Company: IIIV
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001728688-25-000122
Chunk: 2

Company: i3 Verticals, Inc.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 8
Chunk 2
---
 audit matter because of the significant judgments applied by management. This required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate whether revenue was recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company’s revenue recognition for significant software and related services contracts entered into during fiscal year 2025 include the following, among others:

•We tested the operating effectiveness of controls related to the identification of distinct performance obligations, determination of whether such performance obligations are satisfied over time or at a point in time, and allocation of the standalone selling prices.

•We evaluated management’s significant accounting policies related to revenue recognition for reasonableness. 

•We selected a sample of contracts and performed the following procedures:  

◦Obtained and examined customer source documents and the contract for each selection, including master agreements and related amendments to evaluate if relevant contractual terms have been considered by management.

◦Sent confirmations to customers regarding key contract terms that impact revenue recognition.  

◦Evaluated management’s application of their accounting policy and tested revenue recognition for specific performance obligations by comparing management’s conclusions to the underlying contract, master agreement, and any related amendments, if applicable.  

◦Evaluated management’s conclusions related to whether performance obligations are satisfied at a point in time or over time. 

73

◦Tested the mathematical accuracy of management’s calculations of revenue recognized in the financial statements.

◦Evaluated the reasonableness of management’s estimate of standalone selling prices for products and services that are not sold separately by performing the following:

▪Assessing the appropriateness of the Company’s methodology and mathematical accuracy of the determined standalone selling prices.  

▪Testing the completeness and accuracy of the source data utilized in management's calculations.

/s/ Deloitte & Touche LLP

Nashville, Tennessee

November 21, 2025

We have served as the Company's auditor since 2020.

74

i3 Verticals, Inc.CONSOLIDATED BALANCE SHEETS(In thousands, except share and per share amounts)

September 30,20252024AssetsCurrent assetsCash and cash equivalents$66,672 $86,525 Accounts receivable, net58,467 50,779 Settlement assets411 632 Prepaid expenses and other current assets12,075