Company: IIIV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001728688-25-000043
Chunk: 49

Company: i3 Verticals, Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 the Three Months Ended December 31, 2023Public SectorHealthcareOtherTotalRevenue earned over time$41,405 $11,440 $(15)$52,830 Revenue earned at a point in time2,093 140 (9)2,224 Total revenue$43,498 $11,580 $(24)$55,054 Contract AssetsThe Company bills for certain software and related services sales and fixed fee professional services upon pre-determined milestones in the contracts. Therefore, the Company may have contract assets other than trade accounts receivable for performance obligations that are partially completed, which would typically represent consulting services provided before a milestone is completed in a contract. Additionally, contract assets also include software licenses sold as a right to use license but paid for under a subscription model. Under this structure, the license revenue is recognized upfront while a portion of the revenue is unbilled. Unbilled amounts associated with these professional services and software licenses sold under the subscription model are presented as accounts receivable as the Company has an unconditional right to payment for services performed.As of December 31, 2024 and September 30, 2024, the Company’s contract assets from contracts with customers was $8,723 and $8,680, respectively.Contract LiabilitiesDeferred revenue represents amounts billed to customers by the Company for services contracts. Payment is typically collected at the start of the contract term. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the condensed consolidated balance sheets. The terms for most of the Company's contracts with a deferred revenue component are one year. Substantially all of the Company's deferred revenue is anticipated to be recognized within the next year.The following tables present the changes in deferred revenue as of and for the three months ended December 31, 2024 and 2023, respectively:Balance at September 30, 2024$39,824 Deferral of revenue17,264 Recognition of unearned revenue(14,150)Balance at December 31, 2024$42,938 Balance at September 30, 2023$32,985 Deferral of revenue19,156 Recognition of unearned revenue(14,681)Balance at December 31, 2023$37,460 Costs to