Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 197

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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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)

In September 2020, the Company adopted the 2020 Acquisition Equity Incentive Plan (the “2020 Inducement Plan”) under which the Company may grant up to 1,500,000 stock options and other equity-based awards to individuals that were not previously employees of the Company or its subsidiaries in connection with acquisitions, as a material inducement to the individual's entry into employment with the Company or its subsidiaries within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. In May 2021, the Company amended the 2020 Inducement Plan to increase the number of shares of the Company's Class A common stock available for issuance from 1,500,000 to 3,000,000 shares. As of June 30, 2025, equity awards with respect to 1,710,793 shares of the Company's Class A common stock were available for grant under the 2020 Inducement Plan.Share-based compensation expense includes the estimated effects of forfeitures, which will be adjusted over the requisite service period to the extent actual forfeitures differ or are expected to differ from such estimates.A summary of stock option activity for the nine months ended June 30, 2025 is as follows:Stock OptionsWeighted Average Exercise PriceOutstanding at September 30, 20249,120,944 $24.48 Granted120,000 24.54 Exercised(556,458)22.22 Forfeited(172,365)28.06 Outstanding at June 30, 20258,512,121 $24.55 Exercisable at June 30, 20257,175,718 $25.07 The weighted-average grant date fair value of stock options granted during the nine months ended June 30, 2025 was $13.12. As of June 30, 2025, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $11,154, which is expected to be recognized over a weighted-average period of 2.4 years. The Company's policy is to account for forfeitures of stock-based compensation awards as they occur. The total fair value of