Company: IIIV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001728688-25-000043
Chunk: 127

Company: i3 Verticals, Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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3 VERTICALS, Inc.NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(in thousands, except unit, share and per share amounts)

This change has no impact on the total operating expenses or earnings per share as illustrated below. The following tables present the effects of the change in presentation within the Condensed Consolidated Statements of Operations:For the Three Months Ended December 31, 2023As Previously Reported(1)AdjustmentAs AdjustedOperating expensesOther costs of services4,115 15,462 19,577 Selling, general and administrative42,637 (15,462)27,175 __________________________1.This column is presented after giving effect to discontinued operations of the Merchant Services Business as discussed in Note 2.Change in presentation of cash flows associated with "Settlement obligations"During the second quarter of 2024, the Company changed its presentation of cash flows associated with "Settlement obligations" from operating activities to financing actives within the Condensed Consolidated Statements of Cash Flows. Comparative amounts have been reclassified to conform to the current period presentation. This change has no impact on the Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Operations or Condensed Consolidated Statement of Changes in Equity.The following tables present the effects of the change in presentation within the Condensed Consolidated Statements of Cash Flows:For the Three Months Ended December 31, 2023As Previously ReportedAdjustmentAs AdjustedCash flows from operating activities:Settlement obligations(1,355)1,355 — Net cash provided by operating activities13,050 1,355 14,405 Cash flows from financing activities:Net payments for settlement obligations— (1,355)(1,355)Net cash used in financing activities(7,195)(1,355)(8,550)InventoriesInventories consist of point-of-sale equipment to be sold to customers and are stated at the lower of cost, determined on a weighted average or specific basis, or net realizable value. Inventories were $2,458 and $2,423 at December 31, 2024 and September 30, 2024, respectively, and are included within prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets. AcquisitionsBusiness acquisitions have been recorded using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805,