Company: IIIV
Filing Date: 2025-01-10
Form Type: DEF 14A
Source: 0001728688-25-000006
Chunk: 43

Company: i3 Verticals, Inc.
Filing Date: 2025-01-10
Form: DEF 14A
Chunk 43
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Us were granted as a replacement award for 25,000 PSUs that had been granted to Mr. Christians in fiscal year 2022, which PSUs were cancelled in connection with such new grant, in order to align the performance vesting conditions of these PSUs with Mr. Christians’ role at such time as Chief Operating Officer).

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All of the PSUs granted to Messrs. Whitson, Stanford, Maple, Christians and Smith are eligible to vest, and settle in shares of Class A Common Stock, in increments of 5,000 shares per fiscal year over a period of five fiscal years, beginning with the fiscal year ended September 30, 2023, based on the Company’s achievement of pro forma adjusted diluted earnings per share targets for each such fiscal year (with target performance increasing in each succeeding fiscal year) which were determined in connection with the Compensation Committee’s initial approval of such grants, provided that the recipient is employed by the Company on the applicable vesting date for each such fiscal year. In addition, under the terms of such grants, if the Company’s actual pro forma adjusted diluted earnings per share during an applicable fiscal year does not satisfy the applicable pro forma adjusted diluted earnings per share target for such fiscal year, the unearned PSUs remain eligible to vest in any subsequent fiscal year over such five-year performance period if the pro forma adjusted diluted earnings per share target for any such subsequent fiscal year is achieved by the Company during any such subsequent fiscal year.

Pro forma adjusted diluted earnings per share is a non-GAAP financial measure. See Appendix A for additional information regarding the calculation of pro forma adjusted net income, and a reconciliation of non-GAAP pro forma adjusted diluted earnings per share to GAAP diluted earnings per share.

In November 2024, the Compensation Committee approved an adjustment to the pro forma diluted earnings per share targets for the fiscal years subject to these PSUs to take into account the impact of the Company’s disposition of the Merchant Services Business on September 20, 2024 and the classification of the results of operations of the Merchant Services Business in discontinued operations in connection therewith consistent with the terms of the applicable award agreements (which provided that such targets would be subject to adjustment by the Compensation Committee in the event of any divestitures). As a result of such adjustment, the target pro forma adjusted diluted earnings per share for the fiscal year ended September 30, 2024, was adjusted from $1.79 to $1.08. The Company’s pro