Company: IIIV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001728688-25-000043
Chunk: 124

Company: i3 Verticals, Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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 and per share amounts)

incurred. These costs were primarily incurred during the second and third fiscal quarters of the year ended September 30, 2024 and include fees for third-party advisory, consulting, legal and professional services, as well as other items associated with the Transactions. The expenses are reflected within selling, general and administrative expenses within the Company's condensed consolidated statements of operations.The financial results of the Merchant Services Business are presented as income from discontinued operations, net of income taxes on the Company’s consolidated statements of operations. The following table presents financial results of Merchant Services Business for the three months ended December 31, 2024 and 2023:Three months ended December 31,20242023Revenue$— $36,936 Operating expensesOther costs of services— 16,309 Selling, general and administrative— 10,895 Depreciation and amortization— 2,685 Total operating expenses— 29,889 Income from operations— 7,047 Other expensesInterest expense, net— 20 Other expense253 — Total other expenses253 20 (Loss) income before income taxes from discontinued operations(253)7,027 (Benefit from) provision for income taxes(39)1,276 Net (loss) income from discontinued operations(214)5,751 Net (loss) income from discontinued operations attributed to non-controlling interest(76)1,768 Net (loss) income from discontinued operations attributable to i3 Verticals, Inc.$(138)$3,983 

10

i3 VERTICALS, Inc.NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(in thousands, except unit, share and per share amounts)

The Company has elected to not separately disclose discontinued operations on its condensed consolidated statement of cash flows. The Company had no significant cash flow activity pertaining to discontinued operations in the three months ended December 31, 2024. The following table presents cash flows from discontinued operations for major captions on the condensed consolidated financial statements:Three months ended December 31, 2023Depreciation and amortization$2,685 Equity-based compensation$1,150 Amortization of capitalized customer acquisition costs$211 Non-cash lease expense$261 Expenditures for property and equipment$(189)Expenditures for capitalized software$(160)Purchases of merchant portfolios and residual buyouts$(2,883)The following