Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 177

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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UNAUDITED)(in thousands, except unit, share and per share amounts)

The additional cash consideration of up to $5,000, in the aggregate, is to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreement, for performance periods extending through September 2027. The Company determines the acquisition date fair values of the liabilities for the contingent consideration using a Monte Carlo simulation as well as a discounted cash flow analysis. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. See additional disclosures in Note 12.The goodwill associated with the business acquisition is deductible for tax purposes. The acquired customer relationships intangible asset has an estimated amortization period of fifteen years. The acquired trade name has an amortization period of two years. The acquired capitalized software has an amortization period of seven years. Acquisition-related costs for this acquisition amounted to approximately $70 and were included in selling, general and administrative on our consolidated statement of operations and were expensed as incurred.Summary of the Utility Billing Software CompanyThe preliminary fair values assigned to certain assets and liabilities assumed, as of the acquisition date, were as follows: Accounts receivable$912 Property and equipment200 Capitalized software380 Customer relationships4,610 Trade name100 Goodwill4,996 Total assets acquired11,198 Deferred revenue, current938 Net assets acquired$10,260 Other Business Combinations nine months ended June 30, 2025During the nine months ended June 30, 2025, the Company purchased certain assets of a business to expand the Company’s customer footprint. Total purchase consideration was $2,000 in cash funded from cash on hand. In connection with this purchase, the Company allocated approximately $83 to property and equipment, approximately $1,700 to customer relationships, $5 to non-compete agreements and the remainder, approximately $211, to goodwill, all of which is deductible for tax purposes. The acquired customer relationships intangible asset has an estimated amortization period of fifteen years. 

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

Pro Forma Results of Operations for 2025 Business CombinationsThe following unaudited supplemental pro forma results of operations have been prepared as though each of the acquired businesses in the nine