Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 75

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 75
---
’s software offerings. Total purchase consideration was $1,270, including $1,100 in cash consideration, funded by proceeds from the Company's revolving credit facility, and $170 in the estimated fair value of contingent cash consideration, the final amount of such contingent cash payment of up to $750 is dependent upon achievement of specified financial performance targets, as defined in the purchase agreement).The additional consideration of up to $750, in the aggregate, is to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreement, through no later than May 2026. In connection with this acquisition, the Company allocated approximately $5 to property and equipment, approximately $40 to capitalized software, approximately $220 to customer relationships and the remainder, approximately $1,005, to goodwill, all of which is deductible for tax purposes. The acquired customer relationships intangible asset has an estimated amortization period of ten years. The acquired capitalized software has an amortization period of seven years.Acquisition-related costs for this acquisition amounted to approximately $8 and were expensed as incurred.

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

A summary of the Company's prepaid expenses and other current assets as of June 30, 2025 and September 30, 2024 is as follows:June 30,September 30,20252024Inventory$2,380 $2,423 Prepaid licenses6,714 5,013 Prepaid insurance517 129 Notes receivable — current portion195 195 Other current assets2,964 2,213 Prepaid expenses and other current assets(1)$12,770 $9,973 __________________________

1.In connection with the sale of the Healthcare RCM Business, $259 of the Company's prepaid expenses and other current assets was classified as "Current assets held for sale" as of September 30, 2024 in the accompanying condensed consolidated balance sheets and was not included in these amounts. 

6. GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:TotalBalance at September 30, 2024(1)$242,988 Goodwill attributable to preliminary purchase price adjustments during the nine months ended June 30, 20255,207 Balance at June 30, 2025$248,195 __________________________1.In connection with the sale of the Healthcare RCM Business, $37,688 of the Company's goodwill was