrowings under term loan	0	12,000	90,000
Repayments of term loan	(7,661)	(4,956)	(95,788)
(Repayments) borrowings under revolving loan, net	0	(30,000)	10,000
Debt origination costs	0	(240)	(3,487)
Debt extinguishment costs	0	0	(1,843)
Proceeds from reverse recapitalization	0	0	101,664
Cash consideration to Intermex shareholders	0	0	(101,659)
Cash paid in warrant exchange	0	(10,031)	0
Proceeds from exercise of options	1,501	283	0
Net cash used in financing activities	(6,160)	(32,944)	(1,113)
Effect of exchange rate changes on cash	(108)	217	(40)
Net (decrease) increase in cash	(11,210)	13,088	13,234
Cash, beginning of the year	86,117	73,029	59,795
Cash, end of the year	74,907	86,117	73,029
Supplemental disclosure of cash flow information:
Cash paid for interest	5,812	8,768	10,703
Cash paid for income taxes	11,140	4,870	1,495
Supplemental disclosure of non-cash investing activity:
Agent business acquired in exchange for receivables	0	85	0
Supplemental disclosure of non-cash financing activities:
Issuance of common stock for cashless exercise of options	130	21	0
Intermex transaction accruals settled by acquisition proceeds	0	0	9,062
Net assets acquired in the Merger	$ 0	$ 0	$ 922

BASIS OF PRESENTATION AND BUSINESS	12 Months Ended
BASIS OF PRESENTATION AND BUSINESS	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND BUSINESS	BASIS OF PRESENTATION AND BUSINESS International Money Express, Inc. (the “Company” or “us” or “we”) operates as a money transmitter between the United States of America (“United States” or “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. During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (“COVID-19”). The pandemic has had and continues to have a significant effect on economic conditions in the United States of America, as the efforts of federal, state, local and foreign governments to react to the public health crisis with mitigation measures have created and continue to cause significant uncertainties in the U.S. and global economy. The extent to which the COVID-19 pandemic affects our business, operations and financial results depends, and will continue to depend, on numerous evolving factors that we may not be able to accurately predict. 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 financial condition, results of operations and cash flows 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, 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 or counterproductive, the Company could experience a material adverse effect on its financial condition, results of operations and cash flows. The 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 in net assets of these subsidiaries, and the net income or loss attributable to the non-controlling interest, were not recorded by the Company as they are considered immaterial. The accompanying financial statements in this Annual Report on Form 10-K are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from these estimates.

Earnings (Loss) per Share

Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for each period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares and common share equivalents outstanding for each period. Diluted earnings (loss) per share reflects the potential dilution that could occur if outstanding stock options and warrants at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. Potential common shares are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss. Stock options, restricted stock units (“RSUs”) and warrants are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company’s common stock for the period.

Cash

Cash is comprised of deposits in U.S. and foreign banks. The Company recognizes interest income from its cash deposits on an accrual basis. The Company considers cash equivalents to be short term, highly liquid investments with original maturities of three months or less.

Concentrations

The Company maintains certain of its cash balances in various U.S. banks, which at times, may exceed federally insured limits. The Company has not incurred any losses on these accounts. In addition, the Company maintains various bank accounts in Mexico, Guatemala and Canada, which are not insured. During the year ended December 31, 2020, the Company has not incurred any material losses on these uninsured foreign bank accounts, and management believes it is not exposed to any significant credit risk regarding these accounts as it performs periodic reviews of the creditworthiness of the financial institutions the Company uses. Cash balances were as follows (in thousands):


	December 31,
	2020		2019
Cash in U.S. dollars in U.S. banks	$	72,566	$	80,736
Cash in foreign banks and foreign currency	2,332		5,372
Petty cash	9		9
	$	74,907	$	86,117

A substantial portion of our paying agents are concentrated in a few large banks and financial institutions and large retail chains. Our largest paying agent by volume accounted for approximately 18% of the Company’s total remittance volume for the years ended December 31, 2020 and 2019, primarily from the U.S. to Mexico.

Revenue Recognition

Revenues for wire transfer and money order fees are recognized at the time the transaction is processed. The Company acts as the principal for these transactions as the Company controls the service at all times prior to transferring the funds to the beneficiary, is primarily responsible for fulfilling the customer contracts, has the risk of loss and has the ability to establish transaction prices. Therefore, these fees are recognized on a gross basis equal to the full amount of the fee charged to the customer. These fees also vary by transaction primarily depending upon, the principal amount sent, the send and receive locations, as well as the respective currencies of the send and receive locations. Foreign exchange gain, net, which represents the difference between the exchange rate set by the Company and the rate realized, is recognized upon the disbursement of U.S. dollars to the entities from which the Company is acquiring foreign currency. Other income primarily represents revenues for technology services provided to the independent network of agents who utilize the Company’s technology in processing transactions and check cashing services, for which revenue is derived by a fee per transaction.

Refer to Note 4 for the discussion related to revenue recognition and additional information on the Company’s revenue.

Business Combinations

The Company accounts for its business combinations using the acquisition method, which requires that intangible assets be recognized apart from goodwill if they are contractual in nature or separately identifiable. Acquisitions are measured on the fair value of consideration exchanged and, if the consideration given is not cash, measurement is based on the fair value of the consideration given or the fair value of the assets acquired, whichever is more reliably measurable. The excess of cost of an acquired entity over the fair value of identifiable acquired assets and liabilities assumed is allocated to goodwill.

The valuation and allocation processes rely on significant assumptions made by management. In certain situations, the allocations of excess purchase price are based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when the Company receives updated information, including valuations and other analyses, which are completed within one year of the acquisition. Revisions to the fair values, which may be significant, are recorded when pending information is finalized, within one year from the acquisition date.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are recorded upon initiation of the wire transfer and are typically due to the Company within five days. The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its sending agents to make required payments. When preparing these estimates, management considers a number of factors, including the aging of a sending agent’s account, creditworthiness of specific sending agents, historical trends and other information. The Company reviews its allowance for credit losses policy periodically, reflecting current risks and changes in industry conditions and when necessary, will increase its allowance for credit losses and recognize a provision for bad debt, included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Accounts receivable that are more than 90 days past due are charged off against the allowance for credit losses.

Prepaid Wires, Net

Prepaid wires, net represents funds provided to certain paying agents in advance of a transaction, net of wires pending to be picked up by the beneficiary of the money transfer.

Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist primarily of prepaid expenses, notes receivable (see Note 6) and deferred financing costs. Interest income on notes receivable is recognized on a cash basis due at the end of each calendar month, which is when the interest payments are due from the majority of the notes receivable.

Wire Transfers Payable, Net

Wire transfers payable, net represent wires pending to be picked up by the beneficiary of the money transfer net of funds provided to certain paying agents in advance of a transaction.

Property and Equipment

Property and equipment, including leasehold improvements, are stated at cost, or the allocated fair value in purchase accounting, less accumulated depreciation and amortization. The costs of additions and betterments that substantially extend the useful life of an asset are capitalized and the expenditures for ordinary repairs and maintenance are expensed in the period incurred as part of other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lease term or the estimated useful life of the improvement, whichever is shorter. At the time depreciable assets are retired or otherwise disposed, the cost and the related accumulated depreciation of such assets are eliminated from the accounts and any gain or loss is recognized in the current period. The Company capitalizes costs incurred for the development of internal use computer software, which are depreciated over five years using the straight-line method.

Goodwill and Intangible Assets

Goodwill and Intangible assets result primarily from business combination acquisitions. Intangible assets include agent relationships, trade name, developed technology and other intangibles, all with finite lives. Other intangibles primarily relate to the acquisition of certain agent locations. Upon the acquisition, the purchase price is first allocated to identifiable assets and liabilities, including the trade name and other intangibles, with any remaining purchase price recorded as goodwill.

Goodwill is not amortized, rather, an impairment test is conducted on an annual basis, at the beginning of the fourth quarter, or more frequently if indicators of impairment are present. For purposes of the annual impairment test, management initially performs a qualitative assessment, which includes consideration of the economic, industry and market conditions in addition to our overall financial performance and the performance of these assets. If our qualitative assessment does not conclude that it is more likely than not that the estimated fair value of the reporting unit is greater than the carrying value, we perform a quantitative analysis. In a quantitative test, the fair value of a reporting unit is determined based on a discounted cash flow analysis. A discounted cash flow analysis requires us to make various assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on our long-term projections. Assumptions used in our impairment testing are consistent with our internal forecasts and operating plans. If the fair value of the reporting unit exceeds its carrying amount, there is no impairment. If not, we compare the implied fair value of goodwill with its carrying amount. To the extent the carrying amount exceeds its implied fair value, an impairment charge would be necessary.

The Company’s agent relationships, trade name and developed technology are amortized utilizing an accelerated method over their estimated useful lives of 15 years. Other intangible assets are amortized on a straight-line basis over a useful life of 10 years. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described below in “Impairment of Long-Lived Assets.”

Impairment of Long-Lived Assets

The Company evaluates long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to forecasted undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.

Debt Origination Costs

The Company incurred debt origination costs related to the credit agreement, consisting of a term loan and a revolving credit facility and amortizes these costs over the life of the related debt using the straight-line method, which approximates the effective interest method. The unamortized portion of debt origination costs related to the term loan is recorded on the consolidated balance sheets as an offset to the related debt, while deferred up-front commitment fees paid directly to the lender related to the revolving credit facility are recorded within other assets in the consolidated balance sheets. Amortization of debt origination costs is included as a component of interest expense in the consolidated statements of operations and comprehensive income (loss).

Advertising Costs

Advertising costs are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss) and are expensed as incurred. The Company incurred advertising costs of approximately $0.4 million, $1.2 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Income Taxes

The Company accounts for income taxes in accordance with GAAP which require, among other things, recognition of future tax benefits measured at enacted rates attributable to deductible temporary differences between financial statement and income tax bases of assets and liabilities and to tax net operating loss carryforwards to the extent that realization of said benefits is more likely than not.

The Company accounts for tax contingencies by assessing all material positions, including all significant uncertain positions, for all tax years that are open to assessment or challenge under tax statutes. Those positions that have only timing consequences are separately analyzed based on the recognition and measurement model provided in the tax guidance.

As required by the uncertain tax position guidance, the Company recognizes the financial statement benefit of a position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company applies the uncertain tax position guidance to all tax positions for which the statute of limitations remains open. The Company’s policy is to classify interest accrued as interest expense and penalties as other selling, general and administrative expenses.

Foreign subsidiaries of the Company are subject to taxes by local tax authorities.

Foreign Currency Translation and Transactions

The financial statements and transactions of the Company’s foreign operations are maintained in their functional currency, which is other than the U.S. dollar. Assets and liabilities are translated at current exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rate for each period. Translation adjustments, which result from the process of translating the financial statements of the Company’s foreign operations into U.S. dollars, are recorded as a component of accumulated other comprehensive income (loss).

Gains from foreign currency transactions amounted to approximately $217.6 thousand, $41.0 thousand and $29.8 thousand for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).

We manage foreign currency risk through the structure of the business and an active risk management process. We currently settle with our payers in Latin America primarily by entering into foreign exchange spot transactions with local and foreign currency providers (“counterparties”). The foreign currency exposure on our foreign exchange spot transactions is limited by the fact that all transactions are settled within two business days from trade date. Foreign currency fluctuations, however, may negatively affect our average exchange gain per transaction. The Company had open spot foreign exchange contracts for Mexico and Guatemala amounting to approximately $42.5 million and $2.5 million at December 31, 2020 and 2019, respectively.

In addition, included in wire transfers and money orders payable, net in our consolidated balance sheets as of December 31, 2020 and 2019, there are $7.6 million and $12.6 million, respectively, of wire transfers payable denominated in foreign currencies, primarily in Mexican pesos and Guatemalan quetzales.

Also, included in prepaid wires, net in our consolidated balance sheets as of December 31, 2020 and 2019, there are $50.1 million and $16.4 million, respectively, of prepaid wires denominated in foreign currencies, primarily in Mexican pesos and Guatemalan quetzales.

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss) and the foreign currency translation adjustment and is presented in the consolidated statements of operations and comprehensive income (loss).

Share-Based Compensation

The Company accounts for its share-based compensation expense related to stock options and RSUs under GAAP, which requires the measurement and recognition of compensation costs for all equity-based payment awards made to employees and directors based on estimated fair values. We have elected to account for forfeitures as they occur. See Note 14 for further discussion related to the Company’s share-based compensation plans.

Segments

The Company’s business is organized around one reportable segment that provides money transmittal services between the 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. This is based on the objectives of the business and how our chief operating decision maker, the CEO and President, monitors operating performance and allocates resources.

Accounting Pronouncements

The Financial Accounting Standards Board (“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 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 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 Company will adopt this guidance on a prospective basis and it is not expected to have a material impact on the consolidated financial statements.

The 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 using the modified retrospective approach. The Company is currently evaluating the impact this guidance will have on the 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 required to adopt the new guidance on January 1, 2023. The Company is currently evaluating the impact this guidance will have on the 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 consolidated financial statements.

Reclassifications

Certain reclassifications have been made to prior-year amounts to conform with current-year presentation.

FINTECH MERGER

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

FINTECH MERGER

FinTech Merger

On July 26, 2018, the Company (formerly known as Fintech Acquisition Corp. II) consummated the merger transaction (the “Merger”), by and among FinTech Acquisition Corp. II, a Delaware corporation (“FinTech”), FinTech II Merger Sub Inc., FinTech II Merger Sub 2 LLC, Intermex Holdings II, Inc. (“Intermex”) and SPC Intermex Representative LLC, which was accounted for as a reverse recapitalization.

Immediately prior to the Merger, FinTech’s shareholders exercised their right to redeem certain of their outstanding shares for cash, resulting in the redemption of 4.9 million shares of FinTech for gross redemption payments of $49.8 million. Subsequent to this redemption, there were 18.9 million outstanding shares. The aggregate consideration paid in the Merger by FinTech to the Intermex shareholders consisted of approximately (i) $102.0 million in cash and (ii) 17.2 million shares of FinTech common stock. In accounting for the reverse recapitalization, the net cash proceeds received from FinTech amounted to $5.0 thousand as shown in the table below (in thousands):


Cash balance available to Intermex prior to the consummation of the Merger	$	110,726
Less:
Intermex Merger costs paid from acquisition proceeds at closing	(9,062)
Cash consideration to Intermex shareholders	(101,659)
Net cash proceeds from reverse recapitalization	$	5

Cash balance available to Intermex prior to the consummation of the Merger	$	110,726
Less:
Cash consideration to Intermex shareholders	(101,659)
Other FinTech assets acquired and liabilities assumed in the Merger:
Prepaid expenses	76
Accrued liabilities	(136)
Deferred tax assets (1)	982
Net equity infusion from FinTech	$	9,989

(1) The Company acquired approximately $1.0 million of deferred tax assets from FinTech. These deferred tax assets relate to capitalized transaction costs incurred by FinTech prior to the Merger; therefore, they were recorded through APIC and are amortizable on the Company’s post-Merger tax returns over a period of 15 years.

Transaction Costs

Direct costs related to the Merger were expensed as incurred and included as “transaction costs” in the consolidated statements of operations and comprehensive income (loss). Transaction costs included all internal and external costs directly related to the Merger, consisting primarily of legal, consulting, accounting, advisory and financing fees and certain incentive bonuses. Transaction costs for the year ended December 31, 2018 amounted to $10.3 million and related specifically to the Merger. There were no transaction costs for the years ended December 31, 2020 and 2019.

REVENUE

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

On January 1, 2019, the Company adopted the new accounting standard, Revenue from Contracts with Customers, as amended, which modified the existing accounting standards for revenue recognition. The guidance establishes that an entity should recognize revenue to depict the transfer of promised goods or services, that is, the satisfaction of performance obligations, to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance establishes a five-step model to determine when revenue recognition is appropriate. The Company adopted the guidance using the modified retrospective approach recording the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings in the consolidated balance sheet, amounting to $1.0 million, net of tax, with a corresponding increase to deferred revenue liability, included within accrued and other liabilities in the consolidated balance sheet. In accordance with the modified retrospective approach, the 2018 comparative information was not restated and continues to be reported under the accounting standards in effect for that year.

The Company recognized in revenues from contracts with customers for the years ended December 31, 2020 and 2019, the following (in thousands):


	December 31,
	2020		2019
Wire transfer and money order fees	$	308,850	$	274,161
Discounts and promotions	(941)		(1,080)
Wire transfer and money order fees, net	307,909		273,081
Foreign exchange gain, net	46,763		44,268
Other income	2,537		2,252
Total revenues	$	357,209	$	319,601

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 loyalty program (see Note 10) 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.

Based on our assessment of the new standard, except for the loyalty program discussed above, we have determined that our revenues include only one performance obligation, which is to collect the consumer’s money and make funds available for payment, generally on the same day, to a designated recipient in the currency requested. As part of the adoption of ASC 606, the loyalty program reserve balance as of January 1, 2019 of $0.6 million, was credited to accumulated deficit as this became part of the beginning balance of the new deferred revenue loyalty program liability.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE

Accounts Receivable

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


	December 31,
	2020		2019
Accounts receivable	$	56,520	$	40,513
Allowance for credit losses	(1,503)		(759)
Accounts receivable, net	$	55,017	$	39,754

Notes Receivable

The Company had notes receivable, net of allowance for credit losses, from sending agents as follows (in thousands):


	December 31,
	2020		2019
Notes receivable, current	$	710	$	1,005
Allowance for credit losses	(244)		(357)
Net current	$	466	$	648

Notes receivable, long-term	$	816	$	311
Allowance for credit losses	(295)		(120)
Net long-term	$	521	$	191

The net current portion is included in prepaid expenses and other current assets, and the net long-term portion is included in other assets in the consolidated balance sheets. The notes have interest rates ranging from 0% to 15.5% per annum. At December 31, 2020 and 2019, there were $1.5 million and $1.3 million, respectively, of notes collateralized by personal guarantees from the sending agents and assets from their businesses in case of a default by the agent.

The maturities of notes receivable at December 31, 2020 are as follows (in thousands):


	Unpaid Principle Balance
Under 1 year	$	710
Between 1 and 2 years	459
Between 2 and 3 years	357
Total	$	1,526

Allowance for Credit Losses

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


	Year Ended December 31,
	2020		2019		2018
Beginning balance	$	1,236	$	1,290	$	990
Provision	1,801		1,626		1,236
Charge-offs	(1,491)		(1,972)		(1,438)
Recoveries	496		292		502
Ending Balance	$	2,042	$	1,236	$	1,290

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


	December 31,
	2020		2019		2018
Accounts receivable	$	1,503	$	759	$	842
Notes receivable	539		477		448
Allowance for credit losses	$	2,042	$	1,236	$	1,290

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 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):


	December 31,
	2020		2019
Prepaid insurance	$	465	$	404
Prepaid fees and services	1,452		1,609
Notes receivable, net of allowance	466		648
Assets pending settlement	218		214
Prepaid taxes	103		1,025
Prepaid expenses and current assets - other	817		255
	$	3,521	$	4,155

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):


	December 31,				Estimated Useful Life (in years)
	2020		2019
Computer software and equipment	$	22,337	$	19,630	3 to 5
Office improvements	1,122		1,225		5
Furniture and fixtures	506		500		7
	23,965		21,355
Less accumulated depreciation	(10,944)		(8,073)
	$	13,021	$	13,282

Computer software and equipment above includes equipment assigned and used by sending agents of approximately $11.0 million and $9.3 million at December 31, 2020 and 2019, respectively. Also, it includes internal use software of approximately $2.8 million and $2.4 million at December 31, 2020 and 2019, respectively.

Depreciation expense included in depreciation and amortization expense in the consolidated statements of operations and comprehensive income (loss) was approximately $3.9 million, $3.3 million and $3.2 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Repairs and maintenance expenses included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss) were approximately $2.0 million, $1.7 million and $1.4 million for the years ended December 31, 2020, 2019 and 2018, respectively.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill consists of the following (in thousands):


	December 31,
	2020		2019
Indefinite life:
Goodwill	$	36,260	$	36,260
Total indefinite life	$	36,260	$	36,260

Intangible assets consist of the following (in thousands):


	December 31, 2020						December 31, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Amortizable:
Agent relationships	$	40,500	$	(29,759)	$	10,741	$	40,500	$	(25,259)	$	15,241
Trade name	15,500		(7,964)		7,536		15,500		(6,308)		9,192
Developed technology	6,600		(5,234)		1,366		6,600		(4,550)		2,050
Other intangibles	1,155		(368)		787		1,155		(257)		898
Net amortizable intangible assets	$	63,755	$	(43,325)	$	20,430	$	63,755	$	(36,374)	$	27,381

Goodwill and the majority of intangible assets on the consolidated balance sheets of the Company were recognized from a prior acquisition. The fair value measurements were based on significant inputs, such as the Company’s forecasted revenues, assumed turnover of agent locations, obsolescence assumptions for technology, market discount and royalty rates. These inputs are based on information not observable in the market and represent Level 3 measurements within the fair value hierarchy. Trade name refers to the Intermex name, branded on all agent locations and well recognized in the market. This fair value was determined using the relief-from-royalty method, which is based on the Company’s expected revenues and a royalty rate estimated using comparable market data. The Company determined it was appropriate to assign a finite useful life of 15 years to the trade name to provide better matching of the amortization expense during the period of expected benefits.

The agent relationships intangible represents the network of independent sending agents. This intangible was valued using the excess earnings method, which was based on the Company’s forecasts and historical activity at agent locations in order to develop a turnover rate and expected useful life. Assuming a year-over-year location turnover rate of 17.4%, this resulted in an expected useful life for this intangible of 15 years. Developed technology includes the state-of-the-art system that the Company has continued to develop and improve upon over the past 20 years. This intangible was valued using the relief-from-royalty method based on the Company’s forecasted revenues, a royalty rate estimated using comparable market data, an expected obsolescence rate of 18.0% and an estimated useful life of 15 years. Other intangibles primarily relate to the acquisition of Company-operated stores, which are amortized on a straight-line basis over 10 years. The net book value of these intangibles was $0.8 million and $0.9 million at December 31, 2020 and 2019, respectively.

Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties. A change in the conditions, circumstances or strategy of the Company may result in a need to recognize an impairment charge.

As a result of the annual impairment tests, the Company determined that goodwill was not impaired as of December 31, 2020 and 2019.

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


	Goodwill		Intangible Assets
Balance at December 31, 2017	$	36,260	$	48,741
Acquisition of agent locations	—		120
Amortization expense	—		(12,466)
Balance at December 31, 2018	$	36,260	$	36,395
Acquisition of agent locations	—		335
Amortization expense	—		(9,349)
Balance at December 31, 2019	$	36,260	$	27,381
Amortization expense	—		(6,951)
Balance at December 31, 2020	$	36,260	$	20,430

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


2021	$	5,161
2022	3,997
2023	2,989
2024	2,270
2025	1,717
Thereafter	4,296
	$	20,430

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET

12 Months Ended

Dec. 31, 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):


	December 31,
	2020		2019
Wire transfers payable, net	$	11,806	$	16,058
Customer voided wires payable	13,374		10,937
Money orders payable	16,566		13,202
	$	41,746	$	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

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

ACCRUED AND OTHER LIABILITIES

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


	December 31,
	2020		2019
Commissions payable to sending agents	$	12,500	$	10,124
Accrued legal settlement (see Note 17)	—		3,250
Accrued salaries and benefits	2,957		2,374
Accrued bank charges	1,170		976
Accrued legal fees	75		120
Accrued other professional fees	826		655
Accrued taxes	1,276		2,345
Deferred revenue loyalty program	2,750		2,495
Other	826		735
	$	22,380	$	23,074

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


Balance, December 31, 2018	$	—
Adoption of ASC 606	1,976
Revenue deferred during the year	2,618
Revenue recognized during the year	(2,099)
Balance, December 31, 2019	2,495
Revenue deferred during the year	1,806
Revenue recognized during the year	(1,551)
Balance, December 31, 2020	$	2,750

DEBT

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

DEBT

Debt consisted of the following (in thousands):


	December 31,
	2020		2019
Term loan	$	89,383	$	97,044
	89,383		97,044
Less: Current portion of long term debt (1)	(7,044)		(7,044)
Less: Debt origination costs	(1,760)		(2,377)
	$	80,579	$	87,623

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

The Company and certain of its domestic subsidiaries as borrowers (the “Loan Parties”) entered into 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 December 31, 2020 and 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 year ended December 31, 2020 for the term loan facility and revolving credit facility were 5.78% and 1.00%, 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 balloon payment at maturity. The loans under the Credit Agreement may be prepaid at any time without premium or penalty.

The Credit Agreement 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 Credit Agreement also 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, change the nature of their businesses, enter into certain transactions with affiliates or amend the terms of material indebtedness.

In addition, the Credit Agreement establishes certain restrictions on payment of dividends or cash distributions other than for certain purposes, including the following: i) to pay cash dividends to the Company in an amount necessary to cover reasonable and customary corporate and operating expenses, ii) to purchase, redeem or otherwise acquire warrants, right or options on the Company’s common stock of an aggregate amount of up to $10 million plus the Available Amount (as defined in the Credit Agreement), iii) to repurchase the Company’s common stock from current or former employees in an aggregate amount of up to $5 million per calendar year, and iv) other restricted payments in an aggregate amount not to exceed $5 million plus the Available Amount.

As a result of the restrictions described above, among others, substantially all of the Company’s subsidiaries’ net assets as of December 31, 2020 and 2019 are considered restricted net assets.

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.

The scheduled annual payments of the term loan at December 31, 2020 are as follows (in thousands):


2021	$	7,661
2022	10,215
2023	71,507
	$	89,383

During 2019, the Company capitalized debt origination costs of approximately $0.2 million related to the incremental facility. During 2018, the Company capitalized debt origination costs of approximately $3.5 million related to the Credit Agreement. No debt origination costs were incurred during 2020.

The unamortized portion of debt origination costs totaled approximately $2.2 million and $2.9 million at December 31, 2020 and 2019, respectively. Amortization of debt origination costs is included as a component of interest expense in the consolidated statements of operations and comprehensive income (loss) and amounted to approximately $0.8 million, $0.7 million and $4.4 million for the years ended December 31, 2020, 2019, and 2018, respectively.

FAIR VALUE MEASUREMENTS	12 Months Ended
FAIR VALUE MEASUREMENTS	Dec. 31, 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 balances are representative of their fair values as these balances are comprised of deposits available on demand. The carrying amounts of 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

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSFrom January 1, 2018 through July 26, 2018, Intermex paid a monthly management fee of $65.0 thousand, plus reimbursement of expenses, to a related party for management services, which is included in other selling, general and administrative expenses on the Company’s consolidated statements of operations and comprehensive income (loss). On July 26, 2018, the management fee agreement with the related party was terminated, and a one-time termination fee of $1.6 million was included as part of transaction costs in the consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2018. There were no amounts payable to or receivable from related parties included in the consolidated balance sheets at December 31, 2020 and 2019.

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION

STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION

Common Stock and Secondary Offerings

On the Closing Date of the Merger, there were 36.2 million shares of the Company’s common stock outstanding and outstanding warrants to purchase approximately 9 million shares of common stock. As of the Closing Date, the former stockholders of Intermex owned approximately 48.3% and the former stockholders of FinTech owned approximately 51.7% of the combined company’s outstanding common stock. At December 31, 2020, the Company was authorized to issue 230.0 million shares of common stock and had approximately 38.2 million shares of common stock issued and outstanding at $0.0001 par value per common share.

In September 2020 and 2019, the Company conducted unwritten secondary public offerings in which certain selling stockholders sold an aggregate of 5.7 million shares of the Company’s common stock, at a price to the public of $13.50 and 6.0 million shares of the Company’s common stock, at a price to the public of $12.75 per share. The Company did not receive any of the proceeds from these offerings; however, it did incur approximately $0.5 million and $0.8 million, respectively, in certain costs, which are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).

Equity Warrants

Prior to the Merger, FinTech issued 8.8 million public warrants (“Public Warrants”) and 0.2 million private placement warrants (“Placement Warrants” and together with the Public Warrants, the “Warrants”). The Company assumed the Warrants upon the change of control event. As a result of the Merger, the Warrants issued by FinTech were no longer exercisable for shares of FinTech common stock but instead were exercisable for common stock of the Company. All other features of the Warrants remained unchanged. There were no cash obligations for the Company pertaining to these Warrants.

Each whole Warrant entitled the holder to purchase one share of the Company’s common stock at a price of $11.50 per share. The Warrants became exercisable 30 days after the completion of the Merger and were to expire 5 years after that date, or earlier upon redemption or liquidation.

All of the Warrants were eliminated through a tender offer and mandatory conversion that resulted in the issuance, between April and May of 2019 of approximately 1.8 million shares of common stock and the payment by the Company of approximately $10.0 million in cash in exchange for the Warrants tendered in the tender offer (the “Warrants Offer”). These transactions resulted in the Company having a total of approximately 38.0 million shares of common stock outstanding following the issuance. For the year ended December 31, 2019, the Company incurred approximately $0.9 million in professional and legal fees related to the Warrants Offer, which are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).

International Money Express, Inc. Omnibus Equity Compensation Plans

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” and together with the 2020 Plan, the “Plans”). As of December 31, 2020, there are 0.3 million stock options and 0.1 million RSUs granted under the 2020 Plan. Although outstanding awards under the 2018 Plan remain, the 2018 Plan was terminated upon effectiveness of the 2020 Plan.

Stock Options

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 highly subjective 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.

The Company used the following assumptions for the BSM to determine the fair value of the stock options:


	Year Ended December 31,
	2020			2019
Weighted-average grant date price of our common stock (per share)	$	12.94		$	13.83
Weighted-average expected volatility	45.2		%	28.6		%
Weighted-average risk-free interest rate	0.5		%	1.7		%
Expected term (in years)	6.25			6.25
Expected dividend yield	0.0		%	0.0		%

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 Plans have 10-year terms and vest in four equal annual installments beginning one year after the date of the grant. The Company recognized compensation expense for stock options of approximately $2.8 million, $2.6 million and $1.0 million for the years ended December 31, 2020, 2019 and 2018, respectively, which is included in salaries and benefits in the

consolidated statements of operations and comprehensive income (loss). As of December 31, 2020, there were 2.7 million outstanding stock options and unrecognized compensation expense of approximately $5.9 million is expected to be recognized over a weighted-average period of 2.2 years.

A summary of the stock option activity during the year ended December 31, 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	622,500	$	12.94		$	5.71
Exercised(1)	(218,383)	$	10.24		$	3.51
Forfeited	(594,434)	$	11.07		$	3.82
Outstanding at December 31, 2020	2,714,902	$	10.97	8.19	$	4.03

Exercisable at December 31, 2020(2)	1,137,451	$	10.17	7.64	$	3.50

(1) The aggregate intrinsic value of stock options exercised during the year ended December 31, 2020 was $1.3 million.

(2) The aggregate fair value of all vested/exercisable options outstanding as of December 31, 2020 was $17.7 million.

RSU Grants to Employees

The RSUs granted under the Plans to the Company’s employees generally vest in four equal annual installments beginning one year after the date of the grant. The Company recognized compensation expense for RSUs granted to employees of approximately $4.1 thousand for the year ended December 31, 2020, which is included in salaries and benefits in the consolidated statements of operations and comprehensive income (loss). There was no compensation expense recognized for RSUs granted to employees in 2019 and 2018. As of December 31, 2020, unrecognized compensation expense of approximately $0.1 million is expected to be recognized over a weighted-average period of 3.8 years.

A summary of the RSU grant activity to employees of the Company during the year ended December 31, 2020 is presented below:


	Number of RSU awards	Weighted-Average Grant Price
Nonvested at December 31, 2019	—	$	—
Granted	17,500	$	14.87
Forfeited	(10,000)	$	15.15
Nonvested at December 31, 2020	7,500	$	14.49

RSU Grants to Independent Directors

The RSUs granted under the Plans to the Company’s independent directors vest on the one-year anniversary from the grant date. The Company recognized compensation expense for the RSUs granted to independent directors of $0.4 million, $0.2 million and $0.1 million for the years ended December 31, 2020, 2019 and 2018, respectively, which is included in salaries and benefits in the consolidated statements of operations and comprehensive income (loss). As of December 31, 2020, there was $0.3 million of unrecognized compensation expense for the RSUs. There were no forfeitures of RSUs granted to independent directors for the year ended December 31, 2020.

A summary of the RSU grant activity to independent directors of the Company during the year ended December 31, 2020 is presented below:


	Number of RSU awards	Weighted-Average Grant Price
Nonvested at December 31, 2019	18,953	$	14.77
Granted	33,381	$	13.13
Vested	(18,953)	$	14.77
Nonvested at December 31, 2020	33,381	$	13.13

Under the 2020 Plan, effective October 1, 2020, the Lead Independent Director and Chairs of the Committees of the Board of Directors are granted, in aggregate, $64.0 thousand in awards of fully vested shares of the Company’s common stock, payable on a quarterly basis at the end of each quarter.

Incentive Units

Prior to the Merger, incentive units amounting to $4.7 million were granted to our employees, which became fully vested as a result of the Merger in 2018 and were immediately recognized as share-based compensation expense, which is included in salaries and benefits in the consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2018.

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

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

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


	Year Ended December 31,
	2020		2019		2018
Net income (loss) for basic and diluted income (loss) per common share	$	33,784	$	19,609	$	(7,244)
Shares:
Weighted-average common shares outstanding – basic	38,060,290		37,428,345		25,484,386
Effect of dilutive securities
RSUs	10,566		12,416		—
Stock options	287,315		140,640		—
Warrants	—		12,757		—
Weighted-average common shares outstanding – diluted	38,358,171		37,594,158		25,484,386

Earnings (loss) per common share - basic	$	0.89	$	0.52	$	(0.28)
Earnings (loss) per common share - diluted	$	0.88	$	0.52	$	(0.28)

As of December 31, 2020, there were 688.2 thousand options and 10.9 thousand RSUs excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive.

As of December 31, 2019, there were 471.8 thousand options and 19.0 thousand RSUs excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive. The Warrants were included in the calculation of the diluted earnings per share for the periods for which they were outstanding; the shares issued in exchange for the Warrants tendered in the Warrants Offer were included in the basic earnings per share beginning on the date the shares were issued. All Warrants ceased to exist after they were tendered in the Warrants Offer.

As of December 31, 2018, there were 2.9 million options, 9.0 million warrants to purchase shares of the Company’s common stock and 21.2 thousand RSUs excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive.

INCOME TAXES

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

The provision for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2020		2019		2018
Current tax provision:
Foreign	$	224	$	201	$	212
Federal	8,080		4,668		1,283
State	2,780		1,591		182
Total Current	11,084		6,460		1,677

Deferred tax provision:
Federal	1,089		1,290		93
State	344		573		98
Total deferred	1,433		1,863		191
Total tax provision:	$	12,517	$	8,323	$	1,868

A reconciliation between the income tax provision (benefit) at the U.S. statutory tax rate and the Company’s income tax provision on the consolidated statements of operations and comprehensive income (loss) is below (in thousands):


	Year Ended December 31,
	2020			2019			2018
Income (loss) before income taxes	$	46,301		$	27,932		$	(5,376)
U.S. statutory tax rate	21		%	21		%	21		%
Income tax expense (benefit) at statutory rate	9,723			5,866			(1,129)

State tax expense, net of federal	2,530			1,639			145
Foreign tax rates different from U.S. statutory rate	264			260			146
Non-deductible expenses	57			374			1,978
Write-off of transaction costs	—			—			321
Write-off of net operating losses	—			—			314
Change in tax rate	(9)			71			76
Other	(48)			113			17
Total tax provision	$	12,517		$	8,323		$	1,868

As presented in the income tax reconciliation above, the tax provision recognized on the consolidated statements of operations and comprehensive income (loss) was impacted by state taxes, non-deductible expenses, such as offering costs, share-based compensation expense, transaction costs and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate. The Company is subject to tax in various U.S. state jurisdictions. Changes in the annual allocation and apportionment of the Company’s activity amongst these state jurisdictions results in changes to the blended state rate utilized to measure the Company’s deferred tax assets and liabilities.

Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the book and tax bases of the Company’s assets and liabilities. The following table outlines the principal components of the deferred tax assets and liabilities (in thousands):


	December 31,
	2020		2019
Deferred tax assets:
U.S. federal and state net operating losses	$	5,529	$	6,385
Foreign net operating losses	165		73
Allowance for credit losses	483		275
Share-based compensation	1,468		897
Accrued compensation	487		279
Deferred revenue	725		653
Accrued TCPA claim	—		880
Total deferred tax assets	8,857		9,442

Deferred tax liabilities
Depreciation	(2,460)		(1,918)
Intangible amortization	(6,924)		(6,710)
Total deferred tax liabilities	(9,384)		(8,628)

Valuation allowance	(165)		(73)

Net deferred tax (liability) asset	$	(692)	$	741

At December 31, 2020, the Company had federal and state net operating loss carryforwards of approximately $22.7 million and $19.8 million, respectively, which are available to reduce future taxable income. With few exceptions, these net operating loss carryforwards will expire from 2029 through 2037. Utilization of the Company’s net operating loss carryforwards is now subject to an annual limitation under Internal Revenue Code Section 382. The Company has recorded a deferred tax asset for only the portion of its net operating loss carryforward that it expects to realize before expiration.

With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for the years prior to 2016. However, the Company has certain net operating loss carryforwards from tax years 2009 through 2017 that are subject to examination. As of December 31, 2020 and 2019, the Company did not have any amounts accrued for interest and penalties or recorded for uncertain tax positions.

In 2018, FinTech Acquisition Corp II was notified by the IRS that its 2017 federal income tax return was selected for examination. In 2019, the exam was closed with no adjustments to the reported tax. In January 2020, Intermex Holdings II, Inc., the Company’s parent company prior to the 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. As of December 31, 2020 and 2019, no amounts for tax, interest, or penalties have been paid or accrued as a result of this examination.

In accordance with criteria under FASB guidance, Income Taxes, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. After consideration of all evidence, both positive and negative, management has determined that no valuation allowance is required at December 31, 2020 or 2019 on the Company’s U.S. deferred tax assets. However, a valuation allowance of $165.0 thousand and $73.3 thousand as of December 31, 2020 and 2019, respectively, has been recorded on deferred tax assets associated with Canadian net operating loss carryforwards.

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 year ended December 31, 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 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 consolidated statements of operations and comprehensive income (loss), amounted to approximately $2.2 million, $2.1 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

In April 2018, the Company renegotiated its corporate lease to extend the term through November 2025. At December 31, 2020, future minimum rental payments required under operating leases for the next five years and thereafter are as follows (in thousands):


2021	$	1,476
2022	1,182
2023	895
2024	776
2025	662
Thereafter	—
	$	4,991

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. The litigation was settled under a definitive Settlement Agreement on March 16, 2020, subsequently approved by the Court. 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 fund will be managed by a duly-appointed settlement administrator which will be authorized to, among other things, 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 settlement fund and related legal expenses were paid in full in October 2020, and therefore, no remaining balance is included in accrued and other liabilities in the consolidated balance sheet as of December 31, 2020. The settlement amount and related legal fees amounted to $3.8 million out of which approximately $0.1 million and $3.7 million were incurred during the years ended December 31, 2020 and 2019, respectively, and are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).

The Company operates in 50 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

Certain domestic subsidiaries of the Company are subject to maintaining minimum tangible net worth and liquid assets (eligible securities) to cover the amount outstanding of wire transfers and money orders payable. As of December 31, 2020 and 2019, the Company’s subsidiaries were in compliance with these two requirements.

DEFINED CONTRIBUTION PLAN	12 Months Ended
DEFINED CONTRIBUTION PLAN	Dec. 31, 2020
Retirement Benefits [Abstract]
DEFINED CONTRIBUTION PLAN	DEFINED CONTRIBUTION PLANThe Company has a defined contribution plan available to most of its employees, where the Company makes contributions to the plan based on employee contributions. Total employer contribution expense included in salaries and benefits in the consolidated statements of operations and comprehensive income (loss) was approximately $127.4 thousand, $132.0 thousand and $115.2 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

INTERNATIONAL MONEY EXPRESS, INC. SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

INTERNATIONAL MONEY EXPRESS, INC.

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

As of December 31, 2020, International Money Express, Inc. is no longer considered a Smaller Reporting Company under Rule 12b-2 of the Exchange Act. As a result and commencing with the fiscal year ended December 31, 2020, the Company is required to present Schedule I – Condensed Financial Information of the Registrant.

The following includes the Condensed Balance Sheets for the parent company as of December 31, 2020 and 2019 and Condensed Statements of Operations and Comprehensive Income (Loss) and Condensed Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018.

INTERNATIONAL MONEY EXPRESS, INC.

CONDENSED BALANCE SHEETS

(PARENT COMPANY ONLY)

(in thousands, except for share data)


	December 31,
	2020		2019
ASSETS
Investment in subsidiary	$	94,211	$	55,948
Deferred tax asset	50		19
Total assets	$	94,261	$	55,967

STOCKHOLDERS’ EQUITY

Stockholders’ equity:
Common stock $0.0001 par value; 230,000,000 shares authorized, 38,217,125 and 38,034,389 shares issued and outstanding as of December 31, 2020 and 2019, respectively	$	4	$	4
Additional paid-in capital	59,310		54,694
Retained earnings	34,960		1,176
Accumulated other comprehensive (loss) income	(13)		93
Total stockholders’ equity	$	94,261	$	55,967

See Notes to Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

INTERNATIONAL MONEY EXPRESS, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(PARENT COMPANY ONLY)

(in thousands)


	Year Ended December 31,
	2020		2019		2018

Income:
Equity in earnings (loss) from consolidated subsidiary, net of tax	$	34,091	$	19,725	$	(7,180)
Total income (loss)	34,091		19,725		(7,180)

Expenses:
Shared-based compensation	404		192		88
Total expenses	404		192		88

Income (loss) before income taxes	33,687		19,533		(7,268)

Income tax benefit	(97)		(76)		(24)

Net income (loss)	33,784		19,609		(7,244)

Other comprehensive (loss) income	(106)		95		—

Comprehensive income (loss)	$	33,678	$	19,704	$	(7,244)

See Notes to Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

INTERNATIONAL MONEY EXPRESS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(PARENT COMPANY ONLY)

(in thousands)


	Year Ended December 31,
	2020		2019		2018

Cash flows from operating activities:
Net cash provided by operating activities	$	97	$	76	$	24

Cash flows from financing activities:
Intercompany transactions, net	(1,598)		9,672		(24)
Cash paid in warrant exchange	—		(10,031)		—
Proceeds from exercise of options	1,501		283		—
Net cash used in financing activities	(97)		(76)		(24)

Net change in cash	—		—		—

Cash, beginning of the year	—		—		—

Cash, end of the year	$	—	$	—	$	—

See Notes to Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

INTERNATIONAL MONEY EXPRESS, INC.

CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

International Money Express, Inc. (the “Parent”) is a holding company that conducts substantially all of its business operations through its subsidiaries. The parent company financial information has been derived from its consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes of International Money Express, Inc. and its subsidiaries (the “Company”) included in Item 8, Financial Statements and Supplementary Data, in this Annual Report on Form 10-K.

NOTE 2 – INCOME TAXES

The Parent files a consolidated United States federal income tax return and also a number of consolidated state income tax returns on behalf of its direct and indirect subsidiaries. In these circumstances, the Parent may be responsible for remitting income tax payments on behalf of the consolidated group. The Parent’s provision for income taxes has been computed as if it were a separate tax-paying entity. The Parent has not recorded deferred tax assets or liabilities associated with outside basis differences in its investment in subsidiary.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	The accompanying financial statements in this Annual Report on Form 10-K are presented on a consolidated basis and include the accounts of the Company and its majority-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”).
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from these estimates.
Earnings (Loss) per Share	Earnings (Loss) per Share Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for each period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares and common share equivalents outstanding for each period. Diluted earnings (loss) per share reflects the potential dilution that could occur if outstanding stock options and warrants at the presented dates are exercised and shares of restricted stock have vested, using the treasury stock method. Potential common shares are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss. Stock options, restricted stock units (“RSUs”) and warrants are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company’s common stock for the period.
Cash	Cash Cash is comprised of deposits in U.S. and foreign banks. The Company recognizes interest income from its cash deposits on an accrual basis. The Company considers cash equivalents to be short term, highly liquid investments with original maturities of three months or less.
Concentrations	ConcentrationsThe Company maintains certain of its cash balances in various U.S. banks, which at times, may exceed federally insured limits. The Company has not incurred any losses on these accounts. In addition, the Company maintains various bank accounts in Mexico, Guatemala and Canada, which are not insured. During the year ended December 31, 2020, the Company has not incurred any material losses on these uninsured foreign bank accounts, and management believes it is not exposed to any significant credit risk regarding these accounts as it performs periodic reviews of the creditworthiness of the financial institutions the Company uses.
Revenue Recognition	Revenue RecognitionRevenues for wire transfer and money order fees are recognized at the time the transaction is processed. The Company acts as the principal for these transactions as the Company controls the service at all times prior to transferring the funds to the beneficiary, is primarily responsible for fulfilling the customer contracts, has the risk of loss and has the ability to establish transaction prices. Therefore, these fees are recognized on a gross basis equal to the full amount of the fee charged to the customer. These fees also vary by transaction primarily depending upon, the principal amount sent, the send and receive locations, as well as the respective currencies of the send and receive locations. Foreign exchange gain, net, which represents the difference between the exchange rate set by the Company and the rate realized, is recognized upon the disbursement of U.S. dollars to the entities from which the Company is acquiring foreign currency. Other income primarily represents revenues for technology services provided to the independent network of agents who utilize the Company’s technology in processing transactions and check cashing services, for which revenue is derived by a fee per transaction.
Business Combinations	Business Combinations The Company accounts for its business combinations using the acquisition method, which requires that intangible assets be recognized apart from goodwill if they are contractual in nature or separately identifiable. Acquisitions are measured on the fair value of consideration exchanged and, if the consideration given is not cash, measurement is based on the fair value of the consideration given or the fair value of the assets acquired, whichever is more reliably measurable. The excess of cost of an acquired entity over the fair value of identifiable acquired assets and liabilities assumed is allocated to goodwill. The valuation and allocation processes rely on significant assumptions made by management. In certain situations, the allocations of excess purchase price are based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when the Company receives updated information, including valuations and other analyses, which are completed within one year of the acquisition. Revisions to the fair values, which may be significant, are recorded when pending information is finalized, within one year from the acquisition date.
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded upon initiation of the wire transfer and are typically due to the Company within five days. The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its sending agents to make required payments. When preparing these estimates, management considers a number of factors, including the aging of a sending agent’s account, creditworthiness of specific sending agents, historical trends and other information. The Company reviews its allowance for credit losses policy periodically, reflecting current risks and changes in industry conditions and when necessary, will increase its allowance for credit losses and recognize a provision for bad debt, included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Accounts receivable that are more than 90 days past due are charged off against the allowance for credit losses.
Prepaid Wires, Net	Prepaid Wires, Net Prepaid wires, net represents funds provided to certain paying agents in advance of a transaction, net of wires pending to be picked up by the beneficiary of the money transfer.
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses and other assets consist primarily of prepaid expenses, notes receivable (see Note 6) and deferred financing costs. Interest income on notes receivable is recognized on a cash basis due at the end of each calendar month, which is when the interest payments are due from the majority of the notes receivable.
Wire Transfers Payable, Net	Wire Transfers Payable, Net Wire transfers payable, net represent wires pending to be picked up by the beneficiary of the money transfer net of funds provided to certain paying agents in advance of a transaction.
Property and Equipment	Property and Equipment Property and equipment, including leasehold improvements, are stated at cost, or the allocated fair value in purchase accounting, less accumulated depreciation and amortization. The costs of additions and betterments that substantially extend the useful life of an asset are capitalized and the expenditures for ordinary repairs and maintenance are expensed in the period incurred as part of other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lease term or the estimated useful life of the improvement, whichever is shorter. At the time depreciable assets are retired or otherwise disposed, the cost and the related accumulated depreciation of such assets are eliminated from the accounts and any gain or loss is recognized in the current period. The Company capitalizes costs incurred for the development of internal use computer software, which are depreciated over five years using the straight-line method.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill and Intangible assets result primarily from business combination acquisitions. Intangible assets include agent relationships, trade name, developed technology and other intangibles, all with finite lives. Other intangibles primarily relate to the acquisition of certain agent locations. Upon the acquisition, the purchase price is first allocated to identifiable assets and liabilities, including the trade name and other intangibles, with any remaining purchase price recorded as goodwill. Goodwill is not amortized, rather, an impairment test is conducted on an annual basis, at the beginning of the fourth quarter, or more frequently if indicators of impairment are present. For purposes of the annual impairment test, management initially performs a qualitative assessment, which includes consideration of the economic, industry and market conditions in addition to our overall financial performance and the performance of these assets. If our qualitative assessment does not conclude that it is more likely than not that the estimated fair value of the reporting unit is greater than the carrying value, we perform a quantitative analysis. In a quantitative test, the fair value of a reporting unit is determined based on a discounted cash flow analysis. A discounted cash flow analysis requires us to make various assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on our long-term projections. Assumptions used in our impairment testing are consistent with our internal forecasts and operating plans. If the fair value of the reporting unit exceeds its carrying amount, there is no impairment. If not, we compare the implied fair value of goodwill with its carrying amount. To the extent the carrying amount exceeds its implied fair value, an impairment charge would be necessary. The Company’s agent relationships, trade name and developed technology are amortized utilizing an accelerated method over their estimated useful lives of 15 years. Other intangible assets are amortized on a straight-line basis over a useful life of 10 years. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described below in “Impairment of Long-Lived Assets.”
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company evaluates long-lived assets, including amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to forecasted undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. For long-lived assets held for sale, assets are written down to fair value, less cost to sell. Fair value is determined based on discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.
Debt Origination Costs	Debt Origination Costs The Company incurred debt origination costs related to the credit agreement, consisting of a term loan and a revolving credit facility and amortizes these costs over the life of the related debt using the straight-line method, which approximates the effective interest method. The unamortized portion of debt origination costs related to the term loan is recorded on the consolidated balance sheets as an offset to the related debt, while deferred up-front commitment fees paid directly to the lender related to the revolving credit facility are recorded within other assets in the consolidated balance sheets. Amortization of debt origination costs is included as a component of interest expense in the consolidated statements of operations and comprehensive income (loss).
Advertising Costs	Advertising CostsAdvertising costs are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss) and are expensed as incurred.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with GAAP which require, among other things, recognition of future tax benefits measured at enacted rates attributable to deductible temporary differences between financial statement and income tax bases of assets and liabilities and to tax net operating loss carryforwards to the extent that realization of said benefits is more likely than not. The Company accounts for tax contingencies by assessing all material positions, including all significant uncertain positions, for all tax years that are open to assessment or challenge under tax statutes. Those positions that have only timing consequences are separately analyzed based on the recognition and measurement model provided in the tax guidance. As required by the uncertain tax position guidance, the Company recognizes the financial statement benefit of a position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company applies the uncertain tax position guidance to all tax positions for which the statute of limitations remains open. The Company’s policy is to classify interest accrued as interest expense and penalties as other selling, general and administrative expenses. Foreign subsidiaries of the Company are subject to taxes by local tax authorities.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The financial statements and transactions of the Company’s foreign operations are maintained in their functional currency, which is other than the U.S. dollar. Assets and liabilities are translated at current exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rate for each period. Translation adjustments, which result from the process of translating the financial statements of the Company’s foreign operations into U.S. dollars, are recorded as a component of accumulated other comprehensive income (loss). Gains from foreign currency transactions amounted to approximately $217.6 thousand, $41.0 thousand and $29.8 thousand for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in other selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). We manage foreign currency risk through the structure of the business and an active risk management process. We currently settle with our payers in Latin America primarily by entering into foreign exchange spot transactions with local and foreign currency providers (“counterparties”). The foreign currency exposure on our foreign exchange spot transactions is limited by the fact that all transactions are settled within two business days from trade date. Foreign currency fluctuations, however, may negatively affect our average exchange gain per transaction.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and the foreign currency translation adjustment and is presented in the consolidated statements of operations and comprehensive income (loss).
Share-Based Compensation	Share-Based CompensationThe Company accounts for its share-based compensation expense related to stock options and RSUs under GAAP, which requires the measurement and recognition of compensation costs for all equity-based payment awards made to employees and directors based on estimated fair values. We have elected to account for forfeitures as they occur.
Segments	Segments The Company’s business is organized around one reportable segment that provides money transmittal services between the 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. This is based on the objectives of the business and how our chief operating decision maker, the CEO and President, monitors operating performance and allocates resources.
Accounting Pronouncements	Accounting Pronouncements The Financial Accounting Standards Board (“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 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 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 Company will adopt this guidance on a prospective basis and it is not expected to have a material impact on the consolidated financial statements. The 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 using the modified retrospective approach. The Company is currently evaluating the impact this guidance will have on the 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 required to adopt the new guidance on January 1, 2023. The Company is currently evaluating the impact this guidance will have on the 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 consolidated financial statements.
Reclassifications	Reclassifications Certain reclassifications have been made to prior-year amounts to conform with current-year presentation.
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 balances are representative of their fair values as these balances are comprised of deposits available on demand. The carrying amounts of 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Concentration of Credit Risk

Cash balances were as follows (in thousands):


	December 31,
	2020		2019
Cash in U.S. dollars in U.S. banks	$	72,566	$	80,736
Cash in foreign banks and foreign currency	2,332		5,372
Petty cash	9		9
	$	74,907	$	86,117

FINTECH MERGER (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Net Cash Proceeds Received in Reverse Recapitalization

In accounting for the reverse recapitalization, the net cash proceeds received from FinTech amounted to $5.0 thousand as shown in the table below (in thousands):


Cash balance available to Intermex prior to the consummation of the Merger	$	110,726
Less:
Intermex Merger costs paid from acquisition proceeds at closing	(9,062)
Cash consideration to Intermex shareholders	(101,659)
Net cash proceeds from reverse recapitalization	$	5

Cash balance available to Intermex prior to the consummation of the Merger	$	110,726
Less:
Cash consideration to Intermex shareholders	(101,659)
Other FinTech assets acquired and liabilities assumed in the Merger:
Prepaid expenses	76
Accrued liabilities	(136)
Deferred tax assets (1)	982
Net equity infusion from FinTech	$	9,989

REVENUE (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

The Company recognized in revenues from contracts with customers for the years ended December 31, 2020 and 2019, the following (in thousands):


	December 31,
	2020		2019
Wire transfer and money order fees	$	308,850	$	274,161
Discounts and promotions	(941)		(1,080)
Wire transfer and money order fees, net	307,909		273,081
Foreign exchange gain, net	46,763		44,268
Other income	2,537		2,252
Total revenues	$	357,209	$	319,601

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Accounts Receivable, Allowance for Credit Loss


	December 31,
	2020		2019
Accounts receivable	$	56,520	$	40,513
Allowance for credit losses	(1,503)		(759)
Accounts receivable, net	$	55,017	$	39,754

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


	Year Ended December 31,
	2020		2019		2018
Beginning balance	$	1,236	$	1,290	$	990
Provision	1,801		1,626		1,236
Charge-offs	(1,491)		(1,972)		(1,438)
Recoveries	496		292		502
Ending Balance	$	2,042	$	1,236	$	1,290

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


	December 31,
	2020		2019		2018
Accounts receivable	$	1,503	$	759	$	842
Notes receivable	539		477		448
Allowance for credit losses	$	2,042	$	1,236	$	1,290

Notes Receivable, Net of Allowance for Credit Loss

The Company had notes receivable, net of allowance for credit losses, from sending agents as follows (in thousands):


	December 31,
	2020		2019
Notes receivable, current	$	710	$	1,005
Allowance for credit losses	(244)		(357)
Net current	$	466	$	648

Notes receivable, long-term	$	816	$	311
Allowance for credit losses	(295)		(120)
Net long-term	$	521	$	191

Maturities of Notes Receivable

The maturities of notes receivable at December 31, 2020 are as follows (in thousands):


	Unpaid Principle Balance
Under 1 year	$	710
Between 1 and 2 years	459
Between 2 and 3 years	357
Total	$	1,526

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 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):


	December 31,
	2020		2019
Prepaid insurance	$	465	$	404
Prepaid fees and services	1,452		1,609
Notes receivable, net of allowance	466		648
Assets pending settlement	218		214
Prepaid taxes	103		1,025
Prepaid expenses and current assets - other	817		255
	$	3,521	$	4,155

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consists of the following (in thousands):


	December 31,				Estimated Useful Life (in years)
	2020		2019
Computer software and equipment	$	22,337	$	19,630	3 to 5
Office improvements	1,122		1,225		5
Furniture and fixtures	506		500		7
	23,965		21,355
Less accumulated depreciation	(10,944)		(8,073)
	$	13,021	$	13,282

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill and Intangible Assets

Goodwill consists of the following (in thousands):


	December 31,
	2020		2019
Indefinite life:
Goodwill	$	36,260	$	36,260
Total indefinite life	$	36,260	$	36,260

Intangible assets consist of the following (in thousands):


	December 31, 2020						December 31, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Amortizable:
Agent relationships	$	40,500	$	(29,759)	$	10,741	$	40,500	$	(25,259)	$	15,241
Trade name	15,500		(7,964)		7,536		15,500		(6,308)		9,192
Developed technology	6,600		(5,234)		1,366		6,600		(4,550)		2,050
Other intangibles	1,155		(368)		787		1,155		(257)		898
Net amortizable intangible assets	$	63,755	$	(43,325)	$	20,430	$	63,755	$	(36,374)	$	27,381

Changes in Goodwill and Intangible Assets

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


	Goodwill		Intangible Assets
Balance at December 31, 2017	$	36,260	$	48,741
Acquisition of agent locations	—		120
Amortization expense	—		(12,466)
Balance at December 31, 2018	$	36,260	$	36,395
Acquisition of agent locations	—		335
Amortization expense	—		(9,349)
Balance at December 31, 2019	$	36,260	$	27,381
Amortization expense	—		(6,951)
Balance at December 31, 2020	$	36,260	$	20,430

Amortization Expense Related to Intangible Assets

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


2021	$	5,161
2022	3,997
2023	2,989
2024	2,270
2025	1,717
Thereafter	4,296
	$	20,430

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Summary of Wire Transfer and Money Orders Payable, Net

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


	December 31,
	2020		2019
Wire transfers payable, net	$	11,806	$	16,058
Customer voided wires payable	13,374		10,937
Money orders payable	16,566		13,202
	$	41,746	$	40,197

ACCRUED AND OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accrued and Other Liabilities

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


	December 31,
	2020		2019
Commissions payable to sending agents	$	12,500	$	10,124
Accrued legal settlement (see Note 17)	—		3,250
Accrued salaries and benefits	2,957		2,374
Accrued bank charges	1,170		976
Accrued legal fees	75		120
Accrued other professional fees	826		655
Accrued taxes	1,276		2,345
Deferred revenue loyalty program	2,750		2,495
Other	826		735
	$	22,380	$	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, 2018	$	—
Adoption of ASC 606	1,976
Revenue deferred during the year	2,618
Revenue recognized during the year	(2,099)
Balance, December 31, 2019	2,495
Revenue deferred during the year	1,806
Revenue recognized during the year	(1,551)
Balance, December 31, 2020	$	2,750

DEBT (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Summary of Debt

Debt consisted of the following (in thousands):


	December 31,
	2020		2019
Term loan	$	89,383	$	97,044
	89,383		97,044
Less: Current portion of long term debt (1)	(7,044)		(7,044)
Less: Debt origination costs	(1,760)		(2,377)
	$	80,579	$	87,623

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

Scheduled Annual Payments of Term Loan

The scheduled annual payments of the term loan at December 31, 2020 are as follows (in thousands):


2021	$	7,661
2022	10,215
2023	71,507
	$	89,383

- 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

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+ Details

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Fair Value of Stock Options and Performance Shares

The Company used the following assumptions for the BSM to determine the fair value of the stock options:


	Year Ended December 31,
	2020			2019
Weighted-average grant date price of our common stock (per share)	$	12.94		$	13.83
Weighted-average expected volatility	45.2		%	28.6		%
Weighted-average risk-free interest rate	0.5		%	1.7		%
Expected term (in years)	6.25			6.25
Expected dividend yield	0.0		%	0.0		%

Stock Option Activity

A summary of the stock option activity during the year ended December 31, 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	622,500	$	12.94		$	5.71
Exercised(1)	(218,383)	$	10.24		$	3.51
Forfeited	(594,434)	$	11.07		$	3.82
Outstanding at December 31, 2020	2,714,902	$	10.97	8.19	$	4.03

Exercisable at December 31, 2020(2)	1,137,451	$	10.17	7.64	$	3.50

(1) The aggregate intrinsic value of stock options exercised during the year ended December 31, 2020 was $1.3 million.

(2) The aggregate fair value of all vested/exercisable options outstanding as of December 31, 2020 was $17.7 million.

Summary of RSU Grant Activity

A summary of the RSU grant activity to employees of the Company during the year ended December 31, 2020 is presented below:


	Number of RSU awards	Weighted-Average Grant Price
Nonvested at December 31, 2019	—	$	—
Granted	17,500	$	14.87
Forfeited	(10,000)	$	15.15
Nonvested at December 31, 2020	7,500	$	14.49

A summary of the RSU grant activity to independent directors of the Company during the year ended December 31, 2020 is presented below:


	Number of RSU awards	Weighted-Average Grant Price
Nonvested at December 31, 2019	18,953	$	14.77
Granted	33,381	$	13.13
Vested	(18,953)	$	14.77
Nonvested at December 31, 2020	33,381	$	13.13

EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Basic and Diluted Earnings (Loss) per Share

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


	Year Ended December 31,
	2020		2019		2018
Net income (loss) for basic and diluted income (loss) per common share	$	33,784	$	19,609	$	(7,244)
Shares:
Weighted-average common shares outstanding – basic	38,060,290		37,428,345		25,484,386
Effect of dilutive securities
RSUs	10,566		12,416		—
Stock options	287,315		140,640		—
Warrants	—		12,757		—
Weighted-average common shares outstanding – diluted	38,358,171		37,594,158		25,484,386

Earnings (loss) per common share - basic	$	0.89	$	0.52	$	(0.28)
Earnings (loss) per common share - diluted	$	0.88	$	0.52	$	(0.28)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

The provision for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2020		2019		2018
Current tax provision:
Foreign	$	224	$	201	$	212
Federal	8,080		4,668		1,283
State	2,780		1,591		182
Total Current	11,084		6,460		1,677

Deferred tax provision:
Federal	1,089		1,290		93
State	344		573		98
Total deferred	1,433		1,863		191
Total tax provision:	$	12,517	$	8,323	$	1,868

Reconciliation Between Income Tax Provision (Benefit) at US Statutory Tax Rate


	Year Ended December 31,
	2020			2019			2018
Income (loss) before income taxes	$	46,301		$	27,932		$	(5,376)
U.S. statutory tax rate	21		%	21		%	21		%
Income tax expense (benefit) at statutory rate	9,723			5,866			(1,129)

State tax expense, net of federal	2,530			1,639			145
Foreign tax rates different from U.S. statutory rate	264			260			146
Non-deductible expenses	57			374			1,978
Write-off of transaction costs	—			—			321
Write-off of net operating losses	—			—			314
Change in tax rate	(9)			71			76
Other	(48)			113			17
Total tax provision	$	12,517		$	8,323		$	1,868

Deferred Tax Assets Liabilities

The following table outlines the principal components of the deferred tax assets and liabilities (in thousands):


	December 31,
	2020		2019
Deferred tax assets:
U.S. federal and state net operating losses	$	5,529	$	6,385
Foreign net operating losses	165		73
Allowance for credit losses	483		275
Share-based compensation	1,468		897
Accrued compensation	487		279
Deferred revenue	725		653
Accrued TCPA claim	—		880
Total deferred tax assets	8,857		9,442

Deferred tax liabilities
Depreciation	(2,460)		(1,918)
Intangible amortization	(6,924)		(6,710)
Total deferred tax liabilities	(9,384)		(8,628)

Valuation allowance	(165)		(73)

Net deferred tax (liability) asset	$	(692)	$	741

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments

At December 31, 2020, future minimum rental payments required under operating leases for the next five years and thereafter are as follows (in thousands):


2021	$	1,476
2022	1,182
2023	895
2024	776
2025	662
Thereafter	—
	$	4,991

BASIS OF PRESENTATION AND BUSINESS (Details)	Dec. 31, 2020 store
Noncontrolling Interest [Line Items]
Number of company-operated 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%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) store businessDay segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Significant Accounting Policies [Line Items]
Losses, uninsured amount	$ 0
Losses, uninsured amount on foreign bank accounts	0
Advertising costs	400,000	$ 1,200,000	$ 1,800,000
Gains (losses) from foreign currency transactions	$ 217,600	41,000.0	$ 29,800
Foreign currency transactions, settlement, threshold business days \| businessDay	2
Amount of foreign exchange contracts opened	$ 42,500,000	2,500,000
Wire transfers payable, net in in foreign currencies	7,600,000	12,600,000
Prepaid wires, net in in foreign currencies	$ 50,100,000	$ 16,400,000
Number of reportable segments \| segment	1
Number of company-operated stores \| store	34
Maximum
Significant Accounting Policies [Line Items]
Number of days recorded upon initiation of wire transfer	5 days
Agent relationships
Significant Accounting Policies [Line Items]
Intangible assets, estimated useful life	15 years
Trade name
Significant Accounting Policies [Line Items]
Intangible assets, estimated useful life	15 years
Developed technology
Significant Accounting Policies [Line Items]
Intangible assets, estimated useful life	15 years
Other intangibles
Significant Accounting Policies [Line Items]
Intangible assets, estimated useful life	10 years
Computer Equipment
Significant Accounting Policies [Line Items]
Property and equipment, estimated useful life	5 years
Remittance Volume \| Paying Agent Concentration Risk
Significant Accounting Policies [Line Items]
Concentration risk percentage	18.00%	18.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Cash in U.S. dollars in U.S. banks	$ 72,566	$ 80,736
Cash in foreign banks and foreign currency	2,332	5,372
Petty cash	9	9
Cash	$ 74,907	$ 86,117

FINTECH MERGER - Narrative (Details) - USD ($) shares in Millions		12 Months Ended
	Jul. 26, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Cash consideration to Intermex shareholders	$ 101,659,000	$ 0	$ 0	$ 101,659,000
Transaction cost		0	0	10,319,000
FinTech
Business Acquisition [Line Items]
Redemption of shares (in shares)	4.9
Gross redemption payments	$ 49,800,000
Number of outstanding shares subsequent to redemption (in shares)	18.9
Cash consideration to Intermex shareholders	$ 102,000,000.0
Consideration paid in equity (in shares)	17.2
Transaction cost		$ 0	$ 0	$ 10,300,000

FINTECH MERGER - Net Cash Proceeds Received in Reverse Recapitalization (Details) - USD ($)		12 Months Ended
	Jul. 26, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Cash balance available to Intermex prior to the consummation of the Merger		$ 94,261,000	$ 55,967,000	$ 44,473,000	$ 35,902,000
Cash consideration to Intermex shareholders	$ (101,659,000)	$ 0	$ 0	(101,659,000)
Net equity infusion from FinTech				$ 9,989,000
Intermex
Business Acquisition [Line Items]
Cash balance available to Intermex prior to the consummation of the Merger	110,726,000
Intermex Merger costs paid from acquisition proceeds at closing	(9,062,000)
Cash consideration to Intermex shareholders	(101,659,000)
FinTech
Business Acquisition [Line Items]
Cash consideration to Intermex shareholders	(102,000,000.0)
Net cash proceeds from reverse recapitalization	5,000.0
Prepaid expenses	76,000
Accrued liabilities	(136,000)
Deferred tax assets	982,000
Net equity infusion from FinTech	$ 9,989,000
Amortization post-merger tax returns period	15 years

REVENUE - Narrative (Details) $ in Thousands	12 Months Ended
REVENUE - Narrative (Details) $ in Thousands	Dec. 31, 2020 USD ($) point state	Dec. 31, 2019 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Disaggregation of Revenue [Line Items]
Cumulative effect of adoption to retained earnings	$ 94,261	$ 55,967		$ 44,473	$ 35,902
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 completion of program	30 days
Number of performance obligation \| state	1
Loyalty program reserve balance			$ 600
Cumulative Effect, Period of Adoption, Adjustment
Disaggregation of Revenue [Line Items]
Cumulative effect of adoption to retained earnings				(1,015)
Retained Earnings (Accumulated Deficit)
Disaggregation of Revenue [Line Items]
Cumulative effect of adoption to retained earnings	$ 34,960	$ 1,176		(17,418)	$ (10,174)
Retained Earnings (Accumulated Deficit) \| Cumulative Effect, Period of Adoption, Adjustment
Disaggregation of Revenue [Line Items]
Cumulative effect of adoption to retained earnings				$ (1,015)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

REVENUE - Revenues from Contract with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Wire transfer and money order fees	$ 308,850	$ 274,161
Discounts and promotions	(941)	(1,080)
Revenues	357,209	319,601	$ 273,901
Wire transfer and money order fees, net
Disaggregation of Revenue [Line Items]
Revenues	307,909	273,081	232,380
Foreign exchange gain, net
Disaggregation of Revenue [Line Items]
Revenues	46,763	44,268	39,765
Other income
Disaggregation of Revenue [Line Items]
Revenues	$ 2,537	$ 2,252	$ 1,756

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

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+ Details

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE - Accounts Receivable Outstanding Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable	$ 56,520	$ 40,513
Allowance for credit losses	(1,503)	(759)
Accounts receivable, net	$ 55,017	$ 39,754

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE - Notes Receivable, Net of Allowance for Credit Loss (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Notes receivable, current	$ 710	$ 1,005
Allowance for credit losses	(244)	(357)
Net current	466	648
Notes receivable, long-term	816	311
Allowance for credit losses	(295)	(120)
Net long-term	$ 521	$ 191

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes collateralized	$ 1.5	$ 1.3
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate on notes receivable	0.00%
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate on notes receivable	15.50%

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE - Maturities of Notes Receivable (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Receivables [Abstract]
Under 1 year	$ 710
Between 1 and 2 years	459
Between 2 and 3 years	357
Total	$ 1,526

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,236	$ 1,290	$ 990
Provision	1,801	1,626	1,236
Charge-offs	(1,491)	(1,972)	(1,438)
Recoveries	496	292	502
Ending Balance	$ 2,042	$ 1,236	$ 1,290

ACCOUNTS RECEIVABLE AND NOTES RECEIVABLE, NET OF ALLOWANCE - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Accounts receivable	$ 1,503	$ 759	$ 842
Notes receivable	539	477	448
Allowance for credit losses	$ 2,042	$ 1,236	$ 1,290	$ 990

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Prepaid Expense and Other Assets [Abstract]
Prepaid insurance	$ 465	$ 404
Prepaid fees and services	1,452	1,609
Notes receivable, net of allowance	466	648
Assets pending settlement	218	214
Prepaid taxes	103	1,025
Prepaid expenses and current assets - other	817	255
Prepaid expenses and other current assets	$ 3,521	$ 4,155

PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property and Equipment [Abstract]
Property and equipment, gross	$ 23,965	$ 21,355
Less accumulated depreciation	(10,944)	(8,073)
Property and equipment, net	13,021	13,282
Computer software and equipment
Property and Equipment [Abstract]
Property and equipment, gross	$ 22,337	19,630
Computer software and equipment \| Minimum
Property and Equipment [Abstract]
Estimated useful lives	3 years
Computer software and equipment \| Maximum
Property and Equipment [Abstract]
Estimated useful lives	5 years
Office improvements
Property and Equipment [Abstract]
Property and equipment, gross	$ 1,122	1,225
Estimated useful lives	5 years
Furniture and fixtures
Property and Equipment [Abstract]
Property and equipment, gross	$ 506	$ 500
Estimated useful lives	7 years

PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 3.9	$ 3.3	$ 3.2
Repairs and maintenance expenses	2.0	1.7	$ 1.4
Computer software and equipment
Property, Plant and Equipment [Line Items]
Equipment maintained at locations of agents	11.0	9.3
Software and Software Development Costs
Property, Plant and Equipment [Line Items]
Equipment maintained at locations of agents	$ 2.8	$ 2.4

GOODWILL AND INTANGIBLE ASSETS - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Indefinite life:
Goodwill	$ 36,260	$ 36,260	$ 36,260	$ 36,260
Total indefinite life	36,260	36,260
Amortizable:
Gross Carrying Value	63,755	63,755
Accumulated Amortization	(43,325)	(36,374)
Net Carrying Value	20,430	27,381
Agent relationships
Amortizable:
Gross Carrying Value	40,500	40,500
Accumulated Amortization	(29,759)	(25,259)
Net Carrying Value	10,741	15,241
Trade name
Amortizable:
Gross Carrying Value	15,500	15,500
Accumulated Amortization	(7,964)	(6,308)
Net Carrying Value	7,536	9,192
Developed technology
Amortizable:
Gross Carrying Value	6,600	6,600
Accumulated Amortization	(5,234)	(4,550)
Net Carrying Value	1,366	2,050
Other intangibles
Amortizable:
Gross Carrying Value	1,155	1,155
Accumulated Amortization	(368)	(257)
Net Carrying Value	$ 787	$ 898

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Net book value of intangibles	$ 20,430,000	$ 27,381,000
Amortization expense	$ 0	0	$ 0
Trade name
Finite-Lived Intangible Assets [Line Items]
Expected useful life	15 years
Net book value of intangibles	$ 7,536,000	9,192,000
Agent relationships
Finite-Lived Intangible Assets [Line Items]
Expected useful life	15 years
Location turnover rate	17.40%
Net book value of intangibles	$ 10,741,000	15,241,000
Developed technology
Finite-Lived Intangible Assets [Line Items]
Expected useful life	15 years
Number of development years for state-of-the-art system	20 years
Obsolescence rate	18.00%
Net book value of intangibles	$ 1,366,000	2,050,000
Other intangibles
Finite-Lived Intangible Assets [Line Items]
Expected useful life	10 years
Net book value of intangibles	$ 787,000	$ 898,000

GOODWILL AND INTANGIBLE ASSETS - Changes in Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill, beginning balance	$ 36,260,000	$ 36,260,000	$ 36,260,000
Acquisition of agent locations		0	0
Amortization expense	0	0	0
Goodwill, ending balance	36,260,000	36,260,000	36,260,000
Intangible Assets
Intangible assets, beginning balance	27,381,000	36,395,000	48,741,000
Acquisition of agent locations		335,000	120,000
Amortization expense	(6,951,000)	(9,349,000)	(12,466,000)
Intangible assets, ending balance	$ 20,430,000	$ 27,381,000	$ 36,395,000

GOODWILL AND INTANGIBLE ASSETS - Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 5,161
2022	3,997
2023	2,989
2024	2,270
2025	1,717
Thereafter	4,296
Net Carrying Value	$ 20,430	$ 27,381

WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Wire transfers payable, net	$ 11,806	$ 16,058
Customer voided wires payable	13,374	10,937
Money orders payable	16,566	13,202
Total wire transfers and money orders payable, net	$ 41,746	$ 40,197

ACCRUED AND OTHER LIABILITIES - Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accrued Liabilities and Other Liabilities [Abstract]
Commissions payable to sending agents	$ 12,500	$ 10,124
Accrued legal settlement	0	3,250
Accrued salaries and benefits	2,957	2,374
Accrued bank charges	1,170	976
Accrued legal fees	75	120
Accrued other professional fees	826	655
Accrued taxes	1,276	2,345
Deferred revenue loyalty program	2,750	2,495	$ 0
Other	826	735
Accrued and other liabilities	$ 22,380	$ 23,074

ACCRUED AND OTHER LIABILITIES - Changes in Deferred Revenue Loyalty Program Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Movement in Deferred Revenue [Roll Forward]
Beginning balance	$ 2,495	$ 0
Revenue deferred during the year	1,806	2,618
Revenue recognized during the year	(1,551)	(2,099)
Ending balance	$ 2,750	2,495
Cumulative Effect, Period of Adoption, Adjustment
Movement in Deferred Revenue [Roll Forward]
Beginning balance		$ 1,976

DEBT - Summary of Debt (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt, gross	$ 89,383,000	$ 97,044,000
Less: Current portion of long-term debt	(7,044,000)	(7,044,000)
Less: Debt origination costs	(1,760,000)	(2,377,000)
Long-term debt, noncurrent	80,579,000	87,623,000
Debt origination costs, current	600,000	600,000
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	89,383,000	97,044,000
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 0	$ 0

DEBT - Narrative (Details)			3 Months Ended	12 Months Ended
DEBT - Narrative (Details)	Apr. 20, 2020 USD ($)	Nov. 07, 2018 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Long-term debt, gross				$ 89,383,000	$ 97,044,000
Funds received under the Paycheck Protection Program	$ 3,500,000
Capitalized debt issuance costs				0
Unamortized portion of debt origination costs				2,200,000	2,900,000
Amortization of debt issuance costs				$ 760,000	734,000	$ 4,448,000
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				$ 89,383,000	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%
Capitalized debt issuance costs						$ 3,500,000
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]
Aggregate principal amount		$ 90,000,000
Effective interest rate				5.78%
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				1.00%
Debt instrument, covenant, repurchase of warrants or options threshold				$ 10,000,000
Debt instrument, covenant, repurchase of common stock threshold				5,000,000
Debt instrument, covenant, restricted payment threshold				$ 5,000,000
Credit Agreement \| Incremental Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 30,000,000
Repayments under revolving loan, net			$ 12,000,000
Capitalized debt issuance costs					$ 200,000

DEBT - Scheduled Annual Payments of Term Loan (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt, gross	$ 89,383	$ 97,044
MC Credit Partners
Debt Instrument [Line Items]
2021	7,661
2022	10,215
2023	71,507
Long-term debt, gross	$ 89,383

RELATED PARTY TRANSACTIONS (Details) - USD ($)		7 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jul. 26, 2018	Jul. 26, 2018	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Monthly management fees plus reimbursement expense		$ 65,000.0
Termination fee	$ 1,600,000
Amounts payable to related parties			$ 0	$ 0
Amounts receivable from related parties			$ 0	$ 0

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION - Narrative (Details)	1 Months Ended		2 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) $ / shares shares	May 31, 2019 USD ($) shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) installment $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($)	Jun. 26, 2020 shares	Jul. 26, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares, outstanding (in shares)			38,000,000.0	38,217,125	38,217,125	38,034,389			36,200,000
Warrants to purchase common stock (in shares)									9,000,000
Common stock, shares authorized (in shares)				230,000,000	230,000,000	230,000,000
Common shares, issued (in shares)				38,217,125	38,217,125	38,034,389
Common stock, par value (in dollars per share) \| $ / shares				$ 0.0001	$ 0.0001	$ 0.0001
Number of shares of common stock called by each warrant (in shares)				1	1
Warrant exercise price (in dollars per share) \| $ / shares				$ 11.50	$ 11.50
Warrants exercisable period on completion of business combination					30 days
Warrants expiration period					5 years
Warrant exchange (in shares)			1,800,000
Cash paid in warrant exchange \| $			$ 10,000,000.0		$ 0	$ 10,031,000	$ 0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price to redeem warrants (in dollars per share) \| $ / shares				$ 12.94	$ 12.94	$ 13.83
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shared-based compensation \| $							4,700,000
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)								3,400,000
2020 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units Issued (in shares)				300,000
2020 Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units Issued (in shares)				100,000
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)								400,000
2018 and 2020 Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited RSUs (in shares)					594,434
2018 and 2020 Plans \| 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
Options vesting period					1 year
Shared-based compensation \| $					$ 2,800,000	$ 2,600,000	1,000,000.0
Options non-vested (in shares)				2,700,000	2,700,000
Unrecognized compensation expense \| $				$ 5,900,000	$ 5,900,000
Weighted-average non-vested period					2 years 2 months 12 days
2018 and 2020 Plans \| RSUs \| Share-based Payment Arrangement, Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal installments for options vesting \| installment					4
Options vesting period					1 year
Shared-based compensation \| $					$ 4,100	0	0
Unrecognized compensation expense \| $				100,000	$ 100,000
Weighted-average non-vested period					3 years 9 months 18 days
2018 and 2020 Plans \| RSUs \| Share-based Payment Arrangement, Independent Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period					1 year
Shared-based compensation \| $					$ 400,000	200,000	$ 100,000
Unrecognized compensation expense \| $				$ 300,000	$ 300,000
Forfeited RSUs (in shares)					0
2018 and 2020 Plans \| RSUs \| Share-based Payment Arrangement, Lead Independent Director and Chairs of Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate value of fully vested RSUs \| $					$ 64,000.0
Tender Offer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Professional and legal fees \| $						$ 900,000
Underwriting Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock newly issued (in shares)	5,700,000	6,000,000.0
Stock price to redeem warrants (in dollars per share) \| $ / shares	$ 13.50	$ 12.75
Proceeds from unwritten secondary public offerings \| $	$ 0	$ 0
Offering costs \| $	$ 500,000	$ 800,000
Intermex
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding common stock owned									48.30%
FinTech
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding common stock owned									51.70%
FinTech \| Public Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued (in shares)					8,800,000
FinTech \| Placement Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued (in shares)					200,000

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION - Fair Value of Stock Options (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date price of our common stock (in dollars per share)	$ 12.94	$ 13.83
Weighted-average expected volatility	45.20%	28.60%
Risk-free interest rate	0.50%	1.70%
Expected term (in years)	6 years 3 months	6 years 3 months
Expected dividend yield	0.00%	0.00%

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Weighted-Average Grant Date Fair Value
Exercisable at end of period (in dollars per share)	$ 3.50
2018 and 2020 Plans
Number of Options
Outstanding at beginning of period (in shares)	2,905,219
Granted (in shares)	622,500
Exercised (in shares)	(218,383)
Forfeited (in shares)	(594,434)
Outstanding at end of period (in shares)	2,714,902	2,905,219
Exercisable at end of period (in shares)	1,137,451
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 10.51
Granted (in dollars per share)	12.94
Exercised (in dollars per share)	10.24
Forfeited (in dollars per share)	11.07
Outstanding at end of period (in dollars per share)	10.97	$ 10.51
Exercisable at end of period (in dollars per share)	$ 10.17
Weighted-Average Remaining Contractual Term (Years)
Weighted average remaining contractual term, outstanding	8 years 2 months 8 days	8 years 8 months 26 days
Weighted average remaining contractual term, Exercisable	7 years 7 months 20 days
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 3.58
Granted (in dollars per share)	5.71
Exercised (in dollars per share)	3.51
Forfeited (in dollars per share)	3.82
Outstanding at end of period (in dollars per share)	$ 4.03	$ 3.58
Aggregate intrinsic value of stock options exercised	$ 1.3
Aggregate fair value of vested/exercisable options	$ 17.7

STOCKHOLDER'S EQUITY AND SHARE-BASED COMPENSATION - Summary of RSU Grant Activity (Details) - RSUs - 2018 and 2020 Plans	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Share-based Payment Arrangement, Employee
Number of RSU awards
Nonvested, beginning balance (in shares) \| shares	0
Granted (in shares) \| shares	17,500
Vested (in shares) \| shares	(10,000)
Nonvested, ending balance (in shares) \| shares	7,500
Weighted-Average Grant Price
Nonvested, beginning balance (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	14.87
Vested (in dollars per share) \| $ / shares	15.15
Nonvested, ending balance (in dollars per share) \| $ / shares	$ 14.49
Share-based Payment Arrangement, Independent Directors
Number of RSU awards
Nonvested, beginning balance (in shares) \| shares	18,953
Granted (in shares) \| shares	33,381
Vested (in shares) \| shares	(18,953)
Nonvested, ending balance (in shares) \| shares	33,381
Weighted-Average Grant Price
Nonvested, beginning balance (in dollars per share) \| $ / shares	$ 14.77
Granted (in dollars per share) \| $ / shares	13.13
Vested (in dollars per share) \| $ / shares	14.77
Nonvested, ending balance (in dollars per share) \| $ / shares	$ 13.13

EARNINGS (LOSS) PER SHARE - Basic and Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share, Basic and Diluted [Abstract]
Net income (loss) for basic and diluted income (loss) per common share	$ 33,784	$ 19,609	$ (7,244)
Shares:
Weighted-average common shares outstanding - basic (in shares)	38,060,290	37,428,345	25,484,386
Weighted-average common shares outstanding - diluted (in shares)	38,358,171	37,594,158	25,484,386
Earnings (loss) per common share - basic (in dollars per share)	$ 0.89	$ 0.52	$ (0.28)
Earnings (loss) per common share - diluted (in dollars per share)	$ 0.88	$ 0.52	$ (0.28)
RSUs
Shares:
Effect of dilutive securities (in shares)	10,566	12,416	0
Stock options
Shares:
Effect of dilutive securities (in shares)	287,315	140,640	0
Warrants
Shares:
Effect of dilutive securities (in shares)	0	12,757	0

EARNINGS (LOSS) PER SHARE - Narrative (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock options
Earnings Per Share [Abstract]
Securities excluded from computation of diluted loss per share (in shares)	688,200	471,800	2,900,000
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted loss per share (in shares)	688,200	471,800	2,900,000
RSUs
Earnings Per Share [Abstract]
Securities excluded from computation of diluted loss per share (in shares)	10,900	19,000.0	21,200
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted loss per share (in shares)	10,900	19,000.0	21,200
Warrants
Earnings Per Share [Abstract]
Securities excluded from computation of diluted loss per share (in shares)			9,000,000.0
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted loss per share (in shares)			9,000,000.0

INCOME TAXES - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current tax provision:
Foreign	$ 224	$ 201	$ 212
Federal	8,080	4,668	1,283
State	2,780	1,591	182
Total Current	11,084	6,460	1,677
Deferred tax provision:
Federal	1,089	1,290	93
State	344	573	98
Total deferred	1,433	1,863	191
Total tax provision	$ 12,517	$ 8,323	$ 1,868

INCOME TAXES - Reconciliation of Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ 46,301	$ 27,932	$ (5,376)
U.S. statutory tax rate	21.00%	21.00%	21.00%
Income tax expense (benefit) at statutory rate	$ 9,723	$ 5,866	$ (1,129)
State tax expense, net of federal	2,530	1,639	145
Foreign tax rates different from U.S. statutory rate	264	260	146
Non-deductible expenses	57	374	1,978
Write-off of transaction costs	0	0	321
Write-off of net operating losses	0	0	314
Change in tax rate	(9)	71	76
Other	(48)	113	17
Total tax provision	$ 12,517	$ 8,323	$ 1,868

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
U.S. federal and state net operating losses	$ 5,529,000	$ 6,385,000
Foreign net operating losses	165,000	73,000
Allowance for credit losses	483,000	275,000
Share-based compensation	1,468,000	897,000
Accrued compensation	487,000	279,000
Deferred revenue	725,000	653,000
Accrued TCPA claim	0	880,000
Total deferred tax assets	8,857,000	9,442,000
Deferred tax liabilities
Depreciation	(2,460,000)	(1,918,000)
Intangible amortization	(6,924,000)	(6,710,000)
Total deferred tax liabilities	(9,384,000)	(8,628,000)
Valuation allowance	(165,000)	(73,000)
Net deferred tax (liability) asset	(692,000)
Net deferred tax (liability) asset		741,000
Domestic Tax Authority
Deferred tax liabilities
Valuation allowance	0	0
State and Local Jurisdiction
Deferred tax liabilities
Valuation allowance	$ 0	$ 0

INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure, Line Items [Line Items]
Uncertain tax positions, accrued interest and penalties	$ 0	$ 0
Income tax examination, accrued interest and penalties	0	0
Valuation allowance	165,000	73,000
Domestic Tax Authority
Income Tax Disclosure, Line Items [Line Items]
Net operating loss carryforwards	22,700,000
Valuation allowance	0	0
State and Local Jurisdiction
Income Tax Disclosure, Line Items [Line Items]
Net operating loss carryforwards	19,800,000
Valuation allowance	0	0
Foreign Tax Authority
Income Tax Disclosure, Line Items [Line Items]
Operating Loss Carryforwards, Valuation Allowance	$ 165,000.0	$ 73,300

COMMITMENTS AND CONTINGENCIES - Narrative (Details)		12 Months Ended			19 Months Ended
COMMITMENTS AND CONTINGENCIES - Narrative (Details)	May 30, 2019 USD ($)	Dec. 31, 2020 USD ($) state territory country	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2020 USD ($) state territory country
Commitments and Contingencies Disclosure [Abstract]
Operating lease, rent expense		$ 2,200,000	$ 2,100,000	$ 1,800,000
Amount of settlement fund created	$ 3,250,000
Remaining balance of settlement liabilities		0			$ 0
Settlement amount and related legal fees incurred		$ 100,000	$ 3,700,000		$ 3,800,000
Number of states in which entity operates \| state		50			50
Number of territories in which entity operates \| territory		2			2
Number of countries in which entity operates \| country		3			3

COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating lease term	5 years
2021	$ 1,476
2022	1,182
2023	895
2024	776
2025	662
Thereafter	0
Total	$ 4,991

DEFINED CONTRIBUTION PLAN (Details) - USD ($)	12 Months Ended
DEFINED CONTRIBUTION PLAN (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Selling, General and Administrative Expenses
Defined Contribution Plan [Abstract]
Defined benefit plan, employer contribution	$ 127,400	$ 132,000.0	$ 115,200

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Deferred tax asset	$ 0	$ 741
Total assets	259,473	227,306
Stockholders’ equity:
Common stock $0.0001 par value; 230,000,000 shares authorized, 38,217,125 and 38,034,389 shares issued and outstanding as of December 31, 2020 and 2019, respectively	4	4
Additional paid-in capital	59,310	54,694
Retained earnings	34,960	1,176
Accumulated other comprehensive (loss) income	(13)	93
Total stockholders’ equity	94,261	55,967	$ 44,473	$ 35,902
Parent Company
ASSETS
Investment in subsidiary	94,211	55,948
Deferred tax asset	50	19
Total assets	94,261	55,967
Stockholders’ equity:
Common stock $0.0001 par value; 230,000,000 shares authorized, 38,217,125 and 38,034,389 shares issued and outstanding as of December 31, 2020 and 2019, respectively	4	4
Additional paid-in capital	59,310	54,694
Retained earnings	34,960	1,176
Accumulated other comprehensive (loss) income	(13)	93
Total stockholders’ equity	$ 94,261	$ 55,967

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Condensed Balance Sheets Additional Information (Details) - $ / shares	Dec. 31, 2020	Dec. 31, 2019	May 31, 2019	Jul. 26, 2018
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	230,000,000	230,000,000
Common shares, issued (in shares)	38,217,125	38,034,389
Common shares, outstanding (in shares)	38,217,125	38,034,389	38,000,000.0	36,200,000
Parent Company
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	230,000,000	230,000,000
Common shares, issued (in shares)	38,217,125	38,034,389
Common shares, outstanding (in shares)	38,217,125	38,034,389

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Condensed Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Expenses:
Income (loss) before income taxes	$ 46,301	$ 27,932	$ (5,376)
Income tax benefit	12,517	8,323	1,868
Net income (loss)	33,784	19,609	(7,244)
Other comprehensive (loss) income	(106)	95	0
Comprehensive income (loss)	33,678	19,704	(7,244)
Parent Company
Income:
Equity in earnings (loss) from consolidated subsidiary, net of tax	34,091	19,725	(7,180)
Expenses:
Shared-based compensation	404	192	88
Total expenses	404	192	88
Income (loss) before income taxes	33,687	19,533	(7,268)
Income tax benefit	(97)	(76)	(24)
Net income (loss)	33,784	19,609	(7,244)
Other comprehensive (loss) income	(106)	95	0
Comprehensive income (loss)	$ 33,678	$ 19,704	$ (7,244)

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	2 Months Ended	12 Months Ended
	May 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net cash provided by operating activities		$ (880)	$ 52,534	$ 19,838
Cash flows from financing activities:
Cash paid in warrant exchange	$ (10,000)	0	(10,031)	0
Proceeds from exercise of options		1,501	283	0
Net cash used in financing activities		(6,160)	(32,944)	(1,113)
Net (decrease) increase in cash		(11,210)	13,088	13,234
Cash, beginning of the year		86,117	73,029	59,795
Cash, end of the year		74,907	86,117	73,029
Parent Company
Cash flows from operating activities:
Net cash provided by operating activities		97	76	24
Cash flows from financing activities:
Intercompany transactions, net		(1,598)	9,672	(24)
Cash paid in warrant exchange		0	(10,031)	0
Proceeds from exercise of options		1,501	283	0
Net cash used in financing activities		(97)	(76)	(24)
Net (decrease) increase in cash		0	0	0
Cash, beginning of the year		0	0	0
Cash, end of the year		$ 0	$ 0	$ 0