Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 56

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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80 4,620 355 Net income from discontinued operations19,425 561 18,729 2,001 Net income from discontinued operations attributed to non-controlling interest6,130 192 6,041 710 Net income from discontinued operations attributable to i3 Verticals, Inc.$13,295 $369 $12,688 $1,291 

14

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

The Company has elected to not separately disclose discontinued operations on its condensed consolidated statement of cash flows. The following table presents cash flows from discontinued operations for major captions on the condensed consolidated financial statements:Nine months ended June 30,20252024Depreciation and amortization$1,940 $2,422 Equity-based compensation$3,112 $2,134 Gain on sale of Healthcare RCM Business$(25,960)$— Non-cash lease expense$702 $917 Increase (decrease) in non-cash contingent consideration expense from original estimate$1,302 $(716)Contingent consideration paid in excess of original estimates$(700)$— Expenditures for property and equipment$(156)$(176)Expenditures for capitalized software$(263)$(321)Proceeds from sale of Healthcare RCM Business, net of cash sold$96,102 $— Cash paid for contingent consideration$(800)$— The following table presents significant non-cash investing and financing activities for major captions on the consolidated financial statements:Nine months ended June 30, 2025Right-of-use assets obtained in exchange for operating lease obligations$266 Merchant Services Business DivestitureDuring the year ended September 30, 2024, the Company made the strategic decision to discontinue a significant segment of its operations constituting its Merchant Services Business (as defined below). In this regard, on September 20, 2024, i3 Verticals, LLC, and i3 Holdings Sub, Inc., a wholly-owned subsidiary of i3 Verticals, LLC (“Corporation Seller,” and collectively with i3 Verticals, LLC, the “Merchant Services Sellers”) completed the transactions (such closing, the “Closing”) contemplated by that certain Securities Purchase Agreement dated as of June 26, 2024 (the “Merchant Services Purchase Agreement”), by