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Related Party Transactions
9 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions
RELATED PARTY TRANSACTIONS
Related parties held $6,158 of our Company’s Junior Subordinated Notes as of September 30, 2017. As described Note 5, in connection with the Company's IPO and as part of the Reorganization Transactions, $924 of the Junior Subordinated Notes held by related parties was converted to newly issued shares of the Company's Class A common stock. Also in June 2018, the remaining $5,234 of the Junior Subordinated Notes held by related parties were repaid with proceeds from the Company's IPO. Interest expense to related parties for the Company’s Junior Subordinated Notes amounted to $145 and $457 during the three and nine months ended June 30, 2018, respectively, $168 and $471 during the three and nine months ended June 30, 2017, respectively.
All lenders party to the Companys Mezzanine Notes are considered related parties, through their ownership interest in the Company and affiliated director relationships. Outstanding Mezzanine Notes payable to related parties amounted to $10,500 as of June 30, 2018 and September 30, 2017. In June 2018, the Mezzanine Notes were repaid in full with proceeds from the Company's IPO. Interest expense to related parties for the Company’s Mezzanine Notes amounted to $315 and $952 during the three and nine months ended June 30, 2018, respectively, $319 and $956 during the three and nine months ended June 30, 2017, respectively.
In April, 2016, we entered into a purchase agreement to purchase certain assets of Axia, LLC. On April 29, 2016, the Company entered into a Processing Services Agreement (the “Axia Tech Agreement”) with Axia Technologies, LLC (“Axia Tech”), an entity controlled by the previous owner of Axia, LLC. Under the Axia Tech Agreement, we agreed to provide processing services for certain merchants as designated by Axia Tech from time to time. In accordance with ASC 605-45, revenue from the processing services is recognized net of interchange, residual expense and other fees. We earned net revenues related to the Axia Tech Agreement of $13 and $37 during the three and nine months ended June 30, 2018, respectively, and $8 and $17 during the three and nine months ended June 30, 2017, respectively. i3 Verticals, LLC, our CEO and our CFO own 3%, 11% and 1%, respectively, of the outstanding equity of Axia Tech.