Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 100

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 100
---
 segment and is managed on a consolidated basis, the measure of segment profit or loss that the CODM uses to allocate resources and assess performance is consolidated net income as reported in the condensed consolidated statements of operations. The CODM uses this measure to evaluate operating performance and for the purpose of making decisions about allocating resources. 

47

i3 VERTICALS, Inc.NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(in thousands, except unit, share and per share amounts)

17. NON-CONTROLLING INTEREST

i3 Verticals, Inc. is the sole managing member of i3 Verticals, LLC, and as a result, consolidates the financial results of i3 Verticals, LLC and reports a non-controlling interest representing the Common Units of i3 Verticals, LLC held by the Continuing Equity Owners. Changes in i3 Verticals, Inc.’s ownership interest in i3 Verticals, LLC while i3 Verticals, Inc. retains its controlling interest in i3 Verticals, LLC will be accounted for as equity transactions. As such, future redemptions or direct exchanges of Common Units of i3 Verticals, LLC by the Continuing Equity Owners will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in capital when i3 Verticals, LLC has positive or negative net assets, respectively.As of June 30, 2025 and 2024, respectively, i3 Verticals, Inc. owned 23,780,915 and 23,442,698 of i3 Verticals, LLC's Common Units, representing a 73.8% and 70.0% economic ownership interest in i3 Verticals, LLC.The following table summarizes the impact on equity due to changes in the Company's ownership interest in i3 Verticals, LLC:Nine Months Ended June 30,20252024Net income attributable to non-controlling interest$7,518 $1,155 Transfers (from) to non-controlling interests:Distributions to non-controlling interest holders(347)(839)Redemption of common units in i3 Verticals, LLC(17,070)(576)Recapitalization from contribution to i3 Verticals, LLC5,689 — Allocation of equity (from) to non-controlling interests(3,588)4,960 Net transfers (from) to non-controlling interests(15,316)