XML 36 R26.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2021

The tables below present a disaggregation of the Company's revenue from contracts with clients by product by segment. Refer to Note 14 for discussion of the Company's segments. The Company's products are defined as follows:

•Software and related services — Includes sales of SaaS, transaction-based fees, ongoing software maintenance and support, software licenses and other professional services related to our software offerings.

•Payments — Includes discount fees, gateway fees and other related fixed transaction or service fees.

•Other — Includes sales of equipment, non-software related professional services and other revenues.


	For the Three Months Ended December 31, 2021
	Merchant Services		Proprietary Software and Payments		Other		Total
Software and related services revenue	$	2,962	$	33,384	$	(8)	$	36,338
Payments revenue	24,304		9,166		(4)		33,466
Other revenue	1,911		2,224		—		4,135
Total revenue	$	29,177	$	44,774	$	(12)	$	73,939


	For the Three Months Ended December 31, 2020
	Merchant Services		Proprietary Software and Payments		Other		Total
Software and related services revenue	$	2,929	$	13,856	$	—	$	16,785
Payments revenue	20,541		5,497		(426)		25,612
Other revenue	1,591		640		(7)		2,224
Total revenue	$	25,061	$	19,993	$	(433)	$	44,621

The tables below present a disaggregation of the Company's revenue from contracts with clients by timing of transfer of goods or services by segment. The Company's revenue included in each category are defined as follows:

•Revenue transferred over time — Includes discount fees, gateway fees, sales of SaaS and ongoing support contract revenue.

•Revenue transferred at a point in time — Includes fixed service fees, software licenses sold as functional intellectual property, professional services and other equipment.


	For the Three Months Ended December 31, 2021
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue earned over time	$	22,734	$	31,288	$	(8)	$	54,014
Revenue earned at a point in time	6,443		13,486		(4)		19,925
Total revenue	$	29,177	$	44,774	$	(12)	$	73,939


	For the Three Months Ended December 31, 2020
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue earned over time	$	18,102	$	14,937	$	(388)	$	32,651
Revenue earned at a point in time	6,959		5,056		(45)		11,970
Total revenue	$	25,061	$	19,993	$	(433)	$	44,621

Schedule of Contract with Customer, Asset and Liability

The following tables present the changes in deferred revenue as of and for the three months ended December 31, 2021 and 2020, respectively:


Balance at September 30, 2021	$	30,024
Deferral of revenue	21,032
Recognition of unearned revenue	(15,735)
Balance at December 31, 2021	$	35,321


Balance at September 30, 2020	$	11,054
Deferral of revenue	22,142
Recognition of unearned revenue	(7,541)
Balance at December 31, 2020	$	25,655

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following tables present the material impacts of adopting ASU 2021-08 on the Company's condensed consolidated balance sheets as of December 31, 2020:


	As of December 31, 2020
	Excluding impacts of adoption of ASU 2021-08		Adjustment		Presentation with adoption of ASU 2021-08
Assets
Goodwill	$	219,912	$	2,993	$	222,905
Deferred tax asset	$	44,966	$	(303)	$	44,663
Liabilities and equity
Liabilities
Current liabilities
Deferred revenue	$	23,868	$	1,686	$	25,554
Stockholders' equity
Additional paid-in-capital	$	169,097	$	(31)	$	169,066
Accumulated deficit	$	(4,595)	$	574	$	(4,021)
Non-controlling interest	$	76,928	$	461	$	77,389

The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of operations for the three months ended December 31, 2020:


	Three months ended December 31, 2020
	Excluding impacts of adoption of ASU 2021-08		Adjustment		Presentation with adoption of ASU 2021-08
Revenue	$	43,313	$	1,308	$	44,621
Benefit from income taxes	$	(219)	$	209	$	(10)
Net loss	$	(4,121)	$	1,099	$	(3,022)
Net loss attributable to non-controlling interest	$	(1,549)	$	525	$	(1,024)
Net loss attributable to i3 Verticals, Inc.	$	(2,572)	$	574	$	(1,998)

Net loss per share attributable to Class A common stockholders:
Basic	$	(0.13)	$	0.03	$	(0.10)
Diluted	$	(0.13)	$	0.03	$	(0.10)

The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statement of changes in equity for the three months ended December 31, 2020:


	Three months ended December 31, 2020
	Excluding impacts of adoption of ASU 2021-08		Adjustment		Presentation with adoption of ASU 2021-08
Net loss	$	(4,121)	$	1,099	$	(3,022)
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	$	1,257	$	(95)	$	1,162
Balance at December 31, 2020	$	241,433	$	1,004	$	242,437

The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of cash flows for the three months ended December 31, 2020:


	Three months ended December 31, 2020
	Excluding impacts of adoption of ASU 2021-08		Adjustment		Presentation with adoption of ASU 2021-08
Cash flows from operating activities:
Net loss	$	(4,121)	$	1,099	$	(3,022)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Benefit from deferred income taxes	$	(219)	$	209	$	(10)
Changes in operating liabilities:
Deferred revenue	$	7,870	$	(1,307)	$	6,563
Other long-term liabilities	$	6,038	$	(1)	$	6,037