Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 173

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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, 2024$39,156 Deferral of revenue16,881 Recognition of unearned revenue(13,645)Balance at December 31, 202442,392 Deferral of revenue9,841 Recognition of unearned revenue(14,973)Balance at March 31, 202537,260 Deferral of revenue8,844 Recognition of unearned revenue(15,527)Balance at June 30, 2025$30,577 Balance at September 30, 2023$32,253 Deferral of revenue18,612 Recognition of unearned revenue(14,127)Balance at December 31, 202336,738 Deferral of revenue10,362 Recognition of unearned revenue(12,291)Balance at March 31, 202434,809 Deferral of revenue8,975 Recognition of unearned revenue(14,154)Balance at June 30, 2024$29,630 Costs to Obtain and Fulfill a ContractThe Company capitalizes incremental costs to obtain new contracts and contract renewals and amortizes these costs on a straight-line basis as an expense over the benefit period, which is generally the expected customer life, unless a commensurate payment is not expected at renewal. As of June 30, 2025 and September 30, 2024, the Company had $1,140 and $857, respectively, of capitalized contract costs, which relates to commissions paid to employees as well as other incentives given to customers to obtain new sales, included within “Other assets" on the condensed consolidated balance sheets. The Company recorded expense from continuing operations related to these costs of $30 and $241 for the three and nine months ended June 30, 2025 and $24 and $64 for the three and nine months ended June 30, 2024. 

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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)

The Company expenses sales commissions as incurred for the Company's sales commission plans that are paid on recurring monthly revenues, portfolios of existing customers, or have a substantive stay requirement prior to payment.Other Cost of Services Other costs of services include costs directly related to the Company's software and related services. Additionally, other costs of services include costs directly attributable to payment processing services such as processing and bank sponsorship.