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Subsequent Events
3 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events
NOTE 13: SUBSEQUENT EVENTS
Founders One Acquisition
On January 2, 2026, we acquired a controlling interest in Founders One, LLC (“Founders”) by exchanging our existing $45.0 million preferred equity investment and $10.0 million of demand promissory notes into common equity in Founders, and contributed an additional $9.4 million in cash. As a result, we now hold approximately 87.7% of Founders’ outstanding common equity and expect to consolidate Founders in our financial statements beginning January 2, 2026.
Founders, through its subsidiary, Simple Management Group, Inc. (“SMG”), operates 105 pawn stores in the U.S. and 11 additional countries. The stores, which operate predominantly under the names “La Familia Pawn and Jewelry” and “CashWiz,” offer traditional pawn loans, buy/sell transactions, and, in Puerto Rico, auto pawn and auto title loans. Founders controls SMG with an 85.1% ownership interest.
The preliminary purchase price allocation for this transaction has not yet been completed and is based on preliminary estimates that are subject to change as additional information becomes available. The total consideration transferred is estimated to be approximately $64.4 million, subject to final valuation. Final amounts, including tangible assets, identifiable intangible assets, and goodwill, will be disclosed in accordance with ASC 805 in future filings.
The acquisition was funded through a combination of the conversion of existing investments and cash on hand. In connection with the acquisition, we entered into a three-year, senior secured debt facility with SMG to provide $156.4 million in funding at 13% per annum, replacing SMG’s third-party debt facility and debt owed to its shareholders and us. This intercompany debt will be eliminated upon consolidation.
El Bufalo Pawn Acquisition
On January 12, 2026, we closed the acquisition of 12 pawn stores in Texas operating under the name “El Bufalo Pawn” for approximately $27.5 million. The acquisition was funded by cash on hand. The preliminary purchase price allocation for this transaction has not yet been completed and is based on preliminary estimates that are subject to change as additional information becomes available. Final amounts, including tangible assets, identifiable intangible assets, and goodwill, will be disclosed in accordance with ASC 805 in future filings.