NON-CONTROLLING INTEREST

9 Months Ended

Jun. 30, 2022

i3 Verticals, Inc. is the sole managing member of i3 Verticals, LLC, and as a result, consolidates the financial results of i3 Verticals, LLC and reports a non-controlling interest representing the Common Units of i3 Verticals, LLC held by the Continuing Equity Owners. Changes in i3 Verticals, Inc.’s ownership interest in i3 Verticals, LLC while i3 Verticals, Inc. retains its controlling interest in i3 Verticals, LLC will be accounted for as equity transactions. As such, future redemptions or direct exchanges of Common Units of i3 Verticals, LLC by the Continuing Equity Owners will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in capital when i3 Verticals, LLC has positive or negative net assets, respectively.

As of June 30, 2022, i3 Verticals, Inc. owned 22,252,640 of i3 Verticals, LLC's Common Units, representing a 68.7% economic ownership interest in i3 Verticals, LLC.

The following table summarizes the impact on equity due to changes in the Company's ownership interest in i3 Verticals, LLC:


	Nine months ended June 30,
	2022		2021(1)
Net loss attributable to non-controlling interest	$	(5,178)	$	(1,918)
Transfers to (from) non-controlling interests:
Redemption of common units in i3 Verticals, LLC	(918)		(11,714)
Allocation of equity to non-controlling interests	5,594		12,374
Net transfers to non-controlling interests	4,676		660
Change from net loss attributable to non-controlling interests and transfers from non-controlling interests	$	(502)	$	(1,258)

__________________________

1.Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.